AASANDHA COMPANY LIMITED

FINANCIAL YEAR 2016

Report No: FIN-2018-29(E) 26 April 2018

TABLE OF CONTENTS

Auditor General's Report .......................1

Financial Statement

Statement of Comprehensive Income ....'......3

Statement of Financial Position '....-.-.-.-.-....-'4

Statement of Changes in Equity ...5

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Disclaimer of Opinion

We were engaged to audit the financial statements of Aasandha Company Limited ("theCompany"), which comprise the statement of hnancial position as at 31st December 2016,thestatements of comprehensive income, statement of changes in equity and statement of cashflows for the year then ended, and notes, comprising significant accounting policies and otherexplanatory notes exhibited on pages 3 to 24.

We do not express an opinion on the accompanying f,rnancial statements of the Company.Because of the significance of the matters described in the Basis for Disclaimer of Opinionsection of our report, we have not been able to obtain sufficient appropriate audit evidence toprovide a basis for an audit opinion on these financial statements.

Basis for Disclaimer of Opinion

As disclosed in the Note 6 to the financial statements, the Company has recorded incomeof MVR 1,036,809,410/- during the year ended 31st December 2016. However, we wereunable to verify the completeness, occurrence and accuracy of this amount due tounavailability of sufficient appropriate audit evidence.

2. As disclosed in the Note 7 to the financial statements, the Company has recorded expensesof MVR 1,031,796,988/- during the year ended 3lst December 2016. However, we wereunable to verify the completeness, occurrence and accuracy of this amount due tounavailability of sufficient appropriate audit evidence.

3. As disclosed in the Note 8 to the financial statements, the Company has recorded otherincome of MVR 44,597,5171- during the year ended 31st December 2016. However, wewere unable to verify the completeness, occurrence and accuracy of budget contributionfrom Ministry of Finance amounting to MVR 43,900,045/- included in other income.

4. As disclosed in the Note 14 to the financial statements, the Company has recognized MVR1,729,539,4241- as amounts due from related parties as at 3lst December 2016. However,we were unable to verify the completeness, existence and accuracy of this balance due tounavailability o f sufficient appropriate audit evidence.

5. As disclosed in the Note 18 to the financial statements, deferred incomeMVR 1I,52I,9381- as at 31st December 2016. However, we were unable

1

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completeness, existence and accuracy of this balance due to unavailability of sufficientappropriate audit evidence.

6. As disclosed in the Note 19 to the financial statements, the Company has recognized trade

and other payables balance of MVR 1,836,293,9661- as at 31st December 2016. However,we were unable to verify the completeness, existence and accuracy of this balance due tounavailability of sufficient appropriate audit evidence.

7. As per Social Council's l00th meeting held on29th February 2076, the Council decided

that management of the Hulhumale' Hospital transferred to the Company. However, due

to unavailability of terms and conditions related to the management of Hulhumale'Hospital, we were unable to determine the possible effects of this management transfer inthese financial statements.

As a result of these matters, we were unable to determine whether any adjustments might have

been found necessary in respect of above elements to the statements of financial position,

statements of comprehensive income, changes in equity and cash flows.

Responsibilities of the Board of Directors for the Financial Statements

The Board of directors ("the Board") is responsible for the preparation and fair presentation ofthe financial statements in accordance with International Financial Reporting Standards, and

for such internal control as the Board determines is necessary to enable the preparation off,rnancial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Board is responsible for assessing the Company's

ability to continue as a going concern, disclosing, as applicable, matters related to going concern

and using the going concern basis of accounting unless the Board either intends to liquidate the

Company or to cease operations, or has no realistic alternative but to do so.

Auditor's responsibilities for the Audit of the Financial Statement

Our responsibility is to conduct an audit of the Company's financial statements in accordance

with International Standards on Auditing and to issue an auditors' report. However, because ofthe matters described in the Basis for Disclaimer of Opinion section of our report, we were not

able to obtain suffrcient appropriate audit evidence to provide a basis for an audit opinion on

these financial statements.

We are independent of the Company in accordance with Intemational Ethics Standards Board

for Accountants Code of Ethics for Professional Accountants (IESBA Code) together with the

ethical requirements that are relevant to our audit of the financial statements and we have

fulfilled our other ethical responsibilities in accordance with these requirements.

25th February 2018

1v(ry:Hassan ZiyathAuditor General

Auditor General 's Offrce I Ghaazee Building I Ameer Ahmed Magu I Male', Republic of Maldives+960 332 3939 | inlbr?auditSor.nrv lrvu u.audit.gov'mv

AASANDtiA COt\,t PA NY t.t l\{ I'l'lil)(t NCORPOItATtiD I N I'fi ll Rli Pt I lil,l(' Ot- M A l,l)l \/ES)s1'A1' E I\t EN 1' O ti ( t() N{ P tt [, I I l.] N S I \/ li I N ( lO M l.

r.'oR THE YEAR ENDIID 3rt'' DIicEMBER 2016

lncome

Expenses

Net income

Other income

Expenses for adminisl ration

Expenditure over income before tax

Income tax expense

20t6 20t5Notc MVR. MVR.

6 1,036,809,4t 0 I,t 93,515,812

7 (t.03r.796,988) (1,176,72s,646)

5,012,422 16,790,166

8 44,591 ,517 30,528, t 33

9 (49,609,939) (47,318,299)

9

10 (244,092)

Expenditure over income efter tax (fotal comprehensive income) (244,092)

Figures in brackets indicate deductions.

These financial statements are to be read in conjunction with the related notes which form an integral part ofthe financial statements of the Company setout on pages 7 to24. The Reportof the Independent Auditors is

given in pages I and 2.

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AASANDIIACOMPANY LTD

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AASAN DIIA (]OI\I I'ANI I,I MII'IJI)(r N(.o RPORA'l'ti D r N'l'r I I,l RIiPt ) B l.l( I O l.- I\l A l,l) I \/ l,.S)

sTA'r'rrM ll,N1' Or.- r.-r NAN(]I AL POSn'ION

AS Ar' 3t sl' DtiCIiMBI,R 20t 6

ASSETSNon-current esscts

Property, plant and equipmentIntangible assets

To{al non-current ess€(s

Current assets

InventoryAmount due from related parties

Other receivables

Cash and cash equivalents

Total current rsscts

Total assets

EQUITY AND LIABILITIES

EquityShare capital

Add itional capital contribution

Accumulated surplus

Total equity

Non-current liabilitiesDeferred incomeDeferred tax liabilityTotal non-current liabilities

11,384,237 10,996,734

s64,8991,423,897,738

100,s38,95339,916,504

1,847,204,932 r,564,9r 8,094

_1,!$,5!2J-q2_ 1,575,914,828

Notc3il12/20t6

MVR.3t /12/2015

MVR.

II12

9,220,71s2,163,522

8,778,0742,2t8,660

l3t415

16

880,947

1,729,s39,424

I I I,666,283s,1t8,278

t7

l8r0.2

5,000,000

5,000,000

6ts,037

5,000,000

5,000,000

859,12910,615,037 10,859,129

I 1,521,938

1s8,22817,421,983

r 1,680,166 17,421,983

Current liabilitiesTrade and other payables

Total current liabilities19 1,836,293,966 1 ,547 ,633 "7 16

Total Iiabilities 1,847,974,132 1,565,055,699

Total equity and liabilities __1,!l!t'!9J_q9_ 1,575,914,828

Figures in brackets indicate deductions.

These financial statements are to be read in conjunction with the related notes which form an integral part ofthe financial statements of the Company set out on pages 7 lo 24. The Report of the Independent Auditors is

given in pages I and 2.

These financial statements were approved by the board of directors and signed on its behalf by;

Neme of the Director

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22"d February 2018

1,836,293,966 1,s47,633,716

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AASAN DilA CONt t'ANY l,l l\,1 I'l'Iil)(tNCORPORAT-liD I N Tr r E RltPt I lil,l(' Ol.- l\'lAl.l)l VES)

s]'A'r'r,r,M r.r,N'r. o l.' ( r ll A N(; Its r N 1]Q l ) r'l'\'

FOR'I-IIIi YEAR F]NDI'D 3ISI DIi(]ENIRER 2OI6

Sha rc

MVR

AddilionalCapital

ContribulionMVR

Accumulatedsurplus

MVR

To(elCepital

MVR

Balance as at l'1 January 2015 5,000,000 5,000,000 8s9,129 10,859,129

Expenditure over income after tax

Balance as at 3 I s December 201 5 5,000,000 5,000,000 859,t29 10,859,129

Balance as at ln January 2016 5,000,000 5,000,000 859,129 10,859,129

Expenditure over income after tax (244,092) (244,092)

Balance as at 3l't December 2016 5,000,000 61s,037 r 0,61 5,037

Figures in brackets indicate deductions.

These financial statements are to be read in conjunction with the related notes which form an integral part ofthe financial statements of the Company set out on pages 7 to24. The Report of the Independent Auditors is

given in pages I and 2.

5

AASANDI{ACOI/IPANY LTD

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AASAN DItA ('()l\{ PANt', Lil\fl 't'l.I)(r NCORPORA',T-ttD I N't-il It RtiPt i Br,lC ()[' nrAr.l)rvES)S'l-Al-Il.M IiN'I- O l" ( lASl I l,'l,O\\/S

FOR't'HE YI]AR ENDIil) 3ts' DIiCtiMBtiR 20t(r

Cash flows from opcrating activities

Operating income

Operating expenses

Cash paid to employees, management fee, and olher suppliers forservices and goods

Business profit tax paid

Net cesh from / (used in) opereting ectivities

Cash flows from investing activities

Purchases ofproperty, plant and equipmentPurchases of intangible assets

Net cash used in from investing activities

Net increese / (decrease) in cash and cash equivalents

Cash and cesh equivalents at beginning ofyearCash end cash equivalents at end ofyear

Notc7016

MVR.

769,865,196(743,4s2,786)

20t 5

l\,lvR.

820,504,382(658,499,29r )

(s7,096,079) ( I 1s,550,809)

(9,598,r4r)

(30,683,669) 36,856,r4r

ilt2

(3,638,60r)(47s,9s6)

(9,993,6r0)(2,582,598)

(4,1t4,ss7) (12,s76,208)

(34,798,226)

39,916,504

24,279,933

15,636,571

16 5,118,278 39,916,504

These financial statements are to be read in conjunction with the related notes which form an integral part ofthe financial statements of the Company set out on pages 7 to24. The Report of the Independent Auditors is

given in pages I and 2.

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AASAi'iDI.IACOIdPANY LTO

c-0807/2011

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AASANDIIA COMPANY T,IMIl'IiI)(INCORPORATIaD IN ]'HE REt)t-tiItIC Ot- MAt,t)Ivtas)NOTBS TO TIIE FINANCIAI, S'TATEMI'N'I'TJ

I. REPORTING BNTITY

Aasandha Private Lir-nited (the "Company") is a linrited liability cotnpany incorporated and dorrriciledin the Republic of Maldives as a privatc linritcd liability Company sincc 2l'r Decenrber 201I underthe Companies'Act No. l0 of I996 with its registered office at Fen building,2nd floor, AmeeneeMagu, Male', Republic of Maldives. The Company commenced its operations with el'fect from l'1January 2012.

The main activity of thc Company is to nranage Universal IJcalthcare Insurance Schenre offered bythe Government of Maldivcs. As per tlre management agreement entered in to with the Covernmentof Maldives the scheme is non-profit scheme run from the state budget and the Company is entitle toreimburse the total amount equivalent to claim made and administration expenses incurred, fromNational Social Protection Agency.

The name of the Company has been changed as "Aasandha Company Limited" during the year. TheGovernment has acquired the shares held by Allied Insurance Company of the Maldives PrivateLimited during the year. Accordingly, the Company is fully owned by Government of Maldives as atthe reporting date.

2. BASIS OF PRBPARATION

(a) Statement of Compliance

The Individual financial statements of the Company have been prepared in accordance withInternational Financial Reporting Standards (IFRS).

(b) Basis of Preparation

The individual financial statements of the Company have been prepared based on the historical costsbasis except for available for sale investments and those financial assets and that have been measuredat fair value.

(c) Functional and Presentation Currency

The financial statements are presented in Maldivian Rufiyaa, which is the Company's functionalcurrency. AII information presented in Maldivian Rufiyaa has been rounded to nearest Rufiyaa exceptfor otherwise indicated.

(d) Use of Estimates and Judgements

The preparation of financial statements in conformity with IFRSs requires management to makejudgments, estimates and assumptions that affect the application of accounting policies and thereported amounts of assets, Iiabilities, income and expenses. Actual results may differ from theseestimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions toestimates are recognized in the period in which the estimates are revised and inaffected.

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AqSAT.ISHACO|tiPANY LTD

c-0807/:011

AASANDI{A COMI'ANY I.IMI'I'EI)(INCORPORA'I'EI) I N TI{ 1l Rlrl'}Ltl l}lC ()Ir MA l,l)l VFIS)

NOTBS TO 1'I{E FINANCIAL STA'I'EMINTS

2. BASIS OF PREPARATION (CONTINUED)

(e) Criticat Accounting Estimatcs, Assumptions and Judgcmcnts

In the preparation of these financial statements, a number of estinrates and assumptions have been

made relating to the performance and the financial position of the Company. Results may differsignificantly from those estimates under different assumptions and conditions. These particularpolicies require subjective and complex judgments, oflen as a result of tlre need to make estimates

about the effect of matlers thal are uncertain. Infornration aboul and areas of estimation, uncertainlyand critical estimates, assumptions and judgments in applyirrg accounting policies that have the most

significant effect on the amounts recognized in the financial statements are discussed in respective

note.

3. SIGNIFICANTACCOT]NTINGPOLICIES

The accounting policies set out below have been applied consistently to all periods presented in these

financial statements, and have been applied consistently by the Company.

3.1 Translation in Foreign Currencies

(a) Functional and Presentation Currency

Transactions in foreign currencies are translated to Maldivian Rufiyaa at the exchange rate ruling at

the date of transaction. Monetary assets and liabilities denominated in foreign currencies as at the

reporting date are translated to Maldivian Rufiyaa at the foreign exchange rate ruling as at that date.

Foreign exchange differences arising on translations are recognized in the profit or loss.

Non-monetary assets and liabilities, which are measured at historical cost, denominated in foreign

currencies are translated to Maldivian Rufiyaa at the exchange rates ruling at the dates of transactions.

Non-monetary assets and liabilities, which are stated at fair value, denominated in foreign currencies

are translated to Maldivian Rufiyaa at the exchange rates ruling at the dates the values were

determined.

3.2 Financiallnstruments

(i) Financial Assets (Nonderivative)

The Company initially recognises receivables and deposits on the date that they are originated. Allother financial assets (including assets designated at fair value through profit or loss) are recognized

initially on the trade date at which the Company becomes aparty to the contractual provisions of the

instrument.

The Company derecognizes a financial asset when the contractual rights to the cash flows from the

asset expire, or it transfers the rights to receive the contractual cash flows on the financial asset in a

transaction in which substantially all the risks and rewards of ownership of the financial asset are

transferred. Any interest in transferred financialrecognized as a separate asset or liability.

8

assets that is created or retained by IS

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AASAT\iDl-lACOtIPANY LTD

AASANDHA (]OMI'ANY I,I MIl'I'I)(INCORPORA'I'ED IN TIIE REPLIIBI(l OI,' MALDMiS)NOTES TO I'IIE FINANCIAL S1'A'I-I'MI|N'I'S

3 SIGNIFICANTACCOUNTINGPOLICIES(CoNTINUED)

3.3 Financiallnstruments(Continued)

The Company has the following financial assets (non-derivative):

. Loan and Receivables

. Cash and cash equivalent

Loans and Receivables (I^&R)

Receivables are financial assets with fixed or determinable payments that are not quoted in an active

market. Such assets are recognized at fair value plus any directly attributable transaction costs.

Subsequent to initial recognition, loans and receivables are measured at amortized cost using the

effective interest method, less any impairment losses.

Receivables comprise of amount due from related party and other receivables

Cash and Cash Equivalents

Cash and cash equivalents include 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

overdrafu are shown within borrowings in liabilities on the balance sheet.

(ii) Financial Liabilities (Non-derivative)

The Company initially recognises debt securities issued and subordinated liabilities on the date that

they are originated. All other financial liabilities are recognized initially on the trade date at which the

Company becomes a party to the contractual provisions of the instrument. The Company derecognizes

a financial liability when its contractual obligations are discharged or cancelled or expire.

Financial assets and liabilities are offset and the net amount presented in the statement offinancial position when, and only when, the Company has a legal right to offset the amounts

and intends either to settle on a net basis or to realize the asset and settle the liabilitysimultaneously.

The Company's nonderivative financial liabilities comprise insurance payables and other payables.

Such financial liabilities are recognized initially at fair value plus any directly attributable transaction

costs. Subsequent to initial recognition these financial liabilities are measured at amortized cost using

9

the effective interest method.

(i) Financial Asscts (NonJerivative) (Continued)

Financial assets and liabilities are offset and the net amount presented in the statement offinanciat position when, and only when, the Company has a legal right to offset the amounts

and intends eitlrer to sctle on a net basis or to realize the asset and setlle the liabilitysimultaneously.

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FEF}3\itrAASATiDH,qCOIlPANY LTD

c.0807/2011L )

AASANDIIA (]OMI'ANY I,IM I'I'IiI)(INCORPORATI,II) IN'I'lI E Illil') Lt I l] I (l OI,' MA l-l)l VES)N OTES TO ]'H E I.'I N AN(]I A I, S1'A1' I,]M I'N'IS

3 SIGNIFICANTACCOUN'I'ING I',OLICIES(CONTINUITD)

3.3 Financiallnstrumcnts(Continucd)

(iii) Share Capital

Shares are classified as equity when there is no obligation to transfer cash or other assets. lncrernentalcosts directly attributable to the issue of equity irrstruments are shown in equity as a deduction fromthe proceeds.

3.4 Property, Plant and Equipment

(i) Recognition and Measurement

Items of property, plant and equipment are measured at cost less accumulated depreciation and

accumulated impairment losses.

Cost includes expenditure that is directly attributable to the acquisition of the asset. The cost of self-constructed assets includes the cost of materials and direct labor, any other costs directly attributable

to bringing the assets to a working condition for their intended use, the costs of dismantling and

removing the items and restoring the site on which they are located and capitalizsd borrowing costs.

Purchased software that is integralto the functionality of the related equipment is capitalized as part

of that equipment.

When parts of an item of property, plant and equipment have different useful lives, they are accounted

for as separate items (major components) of property, plant and equipment.

Gains and losses on disposal of an item of property, plant and equipment are determined by comparingthe proceeds from disposal with the carrying amount of property, plant and equipment, and are

recognized net within other income in profit or loss.

(ii) Subsequent Costs

The cost of replacing a part of an item of property, plant and equipment is recognized in the carrying

amount of the item if it is probable that the future economic benefits embodied within the part willflow to the Company, and its cost can be measured reliably. The carrying amount of the replaced part

is derecognized.The costs ofthe day-to-day servicing of property, plant and equipment are recognized

in profit or loss as an expense as incurred.

(iii) Depreciation

Depreciation is calculated over the depreciable amoun! which is the cost of an asset, or other amount

substituted for cost, less its residual value.

l0

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AASANDHA COMI'ANY I,IMI'I'EI)(INCORPORATED IN'I'Hti REI'l,tjBIC ()F- MAr,r)tVEli)NOI'ES TO THI' FINAN(--IAL S'IATI'MEN:I'S

3 SIGNTFTCANTACCOUNTTNG POLTCTES(CON'I'TNUED)

3-4 Property, plant and Bquipment (Continucd)

(iii) Depreciation (Continucd)

Depreciation is calculated to write offthe cost of items of property, plant arrd equipment using thestraight line basis over their estimated useful lives. Depreciation is generally recognized in profit orloss, unless the amount is included in the carrying anrount of another asset. Leassd assets aredepreciated over the shoftel of the lease term and their useful Iives unless it is rcasonably certain thatthe Company will obtain ownership by the end of the lease term. Land is not depreciated.

The estimated useful lives for the current and comparative period are as lbllows:

Furniture and FittingsOffice InteriorsMotor vehiclesOffice Equipment and ComputersAir conditionersSundry Assets

Depreciation methods, useful lives and residual values are reviewed at eacli financial year-end andadjusted if appropriate. The charge for the deprecation commences from the month in which theproperry, plant and equipment is ready for use.

3.5 Intangible Assets

(i) Recognition and Measurement

Intangible assets that are acquired by the Company and have finite useful lives are measured at costless accumulated amortization and any accumulated impairment losses.

(ii) Subsequent Costs

Subsequent expenditure is capitalized only when it increases the future economic benefits embodiedin the specific asset to which it relates. All other expenditure are recognized in profit or loss as incurred.

(iii) Amortization

Intangible assets are amortized on a straight-line basis in profit or loss over their estimated useful lives,from the date that they are available for use.

The estimated useful life for the current and comparative periods is as follows:

Software 5 Years

Amortization methods, useful lives and residual values are reviewed at eachadj usted if appropriate.

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AASANDIIA COMI)ANY LIM I'tT]I)(INCORPORATED IN'I'H I,t R l.tPt,t I IllC OI.' MA l.l)l V ES)NOTES 1'O'III E FINANCIA I- SI'A'I-T!M I,]N1'S

3 SIGNII,-ICAN'I'ACCOUN'I'IN(; POLICIES (CONTINt.IED)

3.5 I nvcntorics

Inventories have been valued at the lower of cost and net realizzble value. l-he cost of inventories isbased on the weighted average (WAC) principle, and includes expenditure incurred in acquiring the

inventories, production or conversion costs and olher costs incurred in bringing them to tlreir existinglocation and condition

Net realizable value is thc estimated selling price in the ordinary course of business, less the estirnated

costs of completion and selling expenses.

3.6 Impairment

(i) Financial Assets (Non Derivative)

A financial asset not carried at fair value through profit or loss is assessed at each reporting date todetermine whether there is objective evidence that it is impaired. A financial asset is impaired ifobjective evidence indicates that a loss event has occurred afterthe initial recognition of the asset,

and that the loss event had a negative effect on the estimated future cash flows of that asset that can

be estimated reliably.

The Company considers evidence of impairment for receivables at both a specific asset and collectivelevel. All individually significant receivables are assessed for specific impairment. All individuallysignificant receivables found not to be specifically impaired are then collectively assessed for anyimpairment that has been incurred but not yet identified. Receivables that are not individuallysignificant are collectively assessed for impairment by grouping together receivables with similarrisk characteristics.

An impairment loss in respect of a financial asset measured at amortized cost is calculated as the

diflerence between its carrying amount and the present value of the estimated future cash flowsdiscounted at the asset's original effective interest rate. Losses are recognized in profit or loss and

reflected in an allowance account against receivables. lnterest on the impaired asset continues to be

recognized through the unwinding of the discount. When a subsequent event causes the amount ofimpairment loss to decrease, the decrease in impairment loss is reversed through profit or loss.

3.7 Tax Expenses

Tax expense comprises current and deferred tax. Current tax and deferred tax is recognized in profitor loss.

Current Tax

Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using

tax rates enacted or substantively enacted at the reporting date.

12ffi]&dSArt*DHACOMPANY LTD

c.08uno1'l

AASANDIIA COMI'ANY I,IM I'I-IiD(INCORPORATI|I) IN TIili REI't-tililC OI,' MALI)IVES)NOTIIS TO TI{ ti F-I NA NC I A I- S'I'A'I'I|M I|N'I'S

3 SIGNIFICANTACCOT.INTIN(; I'OLICIES(CONT'lNUlil))

3.7 Tax Expenses (Continucd)

Defcrrcd Tax

Deferred tax is recognizrd in respect ol'temporary differences between the carrying amounts ol'assetsand liabilities for financial reporting purposes and tlre arnounts uscd for taxation purposes. Deferredtax is measured at tlre tax rates that are expected to be applied to tcrnpomry differences when tlrcyreverse, based on the tax rate enacted or substantively enacted at the reporting date.

Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current taxliabilities and assets, and they relate to income taxes levied by the same tax authority on the same

taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on

a net basis or their tax assets and liabilities will be realized simultaneously.

A deferred tax assets is recognized for unused tax losses, tax credits deductible temporary differenceto the extent that it is probable that future taxable profits will be available against which they can be

utilized. Defened tax assets are reviewed at each reporting date and are reduced to the extent that it no

longer probable that the related tax benefits will be provided.

3.8 Provision

A provision is recognized if, as a result of a past event, the Company has a present legal or constructive

obligation that can be estimated reliably, and it is probable that an outflow of economic benefits willbe required to settle the obligation.

If the time value of money is material, provisions are determined by discounting the expected future

cash flows at a pre-tax rate that reflects current market assessments of the time value of money and

the risks specific to the liabiliE. The unwinding of discount is recognised as finance cost.

3.9 Income

Operating Income

Operating income comprise the total amount receivable for reimbursement of operating expenses and

administration expenses for the whole period under the contract with the government and is recognized

on accrual basis.

No income is recognized if there are significant uncertainties regarding recovery of the consideration

due.

Investment Income

Interest income is recognized in the income statement as it accrues using effective interest rate method.

13lwAASANDHAC0ltiPANY LTo

c-0807/20.ll

AASANDIIA (]()MI'ANY LIMI'I'IiI)(t NCORPORA]'IiD tN TIt ti ll El'l-UB IC Ol,' M A t,l)l V lis)NOTES TO I'HI' I.'INANCIAL S'I'A'I-I.]MENI'S

3 SIGNIFICANTACCOUNTINGPOLICIES(CONTINUED)

3.10 Governmcnt Grants

Government grants are recognized initially as differed income at fair value whcn there is reasonable

assurance that they will be received and the Group will comply with the conditions associated with the

grant, and are then recognised in profit or loss as other income on a systematic basis over the usefullife of the asset.

Grants that compensate the group for expenses incurred are recognised in profit or loss as other incomeon a systematic basis in the periods in which the expenses are recognized.

3.11 Cash flow statement

Cash flow statement has been prepared using the "direct method".

3.12 Events Occurring After the Reporting Date

The materiality of the events occurring after the reporting date has been considered and appropriate

adjustments and provisions have been made in the financial statements wherever necessary.

4 DETERMINATION OF FAIR VALUES

A number of the Company's accounting policies and disclosures require the determination of fairvalue, for both financial and non-financial assets and liabilities. Fair values have been determined formeasurement and lor disclosure purposes based on the following methods. When applicable, further

information about the assumptions made in determining fair values is disclosed in the notes specific

to that asset or liabilify.

(i) Receivables

The fair value of receivables is estimated as the present value of future cash flows, discounted at the

market rate of interest at the reporting date.

(ii) Financial Liabilities (Non-derivative)

Fair value, which is determined for disclosure purposes, is calculated based on the present

value of future principal and interest cash flows, discounted at the market rate of interest at

the reporting date.

t4@lAASANDHA ICOTvIPANY LTo !

c-0807/201 I )

G

AASANDHA COMI'AN\/ I,I M IT'I.]I)(INCORPORA'I'ED IN I'l-l E Rlil'l,tlBl(l ()I.- MAI-l)M!S)NOTES TO TIII' ITINANCIAL STATEMI,]NTS

5 NEW STANDARDS AND INTERPRETATIONS NOl'YET ADOP'IEI)

A number of ncw standards, amendments to standards and interpretations arc effective for annual

periods bcginning alier I'r January 20l6. Thc Conrpany is currently in the proccss of evaluating the

potential impact these standards and interpretation may have on the Cornpany's financial statements.

. IFRS l5 - Revenue from contracts with customers.

. IFRS 9 - Financial Instruments.

. Annuallmprovements of IFRSs 2011-2013 Cycle.o Amendments to IAS l6 and IAS 38 - Classification of Acceptable methods of Depreciation

and Amortization.

10

15n

l*ffi*o II cor,plnv uro IL..*J

AASANDHA ( rOM l'ANY l,l M l'l'l.ll)(INCORPORA't'riD r N',l'lI E RliPtI lll,lC Ol.' lv A l,l)l\/lis)NOTI'S TO I'II T] F-I N A N(]I A I, SI-AI'I'I\I I'NI-S

FoR "I'uE yEAR IiNDIID 3rtt DTicIiMBER 20r6

INCOME

Reimbursement of expenses

EXPENSES

Expenses incurred on medical claims

OTHER INCOME

Budget contribution from Ministry of Finance

Other income

9 INCOME OVER EXPENSES BEFORE TAX

Is stated after charging all the expenses including the followings;Administration fees

DepreciationAmortizationWages and salaries

Directors remuneration

9.1 Salarics and wages

Basic salary

Allowances

Bonus

Pension allowances

2016MVR.

20t5MVR.

6

7

8

l0 1,193,5t5,8t2

2016MVR.

2015MVR.

1,03 r,796.988 1,t76,725$!9

2016MVR.

43,900,04s697,472

2015MVR.

30,528, r 33

44,597,517 30,528,133

2016MVR.

2015MVR.

8,745,0001,2t5,s36

363,93819,061,358

546,500

3,195,961531,094

26,079,136586,500

12,362,841

12,452,441

1,263,85426,079,136

8,40s,4528,305,0671,527,954

822,88s19,061,358

10

AASANI]HACO:JIPAi.{Y LTD

c.0807/2011Ij

r

t6t1i<

)

AASANDllA ( roM l'ANY l,l l\ll'l'lll)(l NCO RPORA'I'EI) I N'l'll It Rl.lP( I lt l,l(' Ol.' M A Ll)l \/ lls)FI N A NCI A I, STAI'I]I\{ I]N"I-S

FoR TtIE YEAR ENDuD 3rt't Dli(:tiMBI.;R 20t6

IO TAX EXPENSES

Current tax expense (Note l0.l)Deferred tax charged duringthe year (Note l0-2)

10.1 Reconcilietion between income over expenditure end texable profitIncome over expenditure before taxAggregate d isal lowable items

Aggregate allowable items

Tax free allowanceTotal taxable profit

10.2 Deferred tex (liability) / asset

Recognized during the year

Closing balance

Deferred tax (liability) / asset is attributable to the followings;

3ul2l20l6

2016

MVR.201 5

MVR.

85,864

158,228

244,092

5,577,409(4,s04,983)

(500,000)

3.r 83,003(2,767,922)

(4rs,08r)572,426

Business profit tax @ 15% 85,864

In accordance with the provisions of the Business Profit Tax Act No. 5 of 201I and subsequent

amendments and, relevant regulations, the Company is liable for Business Profit Tax at the rate of 15oh

on its taxable profit.

2016MVR.

2015

MVR.

158,228158,228

3Ut2t20tsTemporary Tax Effect Temporary Tax EffectDifference Difference

MVR. MVR. MVR. MVR.

Property, plant and equipment _gIllEil (1 58,228) 95,298 14,295

The deferred tax assets relavent to 2015 has not been recognized in respect of above temporary

differences because it is not probable that future taxable profit will be available against which the

Company can utilize the benefits there from.

t7

10

AASANDHA COMPANY LIMITED(INCORPORATED IN THE REPUBLIC OF MALDryES)NOTES TO THE FINANCIAL STATEMENTS

AS AT 31ST DECEMBER 2016

1I PROPERTY,PLANTANDEQUIPMENT

CostOpening balance

Additions during the year

Transferred from Capital working progress

Closing balance

Accumulated depreciation

Balance as at l't January

Charge for the year

Balance as at 3l't December

Net Carrying ValueBalance as at 3l't December 2016

Balance as at 3l't December 2015

Capital Work in Progress (Note 11.1)

Total

11.1 Capital Work in Progress

Opening balance

Additions during the year

Transferred during the YearClosing balance

OfficeInteriors

Officeand Computer

EquipmentMVR.

MotorVehicles

Furn itureand Fittings

AirConditioners

SundryA ss ets

Total2016

Total20r5

MVR. MVR. MVR. IVIVR. MVR. lt\ R.

3,170,444400,040572,052

761,5553lL,974

52,24419,099

25.57964.691

560,1 4 1

572.052

4,142,536 7,694,386 560.141 1.073.529 71,343 90.276 13.632.211 9.421.558

9.421.55E

3.638.601 9.42 r.55E

528,406759,263

557,996 53,027 58,249 13.121

2,195,996 112,028 91,934 19,E26

4.137

16.913

1.215.536

3. I 95.960 r.2 r 5.536

1,287,669 2,753,992 r 65.055 I s0. I 83 33,547 21.050 4.41 1.496 1.21 5.536

2,854,867 395,0E6 923,346 37,796 69,226 9.220.715

4,293,599 507,1t4 703,306 lR 52? 2t lA2 E.206.022

572.052

E.77E.074

:L/572.052

(s72.052)572.052

572.052

The Copaital working progress includes the expenses incuned for the Offlce interiors of Fen building 3'd Floor. Which has been capitalized during the 1'ear 20 16,

18

MVR.

4,85 1,595

2,842,791

2,642,038

9.220.'/15

r\ -$

AASAN l)t-tA ('Or\rPANl', l.! M l,r'rrt)( ! N( roRPORA',t ItD I N'r'il I: l{ltPt J t}l,t(' Ot' i\'t A t,l)l \/ lls)NOTI|S'l'O'l'!l I! Fl N AN(llA L S'l'A1'li l\l ItN'l s ((l()N'l'lN t I ItD)

t,-oR -I'HE YEAR IrNDlil) 3tsr t)ECtiN,illl,R 2016

12 INTANCIBI-E ASSETS

CostBalance as at lst January

Addition during the year

Balance as at 3l st December

Accumulated AmortizationBalance as at Ist January

Charged During the YearBalance as at 3l st December

Net Crrrying Value

I3 INVENTORIES

t4

Printing and Stationery items

AMOUNT DUE FROM RELATED PARTIES

National Social Protection AgencyHulhumale Medical Hospital

15 OTHERRECEIVABLES

Other receivables

Staffloan receivables

Allied Insurance Company of the Maldives Private LimitedAdvance receivablesTax receivable (Note 15.1)

Cash in HandBalances with Banks

3t /12t2016t\{vR.

3t fi2/20tsM\/R.

2,582,598475,9s6 2,582,s98

3,058,554 2,582,598

363,938

531,094 363,938895,032 363,938

2,163,522 2,218,660

31tl2t2016MVR.

3l/12t2015MVR.

3llt2l20l5MVR.

880,947 564,899

3Ut2l20t6MVR.

1 ,s34,s96,964 I ,423,897 ,738194,942,460

1,729,539,424 1,423,897,738

3Ul2t20l6MVR.

3t/12t2075MVR.

724,96471,666

198,457

60,826,25049,844,946

63s,703143,031198,4s7

49,630,9s249,930,810

111,666,283 100,538,953

15.1 Tax receiveblcThe tax recoverable amount includes tax paid by the Company on taxable profit relating to the financial years

ended 3ls December 2Ol2 and 2013. The management of the Company is of the view that these taxes are

recoverable as at the reporting date.

16 CASHANDCASHEQUIVALENTS 3Ut2l20l6MVR.

3,/r2f20t5MVR.

19,23s151,3904,966,888

19

5,118,278

AASANDIIA ( rOM PANY t,tMt't'til)( I NCORPORA'r'ED I N'l'll ri RllPl r Ilr,r( Or; t\{ A r.DlVl.ls)N OTES'I'O't'H t' t.'t N A NCI A t- S't'Al'ta, l\r t Nl'S (('()Nt't N t l liD)

ITOR TIIIi YEAR ENDED 3I'. DI'CEMRI,]R 20I6

17 SI{ARE CAPITAI-

AuthorizedThe authorized share capital comprises of 100,000 (2016 : .l00,000)

ordinary shares of MVR. 100/- each.

Issued and fully paidThe issued and fully paid share capital comprises of 50,000 (2016:50,000) ordinary shares of MVR. 100/-

each.

Dividends and voting rightsThe holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled

to one vote per share at shareholders'meetings of the Company.

18 DEFFERED INCOME

Opening balance

Recognized during the year

Realized during the YearClosing balance

l8.l Analysis of Deferred Income

Unutilized grants (Note 18.2)

Grants related to assets (Note 18.3)

Outstanding claims payables

Accrued expenses and other payables

31fi2/2016MVR.

3Ut2D0t5MVR.

17,421,983

38,000,000 47,950,116(30,528,1 33)(43,900,04s)

11,52 1,938 __)J&1283_

5,226,434 6,432,401r 0,989,5 826,29s ,504

I 1,5 21,938 ___!_,42)233_

18.2 The deferred income represents the amounts received from Finance Ministry for the future operating

expenses. The deferred income is recognized when it is incurred during the period.

18.3 The deferred income represents the amounts funded by Ministry of Finance to purchase fixed assets,

intangible assets and inventories. The deferred income relating to capital assets are recognized over the

useful life ofassets and deferred income relating to inventory is recognized when inventories are used.

19 TRADEANDOTHERPAYABLES 3ut2t20t6 3yl2l20l5MVR. MVR.

1,748,260,444

88,033,522

1,547,138,053

495,663

1,836,293,966 I ,547 ,633,7 16

20ffiffiA,ASI,NDHA ICOI,II'ANY LTD I

_ a-rrorrrofl I

AASANI)IIA (]O]\{ PAN}' I-IMIl'I'D(IN(]ORPOn^'t'ttD I N't-tIE Rt!,t)l r Bt,t( I otr M A LDt vtts)NO'l'lrs'l'o'r-t I ti l-t N A NClt A l, s't'A't'DI\.r tiN'r's (( toN'I-t N t I ti D)

FoR Tr-ui yIiAR ENDED 3lt'' DIi(:tiMtltiR 20t6

20 TTINANCIAI- INS'I'RUMEN-I'S AND RISK MANACEMENT

The Company has exposure to the following risks arising from financial instruments;

This note presents information about the Company's exposure to each of the above risks, and theCompany's objectives, policies and processes for measuring and managing risk, and the management of

Risk Management F ramework

The Board of Directors has overall responsibility for the establishment and oversight of the Company'srisk management framework. The Company's risk management policies are established 10 identiS, andanalyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor risksand adherence to limits.

(i) Credit Risk

Credit risk is the risk of financial loss to the Company if a pafi to the contract fails to meet itscontractual obligations, and this principally arises from the Company's receivable from related party.

Exposure to Credit Risk

The carrying amount of financial assets represents the maximum credit exposure. The maximum

exposure to credit risk at the reporting date was as follows;

3yt2t20t6 3t/t2l20lsCarryingAmountMVR

0-12 Months

MVR.

CarryingAmountMVR.

0-12 Months

MVR.

Amount due from related parties

Other receivables

Cash and cash equivalents

1,729,539,424

61,821,337

5,118,278

1,729,539,424

61,821,337

5,118,278

1,423,897,73850,608,143

1,423,897,73850,608,143

39,916,s04 39,91 6,504

Jffifl2-D2 1.796.4 79,039 1,514,422,385 Jiltpe_The Company's exposure to credit risk is influenced mainly by the credit worthiness the Government ofMaldives as represented by National Social Protection Agency

Impairment Losses

The Company establishes an allowance for impairment that represents its estimate of incurred losses inrespect of receivables. The main components of this allowance are a specific loss component that relates

to individually significant exposures.

2t

. Credit risk

. Liquidity risk

. Market risk

@tA,ASANDHA ICO,rlpANy LTD I

. c.o:ozlzott I

$ffuI\

AASANDIIA (]OMPANY LI M I'I'I'I)(l NCORPORAI'ED I N I'H It Rl,Pl I Bl.l(' Ol.- M A l,DI \/ lis)NOTES'I'O'I'II E ITI N ANCI A I, S'I'A'I-I.]I\,I ENl'S (CONTt N { J E D)

FoR-I-uE vriAR ENDED 3rtt DEcriMBoR 20t6

20 FTNANCTAL tNS'I'RUMENTS AND RISK MANAGEMENT (CONI-INUED)

(i) Credit risk (Continued)

lmpairment losses (Continued)

The aging of amount due fronr relaled party al the reporting date was as follows;

3Ut2n0rc 3Ut2/2015GrossMVR

ImpairmentMVR

lmpairmentMVR

CrossMVR

Past due 0-30 days

Past due 3l-365 days

More than one year

478,190,455 - 97,828,425

8,962,154 - 843,464,203

)l2e;2,4u_: r_,423 W J38_:(ii) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations

associated with its financial liabilities that are settled by delivering cash or another financial asset. The

Company's approach to managing liquidity risk is to ensure, as far as possible, that it will always have

sufficient liquidity to meet its liabilities when due, without incurring unacceptable losses or risking

damage to the Company's reputation.

The following are the contractual maturities of financial liabilities as at the reporting date;

3Unngr6 3Ut2/2015CarryingAmountMVR

0-12MonthsMVR

CarryingAmountMVR

0-72

MonthsMVR

Trade and other payables

TotalI ,966 1,836,293 716 I 7,633,716

1,836,293,966 I ., 47,633,716

It is not expected that the cash flows included in the maturity analysis could occur sigrificantly earlier,

or at significantly different amounts.

(iii) Market Risk

Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates

will affect the Company's income or the value of its holdings of financial instruments. The objective of

market risk management is to manage and control market risk exposures within acceptable parameters,

while optimizing the return.

22

I

wAP.SAIJDI"iACOI'iPANY LTD

c-0807/2011

10

AASANDIIA (]OMPANY I,I M I'I'IiI)(TNCORPORA'r'ED tN THE REPUBLT(_ O!,' MALDtVnS)NO-I'ES 1'O Tt I Ii F-t NA NCt A I STATT' I\{ ITNTS (CONr.l N U Ii D)

FOR't't|E YEAR ENDED 3IS' DECEMBER 2OI6

20 FTNANCTAL INSTRUMENTS AND RrSK MANAGEMENT (CONTINUED)

(iii) Market risk (Continucd)

(a) Currency risk

Exposure to currency risk

The Company's exposure to foreign currency risk was as follows based on notional amounts:

3Ut2l20l6US$

3Ul2a0t5US$

Trade payables

Cash and cash equivalentGross statemcnt of financial position exposure

186,531

112,603

----2991:l-

936,902303,613

1,240,51s

The following significant exchange rate applied during the year

Average rate Reporting date spot rate2016 2015 3Ut2nU6 3tltzn0ls

I US$ : MVR 15.42 15.42 15.42 15-42

2I EVENTS AF-TERTHE REPORTING DATE

No circumstances have arisen since the reporting date which require adjustments to / or disclosure in

the fi nancial statements.

22 CONTINGENTLIABILITIES

There were no material contingent liabilities which require disclosures in the financial statements as at

the reporting date.

23 DIRECTOR'SRESPONSIBILITY

The board of directors of the Company is responsible for the preparation and presentation of these

financial statements.

24 COMPARATIVE FIGURES

The comparative figures of the financial statements have been reclassified to conform with current

year's classifi cations.

23

A/x.SA,tiSl'lACCI'lFAiiY LTD

c.cEc7i:r1t !

AASANDHA COMPANY LIMITED(INCORPORATED IN THE REPUBLIC OF MALDIVES)NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31ST DECEMBER 2016

25 RELATEDPARTYTRANSACTIONS

Name of the

Related PartyRelationship Nature of the

Transactions

Amount2016

MVR.

Amount2015

Balance

as at

3y12t2016MVR.MVR.

Balance

as at

3y12t2015lvtvR.

1.193,515.812

(772.554.266) 1.534.596.964 1.423.897.738National Social Protection Agency Government Institute Operating Income

Settlement

1,036,809,410

(926,110,184)

Hulhumale Medical Hospital194.942.460

25.1 Transactions with the Key Management Personnel

TheBoardofDirectorsoftheCompanyarethemembersofkeymanagementpersonnel.TheCompany hasmadeapaymentofMVR.586.500/'tothekeymanagement

personnel during the year ended 31" December 2016. (2015: MVR. 546,500/-)

25.2 Collectively, but not individually, significant transactions.

Govemment of Maldives is the major shareholder of the Company. The Company has transactions with entities directly or indirectly controlled b)'the Government of

govemment related entities including but not limited to sales, purchases, rendering ofservices, lease ofassets and use ofpublic utilities.

Govemment Hospital Managed Funds Transferred

by Aasandha Company Limited Settlement

( 14,605,5 1 0)

209.s47,970

1A