3.16 Provisions

Provisions are recognised when the Company has a
present obligation (legal or constructive) as a result of
a past event, it is probable that the Company 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).

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

3.17 Contingent liabilities

Contingent liability is a possible obligation arising from
past events and whose existence will be confirmed only
by the occurrence or non-occurrence of one or more
uncertain future events not wholly within the control of
the entity or a present obligation that arises from past
events but is not recognised because it is not probable
that an outflow of resources embodying economic
benefits will be required to settle the obligation or the
amount of the obligation cannot be measured with
sufficient reliability.

Contingent liabilities acquired in a business
combination are initially measured at fair value at the
acquisition date. At the end of subsequent reporting
periods, such contingent liabilities are measured at
the higher of the amount that would be recognised
in accordance with Ind AS 37 and the amount initially
recognised less cumulative amortisation recognised in
accordance with Ind AS 115 Revenue from contracts
with customers.

3.18 Earnings per Share

Basic earnings per share is computed by dividing
the profit/(loss) after tax (including the post tax effect
of exceptional items, if any) by the weighted average
number of equity shares outstanding during the year.
The weighted average number of ordinary shares
outstanding during the year is number of shares
outstanding at the beginning of the year, adjusted by
the number of ordinary shares issued during the year
multiplied by a time-weighting factor.

3.19 Financial instruments

Financial assets and financial liabilities are recognised
when a Company becomes a party to the contractual
provisions of the instruments.

Financial assets and financial liabilities are initially
measured at fair value. Transaction costs that are
directly attributable to the acquisition or issue of
financial assets and financial liabilities (other than
financial assets and financial liabilities at fair value
through profit and loss) are added to or deducted from
the fair value of the financial assets or financial liabilities,
as appropriate, on initial recognition. Transaction costs
directly attributable to the acquisition of financial assets
or financial liabilities at fair value through profit and loss
are recognised immediately in statement of profit and
loss.

3.19.1 Financial assets

Excluded are trade accounts receivables. At initial
recognition trade accounts receivables (in accordance
with Ind AS 115) are measured at their transaction
price and subsequently measured at carrying value as
of initial recognition less impairment allowance (if any)
Investments in equity instruments are recognised and
subsequently measured at fair value. The Company's
equity investments are not held for trading. In general,
changes in the fair value of equity investments are
recognised in the income statement. However, at initial
recognition the Company elected, on an instrument-
by-instrument basis, to represent subsequent changes
in the fair value of individual strategic equity investments
in other comprehensive income (loss) (“OCI”).

The Company's investment in debt securities with
the objective to achieve both collecting contractual
cash flows and selling the financial assets, and initially

measured at fair value. Some of these securities give
rise on specified dates to cash flows that are solely
payments of principle and interest. These securities are
subsequently measured at FVOCI. Other securities are
measured at FVPL.

Cash and Cash Equivalents
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. Restricted cash and bank
balances are classified and disclosed as other bank
balances.

Amortised Cost and Effective interest method

The effective interest method is a method of calculating
the amortised cost of a debt instrument and of
allocating interest income over the relevant period. The
effective interest rate is the rate that exactly discounts
estimated future cash receipts (including all fees and
points paid or received that form an integral part of
the effective interest rate, transaction costs and other
premiums or discounts) through the expected life of
the debt instrument, or, where appropriate, a shorter
period, to the net carrying amount on initial recognition.

I ncome is recognised on an effective interest basis
for debt instruments other than those financial assets
classified as at FVTPL. Interest income is recognised in
the statement of profit and loss and is included in the
“Other income” line item.

Instruments at FVTOCI

On initial recognition, the Company can make an
irrevocable election (on an instrument-by-instrument
basis) to present the subsequent changes in fair value in
other comprehensive income pertaining to investments
in equity instruments. This election is not permitted if
the equity investment is held for trading. These elected
investments are initially measured at fair value plus
transaction costs. Subsequently, they are measured at
fair value with gains and losses arising from changes in
fair value recognised in other comprehensive income
and accumulated in the ‘Reserve for equity instruments

through other comprehensive income'. The cumulative
gain or loss is not reclassified to statement of profit and
loss on disposal of the investments.

A financial asset is held for trading if:

-it has been acquired principally for the purpose of
selling it in the near term; or

-on initial recognition it is part of a portfolio of identified
financial instruments that the Company manages
together and has a recent actual pattern of short-term
profit-taking; or

-it is a derivative that is not designated and effective as
a hedging instrument or a financial guarantee.
Dividends on these investments in equity instruments
are recognised in statement of profit and loss when the
Company's right to receive the dividends is established,
it is probable that the economic benefits associated with
the dividend will flow to the entity, the dividend does not
represent a recovery of part of cost of the investment
and the amount of dividend can be measured reliably.
Dividends recognised in statement of profit and loss are
included in the ‘Other income' line item.

Impairment of financial assets
The Company applies the expected credit loss model
for recognising impairment loss on financial assets
measured at amortised cost, debt instruments at
FVTOCI, lease receivables, trade receivables, other
contractual rights to receive cash or other financial asset,
and financial guarantees not designated as at FVTPL.
The expected credit loss approach requires that all
impacted financial assets will carry a loss allowance
based on their expected credit losses. Expected credit
losses are a probability-weighted estimate of credit
losses over the contractual life of the financial assets.
For trade receivables or any contractual right to
receive cash or another financial asset that result
from transactions that are within the scope of Ind AS
115, the Company measures the loss allowance at an
amount equal to lifetime expected credit losses.

The impairment provisions for trade receivables is
based on reasonable and supportable information
including historic loss rates, present developments
such as liquidity issues and information about future

economic conditions, to ensure foreseeable changes in
the customer-specific or macroeconomic environment
are considered.

Significant increase in credit risk

I n assessing whether the credit risk on a financial
instrument has increased significantly since initial
recognition, the Company compares the risk of a
default occurring on the financial instrument at the
reporting date with the risk of a default occurring on
the financial instrument at the date of initial recognition.
In making this assessment, the Company considers
both quantitative and qualitative information that
is reasonable and supportable, including historical
experience and forward-looking information that is
available without undue cost or effort. Forward-looking
information considered includes the future prospects
of the industries in which the Company's debtors
operate, obtained from economic expert reports,
financial analysts, governmental bodies, relevant
think-tanks and other similar organisations, as well
as consideration of various external sources of actual
and forecast economic information that relate to the
Company's core operations.

Derecognition of financial assets
The Company derecognises a financial asset when
the contractual rights to the cash flows from the asset
expire, or when it transfers the financial asset and
substantially all the risks and rewards of ownership
of the asset to another party. If the Company neither
transfers nor retains substantially all the risks and
rewards of ownership and continues to control the
transferred asset, the Company recognises its retained
interest in the asset and an associated liability for
amounts it may have to pay. If the Company retains
substantially all the risks and rewards of ownership of
a transferred financial asset, the Company continues
to recognise the financial asset and also recognises a
collateralised borrowing for the proceeds received.

Foreign exchange gains and losses

The fair value of financial assets denominated in a
foreign currency is determined in that foreign currency
and translated at the spot rate at the end of each
reporting period.

- For foreign currency denominated financial assets
measured at amortised cost and FVTPL, the
exchange differences are recognised in statement

of profit and loss except for those which are
designated as hedging instruments in a hedging
relationship.

- Changes in the carrying amount of investments in
equity instruments at FVTOCI relating to changes
in foreign currency rates are recognised in other
comprehensive income.

Net gain / (loss) on foreign currency transactions and
translation during the year recognised in the statement
of Profit and Loss account is presented under Other
Income.

3.19.2 Financial liabilities and equity instruments
Classification as debt or equity

Debt and equity instruments issued by a Company
are classified as either financial liabilities or as equity
in accordance with the substance of the contractual
arrangements and the definitions of a financial liability
and an equity instrument.

Equity instruments

An equity instrument is any contract that evidences
a residual interest in the assets of an entity after
deducting all of its liabilities. Equity instruments
issued by a Company are recognised at the proceeds
received, net of direct issue costs.

Repurchase of the Company’s own equity instruments
is recognised and deducted directly in equity. No gain
or loss is recognised in statement of profit and loss
on the purchase, sale, issue or cancellation of the
Company’s own equity instruments.

Financial liabilities

All financial liabilities are subsequently measured at
amortised cost using the effective interest method.

I n general, financial liabilities are classified and
subsequently measured at amortised cost, with the
exception of contingent considerations resulting from a
business combination, non controlling interests subject
to put provisions as well as derivative financial liabilities

Financial liabilities subsequently measured at
amortised cost

The carrying amounts of financial liabilities that
are subsequently measured at amortised cost are
determined based on the effective interest method.
Interest expense that is not capitalised as part of costs
of an asset is included in the ‘Finance costs’ line item.

The effective interest method is a method of calculating
the amortised cost of a financial liability and of allocating
interest expense over the relevant period. The effective
interest rate is the rate that exactly discounts estimated
future cash payments (including all fees and points paid
or received that form an integral part of the effective
interest rate, transaction costs and other premiums
or discounts) through the expected life of the financial
liability, or (where appropriate) a shorter period, to the
net carrying amount on initial recognition.

Financial guarantee contracts
A financial guarantee contract is a contract that
requires the issuer to make specified payments to
reimburse the holder for a loss it incurs because a
specified debtor fails to make payments when due in
accordance with the terms of a debt instrument.
Financial guarantee contracts issued by a Company
are initially measured at their fair values and, if not
designated as at FVTPL, are subsequently measured
at the higher of:

- the amount of loss allowance determined in
accordance with impairment requirements of Ind
AS 109;and

- the amount initially recognised less, when
appropriate, the cumulative amount of income
recognised in accordance with the principles of
Ind AS 115.

Derecognition of financial liabilities

The Company derecognises financial liabilities when,
and only when, the Company’s obligations are
discharged, cancelled or have expired. An exchange
with a lender of debt instruments with substantially
different terms is accounted for as an extinguishment of
the original financial liability and the recognition of a new
financial liability. Similarly, a substantial modification of
the terms of an existing financial liability is accounted for
as an extinguishment of the original financial liability and
the recognition of a new financial liability. The difference
between the carrying amount of the financial liability
derecognised and the consideration paid and payable
is recognised in the statement of profit and loss.

3.19.3 Derivative financial instruments

The Company enters into a variety of derivative financial
instruments to manage its exposure to interest rate

and foreign exchange rate risks, including interest rate
swaps and cross currency swaps.

Derivatives are initially recognised at fair value at the
date the derivative contracts are entered into and are
subsequently remeasured 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.

The change in fair value of derivatives is recorded in the
statement of profit and loss.

Derivatives embedded in host contracts are
accounted for as separate derivatives if their economic
characteristics and risks are not closely related to those
of the host contracts. These embedded derivatives
are measured at fair value with changes in fair value
recognised in the statement of profit and loss.

3.20 Segment Reporting

I n accordance with Ind AS 108, Operating Segments ,
the Group’s chief operating decision maker (“CODM”)
has been identified as the board of directors.

The Company is engaged only in Healthcare business
and therefore the Company’s CODM (Chief Operating
Decision Maker; which is the Board of Directors of
the Company) decided to have only one reportable
segment from previous year in accordance with IND
AS 108 “Operating Segments”.

3.21 Non Current Asset Held for Sale

The Company classifies non-current assets held for sale
if their carrying amounts will be principally recovered
through a sale rather than through continuing use of
assets and action required to complete such sale
indicate that it is unlikely that significant changes to the
plan to sell will be made or that the decision to sell will
be withdrawn. Also, such assets are classified as held
for sale only if the management expects to complete
the sale within one year from the date of classification.
Non-current assets held for sale are measured at the
lower of carrying amount and the fair value less cost
to sell. Non-current assets are not depreciated or
amortised.

3.21.1 Discontinued operations

A discontinued operation is a ‘component’ of the
Company’s business that represents a separate line
of business that has been disposed of or is held for
sale, or is a subsidiary acquired exclusively with a view
to resale. Classification as a discontinued operation
occurs upon the earlier of disposal or when the operation
meets the criteria to be classified as held for sale.
The Company considers the guidance in Ind AS 105
Non-Current assets held for sale and discontinued
operations to assess whether a divestment asset
would qualify the definition of ‘component' prior to
classification into discontinued operation.

3.22 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.
Government grants are recognised in statement
of profit and loss on a systematic basis over the
periods in which the Company recognises as
expenses the related costs for which the grants are
intended to compensate. Specifically, government
grants whose primary condition is that the Company
should purchase, construct or otherwise acquire non¬
current assets are recognised as deferred revenue
in the standalone balance sheet and transferred
to statement of profit and loss on a systematic and
rational basis over the useful lives of the related assets.
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 the statement of profit and loss in the period in which
they become receivable.

3.23 Dividend

A final dividend, including tax thereon, on equity
shares is recorded as a liability on the date of approval
by the shareholders. An interim dividend, including
tax thereon, is recorded as a liability on the date of
declaration by the board of directors.

3.24 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

| CRITICAL ACCOUNTING JUDGEMENTS AND
KEY SOURCES OF ESTIMATION UNCERTAINTY

Use of estimates

The preparation of these standalone financial
statements in conformity with Ind AS requires
management to make estimates and assumptions that
affect the reported amounts of assets and liabilities,
disclosures of contingent assets and liabilities at the
balance sheet dates and the reported amounts of
revenues and expenses during the reporting periods.
Significant estimates and assumptions reflected in the
Company's financial statements include, but are not
limited to, expected credit loss, impairment of goodwill,
useful lives of property, plant and equipment and
leases, realisation of deferred tax assets, unrecognised
tax benefits, incremental borrowing rate of right-of-use
assets and related lease obligation, the valuation of the
Company's acquired equity investments. Actual results
could materially differ from those estimates.

4.1 Key sources of estimation uncertainty

The following are the key assumptions concerning the
future, and other key sources of estimation uncertainty
at the end of the reporting period that may cause a
material adjustment to the carrying amounts of assets
and liabilities within the next financial year.

4.1.1 Impairment of Financial Assets

The impairment provisions for trade receivables is
based on assumptions about risk of default and
expected loss rates. The Company uses judgements
in making certain assumptions and selecting inputs
to determine impairment of these trade receivables,
based on the reasonable and supportable information
including historic loss rates, present developments
such as liquidity issues and information about future
economic conditions, to ensure foreseeable changes in
the customer-specific or macroeconomic environment
are considered.

4.1.2 Impairment of investments in subsidiaries,
associates and joint ventures:

The Company conducts impairment reviews of
investments in subsidiaries / associates / joint
arrangements whenever events or changes in

circumstances indicate that their carrying amounts
may not be recoverable or tests for impairment
annually. Determining whether an asset is impaired
requires an estimation of the recoverable amount,
which requires the Company to estimate the value
in use determined using a discounted cash flow
approach based upon the cash flow expected to be
generated by the investment. In case that the value in
use of the investment is less than its carrying amount,
the difference is at first recorded as an impairment of
the carrying amount of the goodwill.

4.1.3 Employee Benefits - Defined benefit plans

The cost of the defined benefit plans are based on
actuarial valuation using the projected unit credit
method. An actuarial valuation involves making various
assumptions that may differ from actual developments
in the future. These include the determination of the
discount rate, future salary increases, attrition and
mortality rates. Due to the complexities involved in the
valuation and its long-term nature, a defined benefit
obligation is highly sensitive to changes in these
assumptions. All assumptions are reviewed at each
reporting date.

4.1.4 Litigations

The amount recognised as a provision is the
management's best estimate of the expenditure
required to settle the present obligation arising at the
reporting period.

4.1.5 Revenue Recognition

The Company's contracts with customers could include
promises to render multiple services to a customer.
The Company assesses the services promised in a
contract and identifies distinct performance obligations
in the contract. Identification of distinct performance
obligation involves judgement to determine the
deliverables and the ability of the customer to
benefit independently from such deliverables.
Judgement is applied in the assessment of principal
versus agent considerations with respect to contracts
with customers and doctors which is determined
based on the substance of the arrangement.
Judgement is also applied to determine the transaction
price of the contract. The transaction price shall
include a fixed amount of customer consideration
and components of variable consideration which
constitutes amounts payable to customer, discounts,
commissions , disallowances and redemption patterns
of loyalty point by the customers. The estimated
amount of variable consideration is adjusted in the
transaction price only to the extent that it is highly
probable that a significant reversal in the amount of
cumulative revenue recognised will not occur and is
reassessed at the end of each reporting period.

4.1.6 Useful lives of property plant and equipment

The Company depreciates property, plant and
equipment on a straight-line basis over estimated
useful lives of the assets. The charge in respect of
periodic depreciation is derived based on an estimate
of an asset's expected useful life and the expected
residual value at the end of its life. The lives are based
on historical experience with similar assets as well as
anticipation of future events, which may impact their
life, such as changes in technology. The estimated
useful life is reviewed at least annually.

4.1.7 Point of Capitalisation

Management has set in parameters in respect of its
medical equipment specific to the stability and reaching
the contractual availability goals. The property, plant &
equipment shall be capitalised upon reaching these
parameters at which stage the asset is brought to the
location and condition necessary for it to be capable
of operating in the manner intended by management.
In respect of internally generated intangible assets,
management has defined the criteria for capitalisation
based on the version released for each feature to be
deployed on the digital platform. The point in time
at which the version release contain all the essential
features as defined by the management and qualifies
to be a Minimum Viable Product (MVP), the feature is
considered eligible for capitalisation.

4.1.8 Impairment of Non - Financial Assets

Determining whether the asset is impaired requires to
assess the recoverable amount of the asset or Cash
Generating Unit (CGU) which is compared to the

carrying amount of the asset or CGU, as applicable.
Recoverable amount is the higher of fair value less
costs of disposal and value in use. Where the carrying
amount of an asset or CGU exceeds the recoverable
amount, the asset is considered impaired and is written
down to its recoverable amount.

4.1.9 Leases

Ind AS 116 defines a lease term as the non-cancellable
period for which the lessee has the Right-to- use an
underlying asset including optional periods, when an

entity is reasonably certain to exercise an option to
extend (or not to terminate) a lease. The Company
considers all relevant facts and circumstances that
create an economic incentive for the lessee to exercise
the option when determining the lease term. The option
to extend the lease term is included in the lease term,
if it is reasonably certain that the lessee would exercise
the option. The Company reassesses the option when
significant events or changes in circumstances occur
that are within the control of the lessee.