A Provision is recognised when the Company has a present obligation (legal or constructive) as a result of a past event and 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.
The amount recognised 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 a provision is measured using the cash flows estimated to
settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).
3.14 Contingent Liabilities
Contingent liability is disclosed for (i) Possible obligation which will be confirmed only by the future events not wholly within the control of the
company or (ii) Present obligations arising from past events where it is not probable that an outflow of resources will be required to settle the
obligation or a reliable estimate of the amount of the obligation cannot be made
Contingent Assets
Contingent assets are not recognised in the financial statements. A contingent asset is discbsed where an infbw of economic benefits is probable.
Contingent assets are assessed continually and , if it is virtually certain that an infbw of economic benefits will arise, the asset and related income
are recognised in the perbd in which the change occurs.
3.15 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.
(a) Financial assets
Financial assets include cash and cash equivalents, trade and other receivables, investments in securities and other eligible current and non¬
current assets.
At initial recognition, all financial assets are measured at fair value. Such financial assets are subsequently classified under one of the folbwing
three categories according to the purpose for which they are held. The classification is reviewed at the end of each reporting period.
Financial assets at amortised cost: At the date of initial recognition, are held to colbct contractual cash flows of principal and interest on principal
amount outstanding on specified dates. These financial assets are intended to be held until maturity. Therefore, they are subsequently measured
at amortised cost by applying the Effective Interest Rate (EIR) method to the gross carrying amount of the financial asset The EIR amortisatbn is
included as interest income in the profit or loss. The losses arising from impairment are recognised in the profit or loss.
Financial assets at fair value through other comprehensive income: At the date of initial recognition, are held to collect contractual cash flows of
principal and interest on principal amount outstanding on specified dates, as well as held for selling. Therefore, they are subsequently measured at
each reporting date at fair value, with all fair value movements recognised in Other Comprehensive Income (OCI). Interest income calculated
using the Effective Interest Rate (EIR) method, impairment gain or loss and foreign exchange gain or loss are recognised in the Statement of Profit
and Loss. On derecognition of the asset, cumulative gain or loss previously recognised in Other Comprehensive Income is reclassified from the
OCI to Statement of Profit and Loss.
Financial assets at fair value through profit or loss: At the date of initial recognition, financial assets are held for trading, or which are measured
neither at Amortised Cost nor at Fair Value through OCI Therefore, they are subsequently measured at each reporting date at fair value, with all
fair value movements recognised in the Statement of Profit and Loss.
Investment in Equity shares of subsidiaries and associates are valued at cost
The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the
financial asset and the transfer qualifies for derecognition under Ind AS 109.
The company assesses impairment based on the expected credit losses (ECL) model to all its financial assets measured at amortised cost.
(b) Financial liabilities
Financial liabilities include bng-term and short-term loans and borrowings, trade and other payables and other eligible current and non-current
liabilities.
All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and other payables, net of directly attributable
transactbn costs. After initial recognitbn, financial liabilities are classified under one of the folbwing two categories:
Financial liabilities at amortised cost After initial recognition, such financial liabilities are subsequently measured at amortised cost by applying the
Effective Interest Rate (EIR) method to the gross carrying amount of the financial liability. The EIR amortisation is included in finance expense in
the profit or bss.
Financial liabilities at fair value through profit or bss: which are designated as such on initial recognitbn, or which are held for trading. Fair value
gains / losses attributable to changes in own credit risk is recognised in OCI. These gains / bsses are not subsequently transferred to Statement
of Profit and Loss. All other changes in fair value of such liabilities are recognised in the Statement of Profit and Loss.
The Company derecognises a financial liability when the obligation specified in the contract is discharged, cancelled or expires.
3.16 Revenue Recognition
Revenue from contracts with customer
The Company's revenue is primary generated from business of running laboratories for carrying out pathological investigations of various
branches of bb-chemistry, haematology, histopathology, microbblogy, electrophoresis, immuno-chemistry, immunology, virology, cytology, and
other pathological and radiological investigations for customers through various arrangements.
Revenue is measured based on the consideration specified in a contract with a customer. Revenue is recognised at a point in time when the
Company satisfies performance obligations by transferring the promised services to its customers. Generally, each test represents a separate
performance obligation for which revenue is recognised when the test report is generated i.e. when the performance obligation is satisfied.
For allocating the transaction price, the Company has measured the revenue in respect of each performance obligation of a contract at its relative
standabne selling price. The price that is regularly charged for a test when registered separately is the best evidence of its standalone selling
price.
The Company has assessed that it is primarily responsible for fulfilling the performance obligation and has no agency relationships. Accordingly
the revenue has been recognised at the gross amount and fees to collection centers/ channel partners has been recognised as an expense.
Services of franchisees are recognized on the basis of the agreements and schedules of franchisee payment.
Interest
Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable interest rate. Interest
income is included under the head “other income” in the statement of profit and loss.
3.17 Earnings per share
Basic earnings per share are calculated by dividing the profit for the period attributable to equity shareholders by the weighted average number of
equity shares outstanding during the period. For the purpose of calculating diluted earnings per share, the profit for the period attributable to equity
shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity
shares.
3.18 Segment Reporting
Gian is mainly engaged in the business of pathological investigations. Operating segments are reporting in a manner consistent with the internal
reporting to the Chief Operating Decision Maker (CODM).
The Board of Directors of the group assesses the financial performance and position of the group and makes strategic decisions. The Board of
Directors which are identified as a CODM, consist of CMD, CFO & all other executive Directors
Considering the nature of business & financial reporting of GIAN, the Company has only one segment as reportable segment.
3.19 Cash and Cash Equivalents
Cash and cash equivalents in the balance sheet comprise cash at banks, cash on hand and highly liquid short-term deposits with an original
maturity of three months or less, which are subject to an insignificant risk of changes in value.
3.20 Statement of Cash Flows
Statement of Cash flows is reported using the indirect method, whereby profit for the year is adjusted for the effects of transactions of 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 based on the available information.
3.21 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
33 Employee benefit obligations
Defined contribution plan
The Company makes contribution to statutory provident fund as per Employees Provident Fund and Miscellaneous Provisions Act,
1952. This is a defined contribution plan as per IND-AS 19.
Defined benefit plan for gratuity
(i) Actuarial gains and losses in respect of defined benefit plans are recognised in the Financial statements through other
(ii) Through its defined benefit plans the Company is exposed to a number of risks, the most significant of which are detailed below:
(a) Asset Volatility:
(i) The plan liabilities are calculated using a discount rate; if plan assets under perform compared to the discount rate, this will create
or increase a deficit.
(ii) As the plans mature, the Company intends to reduce the level of investment risk by investing more in assets that better match the
liabilities.
(b) Life Expectancy :
The majority of the plan's obligations are to provide benefits for the service life of the member, so increases in service life expectancy
will result in an increase in the plan’s liabilities. This is particularly significant in the Company's defined benefit plans, where
inflationary increases result in higher sensitivity to changes in service life expectancy.
The estimates of future salary increase, considered in actuarial valuation, take into account inflation, seniority, promotions and other
relevant factors such as supply and demand in the employment market. The Company evaluates these assumptions annually based
on its long-term plans of growth and industry standards. The discount rate is based on prevailing market yields on government
securities as at balance sheet date for the estimated term of the obligations.
The following methods and assumptions were used to estimate the fair values:
Cash and short-term deposits, trade receivables, loans, trade payables, and other current financial assets and
liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.
Long-term receivables/payables are evaluated by the Company based on parameters such as interest rates, risk
factors, individual creditworthiness of the counterparty and the risk characteristics of the financed project. Based on
this evaluation, allowances are taken into account for the expected credit losses of these receivables.
All foreign currency denominated assets and liabilities are translated using exchange rate at reporting date.
Fair Value Hierarchy
The Company uses the following hierarchy for determining and disclosing the fair value of financial
instruments by valuation technique:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2: Inputs other than the quoted prices included within Level 1 that are observable for the asset or liability,
either directly or indirectly; and
Level 3: Inputs based on unobservable market data.
38 Financial Instruments (Contd.)
B. Financial Risk Management
Gian Life Care is exposed primarily to market risk (fluctuation in foreign currency exchange rates & interest rate), credit, liquidity which may adversely impact the fair value
of its financial instruments. The Company assesses the unpredictability of the financial environment 8> seeks to mitigate potential adverse effects on the financial
performance of the Company.
1. Capital Management:
The company's capital management objectives are:
(i) The Board policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. The
board of directors monitors the return on capital employed.
(ii) The Company manages capital risk by maintaining sound/optimal capital structure through monitoring of financial ratios, such as debt-to-equity ratio and net borrowings-to-
equity ratio on a monthly basis and implements capital structure improvement plan when necessary.
(iii) The Company uses debt equity ratio as a capital management index and calculates the ratio as the net debt divided by total equity. Net debts and total equity are based on
the amounts stated in the financial statements.
2. Credit Risk :
(i) Credit risk is the risk of financial loss arising from counter-party failure to repay or service debt according to the contractual terms or obligations. Credit risk encompasses
both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration of risks. Credit risk is controlled by analysing credit limits and
creditworthiness of customers on a continuous basis to whom the credit has been granted after obtaining necessary approvals for credit.
(ii) Financial instruments that are subject to concentration of credit risk principally consists of trade receivables, investments, derivative financial instruments and other
financial assets. None of the financial instruments of the Company results in material concentration of credit risk.
3. Liquidity Risk :
Liquidity Risk Management : Liquidity risk refers to the risk that the Company cannot meet its financial obligations The objective of liquidity risk management is to
maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company manages liquidity risk by maintaining adequate reserves,
banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and
liabilities.
4. Market Risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Such changes in the values of
financial instruments may result from changes in the foreign currency exchange rates, interest rates, credit, liquidity and other market changes. The Company's exposure
to market risk is primarily on account of foreign currency exchange rate risk.
Note-41
Other Amendments with respect to Schedule III
The Company does not have any Benami property, where any proceedings have been initiated or pending against the company for holding any Benami property.
The company is not declared as wilful defaulter by any bank or financial Institution or other lender
The Company does not have any transactions with Companies struck off.
The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
The Company has not traded or invested in Crypto currency or Virtual currency during the financial year,
shall:
(i) 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
(ii) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.
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:
(i) 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
(ii) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.
The Company does not have any 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).
Note-42
Previous year’s figures have been regrouped / rearranged wherever necessary, to conform to the current year’s classification /disclosure.
As per our report of even date attached
FOR MSNT & ASSOCIATES LLP For and on behalf of the Board of Directors,
ICAI Firm Registration No.: 018542C/C400322 Gian Life Care Limited
Chartered Accountants CIN: L85100UP2018PLC110119
Navodit Tyagi Arun Kumar Gupta Rashika Agarwal
Partner Director Non - Executive Director
Membership No. : 533375 DIN NO:01331593 DIN:08275078
UDIN No: 25533375BMOKNR6185
Avani Gupta
Place: Noida CFO
Date: 14/08/2025 DIN NO:01112097
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