4.7 Provisions, Contingent Liabilities and Contingent
Assets
Provisions are recognized if, as a result of a past event, the
Company has a present legal or constructive obligation
that can be estimated reliably, and it is probable that an
outflow of economic benefits will be required to settle
the obligation. If the effect of the time value of money is
material, provisions are discounted using a current pre tax
rates that reflects, where appropriate, the risks specific to
the liability. Where discounting is used, the increase in the
provision due to the passage of time is recognized as a
finance cost.
A provision for onerous contract is recognized when the
expected benefits to be derived by the Company from a
contract are lower than the unavoidable cost of meeting its
obligations under the contract. The provision is measured
at the present value of the lower of the expected cost
of terminating the contract and the expected net cost
of continuing with the contract. Before a provision is
established, the Company recognizes any impairment loss
on the assets associated with the contract.
Contingent liabilities are not recognised in the financial
statements. A contingent asset is neither recognised nor
disclosed in the financial statements.
4.8 Revenue Recognition
(a) Rendering of Services
Healthcare Services
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 is recorded
and recognised during the period in which the
hospital service is provided, based upon the amounts
due from patients and/or medical funding entities.
Unbilled revenue is recorded for the service where
the patients are not discharged and invoice is not
raised for the service.
Other Services
Income from Clinical trials on behalf of Pharmaceutical
Companies is recognized on completion of the
service, based on the terms and conditions specified
to each contract.
Other services fee is recognized on basis of the
services rendered and as per the terms of the
agreement.
(b) Sale of Goods
Pharmacy Sales are recognised when the significant
risks and rewards of ownership and control is
transferred to the customer. Revenue is measured
at the fair value of the consideration received
or receivable, taking into account contractually
defined terms of payment and excluding taxes
or duties collected on behalf of the government.
Revenue is reduced for rebates granted upon
purchase and are stated net of returns and discounts
wherever applicable. Sales are adjusted for Value
Added Tax/GST wherever applicable.
(c) Dividend and Interest Income
Dividend income from investments is recognised
when the right to receive payment has been
established (provided that it is probable that the
economic benefits will flow to the Company and the
amount of income can be measured reliably).
Interest income from a financial asset is recognised
when it is probable that the economic benefits will
flow to the Company and the amount of income can
be measured reliably. Interest income is accrued on a
time basis, by reference to the principal outstanding
and at the effective interest rate applicable, which is
the rate that exactly discounts estimated future cash
receipts through the expected life of the financial
asset to that asset's net carrying amount on initial
recognition.
4.9 Leases
Company as a lessee
At the date of commencement of the lease, the
Company recognizes a right-of-use asset ("ROU") and a
corresponding lease liability for all lease arrangements in
which it is a lessee, except for leases with a term of twelve
months or less (short-term leases) and low value leases.
For these short-term and low value leases, the Company
recognizes the lease payments as an operating expense.
The right-of-use assets are initially recognized at cost,
which comprises the initial amount of the lease liability
adjusted for any lease payments made at or prior to the
commencement date of the lease plus any initial direct
costs less any lease incentives. They are subsequently
measured at cost less accumulated depreciation and
impairment losses.
Right-of-use assets are depreciated from the
commencement date on a straight-line basis over the
shorter of the lease term and useful life of the underlying
asset. Right of use assets are evaluated for recoverability
whenever events or changes in circumstances indicate
that their carrying amounts may not be recoverable.
For the purpose of impairment testing, the recoverable
amount (i.e. The higher of the fair value less cost to sell
and the value-in-use) is determined on an individual asset
basis unless the asset does not generate cash flows that
are largely independent of those from other assets. In such
cases, the recoverable amount is determined for the Cash
Generating Unit (CGU) to which the asset belongs.
The lease liability is initially measured at amortized
cost at the present value of the future lease payments.
The lease payments are discounted using the interest
rate implicit in the lease or, if not readily determinable,
using the incremental borrowing rates. Lease liabilities
are remeasured with a corresponding adjustment to
the related right of use asset if the Company changes its
assessment if whether it will exercise an extension or a
termination option.
Lease liability and ROU asset have been separately
presented in the Balance Sheet and finance cost portion
of lease payments have been classified as financing cash
flows.
Company as a lessor
At the inception of the lease, the Company classifies
each of its leases as either an operating lease or a finance
lease. The Company recognizes lease payments received
under operating leases as income over the lease term on
a straight-line basis.
4.10 Foreign Currency Translation
The functional currency of the Company is the Indian
Rupee (?)
Exchange differences on monetary items are recognised
in the Statement of profit and loss in the period in which
they arise except for:
(i) 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;
(ii) exchange differences arising from translation
of long-term foreign currency monetary items
recognised in the financial statements of the
Company for the period immediately before the
beginning of the first Ind AS financial reporting
period (prior to April 1, 2016), as per the previous
GAAP, pursuant to the Company's choice of availing
the exemption as permitted by Ind AS 101.
Non-monetary assets and liabilities that are measured
in terms of historical cost in foreign currencies are not
retranslated.
Income and expense items in foreign currency are
translated at the average exchange rates for the period,
unless exchange rates fluctuate significantly during that
period, in which case the exchange rates at the dates of
the transactions are used.
4.11 Borrowing Costs
Borrowing costs include
a) interest expense calculated using the effective
interest rate method,
b) finance charges in respect of finance leases, and
c) Exchange differences arising from foreign currency
borrowings to the extent that they are regarded as
an adjustment to interest costs.
Borrowing costs directly attributable to the acquisition,
construction or production of qualifying assets, which are
assets that necessarily take a substantial period of time
to get ready for their intended use or sale, are added to
the cost of those assets, until such time as the assets are
substantially ready for their intended use or sale.
Interest income earned on the temporary investment
of specific borrowings pending their expenditure on
qualifying assets is deducted from the borrowing costs
eligible for capitalization.
All other borrowing costs are recognised in the
statement of profit and loss in the period in which they
are incurred.
4.12 Government Grants
Government grants are not recognised until there is
reasonable assurance that the Company will comply with
the conditions attaching to them and that the grants will
be received.
When the grant relates to an asset, it is treated as deferred
income and released to the statement of profit and loss
over the expected useful lives of the assets concerned.
When the Company receives grants of non-monetary
assets, the asset and the grant are recorded at fair value
amounts and released to statement of profit and loss over
the expected useful life in a pattern of consumption of the
benefit of the underlying asset. Government grants that
are receivable as compensation for expenses or losses
already incurred or for the purpose of giving immediate
financial support to the Company with no future related
costs are recognised in statement of profit and loss in the
period in which they become receivable.
4.13 Employee benefits
(a) Short-term obligations
Liabilities for salaries, including other monetary
and non-monetary benefits that are expected to be
settled wholly within 12 months after the end of the
period in which the employees render the related
service are recognised in respect of employees'
services up to the end of the reporting period and
are measured at the amounts expected to be paid
when the liabilities are settled. The liabilities are
presented as current employee benefit obligations
in the balance sheet.
(b) Post-employment obligations
The Company operates the following
post-employment schemes: a) defined contribution
plans - provident fund b) defined benefit plans -
gratuity plans
(i) Defined contribution plans
The Company has defined contribution plan
for the post-employment benefits namely
Provident Fund, Employees Death Linked
Insurance and Employee State Insurance and
the contributions towards such funds and
schemes are recognised as employee benefits
expense and charged to the Statement of Profit
and Loss when they are due. The Company does
not carry any further obligations with respect
to this, apart from contributions made on a
monthly basis.
(ii) Defined benefit plans
The Company has defined benefit plan, namely
gratuity for eligible employees in accordance
with the Payment of Gratuity Act, 1972 the
liability for which is determined on the basis of
an actuarial valuation (using the Projected Unit
Credit method) at the end of each year.
The present value of the defined benefit
obligation is determined by discounting the
estimated future cash outflows by reference
to market yields at the end of the reporting
period on government bonds that have terms
approximating to the tenor of the related
obligation. The liability or asset recognized in
the balance sheet in respect of gratuity is the
present value of the defined benefit obligation
at the end of the reporting period less the fair
value of plan assets.
The service cost (including current service cost,
past service cost, as well as gains and losses on
curtailments and settlements) is recognised in
the Statement of profit and loss in the line item
'Employee benefits expense'.
Remeasurement's of the net defined liability,
comprising of actuarial gains and losses, return
on plan assets (excluding amounts included
in net interest on the net defined benefit
liability) and any change in the effect of asset
ceiling (excluding amounts included in net
interest on the net defined benefit liability), are
recognised immediately in the balance sheet
with a corresponding debit or credit to retained
earnings through Other Comprehensive
Income (OCI) in the period in which they occur.
Remeasurement's are not reclassified to profit
or loss in subsequent periods.
Change in the present value of the defined
benefit obligation resulting from plan
amendments or curtailments are recognised
immediately in the profit or loss as past service
cost.
[c) Compensated Absences
Compensated absences which are not expected
to occur within twelve months after the end of the
period in which the employee renders the related
services are recognised at an actuarially determined
liability at the present value of the defined benefit
obligation at the Balance sheet date. In respect of
compensated absences expected to occur within
twelve months after the end of the period in which
the employee renders the related services, liability
for short-term employee benefits is measured at the
undiscounted amount of the benefits expected to be
paid in exchange for the related service.
(d) Equity-settled share-based payments (ESOP)
Equity-settled share-based payments to employees
are measured at the fair value of the options at the
Grant date. The fair value of option at the grant
date is expensed over the vesting period with
a corresponding increase in equity as "Equity
settled share based payments". In case of forfeiture
of unvested option, portion of amount already
expensed is reversed. In a situation where the
vested option forfeited or expires unexercised, the
related balance standing to the credit of the "Equity
settled share based payments" are transferred to the
"Retained Earnings".
When the options are exercised, the ESOP Trust
transfer equivalent number of shares of the company
of ? 10/ each fully paid up to grantees. The proceeds
received and the related balance standing to credit of
the Equity settled share based payments, are credited
to share capital (nominal value) and Securities
Premium, if any.
4.14 Income Taxes
Income tax expense represents the sum of the tax currently
payable and deferred tax
(i) Current tax
The tax currently payable is based on taxable profit
for the year. Taxable profit differs from 'profit before
tax' as reported in the standalone statement of profit
and loss because of items of income or expense that
are taxable or deductible in other years and items
that are never taxable or deductible. The Company's
current tax is calculated using tax rates that have
been enacted or substantively enacted by the end
of the reporting period.
(ii) Deferred Tax
Deferred tax is recognised on temporary differences
between the carrying amounts of assets and liabilities
in the financial statements and the corresponding
tax bases used in the computation of taxable profit.
Deferred tax liabilities are generally recognised
for all taxable temporary differences. Deferred tax
assets are generally recognised for all deductible
temporary differences to the extent that it is probable
that taxable profits will be available against which
those deductible temporary differences can be
utilised. Such deferred tax assets and liabilities are
not recognised if the temporary difference arises
from the initial recognition of assets and liabilities in
a transaction that affects neither the taxable profit
nor the accounting profit.
The carrying amount of deferred tax assets is
reviewed at the end of each reporting period and
reduced to the extent that it is no longer probable
that sufficient taxable profits will be available to allow
all or part of the asset to be recovered.
Deferred tax liabilities and assets are measured at
the tax rates that are expected to apply in the period
in which the liability is settled or the asset realized,
based on tax rates (and tax laws) that have been
enacted or substantively enacted by the end of the
reporting period.
The measurement of deferred tax liabilities and assets
reflects the tax consequences that would follow from
the manner in which the Company expects, at the
end of the reporting period, to recover or settle the
carrying amount of its assets and liabilities.
Deferred tax assets include Minimum Alternate Tax
(MAT) paid in accordance with the tax laws in India,
which is likely to give future economic benefits in
the form of availability of set-off against future tax
liability. Accordingly, MAT is recognised as deferred
tax asset in the Balance sheet when the asset can be
measured reliably and it is probable that the future
economic benefit associated with the asset will be
realized.
No DTA is recognized for goodwill arising on business
combination.
(iii) Current and deferred tax for the year
Current and deferred tax are recognised in the
Statement of profit and loss, except when they relate
to items that are recognised in other comprehensive
income or directly in equity, in which case, the
current and deferred tax are also recognised in
other comprehensive income or directly in equity
respectively. Where current tax or deferred tax
arises from the initial accounting for a business
combination, the tax effect is included in the
accounting for the business combination.
4.15 Business Combinations
The acquisition method of accounting is used to account
for all business combinations, regardless of whether equity
instruments or other assets are acquired. The consideration
transferred for the acquisition comprises the:
a) fair values of the assets transferred;
b) liabilities incurred to the former owners of the
acquired business;
c) equity interests issued by the Company; and
d) fair value of any asset or liability resulting from a
contingent consideration arrangement.
Identifiable assets acquired and liabilities and contingent
liabilities assumed in a business combination are, with
limited exceptions, measured initially at their fair values
at the acquisition date. The company recognizes any
non-controlling interest in the acquired entity on an
acquisition-by-acquisition basis either at fair value or at
the non-controlling interest's proportionate share of the
acquired entity's net identifiable assets. Acquisition-related
costs are expensed as incurred.
The excess of the consideration transferred, amount of
any non-controlling interest in the acquired entity, and
acquisition-date fair value of any previous equity interest in
the acquired entity over the fair value of the net identifiable
assets acquired is recorded as goodwill. If those amounts
are less than the fair value of the net identifiable assets of
the business acquired, the difference is recognised in other
comprehensive income and accumulated in equity as capital
reserve provided there is clear evidence of the underlying
reasons for classifying the business combination as a
bargain purchase. In other cases, the bargain purchase gain
is recognised directly in equity as capital reserve.
Where settlement of any part of cash consideration is
deferred, the amounts payable in the future are discounted
to their present value as at the date of exchange.
The discount rate used is the entity's incremental
borrowing rate, being the rate at which a similar borrowing
could be obtained from an independent financier under
comparable terms and conditions.
Contingent consideration is classified either as equity or a
financial liability. Amounts classified as a financial liability
are subsequently remeasured to fair value with changes in
fair value recognised in profit or loss.
If the business combination is achieved in stages, the
acquisition date carrying value of the acquirer's previously
held equity interest in the acquire is remeasured to fair
value at the acquisition date. Any gains or losses arising
from such remeasurement are recognised in profit or loss
or other comprehensive income, as appropriate.
4.16 Derivative financial instruments
Derivatives are initially recognised at fair value at the
date the derivative contracts are entered into and are
subsequently re-measured to their fair value at the end of
each reporting period. Derivatives are carried as financial
assets when the fair value is positive and as financial
liabilities when the fair value is negative.
4.17 Earnings per share
The Company presents basic and diluted earnings per share
(EPS) data for its ordinary shares. Basic EPS is calculated
by dividing the profit or loss attributable to the ordinary
shareholders of the company by the weighted average
number of ordinary shares outstanding during the period.
Where ordinary shares are issued but not fully paid, they
are treated in the calculation of basic earnings per share
as a fraction of an ordinary share to the extent that they
were entitled to participate in dividends during the period
relative to a fully paid ordinary share. Diluted earnings per
share is computed by dividing the net profit after tax by the
weighted average number of equity shares considered for
deriving basic EPS and also weighted average number of
equity shares that could have been issued upon conversion
of all dilutive potential equity shares. Dilutive potential
equity shares are deemed converted as of the beginning of
the period, unless issued at a later date. Dilutive potential
equity shares are determined independently for each
period presented.
4.18 Fair Value Measurement
Fair value is the price that would be received to sell
an asset or settle a liability in an ordinary transaction
between market participants at the measurement
date. The fair value of an asset or a liability is measured
using the assumption that market participants would
use when pricing an asset or a liability acting in their
best economic interest. The Company used valuation
techniques, which were appropriate in circumstances
and for which sufficient data were available considering
the expected loss/ profit in case of financial assets or
liabilities.
4.19 Cash and cash equivalent
The Company considers all highly liquid financial
instruments, which are readily convertible into known
amounts of cash that are subject to an insignificant risk
of change in value and having original maturities of three
months or less from the date of purchase, to be cash
equivalents. Cash and cash equivalents consist of balances
with banks which are unrestricted for withdrawal and
usage.
4.20 Segment Reporting
Identification of segments: Segments are identified in
line with Ind AS - 108 "Operating Segments", taking into
consideration the internal organization and management
structure as well as the differential risk and returns of the
segment.
The Company is mainly engaged in the business of setting
up and managing hospitals and medical diagnostic
services which constitute a single business segment.
These activities are mainly conducted only in one
geographical segment viz, India. Therefore, the disclosure
requirements under the Ind AS 108 "Operating Segments"
are not applicable.
Segment Policies: The Company prepares its segment
information in conformity with the accounting policies
adopted for preparing and presenting the financial
statements of the Company as a whole.
4.21 Cash Flow Statement
Cash flows are reported using the indirect method,
whereby net profit before tax is adjusted for the effects
of transactions of a non-cash nature and any deferrals
or accruals of past or future cash receipts or payments.
The cash flows from operating, investing and financing
activities of the Company are segregated.
4.22 Investment in Subsidiaries
(i) Initial recognition
The acquired investment in subsidiaries are measured
at fair value as on the date of acquisition
(ii) Subsequent measurement
Investment in equity shares of subsidiaries are
accounted either;
(a) at cost, or
(b) n accordance with IND AS 109, financial
instruments
The Company has elected to account its subsidiaries at cost
less accumulated impairment losses, if any.
NOTE 4(B): RECENT ACCOUNTING PRONOUNCEMENTS
Ministry Ministry of Corporate Affairs ("MCA") notifies new
standards or amendments to the existing standards under
Companies (Indian Accounting Standards) Rules, 2015 as issued
from time to time. For the year ended March 31,2025, MCA has
notified IND AS - 117 Insurance Contracts, amendments to IND
AS 116 - Leases, relating to sale and leaseback transactions,
applicable to the Company w.e.f. April 1,2024 and amendment
to IND AS 21 - The Effects of Changes in Foreign Exchange
Rates, relating to currency exchangeability and applicability of
conversion rates, applicable to the Company w.e.f. April 1,2025.
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.
Note 18.2 Rights, Preferences and Restrictions
The Authorised Share Capital of the Company consists of Equity Shares having nominal value of ? 10/- each. The rights and privileges
to equity shareholders are general in nature and allowed under Companies Act, 2013.
The equity shareholders shall have:
(i) a right to vote in shareholders' meeting. On a show of hands, every member present in person shall have one vote and on a
poll, the voting rights shall be in proportion to his share of the paid up capital of the Company;
(ii) a right to receive dividend in proportion to the amount of capital paid up on the shares held.
The shareholders are not entitled to exercise any voting right either in person or through proxy at any meeting of the Company if
calls or other sums payable have not been paid on due date.
In the event of winding up of the Company, the distribution of available assets/losses to the equity shareholders shall be in
proportion to the paid up capital.
Nature and Purpose of other reserves
Securities Premium: The amount received in excess of face value of the equity shares is recognised in Share Premium Reserve.
This is not available for distribution of dividend but can be utilised for issuing bonus shares.
Capital Redemption Reserve: In terms of provisions contained in Section 55 of the Companies Act 2013, the Company has, upon
redemption of Preference Shares pursuant to resolution passed at the meeting held on 20th December 2016, transferred the amount
equivalent to the face value of Preference Shares from the accumulated profits to Capital Redemption Reserve. This fund can be
utilized only for issuing fully paid bonus shares. No dividends can be distributed out of this fund.
Retained Earnings: Retained Earnings represents surplus/accumulated earnings of the Corporation and are available for distribution
to shareholders.
Reserve for Shared based Payment : The Reserve for shared based payments account is used to record fair value of equity-settled,
share based payment transaction with employees. The amounts recorded in reserver for shared based payment accounts are
transferred to security premium upon the excersise of the stock options and transfer to the general reserve on accounts of stock
option not excercise by employee.
NOTE 37: EMPLOYEE BENEFITS
Note 37.1 Defined contribution plan
The Company has defined contribution plan in form of Provident Fund & Pension Scheme and Employee State Insurance Scheme
for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to
fund the benefits. The total expense recognised in the Statement of profit and loss under employee benefit expenses in respect of
such schemes are given below:
Note 37.2 Defined benefit plan
(a) Gratuity
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 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 other comprehensive income, net of taxes. The Company accrues gratuity
as per the provisions of the Payment of Gratuity Act, 1972 as applicable as at the balance sheet date. The Company contributes
all ascertained liabilities towards gratuity to the Fund. The plan assets have been primarily invested in insurer managed funds.
The company provides for gratuity, a defined benefit retiring plan covering eligible employees. The Gratuity plan provides a
lump sum payment to the vested employees at retirement, death, incapacitation or termination of employment based on the
respective employees salary and tenure of the employment with the company.
(e) Risk exposure
Through its defined benefit plans, the group is exposed to a number of risks, the most significant of which are detailed below:
Asset volatility
The plan liabilities are calculated using a discount rate set with reference to bond yields; if plan assets underperform this yield,
this will create a deficit.
The gratuity fund is administered through Life Insurance Corporation of India (insurer) under its group gratuity scheme.
Accordingly almost the entire plan asset investment is maintained by the insurer. These are subject to interest rate risk which
is managed by the insurer.
Changes in bond yields
A decrease in bond yields will increase plan liabilities, although this will be partially offset by an increase in the value of the
plans' assets maintained by the insurer.
(f) Defined benefit liability and employer contribution
The Company generally eliminates the deficit in the defined benefit gratuity plan with in next one year.
Expected contribution to the post -employment benefit plan (Gratuity) for the year ending March 31,2025 is ? 12.11 million.
The weighted average duration of the defined benefit obligation is 3.28 years (As at March 31,2024 - 3.33 years).
Level 3 if one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.
This is the case for unlisted compound instruments.
There are no transfers between any of these levels during the year. The Company's policy is to recognize transfers into and
transfers out of fair value hierarchy levels as at the end of the reporting period.
C. Valuation techniques used to determine fair value
Specific valuation techniques used to value financial instruments include:
(i) The use of quoted market prices or mutual fund houses quotes (NAV) for such instruments. This is included in Level 1
D. Fair value of financial assets and liabilities measured at amortized cost
The Management has assessed that fair value of loans, trade receivables, cash and cash equivalents, other bank balances,
other financial assets and trade payables approximate their carrying amounts largely due to their short-term nature.
Difference between carrying amount of Bank deposits, other financial assets , borrowings and other financial liabilities
subsequently measured at amortised cost is not significant in each of the years presented.
For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.
NOTE 42: FINANCIAL RISK MANAGEMENT
The Company's board of directors has overall responsibility for the establishment and oversight of the Company's risk management
framework. The board has established the Risk Management Committee, which is responsible for developing and monitoring the
Company's risk management policies. The Committee holds regular meetings and report to board on its activities.
The Company's risk management policies are established to identify and analyses the risks faced by the Company, to set appropriate
risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly
to reflect changes in market conditions and the 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 employees understand their roles
and obligations.
The audit committee oversees how management monitors compliance with the Company's risk management policies and
procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The audit
committee is assisted in its oversight role by 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.
(a) Credit risk
Credit risk is the risk of financial loss to the company if a customer or counterparty to a financial instrument fails to meet its
contractual obligations. The company is exposed to the credit risk from its trade receivables, unbilled revenue, investments,
cash and cash equivalents, bank deposits and other financial assets. The maximum exposure to credit risk is equal to the
carrying value of the financial assets. The objective of managing counterparty credit risk is to prevent losses in financial assets.
Trade and other receivables
Trade receivables comprise a widespread customer base. Management evaluates credit risk relating to customers on an
ongoing basis. If customers are independently rated, these ratings are used. Otherwise, if there is no independent rating, risk
control assesses the credit quality of the customer, taking into account its financial position, past experience and other factors.
Individual risk limits are set for patients without medical aid insurance. Services to customers without medical aid insurance are
settled in cash or using major credit cards on discharge date as far as possible. Credit Guarantees insurance is not purchased.
The receivables are mainly unsecured; the company does not hold any collateral or a guarantee as security. The provision
details of the trade receivable are provided in Note 15 of the financial statements.
Cash and Cash Equivalents
Credit risk on cash and cash equivalents and other deposits with banks is limited as the Company generally invests in deposits
with banks with high credit ratings assigned by external credit rating agencies; accordingly the Company considers that the
related credit risk is low. Impairment on these items is measured on the 12-month expected credit loss basis.
(b) 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.
The Company's treasury maintains flexibility in funding by maintaining liquidity through investments in liquid funds and other
committed credit lines. Management monitors rolling forecasts of the group's liquidity position (comprising the undrawn
borrowing facilities below) and cash and cash equivalents on the basis of expected cash flows.
Liquidity Table
The Company's remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods is given
below. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date
on which the Company can be required to pay. The tables include both interest and principal cash flows. The contractual
maturity is based on the earliest date on which the Company may be required to pay.
(c) Market Risk
Market risk is the risk arising from changes in market prices - such as foreign exchange rates and interest rates - will affect the
Company's income or the value of its holdings of financial instruments. Market risk is attributable to all market risk sensitive
financial instruments including foreign currency receivables and payables and long term debt. The Company is exposed to
market risk primarily related to foreign exchange rate risk, interest rate risk and the market value of the investments. Thus, the
exposure to market risk is a function of investing and borrowing activities and revenue generating and operating activities
in foreign currency.
(i) Currency Risk
The Company is exposed to currency risk on account of foreign currency transactions including recognized assets and
liabilities denominated in a currency that is not the Company's functional currency ('), primarily in respect of US$, and
Euro. The Company ensures that the net exposure is kept to an acceptable level and is remain a net foreign exchange
earner.
Sensitivity Analysis -
Any change with respect to strengthening (weakening) of the Indian Rupee against various currencies as at March 31,
2025 and March 31, 2024 would have affected the measurement of financial instruments denominated in respective
currencies and affected equity and profit or loss by the amounts shown below. This analysis assumes that all other
variables, in particular interest rates.
(ii) Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes
in market interest rates. The Company's exposure to the risk of changes in market interest rates relates primarily to the
Company's debt obligations with floating interest rates and investments
Most of the Company's borrowings are on a floating rate of interest. The Company has exposure to interest rate risk,
arising principally on changes in Marginal Cost of Funds based Lending Rate (MCLR). The Company uses a mix of interest
rate sensitive financial instruments to manage the liquidity and fund requirements for its day to day operations like short
term credit lines besides internal accruals.
(iii) Price Risk Exposure
The Company's exposure to securities price risk arises from investments held in mutual funds & Equity Instrument
classified in the balance sheet at fair value through profit or loss. To manage its price risk arising from such investments,
the Company diversifies its portfolio. Further these are all debt base securities for which the exposure is primarily on
account of interest rate risk. Quotes (NAV) of these investments are available from the mutual fund houses. Profit for the
year would increase/decrease as a result of gains/losses on these securities classified as at fair value through profit or loss.
The nature of services and its disclosure of timing of satisfaction of performance obligation is mentioned in para 4.8 of
Note No. 4.
Contract Liabilities in the balance sheet constitutes advance payments and billings in excess of revenue recognised.
The Company expects to recognise such revenue in the next financial year.
There were no significant changes in contract assets and contract liabilities during the reporting period except amount
as mentioned in the table and explanation given above.
Under the payment terms generally applicable to the Company's revenue generating activities, prepayments are received
only to a limited extent. Typically, payment is due upon or after completion of the services.
The Company generates revenue from knee replacement surgeries, other indoor and outdoor patient discharges,
diagnostic services. clinical trials, trainings and other sales of medicines and medicare items.
The revenue from rendering Healthcare services and Pharmaceutical products satisfies 'at a point in time' recognition
criteria as prescribed by IND AS 115.
NOTE : 49 EQUITY SETTLED SHARE BASED PAYMENTS (ESOP) :
Senior level management employees of the Company receive remuneration in the form of share-based payments, whereby
employees render services as consideration for equity instruments (equity-settled transactions). In respect of options granted
during the current year under "Shalby Limited Employee Stock Options Scheme - 2021 (the "Shalby ESOP Scheme 2021") , the cost of
equity-settled transactions is determined by the fair value at the date when the grant is made using Black Scholes Method formula
which is in accordance with Indian Accounting Standard 102 (Ind AS 102).
The cost of equity settled transaction is recognised, together with a corresponding increase in Equity settled share based payments
reserves in other equity, over the period in which the service conditions are fulfilled. This expense is included under the head
"Employee benefits expense" as employee share-based expense. The cumulative expense recognised for equity-settled transactions
at each reporting date until the vesting date reflects the extent to which the vesting period has expired and the Company's best
estimate of the number of equity instruments that will ultimately vest.
For details of expense recognised in the statement of profit and loss please refer note 31 and for details of movement in share
options outstanding account refer note 19 of Financial statements.
Acquisition of Multi-Specialty Hospital from P K Healthcare Pvt. Ltd. [Brand Name Sanar International Hospitals] and Healers Hospitals
Pvt. Ltd.
The Company entered into a Share Purchase Agreement (SPA) with P K Healthcare Private Limited ('Sanar') and Mr. Naresh Kapoor
& Ms. Prem Kanta Kapoor dated January 25, 2024 for acquisition of the Multi-specialty Hospital business (owned and operated by
P K Healthcare Pvt Ltd under the brand name of "Sanar International Hospitals" mainly engaged in the business of Blood & Marrow
Transplantation, Bone & Joint replacement, Cancer Care, Cardiac surgery, dermatology, gastroenterology, Interventional Radiology,
Kidney & Liver transplant, Neurosciences, Pulmonology, Ophthalmology, Plastic & Cosmetic Surgery, Transfusion Medicine.
The Company has acquired 87.26% stake in shareholding of PK Healthcare Private Limited, through preferential allotment of equity
shares ? 1000 Million and secondary acquisition from promoters ? 19.20 Million during January 2024. PK Healthcare Pvt. Ltd. is now
a subsidiary of the Company effective from January 25, 2024.
The acquisition contributed revenue of ? 159.58 million and profit/(loss) after tax of ? (44.20) million for the period between the
acquisition date and March 31,2024. Had the business combination occurred on April 1,2023, per management estimate, revenues
for the financial year ended March 31,2024 would have been higher by ? 885.94 million and profit/(loss) after tax would have been
higher by ? (510.20) million.
The Company has acquired 100% stake in shareholding of Healers Hospital Private Limited through secondary acquisition from
existing shareholders during March 2024. Healers Hospital Pvt. Ltd. is now wholly-owned subsidiary of the Company effective from
March 15, 2024.
The acquisition contributed revenue of ? 1.30 million and profit/(loss) after tax of ? 0.93 million for the period between the acquisition
date and March 31,2024. Had the business combination occurred on April 1,2023, per management estimate, revenues for the
financial year ended March 31,2024 would have been higher by ? 52.25 million and profit/(loss) after tax would have been higher
by ? 34.33 million.
a) Business Combination
The above transaction qualifies as a business combination as per IndAS 103 - "Business Combination" and has been accounted
by applying the acquisition method wherein identifiable assets acquired, liabilities assumed are fair valued against the fair
value of the consideration transferred and the resultant goodwill recognised.
(a) Details of benami property held: No proceedings have been initiated on or are pending against the Company for holding
benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.
(b) Registration of charges or satisfaction with Registrar of Companies (ROC): The Company does not have any charges or
satisfaction which is yet to be registered with ROC beyond the statutory period.
(c) Details of crypto currency or virtual currency: The Company has not traded or invested in crypto currency or virtual currency
during the current or previous year.
(d) Utilisation of borrowed funds and share premium: No funds have been advanced or loaned or invested (either from
borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person or
entity, including foreign entities ("Intermediaries") except disclosed in Note 52 with the understanding, whether recorded in
writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate
Beneficiaries).
The Company has not received any fund from any party (Funding Party) with the understanding that the Company shall
whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company ("Ultimate
Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(e) Undisclosed income: There is no income surrendered or disclosed as income during the current or previous year in the tax
assessments under the Income Tax Act, 1961, that has not been recorded previously in the books of account.
(f) Wilful defaulter: The Company is not declared as willful defaulter by any bank or financial institution (as defined under the
Companies Act, 2013) or consortium thereof or other lender in accordance with the guidelines on willful defaulters issued by
the Reserve Bank of India.
(g) Compliance with number of layers of companies: The Company has complied with the number of layers prescribed under
the Section 2(87) of the Companies Act, 2013 read with Companies (Restriction on number of layers) Rules, 2017.
(h) Valuation of Property Plant & Equipment, intangible asset: The Company has not revalued any of its Property, Plant and
Equipment (including Right of Use Assets) during the year.
(i) The Company has borrowings from Banks on the basis of security of current assets. Quarterly returns \ statements of current
assets filed by the company with banks are in agreement with the books of accounts subject to minor deviations which are
not material.
(j) Relationship with struck off companies: The Company has no transactions with the companies struck off under Section 248
of the Companies Act, 2013 or Section 560 of the Companies Act, 1956.
(k) Utilisation of borrowings availed from banks and financial institutions: The borrowings obtained by the company from
banks and financial institution have been applied for the purpose for which such loans was taken.
NOTE 54: The Code on Social Security, 2020 ('Code') relating to employee benefits during employment and post-employment
benefits has received Presidential assent and has been published in the Gazette of India. However, the effective date of the Code
and final rules for quantifying the financial impact are yet to be notified. The Group will assess the impact of the Code when
relevant provisions are notified and will record related impact, if any, in the period the Code becomes effective.
NOTE 55: STATEMENT OF MANAGEMENT
(a) The non current financial assets, current financial assets and other current assets are good and recoverable and are
approximately of the values, if realized in the ordinary courses of business unless and to the extent stated otherwise in the
Accounts. Provision for all known liabilities is adequate and not in excess of amount reasonably necessary. There are no
contingent liabilities except those stated in the notes.
(b) Balance Sheet, Statement of Profit and Loss, cash flow statement and change in equity read together with Notes to the accounts
thereon, are drawn up so as to disclose the information required under the Companies Act, 2013 as well as give a true and fair
view of the statement of affairs of the Company as at the end of the year and financial performance of the Company for the
year under review.
(c) No adjusting or significant non-adjusting events have occurred between the reporting date and the date of authorisation.
(d) Balances of Sundry Creditors, Sundry debtors, Loans & advances, etc. are subject to confirmation and reconciliation, if any.
As per our report of even date
For T R Chadha & Co LLP For and on behalf of the Board
Chartered Accountants Shalby Limited
Firm Registration No. 006711N/N500028
Arvind Modi Dr. Vikram Shah Shyamal Joshi
Partner Chairman & Managing Director Director
Membership No: 112929 DIN: 00011653 DIN: 00005766
Amit Pathak Tushar shah
Chief Financial Officer AVP & Company Secretary
Place : Ahmedabad Place : Ahmedabad
Date : May 29, 2025 Date : May 29, 2025
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