11.05 The Board of Directors of ALPS Hospital Limited (‘’ALPS’’/ ‘Transferor’) and Max Hospitals and Allied Services Limited (‘’MHASL’’/ ‘Transferee’) wholly owned subsidiaries of the Company, engaged in providing healthcare services, at their respective meetings held on May 16, 2022, approved the Scheme of Amalgamation (‘Scheme’). Following this, a petition was filed before the Hon’ble National Company Law Tribunal (‘NCLT’) under the provisions of sections 230 to 232 of the Companies Act, 2013, along with the applicable rules. Hon’ble NCLT vide its order dated February 25, 2025, approved the said Scheme with the appointed date of April 1, 2024. The merger has become effective from March 28, 2025.
11.06 During the year ended March 31, 2024, the Company acquired 100% equity stake in Alexis Multi-Speciality Hospital Private Limited (“Alexis”) which operates JCI & NABH accredited 200 bedded hospital namely ‘Alexis Multispecialty Hospital’.
11.07 During the year ended March 31, 2025, the Company acquired 100% equity stake in Jaypee Healthcare Limited (‘JHL’) which owns and operate 500-bed super specialty hospital in Noida & 200-bed secondary care hospital in Chitta, Bulandshahr.
11.08 The Company has issued ESOP to employees of the subsidiary companies. The granted ESOPs are accounted in accordance with Ind AS 102, Share Based Payments. Also, with effect from April 1, 2023, the Company has entered into a recharge arrangement under which the Company receives payment/reimbursement from subsidiaries against those ESOPs granted to their employees on a periodical basis.
11.01 During the year ended March 31, 2025, the Company had made an additional investment of an amount H 2,000 lakhs in Max Lab Limited by way of subscription towards rights issue of 2,00,00,000 equity shares.
Non-Current trade receivable represents amount of construction receivable from a partner healthcare facility for construction services provided by the Company in two phases. The receipt of the said receivable is spread over a period of 26.5 years and 20.5 years from handover date respectively for Phase I and Phase II of the Hospital building. (Also refer note 35.14)
11.02 On February 10, 2022, the Company entered into Shareholders Agreement for purchase of 100% equity of Eqova Healthcare Private Limited (‘Eqova’) in tranches. Accordingly, the Company acquired 26% stake in Eqova on February 15, 2022 and also placed a deposit of H 6,840 lakhs in escrow account towards purchase of a further stake of 34%, subject to agreed conditions precedent. During the year ended March 31, 2024, on April 13, 2023, the Company completed the acquisition of 34% stake in Eqova upon exercise of put option by one of the shareholders of Eqova pursuant to option agreement entered into by the Company, Eqova and such shareholder of Eqova on February 10, 2022. Further, the Company shall acquire the remaining stake of 40%, upon exercise of put / call options as per shareholders option agreement.
11.03 During the year ended March 31, 2025, the Company had made an additional investment for an amount of H 481 lakhs in Max Healthcare FZ-LLC, by way of subscription towards rights issue of 2,100 equity shares.
11.04 The Board of Directors of the Company at their meeting held on January 30,2025, accorded approval for voluntary liquidation of MHC Global Healthcare (Nigeria) Limited. During the year ended March 31, 2025, the Company has recognised provision for impairment on loan advanced including interest accured thereon and carrying value of investment. It may be noted that MHC Global Healthcare (Nigeria) Limited is not a material subsidiary and its liquidation shall have no significant impact on the financial statement of the Company.
14.01 Loan amounting to H 18,856 lakhs (March 31, 2024: H 20,856 lakhs) given to Dr. B.L. Kapur Memorial Hospital, to fulfil obligation under the Operation and Management Agreement, is repayable as per the loan agreement and carries interest rate of 11.50% per annum w.e.f October 1, 2024 (earlier the interest rate was 10.25% per annum).
14.02 Loan amounting to H 19,145 lakhs (March 31, 2024: H 19,280 lakhs) given to ALPS Hospitals Limited (formerly known as Max Hospitals and Allied Services Limited), for business operations, repayment of debts and other general corporate purpose, is repayable within 10 years from the date of first disbursement and carries interest rate of 9.75% per annum (March 31, 2024 : 9.75% per annum).
14.03 Loan amounting to H 9,000 lakhs (March 31, 2024: H 20,000) given to Crosslay Remedies Limited, for the purpose of financial assistance to Crosslay for acquisition of Starlit Medical Centre Private Limited, is repayable within 5 years from the date of disbursement and carries interest rate of 9.75% per annum (March 31, 2024 : 9.75% per annum).
14.04 Loan amounting to H 1,175 lakhs (March 31, 2024: H 1,146 lakhs) given to Max Healthcare FZ-LLC, Dubai, for business operations, repayment of debts and other general corporate purpose, is repayable within 3 years from the date of disbursement and carries interest rate of 8.25% per annum (March 31, 2024 : 8.50% per annum), based on Secured Overnight Financing Rate (“SOFR”).
14.05 Loan amounting to H Nil (March 31, 2024: H 167 lakhs) given to MHC Global Healthcare (Nigeria) Ltd, for business operations, repayment of debts and other general corporate purpose, is repayable within 3 years from the date of disbursement and carries interest rate of 8.25% per annum (March 31, 2024 : 8.50% per annum), based on Secured Overnight Financing Rate (“SOFR”). Also refer footnote 11.04.
14.06 Loan amounting to H 410 lakhs (March 31, 2024: Nil ) given to Alexis Multi-Speciality Hospital Private Limited, for purpose of acquiring hospital land, is repayable within 5 years from the date of first disbursement and carries interest rate of 9.75% per annum.
14.07 Loan amounting to H 9,900 lakhs (March 31, 2024: Nil ) given to Muthoot hospitals private limited, for business operations and other capital expenditure purpose, is repayable within 5 year from the date of first disbursement and carries interest rate of 9.75% per annum.
14.08 Loan amounting to H 1,03,530 lakhs was given to Jaypee Healthcare Limited on October 3, 2024, for payment of claim amount of financial creditors and carries interest rate of 9.75% per annum. As of March 31, 2025, the Company has received H 99,797 lakhs and has a balance of H 3,733 lakhs which is repayable within 5 years from the date of first disbursement.
14.09 Current portion of loan to related parties includes H 2,000 lakhs (March 31, 2024: H 2,000 lakhs) receivable from Dr. B.L. Kapur Memorial Hospital towards loans, H 238 lakhs from Max Healthcare FZ-LLC, Dubai and H 272 lakhs (March 31, 2024: H 65 lakhs) from ALPS Hospital Limited (formerly known as Max Hospitals and Allied Services Limited) towards interest receivable on these loans.
14.10These loans were extended to Gujarmal Modi Hospital & Research Centre for Medical Sciences (“GMHRC”) pursuant to a Memorandum of Understanding (MoU) executed on November 27, 2015. The purpose of the loans is to support the expansion of GMHRC’s hospital bed capacity from 250 beds to 650 beds. The loans carries an interest rate of 9.75% per annum (March 31, 2024: 9.75% per annum). The commissioning of the additional bed capacity will significantly enhance the Group’s earning potential under the long-term service agreement with GMHRC.
Interest bearing refundable security deposits aggregating to H 17,453 lakhs (March 31, 2024: H 17,853 lakhs) provided to Devki Devi Foundation, Balaji Medical and Diagnostic Research Centre, and Gujarmal Modi Hospital & Research Centre for Medical Sciences (“GMHRC”) as performance security under the term of long term service agreements with these healthcare service providers. These carry interest @9.75% p.a.
Non-interest bearing refundable performance security deposits aggregating to H 7,243 lakhs (March 31, 2024: H 7,243 lakhs) to GMHRC under the terms of respective long term service agreements. These have been recorded at their discounted present value (“DPV”). The difference between the amount paid and DPV as at the year ended March 31, 2025, aggregating to H 6,495 lakhs (March 31, 2024: H 6,576 lakhs) has been considered as prepaid expenses and charged off to statement of profit and loss account over the period of the agreement. Refer note 16.02.
H 15,768 lakhs (March 31, 2024: H 13,214 lakhs) [present value is H 3,454 lakhs (March 31, 2024: H 2,499 lakhs)] as interest free refundable deposit to Muthoot Hospital Private Limited under the long term agreement for operation and management of the hospital. These have also been recorded at discounted present value. The Company has recognised the difference between the amount paid and discounted value as Intangible Asset/intangible assets under development towards operating and management rights of the hospital operation amounting to H 12,675 lakhs (March 31, 2024: H 10,613 lakhs) which is amortised over the period of agreement. Refer footnote 9.01(b) and note 10.
(a) H 2,908 lakhs (March 31, 2024 : H 2,828 lakhs) pertaining to mobilisation and other advances given to the contractors in relation to the ongoing expansion projects at sector-56, Gurugram.
(b) H 1,686 lakhs (March 31, 2024 : H 1,686 lakhs) paid to the state authorities for allotment of a 5 acre land parcel for the purpose of setting up a hospital by the Company. The state authority has assured clear possession as required by the Company. The management believes that the possession of said land will be handed over by the state authority after resolution of concerns expressed by the Company. The remaining balance consideration payable as per allotment letter has been included as part of capital commitment (refer note 34.03). Additionally, a provision for interest payable on unpaid due installment and extension fee aggregating to an amount of H 719 Lakhs (March 31, 2024 : H 647 lakhs) has been recorded as liability in the financial statements
(c) H 946 lakhs (March 31, 2024 : H 1,198 lakhs) as an advance for purchase of TDR from a third party, for purposes of increasing floor space index in connection with hospital project in Gurugram. The balance as at March 31, 2025, represents amounts toward remainder TDR certificates to be provided by the third party as per terms of agreement.
(d) Carrying value aggregating to H Nil (March 31, 2024 : H 2,898 lakhs) related to ~17,200 sqm land located in Greater Noida, allotted earlier in year 2008 for setting up a hospital. Consequent to grant of possession and execution of the lease deed during the year ended March 31, 2025, the Company has capitalised the same under right of use asset.
16.02 Prepaid expenses includes undiscounted value of interest free refundable security deposit under terms of Pathology and Service
Agreement with other healthcare service providers.
19.05 Pursuant to Regulation 31 of the SEBI Listing Regulations, the details of shareholding for the quarter ended March 31, 2025, have been submitted to the stock exchanges.
Information relating to Max Healthcare Employee Stock Option Plan, including details of options issued, exercised and lapsed during the financial year and options outstanding at the year end, is set out in note 35.04.
During the year ended March 31, 2025, the Company paid a dividend of H 1.50/- per share (15% of the face value) out of the profits of the financial year 2023-24.
The Board of Directors at their meeting held on May 20, 2025 recommended a dividend of H 1.50 per share (15% of face value) out of the profits of the financial year 2024-25, subject to approval of the shareholders.
Kayak Investments Holding Pte. Limited has been reclassified from Promoter to Public category, in compliance with Regulation 31A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, pursuant to approval from BSE Limited vide letter ref. no. LIST/COMP/RK/1509/2024-25 and National Stock Exchange of India Limited vide letter ref. no. NSE/LIST/270, with effect from December 19, 2024
During the year ended March 31, 2025, the Company issued and allotted 2,29,645 (March 31, 2024: 9,89,583) ordinary shares of H 10 each on exercise of employee stock options granted under the Company’s Employee Stock Option 2020 Scheme.
19.02 Terms and rights attached to equity shares
The Company has only one class of equity shares having a par value of H 10 per share. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts, if any. The distribution will be in proportion to the number of equity shares held by the shareholders.
(i) Securities premium represents the premium on issue of shares. This can be utilized only for limited purpose as per the provisions of the Companies Act, 2013.
(ii) During the year ended March 31, 2025, Company issued and allotted 2,29,645 (March 31, 2024: 9,89,583) ordinary shares (face value of H 10 per share).Consequently, H 240 lakhs (March 31, 2024: H 2,372 lakhs) representing the fair value of the options exercised has been transferred from stock options outstanding account to securities premium.
Mr. Abhay Soi, Promoter, Chairman and Managing Director of the Company had, on November 9, 2023, transferred 90,000 equity shares of the Company to his brother, Mr. Aditya Soi (member of promoter group) by way of gift through an off-market transaction. The transfer of equity shares was in the nature of gift, hence no consideration was paid.
(i) H 17,384 lakhs (March 31, 2024 : H 17,366 lakhs) from IDFC First Bank Limited repayable in 52 quarterly installments from April, 2018 is secured by way of :
(a) A first mortgage and charge on entire immovable properties of the Company located at Max Saket Hospital and Max Shalimar bagh Hospital.
(b) A first charge by way of hypothecation of entire movable PPE (except the movable current assets) of the Company
including movable plant and machinery, machinery spares, tools and accessories, furniture, fixtures, vehicles, and
all other movable PPE of whatsoever nature but excluding the movable properties financed by specific vehicle/ equipment finance loans.
(c) A charge on the entire current assets including cash flows, receivables, books debts, revenues, raw material, stock-in
trade, and inventory of the Company of whatsoever nature and wherever arising (subject to a prior charge in favor of working capital lenders restricted to working capital limits of H 21,000 lakhs in aggregate).
(d) A first charge on the entire intangible assets of the Company, including but not limited to goodwill and uncalled capital, intellectual property.
(e) A first charge/mortgage/assignment, as the case may be, of -
i. all the rights, title, interest, benefits, claims and demands whatsoever of the Company in the project document, duly acknowledged and consented to by the relevant counter-parties to such project Documents, all as amended, varied or supplemented from time to time
ii. subject to applicable law, all the rights, title, interest, benefits, claims and demands whatsoever of the Company in the clearance, and
iii. all the rights, title, interest, benefits, claims and demands whatsoever of the Company in any letter of credit guarantee, performance bond, corporate guarantee, bank guarantee provided by any party to the project document, and
iv. all the right , title, interest, benefits claims and demands whatsoever of the Company under all insurance contracts.
(ii) H 1,718 lakhs (March 31, 2024: H 1,717 lakhs) from Indusind Bank Limited repayable in 150 monthly installments from June, 2019 is secured by way of:
(a) 1st Pari Pasu charge on the entire current assets subject to the first prior charge of working capital facility lenders to the extent of H 21,000 lakhs.
(b) 1st Pari Passu charge on the moveable fixed asset (excluding vehicles specifically charged to lenders who have financed those assets) including medical equipment (except medical equipment specifically charged to lenders who have financed those assets), movable plant and machinery, spares etc. of the borrower with other term lenders.
(c) 1st Pari Passu charge on the non-current asset of the borrower but not limited to goodwill and uncalled capital, intellectual property of the borrower with other term lenders.
(iii) H 2,195 lakhs (March 31, 2024: H 2,195 lakhs) from IDFC First Bank Limited repayable in 23 quarterly installments from August, 2022 is secured by way of :
(a) 1st Pari Passu on charge on land and building of MHIL Saket and MHIL Shalimar Bagh with other term lenders
(b) 1st Pari Passu on entire intangible assets with other term lenders
(c) 1st Pari Passu on entire movable fixed assets of MHIL (except equipment/ vehicle finance by specific loans) with other term lenders
(d) 2nd Pari Passu on entire current assets of MHIL with other term lenders (working capital lenders have first Charge on the entire current assets for their working capital limits of H 21,000 lakhs).
(iv) H 2,569 lakhs (March 31, 2024: H 2,768 lakhs) from Axis Bank Limited repayable in 17 equal quarterly installments from April 1 , 2024 till April 01, 2028 and one balance last Installment on July 01, 2028 is secured as mentioned below. by way of :
(a) First pari passu charge over the Movable Fixed Assets of the Company (Except vehicle financed by banks/NBFCs)
(b) Second Pari Passu charge on current assets of the Company.
(v) H 11,758 lakhs (March 31, 2024: Nil) from Axis Bank Limited repayable in 42 structured quarterly installments from August 2026 is secured as mentioned below. by way of :
a) Exclusive charge on the land and building of hospital facility in Sector -56, Gurgaon in the name of the borrower.
b) First Pari Passu charge over entire movable fixed assets (Excl vehicles and equipments financed) of the borrower.
Vehicle loans of H 124 lakhs (March 31, 2024: H 246 lakhs) are repayable over the period ranging from one to five years and are secured by way of hypothecation of respective vehicles.
(a) 9.75% p.a. (March 31, 2024: 9.75% p.a.) interest bearing unsecured term loan of H 11,250 lakhs (March 31, 2024: H 6,250 lakhs) availed from Hometrail Buildtech Private Limited for general corporate purpose, capital expenditure and repayment of existing debts, is repayable over the period ranging from five years. The Company has the right to prepay the facility amount at any time during the loan tenure, without any additional cost or charges.
(b) 9.75% p.a. (March 31, 2024: 9.75% p.a.) interest bearing unsecured term loan of H 1,000 lakhs (March 31, 2024: H 1,000 lakhs) availed from ALPS Hospital Limited for general corporate purpose, capital expenditure and repayment of existing debts, is repayable over the period of five years. The Company has the right to prepay the facility amount at any time during the loan tenure, without any additional cost or charges.
(i) (a) H 578 lakhs (March 31, 2024: H 579 lakhs) against sanctioned limit of H 3,500 lakhs from Yes Bank Limited.
(b) H 680 lakhs (March 31, 2024: H 818 lakhs) against sanctioned limit of H 2,000 lakhs from Indusind Bank Limited.
(c) H 389 lakhs (March 31, 2024: H 201 lakhs) against sanctioned limit of H 2,000 lakhs from ICICI Bank Limited.
(d) H Nil (March 31, 2024: H 929 lakhs) against sanctioned limit of H 2,000 lakhs from IDFC First Bank Limited.
(e) H 538 lakhs (March 31, 2024: H Nil) against sanctioned limit of H 1,500 lakhs from Axis Bank Ltd.
These cash credits are secured by way of first pari - passu charge on all current assets of the Company. The cash credits are repayable on demand.
(ii) Quarterly returns or statements of current assets filed by the Company with banks are in agreement with the books of accounts
34. Contingent liabilities, litigations and commitments 34.01. Contingent liabilities
(in H Lakhs)
S.
Particulars
No.
As at March 31, 2025
As at March 31, 2024 78,119
(i) Corporate guarantee given to financial institutions / banks in respect of financial assistance availed by subsidiaries of the Company and other healthcare service providers (amount is computed based on sanction working capital limits and outstanding term loan/ LC amount payable) [refer footnote (a) & note 35.20 (c)]
1,67,567
Corporate guarantee given to third party under long term service agreement
20,000
(ii) Claims against the Company not acknowledged as debts
- Civil Cases (refer footnote b below)
12,924
11,703
- Indirect tax (GST/VAT)(refer footnote c below)
762
249
- Income taxes
-
24
(a) Guarantees are given by the Company to the lenders, on behalf of subsidiaries/Silo’s of the Company. These are not considered as prejudicial to the interest of the Company as it provides opportunities to the Company to increase the depth and width of its offering leading to growth in revenue & improvement in profitability. The Company does not expect any default by such subsidiaries of the Company and other healthcare service providers and accordingly no liability is likely to arise on the Company. Also, guarantees as on March 31, 2024 were given by the Company to the lenders on behalf of other healthcare services provider. On repayment of the loan by such healthcare service provider, the guarantee stands withdrawn.
(b) Claims against the Company not acknowledged as debts represent the cases that are pending with various Consumer Disputes Redressal Commissions / Courts. The management based on legal advise expect that the ultimate resolution of these matters will not have a material adverse effect on the Company financial positions and results of operations. In addition, the Company has taken Professional Indemnity Insurance Policy for claims pending against the Company to secure the Company from any financial implication in case of claims adjudicated against the Company.
(c) The Company is contesting the demands of VAT and GST on various issues, i.e., disallowance of ITC, non-submission of statutory forms, revenue reconciliation in tax forms, non-payment of tax on certain income / expense heads etc. The
management, including its tax advisors, believe that it has all the necessary data sets, reconciliations and its tax position will likely be upheld in the appellate process. The management believes that the ultimate outcome of these proceedings will not have a material adverse effect on the Company’s financial position and results of operations.
34.02. There are numerous interpretative issues relating to the Supreme Court (SC) judgement dated February 28, 2019 on provident fund (PF) on the inclusion of allowances for the purpose of PF contribution as well as its applicability of effective date. The Company is evaluating and seeking legal inputs regarding various interpretative issues. However, in absence of clarity on effective date, the Company has implemented the Supreme court (SC) Judgement in respect to PF calculation from April 1, 2019 and included all allowances for the purpose of PF contribution calculation.
(b) The Company has committed to provide financial and operational support to Max Lab Limited, Eqova Healthcare Private Limited, Starlit Medical Centre Private Limited and Jaypee Healthcare Limited, subsidiaries of the Company in order to meet its future financial obligation.
(c) For commitment towards purchase of shares of subsidiary - Eqova Healthcare Private Limited, refer to note 11.02.
1. The Company has no other commitments other than those in the nature of its routine business operation for purchase/sales as per the normal operating cycle of Company, obligations under other long term agreements towards medical and management services with healthcare service providers including indemnities to such healthcare service providers.
2. The Company does not have any long term commitments or material non-cancellable contractual commitments/ contracts, including derivative contracts for which there were any material foreseeable losses.
(j) The average duration of the defined benefit plan obligation at the end of the financial year 5 Years (March 31, 2024: 5 years).
(k) The partial plan assets are maintained with life Insurance Corporation of India (‘LIC’).
(l) The Company expects to contribute H 966 lakhs (March 31, 2024: H 806 lakhs) to the plan during the next financial year.
(m) The estimates of rate of escalation in salary considered in actuarial valuation are after taking into account inflation, seniority, promotion and other relevant factors including demand and supply in the employment market. The above information is as certified by the actuary.
(n) Discount rate is based on the prevailing market yields of Indian Government securities as at the balance sheet date for the estimated term of the obligations.
(o) The sensitivity analysis above have been determined based on a method that extrapolates the impact on defined benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the financial year.
Retirement benefit in the form of provident fund is a defined contribution scheme. The Company has no obligation, other than the contribution payable to the regional PF Commissioner. The Company recognize contribution payable to provident fund scheme as an expenditure, when an employee renders related service.
The Nomination and Remuneration Committee of Board of Directors of the Company (“NRC”) approved the grant of 67,86,904 and 93,77,709 Employee stock options under the MHIL ESOP 2020 scheme & MHIL ESOP 2022 scheme respectively to the eligible employees of the Company and its subsidiaries. These options will vest subject to requirements of the SEBI SBEB Regulations and the respective MHIL ESOPs scheme.
ESOPs granted under the MHIL ESOP 2020 scheme shall vest after 1st and 2nd year from the date of grant at exercise price of H 10 per share and ESOPs granted under the MHIL ESOP 2022 scheme shall vest between 1st to 5th year from the date of grant at exercise price of H 350 to 900 per share.
The stock options vesting is subject to service and certain performance conditions mainly pertaining to certain financial parameters.
The movement in the number of stock options and the related weighted average exercise prices are given in the table below:
The Company granted stock options under the MHIL ESOP 2020 and 2022 Schemes to eligible employees, including those of subsidiaries. In line with relevant Ind AS, fair value (determined on grant date), expense of H4,268 lakhs under ESOP 2022 (March 31, 2024: H3,738 lakhs) was recognised in the Statement of Profit and Loss on a straight-line basis over the vesting period for each vesting portion. The tax deduction for such expense is however claimable only at the time of exercise of options by the allottees.
However, basis the legal advice and judicial precedents, claims tax deduction of based on the market value of shares allotted on exercise of options that exceeds the grant price. Accordingly, a tax deduction of H2,021 lakhs (ESOP 2020) has been claimed in financial year 2024-25. Deductions for unexercised options (ESOP 2020 and 2022) will be claimed in the year of exercise as per applicable tax treatment.
The Company assessed that the carrying value of all financial assets and financial liabilities approximates to their fair value.
The fair value of the financial assets and liabilities is the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair values:
Long-term fixed-rate and variable-rate receivables are evaluated by the Company based on parameters such as interest rates and individual creditworthiness of the customer. Based on this evaluation, allowances are taken into account for the expected credit losses of these receivables.
The fair value of unquoted instruments, loans from banks and other financial liabilities as well as other non-current financial liabilities are estimated by discounting future cash flows using rates currently available for debt on similar terms, credit risk and remaining maturities.
The fair value hierarchy is based on inputs used in valuation techniques that are either observable or unobservable and consists of three levels. The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments:
Level 1: Inputs are quoted (unadjusted) prices in active markets for identical assets or liabilities.
Level 2: Inputs other than quoted prices included within Level 1 are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3: Inputs are not based on observable market data (unobservable inputs). Fair values are determined in whole or in part using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data.
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company employs prudent liquidity risk management practices which inter alia means maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities. Given the nature of the underlying businesses, the corporate finance maintains flexibility in funding by maintaining availability under committed credit lines and this way liquidity risk is mitigated by the availability of funds to cover future commitments. Cash flow forecasts are prepared not only for the entities but the Group as a whole and the utilized borrowing facilities are monitored on a periodic basis and there is adequate focus on good management practices whereby the collections are managed efficiently. The Company while borrowing funds for large capital project, negotiates the repayment schedule in such a manner that these match with the generation of cash on such investment.
There has been no change in the valuation methodology for Level 3 inputs during the year. There were no transfers between Level 1, Level 2 and Level 3 during the year.
The company considers that the carrying amounts of financial assets and financial liabilities recognised in the financial statements at amortized cost will reasonably approximate their fair values.
The Company has instituted a risk management framework which besides other, seeks to also minimize potential adverse effects on the Company’s financial performance. Financial risk management is carried out by a corporate finance department under policies approved by the Audit Committee and Risk Management Committee from time to time. The corporate finance department, evaluates and hedges financial risks e.g. forward covers for foreign currency risk exposures. The Audit Committee and Risk Management Committee oversee the financial risk management and had approved written policies covering specific areas, such as foreign exchange risk, credit risk, use of derivative financial instruments and non-derivative financial instruments, and investment of excess liquidity etc.
The Company is exposed to capital risk, liquidity risk, credit risk and market risk. These risks are managed pro-actively by the senior management of the Company, duly supported by various functionaries and Committees.
c) Credit risk
Credit risk is the risk of financial loss arising from counterparty failure to repay or service debt according to the contractual terms or obligations. Credit risk encompasses of 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
The Company’s objective when managing capital is to safeguard its ability to continue as a going concern in order to provide returns to its shareholders and benefits for other stakeholders and to provide for sufficient capital expansion. The capital structure of the Company consists of equity and debt, which includes the borrowings disclosed in notes 21 and 22, cash and cash equivalents disclosed in note 17 and equity as disclosed in the statement of financial position. The Company uses the Debt to Equity as well as Net Debt to EBITDA ratio to measure the funding versus raising of additional share capital requirement. Debt to Equity ratio is calculated as debt divided by the Shareholder’s Fund and for calculating Net Debt to EBITDA, Net Debt is divided by the Normalized EBITDA for continued and discontinued operations. Net debt is calculated as long term and short term borrowings (including current maturities) as shown in the note 21 and 22 less net cash and cash equivalents. Normalized EBITDA is defined as earnings before interest, tax, depreciation and amortization for continued and discontinued operations. In order to maintain or adjust the capital structure, the Company may issue new shares or sell assets to reduce debt or raise debt and review decision on distributions to the shareholders. The Debt to Equity ratio of the Company as at March 31, 2024 and March 31, 2025 stood at 0.06 and 0.07 respectively and net debt to EBITDA ratio of the Company as at March 31, 2025 stood at 0.20.
Note : The cash and cash equivalents is more than the debt amount. Accordingly, net debt to EBITDA ratio is indeterminable as at March 31, 2024”
The Audit Committee, the Risk Management Committee and the Senior management review the status vis a vis approved maximum limit of debt, based on lower of ratio of Debt : Equity of 2:1 and Net Debt to EBITDA ratio of 4:1.
a continuous basis to whom the credit has been granted after obtaining necessary approvals for credit. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks, foreign exchange transactions and other financial instruments (also refer note 34.01).
Customer credit risk is managed by each business unit subject to the Company's established policy, procedures and control relating to customer credit risk management. Management evaluate credit risk relating to customers on an ongoing basis. Receivable control management department assessed the credit quality of the customer, taking into account its financial position, past experience and other factors. The Company provides credit to individuals on exceptional basis only. An impairment analysis is performed at each reporting date on an individual basis. Trade receivables comprise a widespread customer base and a large part of these sits in the State and Central Government bodies and institutions (both public and private). A large segment of the Company's customers settle their bill in cash or using major credit cards on discharge date as far as possible. Further, a fairly large proportion of the customers are discharged post confirmation of third party administrator of the insurance companies, with whom the Company has a written contract. Further the Company provides for allowance for deductions based on empirical evidence whereby the receivables from various counterparties is marked down at the time of recognition of revenue. The management does not expect any significant loss from non-performance by counterparties on credit granted during the period under review that has not been provided for.
Credit risk from balances with banks and financial institutions is managed by the Company's treasury department in accordance with the Company's policy. Investments of surplus funds are made in bank deposits and other risk free securities. All balances with banks and financial institutions is subject to low credit risk due to good credit ratings assigned by international and domestic credit rating agencies. Further, the Company reviews the creditworthiness of the counter-parties (on the basis of its ratings, credit spreads and financial strength) of all the above assets on an ongoing basis, and if required, takes necessary mitigation measures.
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprises three types of risk: currency rate risk, interest rate risk and other price risks, such as equity price risk and commodity price risk. Financial instruments affected by market risks include loans and borrowings, deposits, investments and foreign currency receivables and payables. The sensitivity analysis in the following sections relate to the position as at March 31 2025. The analysis exclude the impact of movements in market variables on the carrying values of employee benefits provisions, provisions, and the non-financial assets and liabilities. The sensitivity of the relevant profit and loss item is the effect of the assumed changes in the respective market risks. This is based on the financial assets and financial liabilities held as of March 31, 2025.
(i) Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company's exposure to the risk of changes in foreign exchange rates relates primarily to the Company's operating activities (when revenue or expense is denominated in foreign currency). Foreign currency exchange rate exposure is partly balanced by purchasing of goods from the respective countries. The Company evaluates exchange rate exposure arising from foreign currency transactions and follows established risk management policies.
1% appreciation/depreciation of the respective foreign currencies with respect to functional currency of the Company would result in decrease/increase in the Company’s net profit/(loss) before tax by approximately H 26.48 lakhs and H 3.87 lakhs for financial assets and financial liabilities respectively for the year ended March 31, 2024.
As at March 31, 2025 and As at March 31, 2024, the Company has no derivative financial instruments such as foreign currency forward contracts to mitigate the risk of changes in exchange rate on foreign currency exposures. The counterparty for these contracts is generally a bank or a financial instruments.
Interest rate 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 long term debt obligation at floating interest rates.
Equity risk is "the financial risk associated with holding equity instruments of a specific company as an investment of the Company." Equity risk is often related to ownership in companies through the purchase of shares and/or stock. Although the Company is exposed to equity risk, this exposure is insignificant for the Company due to the majority of its investments being in subsidiaries.
Terms and conditions of transactions with related parties
a) The transactions with related parties are made on terms equivalent to those that prevail in arm's length transactions and approved by the Audit Committee.
b) The income/expense from sales to and purchases from related parties are made on arm's length basis. Outstanding balances at the year end are unsecured and interest free.
c) The Company has given corporate guarantees of H 1,87,567 lakhs (March 31, 2024 : H 97,412 lakhs) on behalf of the related parties [refer note 35.20 (c)]
d) The above transactions with related parties are exclusive of taxes.
The Company’s objective while managing capital is to safeguard its ability to continue as a going concern (so that it is enabled to provide returns and create value for its shareholders, and benefits for other stakeholders), support business stability and growth, ensure adherence to the covenants and restrictions imposed by lenders and / or relevant laws and regulations, and maintain an optimal and efficient capital structure so as to reduce the cost of capital. However, the key objective of the Company’s capital management is to, ensure that it maintains a stable capital structure with the focus on total equity, uphold investor; creditor and customer confidence, and ensure future development of its business activities. In order to maintain or adjust the capital structure, the Company may declare dividends, return capital to shareholders etc.
The Company has receivable amounting to H 68,324. lakhs (March 31, 2024 : H 43,483 lakhs) from other healthcare service providers, i.e., Devki Devi Foundation, Balaji Medical and Diagnostic Research Centre and Gujarmal Modi Hospital & Research Centre for Medical Sciences with whom the Company have long term medical services and pathology service agreement (‘Service Agreements’). Amounts recoverable include the following:
The recovery of these balances depends on the future cash flows and earning capacity of these healthcare service providers. Management has carried out an assessment and have concluded that the amounts are fully recoverable and no impairment in the value of the amount is necessitated.
(b) Impairment assessment of recoverable amounts from controlled entity (‘Silo’) with whom the Company has long term Operation and Management Agreement
The Company has amount receivable amounting to H 38,874 lakhs (March 31, 2024 : H 24,985 lakhs) from Dr. B L Kapur Memorial Hospital ('the Hospital'), Dr. Balabhai Nanavati Hospital (through Max Hospitals And Allied Services Limited) and Max Hospital Dwarka (A unit of Muthoot Hospital Private Limited), with whom the Company has long term Operation and Management (‘O&M’) Agreement. Under terms of O&M agreement, the Company is eligible for fixed and variable management fees from the Hospital for managing the hospital activities as per terms of the agreement. Amounts recoverable include the following:
35.16 The Company does not have any transactions with struck off Companies uner section 248 of Companies Act, 2013 or section 560 of Companies Act, 1956.
35.17 The Board of Directors of ALPS Hospital Limited ("ALPS''/ 'Transferor') and Max Hospitals and Allied Services Limited (''MHASL''/ 'Transferee') wholly owned subsidiaries of the Company, engaged in providing healthcare services, at their respective meetings held on May 16, 2022, approved the Scheme of Amalgamation ('Scheme'). Following this, a petition was filed before the Hon'ble National Company Law Tribunal ('NCLT') under the provisions of sections 230 to 232 of the Companies Act, 2013, along with the applicable rules. Hon'ble NCLT vide its order dated February 25, 2025, approved the said Scheme with the appointed date of April 1, 2024. The merger has become effective from March 28, 2025.
35.18 The Company acquired a 63.65% stake in Jaypee Healthcare Limited (‘JHL’) on October 4, 2024, and the remaining 36.35% stake was acquired on November 11, 2024, for an aggregate consideration of approximately H 625 crore. Further, the Company provided a short term loan to JHL to settle the dues of its financial creditors. The Hon’ble NCLAT on October 17, 2024, ordered the closure of the Corporate Insolvency Resolution Process against JHL.
Additionally, an amount of H 7,363 lakhs was paid to the Yamuna Expressway Industrial Development Authority by the Company to seek permission for Change in Shareholding in JHL, which has been disclosed as ‘Exceptional Item’.
35.19 The liquidator appointed pursuant to the scheme of voluntary liquidation, approved by the shareholders of ET Planners Private Limited (‘ET Planners’), a step-down wholly owned subsidiary of the Company, distributed the entire business undertaking of ET Planners to ALPS Hospital Limited (‘ALPS’), its immediate holding company, on October 18, 2024, on a going-concern basis.
other person(s) or entity(ies), including foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
35.22 The Board of Directors of Crosslay Remedies Limited (CRL) (wholly owned subsidiary of the Company) and Jaypee Healthcare Limited (JHL) (wholly owned subsidiary of the Company), at their respective meetings held on March 21, 2025, approved the Scheme of Amalgamation under sections 230 to 232 and other applicable provisions and rules under the Companies Act, 2013. In this regard, on May 7, 2025, CRL and JHL have filed a joint application with Hon’ble National Company Law Tribunal, Chandigarh Bench for necessary approvals. The merger, once approved, will unlock synergies, reduce operational costs, optimize cash flows and enhance the financial position of the merged entity.
35.23 No funds (which are material either individually or in the aggregate) have been received by the Company from any person(s) or entity(ies), including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
35.24 During the year, the Company has reclassified employee-related payables, which were previously presented under “Trade Payables” to “Other Financial Liabilities” in the Balance Sheet. Further, “Impairment loss on trade receivables and advances, bad debts and debit balance written off” has been reclassified from Other income to Other expenses in Statement of Profit and Loss account. These reclassifications are in line with the recent opinion of Expert Advisory Committee of ICAI.
35.25 The Company was not required to transfer any amount to Investor Education and Protection Fund during the year.
35.26 Other statutory information
(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.
(ii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
(iii) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
(iv) The Company has not accepted any deposit or amount which are deemed to be deposits.
(v) The Company has not entered into any non cash transaction with its directors or person connected with its directors.
(vi) The Company has no such 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.
(vii) The Company has not been declared as wilful defaulter by any bank or financial institution (as defined under the Companies Act, 2013) or consortium thereof, in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.
35.27 The figures have been rounded off to the nearest lakhs of H up to two decimal places. The figure 0.00 wherever stated represents value less than H 50,000/-.