Cover 1 - Apollo Hospitals Dhaka

Annual Report’ 11
STS HOLDINGS LIMITED
Notes to the Financial Statements
As at and for the year ended 31 December 2011
1. Reporting entity :
1.1 Company profile :
STS Holdings Limited is a public limited company formed under Companies Act 1994 and incorporated in
Bangladesh in the year 1997 bearing Registration No. C-33709(455)/97 dated 28.08.1997. The registered office as well
as the corporate office of the company is situated at House 8A, Road 143, Gulshan, Dhaka-1212.
1.2 Nature of business :
The company has been formed with the object of engaging in healthcare services of international standard. As a
pioneering venture, it has established super specialty tertiary care hospital named Apollo Hospitals Dhaka (AHD)
with the franchise and assistance of Apollo Hospitals Enterprises Limited, India. By virtue of separate Project
Management Agreement, Operations Management Agreement and Franchise Agreement AHD uses the expertise,
skills, know-how and technical services of Apollo Hospitals Enterprises Limited, India for commissioning, managing
and operating this international standard super specialty hospital. Apollo Hospitals Dhaka is located at Plot No.81,
Block No. E, Bashundhara R/A, Dhaka-1229, Bangladesh.
2. Basis of preparation
2.1 Statement of compliance
These financial statements have been prepared on going concern basis in accordance with the applicable Bangladesh
Accounting Standards (BAS) and Bangladesh Financial Reporting Standard (BFRS), the Companies Act 1994, and
other applicable laws and regulations.
2.2 Basis of measurement
These financial statements have been prepared on going concern basis under historical cost convention with the
exception of the revaluation of certain property, plant and equipment mentioned under the note no-4.
2.3 Functional and presentational currency & level of precision :
These financial statements are presented in Bangladesh Taka (Taka/Tk.) except where indicated otherwise, which is
both functional currency and presentation currency of the Company. The figures of financial statements have been
rounded off to the nearest taka.
2.4 Use of estimates and judgements
The preparation of financial statements requires management to make judgments, estimates and assumptions that affect
the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. The estimates
and the associated assumptions are based on historical experience and various other factors that are believed to be
reasonable under the circumstances the result of which form the basis of making judgments about the carrying values of
assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognized in the period in which the estimates is revised if the revision affects only that period ,or in the period of
revision and future periods if the revision affects both current and future periods.
In particular, information about significant areas of estimation and judgments in applying accounting policies that
have most significant effect on the amount recognised in the financial statements are described in the following notes:
Note 6: Inventory valution
Note 18: Expenses creditors and accruals
2.5 Reporting period :
The financial statements of the company have been prepared for the period from 01 January 2011 to 31 December 2011.