K. Provisions

Provisions are recognised when the Company has a
present obligation (legal or constructive) as a result of
a 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 the obligation. When the Company expects
some or all of a provision to be reimbursed, the expense
relating to a provision is presented in the statement of
profit and loss net of any reimbursement.

If the effect of the time value of money is material,
provisions are discounted using a current pre-tax rate that
reflects, when appropriate, the risks specific to the liability.
When discounting is used, the increase in the provision
due to the passage of time is recognised as a finance cost.

Contingent liabilities

A contingent liability is a possible obligation that arises
from past events whose existence will be confirmed by the
occurrence or non-occurrence of one or more uncertain
future events beyond the control of the Company or a present
obligation that is not recognized because it is not probable
that an outflow of resources will be required to settle the
obligation. A contingent liability also arises in extremely rare
cases where there is a liability that cannot be recognized
because it cannot be measured reliably. The Company
does not recognize a contingent liability but discloses its
existence in the standalone financial statements.

A contingent asset is not recognised unless it becomes
virtually certain that an inflow of economic benefits will
arise. When an inflow of economic benefits is probable,
contingent assets are disclosed in the standalone
financial statements.

Provisions, contingent liabilities and contingent assets are
reviewed at each balance sheet date.

L. Retirement and other employee benefits
Defined contribution plans

Retirement benefit in the form of provident fund is a defined
contribution scheme. The Company has no obligation,
other than the contribution payable to the provident fund.

The Company recognizes contribution payable to the
provident fund scheme as an expense, when an employee
renders the related service. If the contribution payable to
the scheme for service received before the balance sheet
date exceeds the contribution already paid, the deficit
payable to the scheme is recognized as a liability after
deducting the contribution already paid. If the contribution
already paid exceeds the contribution due for services
received before the balance sheet date, then excess is
recognized as an asset to the extent that the pre-payment
will lead to, for example, a reduction in future payment
or a cash refund.

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 annually by a qualified actuary using the
projected unit credit method.

The gratuity scheme is administered by third party. Re¬
measurements of the net defined benefit liability, which
comprise actuarial gains and losses, the return on plan
assets (excluding interest) and the effect of the asset ceiling
(if any, excluding interest), are recognised immediately in
the Balance Sheet with a corresponding debit or credit to
retained earnings through OCI in the period in which they
occur. Remeasurements are not reclassified to profit or
loss in subsequent periods.

The Company determines the net interest expense
(income) on the net defined liability (assets) for the period
by applying the discount rate used to measure the net
defined obligation at the beginning of the annual period
to the then-net defined benefit liability (asset), taking into
account any changes to the defined benefit liability (asset)
as a result of contribution and benefit payments. Net
interest expense and other expenses related to defined
benefit plans are recognised in the statement of profit and
loss. The Company recognises gains and losses in the
curtailment or settlement of a defined benefit plan when
the curtailment or settlement occurs.

When the benefits of a plan are changed or when a plan is
curtailed, the resulting change in benefit that relates to past
service or the gain or loss on curtailment is recognised in
the Statement of Profit and Loss account on the earlier of
amendment or curtailment.

The Company recognises the following changes in the net
defined benefit obligation as an expense in the Statement
of Profit and Loss:

• Service costs comprising current service costs, past-
service costs, gains and losses on curtailments and
non-routine settlements; and

• Net interest expense or income
Short term employee benefits

Short term employee benefits are measured on an
undiscounted basis and are expensed as the relative
service is provided. A liability is recognised for the amount
expected to be paid e.g., under short term cash bonus, if
the Company has a present legal or constructive obligation
to pay this amount as a result of the past service provided
by the employee, and the amount of obligation can be
estimated reliably.

Compensated Absences

As per the leave encashment policy of the Company,
the employees have to utilise their eligible leave during
the financial year and lapses at the end of the financial
year. Accrual towards compensated absences at the end
of the financial year are based on last salary drawn and
outstanding leave absence at the end of the financial year.

Accumulated leave, which is expected to be utilized within
the next twelve months, is treated as short-term employee
benefit. The Company measures the expected cost of such
absences as the additional amount that it expects to pay
as a result of the unused entitlement that has accumulated
at the reporting date. The company recognizes expected
cost of short-term employee benefit as an expense, when
an employee renders the related service.

The Company treats accumulated leave expected to be
carried forward beyond twelve months, as long-term
employee benefit for measurement purposes. Such
long-term compensated absences are provided for
based on the actuarial valuation using the projected unit
credit method at the year end. Actuarial gains/losses are
immediately taken to the statement of profit and loss and
are not deferred. The obligations are presented as current
liabilities in the Balance sheet if the entity does not have
an unconditional right to defer the settlement for at least
twelve months after the reporting date.

M. Financial instruments

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.

Financial Assets

Initial recognition and measurement

Financial assets are classified, at initial recognition, as
subsequently measured at amortised cost, fair value
through other comprehensive income (OCI), and fair

value through profit or loss. The classification of financial
assets at initial recognition depends on the financial
asset’s contractual cash flow characteristics and the
Company’s business model for managing them. With
the exception of trade receivables that do not contain a
significant financing component or for which the Company
has applied the practical expedient, the Company initially
measures a financial asset at its fair value plus, in the case
of a financial asset not at fair value through profit or loss,
transaction costs. Trade receivables that do not contain a
significant financing component or for which the Company
has applied the practical expedient are measured at the
transaction price determined under Ind AS 115.

In order for a financial asset to be classified and measured
at amortised cost or fair value through OCI, it needs to give
rise to cash flows that are ‘solely payments of principal and
interest (SPPI)’ on the principal amount outstanding. This
assessment is referred to as the SPPI test and is performed
at an instrument level. Financial assets with cash flows
that are not SPPI are classified and measured at fair value
through profit or loss, irrespective of the business model.

The Company’s business model for managing financial
assets refers to how it manages its financial assets in order
to generate cash flows. The business model determines
whether cash flows will result from collecting contractual
cash flows, selling the financial assets, or both. Financial
assets classified and measured at amortised cost are held
within a business model with the objective to hold financial
assets in order to collect contractual cash flows while
financial assets classified and measured at fair value through
OCI are held within a business model with the objective of
both holding to collect contractual cash flows and selling.

Subsequent measurement

On initial recognition, a financial asset is
classified as measured at

- Financial assets at amortised cost

- Financial assets at fair value through profit
or loss (FVTPL)

Financial assets at amortised cost

A financial asset is measured at amortised cost if it meets
both of the following conditions:

- the asset is held within a business model whose
objective is to hold assets to collect contractual
cash flows; and

- the contractual terms of the financial asset give rise on
specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.

This category is the most relevant to the Company. After
initial measurement, such financial assets are subsequently
measured at amortised cost using the effective interest rate
(EIR) method. 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 EIR. The EIR amortisation
is included in interest income in the Statement of Profit and
Loss. The losses arising from impairment are recognised in
the profit or loss. The Company’s financial assets at amortised
cost includes trade receivables and loan to subsidiaries
included under other non-current financial assets. For more
information on receivables, refer to Note 2.35.

Financial assets at fair value through profit or loss

All financial assets not classified as measured at amortised
cost as described above are measured at FVTPL. On initial
recognition, the Company may irrevocably designate a
financial asset that otherwise meets the requirements
to be measured at amortised cost at FVTPL if doing so
eliminates or significantly reduces an accounting mismatch
that would otherwise arise.

Derecognition

The Company derecognises a financial asset when the
contractual rights to the cash flows from the financial asset
expire, or it transfers the rights to receive the contractual
cash flows in a transaction in which substantially all of
the risks and rewards of ownership of the financial asset
are transferred or in which the Company neither transfers
nor retains substantially all of the risks and rewards of
ownership and does not retain control of the financial asset.

If the Company enters into transactions whereby it
transfers assets recognised on its balance sheet but
retains either all or substantially all of the risks and rewards
of the transferred assets, the transferred assets are not
derecognised. The transferred asset and the associated
liability are measured on a basis that reflects the rights and
obligations that the Company has retained.

Continuing involvement that takes the form of a guarantee over
the transferred asset is measured at the lower of the original
carrying amount of the asset and the maximum amount of
consideration that the company could be required to repay.

Impairment of financials assets

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

• Financial assets that are debt instruments, and
are measured at amortized cost e.g., loans,
debt securities, deposits, trade receivables
and bank balance.

• Trade receivables or any contractual right to receive
cash or another financial asset that result from
transactions that are within the scope of Ind AS 115.

ECL is the difference between all contractual cash flows
that are due to the company in accordance with the contract
and all the cash flows that the entity expects to receive
(i.e., all cash shortfalls), discounted at the original EIR.

For trade receivables and unbilled revenue, the Company
applies a simplified approach in calculating ECLs.
Therefore, the Company does not track changes in credit
risk, but instead recognises a loss allowance based on
lifetime ECLs at each reporting date. The Company has
established a provision matrix that is based on its historical
credit loss experience, adjusted for forward-looking factors
specific to the debtors and the economic environment.

For recognition of impairment loss on other financial
assets and risk exposure, the Company determines
that 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 a 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 entity reverts to recognizing
impairment loss allowance based on 12-month ECL.

The Company considers that there has been a significant
increase in credit risk when contractual payments are
more than 30 days past due.

The Company considers a financial asset to be in default
when internal or external information indicates that the
Company is unlikely to receive the outstanding contractual
amounts in full before taking into account any credit
enhancements held by the Company. A financial asset
is written off when there is no reasonable expectation of
recovering the contractual cash flows.

Lifetime ECL are the expected credit losses resulting
from all possible default events over the expected life of
a financial instrument. The 12-month ECL is a portion of
the lifetime ECL which results from default events that are
possible within 12 months after the reporting date.

ECLs are recognised in two stages. For credit exposures for
which there has not been a significant increase in credit risk
since initial recognition, ECLs are provided for credit losses
that result from default events that are possible within the next
12-months (a 12-month ECL). For those credit exposures
for which there has been a significant increase in credit risk
since initial recognition, a loss allowance is required for credit
losses expected over the remaining life of the exposure,
irrespective of the timing of the default (a lifetime ECL).

Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition,
as financial liabilities at fair value through profit or loss,
loans and borrowings, payables, 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. The Company’s
financial liabilities include trade and other payables, loans
and borrowings including bank overdrafts and financial
guarantee contracts.

Subsequent measurement

For purposes of subsequent measurement, financial
liabilities are classified in two categories:

- Financial liabilities at fair value through profit or loss

- Financial liabilities at amortised cost (loans
and borrowings)

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include
financial liabilities held for trading and financial liabilities
designated upon initial recognition as at fair value through
profit or loss.

Financial liabilities designated upon initial recognition at
fair value through profit or loss are designated as such at
the initial date of recognition, and only if the criteria in Ind
AS 109 are satisfied. For liabilities designated as FVTPL,
fair value gains/ losses attributable to changes in own
credit risk are recognized in OCI. These gains/losses are
not subsequently transferred to Statement of Profit and
Loss. However, the company may transfer the cumulative
gain or loss within equity. All other changes in fair value
of such liability are recognised in the Statement of Profit
and Loss. The Company has not designated any financial
liability as at fair value through profit or loss.

Financial instruments are classified as a liability or equity
components based on the terms of the contract and
in accordance with Ind AS 32 (Financial instruments:
Presentation). Financial instrument issued by the Company
classified as equity is carried at its transaction value and
shown within “equity”. Financial instrument issued by the
Company classified as liability is initially recognised at fair
value (issue price). Subsequent to initial recognition, such
Financial instrument is fair valued through the statement
of profit or loss. On modification of Financial instrument
from liability to equity, the Financial instrument is recorded
at the fair value of Financial instrument classified as equity
and the difference in fair value is recorded as a gain/ loss
on modification in the Statement of Profit and Loss.

Financial liabilities at amortised cost (loans and
borrowings)

This is the category most relevant to the Company. After
initial recognition, interest-bearing loans and borrowings
are subsequently measured at amortised cost using the
EIR method. Gains and losses are recognised in profit
or loss when the liabilities are derecognised as well as
through the EIR amortisation process.

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 EIR. The EIR amortisation is
included as finance costs in the statement of profit and
loss. This category generally applies to borrowings.

Financial guarantee contracts

Financial guarantee contracts issued by the Company
are those contracts that require a payment to be made
to reimburse the holder for a loss it incurs because the
specified debtor fails to make a payment when due in
accordance with the terms of a debt instrument. Financial
guarantee contracts are recognised initially as a liability at
fair value, adjusted for transaction costs that are directly
attributable to the issuance of the guarantee. Subsequently,
the liability is measured at the higher of the amount of loss
allowance determined as per impairment requirements
of Ind AS 109 and the amount recognised less, when
appropriate, the cumulative amount of income recognised
in accordance with the principles of Ind AS 115.

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.

Derecognition

A financial liability is derecognised when the obligation
under the liability is discharged or cancelled or expires.
When an existing financial liability is replaced by another
from the same lender on substantially different terms, or
the terms of an existing liability are substantially modified,
such an exchange or modification is treated as the

derecognition of the original liability and the recognition
of a new liability. The difference in the respective carrying
amounts is recognised in the statement of profit and loss.

N. Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise
cash at banks and on hand and short-term deposits with
an original maturity of three months or less, that are readily
convertible to a known amount of cash and subject to an
insignificant risk of changes in value.

O. Government Grants

Government grants are recognised where there is
reasonable assurance that the grant will be received, and all
attached conditions 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 equal
amounts over the expected useful life of the related asset.

When the Company receives grants of non-monetary
assets, the asset and the grant are recorded at fair value
amounts and released to profit or loss over the expected
useful life in a pattern of consumption of the benefit of the
underlying asset i.e. by equal annual instalments.

P. Segment reporting

Operating segments are reported in a manner consistent
with the internal reporting provided to the chief operating
decision maker. The Board of Directors is responsible for
allocating resources and assessing performance of the
operating segments and accordingly is identified as the
chief operating decision maker.

1.4 Climate - related matters

The Company considers climate-related matters in
estimates and assumptions, where appropriate. This
assessment includes a wide range of possible impacts
on the Company due to both physical and transition risks.
Even though climate-related risks might not currently have
a significant impact on measurement, the Company is
closely monitoring relevant changes and developments.

Notes:

i Axis Bank - Term loan Facility-1 is secured by way of exclusive charge on entire fixed assets of the Thane project ,both movable
and immovable (including lease hold right) present and future. The loan is repayable in 120 structured monthly instalments after
12 months from estimated date of completion of 31 March 2025 and carries an interest rate of Repo rate 2.20% per annum
(31 March 2024: Repo rate 2.20% annum), currently the interest rate is 8.45% p.a (31 March 2024 : 8.70%)

ii Axis Bank - Term loan Facility-2 is secured by way of first pari pasu charge on entire fixed assets of the Company (both movable
and immovable) pertaining to Secunderabad hospital along with mortgage on lease hold rights of the hospital lands pertaining
to Secunderabad hospital which are not owned by the Company. The loan is repayable in 72 equated monthly instalments
post moratorium period of 12 months from the date of first disbursement and carries an interest rate of Repo rate 2.15% per
annum (31 March 2024: Repo rate 2.15% per annum), currently the interest rate is 8.40% p.a (31 March 2024 : 8.65% p.a)

iii Federal Bank - Term loan Facility is secured by way of hypothecation of machinery/ equipment procured out of LC and second
charge on the movable fixed assets of the company (on best effort basis). The loan is repayable in 60 equated monthly
instalments from the date of issue of LC or TL disbursal, as the case may be and carries an interest rate of Repo rate 2.10%
per annum, currently the interest rate is 8.35% p.a. as on 31 March, 2025.

iv IndusInd Bank - Term loan Facility is secured by way of first pari pasu charge on entire movable fixed assets of the Company pertaining
to Secunderabad hospital and Nellore hospital except equipment which were purchased out of medical equipment loans by company.
The loan is repayable in 72 equated monthly instalments post moratorium period of 6 months from the date of first disbursement and
carries an interest rate of Repo rate 2.25% per annum, currently the interest rate is 8.50% p.a as on 31 March 2025.

v Kotak Bank - Term loan Facility is secured by way of first pari pasu charge on immovable and movable fixed assets (excluding
vehicle/equipment financed under hire purchase) of Secunderabad and Nellore hospital both present and future. And exclusive
charge of medical equipment/movable fixed assets to be crerated out of proposed term loan. The loan is repayable in 60
equated monthly instalments post moratorium period of 24 months from the date of first disbursement and carries an interest
rate of Repo rate 2.10% per annum, currently the interest rate is 8.35% p.a. as on 31 March, 2025.

vi Axis Bank - Term loan Facility-3 is secured by way of first pari pasu charge on entire fixed assets of the Company (both movable
and immovable) pertaining to Secunderabad hospital along with mortgage on lease hold rights of the hospital lands pertaining
to Secunderabad hospital which are not owned by the Company. The loan is repayable in 48 structured quarterly instalments
from the date of first disbursement and carries an interest rate of Repo rate 2.20% per annum, currently the interest rate is
8.45% p.a as on 31 March, 2025.

2.12 Borrowings (at amortised cost) (Contd..)

vii Axis Bank - WCDL facility is secured by first pari pasu charge on current assets of the company and repayable on demand and
carries an interest rate of 8.25% per annum linked to 3 months MCLR (31 March 2024: 8.25% per annum).

viii Cash credit is secured by first pari pasu charge on current assets of the Company and repayable on demand and carries an
interest rate of 8.5% per annum linked to 3 months Repo 1.72% spread (31 March 2024: 8.75% per annum).

iv) The Company has obtained a stay from High Court for the state of Andhra Pradesh, dated 11 November 2014, directing
the local authorities not to proceed with the acquisition of part of the building in Nellore for the purpose of road widening.
No provision thereof has been made in the standalone financial statements.

v) The Company, has applied for benefits under EPCG scheme to import capital goods availing customs duty exemption
under which it has an export obligation of six times the duty saved an import of capital goods on FOB basis within a period
of six years. As at 31 March 2025, the benefit availed under EPCG scheme amounts to Rs.228 (31 March 2024:Nil), In the
event of failure of the export obligations as specified in the said notifications and the licence, the Company is liable to pay
the customs duty for the exemption and also the interest as applicable.

Notes:

(a) Pending resolution of the respective proceedings, it is not practicable for the Company to estimate the timings of the
cash flow, if any, in respect of the above as it is determinable only on receipt of judgements/decisions pending with
various forums/authorities. The Company has reviewed all its pending litigations and proceedings and has adequately
provided for where provisions are required and disclosed as contingent liabilities where applicable in its standalone
financial statements. The Company does not expect the outcome of these proceeding to have a materially adverse effect
on its financial position.

(b) Includes a consumer case filed by an individual at National Consumer Disputes Redressal Commission against the
Company along with 3 other hospitals demanding a total compensation of Rs. 235 (31 March 2024: Rs. 235) along with
a further interest @ 18% p.a towards medical negligence. Based on the legal opinion obtained by the Company and the
internal evaluation by the management, the Company believes that it has strong case in this regard and there shall not be
any outflow of resources. No provision thereof has been made in the Standalone financial statements.

2.26 Lease

Company as a lessee

The Company has land lease contract used in its operations with lease term of 99 years. The Company’s obligations under its lease
is secured by the lessor’s title to the leased assets.

Leases of buildings with lease terms of 12 months or less and leases of office equipment with low value. The Company applies the
‘short-term lease’ and ‘lease of low-value assets’ recognition exemptions for these leases.

The Company has several lease contracts that include extension and termination options. These options are negotiated by management
to provide flexibility in managing the leased-asset portfolio and align with the Company’s business needs. Management exercises
significant judgement in determining whether these extension and termination options are reasonably certain to be exercised.

2.27 Employee benefits

(i) Defined benefit plan

The Company operate post-employment defined benefit plan that provides for gratuity. The Company accrues gratuity as
per the provisions of the payment of Gratuity Act, 1972 as applicable as at the balance sheet date. The gratuity plan entitles
an employee, who has rendered at least five years of continuous services, to receive one-half month’s salary for each year
of completed services at the time of retirement/exit. The gratuity fund is administered by trust formed for this purpose and is
managed by Life Insurance Corporation of India. The Company’s obligation in respect of gratuity plan, which is a defined benefit
plan is provided for based on actuarial valuation carried out by an independent actuary using the projected unit credit method.

The estimates of future salary increase considered in the actuarial valuation takes into account factors like inflation,
seniority, promotion and other relevant factors such as supply and demand in the employment market. The expected
return on plan assets is based on actuarial expectation of the average long term rate of return expected on investments
of the Funds during the estimated term of the obligations.

Assumptions regarding future mortality and experience are set in accordance with published rates under Indian
assured lives mortality 2012-2014. The discount rate is based on the prevailing market yield in Indian government
securities as at balance sheet date for estimated term of obligation.

The average duration of the defined benefit plan obligation at the end of the reporting period is 5 years (31 March
2024: 4 years).

ii) Sensitivity analysis

Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions would have affected
the defined benefit obligation by the amounts shown below:

Terms and conditions:

(i) Purchases/sales of healthcare services are made from related parties on arm’s length basis and in the ordinary course
of business. The Company mutually negotiates and agrees the prices and payment terms with the related parties by
benchmarking the same to the transactions with non-related parties. These transactions generally include payment terms
of 30 to 120 days (31 March 2024: 30 to 120 days) from the date of invoice.

(ii) Trade receivables /payables are unsecured, interest free and require settlement in cash. No guarantee or other security
has been received against these . The amounts are recoverable / payable within 30 to 120 days from the reporting date
(31 March 2024: 30 to 120 days ). For the year ended 31 March 2025, the Company has not recorded any impairment on
receivables due from related parties (31 March 2024: Nil).

(iii) The Company has given loans to it's subsidiaries for general corporate purposes. These loans have been utilized by the
subsidiaries for the purpose these were obtained. The loans are unsecured, repayable in monthly instalments over a period
of 1 to 3 years from the date of disbursement and carries interest at the rate of 8% - 12% (31 March 2024: 8% - 9%). For
the year ended 31 March 2025, the Company has not recorded any impairment on loans due from the subsidiaries (31
March 2024: Nil). The Company has also provided corporate guarantees to it's subsidiaries and have charged commission
on arm’s length basis. No such guarantees are outstanding as at 31 March 2025

(iv) During the current year, the Company has sold land to one of it's related parties on arm’s length basis.

(v) * The amounts disclosed in the table are the amounts recognised as an expense during the financial year related to KMP.
The amounts do not include expense, if any, recognised toward post-employment benefits and other long-term benefits
of key managerial personnel. Such expenses are measured based on an actuarial valuation . Hence, amounts attributable
to KMPs are not separately determinable

2.29 Earnings per share (EPS)

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity shareholders of the Company by the
weighted average number of Equity shares outstanding during the year. The weighted average number of equity shares outstanding
during the period is adjusted for share split that have changed the number of equity shares outstanding, without a corresponding
change in reserves.

Diluted EPS amounts are calculated by dividing the profit attributable to owners of the company by the weighted average number of
Equity shares outstanding during the year plus the weighted average number of Equity shares that would be issued on conversion of
all the dilutive potential Equity shares into Equity shares. The weighted average number of equity shares including dilutive potential
equity shares , outstanding during the period is adjusted for share split that have changed the number of equity shares outstanding,
without a corresponding change in reserves.

2.30 Segment information

The Managing Director of the Company takes decision in respect of allocation of resources and assesses the performance
basis the report/ information provided by functional heads and are thus considered to be Chief Operating Decision Maker.
Based on the Company's business model, medical and healthcare services have been considered as a single business segment
for the purpose of making decision on allocation of resources and assessing its performance. Accordingly, there are no separate
reportable segments in accordance with the requirements of Ind AS 108 ‘Operating segment’ and hence, there are no additional
disclosures to be provided other than those already provided in the standalone financial statements. Presently, the Company’s
operations are predominantly confined in India. There are no individual customer contributing more than 10% of Company's
total revenue. All non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets of the
Company are located in India.

2.31 Due to Micro and Small Enterprises

The Ministry of Micro, Small and Medium Enterprises has issued an office memorandum dated 26 August 2008 which recommends
that the Micro and Small Enterprises should mention in their correspondence with its customers the Entrepreneurs Memorandum
Number as allocated after filing of the Memorandum. Accordingly, the disclosure in respect of the amount payable to such enterprises
as at 31 March 2025 has been made in the standalone financial statements based on information received and available with the
Company. Further in view of the Management, the impact of interest, if any, that may be payable in accordance with the provisions of
the Micro, Small and Medium Enterprises Development Act, 2006 ("The MSMED Act') is not expected to be material. The Company
has not received any claim for interest from any supplier.

No changes were made in the objectives, policies or processes for managing capital during and for year ended 31 March 2025
and 31 March 2024.

In order to achieve this overall objective, the Company’s capital management, amongst other things, aims to ensure that it meets
financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in
meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in
the financial covenants of any interest-bearing loans and borrowings during the current year which could result in the banks recalling
the loans earlier.

B. Measurement of fair values

The following methods and assumptions were used to estimate fair values:

(a) The fair values of Investment in mutual funds are based on the market value using net asset value. They are classified as
level 1 fair value hierarchy due to the use of quoted prices in an active market.

(b) The fair values for loans were calculated based on cash flows discounted using a current lending rate. They are classified
as level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including counterparty credit risk.

(c) The fair values of long term borrowings are based on discounted cash flows using a current borrowing rate. They are
classified as level 3 fair value hierarchy due to the use of unobservable inputs including own credit risk.

2.35 Financial instruments : Fair value and risk management (Contd..)

(d) The fair values of trade receivables, trade payables, other financials assets, other financial liabilities, current borrowings
and cash and cash equivalents and bank balances other than cash and cash equivalents are considered to be the same
as their carrying amounts, due to their short-term nature.

(e) The fair value of the derivative call option is determined using Monte Carlo simulation. The significant unobservable inputs
used in the fair value measurement are volatility and annual drift rate.

During the current year, the Company has entered into Operations and Management agreements with the LLPs/Companies
engaged in Healthcare Services as per which the Company will act as a Hospital Operator, on an exclusive basis, to run,
manage, operate and direct the Hospital and provide medical services to the Hospitals owned by the respective LLPs/
Companies. The Company has also entered into a Call Option Agreement whereby, the Company has a call option to buy
majority equity interest of those LLPs/Companies as per the agreed pricing terms of the call option. The options are exercisable
from January 2027 onwards. The Company accounts for such call options at fair value using Monte Carlo simulation model and
other valuation techniques.

Sensitivity analysis:

For the fair values of call option , reasonably possible changes at the reporting date to one of the significant unobservable
inputs, holding other inputs constant, would have the following effects.

(i) Risk management framework

The Company's Board of Directors have overall responsibility for the establishment and oversight of the Company's risk
management framework. The Board of Directors has established the risk management committee, which is responsible
for developing and monitoring the Company's risk management policies. The committee reports regularly to the Board of
Directors on its activities.

The Company’s risk management policies are established to identify and analyse the risks faced by the Company, to set
appropriate risk limits and controls to monitor risks and adherence to limits. Risk management policies and systems are
reviewed regularly to reflect changes in market conditions and Company’s activities. The Company, through its training
and management standards and procedures, aims to maintain a disciplined and constructive control environment in which
all the employees understand their roles and obligations.

The Company's audit committee oversees how management monitors compliance with the Company's risk management
policies and procedures and reviews the adequacy of risk management framework in relation to the risks faced by the
Company. The audit committee is assisted in its oversight role by the internal audit. Internal audit undertakes both regular
and ad hoc reviews of risk management controls and procedures, the results of which are reported to the audit committee.

(ii) Credit risk

Credit risk is the risk that the counterparty will not meet its obligation under a financial instrument or customer contract,
leading to financial loss. The credit risk arises principally from its operating activities (primarily trade receivables and
unbilled revenue) and from its investing activities, including deposits with banks and financial institutions and other
financial instruments. The carrying amounts of financial assets represent the maximum credit risk exposure.

Credit risk is controlled by analysing credit limits to whom credit has been granted after obtaining necessary approvals
for credit. The collection from the trade receivables and unbilled revenue are monitored on a continuous basis by the
receivables team.

The Company establishes an allowance for credit loss that represents its estimate of expected losses in respect of trade
receivables and unbilled revenue based on the past and the recent collection trend. The maximum exposure to credit risk
as at reporting date is primarily from trade receivables and unbilled revenue amounting to Rs. 2,381 as on 31 March 2025

The Company uses a provision matrix to determine the expected credit loss on the portfolio of its trade receivables and unbilled
revenue. The provision matrix is based on its historically observed default rates over the expected life of the trade receivables
and unbilled revenue and is adjusted for forward looking estimates. The expected credit loss allowance is based on the ageing
of the days the receivables are due in the provision matrix. Accordingly, the Company creates provision for past due receivables
less than one year ranging between 2% to 24% and beyond one year ranging between 40% to 100%. Set out below is the
information about the credit risk exposure of the Company’s trade receivables and unbilled revenue using provision matrix:

Customer Concentration

No single customer represents 10% or more of the Company’s total revenue during the year ended 31 March 2025 and 31
March 2024. Therefore the customer concentration risk is limited due to the large and unrelated customer base.

Credit risk on cash and cash equivalent is limited as the Company generally transacts with banks and financial institutions
with high credit ratings assigned by international and domestic credit rating agencies.

(iii) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial
liabilities that are settled by delivering cash or another financial asset. The Company has an established liquidity risk
management framework for managing its short term, medium term and long term funding and liquidity management
requirements. The Company's exposure to liquidity risk arises primarily from mismatches of the maturities of financial
assets and liabilities. The Company manages the liquidity risk by maintaining adequate funds in cash and cash equivalents.
The Company also has adequate credit facilities agreed with banks to ensure that there is sufficient cash to meet all its
normal operating commitments in a timely and cost-effective manner.

(v) Currency risk

Currency risk is the risk impact related to fair value or future cash flows of an exposure in foreign currency, which fluctuate
due to changes in foreign exchange rates. The Company's exposure to the risk of changes in foreign exchange rates relates
primarily to the foreign currency payables and receivables.The currency in which these transactions are denominated are
US dollar (USD). There are no outstanding balances in any other currency apart from USD. The Company evaluates
exchange rate exposure arising from foreign currency transactions.

2.37 Revenue from contracts with customers: (Contd..)

Contract liability: During the financial year ended 31 March 2025, the Company has recognised revenue of Rs.189 from advance
received from patients outstanding as on 31 March 2024. During the financial year ended 31 March 2024, the company has recognised
revenue of Rs. 127 from advance received from patients outstanding as on 31 March 2023. It expects similarly to recognise revenue
in year ended 31 March 2026 from the closing balance of advance from customers as at 31 March 2025.

Unbilled revenue: During the financial year ended 31 March 2025, the company has transferred Rs. 134 of unbilled revenue as at
31 March 2024 to trade receivables on completion of performance obligation. During the financial year ended 31 March 2024, the
company has transferred Rs. 98 of unbilled revenue as at 31 March 2023 to trade receivables on completion of performance obligation.

2.38 The Company has used accounting softwares for maintaining its books of account which has a feature of recording audit trail
(edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the softwares, except that
audit trail feature is not enabled at the database level insofar as it relates to one accounting software from 01 April 2024 to 25 March
2025. Further no instance of audit trail feature being tampered with was noted in respect of the accounting softwares where the audit
trail has been enabled. Additionally, the audit trail of prior year has been preserved by the Company as per the statutory requirements
for record retention to the extent it was enabled and recorded in the respective year.

2.40 Other Statutory Information

(i) The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company for
holding any Benami property.

(ii) The Company do not have any transactions with companies struck off.

(iii) The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

(iv) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.

(v) The Company have 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:

(a) 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

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

(vi) The Company have 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:

(a) 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

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

(vii) The Company do not have any 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.

(viii) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

(ix) The Company has not declared/paid any dividend during the year.

2.41 Events after the reporting period

There are no significant adjusting events that occurred subsequent to the reporting period.

As per our report of even date attached

for S.R. Batliboi & Associates LLP for and on behalf of the Board of Directors of

Chartered Accountants Krishna Institute of Medical Sciences Limited

ICAI Firm Registration no.: 101049W/ E300004

per Navneet Rai Kabra Dr. B Bhaskara Rao Dr. B Abhinay

Partner Managing Director Chief Executive Officer

Membership no.: 102328 DIN: 00008985 DIN: 01681273

Sachin Ashok Salvi J R Nagajayanthi

Chief Financial Officer Company Secretary

Membership no: FCS7148

Place: Hyderabad Place: Hyderabad

Date: 12 May 2025 Date: 12 May 2025