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Cover 1 - Apollo Hospitals Dhaka

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Financial Highlights & Auditors’ Report<br />

donation fund is subject to set off against the depreciation charge on assets acquired out of the said fund over the<br />

expected useful life of the related assets following the principles of BAS 20 "Accounting for Government Grants and<br />

Disclosure of Government Assistance".<br />

3.13 Provisions, contingent liabilities and contingent assets :<br />

3.13.1 Contingent liabilities and contingent assets :<br />

Contingent liabilities are not provided for unless a reliable estimate of probable amount as at the balance sheet date<br />

can be made. Contingent assets are not recognized.<br />

3.13.2 Provision :<br />

A provision is recognized in the balance sheet when the company has a legal or constructive obligation as a result of<br />

past event, future outflow will require to meet the past obligation and a reliable estimate can be made of the amount<br />

of the obligation.<br />

3.14 Post-employment benefit schemes :<br />

Schemes of post-employment benefits of eligible employees, payable after completion of employement, include<br />

contributory provident fund, unfunded gratuity and group insurance scheme as envisaged in BAS 19. The<br />

management of recognized providend fund, within the framework of the Rules approved by the National Board of<br />

Revenue, is vested in a Board of Trustees which is independent of Company's management. All permanent<br />

employees contribute @8.33% of their basic pay to the said provident fund and the Company makes equal<br />

contribution. Furthermore, the Company operates an unfunded gratuity scheme for its parmanent employees under<br />

which an employee is entitled, upon completion of minimum five years' continuous service, gratuity of one month's<br />

basic pay, last drawn, for each completed year of his/her service. The Company calculates the provisions for<br />

maximum exposure as at the balance sheet date for all eligible employees. While no actuarial valuation has ever been<br />

done, the management does not anticipate significant difference in amount payable on the basis of such actuarial<br />

valuation vis-à-vis provisons made.<br />

3.15 Finance expenses<br />

Finance expenses comprise interest expenses on term loan, overdraft, and bank charges. All finance expenses are<br />

recognized in the income statement.<br />

3.16 Earning per share<br />

The Company presents basic earning per share (EPS) data for its ordinary shares.<br />

3.17 Basic earning per share<br />

Basic EPS is calculated by dividing the net profit or loss for the year attributable to ordinary shareholders by the<br />

weighted average number of ordinary shares outstanding during the year.<br />

3.18 Cash flow statement :<br />

Cash flow statement is prepared principally in accordance with BAS-7 and the cash flow from the operating activities<br />

has been presented under the direct method.<br />

3.19 Restatement of financial statements:<br />

Finance Act 2011 introduced minimum tax vide 16CCC of Income Tax Ordinance 1984 for the income year 2010-11.<br />

As no provision was made in last year, company decided to restate its Statement of Comprehensive Income by<br />

making a provision for tax in amount of Tk. 11,166,741<br />

3.20 Events after the reporting date :<br />

Events after the reporting date that provide additional information about the company's position at the date of<br />

statement of financial position are reflected in the financial statements. Events after the reporting period date that are<br />

non adjusting events are disclosed in the notes when material.<br />

82/83

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