b) Provision and contingent liability:

Provisions and liabilities are recognised in the period when it becomes probable that there will be future outflows of funds from past events that can reasonably be estimated. The timing of recognition requires application of judgement to existing facts and circumstances which may be subject to change.

On an ongoing basis, the Company reviews pending cases, claims by third parties and other contingencies. For contingent losses that are considered probable, an estimated loss is recorded as an accrual in Financial Statements. Loss contingencies that are considered possible are not provided for but disclosed as contingent liabilities in the Financial Statements. Contingencies, the likelihood of which is remote, are not disclosed in the Financial Statements.

c) Leases:

Significant judgments are required in the assumptions made in order to determine the ROU asset and lease liability. The assumptions and estimates include application of practical expedients, selection of accounting policy choices, assessment of lease term, determination of applicable incremental borrowing rate, among others.

Recent Pronouncements

Ministry of Corporate Affairs (MCA) notified new accounting standards or amendments to the existing standards under Companies (Indian Accounting Standards Rules, 2015) as amended, there was no new standards or amendments notified during the year.

Notes:

1. Capital reserve represents the reserve created on account of amalgamation of Idhayam Hospitals Erode Limited (erstwhile subsidiary) under the pooling of interest method

2. General Reserve is created from time to time by transferring profits from retained earnings and can be utilised for purposes such as dividend payout, bonus issue etc.

3. Retained Earnings represents the surplus / accumulated earnings of the Company and are available for distribution to Shareholders.

Note : Security details for the above loans taken

(i) The above term loans from Bank are primarily secured by first charge on the land and appurtenances therewith located at Kalapatti Village at Coimbatore and the land located at Erode, pari passu first charge on the entire fixed assets (present and future) of the Company.

(ii) The facilities are also collaterally secured by second charge on the entire current assets (present and future) of the Company.

(iii) The term loans from bank are further secured by personal guarantees of the Managing Director - Dr. Nalla G Palaniswami and Joint Managing Director - Dr. Thavamani Devi Palaniswami, of the Company.

(iv) The Company has made registration of charges / Satisfaction with registrar of Companies (ROC) within the Statutory period, wherever applicable.

Note 39 - Employee Benefits

(a) Defined contribution plans :

The Company makes contributions towards provident fund as a defined contribution retirement benefit fund for qualifying employees. The provident fund is operated by the regional provident fund commissioner. Under the scheme, the Company is required to contribute a specific percentage of the payroll cost as per the statue.

The total expenses recognized in the Statement of Profit and Loss of ^ 978.11 lakhs (for the year ended March 31, 2023: ^ 839.10) represents contributions payable to the plan by the Company.

(b) Defined benefit plans : i) Gratuity

The company operates a defined benefit plan for payment of post-employment benefits in the form of Gratuity. Benefits under the plan are based on pay and years of service and are vested on completion of five years of service, as provided for in the Payment of Gratuity Act, 1972. The terms of benefits are generally common for all the employees of the company.

These plans typically expose the Company to actuarial risks such as: investment risk, interest rate risk, salary risk and longevity risk.

(a) Capital Management

The Company manages its capital with the objective to maximize the return to stakeholders through the optimisation of the debt and equity mix. The Company's overall strategy remains unchanged from previous year.

The funding requirements are met through a mixture of equity, internal fund generation and other non-current borrowings. The Company's policy is to use current and non-current borrowings to meet anticipated funding requirements.

The Company monitors capital on the basis of the gearing ratio which is net debt divided by total equity. Net debts are non-current and current debts as reduced by cash and cash equivalents, other bank balances and current investments. Equity comprises all components including other comprehensive income.

The carrying amounts of trade receivables, cash and cash equivalents, other bank balances, loans, other financial assets, borrowings, trade payables and other current financial liabilities are a reasonable approximation of their fair values. Accordingly, the fair values of such financial assets and financial liabilities have not been disclosed separately.

iii) Valuation technique used to determine fair value

The fair value of the financial assets and liabilities are at the amount that would be received to sell an asset and paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The carrying amounts of trade receivables, cash and cash equivalents, other bank balances, loans, other financial assets, borrowings, trade payables and other current financial liabilities are a reasonable approximation of their fair values.

The investment included in Level 3 hierarchy have been valued at cost approach to arrive at the fair values as there is a wide range of possible fair value measurement and the cost represents estimate of fair value within that range considering the purpose and restriction on the transferability of the instruments

The estimated fair value amounts as at March 31, 2024 have been measured as at that date. As such, the fair values of these financial instruments subsequent to reporting date may be different than the amounts reported at each year-end.

There were no transfers between Level 1, Level 2 and Level 3 during the year.

c) Financial Risk Management

In course of its business, the Company is exposed to certain financial risks that could have significant influence on the Company's business and operational / financial performance. These include market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

The Board of Directors has overall responsibility for the establishment and oversight of the Group's risk management framework. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the related impact in the Financial Statements.

(i) Credit risk

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration risks. The Company has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults.

Credit risk management

Credit risk rating

The Company assesses and manages credit risk of financial assets based on following categories arrived on the basis of assumptions, inputs and factors specific to the class of financial assets.

A. Low credit risk

B. Moderate credit risk

C. High credit risk

Note 50 - Disclosure as required under section 186(4) of the Companies Act, 2013

Loans and guarantees furnished by the Company: Nil (Previous year - Nil).

Investments made are given under the respective head.

Note 51 - The New Code on Social Security 2020 (the Code) has been enacted which would impact the contribution by the company towards PF and Gratuity. The effective date from which the changes are applicable is yet to be notified and the rules are yet to be framed. Impact, if any, of the change will be assessed and accounted in the period in which the said Code becomes effective and the rules framed thereunder are published.

Note 52 - Power and Fuel consumed is net off Solar Power Income ^ 504.40 lakhs (Previous Year ^472.95 lakhs)

Note 53 - The Board of directors recommended a final dividend ^ 10 per Equity share (100% of face value of ' 10/- each) for the financial year 2023-2024. The dividend proposed is subject to approval of the members in the ensuing Annual General Meeting.

Note 55 - In respect of Note nos 7, 8,10,13,14 there is no amount due from a director or other officers of the Company or any of them either severally or Jointly with any other persons or debts due by firms or Private Companies respectively in which any director is a partner or a director or a member, except due from Mrs. Thavamani Devi Palaniswami - Joint Managing Director of the Company of ^ 49 lakhs which is paid as lease advance.

Note 56 - ADDITIONAL DISCLOSURE ON ACCOUNT OF AMENDMENTS TO SCHEDULE III OF COMPANIES ACT 2013:

(i) Details of Benami property:

No proceedings have been initiated or are pending against the company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

(ii) Compliance with number of layers of companies:

The company has complied with the number of layers prescribed under the Companies Act, 2013.

(iii) No funds (which are material either individually or in the aggregate) have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other persons or

entities, including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall:

• Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever ("Ultimate Beneficiaries") by or on behalf of the Company or

• Provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

No funds (which are material either individually or in the aggregate) have been received by the Company from any person or entity, including foreign entity ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall:

• Directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever ("Ultimate Beneficiaries") by or on behalf of the Funding Party or

• Provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;"

(iv) Undisclosed income:

There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.

(v) Details of crypto currency or virtual currency:

The company has not traded or invested in crypto currency or virtual currency during the current or previous year.

(vi) Valuation of Property, Plant &Equipment, intangible asset and investment property:

The company has not revalued its property, plant and equipment (including Right of Use Assets) or intangible assets or both during the current or previous year.

(vii) Wilful Defaulter:

The company had not been declared a wilful defaulter by any bank or financial institution or other lender (as defined under the Companies Act, 2013) or consortium thereof, in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.

(viii) Compliance with approved scheme(s) of arrangements:

There is no accounting impact of approved scheme of arrangement during the current or previous year.

(ix) Loans to Related Parties and others:

The company had not granted any loans or advances in the nature of loans to promoters, directors, KMP's and the related parties (as defined under Companies Act, 2013), either severally or jointly with any other person that: a) are repayable on demand or b) without specifying any terms or period of repayment.

(x) Struck Off Companies:

The company has no transactions with companies struck off under section 248 of the Companies Act 2013, or section 560 of the Companies Act, 1956

Note 57 - Figures of the previous year have been regrouped, reclassified and rearranged wherever necessary to conform to current year's classification including those as required consequent to amendment to Schedule III of the Companies Act, 2013. All figures are in lakhs unless otherwise stated.

Material Accounting Policies and the accompanying notes are an integral part of the Financial Statements

As per our report of even date For and on behalf of the Board of Directors

For VKS Aiyer & Co

Chartered Accountants ^{Sd/- Sd/-}

ICAI Firm Registration No: 000066S Dr. NALLA G PALANISWAMI CA. A.M. PALANISAMY

_Sd/- Managing Director Director

C S SATHYANARAYANAN ^{DIN: 00013536 DIN:} 00112303

Partner

Membership No. 028328 Sd/_- Sd/_-

Place: Coimbatore CA. P.K. GOPIKRISHNAN CS. R. PONMANIKANDAN

Date : 29.05.2024 Chief Financial Officer Company Secretary