Cover 1 - Apollo Hospitals Dhaka

Annual Report’ 11
Medical and surgical equipment : 10%
Office equipment : 15%
Housekeeping equipment : 20%
Air conditioning plant & air conditioners : 10%
Electrical installations, generators, boiler, elevator etc. : 10%
Vehicles : 20%
3.5 Impairment :
The carrying value of the Company's assets other than inventories, are reviewed at each balance sheet date to
determine whether there is any indication of impairment. If any such indication exists, the asset's recoverable amount
is estimated. An impairment loss is recognized whenever the carrying amount of the asset or its cash-generating unit
exceeds its recoverable amount. Impairment losses, if any, are recognized in the income statement.
3.6 Leases :
Leases in terms of which the company assumes substantially all the risks and rewards of ownership are classified as
finance leases. Upon initial recognition the leased assets is measured at an amount equal to the lower of its fair value
and the present value of the minimum lease payments. Subsequent to initial recognition, the assets is accounted for
in accordance with accounting policy applicable to the assets.
3.7 Inventories :
Inventories comprise consumables, medicine, materials, linens, printing & stationery etc.
Inventories are stated at the lower of cost and net realizable value in accordance with BAS 2 "Inventories" after
making due allowances for any obsolete or slow moving items.
The cost is determined using the first-in, first-out (FIFO) method consistently. The cost of inventories comprises
expenditure incurred in the normal course of business in bringing such inventories to their present location and
condition. Net realizable value is based on estimated selling price less VAT in the ordinary course of business less any
further costs expected to be incurred to make the sale (applicable variable selling expenses).
3.8 Cash and cash equivalents :
This comprises cash in hand, deposits held at call with banks, other short-term highly liquid investments with original
maturities of three months or less, and bank overdrafts. Bank overdrafts are shown in current liabilities on the balance
sheet.
3.9 Borrowing costs :
Interest and other costs incurred by the company in connection with the borrowing of funds are recognized as
expense in the period in which they are incurred, unless such borrowing cost relates to acquisition / construction of
assets in progress that are capitalized as per alternative treatment of BAS 23 "Borrowing Costs".
3.10 Taxation :
In view of cumulative operating loss, provision for taxation is made in accordance with the section 16CCC of Income
Tax Ordinance 1984.
3.11 Revenue recognition :
Revenue in the hospital is recognized as follows:
(i) In case of IPD services, as and when final bill for different services are raised.
(ii) In case of OPD services, as and when invoices are issued.
(iii) In case of Pharmacy, when medicines are delivered from the pharmacy counter.
3.12 Donation fund :
Donation Fund has been created out of the donation received from Shing On International Ltd. in 2005 to finance
acquisition of medical equipment for Apollo Hospitals Dhaka. As per decisions of the Board of Directors,