Goodwill Hospital & Research Centre Ltd. कंपली की लेखा नीति

Mar 31, 2011

A. Basis of preparation

The financial statements have been prepared to comply in all material respects in accordance with the Notified Accounting Standards by Companies (Accounting standards) Rules, 2006 and the relevant provisions of the Companies Act. 1956. The financial statements have been prepared under the historical cost convention on an accrual basis (except in case of assets for which impairment is made and revaluation is carried out, if any). The accounting policies have been consistently applied by the company and are consistent with those used in previous years.

b. Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles required management to make estimates and assumptions the effect the reported amounts of assets and liabilities and disclosures of contingent liabilities at the date of the financial statements and the results of operations during the reporting period. Although these estimates are based upon management's best knowledge of current events and actions, actual results could differ from these estimates.

c. Fixed Assets

Fixed Assets are stated at cost less accumulated depreciation and impairment loss, if any. Cost comprises of the purchase price and any directly attributable cost of bringing the assets to its working condition for its intended use. Borrowing costs relating to acquisition of fixed assets which take substantial period of time to get ready for its intended use are also included to the extent they relate to the period till such assets are ready to be put to use.

d. Depredation and Amortization

i) Leasehold hold land is amortized over the initial period of lease or useful life of asset whichever is shorter

ii) Depreciation on all other fixed assets is provided using Written Down value method as per rates specified in Schedule XIV to the Companies Act, 1956 on prorate basis.

iii) Individual Assets not exceeding Rs. 5000/- are depreciated fully in the year of purchase.

e. Investments

The investments are classified as Long-Term Investments and Current Investments. Investments, which are intended to be held for one year or more, are classified as Long Term Investments and investments, which are intended to be held for less than one year, are classified as Current Investments. Long-term investments are accounted at cost and any decline in the carrying value other than temporary in nature is provided for. Current Investments are valued at cost or market price whichever is lower. The company has invested in the shares of other companies, being in the nature of Long Term Investments and has accordingly been valued at Cost price. The reduction in prices, if of permanent in nature is appropriately adjusted in terms of the Accounting Standard. '

f. Impairment

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the assets net selling price and value in use .In assessing value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital.

g. Inventories

Medical Consumables, Pharmacy Items, Stores and Spares are valued at lower of cost and net realizable value. Cost is determined on First in First out (FIFO) basis.

h. Revenue recognition

Operating income

Operating Income is recognized as and when the services are rendered /pharmacy items are sold.

i. Miscellaneous Expenditure

Deferred revenue expenditure on account of Sign Board Expenses and staff recruitment expenses have been written off over a period of three years and two years respectively from the year of start of business.

Preliminary Expenditure and Share issue expenses have been written off an equal annual installments over a period of five years after completion of issue formalities.

j. Foreign Currency Transactions

a.) initial Recognition

Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction.

b.) Exchange Differences

Exchange differences arising on the long term Foreign currency items are reported as per option given in Notification given by Ministry of Company affairs dated 31.03.09 wherein exchange difference in so far as they relate to the acquisition of a depreciable asset have been adjusted with the cost of asset and would be depreciated over the balance useful life of asset.

k. Employee benefits (Disclosure under AS-15(Revised))

a.) Contribution to Provident Fund

The Company makes contributions to statutory provident fund in accordance with Employees Provident Fund and -- Miscellaneous Provisions Act, 1952.Provident fund is a defined contribution scheme and the contributions are charged to the Profit and Loss account of the year when the contributions to the respective funds are due. There are no other obligations other than the contribution payable to the fund.

b.) Gratuity

Gratuity liability is defined obligation and is provided for on the basis of an actuarial valuation made at the end of the year using the projected unit credit method.

l. Income Taxes

Current tax is the amount of tax payable on the estimated taxable income for the current year as per the provisions of the Income Tax Act, 1961. Deferred Tax Assets are recognised on the basis of restorable/virtual certainty that sufficient future taxable income will be available against which the same can be realised.

Minimum Alternate Tax (MAT) credit is recognised as an asset only when and to the extent there is convincing evidence that Company will pay normal income tax during the specified period. In the year in which the MAT credit becomes eligible to be recognised as an asset in accordance with the recommendations contained in Guidance Note issued by the Institute of Chartered Accountants of India, the said asset is created by the way of a credit to the profit and loss account and shown as MAT Credit Entitlement.

m. Earnings per Share

Basic earnings per share is calculated by dividing the net consolidated profit or loss for the year attributable to equity shareholders (after deducting attributable taxes, if any) by weighted average number of equity shares outstanding during the year.

n. Provisions

A provision is recognized when an enterprise has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to their present value and are determined based on best estimate required to settle the obligation at the balance sheet date These are reviewed at each balance sheet date and are adjusted to reflect the current best estimates.