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 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 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,
- I t is held primarily for the purpose of
trading,
- It 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. Leases
The Company assesses at contract inception
whether a contract is, or contains, a lease. i.e., if
the contract conveys the right to control the use
of an identified asset for a time period in exchange
for consideration.
As a lessee
The Company recognises lease liabilities for
payment to lessor and right-of-use assets
representing the right to use the underlying
assets. The Company determines the lease term
as the non-cancellable period of a lease, together
with both periods covered by an option to extend
the lease if the Company is reasonably certain to
exercise that option; and periods covered by an
option to terminate the lease if the Company is
reasonably certain not to exercise that option.
The right-of-use asset is initially measured at
cost, which comprises the initial amount of the
lease liability adjusted for any lease payments
made at or before the commencement date plus
any initial direct costs incurred and an estimate
of costs to dismantle and remove the underlying
asset or to restore the underlying asset or the site
on which it is located, less any lease incentives
received. The right-of-use asset is subsequently
depreciated using the straight-line method from
the commencement date to the end of the lease
term.
The lease liability is initially measured at the
present value of the lease payments that are not
paid at the commencement date, discounted
using the Company's incremental borrowing rate.
It is remeasured when there is a change in future
lease payments arising from a change in an index
or rate, if there is a change in the Company's
estimate of the amount expected to be payable
under a residual value guarantee, or if the
Company changes its assessment of whether it
will exercise a purchase, extension or termination
option. When the lease liability is remeasured in
this way, a corresponding adjustment is made to
the carrying amount of the right-of-use asset, or
is recorded in profit or loss if the carrying amount
of the right of-use asset has been reduced to zero.
Short term leases and lease of low value assets
The Company has elected not to recognise right-
of use assets and lease liabilities for short-term
leases that have a lease term of 12 months or
less and leases of low-value assets. The Company
recognises the lease payments associated with
these leases as an expense over the lease term and
is presented within 'other expense' in statement
of profit and loss.
As a lessor
Leases in which the Company does not transfer
substantially all the risks and rewards of
ownership of an asset are classified as operating
leases. Payments received under operating leases
are recognised in the Statement of Profit and Loss
on a straight line basis over the term of the lease.
20. 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 recognising 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):- FVTPL includes
financial 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
assumptions
Use of Estimates
The preparation of Financial Statements in conformity
with Ind AS requires the management to make
judgements, estimates and assumptions that affect the
reported amounts of revenues, expenses, assets and
liabilities and the accompanying disclosures, and the
disclosure of contingent liabilities. 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 key judgement, 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 judgements 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
judgements 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.
. Recent Accounting pronouncements
Ministry of Corporate Affairs ("MCA") notifies new
standards or amendments to the existing standards
under Companies (Indian Accounting Standards)
Rules as issued from time to time. For the year ended
31st March, 2025, MCA has notified Ind AS - 117
Insurance Contracts and amendments to Ind AS 116
- Leases, relating to sale and leaseback transactions,
applicable to the Company w.e.f. 1st April, 2024. The
Company has reviewed the new pronouncements and
based on its evaluation has determined that it does not
have any significant impact in its financial statements.
32 FINANCIAL RISK
The Company's activities expose it to various financial risks, including market risk, credit risk and liquidity risk. The Company's
risk management assessment and policies and processes are established to identify and analyse the risks faced by the Company
by setting appropriate limits and controls and monitoring such risks. The policies and processes are reviewed regularly to
reflect changes in market conditions and the Company's activities.
Credit risk - is the risk of loss that may arise on outstanding financial instruments if a counterparty default on its obligations.
The Company's exposure to credit risk arises majorly from trade receivables and other financial assets. Other financial assets
are bank deposits with banks and hence, the Company does not expect any credit risk with respect to these financial assets.
With respect to other financial assets, the Company has constituted teams to review the receivables on periodic basis and to
take necessary mitigations, wherever required. The Company creates allowance for all unsecured receivables based on lifetime
expected credit loss. At the balance sheet date, there was no significant concentration of credit risk and exposure thereon.
Liquidity risk - is the risk that the Company will not be able to meet the financial obligations as they become due. The
Company manages its liquidity risk by ensuring, as far as possible, that it will have sufficient liquidity to meet its liabilities when
due, under both, normal and stressed conditions, without incurring unacceptable losses or risk to the Company's reputation.
With significant investments in fixed deposits, cash in hand and available borrowing lines, the Company does not envisage
any material effect on its liquidity.
33.G Capital Management
For the purpose of the Company's Capital Management, capital includes issued capital and other equity reserves,
long term funds attributable to the Equity Shareholders of the Company. The primary objective of the Company's
Capital Management is to maximise shareholders value and keep the debt equity ratio within acceptable range. The
Company manages its capital structure and makes adjustments in the light of changes in economic environment and the
requirements of the financial covenants. The Company monitors capital using adjusted net debt to equity ratio. For this
purpose, adjusted net debt is defined as total debt less cash and bank balances.
33.J Segment reporting
The chief operating decision maker (CODM) examines the Company's performance from a service perspective and has
identified the Healthcare services as a single business segment. The Company is operating in India which constitutes
a single geographical segment. Hence, as per Ind AS-108 Operating Segments issued by the Institute of Chartered
Accountants of India, no separate disclosure on segment information is given in these financial statements.
33.K Public issue of equity shares
During the FY 2023-24, the Company has completed its Initial Public Offer ('IPO') of 1,18,24,163 equity shares of face
value of '10 each for cash at a price of ' 735 per equity share (including a share premium of ' 725 per equity share)
aggregating to ' 8,690.76 Million. This comprises of fresh issue of 73,74,163 equity shares aggregating up to ' 5,420.01
Million ('fresh issue') and an offer for sale of 44,50,000 equity shares aggregating to ' 3,270.75 Million.
The Company has incurred share issue expenses of ' 323.74 Million in reference to initial public offer which has been
adjusted against securities premium.
33.L Dividend
The Board of Directors at their meeting held on 9th May, 2025 recommended a final dividend of INR 1 per share (10% of
face value of f 10 per share), subject to approval of the shareholders in forthcoming AGM. The final dividend on shares
will be recorded as a liability on the date of approval by the shareholders.
33.M Additional regulatory information not disclosed elsewhere in the financial information
a) There are no properties / assets which are not held or registered in the name of the Company (benami property),
other than those disclosed in this financial information.
b) Transactions and balances with companies which have been removed from register of Companies [struck off
companies] as at the above reporting periods is Nil.
c) The Company has not traded / invested in Crypto currency.
d) The Company does not have any charges or satisfaction which is yet to be registered with Registrar of Companies
beyond the statutory period.
e) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign
entities (Intermediaries) with the understanding that the Intermediary shall:
Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf
of the Company (Ultimate Beneficiaries) or provide any guarantee, security or the like to or on behalf of the Ultimate
Beneficiaries.
Except as disclosed in Financial Statement of the subsidiary companies and firms.
f) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party)
with the understanding (whether recorded in writing or otherwise) that the Company shall:
i. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Funding Party (Ultimate Beneficiaries) or
ii. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
g) The Company has no such transaction which is not recorded in the books of accounts that has been surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey
or any other relevant provisions of the Income Tax Act, 1961).
h) The Company has not granted any loans or advances in the nature of loans to promoters, directors, KMPs and the
related parties (as defined under Companies Act, 2013), either severally or jointly with any other person.
i) The Company is not a declared wilful defaulter by any bank or financial Institution or other lender.
j) As at 31st March, 2025, there are no standards that have been issued but are not yet effective, which will impact this
financial information.
33.N The Company does not have any transactions and outstanding balances during the current as well as previous period
with Companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.
33.O Figures have been rounded off to the nearest rupees (f) in Million up to two decimal places (except for EPS and Nos of
Shares). Previous year's figures have been regrouped wherever applicable to facilitate comparability.
As per our report of even date attached
For Aswin P. Malde & Co. For and on behalf of the Board of Directors
Chartered Accountants
(Firm's Regn No. 100725W)
Aswin P. Malde Dr. Ajay Thakker Dr. Bhaskar Shah Dr. Ankit Thakker
(Proprietor) Chairman & Managing Director Director Executive Director & CEO
Membership No. 032662 DIN: 00120887 DIN: 00007817 DIN: 02874715
Harshad Purani Suma Upparatti
Chief Financial Officer Company Secretary & Compliance Officer
Membership No. 8986
Place: Mumbai
Date: 9th May, 2025
UDIN: 25032662BMJBTY2978
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