Inventurus Knowledge Solutions Ltd. कंपली की लेखा नीति

Mar 31, 2025

1 Background and basis of preparation

1.1    Background

Inventurus Knowledge Solutions Limited (“the Company") is a listed Public Company domiciled in India and is incorporated under the provisions of the Companies Act, 1956 (“the Act"). The Company was converted from Private Limited Company to Public Limited Company on November 4, 2022. Consequent to the change, the name is converted to Inventurus Knowledge Solutions Limited. Necessary forms and submission with registrar of companies are complied with. The company offers a tech enabled healthcare provider enablement platform to US-based healthcare organizations which includes diversified and unique solutions spanning the healthcare value chain that helps US-based healthcare providers operate more effectively and efficiently. The registered office of the Company is located at 801, Building No 5&6 8^th floor, Mindspace Business Park (SEZ), Thane Belapur Road, Airoli, Navi Mumbai - 400 706, Thane, Maharashtra, India.

These standalone financial statements were authorised for issue in accordance with a resolution of the Board of Directors on May 15, 2025.

1.2    Basis of preparation

Statement of Compliance

The financial statements comply, in all material aspects, with Indian Accounting Standards (Ind AS) notified under section 133 of the Companies Act, 2013 (“the Act") read with the Companies (Indian Accounting Standards) Rules, 2015, (‘ I nd AS’) and other relevant provisions of the Act.

Historical cost convention

The financial statements have been prepared on a historical cost basis, except for the following:

•    certain financial assets and liabilities (including derivative instruments) is measured at fair value

•    share-based payments.

All assets and liabilities have been classified as current or non-current as per the Company’s operating cycle and other criteria set out in the Schedule III (Division II) of the Companies Act, 2013. Based on the nature of service and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current-non-current classification of assets and liabilities.

1.3    New and amended standards adopted by the Company

The Ministry of Corporate Affairs vide notification dated 9 September 2024 and 28 September 2024 notified the Companies (Indian Accounting Standards) Second Amendment Rules, 2024 and Companies (Indian Accounting

Standards) Third Amendment Rules, 2024, respectively, which amended/ notified certain accounting standards (see below), and are effective for annual reporting periods beginning on or after April 1, 2024:

•    Insurance contracts - Ind AS 117; and

•    Lease Liability in Sale and Leaseback - Amendments to Ind AS 116

These amendments did not have any material impact on the amounts recognised in prior periods and are not expected to significantly affect the current or future periods.

2.1    Material accounting policies

This note provides a list of material accounting policies adopted in the preparation of these financial statements. These policies have been consistently applied to all the periods presented, unless otherwise stated.

2.1.1    Revenue recognition

The Company offers a tech enabled healthcare provider enablement platform to US-based healthcare organizations which includes diversified and unique solutions spanning the healthcare value chain that helps US-based healthcare providers operate more effectively and efficiently. This includes services where the Company assists the healthcare providers such as hospitals to manage their collection from insurance companies and other services such as managing clinical workflow of physicians. The Company also licences the software to the Customers.

Certain contracts include both licensing of software along with services. In such cases, the Company evaluates the nature of its promises to the customers within the context of the contract and accordingly identifies performance obligations. Such factors includes an assessment of whether these promises are highly interrelated or interdependent, whether the promises significantly modify or customize each other or whether the promises represent a bundle of services that represent combined output for which the customer has contracted.

In case of fixed price contracts, where the contracts include multiple performance obligations, the transaction price will be allocated to each performance obligation based on the stand- alone selling prices.

Revenue from term software licensing contracts is recognized at a point in time when the Company grants the license to the customer. Control is transferred to the customer as soon as the license is granted.

Revenue on time-and-material based contracts are recognized over the period of time as the related services are performed. Revenue is recognised either over a period of time as services are provided to customers or at a point in time when the performance obligation is completed, under the respective Statement of Works (SOWs) executed with

each customer for each service. The revenue recorded reflects the payment that the Company expects to receive in exchange for the services provided. Each SOW defines and details the components of services to be delivered and respective billing mechanisms (which could vary from per person per month fee, a percentage of net collections, per customer per month etc). Certain contracts exist where the period between the transfer of the promised services to the customer and payment by the customer exceeds one year. In such cases, the Company adjusts the transaction price for the time value of money.

If the consideration in a contract includes a variable amount, the Company estimates the amount of consideration to which it will be entitled in exchange for transferring the services to the customer. The variable consideration is estimated at contract inception and constrained until it is highly probable that a significant revenue reversal in the amount of cumulative revenue recognised will not occur when the associated uncertainty with the variable consideration is subsequently resolved. The Company allocates the elements of variable considerations to all the performance obligations of the contract unless there is observable evidence that they pertain to one or more distinct performance obligations.

Unbilled revenue, presented within trade receivables has been recognized considering contractual terms wherein the Company has an unconditional right to consideration before it invoices to customers.

In the case of fixed-price contracts, the customer pays the fixed amount based on a payment schedule. If the services rendered by the Company exceed the payment, a contract asset is recognised. If the payments exceed the services rendered, a contract liability is recognised.

2.1.2 Income taxes

The income tax expense or credit for the year is the tax payable on the current year’s taxable income based on the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses, if any.

The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period in the countries where the Company operates and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation and considers whether it is probable that a taxation authority will accept an uncertain tax treatment. The Company measures its tax balances either based on the most likely amount or the expected value, depending on which method provides a better prediction of the resolution of the uncertainty.

Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred income tax is also not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting profit nor taxable profit (tax loss). Deferred income tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.

Deferred tax assets are recognised for all deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses.

For operations carried out in Special Economic Zones, deferred tax assets or liabilities, if any, have been established for the tax consequences of those temporary differences between the carrying values of assets and liabilities and their respective tax bases that reverse after the tax holiday period expires.

Deferred tax assets include Minimum Alternative Tax (MAT) paid in accordance with the tax laws in India, which gives rise to future economic benefits in the form of availability of set off against future income tax liability. Accordingly, MAT is recognised as deferred tax asset in the balance sheet when the asset can be measured reliably and it is probable that the future economic benefit associated with the asset will be realised.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively.

Deferred tax liabilities are not recognised for temporary differences between the carrying amount and tax bases of investments in subsidiaries where the company is able to control the timing of the reversal of the temporary differences and it is probable that the differences will not reverse in the foreseeable future.

Deferred tax assets are not recognised for temporary differences between the carrying amount and tax bases of investments in subsidiaries where it is not probable that the differences will reverse in the foreseeable future and taxable profit will not be available against which the temporary difference can be utilised.

The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

2.1.3    Impairment

Non-financial assets Tangible and intangible assets

Intangible assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment, or more frequently if events or changes in the circumstances indicate that they might be impaired.

Other assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal and value in use. For the purposes of assessing impairment, assets are compared at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or group of assets (cash-generating units). Non-financial assets that suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting period.

2.1.4    Leases

Leases are recognised as a right-of-use asset and a corresponding liability at the date at which the leased asset is available for use by the Company. Contracts may contain both lease and non-lease components. The Company allocate the consideration in the contract to the lease and non-lease components based on their relative standalone prices.

Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the following lease payments.

a)    fixed payments (including in -substance fixed payments), less any lease incentives receivable

b)    variable lease payment that are based on an index or a rate, initially measured using index or rate as at the commencement date.

c)    amount expected to be payable by the Company under residual value guarantees.

d)    the exercise price of a purchase option if the Company

is reasonably certain to exercise the option and payments of penalties for terminating the lease, if the lease term reflects the Company exercising that options.

Lease payments to be made under reasonably certain extension options are also included in the measurement of the liability. The lease payments are discounted using the interest rate implicit the lease. If the rate cannot be readily determined, which is generally the case for leases in the Company, the lessee’s incremental borrowing rate is used, being the rate that the individual lessee would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in similar economic environment with similar terms, security and conditions. Lease payments are allocated between principal and finance cost. The finance cost is charged to profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period.

To determine the incremental borrowing rate, the Company

’where possible, uses recent third party financing received by the individual lessee as a starting point, adjusted to reflect changes in financing conditions since third party financing was received

’uses a build up approach that starts with a risk free interest rate adjusted for credit risk for leases held by the Company, which does not have recent third party financing and

’makes adjustment specific to the lease, e.g. term, country, currency and security.

Right-of-use assets are measured at cost comprising the following

’the amount of the initial measurement of lease liability

^’any lease payments made at or before the commencement date less any lease incentives received.

’any initial direct costs and restoration cost

Lease liability is remeasured at an incremental borrowing rate and a corresponding adjustment is made to the carrying amount of Right of Use asset.

Right-of-use assets are generally depreciated over the shorter of the asset’s useful life and the lease term on straight-line basis. If the Company is reasonably certain to exercise a purchase option, the right-of-use asset is depreciated over the underlying asset’s useful life.

Payment associated with short-term leases of equipment and all leases of low-value assets are recognised on straightline basis as an expenses in profit or loss. Short term leases with a lease term of 12 months or less. Low value assets comprise IT equipment and small items of office furniture.

2.1.5    Investment in subsidiary

Investment in subsidiary which is of equity in nature is carried at cost less impairment, if any.

2.1.6    Property, plant and equipment

Depreciation methods, estimated useful lives and residual value

Depreciation is calculated using the straight-line method to allocate their cost, net of their residual values, over their estimated useful lives as follows:

Asset Class	Estimated useful Life
Leasehold Improvements	9 years or over the term of lease, whichever is lower
Furniture and Fittings	4 years
Vehicles	4 years
Data processing Equipment	3 years
Office Equipment	4 years

Assets costing ^5,000 or less are fully depreciated in the year of purchase.

The Company uses technical evaluation for determining the useful life of assets, which are different than those specified by Schedule II of the Companies Act, 2013, in order to reflect the actual usage of the assets. The useful life, residual value and the depreciation method are reviewed at least at each financial year end. The residual values are not more than 5% of the original cost of the asset.

An item of PPE is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the assets. Any gain or loss arising on derecognition is determined as the difference between the sales proceeds and the carrying amount of the assets and is recognised in profit or loss. Depreciation on assets purchased / disposed off during the year is provided on pro rata basis with reference to the date of additions / deductions.

2.1.7 Intangible assets

Amortisation Method and Periods

Amortisation is calculated using the straight-line method to allocate their cost, net of their residual values, over their estimated useful lives as follows:

Asset Class	Estimated useful Life
Software	3 years or over the license period whichever is lower
Internally developed intangible assets	3 years

2.1.8    Provisions and Contingent Liabilities

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event for which a reliable estimate can be made of the amount of obligation and it is probable that the Company will be required to settle the obligation. When a provision is measured using cash flows estimated to settle the present obligation its carrying amount is the present value of those cash flows; unless the effect of time value of money is immaterial.

Contingent liabilities are disclosed when the Company has a possible obligation from past events, the existence of which will be confirmed only by occurrence or non occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.

Material contingent liabilities are disclosed in the financial statements unless the possibility of an outflow of economic resources is remote.

2.1.9    Employee benefits

Post-employment obligations

The Company operates the following postemployment schemes:

(a)    defined benefit plans such as gratuity, and

(b)    defined contribution plans such as provident fund

Define benefit plans - Gratuity obligations

The Company provides for gratuity, a defined benefit plan (the “Gratuity Plan") covering eligible employees in India accordance with the Payment of Gratuity Act, 1972 of India. The Gratuity Plan provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee’s salary and the tenure of employment.

The liability recognised in the balance sheet in respect of defined benefit gratuity plans is the present value of the defined benefit obligation at the end of the reporting period. The defined benefit obligation is calculated annually by actuary using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows by reference to yields on government securities at the end of the reporting period that have terms approximating to the terms of the related obligation.

The net interest cost is calculated by applying the discount rate to the balance of the defined benefit obligation. This cost is included in employee benefit expense in the statement of profit and loss.

Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of changes in equity and in the balance sheet. Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognised immediately in profit or loss as past service cost.

Defined contribution plans Provident fund

Contribution towards provident fund for employees is made to the regulatory authorities, where the Company has no further obligations. Such contribution to the provident fund for all employees, are charged to the profit or loss. Such benefits are classified as Defined Contribution Schemes as the Company does not carry any further obligations, apart from the contributions made on a monthly basis. Such contribution to the provident fund for all employees, are charged to the statement of profit and loss as incurred.

Short term obligations

Liabilities for salaries, including non-monetary benefits that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognised at the amounts expected to be paid when the liabilities are settled. Short term employee benefits are recognised in statement of profit and loss in the period in which the related service is rendered. The liabilities are presented as employee benefit payable in the balance sheet.

2.1.10 Share based compensation

The company operates shared based compensation plans that provide for the grant of stock-based awards to its officers and employees, including that of its subsidiary. A stock option gives an employee, the right to purchase common stock of the company at a fixed price for a specific period of time.

The fair value of all options granted is recognised as an employee benefits expense with a corresponding increase in equity. The total amount to be expensed is determined by reference to the fair value of the options granted.

The total expense is recognised over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied. At the end of each period, the entity revises its estimates of the number of options that are expected to vest based on the non-market vesting and service conditions. It recognises the impact of the revision to original estimates, if any, in profit or loss, with a corresponding adjustment to equity.

2.1.11    Rounding of amounts

All amounts disclosed in the financial statements and notes have been rounded off to the nearest Millions as per the requirement of Schedule III, unless otherwise stated.

2.1.12    Exceptional items

An item of income or expenses, pertaining to the ordinary activities of the Company, is classified as an exceptional item, when the size, type or incidence of the item merits separate disclosure in order to provide better understanding of the performance of the Company. Accordingly the same is disclosed in the notes accompanying the financial statements.

2.2 Summary of other accounting policies

This note provides a list of other accounting policies adopted in the preparation of these financial statements. These policies have been consistently applied to all the periods presented, unless otherwise stated.

2.2.1    Financialassetsand financial liabilities - subsequent measurement

Trade payables

These amounts represent liabilities for goods and services provided to the entity prior to the end of financial year which is unpaid. Trade payables are presented as current liabilities unless payment is not due within 12 months after the reporting period. They are recognised initially at the fair value and subsequently measured at amortised cost using the effective interest method.

2.2.2    Contributed Equity

Equity shares are classified as equity.

Incremental costs directly attributable to the issue or re-purchase of equity shares, net of any tax effects, are recognised as a deduction from equity.

2.2.3    Dividends

Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the discretion of the entity, on or before the end of the reporting period but not distributed at the end of the reporting period.

2.2.4    Earning per share

Basic Earnings per Share

Basic earnings per share is calculated by dividing:

•    the profit attributable to owners of the Company

•    by the weighted average number of equity shares outstanding during the financial year, adjusted for bonus elements in equity shares issued during the year.

Diluted Earnings per Share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account:

•    the after tax effect of interest and other financing costs associated with dilutive potential equity shares, and

•    the weighted average number of additional equity shares that would have been outstanding assuming the conversion of all dilutive potential equity shares or options.

2.2.5    Statement of Cash Flows

Cash flows are reported using the indirect method, whereby the profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated. For the purposes of the statement of cash flow, cash and cash equivalents is net of outstanding bank overdrafts which are integral part of cash management activities. In the balance sheet, bank overdrafts are shown within borrowings in current liabilities.

2.2.6    Non derivative financial instruments

Financial assets and liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument. Financial assets and liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value measured on initial recognition of financial asset or financial liability.

A Financial assets and financial liabilities -subsequent measurement

(i)    Financial assets at amortised cost

Financial assets are subsequently measured at amortised cost if these financial assets are held within a business whose objective is to hold these assets in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

(ii)    Financial assets at fair value through other comprehensive income

Financial assets are measured at fair value through other comprehensive income if these financial assets are held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest

on the principal amount outstanding. For investments in equity instruments that are not held for trading, the Company’s management has made an irrevocable election to present fair value gains and losses on equity investments in other comprehensive income. In such cases, there is no subsequent reclassification of fair value gains and losses to profit or loss following the derecognition of the investment.

(iii)    Financial assets at fair value through profit or loss

Financial assets are measured at fair value through profit or loss unless it is measured at amortised cost or at fair value through other comprehensive income. The transaction costs directly attributable to the acquisition of financial assets and liabilities at fair value through profit and loss are immediately recognised in statement of profit and loss.

(iv)    Cash and cash equivalents

The Company considers all highly liquid financial instruments, which are readily convertible into known amounts of cash that are subject to an insignificant risk of change in value and having original maturities of three months or less from the date of purchase, to be cash equivalents. Cash and cash equivalents consist of balances with banks which are unrestricted for withdrawal and usage. For the purposes of the statement of cash flow, cash and cash equivalents is net of outstanding working capital loan which are integral part of cash management activities. In the balance sheet, working capital loans are shown within borrowings in current liabilities.

Remittance in transit includes the money received from customers in USD and temporarily held in the Nostro account with the bank. The amount is credited to the Company’s bank account on submission of relevant documents, which is generally completed within 5 to 6 days.

(v)    Trade receivables

Trade receivables are amounts due from customers for goods sold or services performed in the ordinary course of business. Trade receivables are recognised initially at the amount of consideration that is unconditional unless they contain significant financing components, when they are recognised at fair value. The entity holds the trade receivables with the objective to collect the contractual cash flows and therefore measures them subsequently at amortised cost using the effective interest method, less loss allowance.

(vi)    Financial liabilities

Subsequent to initial recognition, these liabilities are measured at amortised cost using the effective interest method.

B Derecognition of financial assets

A financial asset is derecognised only when:

a)    the entity has transferred the rights to receive cash flows from the financial assets or

b)    retains the contractual right to receive the cash flows of the financial asset, but assumes a contractual obligation to pay the cash flows to one or more recipients.

Where the entity has transferred an asset, the entity evaluates whether it has transferred substantially all risks and rewards of ownership of financial assets. In such cases, financial asset is derecognised.

C Derecognition of financial liabilities

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit or loss.

D Income recognition Interest income

Interest income from financial assets at amortised cost is calculated using the effective interest method is recognised in the statement of profit and loss as part of other income.

Dividends

Dividends are recognised as other income in profit or loss, when the right to receive payment is established.

2.2.7    Impairment

Financial assets (other than at fair value)

The entity assesses on a forward looking basis the expected credit losses associated with its assets carried at amortised cost. The impairment methodology applied depends on whether there has been a significant increase in credit risk. The Company applies simplified approach which requires lifetime expected loses for all the contracts assets and/or all trade receivables to be recognised from initial recognition of the receivable. For all other financial assets, expected credit losses are measured at an amount equal to the 12-month expected credit losses or at an amount equal to the life time expected credit losses if the credit risk on the financial asset has increased significantly since initial recognition.

2.2.8    Property, plant and equipment

Property, plant and equipment (“PPE") are stated at cost of acquisition less accumulated depreciation and impairment loss, if any. Cost comprises of the purchase price including import duties and non-refundable taxes and directly

attributable expenses incurred to bring the asset to the location and condition necessary for it to be capable of being operated in the manner intended by management.

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised when replaced. All other repairs and maintenance are charged to profit or loss during the reporting period in which they are incurred.

2.2.9 Intangible assets

a)    Acquired Intangible Assets

Intangible assets with finite useful lives that are acquired are initially recognised at cost in case of separately acquired assets and at fair value in case of acquisition in business combination. Subsequent to initial recognition, intangible assets are reported at cost less accumulated amortisation and impairment loss, if any. Amortisation is recognised on a straight-line basis over their estimated useful lives.

Amortisation method, estimated useful lives and residual values are reviewed at the end of each year and adjusted prospectively where appropriate.

An intangible asset is derecognised on disposal or when no future economic benefits are expected to arise from the continued use of the assets. Any gain or loss arising on derecognition is determined as the difference between the sales proceeds and the carrying amount of the assets and is recognised in profit or loss.

b)    Internally Developed Intangible Assets -Computer Software

Development costs that are directly attributable to the design and testing of identifiable and unique software products controlled by the Company are recognised as intangible assets when the following criteria are met:

a)    it is technically feasible to complete the software so that it will be available for use

b)    management intends to complete the software and use or sell it

c)    there is ability to use or sell the software

d)    it can be demonstrated how the software will generate probable future economic benefits

e)    adequate technical, financial and other resources to complete the development and to use or sell the software are available, and

f)    the expenditure attributable to the software during its development can be reliably measured.

Directly attributable costs that are capitalised of the software include employee costs and an appropriate portion of relevant overheads.

Capitalised development costs are recorded as intangible assets and amortised from the point at which the asset is available for use.

c) Research and Development Costs

Research and development expenditure that do not meet the criteria in (b) above are recognised as an expenses as incurred. Development costs previously recognised as an expense are not recognised as an asset in a subsequent period.

2.2.10    Borrowings

Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in profit or loss over the period of the borrowings using the effective interest method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down.

2.2.11    Finance Cost

Borrowing costs include exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost.All borrowing costs are charged to the Statement of Profit and Loss for the period for which they are incurred.

2.2.12    Derivatives and hedging activities

Derivatives are only used for economic hedging purposes and not as a speculative instruments. They are presented as current assets or liabilities to the extent they are expected to be settled within 12 months after the end of the reporting period.

Derivatives are initially recognised at fair value on date a derivative contract is entered into and are subsequently remeasured to their fair value at the end of each reporting period. The accounting for subsequent changes in fair value depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged.

The Company designates certain derivatives as hedges of a particular risk associated with the cash flows of highly probable forecast transactions (cash flow hedges).

The Company documents at the inception of the transaction the relationship between hedging instruments and hedged items, as well as its risk management objectives and strategy for undertaking various hedging transactions. The Company also documents the nature of the risk being hedged and how

the Company will assess whether the hedging relationship meets the hedge effectiveness requirements (including its analysis of the sources of hedge ineffectiveness and how it determines the hedge ratio).

The full fair value of a hedging derivative is classified as a non-current asset or liability when the remaining maturity of the hedged item is more than 12 months; it is classified as a current asset or liability when the remaining maturity of the hedged item is less than 12 months.

The Company uses forward contracts to hedge forecast transactions. The Company designates the full fair value of the forward contract as the hedging instrument.

Cash flow hedges that qualify for hedge accounting

The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognised in other comprehensive income and accumulated under the heading cash flow hedging reserve. The gain or loss relating to the ineffective portion is recognised immediately in the profit or loss, and is included within other expenses or other income.

Amounts previously recognised in other comprehensive income and accumulated in equity are reclassified to the profit or loss in the periods when the hedged item affects the statement of profit and loss, in the same line as the recognised hedged item.

Hedge accounting is discontinued when the hedging instrument expires, or is sold or terminated, or when a hedge no longer meets the criteria for hedge accounting. Any gain or loss recognised in other comprehensive income and accumulated in equity at that time remains in equity and is recognised when the forecast transaction is ultimately recognised in the profit or loss. When a forecast transaction is no longer expected to occur, the gain or loss accumulated in equity is recognised immediately in the profit or loss.

2.2.13    Offsetting Financial Instruments

Financial assets and liabilities are offset and the net amount is reported in the balance sheet when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis, or realise the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Company or the counterparty.

2.2.14    Employee benefits

Compensated Absences

Accumulated compensated absences, which are expected to be availed or encashed within 12 months from the end of the year are recognised as undiscounted liability at the balance sheet date and treated as short term employee benefits. The obligation towards the same is measured at

the expected cost of accumulating compensated absences as the additional amount expected to be paid as a result of the unused entitlement as at the year end. Material compensated absences which are not expected to occur within twelve months after the end of the period in which the employee renders the related services are recognised as an actuarially determined liability at the present value of the defined benefit obligation at the balance sheet date.

2.2.15    Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker (“CODM"). The CODM is responsible for allocating resources and assessing performance of the operating segments. Chief executive officer (“"CEO"") is identified as the CODM for the Company. Wherever relevant, the company will aggregate multiple operating segments into a single segment if it aligns with Indian Accounting Standard 108’s core principle, if they share similar economic characteristics and the segments are similar in each of the following respects: services provided, nature of delivery of services, customer types, methods used to provide their services and regulatory environment, ensuring consistency in segment reporting.

The Company operates in one reportable segment i.e. “’’Healthcare””. Refer note 39 for segment information presented.

2.2.16    Foreign currency translation and transactions

Functional and presentation currency

Items included in the financial statements of the Company are measured using the currency of the primary economic environment in which the entity operates (‘the functional currency’). The financial statements are presented in Indian currency (^ or ^ or ^), which is the Company’s functional and presentation currency.

Foreign currency transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at the period end exchange rates are recognised in profit or loss. They are deferred in equity if they relate to qualifying cash flow hedges and qualifying net investment hedges or are attributable to part of the net investment in a foreign operation. A monetary item for which settlement is neither planned nor likely to occur in the foreseeable future is considered as a part of the entity’s net investment in that foreign operation.

Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Translation differences on assets and liabilities carried at fair value

are reported as part of the fair value gain or loss. For example, translation differences on non-monetary assets and liabilities such as equity instruments held at fair value through profit or loss are recognised in profit or loss as part of the fair value gain or loss and translation differences on non-monetary assets such as equity investments classified as at FVOCI are recognised in other comprehensive income.

2.2.17 Critical accounting judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts of revenue, expense, assets, liabilities, equity and disclosures relating to contingent liabilities on the date of the financial statements. Actual results could differ from those estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revision to accounting estimates is recognised in the period in which the estimate is revised and in any future period affected.

Key source of estimation uncertainty which may cause material adjustments:

This note provides an overview of the areas that involved a higher degree of judgement or complexity, and of items which are more likely to be materially adjusted due to estimates and assumptions turning out to be different than those originally assessed. The areas involving critical estimates or judgements are:

-    Significant judgement on Identification of performance obligation and recognition of revenue

Other estimates and judgements

-    Estimation of defined benefit obligation (note 17)

-    Recognition of deferred tax assets (note 21)

-    Fair value of share-based payments (note 35)

-    Fair value of derivatives (note 15)

-    Estimation of provision and contingent liability

-    Determination of lease term and discount rate (note 3(b))

Estimates and judgements are continually evaluated. They are based on historical experience and other factors, including expectations of future events that may have a financial impact on the Company and that are believed to be reasonable under the circumstances.