Jupiter Life Line Hospitals Ltd. कंपली की लेखा नीति

Mar 31, 2025

C. Summary of Material Accounting Policies:

1. Property, plant and equipment

Property, plant and equipment are stated at cost,
net of accumulated depreciation and impairment
losses, if any. The cost comprises purchase price,
taxes, duties (including import duties), freight and
any directly attributable cost of bringing the asset
to its working condition for the intended use.
Any trade discounts and rebates are deducted in
arriving at the purchase price.

Each part of an item of property, plant and
equipment with a cost that is significant in
relation to the total cost of the item is depreciated
separately. This applies mainly to components
for machinery. When significant parts of plant
and equipment are required to be replaced
at intervals, the Company depreciates them
separately based on their specific useful lives.
Likewise, when a major inspection is performed,
its cost is recognised in the carrying amount of
the plant and equipment as a replacement if the
recognition criteria are satisfied. All other repair
and maintenance costs are recognised in profit or
loss as incurred.

Subsequent expenditure related to an item of
property, plant and equipment is added to its book
value only if it increases the future benefits from
its previously assessed standard of performance.
All other expenses on existing property, plant
and equipment, including day-to-day repair and
maintenance expenditure and cost of replacing
parts, are charged to the statement of profit and
loss for the period during which such expenses
are incurred.

Borrowing costs directly attributable to acquisition
of property, plant and equipment which take
substantial period of time to get ready for its
intended use are also included to the extent they

relate to the period till such assets are ready to be
put to use.

Advances paid towards the acquisition of property,
plant and equipment outstanding at each balance
sheet date is classified as capital advances under
other non-current assets.

An item of property, plant and equipment
and any significant part initially recognised
is de-recognised upon disposal or when no
future economic benefits are expected from
its use or disposal. Any gain or loss arising on
de recognition of the asset (calculated as the
difference between the net disposal proceeds and
the carrying amount of the asset) is included in
the income statement when the Property, plant
and equipment is de-recognised.

Capital work-in-progress includes cost of
Property, plant and equipment under installation/
under development as at the balance sheet date
less impairment losses, if any.

2. Depreciation on property, plant and equipment
(PPE)

Depreciation on property, plant and equipment
is calculated on a straight-line method over the
estimated useful lives of the assets prescribed in
schedule II of the Companies Act 2013. However,
in some cases, the management basis its past
experience/technical assessment made by the
independent valuation expert engaged by the
Company, has estimated the useful lives, which
is at variance with the life prescribed in Part C
of Schedule II to the Act and has accordingly,
depreciated the assets over such useful lives. The
Company has used the following useful life to
provide depreciation on its property, plant and
equipment.

The estimated useful lives, residual values and
depreciation method are reviewed periodically,
at least at each financial year-end, with the
effect of any changes in estimate accounted for
on a prospective basis. On the basis of technical
assessment made by the management, it believes
that useful life given above are realistic and reflect
fair approximation of the period over which the
assets are likely to be used.

3. I ntangible assets and intangible assets under
development

Intangible assets acquired separately are
measured on initial recognition at cost. Following
initial recognition, they are carried at cost less
accumulated amortisation and accumulated
impairment losses, if any. Intangible assets with
finite lives are amortised on a straight-line basis
over their useful economic lives and assessed for
impairment whenever there is an indication that
their carrying amount may not be recovered. The
amortisation period and the amortisation method
for an intangible asset with a finite useful life is
reviewed periodically.

Gains or losses arising from de-recognition of an
intangible asset are measured as the difference
between the net disposal proceeds and the
carrying amount of the asset and are recognised
in the statement of profit and loss when asset is
derecognised.

Development costs incurred on internally
generated intangible assets, not ready for
use are capitalised as intangible assets under
development.

4. Borrowing costs

Borrowing cost includes interest, commitment
charges, brokerage, underwriting costs, discounts/
premiums, financing charges, exchange difference
to the extent they are regarded as interest costs
and all ancillary / incidental costs incurred in
connection with the arrangement of borrowing.
Borrowing costs which are directly attributable to
acquisition / construction of qualifying assets that
necessarily takes a substantial period of time to
get ready for its intended use are capitalised as a
part of cost pertaining to those assets. All other
borrowing costs are recognised as expense in the
period in which they are incurred.

The capitalisation of borrowing costs commences
when the Company incurs expenditure for the
asset, incurs borrowing cost and undertakes
activities that are necessary to prepare the asset
for its intended use or sale. The capitalisation of
borrowing costs is suspended during extended
periods in which active development of a
qualifying asset is suspended. The capitalisation
of borrowing costs ceases when substantially all
the activities necessary to prepare the qualifying
asset for its intended use.

5. Impairment of Property, plant and equipment
(PPE)

At the end of each reporting period, the Company
reviews the carrying amounts of its PPE and other
intangible assets to determine whether there is
any indication that these assets have suffered an
impairment loss. If any such indication exists, the
recoverable amount of the asset is estimated in
order to determine the extent of the impairment
loss. Where it is not possible to estimate the
recoverable amount of an individual asset, the
Company estimates the recoverable amount of
the cash-generating unit (CGU) to which the asset
belongs. When the carrying amount of an asset
or CGU exceeds its recoverable amount, the asset
is considered impaired and is written down to its
recoverable amount. The resulting impairment
loss is recognised in the Statement of Profit and
Loss.

The recoverable amount is the higher of fair value
less costs to sell and value in use. In assessing
value in use, the estimated future cash flows are
discounted to their present value using a pre¬
tax discount rate that reflects current market
assessments of the time value of money and the
risks specific to the asset. In determining fair value
less costs of disposal, recent market transactions
are taken into account. If no such transactions can
be identified, an appropriate valuation model is
used.

Where an impairment loss subsequently
reverses, the carrying amount of the asset or
CGU is increased to the revised estimate of its
recoverable amount, but so that the increased
carrying amount does not exceed the carrying
amount that would have been determined had no
impairment loss been recognised for the asset or
CGU in prior years. A reversal of an impairment
loss is recognised in the Statement of Profit and
Loss.

6. Inventories

Inventories of drugs, consumables, surgical items,
and stores & spares are valued at lower of cost
and net realisable value. Cost includes the cost
of purchase, duties, taxes (other than those
recoverable from tax authorities), inward freight
and other cost incurred in bringing the inventories
to their present location and condition. Cost is
determined on first-in first-out ("FIFO") basis.

Net realisable value is the estimated selling price
in the ordinary course of business, less estimated
costs necessary to make the sale.

Hotel division consists of food, beverages, stores
and operating supplies which are all valued at
cost or net realisable value, whichever is lower.

7. Revenue recognition

The Company earns revenue primarily by
providing healthcare services, sale of drugs and
medical consumables. Other sources of revenue
include medical service agreements, clinical trials,
sponsorship etc. It also earns from room revenue,
food and beverage sale and banquet services
revenue for its hotel division.

(i) Revenue from Contracts with customers

Revenue from contracts with customers is
recognised when control of the goods or
services are transferred to the customer at
an amount that reflects the consideration
to which the Company expects to be
entitled in exchange for those goods or
services. Revenue is measured based on the
transaction price, which is the consideration,
adjusted for discounts and other credits,
if any, as specified in the contract with
the customer. Goods and services tax is
not received by the Company on its own
account. Rather, it is tax collected by the
seller on behalf of the government.

Revenue is usually recognised when it is
probable that economic benefits associated
with the transaction will flow to the entity,
amount of revenue can be measured reliably
and entity retained neither ownership nor
effective control over the goods sold or
services rendered.

(ii) Revenue from Healthcare services

The Healthcare services income include
revenue generated from outpatients, which
mainly consist of activities for physical

examinations, treatments, surgeries and tests,
as well as that generated from inpatients,
which mainly consist of activities for clinical
examinations and treatments, surgeries, and
other fees such as room charges, and nursing
care. The performance obligations for this
stream of revenue include food & beverage,
accommodation, surgery, medical/clinical
professional services, supply of equipment,
investigation and supply of pharmaceutical
and related products.

The patient is obligated to pay for
healthcare services at amounts estimated
to be receivable based upon the Company''s
standard rates or at rates determined
under reimbursement arrangements.
The reimbursement arrangements are
generally with third party administrators.
The reimbursement is also made through
national, international or local government
programmes with reimbursement rates
established by statute or regulation or
through a memorandum of understanding.
Revenue is recognised at the transaction
price when each performance obligation is
satisfied at a point in time when inpatient/
outpatients has actually received. Revenue
from health care patients, third party
payers and other customers are billed at
our standard rates net of contractual or
discretionary allowances, discounts or
rebates to reflect the estimated amounts to
be receivable from these payers.

(iii) Revenue from Sale of Pharmaceutical
products

Revenue from sale of pharmacy goods is
recognised at a point in time when control of
the goods is transferred to the customer, and
no significant uncertainty exists regarding
the amount of the consideration that will
be derived from the sale of the goods and
regarding its collection. The amount of
revenue recognised is net of sales returns,
taxes and duties, wherever applicable.

(iv) Revenue from Hotel

Revenue from hotel division includes room
revenue, food and beverage sale and banquet
services which is recognised once the rooms
are occupied, food and beverages are sold
and banquet services have been provided as
per the contract with the customer.

(v) Other Services rendered

I ncome from other services like sponsorship
income, education income, clinical trials and
other ancillary activities is recognised based
on the terms of the contract and when it is
probable that economic benefits associated
with the transaction will flow to the entity
and amount of revenue can be measured
reliably.

(vi) Rental Income

Rental income arising from operating leases
and licences is accounted as per their
respective terms of contract and is included
in operating revenue in the statement of
profit or loss due to its operating nature.

The Company also earn rental income from
its hotel division.

(vii) Other Income

I nterest income from a financial asset is
recognised when it is probable that the
economic benefits will flow to the Company
and the amount of income can be measured
reliably. Interest income is accrued on a
timely basis, by reference to the principal
outstanding and at the effective interest rate
applicable.

Dividend income is recognised when the
Company''s right to receive dividend is
established by the reporting date. Dividend
income is included under the head "other
income" in the statement of profit and loss.

I ncome from Partnership firms is recognised
based on audited financials of the firms in
which the Company is a partner to the extent
of the percentage of capital contributed by
the Company.

8. Government Grant

Grants from the government are recognised at
their fair value when there is reasonable assurance
that the grant will be received and the Company
will comply with all attached conditions. When the
grant relates to a revenue item, it is recognised
in statement of profit and loss on a systematic
basis over the periods in which the related costs
are expensed. The grant can either be presented
separately or can deduct from related reported
expense. Government grant relating to capital
assets are recognised initially as deferred income
and are credited to statement of profit and loss

on a straight-line basis over the expected lives
of the related asset and presented within other
operating income.

9. Employee Benefits

Short term employee benefits

Employee benefits payable wholly within twelve
months of receiving services are classified as
short-term employee benefits. These benefits
include salary and wages, bonus and exgratia. The
undiscounted amount of short-term employee
benefits to be paid in exchange for employee
services is recognised as an expense as the related
service is rendered by the employees.

Post employment benefits

The Company provides the following post
employment benefits:

i) Defined benefit plans such as gratuity; and

ii) Defined contributions plan such as provident
fund.

Defined contribution plans: A defined
contribution plan is a post-employment benefit
plan under which an entity pays specified
contributions to separate entity and has no
obligation to pay any further amounts. The
Company makes specified obligations towards
employee provident fund to Government
administered provident fund scheme which is
a defined contribution plan. The Company''s
contributions are recognised as an expense in the
statement of profit and loss during the period in
which the employee renders the related service.
Defined benefit plans: The Company''s gratuity
benefit scheme is a defined benefit plan. The
Company''s net obligation in respect of a defined
benefit plan is calculated by estimating the
amount of future benefit that employees have
earned and returned for services in the current
and prior periods; that benefit is discounted to
determine its present value. The calculation of
Company''s obligation under the plan is performed
periodically by an independent qualified 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 market yields
at the end of the reporting period on government
bonds that have terms approximating to the
terms of the related obligation. The net interest
cost is calculated by applying the discount

rate to the net balance of the defined benefit
obligation and the fair value of plan assets. This
cost is included in employee benefit expense in
the consolidated 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.

Compensated Absences

The employees can carry-forward a portion of
the unutilised accrued compensated absences
and utilise it in future service periods or receive
cash compensation as per Company policy upon
accumulation of minimum number of days or on
termination of employment. The Company makes
provision for compensated absences based on
an independent actuarial valuation carried out at
the end of the year. Actuarial gains and losses are
recognised in the Statement of Profit and Loss.

10. Income Taxes

Tax expense comprises deferred tax and current
tax expenses. Income tax expense is recognised
in statement of profit and loss except to the
extent that it relates to equity, in which case it
is recognised in equity or other comprehensive
income.

Current Income Tax

Current income tax assets and liabilities are
measured at the amount expected to be recovered
from or paid to the taxation authorities in
accordance with the Income Tax Act, 1961 and the
Income Computation and Disclosure Standards
("ICDS") enacted in India by using tax rates and
tax laws that are enacted or substantively enacted,
at the reporting date.

Current income tax relating to items recognised
outside profit or loss is included either in other
comprehensive income or in equity depending
on the recognition of underlying transaction.
Management periodically evaluates positions
taken in the tax returns with respect to situations
in which applicable tax regulations are subject to
interpretation and establishes provisions where
appropriate.

Deferred Income Tax

Deferred income tax is recognised using the
balance sheet approach, deferred tax is recognised
on temporary differences at the balance sheet

date between the tax bases of assets and liabilities
and their carrying amounts for financial reporting
purposes at the reporting date, except when
the deferred income tax arises from the initial
recognition of goodwill or an asset or liability in
a transaction that is not a business combination
and affects neither accounting nor taxable profit
or loss at the time of the transaction.

Deferred income tax assets are recognised for all
deductible temporary differences, carry forward
of unused tax credits and unused tax losses, to the
extent that it is probable that taxable profit will be
available against which the deductible temporary
differences, and the carry forward of unused tax
credits and unused tax losses can be utilised.

The carrying amount of deferred income tax
assets is reviewed at each reporting date and
reduced to the extent that it is no longer probable
that sufficient taxable profit will be available to
allow all or part of the deferred income tax asset
to be utilised. Unrecognised deferred tax assets
are re-assessed at each reporting date and are
recognised to the extent that it has become
probable that future taxable profits will allow the
deferred tax asset to be recovered.

Deferred income tax assets and liabilities are
measured at the tax rates that are expected to
apply in the period when the asset is realised or
the liability is settled, based on tax rates (and tax
laws) that have been enacted or substantively
enacted at the reporting date.

Deferred tax assets and deferred tax liabilities are
offset if a legally enforceable right exists to set
off current tax assets against current tax liabilities
and the deferred taxes relate to the same taxable
entity and the same taxation authority.

11. Earnings per share

Basic earnings per share is calculated by dividing
the net profit or loss for the period attributable to
equity shareholders (after deducting attributable
taxes and exceptional items, if any) by the weighted
average number of equity shares outstanding
during the period. The weighted average number
of equity shares outstanding during the period is
adjusted for events such as bonus issue, bonus
element in a rights issue, share split, and reverse
share split (consolidation of shares) that have
changed the number of equity shares outstanding,
without a corresponding change in resources.

Diluted earnings per share is computed by
dividing the net profit/(loss) after tax (including
the effect of exceptional items, if any) as adjusted
for dividend, interest and other charges to
expense or income (net of any attributable taxes)
relating to the dilutive potential equity shares,
by the weighted average number of equity
shares considered for deriving basic earnings
per share and the weighted average number of
equity shares which could have been issued on
the conversion of all dilutive potential equity
shares. Potential equity shares are deemed to be
dilutive only if their conversion to equity shares
would decrease the net profit per share from
continuing ordinary operations. Potential dilutive
equity shares are deemed to be converted as at
the beginning of the period, unless they have
been issued at a later date. The number of equity
shares and potentially dilutive equity shares are
adjusted for share splits/reverse share splits and
bonus shares, as appropriate.

12. Cash & Cash Equivalents and cash flows

Cash and cash equivalents include cash in hand,
demand deposits with banks and other short-term
highly liquid investments with original maturities
of three months or less.

Cash flows are reported using the indirect method,
whereby 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.

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Mar 31, 2024

NOTE 1: SIGNIFICANT ACCOUNTING POLICIESA. Corporate information

Jupiter Life Line Hospitals Limited (JLHL) is a public limited company incorporated on 18^th November, 2002 (CIN: U85100MH2002PLC137908) and has its registered office at No.1004, 360 Degree Business Park, Near R Mall, L.B.S. Marg, Mulund (W), Mumbai 400080. During the year, the Company has completed its Initial Public Offer (''IPO'') process and equity shares of the Company got listed with the BSE Limited and National Stock Exchange of India Limited on 18^th September, 2023. The Company is a prominent multi-speciality tertiary and quaternary healthcare service provider in the Mumbai metropolitan area and western India with total operational bed capacity of 961 across three hospitals located in Thane, Pune and Indore under the "Jupiter'' Brand. The Company is constructing a new multispeciality hospital in Dombivali, Maharashtra with potential capacity of 500 beds and It has also taken a land on lease for setting up its second hospital in Pune with potential capacity of 500 beds. The Company is also running Fortune Park Lake City Hotel in Thane for promoting medical tourism.

B. Basis of Preparation of Financial Statement(i) Statement of Compliance

These standalone financial statements have been prepared in accordance with the Indian Accounting Standards (Ind AS) as prescribed under section 133 of the Companies Act, 2013 read with the Companies (Indian Accounting Standard) Rule, 2015, as amended from time to time and other relevant provision of the Act.

The financial statements of the Company for the year ended 31^st March, 2024 are authorised for issue by the Board of Directors of the Company at the meeting held on 10^th May, 2024.

(ii) Basis of preparation and Presentation

The financial statements have been prepared on going concern basis under historical cost convention considering the applicable provisions of Companies Act 2013, except for the following material items that have been measured at fair value as required by the relevant Ind AS. Historical cost is generally based on the fair value of the consideration given in exchange for goods and services at the time of initial recognition.

a) Certain financial assets/liabilities measured at fair value

b) Employees defined benefit plan as per actuarial valuation

c) Any other item as specifically stated in the accounting policy

The preparation of financial statements requires management to make estimates, judgements and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities and reported amounts of revenues and expenses. Appropriate changes in estimates are made as management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which changes are made and, if material, their effects are disclosed in the notes to the standalone financial statements. The Company has uniformly applied the accounting policies during the year presented. The standalone financial statements are presented in Indian Rupees (T) which is the functional currency of the Company. All amount have been rounded to nearest Millions, unless otherwise stated.

The significant accounting policies adopted in the preparation the standalone financial statement have been discussed below.

C. Summary of significant accounting policies:1. Property, plant and equipment

Property, plant and equipment are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. The cost comprises purchase price, taxes, duties (including import duties), freight and any directly attributable cost of bringing the asset to its working condition for the intended use. Any trade discounts and rebates are deducted in arriving at the purchase price. Each part of an item of property, pl ant and equipment with a cost that is significant in relation to the total cost of the item is depreciated separately. This applies mainly to components for machinery. When significant parts of plant and equipment are required to be replaced at intervals, the Company depreciates them separately based on their specific useful lives. Likewise, when a major inspection is performed, its cost is recognised in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied. All other repair and maintenance costs are recognised in profit or loss as incurred.

Subsequent expenditure related to an item of property, plant and equipment is added to its book value only if it increases the future benefits from its previously assessed standard of performance. All other expenses on existing property, plant and equipment, including day-to-day repair and maintenance expenditure and cost of replacing parts, are charged to the statement of profit and loss for the period during which such expenses are incurred.

Borrowing costs directly attributable to acquisition of property, plant and equipment which take substantial period of time to get ready for its intended use are also included to the extent they relate to the period till such assets are ready to be put to use.

Advances paid towards the acquisition of property, plant and equipment outstanding at each balance sheet date is classified as capital advances under other non-current assets.

An item of property, plant and equipment and any significant part initially recognised is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on de recognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the income statement when the Property, plant and equipment is derecognised.

Capital work-in-progress includes cost of Property, plant and equipment under installation / under development as at the balance sheet date less impairment losses, if any.

2. Depreciation on property, plant and equipment(PPE)

Depreciation on property, plant and equipment is calculated on a straight-line method over the estimated useful lives of the assets prescribed in schedule II of the Companies Act 2013. However, in some cases, the management basis its past experience/technical assessment made by the independent valuation expert engaged by the Company, has estimated the useful lives, which is at variance with the life prescribed in Part C of Schedule II to the Act and has accordingly, depreciated the assets over such useful lives. The estimated useful lives, residual values and depreciation method are reviewed periodically, at least at each financial year-end, with the effect of any changes in estimate accounted for on a prospective basis. The Company has used the

following useful life to provide depreciation on its property, plant and equipment.

Category of Assets	Useful life (years)
Buildings	60
Plant and machinery:
Medical equipment & accessories	13
Other plant & machinery	15
Office equipment	05
Furniture & fittings	10
Computers:
End user devices	03
Servers and networks	03
Software	05
Vehicles	08
Wind Power generator	22

3. I ntangible assets and intangible assets under development

Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, they are carried at cost less accumulated amortisation and accumulated impairment losses, if any. Intangible assets with finite lives are amortised on a straight-line basis over their useful economic lives and assessed for impairment whenever there is an indication that their carrying amount may not be recovered. The amortisation period and the amortisation method for an intangible asset with a finite useful life is reviewed periodically.

Gains or losses arising from de-recognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the statement of profit and loss when asset is derecognised.

Development costs incurred on internally generated intangible assets, not ready for use are capitalised as intangible assets under development.

4. Borrowing costs

Borrowing cost includes interest, commitment charges, brokerage, underwriting costs, discounts / premiums, financing charges, exchange difference to the extent they are regarded as interest costs and all ancillary / incidental costs incurred in connection with the arrangement of borrowing. Borrowing costs which are directly attributable to acquisition / construction of qualifying assets that necessarily takes a substantial period of time to get ready for its intended use are capitalised as a

part of cost pertaining to those assets. All other borrowing costs are recognised as expense in the period in which they are incurred.

The capitalisation of borrowing costs commences when the Company incurs expenditure for the asset, incurs borrowing cost and undertakes activities that are necessary to prepare the asset for its intended use or sale. The capitalisation of borrowing costs is suspended during extended periods in which active development of a qualifying asset is suspended. The capitalisation of borrowing costs ceases when substantially all the activities necessary to prepare the qualifying asset for its intended use.

5. Impairment of Property, plant and equipment

At the end of each reporting period, the Company reviews the carrying amounts of its PPE and other intangible assets to determine whether there is any indication that these assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. Where it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit (CGU) to which the asset belongs. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. The resulting impairment loss is recognised in the Statement of Profit and Loss. The recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs of disposal, recent market transactions are taken into account. If no such transactions can be identified, an appropriate valuation model is used.

Where an impairment loss subsequently reverses, the carrying amount of the asset or CGU is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset or CGU in prior years. A reversal of an impairment loss is recognised in the Statement of Profit and Loss.

6. Inventories

Inventories of drugs, consumables, surgical items, and stores & spares are valued at lower

of cost and net realisable value. Cost includes the cost of purchase, duties, taxes (other than those recoverable from tax authorities) and other cost incurred in bringing the inventories to their present location and condition. Cost is determined on first-in first-out ("FIFO") basis.

Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs necessary to make the sale.

Hotel division consists of consumable items which are all valued at cost or net realisable value, whichever is lower.

7. Revenue recognition

The Company earns revenue primarily by providing healthcare services, sale of drugs and medical consumables. Other sources of revenue include medical service agreements, clinical trials, sponsorship etc. It also earns from room revenue, food and beverage sale and banquet services revenue for its hotel division.

(i) Revenue from contracts with customers

Revenue from contracts with customers is recognised when control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. Revenue is measured based on the transaction price, which is the consideration, adjusted for discounts and other credits, if any, as specified in the contract with the customer. Goods and services tax is not received by the Company on its own account. Rather, it is tax collected by the seller on behalf of the government.

Revenue is usually recognised when it is probable that economic benefits associated with the transaction will flow to the entity, amount of revenue can be measured reliably and entity retained neither ownership nor effective control over the goods sold or services rendered.

(ii) Revenue from healthcare services

The Healthcare services income include revenue generated from outpatients, which mainly consist of activities for physical examinations, treatments, surgeries and tests, as well as that generated from inpatients, which mainly consist of activities for clinical examinations and treatments, surgeries, and other fees such as room charges, and nursing care. The performance obligations for this stream of revenue include food & beverage, accommodation, surgery, medical/clinical professional services, supply of equipment, investigation and supply of pharmaceutical and related products.

The patient is obligated to pay for healthcare services at amounts estimated to be receivable based upon the Company''s standard rates or at rates determined under reimbursement arrangements. The reimbursement arrangements are generally with third party administrators. The reimbursement is also made through national, international or local government programs with reimbursement rates established by statute or regulation or through a memorandum of understanding.

Revenue is recognised at the transaction price when each performance obligation is satisfied at a point in time when inpatient/outpatients has actually received. Revenue from health care patients, third party payers and other customers are billed at our standard rates net of contractual or discretionary allowances, discounts or rebates to reflect the estimated amounts to be receivable from these payers.

(iii) Revenue from sale of pharmaceutical products

Revenue from sale of pharmacy goods is recognised at a point in time when control of the goods is transferred to the customer, and no significant uncertainty exists regarding the amount of the consideration that will be derived from the sale of the goods and regarding its collection. The amount of revenue recognised is net of sales returns, taxes and duties, wherever applicable.

(iv) Other Services rendered

Income from other services like sponsorship income, education income, clinical trials and other ancillary activities is recognised based on the terms of the contract and when it is probable that economic benefits associated with the transaction will flow to the entity and amount of revenue can be measured reliably.

(v) Rental Income

Rental income arising from operating leases and licenses is accounted as per their respective terms of contract and is included in operating revenue in the statement of profit or loss due to its operating nature.

The Company also earn rental income from its hotel division.

(vi) Other Income

Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably. Interest income is accrued on a timely basis, by reference to the

principal outstanding and at the effective interest rate applicable.

Dividend income is recognised when the Company''s right to receive dividend is established by the reporting date. Dividend income is included under the head "other income" in the statement of profit and loss.

Income from Partnership firms is recognised based on audited financials of the firms in which the Company is a partner to the extent of the percentage of capital contributed by the Company.

8. Government Grant

Government grants are recognised where there is reasonable assurance that the grant will be received and all the conditions attached with them will be complied with. When the grant relates to an expense item, it is recognised as income on a systematic basis over the periods that the related costs, for which it is intended to compensate, are expensed. When the grant relates to an asset, it is recognised as income in proportion to the fulfilment of its obligations under such Government grant.

9. Employee BenefitsShort term Employee benefits

Employee benefits payable wholly within twelve months of receiving services are classified as short-term employee benefits. These benefits include salary and wages, bonus and exgratia. The undiscounted amount of short-term employee benefits to be paid in exchange for employee services is recognised as an expense as the related service is rendered by the employees.

Post employment benefits

The Company provides the following post employment benefits:

i) Defined benefit plans such as gratuity; and

ii) Defined contributions plan such as provident fund.

Defined contribution plans: A defined contribution plan is a post-employment benefit plan under which an entity pays specified contributions to separate entity and has no obligation to pay any further amounts. The Company makes specified obligations towards employee provident fund to Government administered provident fund scheme which is a defined contribution plan. The Company''s contributions are recognised as an expense in the statement of profit and loss during the period in which the employee renders the related service.

Defined benefit plans: The Company''s gratuity benefit scheme is a defined benefit plan. The Company''s net obligation in respect of a defined benefit plan is calculated by estimating the amount of future benefit that employees have earned and returned for services in the current and prior periods; that benefit is discounted to determine its present value. The calculation of Company''s obligation under the plan is performed periodically by an independent qualified 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 market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related obligation. The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense in the consolidated 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.

Compensated Absences

The employees can carry-forward a portion of the unutilised accrued compensated absences and utilise it in future service periods or receive cash compensation as per Company policy upon accumulation of minimum number of days or on termination of employment. Since the employee has unconditional right to avail the leave, the benefit is classified as a short term employee benefit. The Company records an obligation for such compensated absences in the period in which the employee renders the services that increase this entitlement. The obligation is measured on the basis of independent actuarial valuation using the projected unit credit method.

10. Income Taxes

Tax expense comprises deferred tax and current tax expenses. Income tax expense is recognised in statement of profit and loss except to the extent that it relates to equity, in which case it is recognised in equity or other comprehensive income.

Current Income Tax

Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities in

accordance with the Income Tax Act, 1961 and the Income Computation and Disclosure Standards ("ICDS") enacted in India by using tax rates and tax laws that are enacted or substantively enacted, at the reporting date.

Current income tax relating to items recognised outside profit or loss is included either in other comprehensive income or in equity depending on the recognition of underlying transaction. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

Deferred Income Tax

Deferred income tax is recognised using the balance sheet approach, deferred tax is recognised on temporary differences at the balance sheet date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date, except when the deferred income tax arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and affects neither accounting nor taxable profit or loss at the time of the transaction.

Deferred income tax assets are recognised for all deductible temporary differences, carry forward of unused tax credits and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilised.

The carrying amount of deferred income tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply in the period when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

11. Earnings per share

Basic earnings/ (loss) per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting preference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period is adjusted for events such as bonus issue, bonus element in a rights issue, share split, and reverse share split (consolidation of shares) that have changed the number of equity shares outstanding, without a corresponding change in resources.

For the purpose of calculating diluted earnings/ (loss) per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

12. Cash & Cash Equivalents and cash flows

Cash and cash equivalents include cash in hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less.

Cash flows are reported using the indirect method, whereby 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.

13. Provisions

A provision is recognised when the Company has a present obligation (legal or constructive) as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of such obligation. Provisions are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably. The expense relating to any provision is presented in the statement of profit and loss net of any reimbursement.

14. Contingent liabilities

A contingent liability is a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or nonoccurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events but is not recognised because it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation or the amount of the obligation cannot be measured with sufficient reliability. The Company does not recognise a contingent liability but discloses it in the financial statements, unless the possibility of an outflow of resources embodying economic benefits is remote.

15. Foreign currency translation

The financial statements of Company are presented in Indian Rupees, which is also the functional currency. In preparing the financial statements, transactions in currencies other than the entity''s functional currency are recognised at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are translated at the rates prevailing at that date. Non-monetary items denominated in foreign currency are reported at the exchange rate ruling on the date of transaction.

Exchange differences on monetary items are recognised in the statement of profit and loss in the period in which they arise except for exchange differences on foreign currency borrowings relating to assets under construction for future productive use, which are included in the cost of those assets when they are regarded as an adjustment to interest costs on those foreign currency borrowings.

16. Segment Reporting

In accordance with Ind AS 108, Segment Reporting, the Chief Executive Officer and Managing Director is the Company''s Chief Operating Decision Maker ("CODM"). The Company''s business activity primarily falls within a single reportable business segment and geographical segment namely ''Medical and Healthcare Services'' and ''India'' respectively. Hence, there are no additional disclosures to be provided under Ind-AS 108 -Segment information with respect to the single reportable segment, other than those already provided in financial statements. The Company is not required to disclose separately segment reporting as regards Hotel division in financial statement as per Ind AS 108 because its Revenue,

Profit & Loss and Assets are not exceeding 10% of Total Revenue, Profit & Loss and Assets of Company.

17. Current versus non-current classification:

The Company presents assets and liabilities in the Balance Sheet based on current/ non-current classification.

i) An asset is current when it is:

- Expected to be realised or intended to be sold or consumed in the normal operating cycle,

- Held primarily for the purpose of trading,

- Expected to be realised within twelve months after the reporting period, or

- Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

ii) A liability is current when:

- It is expected to be settled in the normal operating cycle,

- It is held primarily for the purpose of trading,

- I t is due to be settled within twelve months after the reporting period, or

- There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

All other liabilities are classified as non-current.

iii) Deferred tax assets and liabilities are classified as non current assets and liabilities

The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash equivalents. The Company has evaluated and considered its operating cycle as one year and accordingly has reclassified its assets and liabilities into current and non-current.

18. Dividend

A final dividend, including tax thereon, on equity shares is recorded as a liability on the date of approval by the shareholders. An interim dividend, including tax thereon, is recorded as a liability on the date of declaration by the board of directors.

19. Financial Instrument

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. The Company recognises a financial asset or financial

liability in its balance sheet only when the entity becomes party to the contractual provisions of the instrument.

(i) Financial assets:

A financial asset inter-alia includes any asset that is cash, equity instrument of another entity or contractual obligation to receive cash or another financial asset or to exchange financial asset or financial liability under condition that are potentially favourable to the Company.

Initial recognition and measurement:

Financial assets are initially measured at fair value except for trade receivables which are initially measured at transaction price. Transaction costs that are directly attributable to the acquisition or issue of financial assets (other than financial assets at fair value through profit or loss) are added to or deducted from the fair value of the financial assets, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets at fair value through profit or loss are recognised immediately in statement profit or loss.

Subsequent measurement:

For purposes of subsequent measurement financial assets are classified in three categories:

- Financial assets measured at amortised cost

- Financial assets at fair value through OCI

- Financial assets at fair value through Statement of Profit and Loss

Derecognition:

The Company derecognises a financial asset only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity.

Impairment:

In accordance with Ind AS 109, the Company applies expected credit losses ("ECL") model for measurement and recognition of impairment loss on the following financial asset and credit risk exposure.

(a) Financial assets measured at amortised cost;

(b) Financial assets measured at fair value through other comprehensive income (FVTOCI);

The Company follows "simplified approach" for recognition of impairment loss allowance on trade receivables. Under the simplified approach, the Company does not track changes

in credit risk. Rather,it recognises impairment loss allowance based on lifetime ECLs at the time of initial revenue recognition. The Company uses a provision matrix to determine impairment loss allowance on the portfolio of trade receivables. The provision matrix is based on the historically observed default rates over the expected life of various categories of trade receivables and these are updated and changed based on forward looking estimates at every reporting date.

For recognition of impairment loss on other financial assets and risk exposure, the Company determines whether there has been a significant increase in the credit risk since initial recognition. If credit risk has not increased significantly, 12 month ECL is used to provide for impairment loss. However, if credit risk has increased significantly, lifetime ECL is used. If, in subsequent period, credit quality of the instrument improves such that there is no longer a significant increase in credit risk since initial recognition, then the Company reverts to recognizing impairment loss allowance based on 12 months ECL.

(ii) Financial liabilities:

Financial liabilities include loans and borrowings including book overdraft, trade payable, accrued expenses and other payables.

Initial recognition and measurement:

All financial liabilities at initial recognition are classified as financial liabilities at amortised cost or financial liabilities at fair value through profit or loss, as appropriate. All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.

Subsequent measurement:

The subsequent measurement of financial liabilities depends upon the classification as described below:-

Financial liabilities classified as amortised

cost:- Financial liabilities that are not held for trading and are not designated as at FVTPL are measured at amortised cost at the end of subsequent accounting periods. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the Effective Interest Rate. Interest expense that is not capitalised as part of costs of assets is included as finance costs in the Statement of Profit and Loss.

Financial liabilities at fair value through profit and loss (FVTPL):-liabilities held for trading and financial liabilities designated upon initial recognition as FVTPL. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. Financial liabilities have not been designated upon initial recognition at FVTPL.

Derecognition:

A financial liability is derecognised when the obligation under the liability is discharged / cancelled / expired. 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 and Loss.

Offsetting of financial instruments:

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.

D. Significant accounting judgements, estimates and assumptionsUse of Estimates

The preparation of Financial Statements in conformity with Ind AS requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a adjustment to the carrying amount of the asset or liability affected in future periods. The key judgment, estimates and assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, which have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next year, are described below. The Company based its judgments and assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

Key Judgements

Significant accounting judgements, estimates and

assumptions used by management are as below:

(i) Revenue from Operations

Revenue primarily comprises fees charged for inpatient and outpatient hospital services. Services include charges for accommodation, medical professional services, equipment, radiology, laboratory and pharmaceutical goods used in treatments given to patients. Revenue from hospital services are recognised as and when services are performed, unless significant future uncertainties exist. The Company assess the distinct performance obligation in the contract and measures to at an amount that reflects the consideration it expects to receive net of tax collected and remitted to Government and adjusted for discounts and concession. The Company based on contractual terms and past experience determines the performance obligation satisfaction over time.

(ii) Defined Benefit schemes

The cost of the defined benefit plan and the present value of the defined benefit obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate; future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans operated in India, the management considers the interest rates of government bonds. The mortality rate is based on publicly available mortality tables. Those mortality tables tend to change only at interval in response to demographic changes. Future salary increases are based on expected future inflation rates and expected salary increase thereon.

(iii) Useful lives of property, plant and equipment

The useful life and residual value of property, plant and equipment and intangible assets are determined based on evaluation made by the management of the expected usage of the asset, the physical wear and tear and technical or commercial obsolescence of the asset. Due to the

judgments involved in such estimates the useful life and residual value are sensitive to the actual usage in future period.

(iv) Assessment of claims and litigations disclosed as contingent liabilities

There are certain claims and litigations which have been assessed as contingent liabilities by the management and which may have an effect on the operations of the Company. The management has assessed that no further provision / adjustment is required to be made in the financial statements for the above matters, other than what has been already recorded, as they expect a favourable decision based on their assessment and the advice given by the external legal counsels / professional advisors.

(v) Deferred tax

Deferred income tax reflects the current period timing differences between taxable income and accounting income for the period and reversal of timing differences of earlier periods. Deferred tax assets & liabilities are measured using the tax rates and tax law that have been enacted by the Income-tax Act as at the balance sheet date. Provision for Deferred Tax Liability is made to take care of timing difference in tax treatment of various expenses but mainly of depreciation.

E. New and amended standards

Amendments to Ind AS 1 and Ind AS 8: Definition of Material

The amendments provide a new definition of material that states, "information is material if omitting, misstating or obscuring it could reasonably be expected to influence decisions that the primary users of general-purpose financial statements make on the basis of those financial statements, which provide financial information about a specific reporting entity." The amendments clarify that materiality will depend on the nature or magnitude of information, either individually or in combination with other information, in the context of the financial statements. A misstatement of information is material if it could reasonably be expected to influence decisions made by the primary users. These amendments had no impact on the financial statements of, nor is there expected to be any future impact to the Company.

These amendments are applicable prospectively for annual periods beginning on or after the 1^st April, 2020. The amendments to the definition of material are not expected to have a significant impact on the financial information.