²* SIGNIFICANT ACCOUNTING POUriFS

a. Basis of Preparation of Financial Statement -

The financial statements are prepared and presented under the historical cost conventioftlS^' and evaluated on a going-concern basis using the accrual system of accounting iiT'^ accordance with the accounting principles generally accepted in India (Indian GAAP) add ^.o-q he i equipments of the notified sections, schedules and rules of the companies Act •

including the Accounting Standards as prescribed by the Companies fAccouritirk' >

vrtth^CRute7^Rf^leS' ^{2006 a}?r^secr ^{211(3c) 0f the Com}P^anies Act. 2013 ("the Act")

with Rule 7 of companies (Accounts) Rules, 2014). ^J ™ •

b. Use of estimates -

The piepaiation of financial statements requires the management- nfi-ho r

estimates and assumptions that affect tlmneportc’d Znce“ ,

disclosures relating to the contingent liabilities as at the date of the financial statements and

changes³in theTe eXZsl^

are recognised in the period in which the results a^ known /Patriate

c. Property, Plant and Equipment -

i) Property, Plant and Equipment

a n d* ^ ^ ^ ^ *³!! ^u ni u 1 a tTd i m p^i rment^lI ossj f any^^p er AS 1 ^" P r o p e^ty^ll|fi a n t

attributable expenses incurred to bring the asset tn th„ in_Mr 1¹ , ^ty

necessirv fnr u _f ^{tne dSSet t0} the location and condition

==”?=Sif ~ STSfi

Is tsenatrZ* ^a" ^it6m °^f P^r0P^e«y. Plant and equipment are recognized

benefits associa^thT"^^ tf d “

hj Capital Work-in-Progress

“^uction °:^{Buiiding under} of Building will he complete^and the a^etsTady m use fort ^Whe" ^ConStruction it is transferred to appropriate category of tangible asset. ^{PUrp0Se lllen}

d. Depreciation / Amortization -

where appropriate areMSy ⁶ eStlmated USefullife of assets **-vieweZd J

^S'*-, -

e. Impairment-

““Ý»»’«« •

those assets were impaired. If any such indication • . ^{tlere 1S any indicat}ion that asset is estimated in order to ^{the rec}°verable amount of the

the higher of an asset's net selling price antTvalu^ilTna^ment. A recoverable amount is estimated future cash flows expected from the rnnf ” ^assessin§ ^value in use, the disposal are discounted to their p^emT °^{f the asset a}"^{d fr}°" Its cui rent market assessments of time value of mn!w a ^Xi^{dlscount rate that} reflects the Reversal of impairment ioss is recognized as ilc^ ££££

f. Investments -

All other investments are classified as long-term investments⁵¹^ ^{35 CUrrent investments}-

^“as" IT⁵’'"^{17 3re C}'^aSSified “ ^,0"S-^te™ ‘vestment and recorded at historical g- Revenue Recognition -

^W'^{,en il iS ear,led}' ^and no significant

"['^{r h r}" T' I - f I,..,. f i t r 'r^.' it .^f,' i oU.l.! ,i .i?,¹ tt.i i I^t0 f’^atie,lts is recognized _{as r}e_Venue

SSL r—*

SSSSffiSSr * ^r'^C0S"”^d “»Proportion

Qtlier Income: Other Income is recognized based „„ .i Q )lj

accrual basis. ^{L based on th}e contractual obligations^nXan J$J

ForAsarfi HospKal Limited For Asarfi Hospital Limited

l(\v\ / -m^44r/ZC. ^

h. Borrowing Cost -

Borrowing costs that are directly attributable to the acquisition, construction or production of fixed assets are considered as part of the cost of that asset till the date of the acquisition.

Other borrowing costs are recognized as an expense in the period in which they are incurred.

i. Employee Benefits -

The Contribution to the provident fund & Employee State Insurance is charged to the statement of profit & loss A/c for the year when an employee renders the related services

j. Provision for Gratuity -

The Provision for Gratuity has been taken on the basis of the valuation report obtained from the report of Actuarial Valuer.

k. Earnings Per Share -

Basic earnings per share is computed by dividing the profit/ (loss) after tax (including the post tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the profit/(loss) after tax (including the post tax effect of extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or income relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares. Potential equity shares are deemed to be dilutive only if their conversion to equity shares decreases the net profit per share from continuing ordinary operations.

Potential dilutive equity shares are deemed to be converted as the beginning of the period, unless they have been issued at a later date. The dilutive potential equity shares are adjusted for the proceeds receivable had the shares been actually issued at fair value (i.e. average market value of the outstanding shares). Dilutive potentially equity shares are determined independently for each period presented. The number of equity shares and potentially dilutive equity shares are adjusted for share splits/reverse share splits and bonus shares, as appropriate.

l. Taxation -

Current income tax expense comprises taxes on income from operations in India. Income tax payable in India is determined in accordance with the provisions of the Income Tax Act, 1961.

Deferred tax expense or benefit is recognized on timing differences being the difference between taxable income and accounting income that originate in one period and is likely

to reverse in one or more subsequent periods. Deferred tax assets and liabilities are^,_____

measured using the tax rates and tax laws that have been enacted or substantiy enacted by the balance sheet date. !‘S' /

Advance taxes and provisions for current income taxes are presented in the balance^he^ *' J\ after off-setting advance tax paid and income tax provision arising in the same jurisdiction for relevant tax paying units and where the Company is able to and interfd^/ered to settle the asset and liability on a net basis.

The Company offsets deferred tax assets and deferred tax liabilities if it has a legally enforceable right, and these relate to taxes on income levied by the same governing taxation laws.

m. Foreign Currency -

Income and expenses in foreign currencies are converted at exchange rates prevailing on the date of the transaction. Foreign currency monetary assets and liabilities other than net investments in non-integral foreign operations are translated at the exchange rate prevailing on the balance sheet date and exchange gains and losses are recognized in the statement of profit and loss. Exchange differences arising on a monetary item that, in substance, forms part of an enterprise's net investments in a non-integral foreign operation are accumulated in a foreign currency translation reserve.

n. Forward Exchange Contracts:

The risks associated with changes in exchange rates mitigated by entering into forward exchange contracts. Any premium or discount arising at the inception of a forward exchange contract is accounted for separately from the exchange differences on the forward exchange contract. The premium or discount that arises on entering into the contract is measured by the dilference between the exchange rate at the date of the inception of the forward exchange contract and the forward rate specified in the contract. Exchange difference on a forward exchange contract is the difference between fa] the oreign cui i ency amount of the contract translated at the exchange rate at the reporting ^da*^e;°^r ^ ^{settlement date where th}e transaction is settled during the reporting period, and (bj the same foreign currency amount translated at the latter of the date of inception of the forward exchange contract and the last reporting date.

o. Inventories -

"Raw materials includes In Patient Department (IPD) Stock are carried at Cost value that is used for the consumption for patient in hospital . Stock in trade includes Outpatient Department [OPD] Stock are carried at lower of cost and net realizable value. Cost comprises purchase price and all incidental expenses incurred in bringing the inventory to its present location and condition. The Company follows the FIFO method for determining the Cost of Inventories."