3.20. Provisions and contingencies

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the receivable is recognized as an asset, if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

Provisions for onerous contracts are recognized when the expected benefits to be derived by the Company from a contract are lower than the unavoidable costs of meeting the future obligations under the contract. Provisions for onerous contracts are measured at the present value of lower of the expected net cost of fulfilling the contract and the expected cost of terminating the contract.

3.21. Share issue expenses

Share issue expenses are adjusted against the securities premium account as permissible under Section 52 of the Companies Act, 2013, to the extent any balance is available for utilisation in the securities premium account.

3.22. Dividend

Final dividends on shares are recorded as a liability on the date of approval by the shareholders and interim dividends are recorded as a liability on the date of declaration by the Company's Board of Directors. The Company declares and pays dividends in Indian rupees.

3.23. Operating Cycle

Based on the nature of products / activities of the Company and the normal time between acquisition of assets and their realisation in cash or cash equivalents, the Company has determined its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and non-current.

3.24. Recent pronoucements

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 March 31,2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.

4 (v) Notes

(a) includes land in possession and occupation of the Company to the extent of 9 acre 25 guntas out of total 17 acres 44 guntas in Bangalore allotted by Karnataka Industrial Areas Development Board CKIADB¹) to the Company on lease cum sale basis for which the Company is yet to execute the sale deed as at 31 March 2024.

(b) During the year 2021-22, the Company has purchased a land to the extent of 14 khatha 22 chatak 47 sq ft land including building structure at South 24-Parganas, Thana: Purba Jadabpur, Corporation: Kolkata municipal corporation, Mukundapur, Road Zone: (E.M. Bye pass -- R.N. Tagore Hospital) Premises No: 1491 and 1563, Ward No: 109 from three individuals namely Mr.Uttam kundu, Mr.Manoj Kumar Jaiswal and Mr. Suji Kumar Jaiswal for which the Company executed the sale deed on 31 October 2021.

(c) Represents the cost of construction of building on land obtained on lease at Kolkata, Ahmedabad, Jaipur and Jamshedpur.

(d) During the year 2022-23, the Company has purchased a land measuring 1.0347 Hectares in Survey No. 323/2, 323/6 (Old Sy. No. 323/3), 324, 323/4( Old Sy. No. 323/2), 326/3, 326/4, 326/5, 326/6 and 326/8 at the said district as per the sale deed executed on 8 September 2022.

(e) As at 31 March 2024, property, plant and equipments with a carrying amount of H 8,097.49 million (previous year: H 6,763.42 million) are subject to first charge to secure bank loans.

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

(ii) Rights, preferences and restrictions attached to equity and preference shares :

The Company has equity shares having a nominal value of H 10 each. Accordingly, all equity shares rank equally with regard to dividend and share in the Company's residual assets. Each holder of equity shares is entitled to one vote per share. The equity shares are entitled to receive dividend as declared from time to time. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by shareholders.

The Company has authorized preference shares having a nominal value of H 10 each. Preference shares are nonconvertible, non-cumulative, non-participating and carry preferential right vis-a-vis equity shares of the Company with respect to payment of dividend and repayment in case of winding up or repayment of capital and shall carry voting rights as per the provisions of Section 47(2) of the Companies Act, 2013.

Capital reserve

Capital reserve was created at the time of acquisition of hospital in Barasat.

Securities premium

Securities premium is used to record the premium received on issue of shares. It is utilised in accordance with the provisions of the Companies Act, 2013

Treasury Shares

Own equity instruments that are reacquired (treasury shares) are recognised at cost and deducted from other equity.

Share options outstanding

The Company has established share based payment for eligible employees of the Company, its subsidiaries or an associate. Also refer note 39 for further details on these plans.

General reserve

General reserve is used from time to time to transfer profits from retained earnings for appropriate purposes.

Cash flow hedge reserve

Company has entered into a interest rate swap agreement, This cash flow hedge reserve reflects the fluctuations of the fair value of such swap.

Proposed Dividend

The Board of Directors have recommended a dividend of H 4 per share, for the year ended 31 March, 2024, for approval of shareholders of the Company at the ensuing Annual General Meeting (AGM). The payment of said dividend will be made within the statutorily prescribed time of 30 days from the date of approval by the Shareholders at the ensuing AGM.

(ii) Corporate social responsibility

Consequent to the requirements of Section 135 of the Companies Act 2013, the Company has made contributions as stated below. The same is in line with activities specified in Schedule VII of the Companies Act, 2013.

The Company's CSR activities primarily focuses on programs that aims to make a positive difference in the lives of the people by engaging in activities that eliminates or alleviates pain and suffering to the under privileged sections of the society by Promoting healthcare facilities for the upliftment of people at large and creating a positive impact by addressing issues of accessibility and affordability. Promoting educational facilities to help and assist in unfolding the creative potentials and talents of the children and amateurs.

Guarantees:

The Company has issued corporate guarantee to its subsidiaries amounting to H 810.00 million (previous year H 7,305.13

million) (refer note 45) and total loan outstanding as on 31 March 2024 is H 5,127.58 million ( previous year : H 2,157.17 million).

Within the overall limits of the Corporate guarantee, the Company has also committed towards making additional capital

contribution in certain subsidiaries, as applicable under the relevant loan agreements.

Note:

A. For financial year 2012-13, the Company has received a notice proposing levy of customs duty on import of 'Surgical

Microscopes' along with accessories classifying it under CTH 9018 9000 of Customs Tariff Act 1975. Against the demand of

H 1.74 million , the Company has deposited H 1.33 million with the department and filed an appeal before the Commissioner

of Customs ( Appeals), which is pending as at 31 March 2024.

B. Income Tax

a) For assessment year 2012-13 the Company had received an assessment order under section 143(3) of the Income Tax Act, 1961 on 31st March 2015. The company may have an additional liability of H 12.59 million on account of differential tax provision. The Company has filed an appeal against order issued by the department with the Commissioner of Income tax (Appeals) (CIT (A)). CIT(A) had issued an order in favour of the Company. The department then filed an appeal with the Income Tax Appellate Tribunal (ITAT) against the order of CIT(A). ITAT had issued an order in favour of the Company and referred to Assessing officer. The assessing officer issued revised assessment order u/s.143(3) r.w.s 254 on 27/09/2022 for disallowing of unpaid leave encashment of H 8.19 million. The company may have an additional liability of H 2.57 million as per the assessment order received however while issuing the assessment order the assessing officer has not given benefit of MAT credit of H 1.58 million. The company has filed rectification on 07/10/2023 against the assessment order.

b) For assessment year 2013-14 the Company had received an assessment order under section 143(3) of the Income Tax Act, 1961 on 25 March 2016. The company may have an additional liability of H 6.69 million on account of differential tax provision. The Company has filed an appeal against order issued by the department with the Commissioner of Income tax (Appeals) (CIT (A)) which is pending as at 31 March 2024.

c) For assessment year 2016-17 the company had received a notice 142(1) of the Income tax act, 1961 on 28 Mar 2018 asking company to submit certain documents on 6 April 2018. Company has replied on 6 April 2018, 24 July 2018, 29 August 2018, 7 December 2018. The department has issued a assessment order u/s 143(3) on 29 December 2018 demanding a sum of H 1.06 million. Against this demand, the Company had paid H 0.3 million under protest on 11 February 2019 and filed an appeal with the Commissioner of Income Tax (Appeals) (CIT(A)), which is pending as at 31 March 2024.

d) For assessment year 2017-18 the Company has received an assessment order under section 143(3) of the Income Tax Act, 1961 on 27 December 2019. The company may have an additional liability of H 20.93 million on account of differential tax provision. The Company has filed an appeal against order issued by the department with the Commissioner of Income tax (Appeals) (CIT (A)), which is pending as at 31 March 2024.

e) For assessment year 2018-19 the Company has received an assessment order under section 143(3) of the Income Tax Act, 1961 on 24 May 2021. The Company has filed an appeal against order issued by the department with the Commissioner of Income tax (Appeals) (CIT (A)), which is pending as at 31 March 2024.The department while issuing computation of total income for supporing to Assessemnt order not given effect of 35 AD, the company has

filed a request letter to assessing officer to rectify the mistake, the assessing officer considering the request letter, issued rectification assessement order on 17/03/2023. The company has also received notice u/s. 263 for revision assessment on 14/12/2023 from Principal Commission of Income Tax (PCIT) for asking us give the details of 35 AD deduction claimed for Gurugram unit & Mumbai unit and share issue expenses, The PCIT issued order u/s. 263 on 29/03/2024 and directed the AO to recheck & issue the assessment order, its pending with assessing officer.

f) For assessment year 2020-21 the Company has received an assessment order under section 143(3) of the Income Tax Act, 1961 on 23/09/2022. The Company has filed an appeal against order issued by the department with the Commissioner of Income tax (Appeals) (CIT (A)), which is pending as at 31 March 2024.

C. Goods and Services Tax(GST)

i) For the period July 2017 to March 2018 the company has received assessment order from the GST authority of West Bengal state under section 73(5) under GST Act, 2017. As per the order the company may have additional liability H 18.75 million on account of differential tax provisions. The company has filed an appeal against the assessment order issued by department before the first appellate authority on 5th July 2023 which is pending as at 31 March 2024.

ii) For the Financial year 2018-19, the company has received assessment order from the GST authority Karnataka state under section 73(9) under GST Act, 2017. As per the order the company may have additional liability H 3.96 million on account of differential tax provisions. The company has decided to file an appeal against the order.

D. Based on the advise of its legal counsel, the Company believes that other disputes, lawsuits and claims, including commercial matters, which arise from time to time in the ordinary course of business and are outstanding as at 31 March 2024 will not have any material adverse effect on its financial statements for the year ended 31 March 2024.

32 Segment information Operating segments

ind AS 108 “Operating Segment" (“Ind AS 108") establishes standards for the way that public business enterprises report information about operating segments and related disclosures about products and services, geographic areas, and major customers. Based on the "management approach" as defined in ind AS 108, Operating segments are to be reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker (CODM).The CODM evaluates the Company's performance and allocates resources on overall basis. The Company's sole operating segment is therefore ‘Medical and Healthcare Related Services'. Accordingly, there are no additional disclosures to be provided under ind AS 108, other than those already provided in the financial statements.

Entity wide disclosures -Information about geographical areas

Geographical information analyses the company's revenue and non current assets by the Company's country of domicile (i.e. India) and other countries. in presenting the geographical information, segment revenue has been based on the geographical location of the customers and segment assets which have been based on the geographical location of the assets.

34 Employee benefits Defined contribution plan

The Company makes contributions towards provident fund and employee state insurance to a defined contribution retirement benefit plan for qualifying employees. Under the plan, the Company is required to contribute a specified percentage of payroll cost to the retirement benefit plan to fund the benefits.

The amount recognised as an expense towards contribution to Provident Fund and Employee State Insurance for the year aggregated to H 272.85 million (previous year: H 291.32 million)

Defined benefit plan

The Company operates post-employment defined benefit plan that provide gratuity. The gratuity plan entitles an employee, who has rendered at least five years of continuous service, to receive one-half month's salary for each year of completed service at the time of retirement/exit. The gratuity fund is administered by a trust formed for this purpose and is managed by Kotak Life Insurance. The Company's obligation in respect of the 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 Company recognizes actuarial gains and losses immediately in the statement of profit and loss. The Company accrues gratuity as per the provisions of the Payment of Gratuity Act, 1972 as applicable as at the balance sheet date.

35 Due to Micro, Small and Medium 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 amounts payable to such enterprises as at 31 March 2024 has been made in the 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.

36 Leases

The Company has adopted ind AS 116 'Leases', effective annual reporting period beginning April 1,2019. Ind AS 116 replaces Ind AS 17 - Leases and related interpretation and guidance. The Company has applied the standard to its leases, using the modified retrospective approach, with the cumulative effect of initially applying the Standard, recognized on the date of initial application (April 1,2019). Comparative information has not been restated.

Accordingly, the Company recorded the lease liability at the present value of the lease payments discounted at the incremental borrowing rate and the right of use asset at its carrying amount as if the standard had been applied since the commencement date of the lease, but discounted at the Company's incremental borrowing rate at the date of initial application.

in adopting ind AS 116, the Company has applied the below practical expedients:

The Company has applied a single discount rate to a portfolio of leases with reasonably similar characteristics

The Company has treated the leases with remaining lease term of less than 12 months as if they were "short term leases

The Company has not applied the requirements of ind AS 116 for leases of low value assets

The Company has used hindsight, in determining the lease term if the contract contains options to extend or terminate the lease

37 Earnings/ (loss) per share (EPS)

Basic earnings per share

The calculation of basic earnings per share for the year ended 31 March 2024 was based on profit/(loss) attributable to equity shareholders of H 4,245.17 million (previous year: H 2,656.39 million) and weighted average number of equity shares outstanding 203,069,835 (previous year: 203,069,835).

Diluted earnings per share

The calculation of diluted earnings per share for the year ended 31 March 2024 was based on profit/(loss) attributable to equity shareholders of H 4,245.17 million (previous year: (H 2,656.36 million) and weighted average number of equity shares outstanding after adjustment for effects of all the dilutive potential equity shares.

39 Share based payments

During the year ended 31 March 2016, the Company introduced the NH ESOP 2015 ("NH ESOP”) for the benefit of the employees of the Company, its subsidiaries and associates, as approved by the Board of Directors in its meeting held on 12 September 2015. NH ESOP 2015 provides for the creation and issue of 2,040,000 share options that would eventually convert into equity shares of H 10 each in the hands of the employees of the Company, its subsidiaries and associate. The options are to be granted to the eligible employees as per the eligibility criteria as determined by the Nomination and Remuneration Committee at its sole discretion. In case of plan one, the share options vest in a graded manner over a period of four years and are exercisable in one or more tranches within a period of four years from the date of first vesting, failing which the options shall lapse. In case of plan two, The share options vest in a graded manner over a period of two and half years and are exercisable in one or more tranches within a period of Three years from the date of first vesting, failing which the options shall lapse.

Pursuant to NH ESOP, the Company granted 988,787 share options till 31 March 2024. The Stock compensation cost is computed under the Fair value method. For the year ended 31 March 2024, the Company has recorded stock compensation expenses of H NIL (previous year: H NIL) and liability as on 31 March 2024 is H NIL ( previous year: H 6.29 million).

40 Service Concessionaire Arrangement

The Company had entered into an agreement with National Rural Health Mission, Assam (NRHM) on 16 August 2012 (“effective date") to set up a super specialty hospital in Guwahati and to operate and manage such hospital for a period of 30 years. As per the agreement, NRHM will provide H 220.00 million in three instalments over a period of 1 year during execution of the project besides the existing hospital building on as is where is basis. The Company has received H 220.00 million as it met all the conditions relating to the grants. As per the terms of the agreement, the Company has entered into lease agreement with NRHM for existing building and land for a lease period of 30 years.

Also, as per the agreement not less than 50% of the hospitals beds shall be charged at 1.85% below the National Accreditation Board for Hospitals and Healthcare Providers (NABH) accredited hospital rates applicable. All the surgical, observational and other procedures for which super speciality rates are available in Central Government Health Scheme (CGHS) schedule, such rates quoted in CGHS schedule shall apply and for which it is not available, NABH accredited hospital rates shall apply.

The Company has established a super-speciality hospital providing all the necessary services and for that it has to bear all the expenses in setting up the facilities mentioned in the agreement and thereafter run the hospitals on a day to day basis.

The term of the agreement is to commence on the effective date and will continue until the expiration of 30 years on 15th August 2042. Thereafter, this agreement shall be renewed for such additional periods and on such terms and conditions as may be mutually agreed to by the parties to the agreement. The agreement can be terminated by the both the parties by mutual written agreement or if the other party breach or fail to perform any of its covenants or agreement or if any representation or warranty of the other party under this agreement shall have become untrue.

41 Capital management

The Company's policy is to maintain a stable capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. Management monitors capital on the basis of return on capital employed as well as the debt to total equity ratio.

For the purpose of debt to total equity ratio, debt considered is long-term and short-term borrowings. Total equity comprise of issued share capital and all other equity reserves.

42 Acquisition of Orthopaedic and Trauma Hospital ("Sparsh Hosur Road" Unit) from Shiva and Shiva Orthopaedic Hospital Private Limited

During the previous year ended 31st March 2023,the Company had signed a Business Transfer Agreement (BTA) on September 5, 2022 with Shiva and Shiva Orthopaedic Hospital Private Limited to acquire its Orthopaedic and Trauma Hospital ("Sparsh Hosur Road" Unit), effective from October 1,2022 mainly engaged in providing Orthopaedic and Trauma healthcare services as a going concern on slump sale basis for an aggregate cash consideration of H 2,000 million.

This acquisition has enabled the Company to foray into the Orthopaedic and Trauma specialty at the Narayana Health City Campus, housing two flagship hospitals, namely the cardiac sciences - focussed Narayana Institute of Cardiac Sciences (NICS) and the multispecialty unit i.e., Mazumdar Shaw Medical Centre (MSMC). The acquisition also reinforces the Company's focus on multispecialty care, especially orthopaedics and associated trauma and neurosciences segments and further augment its core Bangalore regions to derive synergies from our existing operations.

a) Business Combination

The above transaction qualified for the Business Combination as per Ind AS 103 - 'Business Combination' and has been accounted by applying the acquisition method wherein idenfiable assets acquired and liabilities assumed are fair valued against the fair value of the consideration transferred and resultant intangibles including goodwill recognised.

Measurement of fair values

The carrying value of all financial assets approximates the fair value.

B. Financial risk management

The Company's activities expose it to a variety of financial risks: credit risk, market risk and liquidity risk.

(i) Risk management framework

The Company's risk management is carried out by a central treasury department under policies approved by the Board of Directors. The Board supervises overall risk management, as well as policies covering specific areas, such as foreign exchange risk, credit risk and use of financial instruments.

(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 from its investing activities, including deposits with banks and financial institutions and other financial instruments.

Credit risk is controlled by analysing credit limits and creditworthiness of customers on a continuous basis to whom credit has been granted after obtaining necessary approvals for credit. The collection from the trade receivables 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 and other receivables based on the past and the recent collection trend. The maximum exposure to credit risk as at reporting date is primarily from trade receivables amounting to H 2,253.95 million (previous year: H 2,145.86 million). The movement in allowance for credit loss in respect of trade and other receivables during the year was as follows:

(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's approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company's reputation. In addition, the Company maintains line of credit as stated in Note 16.

(iv) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices, such as foreign exchange rates, interest rates and equity prices.

(a) Foreign currency risk

The Company is exposed to currency risk to the extent that there is a mismatch between the currencies in which sales, purchases and borrowings are denominated and the respective functional currencies of the company. The functional currency of company is H. The currencies in which these transactions are primarily denominated is US dollars.

Notes

EBIT - Earnings before interest and taxes

PAT - Profit after taxes

Debt includes current and non-current debt

Capital employed refers to total shareholders' equity, deferred tax liability and debt Investments includes current quoted investment

Earning available for debt service refers to addition of PAT, depreciation, interest Explanation for variances exceeding 25%:

¹ Current ratio in current year increased due to increase in investment, Inventory and Cash and Cash equivalent as at year end when compared to previous year.

² Debt Equity ratio increased due to increase in borrowing (including the NCD issued) during the current year as compared to previous year

³ Return on equity ratio improved due to improvement in PAT when compared to previous year

⁴ Inventory turnover ratio decreased due to increase in inventory when compared to previous year

⁵ Net capital turnover ratio, Net profit ratio have increased due to improvement in Revenue, Net profit and EBIT numbers respectively when compared to previous year

⁶ Return on investment has decreased due to OCD issue in the current year.

45 During the year ended 31 March 2023, the Company had provided guarantee amounting to USD 79 Million for the loan obtained by Health City Cayman Islands (HCCI) from First Caribbean International Bank (FCIB) and signed Loan Agreement and Capital Contribution Agreement. In the event of HCCI defaulting for the third time in the repayment of loan/interest or any dues to FCIB, FCIB would have a right to release the Corporate Guarantee of USD 79 Million given by the Company from the Escrow Agent (refer note 31(c) & 33(c)). In such event, the liability of the Company towards the Corporate Guarantee would be for the entire value of USD 79 Million. As of the date of this balance sheet, HCCI has paid all its dues and has not defaulted in the repayment of any dues and the outstanding loan amount as of 31st March 2024 is USD 7 million (previous year USD 23.08 Million).

During the current year, FCIB has executed the ""Deed of Release"" on 15 September 2023 and cancelled the corporate guarantee of USD 79 Million.

46 During the current year the Company has incorporated the following wholly owned subsidiaries;

a) Narayana Health Insurance Limited (NHIL) on May 24, 2023 to carry on the business of Health Insurance and has infused H 1,000 Million into NHIL to meet the minimum capital requirement norms as per Insurance Regulatory and Development Authority of India (IRDAI). NHIL has been granted license by IRDAI dated January 3, 2024. As on March 31,2024, NHIL is yet to commence its operations.

b) Samyat Healthcare Private Limited (SHPL) on July 4, 2023 to carry on the business of distribution of medicines, implants, medical equipments, consumables and other goods and assets as are used by hospitals. SHPL has commenced its operations from December 1,2023.

c) Medha AI Private Limited (MAIPL) on Dec 15, 2023 to carry on the business of building or distributing platforms of all kinds of information technology services. MAIPL has commenced its operations from February 16, 2024.

47 Other Statutory Information

(i) There are no balance outstanding on account of any transaction with companies struck off under Section 248 of the Companies Act 2013 or Section 560 of Companies Act 1956

(ii) The Company do not have any Capital-work-in progress or intangible assets under development whose completion is overdue or has exceeded its cost compared to its original plan.

(iii) 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 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

(iv) 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

(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

(v) The company doesn't have any transactions relating to previously unrecorded income that were surrendered or disclosed as income in the tax assessments under the Income Tax Act, 1961 (43 of 1961) during the year

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

48 As per the requirement of the rule 3(1) of the Companies (Accounts) Rules, 2014, the Company uses only such accounting softwares for maintaining its books of account that have a feature of recording audit trail of each and every transaction creating an edit log of each change made in the books of account. This feature of recording the audit trail has operated throughout the year and was not tampered with during the year. However in respect of two accounting softwares, audit trail was not enabled at the database level.

The Company has established and maintained an adequate internal control framework over its financial reporting and based on its assessment, has concluded that the internal controls for the year ended 31 March 2024 were effective.

for and on behalf of the Board of Directors of Narayana Hrudayalaya Limited

Dr. Emmanuel Rupert Viren Prasad Shetty

Managing Director Whole - time Director

DIN: 07010883 DIN: 02144586

Sandhya Jayaraman Sridhar S

Chief Financial Officer Company Secretary

Place: Bengaluru Place: Bengaluru

Date: 24 May 2024 Date: 24 May 2024