3.13 Provisions

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
disclosed where an inflow of economic benefits is probable. Contingent assets are assessed
continually and , if it is virtually certain that an inflow of economic benefits will arise, the asset
and related income are recognised in the period 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 following 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 collect
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 amortisation 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 (ElR) 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 long-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 transaction costs. After initial
recognition, financial liabilities are classified under one of the following 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 loss.

Financial liabilities at fair value through profit or loss: which are designated as such on initial
recognition, or which are held for trading. Fair value gains / losses attributable to changes in
own credit risk is recognised in OCI. These gains / losses 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 bio-chemistry, haematology,
histopathology, microbiology, 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 standalone 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.

Rights, preferences and restrictions attached to the equity shares

The Company has issued only one class of equity shares having a face value of f 10/- per share. Each holder of equity shares is
entitled to one vote per share. The Company declares and pays dividend in Indian Rupees. The dividend proposed by board of
directors is subject to the approval of shareholders in the ensuing Annual General Meeting. In the event of liquidation of the
company, the holder 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 the share holders.

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 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 & 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.

a) 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 change 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.

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

NavoditTyagi Shivam Mamgain Rashika Agarwal

Partner Non - Executive Director Non - Executive Director

Membership No. : 533375 DIN: 09724726 DIN:08275078

UDIN No:24533375BKFJMJ4053

Avani Gupta Vanshul Asnani

Place: Noida CFO Company Secretary

Date: 30/05/2024 DIN NO:01112097 (Membership no.A51230)