Cover 1 - Apollo Hospitals Dhaka

Financial Highlights & Auditors’ Report
donation fund is subject to set off against the depreciation charge on assets acquired out of the said fund over the
expected useful life of the related assets following the principles of BAS 20 "Accounting for Government Grants and
Disclosure of Government Assistance".
3.13 Provisions, contingent liabilities and contingent assets :
3.13.1 Contingent liabilities and contingent assets :
Contingent liabilities are not provided for unless a reliable estimate of probable amount as at the balance sheet date
can be made. Contingent assets are not recognized.
3.13.2 Provision :
A provision is recognized in the balance sheet when the company has a legal or constructive obligation as a result of
past event, future outflow will require to meet the past obligation and a reliable estimate can be made of the amount
of the obligation.
3.14 Post-employment benefit schemes :
Schemes of post-employment benefits of eligible employees, payable after completion of employement, include
contributory provident fund, unfunded gratuity and group insurance scheme as envisaged in BAS 19. The
management of recognized providend fund, within the framework of the Rules approved by the National Board of
Revenue, is vested in a Board of Trustees which is independent of Company's management. All permanent
employees contribute @8.33% of their basic pay to the said provident fund and the Company makes equal
contribution. Furthermore, the Company operates an unfunded gratuity scheme for its parmanent employees under
which an employee is entitled, upon completion of minimum five years' continuous service, gratuity of one month's
basic pay, last drawn, for each completed year of his/her service. The Company calculates the provisions for
maximum exposure as at the balance sheet date for all eligible employees. While no actuarial valuation has ever been
done, the management does not anticipate significant difference in amount payable on the basis of such actuarial
valuation vis-à-vis provisons made.
3.15 Finance expenses
Finance expenses comprise interest expenses on term loan, overdraft, and bank charges. All finance expenses are
recognized in the income statement.
3.16 Earning per share
The Company presents basic earning per share (EPS) data for its ordinary shares.
3.17 Basic earning per share
Basic EPS is calculated by dividing the net profit or loss for the year attributable to ordinary shareholders by the
weighted average number of ordinary shares outstanding during the year.
3.18 Cash flow statement :
Cash flow statement is prepared principally in accordance with BAS-7 and the cash flow from the operating activities
has been presented under the direct method.
3.19 Restatement of financial statements:
Finance Act 2011 introduced minimum tax vide 16CCC of Income Tax Ordinance 1984 for the income year 2010-11.
As no provision was made in last year, company decided to restate its Statement of Comprehensive Income by
making a provision for tax in amount of Tk. 11,166,741
3.20 Events after the reporting date :
Events after the reporting date that provide additional information about the company's position at the date of
statement of financial position are reflected in the financial statements. Events after the reporting period date that are
non adjusting events are disclosed in the notes when material.
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