(b) Claims, Provisions and Contingent Liabilities

The Company has ongoing discussions/litigations with various tax and regulatory authorities and third
parties. Where an outflow of funds is believed to be probable and a reliable estimate of the outcome
of the dispute can be made based on management's assessment of specific circumstances of each
dispute and relevant external advice, management provides for its best estimate of the liability. Such
accruals are by nature complex and can take number of years to resolve and can involve estimation
uncertainty. Information about such litigations if any, is provided in the Notes to the financial
statements.

(c) Revenue Recognition

Revenue from fees charged for services rendered to insured and corporate patients are subject to
approvals from the insurance companies and corporates. Accordingly, the Company estimates the
amounts likely to be disregarded by such companies based on past trends. Estimations based on past
trends are also required in determining the value of consideration from customers to be allocated to
award credits for customers.

(d) Fair value measurements and valuation processes

Some of the Company's assets and liabilities are measured at fair value for financial reporting
purposes.

In estimating the fair value of an asset or a liability, the Company uses market-observable data to the
extent it is available. Where Level 1 inputs are not available, the Company engages third party
qualified valuers to perform the valuation.

(e) Expected Credit Loss >

The Company has used a practical expedient by computing the expected credit loss allowance for trade
receivables based on a provision matrix considering the nature of receivables and the risk
characteristics. The provision matrix takes into accounts historical credit loss experience and adjusted
for forward looking information. The expected credit loss allowance is based on the ageing of the day of
the receivables are due and the rates as given in the provision matrix.

1.4 Property, Plant and Equipment (PPE)

Items of Property, plant and equipment acquired or constructed are initially recognized at historical cost
net of recoverable taxes, duties, trade discounts and rebates, less accumulated depreciation and
impairment loss, if any. The historical cost of Property, plant and equipment comprises of its purchase
price, borrowing costs and adjustment arising from exchange rate variations attributable to the assets,
including any cost directly attributable to bringing the assets to their working condition for their
intended use.

Subsequent costs are included in the asset's carrying amount or recognized as a separate asset, as
appropriate, only when it is probable that future economic benefits associated with the item will flow
to the Company and the cost of the item can be measured reliably. The Company identifies and
determines cost of each component/part of the plant and equipment separately, if the component/part
has a cost which is material to the total cost of the plant and equipment and has useful lives that is
materially different from that of the remaining plant and equipment.

The carrying amount of any component accounted for as a separate asset is derecognized when
replaced. All other repairs and maintenance are charged to the Statement of Profit and Loss during the
year in which they are incurred. Gains and losses arising from derecognition of PPE are measured as the
difference between the net disposal proceeds and the carrying amount of the asset and are recognized
in the Statement of Profit and Loss when the asset is derecognized.

Depreciation methods, estimated useful lives and residual values

Depreciation on Property, Plant and Equipment is provided under straight line method (refer Note 2 for
change in method of depreciation effective from 1st April 2024) at the rates determined based on
Useful Lives of the respective assets and the residual values in accordance with Schedule II of the

1.5 Intangible Assets

Intangible assets are recognized only if it is probable that future economic benefits that are attributable
to the asset will flow to the enterprise and the cost of the asset can be measured reliably.Computer
software licenses are capitalized on the basis of costs incurred to acquire and bring to use the specific
software. Operating software is capitalized and amortized along with the related fixed asset. The useful
life of the software is estimated to be 10 years.

1.6 Impairment of Assets

At the Balance Sheet date an assessment is done in accordance with Ind AS 36, to determine whether
there is any indication of impairment in the carrying amount of the company's assets. An asset is
treated impaired when carrying cost of assets exceeds its recoverable value.

An impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is
identified as impaired. The impairment loss, if any, recognized in prior accounting period is reversed if
there has been any change in the estimate of recoverable amount.

1.7 Inventories

Closing stock of pharmacy, canteen, operation theatre items, consumables, optical frames and lens are
valued at lower of cost and net realizable value. Cost is arrived at on first in first out basis except for
opticals and lens. Stores & spares which do not meet the definition of Property, Plant and Equipment
are accounted as inventories. Net realizable value is the estimated selling price in the ordinary course of
business, less estimated cost of completion and estimated costs necessary to make the inventory
saleable.

1.8 Leases

With effect from 1st April 2019, Ind AS 116 - "Leases" supersedes Ind AS 17 - "Leases". The Company
has adopted Ind AS 116 using the prospective approach. The application of Ind AS 116 has resulted into
recognition of 'Right-of-Use' asset with a corresponding lease liability in the balance sheet.

The company as lessor

Lease income on an operating lease is recognized in the statement of profit and loss on a straight line
basis over the term of the relevant lease except to the extent that the lease payments are structured to
compensate for the expected inflationary cost.

The company as lessee

The company as a lessee, recognizes a right-of-use asset and a lease liability for its leasing
arrangements, if the contract conveys the right to control the use of an identified asset.

The contract conveys the right to control the use of an identified asset, if it involves the use of an
identified asset and the Company has substantially all of the economic benefits from use of the asset
and has right to direct the use of the identified asset. The cost of the right-of-use asset shall comprise
of the amount of the initial measurement of the lease liability adjusted for any lease payments made at
or before the commencement date plus any initial direct costs incurred. The right-of-use assets is
subsequently measured at cost less any accumulated depreciation, accumulated impairment losses, if
any and adjusted for any re-measurement of the lease liability. The right-of-use assets is depreciated
using the written down value method from the commencement date over the shorter of lease term or
useful life of right-of-use asset

The Company measures the lease liability at the present value of the lease payments that are not paid
at the commencement date of the lease. The lease payments are discounted using the interest rate
implicit in the lease, if that rate can be readily determined. If that rate cannot be readily determined,
the Company uses incremental borrowing rate. For short-term and low value leases, the Company
recognizes the lease payments as an operating expense on a straight-line basis over the lease.

Lease liability and ROU asset have been separately presented in the Balance Sheet and lease payments
have been classified as financing cash flows.

1.9 Financial Instruments

Financial Assets and financial liabilities are recognized when a Company entity 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 or 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 or loss are recognized immediately in Profit and Loss.

De-recognition of financial assets

The Company derecognizes a financial asset when the contractual rights to the cash flows from the
asset expire, or when it transfers the financial asset and the transfer qualifies for de-recognition under
Ind AS - 109. If the Company neither transfers nor retains substantially all the risks and rewards of
ownership and continues to control the transferred asset, the Company recognizes 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 recognize the financial asset and also recognizes a collateralized borrowing for the
proceeds received.

On de-recognition of a financial asset in its entirety, the difference between the asset's carrying
amount and the sum of the consideration received and receivable and the cumulative gain or loss that
had been recognized in other comprehensive income and accumulated in equity is recognized in profit
or loss if such gain or loss would have otherwise been recognized in profit or loss on disposal of that
financial asset.

De-recognition of Financial Liabilities

The Company derecognizes financial liabilities when, and only when, the Company's obligations are
discharged, cancelled or have expired. An exchange between 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 derecognized and the consideration paid and payable is recognized in the Statement of Profit
and Loss.

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 cash on hand, balances with banks which are unrestricted for withdrawal and
usage.

1.10 Revenue recognition

(i) Rendering of Eye care Services

Revenue from eye care services includes consultancy, physical examinations, lab examinations,
surgeries, nursing care, dietary and other allied services. The revenue for these services are recognised
based on the transaction value (net off discounts and waivers) when each separate performance
obligation is satisfied to the extent it is probable that the economic benefit will flow to the entity. The
revenue realisable from insurance claims are recognised at the earlier of settlement or acceptance of
claim by the insurance company.

(ii) Sale of goods

Revenue from sale of goods include optical sales, pharmacy sales and canteen sales. The revenue for
these goods are recognised where the performance obligation is satisfied and the control of these
goods are transferred to the customer. The revenue is stated exclusive of GST and are net of sales
returns, discounts, provision for anticipated returns on expiry, made on the basis of management
expectation taking into account past experience.

⁽ⁱⁱⁱ⁾ Interest income

For all financial instruments measured at amortized cost, interest income is recorded using the effective
interest rate, which is the rate that exactly discounts the estimated future cash receipts through the
expected life of the financial instrument. Interest income is included in 'Other Income' in the Statement
of Profit and Loss.

1.11 Employee Benefits

Payments to defined contribution retirement benefit plans are recognized as an expense when
employees have rendered service entitling them to the contributions.

Liabilities with regard to the Gratuity plan are determined by actuarial valuation, performed by an
independent actuary, at each Balance sheet date using the projected unit credit method. Re¬
measurement, comprising actuarial gains and losses, the effect of the changes to the asset ceiling (if
applicable) and the return on plan assets (excluding interest), is reflected immediately in the statement
of financial position with a charge or credit recognized in other comprehensive income in the period in
which they occur. Re-measurement recognized in other comprehensive income is reflected immediately
in retained earnings and will not be reclassified to profit or loss. Past service cost is recognized in profit
or loss in the period of a plan amendment. Net interest is calculated by applying the discount rate at the
beginning of the period to the net defined benefit liability or asset.

1.12 Provisions

A provision is recognised when the Company has a present obligation (legal or constructive) as a result
of past event and it is probable that an outflow of resources embedded and that the company will be
required to settle the obligation, in respect of which a reliable estimate can be made of the amount of
obligation.

1.13 Taxes on Income

i. Current Tax:

Tax on Income for the current period is determined on the basis of taxable income and tax credit
computed in accordance with the provisions of the Income Tax Act 1961, and based on the expected
outcome of assessments/ appeals.

ii. Deferred Tax:

Deferred Tax is recognized on timing difference between accounting income and the taxable income for
the year quantified using the tax rates and laws enacted or substantively enacted as on the balance
sheet date. Deferred Tax assets are recognized and carried forward to the extent that there is a
reasonable certainty that sufficient future taxable income will be available against which such deferred
tax assets can be realized.

Minimum Alternate Tax ("MAT") credit is recognized as an asset only when and to the extent there is
convincing evidence that the company will pay normal income tax during the specified period. In the
year in which the MAT credit becomes eligible to be recognized as an asset in accordance with the
recommendations contained in the Guidance note issued by Institute of Chartered Accountants of India
("ICAI"), the said asset is created by way of credit to Statement of Profit and Loss. The company reviews
the same at each Balance Sheet date and writes down the carrying amount of MAT credit entitlement
to the extent there is no longer convincing evidence to the effect that company will pay normal income
tax during the specified period.

1.14 Earnings Per Share

Basic Earnings Per Share are computed by dividing profit or loss attributable to equity shareholders of
the Company by the weighted average number of equity shares outstanding during the year. The
Company did not have any potentially dilutive securities in any of the years presented.

1.15 Contingent Liabilities

Disclosure of contingent liability is made when there is a possible obligation arising from past
events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or
more uncertain future events not wholly within the control of the Company or a present obligation
that arises from past events where it is either not probable that an outflow of resources embodying
economic benefits will be required to settle or a reliable estimate of amount cannot be made.

Contingent liabilities, which are considered significant and material by the Company, but not
provided for in the books of accounts, are disclosed by way of notes to accounts.

The Company has ongoing disputes with tax authorities and forum mainly relating to treatment of
characterization and classification of certain items. The Company has demands amounting to Rs.
82.17 Lakhs and Rs. 84.20 Lakhs as at March 31, 2025 and 2024, respectively from various tax
authorities and forum which are being contested by the Company based on the management
evaluation and on the advice of tax consultants.

1.16 Segment reporting

The company is engaged in the business of healthcare activities. Hence, there is only one reportable
segment.

1.17 Statement of Cash flows

Cash flows are reported using the indirect method, whereby profit / (loss) before tax 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 based on classification made in a manner considered most appropriate to Company's
business.

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 both the direct risk of default and the risk of deterioration of
creditworthiness as well as concentration risks.

Financial instruments that are subject to concentrations of credit risk, principally consist of investments classified as fair
value through profit and loss, trade receivables, loans and advances and derivative financial instruments. The Company
strives to promptly identify and reduce concerns about collection due to a deterioration in the financial conditions and
others of its main counterparties by regularly monitoring their situation based on their financial condition. None of the
financial instruments of the Company result in material concentrations of credit risks.

The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk is
Rs. 786.16 Lakhs as at March 31,2025 and Rs. 1064.98 Lakhs as at March 31, 2024, respectively, being the total of trade
receivables, cash & cash equivalents, other bank balances and non-current financial assets.

Financial assets that are neither past due nor impaired

None of the Company's cash equivalents or other bank balances are past due or impaired. Regarding trade receivables that
are neither impaired nor past due, there were no indications as at March 31, 2025 and March 31, 2024, that defaults in
payment obligations will occur.

Credit quality of financial assets and impairment loss

The quality of financial assets can be assessed by way of ageing analysis of trade receivables discussed in "Note : 7 Trade
Receivables".

Liquidity risk

Liquidity risk refers to the risk that the Company will encounter difficulty to 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.

A. Defined contribution plan

The Company makes contributions towards provident fund and employees state insurance as a defined
contribution retirement benefit fund for qualifying employees. The provident fund is operated by the regional
provident fund commissioner. The Employees state insurance is operated by the Employees State Insurance
Corporation. Under these schemes, the Company is required to contribute a specific percentage of the payroll
cost as per the statue.

The total expenses recognized during the year in the statement of profit and loss was Rs. 77.74 lakhs (previous
year: Rs. 69.32 lakhs), and it represents contributions payable to these plans by the Company.

B. Defined benefit plans
Gratuity

The Company operates post-employment defined benefit plan that provide gratuity. The gratuity plan entitles an
employee, who has rendered at least five years of continuous service, to receive one-half month's salary for each
year of completed service at the time of retirement/exit. The Company's obligation in respect of the gratuity
plan, which is a defined benefit plan, is provided for based on actuarial valuation carried out by an independent
actuary using the projected unit credit method. The Company recognizes actuarial gains and losses immediately
in the statement of profit and loss. The Company accrues gratuity as per the provisions of the Payment of
Gratuity Act, 1972 as applicable as at the balance sheet date.

The company contributes all ascertained liabilities towards gratuity to the Fund. The plan assets have been
invested 100% in insurer managed funds. The company provides for gratuity , a defined benefit retiring plan
covering eligible employees. The Gratuity plan provides a lump sum payment to the vested employees at
retirement, death, incapacitation or termination of employment based on the respective employees salary and
tenure of the employment with the company.

Note 43: Other Statutory Information

(i) Benami property:

The company does not have any Benami property where any proceedings have been initiated or pending under the Benami
Transactions (Prohibition) Act, 1988 during the year.

(ii) Borrowings :

The company has no borrowings from Banks or Financial Institutions on the basis of security of current assets during the
year. Hence, there is no requirement of submission of stock statements to Banks.

(iii) Wilful Defaulter :

The company has not been declared as a wilful defaulter by any Bank or Financial Institution during the year.

(iv) Relationship with Struck off Companies :

The company did not have any transaction with the companies struck off under Section 248 of the Companies Act, 2013 or
Section 560 of the Companies Act, 1956.

(v) Registration of Charges :

Since the company is debt free, no charges or satisfaction are yet to be registered with the Registrar of Companies.

(vi) Layers of Companies :

The company does not hold any subsidiaries. Hence, compliance with the number of layers prescribed under Section 2(87)
of the Companies Act, 2013 read with Companies (Restriction on number of Layers) Rules, 2017 is not applicable.

(vii) Scheme of arrangements :

No scheme of arrangements has been approved by the Competent Authority in terms of Section 230 to 237 of the
Companies Act, 2013.

(viii) Utilisation of Borrowed funds and share premium :

(A) The company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign
entities (Intermediaries) with the understanding that the Intermediary shall: (a) 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 (b)
Provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

(B) The Company has 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: (a) 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 (b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(ix) Undisclosed Income :

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.)

Notes:

(i) An order has been received from the Income-tax department for FY 2009-10 and FY 2016-17 for an amount of Rs. 0.13
Lakhs and Rs. 55.27 Lakhs. The demand of Rs. 0.13 Lakhs has been disagreed by the company. The demand of Rs. 55.27
Lakhs was for depositing specified bank notes during the demonetisation period. The company has filed an appeal against
the said demand before Commissioner of Income-tax (Appeals), Coimbatore. The liability has been considered contingent
until the conclusion of the appeal.

(ii) An order has been received from Kerala Sales Tax Department for an amount of Rs. 26.77 Lakhs. The company has filed
an appeal against the said demand before Kerala Value Added Tax Appellate Tribunal and High Court of Kerala for an
amount of Rs. 5.16 Lakhs and Rs. 21.61 Lakhs respectively. The liability has been considered contingent until the conclusion
of the appeal.

(iii) A customer has filed a complaint against the company under section 35 of the Consumer Protection Act, 2023 before
the District Consumer Disputes Redressal Forum, Coimbatore for an amount of Rs.2.03 Lakhs. The liability has been
considered contingent during the FY 2023-24. The court has dismissed the petition and ordered in our favour on 16-05¬
2024.

(iv) The Company believes that none of the above matters, either individually or in aggregate, are expected to have any
material adverse effect on its financial statements. The cash flows in respect of above matters are determinable only on
receipt of judgements/decisions pending at various stages/forums.

(v) There are no bank and corporate guarantee given by the company.

Note 45: Corresponding figures for the previous year presented have been regrouped / rearranged wherever necessary to
conform to the current year presentation.

For Anbarasu and Jalapathi For and on behalf of the Board of Directors of

Chartered Accountants Lotus Eye Hospital and Institute Limited

Firm Registration No.: 010795S

(sd.) CA. K. Jalapathi (sd.) Ms. S.Sangeetha Sundaramoorthy (sd.) CA Perumalsamy Mahendran

Partner Managing Director Director

Membership no: 214823 DIN: 01859252 DIN:06680557

(sd.) Mr. Senagounder Natesan (sd.) Dr. K S Ramalingam

Director Chief Executive Officer,

DIN: 09012904 Executive director

DIN:01016571

Coimbatore, (sd.) CA Reghunathan Ramanujam (sd.) CS Achuth Menon

May 29,2025. Chief Financial Officer Company Secretary