2.11 Provisions and contingent liabilities

Provisions are recognized when there is a present
obligation as a result of a past event, it is probable
that an outflow of resources embodying economic
benefits will be required to settle the obligation
and there is a reliable estimate of the amount of
the obligation. Provisions are measured at the
best estimate of the expenditure required to settle
the present obligation at the Balance sheet date.

If the effect of the time value of money is material,
provisions are discounted using a current pre¬
tax rate that reflects, when appropriate, the risks
specific to the liability. When discounting is used,
the increase in the provision due to the passage of
time is recognized as a finance cost.

Contingent liabilities are disclosed 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 will
be required to settle or a reliable estimate of the
amount cannot be made.

2.12 Cash and cash equivalents

Cash and cash equivalent in the balance sheet
comprise cash at banks, cash on hand and
short-term deposits net of bank overdraft with an
original maturity of three months or less, which are
subject to an insignificant risk of changes in value.
For the purposes of the cash flow statement, cash
and cash equivalents include cash on hand, cash
in banks less bank and book overdraft.

2.13 Dividends

Dividends are recognised when they become
legally payable. In the case of interim dividends to
equity shareholders, this happens when dividends
are declared by the directors. In the case of final
dividends, this happens when dividends approved
by the shareholders at the annual general meeting.

2.14 Financial instruments

A financial instrument is any contract that gives
rise to a financial asset of one entity and a financial
liability or equity instrument of another entity.

(a) Financial assets

(i) Initial recognition and measurement

At initial recognition, financial asset
is measured at its fair value plus, in
the case of a financial asset not at fair
value through profit or loss, transaction
costs that are directly attributable to
the acquisition of the financial asset.
Transaction costs of financial assets
carried at fair value through profit
or loss are expensed in profit or loss.
However, trade receivables generally
do not contain a significant financing
component and are measured at
transaction price.

(ii) Subsequent measurement

For purposes of subsequent
measurement, financial assets are
classified in following categories:

a) at amortized cost; or

b) at fair value through other
comprehensive income; or

c) at fair value through profit or loss.

The classification depends on the
entity’s business model for managing
the financial assets and the contractual
terms of the cash flows.

Amortized cost: Assets that are held
for collection of contractual cash flows
where those cash flows represent solely
payments of principal and interest are
measured at amortized cost. Interest
income from these financial assets is
included in finance income using the
effective interest rate method (eir).

Fair value through other comprehensive
income (FVOCi): Assets that are held for
collection of contractual cash flows and
for selling the financial assets, where
the assets’ cash flows represent solely
payments of principal and interest,
are measured at fair value through
other comprehensive income (FVOCi).
Movements in the carrying amount
are taken through OCI, except for the
recognition of impairment gains or losses,
interest revenue and foreign exchange
gains and losses which are recognized
in Statement of Profit and Loss. When
the financial asset is derecognized,
the cumulative gain or loss previously
recognized in OCI is reclassified from
equity to Statement of Profit and Loss
and recognized in other gains/ (losses).
Interest income from these financial
assets is included in other income using
the effective interest rate method.

Fair value through profit or loss (FVTPL):
Assets that do not meet the criteria for
amortized cost or FVOCI are measured at
fair value through profit or loss. Interest
income from these financial assets is
included in other income.

Equity instruments: All equity investments
in scope of Ind AS 109 are measured at fair
value. Equity instruments which are held
for trading and contingent consideration
recognised by an acquirer in a business
combination to which Ind AS103 applies
are classified as at FVTPL. For all other
equity instruments, the Company
may make an irrevocable election to
present in other comprehensive income
subsequent changes in the fair value.
The Company makes such election on
an instrument- by-instrument basis.

The classification is made on initial
recognition and is irrevocable.

If the Company decides to classify an
equity instrument as at FVTOCI, then all
fair value changes on the instrument,
excluding dividends, are recognized
in the OCI. There is no recycling of the
amounts from OCI to P&L, even on sale
of investment. However, the Company
may transfer the cumulative gain or
loss within equity.

Equity instruments included within the
FVTPL category are measured at fair
value with all changes recognized in the
profit and loss.

(iii) Impairment of financial assets

In accordance with Ind AS 109, Financial
Instruments, the Company applies
expected credit loss (ecl) model for
measurement and recognition of
impairment loss on financial assets that
are measured at amortized cost.

For recognition of impairment loss on
financial assets and risk exposure, the
Company determines that whether
there has been a significant increase in
the credit risk since initial recognition. If
credit risk has not increased significantly,
12-month ECL is used to provide for
impairment loss. However, if credit risk
has increased significantly, lifetime ECL
is used. If in subsequent years, credit
quality of the instrument improves such
that there is no longer a significant
increase in credit risk since initial
recognition, then the entity reverts to
recognizing impairment loss allowance
based on 12 month ECL.

Life time ECLs are the expected credit
losses resulting from all possible default
events over the expected life of a
financial instrument. The 12 month ECL is
a portion of the lifetime ECL which results
from default events that are possible
within 12 months after the year end.

ECL is the difference between all
contractual cash flows that are due to
the Company in accordance with the
contract and all the cash flows that
the entity expects to receive (i.e. all
shortfalls), discounted at the original EIR.
When estimating the cash flows, an entity
is required to consider all contractual

terms of the financial instrument
(including prepayment, extension etc.)
over the expected life of the financial
instrument. However, in rare cases
when the expected life of the financial
instrument cannot be estimated reliably,
then the entity is required to use the
remaining contractual term of the
financial instrument.

ECL impairment loss allowance (or
reversal) recognized during the year is
recognized as income/expense in the
statement of profit and loss. In balance
sheet ECL for financial assets measured
at amortized cost is presented as an
allowance, i.e. as an integral part of the
measurement of those assets in the
balance sheet. The allowance reduces
the net carrying amount. Until the asset
meets write off criteria, the Company
does not reduce impairment allowance
from the gross carrying amount.

(iv) Derecognition of financial assets

A financial asset is derecognized only when

a) the rights to receive cash flows from
the financial asset is transferred or

b) retains the contractual rights
to receive the cash flows of the
financial asset, but assumes a
contractual obligation to pay the
cash flows to one or more recipients.

Where the financial asset is transferred
then in that case financial asset is
derecognized only if substantially all
risks and rewards of ownership of the
financial asset is transferred. Where the
entity has not transferred substantially
all risks and rewards of ownership of
the financial asset, the financial asset is
not derecognized.

(b) Financial liabilities

(i) Initial recognition and measurement

Financial liabilities are classified, at initial
recognition, as financial liabilities at
fair value through profit or loss and at
amortized cost, as appropriate.

All financial liabilities are recognized
initially at fair value and, in the case of
borrowings and payables, net of directly
attributable transaction costs.

(ii) Subsequent measurement

The measurement of financial liabilities
depends on their classification, as
described below:

Financial liabilities at fair value through
profit or loss

Financial liabilities at fair value through
profit or loss include financial liabilities
held for trading and financial liabilities
designated upon initial recognition
as at fair value through profit or loss.
Separated embedded derivatives are
also classified as held for trading unless
they are designated as effective hedging
instruments. Gains or losses on liabilities
held for trading are recognized in the
Statement of Profit and Loss.

Loans and borrowings

After initial recognition, interest-bearing
loans and borrowings are subsequently
measured at amortized cost using the EIR
method. Gains and losses are recognized
in Statement of Profit and Loss when the
liabilities are derecognized as well as
through the EIR amortization process.
Amortized cost is calculated by taking
into account any discount or premium
on acquisition and fees or costs that
are an integral part of the EIR. The EIR
amortization is included as finance costs
in the Statement of Profit and Loss.

(iii) Derecognition

A financial liability is derecognized
when the obligation under the liability
is discharged or cancelled or expires.
When an existing financial liability is
replaced by another from the same
lender on substantially different terms,
or the terms of an existing liability
are substantially modified, such an
exchange or modification is treated as
the derecognition of the original liability
and the recognition of a new liability.
The difference in the respective carrying
amounts is recognized in the Statement
of Profit and Loss as finance costs.

2.15 Employee Benefits

(a) Short-term obligations

Liabilities for wages and salaries, including
non-monetary benefits that are expected to
be settled wholly within 12 months after the end
of the year in which the employees render the

related service are recognized in respect of
employees’ services up to the end of the year
and are measured at the amounts expected
to be paid when the liabilities are settled. The
liabilities are presented as current employee
benefit obligations in the balance sheet.

(b) Other long-term employee benefit
obligations

(i) Defined contribution plan

Provident Fund: Contribution towards
provident fund is made to the regulatory
authorities, where the Company has
no further obligations. Such benefits
are classified as Defined Contribution
Schemes as the Company does not carry
any further obligations, apart from the
contributions made on a monthly basis
which are charged to the Statement of
Profit and Loss.

Employee''s State Insurance Scheme:
Contribution towards employees''
state insurance scheme is made to
the regulatory authorities, where the
Company has no further obligations.
Such benefits are classified as Defined
Contribution Schemes as the Company
does not carry any further obligations,
apart from the contributions made on a
monthly basis which are charged to the
Statement of Profit and Loss.

(ii) Defined benefit plans

Gratuity: The Company provides

for gratuity, a defined benefit plan
(the ''Gratuity Plan") covering eligible
employees in accordance with the
Payment of Gratuity Act, 1972. The Gratuity
Plan provides a lump sum payment
to vested employees at retirement,
death, incapacitation or termination
of employment, of an amount based
on the respective employee''s salary.
The Company''s liability is actuarially
determined (using the Projected Unit
Credit method) at the end of each year.
Actuarial losses/gains are recognized in
the other comprehensive income in the
year in which they arise.

Compensated Absences: Accumulated
compensated absences, which are
expected to be availed or encashed
within 12 months from the end of the
year are treated as short term employee
benefits. The obligation towards the
same is measured at the expected

cost of accumulating compensated
absences as the additional amount
expected to be paid as a result of the
unused entitlement as at the year end.

Accumulated compensated absences,
which are expected to be availed or
encashed beyond 12 months from the end
of the year end are treated as other long
term employee benefits. The Company''s
liability is actuarially determined (using
the Projected Unit Credit method) at the
end of each year. Actuarial losses/gains
are recognized in the statement of profit
and loss in the year in which they arise.
Leaves under define benefit plans can
be encashed only on discontinuation of
service by employee.

(c) Share-based payments

Employees (including senior executives) of
the Company receive remuneration in the
form of share-based payments, whereby
employees render services as consideration
for equity instruments (equity-settled
transactions). The cost of equity-settled
transactions is determined by the fair value
at the date when the grant is made using an
appropriate valuation model.

That cost is recognised, together with a
corresponding increase in share-based
payment (SBP) reserves in equity, over the
period in which the performance and/or
service conditions are fulfilled in employee
benefits expense. The cumulative expense
recognised for equity-settled transactions
at each reporting date until the vesting
date reflects the extent to which the vesting
period has expired and the Companies best
estimate of the number of equity instruments
that will ultimately vest. The statement of
profit and loss expense or credit for a period
represents the movement in cumulative
expense recognised as at the beginning
and end of that period and is recognised in
employee benefits expense.

The dilutive effect of outstanding options is
reflected as additional share dilution in the
computation of diluted earnings per share.

2.16 Contributed equity

Equity shares are classified as equity share capital.

Incremental costs directly attributable to the issue
of new shares or options are shown in equity as a
deduction, net of tax, from the proceeds.

2.17 Earnings per equity share

Basic earnings per share is calculated by dividing
the net profit or loss for the year attributable to
equity shareholders by the weighted average
number of equity shares outstanding during the
year. Earnings considered in ascertaining the
Company''s earnings per share is the net profit
or loss for the year after deducting preference
dividends and any attributable tax thereto for
the year. The weighted average number of equity
shares outstanding during the year and for all
the years presented is adjusted for events, such
as bonus shares, other than the conversion of
potential equity shares, that have changed the
number of equity shares outstanding, without a
corresponding change in resources.

For the purpose of calculating diluted earnings per
share, the net profit or loss for the year attributable
to equity shareholders and the weighted
average number of shares outstanding during
the year is adjusted for the effects of all dilutive
potential equity shares.

2.18 Investment in associates (using equity
method)

Investments in associates are accounted for
using the equity method in accordance with
Ind AS 28 -Investments in Associates and Joint
Ventures. An associate is an entity over which the
Company has significant influence but not control
or joint control.

Under the equity method, the investment is initially
recognised at cost, and the carrying amount is
adjusted thereafter to recognise the Company’s
share of the post-acquisition profits or losses of the
investee in the statement of profit and loss, and the
Company’s share of other comprehensive income
of the investee in other comprehensive income.

When the Company’s share of losses in an
associate equals or exceeds its interest in the
associate, the Company discontinues recognising
its share of further losses. After the Company’s
interest is reduced to zero, additional losses are
provided for, and a liability is recognised, only to
the extent that the Company has incurred legal
or constructive obligations or made payments on
behalf of the associate.

The carrying amount of the investment is tested
for impairment whenever there is an indication of
impairment and an impairment loss is recognised

in profit or loss when the carrying amount exceeds
its recoverable amount.

3 Significant accounting judgments,
estimates and assumptions

The preparation of financial statements requires
management to make judgments, estimates and
assumptions that affect the reported amounts of
revenues, expenses, assets and liabilities, and the
accompanying disclosures, and the disclosure
of contingent liabilities. Uncertainty about these
assumptions and estimates could result in outcomes
that require a material adjustment to the carrying
amount of assets or liabilities affected in future years.

3.1 Judgements

(a) Determination of Lease term as lessee :

The Company determines the lease term as
the noncancellable period of a lease, together
with both periods covered by an option to
extend the lease if the Company is reasonably
certain to exercise that option; and periods
covered by an option to terminate the lease
if the Company is reasonably certain not to
exercise that option. In assessing whether the
Company is reasonably certain to exercise
an option to extend a lease, or not to exercise
an option to terminate a lease, it considers all
relevant facts and circumstances that create
an economic incentive for the Company to
exercise the option to extend the lease, or not to
exercise the option to terminate the lease. The
Company revises the lease term if there is a
change in the non cancellable period of lease.

(b) Determination of useful life of lease hold
improvement :

In the case of lease hold building
improvements, the depreciation is charged
based on useful life of the improvements which
is 12 years years or lease period including
expected renewal period which ever is lower.
Judgement is exercised by the Company
in determination of the expected renewal
period after considering all relevant facts
and circumstances that create an economic
incentive on the Company to renew.

3.2 Estimates and assumptions

The key assumptions concerning the future and
other key sources of estimation uncertainty at
the year end date, that have a significant risk of
causing a material adjustment to the carrying

amounts of assets and liabilities within the
next financial year, are described below. The
Company based its assumptions and estimates
on parameters available when the financial
statements were prepared. Existing circumstances
and assumptions about future developments,
however, may change due to market changes or
circumstances arising that are beyond the control
of the Company. Such changes are reflected in the
assumptions when they occur.

(a) Determination of useful lives of Property,
plant and Equipments and Intangible asset

Property, plant and equipment represent a
significant proportion of the asset base of the
Company. The charge in respect of periodic
depreciation is derived after determining
an estimate of an asset’s expected useful
life and the expected residual value at the
end of its life. The useful lives and residual
values of Company’s assets are determined
by the Management at the time the asset is
acquired and reviewed periodically, including
at each financial year end. For details refer
note 2.2 and note 5.

(b) Share-based payments - equity settled
transactions

Estimating fair value for share-based
payment transactions requires determination
of the most appropriate valuation model,
which is dependent on the terms and
conditions of the grant. This estimate
also requires determination of the most
appropriate inputs to the valuation model
including the expected life of the share option,
volatility and dividend yield and making
assumptions about them. The assumptions
and models used for estimating fair value
for share-based payment transactions are
disclosed in Note 39.

(c) Allowance for expected credit loss

Refer note 2.14(a)(iii) for the estimate used in
arriving expected credit loss allowance.

(d) Defined benefit plans (gratuity benefits and
leave encashment)

The cost of the defined benefit plans such
as gratuity and leave encashment are
determined using actuarial valuations. 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 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 year end.

The principal assumptions are the discount
and salary growth rate. The discount rate is
based upon the market yields available on
government bonds at the accounting date
with a term that matches that of liabilities.
Salary increase rate takes into account of
inflation, seniority, promotion and other
relevant factors on long term basis. For
details refer Note 38.

(e) Impairment of non-financial assets

In assessing impairment, management
estimates the recoverable amount of each
asset or cash-generating units based on
expected future cash flows and uses an
interest rate to discount them. Estimation
uncertainty relates to assumptions about
future operating results and the determination
of a suitable discount rate.

4 Changes in accounting policies and
disclosures

The Ministry of corporate Affairs (""MCA"") notified
amendments on May 07, 2025 and August 13,
2025 under the Companies (Indian Accounting
Standards) Amendment Rules, 2025 and the
Companies (Indian Accounting Standards)
Second Amendment Rules, 2025, respectively,
which is effective from annual reporting periods
beginning on or after April 01, 2025.

(a) Amendment to Ind AS 7 and Ind AS 107 -
Supplier Finance Arrangement:

The amendments to Ind AS 7 ''Statement of Cash
Flows'' and Ind AS 107 ''Financial Instruments:
Disclosures'' clarify the characteristics of supplier
finance arrangements and require additional
disclosures for such arrangements. The
disclosure requirements in the amendments are
intended to assist users of financial statements
in understanding the effects of supplier finance
arrangements on an entity''s liabilities, cash flows
and exposure to liquidity risk.

The Company does not have any supplier finance
arrangements during the reporting period.

(b) Amendment to Ind AS 1 - Classification of
Liabilities as Current or Non-current and Non¬
current liabilities with covenants:

The amendment specifies the requirements for
classifying liabilities as current or non-current in
the balance sheet, and clarifies the following:

a) An entity''s right to defer settlement of a liability
for at least twelve months after the reporting
period must have substance and must
exist at the end of the reporting period. The
classification of a liability as current or non¬
current is unaffected by the likelihood that the
entity will exercise its right to defer settlement.

b) lf an entity''s right to defer settlement of
a liability is subject to covenants, such
covenants affect whether that right exists
at the end of the reporting period only if the
entity is required to comply with the covenant
on or before the end of the reporting period.

c) in case of a liability that can be settled, at the
option of the counterparty, by the transfer
of the entity''s own equity instruments,
such settlement terms do not affect the
classification of the liability as current or non¬
current only if the option is classified as an
equity instrument.

These amendments have no effect on the
measurement of any items in the financial
statements of the Company. The Company
did not make retrospective adjustments as a
result of adopting the amendments to Ind AS 1.

(c) Amendment to Ind AS 12 - Pillar-Two Tax
Reforms

The company is not within the scope of the OECD
Pillar Two Model Rules, as Pillar Two legislation has
not yet been enacted in any of the jurisdiction in
which the company operates.

d) Amendment to Ind AS 21-Lack of
exchangeability

The Amendments introduces requirement
to assess when a currency is exchangeable
into another currency and when it is not. The
amendment requires an entity to estimate the spot
exchange rate when it concludes that a currency
is not exchangeable into another currency. These
amendments had no effect on the consolidated
financial statements of the Group.

e) Following amendments are notified but not
yet effective:

The amendment includes specific provisions that
will take effect for reporting periods beginning on or
after 1 April 2026, retrospectively, as outlined below:

a) Breach of material covenant for long¬
term loan arrangement on or before end
of reporting period with effect that liability
becomes payable on demand as on reporting
date, then it shall be classified as current
liability, if lender agreed after reporting
period and before approval of financial
statements to not demand payment as a
consequence of breach.

b) Classify as non-current liability, if lender
agreed by end of reporting period to provide
grace period ending at least 12 months after
reporting period within which entity can
rectify the breach provided lender does not
demand immediate repayment.

c) Disclose Information about the timing of
settlement to understand the impact of the
liability on the financial statements,

The Company does not expect this amendment
to have an impact on its operations or standalone
financial statements

(ii) Rights and restrictions attached to shares

The company has equity shares having par value of H 5 per share . Each shareholder is entitled to one
vote per share held. The company declares and pays dividends in Indian rupees. The dividend proposed
by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General
Meeting. 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. The distribution will be in
proportion to the number of equity shares held by the shareholders.

(v) Company during the FY 2025-26 has issued shares under ESOP scheme. For details, please refer note 39.
No class of shares have been issued as bonus shares by the company during the period of five years
immediately preceding the current period end i.e. March 31, 2026.

(vi) No class of shares have been bought back by the Company during the period of five years immediately
preceding the current year.

(vii) For details of shares reserved for issue under the Share based payment plan of the company, please refer
note 39.

20 Borrowings (Contd..)

Terms of repayment and security offered:

Debentures:

a) "During the financial year 2025-26, the Company issued unlisted, secured, unrated, redeemable, transferable,
interest bearing non-convertible debentures of face value of H 1,00,000 (Indian Rupees One Lakh only) each,
aggregating to H 4,30,00,00,000 (Indian Rupees Four Hundred and Thirty Crore only), on a private placement
basis to Asian Development Bank (“ADB”) at an interest rate of 7.79% per annum.The debentures have a tenure
of seven years and shall redeem the debentures in thirteen (13) equal instalments commencing from 6 months
from the allotment date. The interest and principal would be payable on a half yearly basis.

Security given:

Charge is created over the identified fixed assets of the Company in terms of the definitive agreements.

Term Loan from Banks:

a) During the year 2020-21, the Company had taken a working capital term loan of H 220.00 million from Indusind
Bank at a floating interest rate of MCLR 1% per annum. This loan has to be repaid in 5 years starting form the
month of April 2022. Last installment towards this loan has been paid in March 2026 and this loan is completely
repaid as on March 31, 2026.

Security given:

1. Exclusive charge on specific movable fixed assets funded out of loan

2. Exclusive charge on all current assets of borrower, both present & future

b) During the year 2024-25, the Company has taken a loan of H 225.00 million from Yes Bank for purchase of
MRI machine at a fixed interest rate of 9.28% per annum. This loan has be repaid in 6 years from the month
of November 2024.

Security given:

Loan is secured by way of the hypothecation of the MRI Machine funded out of loan.

c) During the year 2025-26, the Company has taken a loan of H 457.90 million from HDFC Bank for capital
expenditure at a floating interest rate, where existing rate of interest is 7.75% per annum. This loan has be
repaid in 7 years from the month of June 2025.

Security given:

• First charge on the movable fixed assets of the company, specified in the anexure of sanction letter.

• Second charge on the current asset of the company.

d) During the year 2025-26, the Company has taken a loan of H 150.00 million from Kotak Mahindra Bank for
purchase of pathology machines at a floating interest rate, where existing rate of interest is 7.85% per annum.
This loan has to be repaid in 7 years from the month of November 2025.

Security given:

Loan is secured by way of the hypothecation of machinery funded out of loan.

(ii) Performance obligation

Revenue from services: The performance obligation in respect of services is satisfied at a point of time.

(iii) The Company has applied practical expedient in Ind AS 115 "Revenue from contract with customers” and and
has accordingly not disclosed information about remaining performance obligations as the Company has a
right to consideration from a customer in an amount that corresponds directly with the value to the customer
of the entity’s performance completed to date.

37 Earnings per equity share

Basic earnings per share amounts are calculated by dividing the profit for the year attributable to equity holders
by the weighted average number of equity shares outstanding during the year.

Diluted earnings per share amounts are calculated by dividing the profit attributable to equity holders by the
weighted average number of equity shares outstanding during the year plus the weighted average number of
equity shares that would be issued on conversion of all the dilutive potential equity shares into equity shares.

(b) Defined benefit plans

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees
who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable
on retirement/termination is the employees last drawn basic salary and dearness allowance per month
computed proportionately for 15 days divided by 26 days multiplied for the number of years of service. The
gratuity plan is a funded plan.

39 Employee Stock Option Scheme 2020 (ESOP)

The board vide its resolution dated July 01, 2020 approved ESOP 2020 for granting Employee Stock Options in form
of equity shares linked to the completion of a minimum period of continued employment to the eligible employees
of the Company, monitored and supervised by the Board of Directors. The employees can purchase equity shares
by exercising the options as vested at the price specified in the grant.

40 Leases where Company is a lessee

Leases in relation to plant & machinery comprise of CT & MRI machinies taken on finance lease model from Philips
India Limited - details are as follows.

1. 32 Slice CT Machine for opertaions at KDMC Center taken on lease in October 2020 - to be paid over
84 installments.

2. 3T MRI Machine at DY Patil Kolhapur Center taken on lease in October 2019 - to be paid over 84 installments.

3. 1.5T MRI Machine at Sutar Hospital taken on lease in December 2020 - to be paid over 84 installments.

4. 1.5T MRI Machine at Udupi Center taken on lease in October 2020 - to be paid over 84 installments.

5. 1.5T MRI Machine at Chandigarh Center taken on lease in January 2024 - to be paid over 66 installments.

Terms and conditions of transactions with related parties

The transactions with related parties are made on terms equivalent to those that prevail in arm’s length
transactions. Outstanding balances at the year-end are unsecured and interest free except for loan/
borrowings wherein settlement occurs in cash. There have been no guarantees provided or received for any
related party receivables or payables. For the year ended March 31, 2026 & March 31, 2025, the Company has
not recorded any impairment of receivables relating to amounts owed by related parties. This assessment is
undertaken each financial year through examining the financial position of the related party and the market
in which the related party operates.

D) Loans or Advances in the nature of loans are granted to promoters, directors, KMPs and the related parties (as
defined under Companies Act, 2013), either severally or jointly with any other person, that are:

42 Segment reporting

The Company''s operations predominantly relate to providing Radiology and Pathology services for X Ray, CT Scan,
MRI, Mammography, Tele- Reporting Services, and all type of Blood and Urine Investigation. The Chief Operating
Decision Maker (CODM) reviews the operations of the Company as one operating segment. Hence no separate
segment information has been furnished herewith.

43 Fair Value Measurement of Financial Assets & Financial Liabilities

a) Financial Instruments by Catergory:

The following table shows the carrying amounts and fair values of financial assets and financial liabilities. It
does not include fair value information for financial assets and financial liabilities that are not measured at fair
value if the carrying amount is a reasonable approximation of fair value.

44 Fair value hierarchy

The following is the hierarchy for determining and disclosing the fair value of financial instruments by
valuation technique:

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either
directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

No financial assets/liabilities have been valued using level 1 fair value measurements.

b Valuation technique used to determine fair value

The investment in share of Janta Sahakari Bank is fair valued basis the best estimate and information available
and the fair value approximates its carrying value. The investment in Kotak Liquid Fund Regular Plan Growth is
fair valued basis the value of investment as on year end. The investment in share of Apulki Healthcare Private
Limited is as per the valauation report by the registered valuer. Valuer has used Net Asset Value (nav) method
to derive fair value of investment.

c Fair Value of financial assets and liabilities measured at amortised cost

The fair value of other current financial assets, cash and cash equivalents, trade receivables, trade payables,
short-term borrowings and other financial liabilities approximate the carrying amounts because of the short
term nature of these financial instruments.

The amortized cost using effective interest rate (eir) of non-current financial assets consisting of security and
term deposits and of non current financial liabilities consisting of borrowings and security deposit received are
not significantly different from the carrying amount.

For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to
the fair values.

45 Financial risk management objectives and policies

The Company is exposed to various financial risks. These risks are categorized into market risk, credit risk and liquidity
risk. The Company''s risk management is coordinated by the Board of Directors and focuses on securing long term
and short term cash flows. The Company does not engage in trading of financial assets for speculative purposes.

(a) Market risk

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 risk comprises three types of risk: interest rate risk, currency risk and other
price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include
borrowings. The Company have certain debt obligations with floating interest rates. Further, the Company is
not exposed to currency risk as the Company does not have any significant foreign currency outstandings/
receivables neither is the Company exposed to price or commodity risk.

45 Financial risk management objectives and policies (Contd..)

A reasonably possible change of 100 basis points in interest rates at the reporting date would have increased
/ decreased equity and profit or loss by amounts shown below. This analyses assumes that all other variables,
remain constant. This calculation also assumes that the change occurs at the balance sheet date and
has been calculated based on risk exposures outstanding as at that date. The year end balances are not
necessarily representative of the average debt outstanding during the year.

(b) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument
fails to meet its contractual obligations. The Company is exposed to credit risk from its operating activities
(primarily trade receivables and security deposit to hospitals), from its financing activities, including deposits
with banks and other statutory deposits with regulatory agencies. The maximum exposure to credit risk is
equal to the carrying value of the financial assets. The objective of managing counterparty credit risk is to
prevent losses in financial assets. The Company assesses the credit quality of the counterparties, taking into
account their financial position, past experience and other factors.

The Company limits its exposure to credit risk of cash held with banks by dealing with highly rated banks
and institutions and retaining sufficient balances in bank accounts required to meet a month’s operational
costs. The Company does not foresee any credit risks on deposits with regulatory authorities. Customer credit
risk is managed by the Group''s established policy, prcoedures and control relating to customer credit risk
management. Outstanding customer receivables are regularly monitored. On account of adoption of Ind AS
109, the Company uses expected credit loss model to assess the impairment loss or gain.

45 Financial risk management objectives and policies (Contd..)

(c) Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become
due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient
liquidity to meet its liabilities when due.

46 Capital management

For the purpose of the Company’s capital management, capital includes issued equity capital, instrument entirely
equity in nature, share premium and all other equity reserves attributable to the equity holders. The primary objective
of the Company’s capital management is to maximize the shareholder value and to ensure the Company''s ability
to continue as a going concern.

The board of directors have recommended the final dividend of H 2.00 per equity share of the face value of
H 5 per equity share for the year ended March 31, 2026 (h 2.75 per equity share of the face value of H 5 per equity
share for the year ended March 31, 2025). The payment of dividend is subject to approval of shareholders at the
ensuing Annual General meeting of the company. The Company monitors gearing ratio i.e. total debt in proportion
to its overall financing structure, i.e. equity and debt. Total debt comprises of non-current and current borrowing
including current maturities of long term borrowings. The Company manages the capital structure and makes
adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets.

48 Corporate Social Responsibility (CSR)

As per Section 135 of the Companies Act, 2013, a Company, meeting the applicability threshold, needs to spend
at least 2% of its average net profit for the immediately preceding three financial years on corporate social
responsibility (CSR) activities. The areas for CSR activities are promoting education, promoting gender equality
by empowering women, healthcare, environment sustainability, art and culture, destitute care and rehabilitation,
disaster relief, COVID-19 relief and rural development projects. A CSR committee has been formed by the Company
as per the Act. The details of funds primarily utilized through the year on these activities which are specified in
Schedule VII of the Companies Act, 2013 are as follows:

50 Pursuant to search and seizure proceedings conducted under the provisions of section 132(l) and section
133A of the Income Tax Act, 1961 (""the search operations””), the Company received assessment order dated March
31, 2024 for Assessment Year (""AY"") AY 22-23. Further, Orders for AY 23-24, AY 21- 22, AY 20-21 and AY 17-18 were
received during the year ended March 31, 2025 and assessment orders for AY 2018-19 and AY 2019-20 were received
on March 19, 2026 under the Income Tax Act, 1961 (""the Orders”).

In the aforesaid Orders, the Income Tax authorities have made additions on account of undisclosed income and
disallowance of certain deductions claimed by the Company in the respective income tax returns filed for the
relevant AY. Consequentially, it has resulted in a demand order of H 626.90 million. The Company has filed appeals
against the aforesaid assessment Orders before the Joint Commissioner (Appeals)/Commissioner of Income-
Tax (Appeals). Against the order for AY 2022-23,the Company has deposited the tax under protest amounting to
H 39.27 million. Further, for the remaining AY''s the Company has requested to the Assistant Commissioner of
Income Tax to adjust the income tax refunds for AY 2024-25 to the extent of H 63.50 million against the amounts
to be deposited under protest. These appeal applications have been acknowledged by the Commissioner of
Income-Tax (Appeals).

The Company has provided the requisite disclosure to the stock exchange with respect to the search operations
and receipt of the Orders in accordance with Regulation 30 of the SEBI (LODR) Regulations, 2015 (as amended).

The management of the Company, based on available information and underlying evidence and opinion obtained
from its tax consultants and experts, it of view that the aforesaid demand orders are not tenable and will not have
any material impact on the Company''s financial position as of March 31, 2026, and on its performance for the year
ended on that date.

52 Compliance with number of layers of companies

The company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read
with the Companies (Restriction on number of Layers) Rules, 2017.

53 There are no immovable properties standing in the books of the company, hence the disclosure of title deed
not held in the name of the company is not applicable.

54 The Company does not have any Benami property, where any proceeding has been initiated or pending
against the company for holding any Benami property.

55 The Company has not being declared as wilful defaluter by any bank or financials instiution or any government
authority.

56 The Company does not have any transactions with companies struck off under section 248 of the Companies
Act, 2013 or section 560 of Companies Act, 1956.

57 Utilisation of Borrowed funds and share premium:

(i) 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 Beneficiary

(ii) 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

58 The Company does not have any undisclosed income which is not recorded in the books of account that
has been surrendered or disclosed as income during the year, (previous 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.

59 The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

60 Registration of charges or satisfaction with Registrar of Companies

As per the records available on the Registrar of Companies (RoC) portal, the below charges which were created
by the Company in earlier years are still appearing as unsatisfied. However, the Company has already obtained
no-dues certificate/other relevant documents from the respective bank but due to technical errors, this charge
could not be satisfied on RoC portal:

Charge holder name : Punjab National Bank

Amount : 0.10 million

Charge holder name : Indusind Bank

Amount : 420.00 million

61 Dividend

The Board of Directors have recommended the final dividend of Rs 2.00 per share of the face value of Rs 5 per share
for the year ended March 31, 2026. The payment of dividend is subject to approval of shareholders at the ensuing
Annual General meeting of the company and hence was not recorded as liability. Final dividend approved by
sharesholders for the year ended March 31, 2025 is Rs 2.75 per share of face value Rs 5 per share which has been
paid in the current financial year.

63 The Code on Social Security, 2020

During the year ended 31 March 2026, the Central Government of India has notified the Code on Wages, 2019, the
Industrial Relations Code, 2020, the Code on Social Security, 2020 and the Occupational Safety, Health and Working
Conditions Code, 2020, collectively referred to as the ''New Labour Codes'', effective from 21 November 2025 primarily
impacting the wage definition to be considered for the purpose of defined benefit obligation relating to gratuity.

The new Labour Codes introduced by the Government of India, inter alia, requires gratuity to be calculated based
on wages constituting at least 50% of total remuneration. This has resulted in an increase in gratuity benefits in
respect of services rendered in prior periods, and accordingly, the company has recognised past service cost
amounting to H 5.29 Millions during the year. In accordance with Ind AS 19, the past service cost has been recognised
in the statement of profit and loss in the current year in which the plan amendment became effective.

64 Compliance with audit trail requirements

The Company maintains its books of account using accounting software systems which include features for
recording an audit trail (edit log) of transactions, as required under Rule 3 of the Companies (Accounts) Rules,
2014 (as amended).

a) Books of account and financial records:

For financial reporting purposes, the Company uses accounting software that includes an audit trail feature.
This feature was enabled and operational throughout the year for all relevant financial transactions. The
audit trail data for the prior year has also been preserved by the Company in compliance with applicable
statutory requirements.

b) Revenue, Purchases and Inventory Records:

The Company uses separate accounting software for maintaining records related to revenue, purchases, and
inventory. This software includes an audit trail feature; however, no audit trail was enabled at the database
level to log direct data changes. The audit trail feature, where enabled, was operational throughout the
year for relevant transactions. The Company has also preserved audit trail data of prior years to the extent
it was recorded.

64 Compliance with audit trail requirements (Contd..)

c) Payroll Records:

The Company has used an accounting software for maintaining its books of account which has a feature of
recording audit trail (edit log) facility and the same has been operated throughout the year for all relevant
transactions recorded in the software. Further, we did not come across any instance of audit trail feature being
tampered with at application level. Additionally, the audit trail has been preserved by the Company as per the
statutory requirements for record retention for application level.

However, with respect to the database level of the said software which has been managed and maintained
by a third-party service provider. In the absence of sufficient and appropriate audit evidence [including
absence of adequate coverage in SOC report] we are unable to assess whether the database of the software
to log any direct changes has a feature of recording audit trail (edit log) facility and whether the same has
been enabled and operated throughout the year for all relevant transaction recorded or whether there is
any instance of audit trail feature being tampered with. Also, we are unable to assess whether the audit
trail feature of prior years has been preserved by the Company as per the statutory requirements for record
retention at database level.

65 Previous year figures have been regrouped/ reclassified to confirm presentation as per Ind AS and as required
by Schedule III of the Act.

2.11 Provisions and contingent liabilities

Provisions are recognized when there is a present obligation
as a result of a past event, it is probable that an outflow of
resources embodying economic benefits will be required to
settle the obligation and there is a reliable estimate of the
amount of the obligation. Provisions are measured at the best
estimate of the expenditure required to settle the present
obligation at the Balance sheet date.

If the effect of the time value of money is material, provisions
are discounted using a current pre-tax rate that reflects, when
appropriate, the risks specific to the liability. When discounting
is used, the increase in the provision due to the passage of time
is recognized as a finance cost.

Contingent liabilities are disclosed 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 will be required to settle or a reliable estimate of the
amount cannot be made.

2.12 Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash
at banks, cash on hand and short-term deposits net of bank
overdraft with an original maturity of three months or less,
which are subject to an insignificant risk of changes in value.

For the purposes of the cash flow statement, cash and cash
equivalents include cash on hand, cash in banks less bank and
book overdraft.

2.13 Dividends

Dividends are recognised when they become legally payable.
In the case of interim dividends to equity shareholders, this
happens when dividends are declared by the directors. In the
case of final dividends, this happens when dividends approved
by the shareholders at the annual general meeting.

2.14 Financial instruments

A financial instrument is any contract that gives rise to a
financial asset of one entity and a financial liability or equity
instrument of another entity.

(a) Financial assets

(i) Initial recognition and measurement

At initial recognition, financial asset is measured at
its fair value plus, in the case of a financial asset not
at fair value through profit or loss, transaction costs
that are directly attributable to the acquisition of
the financial asset. Transaction costs of financial
assets carried at fair value through profit or loss
are expensed in profit or loss. However, trade
receivables generally do not contain a significant
financing component and are measured at
transaction price.

(ii) Subsequent measurement

For purposes of subsequent measurement, financial
assets are classified in following categories:

a) at amortized cost; or

b) at fair value through other comprehensive
income; or

c) at fair value through profit or loss.

The classification depends on the entity''s business
model for managing the financial assets and the
contractual terms of the cash flows.

Amortized cost: Assets that are held for collection
of contractual cash flows where those cash
flows represent solely payments of principal and
interest are measured at amortized cost. Interest
income from these financial assets is included
in finance income using the effective interest
rate method (EIR).

Fair value through other comprehensive income
(FVOCI): Assets that are held for collection of
contractual cash flows and for selling the financial
assets, where the assets'' cash flows represent solely
payments of principal and interest, are measured
at fair value through other comprehensive income
(FVOCI). Movements in the carrying amount are

taken through OCI, except for the recognition
of impairment gains or losses, interest revenue
and foreign exchange gains and losses which are
recognized in Statement of Profit and Loss. When the
financial asset is derecognized, the cumulative gain
or loss previously recognized in OCI is reclassified
from equity to Statement of Profit and Loss and
recognized in other gains/ (losses). Interest income
from these financial assets is included in other
income using the effective interest rate method.

Fair value through profit or loss (FVTPL): Assets
that do not meet the criteria for amortized cost or
FVOCI are measured at fair value through profit or
loss. Interest income from these financial assets is
included in other income.

Equity instruments: All equity investments in
scope of Ind AS 109 are measured at fair value.
Equity instruments which are held for trading
and contingent consideration recognised by an
acquirer in a business combination to which Ind
AS103 applies are classified as at FVTPL. For all
other equity instruments, the Company may
make an irrevocable election to present in other
comprehensive income subsequent changes in the
fair value. The Company makes such election on an
instrument- by-instrument basis. The classification
is made on initial recognition and is irrevocable.

If the Company decides to classify an equity
instrument as at FVTOCI, then all fair value
changes on the instrument, excluding dividends,
are recognized in the OCI. There is no recycling
of the amounts from OCI to P&L, even on sale of
investment. However, the Company may transfer
the cumulative gain or loss within equity.

Equity instruments included within the FVTPL
category are measured at fair value with all changes
recognized in the profit and loss.

(iii) Impairment of financial assets

In accordance with Ind AS 109, Financial
Instruments, the Company applies expected credit
loss (ECL) model for measurement and recognition
of impairment loss on financial assets that are
measured at amortized cost.

For recognition of impairment loss on financial
assets and risk exposure, the Company determines
that whether there has been a significant increase
in the credit risk since initial recognition. If credit risk
has not increased significantly, 12-month ECL is used
to provide for impairment loss. However, if credit
risk has increased significantly, lifetime ECL is used. If

in subsequent years, credit quality of the instrument
improves such that there is no longer a significant
increase in credit risk since initial recognition, then
the entity reverts to recognizing impairment loss
allowance based on 12 month ECL.

Life time ECLs are the expected credit losses
resulting from all possible default events over the
expected life of a financial instrument. The 12
month ECL is a portion of the lifetime ECL which
results from default events that are possible within
12 months after the year end.

ECL is the difference between all contractual cash
flows that are due to the Company in accordance
with the contract and all the cash flows that
the entity expects to receive (i.e. all shortfalls),
discounted at the original EIR. When estimating
the cash flows, an entity is required to consider
all contractual terms of the financial instrument
(including prepayment, extension etc.) over the
expected life of the financial instrument. However,
in rare cases when the expected life of the financial
instrument cannot be estimated reliably, then the
entity is required to use the remaining contractual
term of the financial instrument.

ECL impairment loss allowance (or reversal)
recognized during the year is recognized as income/
expense in the statement of profit and loss. In
balance sheet ECL for financial assets measured at
amortized cost is presented as an allowance, i.e. as
an integral part of the measurement of those assets
in the balance sheet. The allowance reduces the
net carrying amount. Until the asset meets write off
criteria, the Company does not reduce impairment
allowance from the gross carrying amount.

(iv) Derecognition of financial assets

A financial asset is derecognized only when

a) the rights to receive cash flows from the
financial asset is transferred or

b) retains the contractual rights to receive the
cash flows of the financial asset, but assumes
a contractual obligation to pay the cash flows
to one or more recipients.

Where the financial asset is transferred then in
that case financial asset is derecognized only if
substantially all risks and rewards of ownership
of the financial asset is transferred. Where the
entity has not transferred substantially all risks and
rewards of ownership of the financial asset, the
financial asset is not derecognized.

(b) Financial liabilities

(i) Initial recognition and measurement

Financial liabilities are classified, at initial
recognition, as financial liabilities at fair value
through profit or loss and at amortized cost,
as appropriate.

All financial liabilities are recognized initially at fair
value and, in the case of borrowings and payables,
net of directly attributable transaction costs.

(ii) Subsequent measurement

The measurement of financial liabilities depends
on their classification, as described below:

Financial liabilities at fair value through profit
or loss

Financial liabilities at fair value through profit or
loss include financial liabilities held for trading
and financial liabilities designated upon initial
recognition as at fair value through profit or loss.
Separated embedded derivatives are also classified
as held for trading unless they are designated as
effective hedging instruments. Gains or losses on
liabilities held for trading are recognized in the
Statement of Profit and Loss.

Loans and borrowings

After initial recognition, interest-bearing loans
and borrowings are subsequently measured at
amortized cost using the EIR method. Gains and
losses are recognized in Statement of Profit and
Loss when the liabilities are derecognized as
well as through the EIR amortization process.
Amortized cost is calculated by taking into account
any discount or premium on acquisition and fees
or costs that are an integral part of the EIR. The
EIR amortization is included as finance costs in the
Statement of Profit and Loss.

(iii) Derecognition

A financial liability is derecognized when the obligation
under the liability is discharged or cancelled or
expires. When an existing financial liability is replaced
by another from the same lender on substantially
different terms, or the terms of an existing liability
are substantially modified, such an exchange or
modification is treated as the derecognition of the
original liability and the recognition of a new liability.
The difference in the respective carrying amounts
is recognized in the Statement of Profit and Loss
as finance costs.

2.15 Employee benefits

(a) Short-term obligations

Liabilities for wages and salaries, including non-monetary
benefits that are expected to be settled wholly within
12 months after the end of the year in which the
employees render the related service are recognized
in respect of employees'' services up to the end of the
year and are measured at the amounts expected to be
paid when the liabilities are settled. The liabilities are
presented as current employee benefit obligations in
the balance sheet.

(b) Other long-term employee benefit obligations

(i) Defined contribution plan

Provident Fund: Contribution towards provident
fund is made to the regulatory authorities, where
the Company has no further obligations. Such
benefits are classified as Defined Contribution
Schemes as the Company does not carry any
further obligations, apart from the contributions
made on a monthly basis which are charged to the
Statement of Profit and Loss.

Employee''s State Insurance Scheme: Contribution
towards employees'' state insurance scheme is
made to the regulatory authorities, where the
Company has no further obligations. Such benefits
are classified as Defined Contribution Schemes
as the Company does not carry any further
obligations, apart from the contributions made on
a monthly basis which are charged to the Statement
of Profit and Loss.

(ii) Defined benefit plans

Gratuity: The Company provides for gratuity,
a defined benefit plan (the ''Gratuity Plan")
covering eligible employees in accordance with
the Payment of Gratuity Act, 1972. The Gratuity
Plan provides a lump sum payment to vested
employees at retirement, death, incapacitation
or termination of employment, of an amount
based on the respective employee''s salary. The
Company''s liability is actuarially determined (using
the Projected Unit Credit method) at the end of
each year. Actuarial losses/gains are recognized
in the other comprehensive income in the year in
which they arise.

Compensated Absences: Accumulated

compensated absences, which are expected to be
availed or encashed within 12 months from the
end of the year are treated as short term employee
benefits. The obligation towards the same is
measured at the expected cost of accumulating
compensated absences as the additional amount

expected to be paid as a result of the unused
entitlement as at the year end.

Accumulated compensated absences, which are
expected to be availed or encashed beyond 12
months from the end of the year end are treated
as other long term employee benefits. The
Company''s liability is actuarially determined (using
the Projected Unit Credit method) at the end of
each year. Actuarial losses/gains are recognized
in the statement of profit and loss in the year in
which they arise.

Leaves under define benefit plans can be encashed
only on discontinuation of service by employee.

(c) Share-based payments

Employees (including senior executives) of the Company
receive remuneration in the form of share-based
payments, whereby employees render services as
consideration for equity instruments (equity-settled
transactions). The cost of equity-settled transactions is
determined by the fair value at the date when the grant
is made using an appropriate valuation model.

That cost is recognised, together with a corresponding
increase in share-based payment (SBP) reserves in equity,
over the period in which the performance and/or service
conditions are fulfilled in employee benefits expense.
The cumulative expense recognised for equity-settled
transactions at each reporting date until the vesting
date reflects the extent to which the vesting period
has expired and the Companies best estimate of the
number of equity instruments that will ultimately vest.
The statement of profit and loss expense or credit for a
period represents the movement in cumulative expense
recognised as at the beginning and end of that period
and is recognised in employee benefits expense.

The dilutive effect of outstanding options is reflected as
additional share dilution in the computation of diluted
earnings per share.

2.16 Contributed equity

Equity shares are classified as equity share capital.

Incremental costs directly attributable to the issue of new
shares or options are shown in equity as a deduction, net of
tax, from the proceeds.

2.17 Earnings per equity share

Basic earnings per share is calculated by dividing the net profit
or loss for the year attributable to equity shareholders by the
weighted average number of equity shares outstanding during
the year. Earnings considered in ascertaining the Company''s
earnings per share is the net profit or loss for the year after

deducting preference dividends and any attributable tax
thereto for the year. The weighted average number of equity
shares outstanding during the year and for all the years
presented is adjusted for events, such as bonus shares, other
than the conversion of potential equity shares, that have
changed the number of equity shares outstanding, without a
corresponding change in resources.

For the purpose of calculating diluted earnings per share,
the net profit or loss for the year attributable to equity
shareholders and the weighted average number of shares
outstanding during the year is adjusted for the effects of all
dilutive potential equity shares.

2.18 Investment in associates (using equity method)

Investments in associates are accounted for using the equity
method in accordance with Ind AS 28 -Investments in
Associates and Joint Ventures. An associate is an entity over
which the Company has significant influence but not control
or joint control.

Under the equity method, the investment is initially recognised
at cost, and the carrying amount is adjusted thereafter to
recognise the Company''s share of the post-acquisition profits
or losses of the investee in the statement of profit and loss,
and the Company''s share of other comprehensive income of
the investee in other comprehensive income.

When the Company''s share of losses in an associate equals or
exceeds its interest in the associate, the Company discontinues
recognising its share of further losses. After the Company''s
interest is reduced to zero, additional losses are provided
for, and a liability is recognised, only to the extent that the
Company has incurred legal or constructive obligations or
made payments on behalf of the associate.

The carrying amount of the investment is tested for
impairment whenever there is an indication of impairment
and an impairment loss is recognised in profit or loss when the
carrying amount exceeds its recoverable amount.

3 Significant accounting judgments, estimates and
assumptions

The preparation of financial statements requires management
to make judgments, estimates and assumptions that affect the
reported amounts of revenues, expenses, assets and liabilities, and
the accompanying disclosures, and the disclosure of contingent
liabilities. Uncertainty about these assumptions and estimates could
result in outcomes that require a material adjustment to the carrying
amount of assets or liabilities affected in future years.

3.1 Judgements

(a) Determination of Lease term as lessee :

The Company determines the lease term as the
noncancellable period of a lease, together with both

periods covered by an option to extend the lease if the
Company is reasonably certain to exercise that option;
and periods covered by an option to terminate the lease
if the Company is reasonably certain not to exercise that
option. In assessing whether the Company is reasonably
certain to exercise an option to extend a lease, or not to
exercise an option to terminate a lease, it considers all
relevant facts and circumstances that create an economic
incentive for the Company to exercise the option to
extend the lease, or not to exercise the option to
terminate the lease. The Company revises the lease term
if there is a change in the non cancellable period of lease.

(b) Determination of useful life of lease hold improvement

In the case of lease hold building improvements, the
depreciation is charged based on useful life of the
improvements which is 12 years years or lease period
including expected renewal period which ever is lower.
Judgement is exercised by the Company in determination
of the expected renewal period after considering all
relevant facts and circumstances that create an economic
incentive on the Company to renew.

3.2 Estimates and assumptions

The key assumptions concerning the future and other key
sources of estimation uncertainty at the year end date, that have
a significant risk of causing a material adjustment to the carrying
amounts of assets and liabilities within the next financial year,
are described below. The Company based its assumptions and
estimates on parameters available when the financial statements
were prepared. Existing circumstances and assumptions about
future developments, however, may change due to market
changes or circumstances arising that are beyond the control
of the Company. Such changes are reflected in the assumptions
when they occur.

(a) Determination of useful lives of Property, plant and
Equipments and Intangible asset

Property, plant and equipment represent a significant
proportion of the asset base of the Company. The charge
in respect of periodic depreciation is derived after
determining an estimate of an asset''s expected useful life
and the expected residual value at the end of its life. The
useful lives and residual values of Company''s assets are
determined by the Management at the time the asset
is acquired and reviewed periodically, including at each
financial year end. For details refer note 2.2 and note 5.

(b) Share-based payments - equity settled transactions

Estimating fair value for share-based payment
transactions requires determination of the most
appropriate valuation model, which is dependent on
the terms and conditions of the grant. This estimate also

requires determination of the most appropriate inputs
to the valuation model including the expected life of the
share option, volatility and dividend yield and making
assumptions about them. The assumptions and models
used for estimating fair value for share-based payment
transactions are disclosed in Note 39.

(c) Allowance for expected credit loss

Refer note 2.14(a)(iii) for the estimate used in arriving
expected credit loss allowance.

(d) Defined benefit plans (gratuity benefits and leave
encashment)

The cost of the defined benefit plans such as gratuity
and leave encashment are determined using actuarial
valuations. 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 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 year end.

The principal assumptions are the discount and salary
growth rate. The discount rate is based upon the market
yields available on government bonds at the accounting
date with a term that matches that of liabilities. Salary
increase rate takes into account of inflation, seniority,
promotion and other relevant factors on long term basis.
For details refer Note 38.

(e) Impairment of non-financial assets

In assessing impairment, management estimates the
recoverable amount of each asset or cash-generating
units based on expected future cash flows and uses an
interest rate to discount them. Estimation uncertainty
relates to assumptions about future operating results
and the determination of a suitable discount rate.

4 Standards that became effective during the year &
ammendments in existing standards.

Ministry of Corporate Affairs ("MCA”) notifies new standards or
amendments to the existing standards under Companies (Indian
Accounting Standards) Rules as issued from time to time. For the
year ended March 31, 2025, MCA has notified Ind AS - 117 Insurance
Contracts and amendments to Ind AS 116 - Leases, relating
to sale and leaseback transactions, applicable to the Company
w.e.f. April 1, 2024.

The Company has reviewed the new pronouncements and based on
its evaluation has determined that it does not have any significant
impact in its Standalone Financial Statements.

b Valuation technique used to determine fair value

The investment in share of Janta Sahakari Bank is fair valued basis the best estimate and information available and the fair value
approximates its carrying value. The investment in Kotak Liquid Fund Regular Plan Growth is fair valued basis the value of investment
as on year end.

c Fair Value of financial assets and liabilities measured at amortised cost

The fair value of other current financial assets, cash and cash equivalents, trade receivables, trade payables, short-term borrowings and
other financial liabilities approximate the carrying amounts because of the short term nature of these financial instruments.

The amortized cost using effective interest rate (EIR) of non-current financial assets consisting of security and term deposits and of non current
financial liabilities consisting of borrowings and security deposit received are not significantly different from the carrying amount.

For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

45 Financial risk management objectives and policies

The Company is exposed to various financial risks. These risks are categorized into market risk, credit risk and liquidity risk. The Company''s risk
management is coordinated by the Board of Directors and focuses on securing long term and short term cash flows. The Company does not
engage in trading of financial assets for speculative purposes.

(A) Market risk

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 risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk and commodity
risk. Financial instruments affected by market risk include borrowings. The Company have certain debt obligations with floating interest
rates. Further, the Company is not exposed to currency risk as the Company does not have any significant foreign currency outstandings/
receivables neither is the Company exposed to price or commodity risk.

A reasonably possible change of 100 basis points in interest rates at the reporting date would have increased / decreased equity and
profit or loss by amounts shown below. This analyses assumes that all other variables, remain constant. This calculation also assumes that
the change occurs at the balance sheet date and has been calculated based on risk exposures outstanding as at that date. The year end
balances are not necessarily representative of the average debt outstanding during the year.

45 Financial risk management objectives and policies (Contd..)

(B) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual
obligations. The Company is exposed to credit risk from its operating activities (primarily trade receivables and security deposit to
hospitals), from its financing activities, including deposits with banks and other statutory deposits with regulatory agencies. The
maximum exposure to credit risk is equal to the carrying value of the financial assets. The objective of managing counterparty credit risk
is to prevent losses in financial assets. The Company assesses the credit quality of the counterparties, taking into account their financial
position, past experience and other factors.

The Company limits its exposure to credit risk of cash held with banks by dealing with highly rated banks and institutions and retaining
sufficient balances in bank accounts required to meet a month''s operational costs. The Company does not foresee any credit risks on
deposits with regulatory authorities. Customer credit risk is managed by the Group''s established policy, prcoedures and control relating
to customer credit risk management. Outstanding customer receivables are regularly monitored. On account of adoption of Ind AS 109,
the Company uses expected credit loss model to assess the impairment loss or gain.

51 Pursuant to search and seizure proceedings initiated under the provisions of section 132(1) and section 133A of the Income Tax Act, 1961
("the search operations”), the Company had received assessment order dated March 31, 2024 for Assessment Year ("AY”) for AY 22-23,
and Orders for AY 23-24, AY 21-22, AY 20-21 and AY 17-18 were received during the last week of March 31, 2025 under the Income Tax
Act, 1961 (""the Orders"").

In the aforesaid Orders, the Income Tax authorities have made additions on account of undisclosed income and disallowance of certain
deductions claimed by the Company against the income tax returns filed for the relevant AY. Consequentially, it has resulted in a demand
order of H.513.86 million. Subsequently, the Company has filed an appeal against the aforesaid assessment Orders with the Joint
Commissioner (Appeals)/Commissioner of Income-Tax (Appeals). The Company has paid amount under protest of H. 39.27 million against
the Order of AY 22-23 and while making an appeal application against the Orders for the remaining AY''s has requested to the Assistant
Commissioner of Income Tax to adjust the tax refunds for AY 2024-25 to the extent of H.63.50 million against the amounts to be paid
under protest. These appeal applications have been acknowledged by the Commissioner of Income-Tax (Appeals).

The Company has provided the requisite disclosure to the stock exchange with respect to the search operations and receipt of the Orders
in accordance with Regulation 30 of the SEBI (LODR) Regulations, 2015 (as amended).

The management of the Company, based on available information and underlying evidence and opinion obtained from its tax consultants
and experts, it of view that the aforesaid demand orders are not tenable and will not have any material impact on the Company''s financial
position as of March 31, 2025, and on its performance for the year ended on that date.

Post quarter/year-end, the company has filed the revised statement/returns for all the quarters with figures matching with books of accounts
which is considered for above reporting.

53 Compliance with number of layers of companies

The company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction
on number of Layers) Rules, 2017.

54 There are no immovable properties standing in the books of the company, hence the disclosure of title deed not held in the name of the
company is not applicable.

55 The Company does not have any Benami property, where any proceeding has been initiated or pending against the company for holding
any Benami property.

56 The Company has not being declared as wilful defaluter by any bank or financials instiution or any government authority.

57 The Company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of
Companies Act, 1956.

58 Utilisation of borrowed funds and share premium:

(i) 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 Beneficiary

(ii) 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

59 The Company does not have any undisclosed income which is not recorded in the books of account that has been surrendered or
disclosed as income during the year, (previous 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.

60 The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

61 Registration of charges or satisfaction with Registrar of Companies

As per the records available on the Registrar of Companies (RoC) portal, the below charges which were created by the Company in earlier
years are still appearing as unsatisfied. However, the Company has already obtained no-dues certificate/other relevant documents from the
respective bank but due to technical errors, this charge could not be satisfied on RoC portal:

Charge holder name : Punjab National Bank

Amount : 0.10 million

62 Dividend

The Board of Directors have recommended the final dividend of H 2.75 per share of the face value of H 5 per share for the year ended March 31, 2025.
The payment of dividend is subject to approval of shareholders at the ensuing Annual General meeting of the company and hence was not
recorded as liability. Final dividend approved by sharesholders for the year ended March 31, 2024 is H 2.50 per share of face value H 5 per share
which has been paid in the current financial year.

64 The Code on Social Security, 2020

The Code on Social Security, 2020 (''Code'') relating to employee benefits during employment and post employment benefits received Presidential
assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has
not been notified and the final rules/interpretation have not yet been issued. Company will assess the impact of the Code when it comes into
effect and will record any related impact in the period the Code becomes effective.

65 Compliance with audit trail requirements

The Company maintains its books of account using accounting software systems which include features for recording an audit trail (edit log) of
transactions, as required under Rule 3 of the Companies (Accounts) Rules, 2014 (as amended).

a) Books of account and financial records:

For financial reporting purposes, the Company uses accounting software that includes an audit trail feature. This feature was enabled and
operational throughout the year for all relevant financial transactions. The audit trail data for the prior year has also been preserved by
the Company in compliance with applicable statutory requirements.

b) Revenue, Purchases and Inventory Records:

The Company uses separate accounting software for maintaining records related to revenue, purchases, and inventory. This software
includes an audit trail feature; however, no audit trail was enabled at the database level to log direct data changes. The audit trail feature,
where enabled, was operational throughout the year for relevant transactions. The Company has also preserved audit trail data of prior
years to the extent it was recorded.

65 Compliance with audit trail requirements (Contd..)

c) Payroll records:

Payroll-related records are maintained using accounting software managed and hosted by a third-party software service provider.
The Company relies on the service provider''s system and controls. However, due to limitations in the scope of the SOC (System and
Organization Controls) report received from the provider, the Company is unable to confirm whether the said software includes an
audit trail feature, whether it was active throughout the year, or whether such audit trails have been preserved for the prior year as per
statutory requirements.

66 Previous year figures have been regrouped/ reclassified to confirm presentation as per Ind AS and as required by Schedule III of the Act.

The accompanying notes 1 to 66 are an integral part of the standalone financial statements.

As per our report of even date For and on behalf of the Board of Directors

For M S K A & Associates Krsnaa Diagnostics Limited

Chartered Accountants CIN:L74900PN2010PLC138068

Firm Registration No.:105047W

Vikram Dhanania Rajendra Mutha Yash Mutha Pallavi Bhatevara

Partner Chairman Managing Director Executive Director

Membership No: 060568 DIN: 01066737 DIN: 07285523 DIN: 03600332

Place: Kolkata Place: Pune Place: Pune Place: Pune

Date: May 12, 2025 Date: May 12, 2025 Date: May 12, 2025 Date: May 12, 2025

Mitesh Dave Pawan Daga Sujoy Bose

Chief Executive Officer Chief Financial Officer Company Secretary

Place: Pune Place: Pune Place: Pune

Date: May 12, 2025 Date: May 12, 2025 Date: May 12, 2025

2.11 Provisions and contingent liabilities

"Provisions are recognized when there is a present obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and there is a reliable estimate of the amount of the obligation. Provisions are measured at the best estimate of the expenditure required to settle the present obligation at the Balance sheet date.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

Contingent liabilities are disclosed 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 will be required to settle or a reliable estimate of the amount cannot be made.

2.12 Cash and cash equivalents

"Cash and cash equivalent in the balance sheet comprise cash at banks, cash on hand and short-term deposits net of bank overdraft with an original maturity of three months or less, which are subject to an insignificant risk of changes in value.

For the purposes of the cash flow statement, cash and cash equivalents include cash on hand, cash in banks less bank and book overdraft."

2.13 Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

(a) Financial assets

(i) Initial recognition and measurement

At initial recognition, financial asset is measured at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss. However, trade receivables generally do not contain a significant financing component and are measured at transaction price.

For purposes of subsequent measurement, financial assets are classified in following categories:

a) at amortized cost; or

b) at fair value through other comprehensive income; or

c) at fair value through profit or loss.

The classification depends on the entity''s business model for managing the financial assets and the contractual terms of the cash flows.

Amortized cost: Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortized cost. Interest income from these financial assets is included in finance income using the effective interest rate method (EIR).

Fair value through other comprehensive income (FVOCI): Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets'' cash flows represent solely payments of principal and interest, are measured at fair value through other comprehensive income (FVOCI). Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest revenue and foreign exchange gains and losses which are recognized in Statement of Profit and Loss. When the financial asset is derecognized, the cumulative gain or loss previously recognized in OCI is reclassified from equity to Statement of Profit and Loss and recognized in other gains/ (losses). Interest income from these financial assets is included in other income using the effective interest rate method.

Fair value through profit or loss (FVTPL): Assets that do not meet the criteria for amortized cost or FVOCI are measured at fair value through profit or loss. Interest income from these financial assets is included in other income.

Equity instruments: All equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments which are held for trading and contingent consideration recognised by an acquirer in a business combination to which Ind AS103 applies are classified as at FVTPL. For all other equity instruments, the Company may make an irrevocable election to present in other comprehensive income subsequent changes in the fair value. The Company makes such election on an instrument- by-instrument basis. The classification is made on initial recognition and is irrevocable.

If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding dividends, are recognized in the OCI. There is no recycling of the amounts from OCI to P&L, even on sale of investment. However, the Company may transfer the cumulative gain or loss within equity.

Equity instruments included within the FVTPL category are measured at fair value with all changes recognized in the profit and loss.

(iii) Impairment of financial assets

In accordance with Ind AS 109, Financial Instruments, the Company applies expected credit loss (ECL) model for measurement and recognition of impairment loss on financial assets that are measured at amortized cost and FVOCI.

For recognition of impairment loss on financial assets and risk exposure, the Company determines that whether there has been a significant increase in the credit risk since initial recognition. If credit risk has not increased significantly, 12-month ECL is used to provide for impairment loss. However, if credit risk has increased significantly, lifetime ECL is used. If in subsequent years, credit quality of the instrument improves such that there is no longer a significant increase in credit risk since initial recognition, then the entity reverts to recognizing impairment loss allowance based on 12 month ECL.

Life time ECLs are the expected credit losses resulting from all possible default events over the expected life of a financial instrument. The 12 month ECL is a portion of the lifetime ECL which results from default events that are possible within 12 months after the year end.

ECL is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the entity expects to receive (i.e. all shortfalls), discounted at the original EIR. When estimating the cash flows, an entity is required to consider all contractual terms of the financial instrument (including prepayment, extension etc.) over the expected life of the financial instrument. However, in rare cases when the expected life of the financial instrument cannot be estimated reliably, then the entity is required to use the remaining contractual term of the financial instrument.

ECL impairment loss allowance (or reversal) recognized during the year is recognized as income/ expense in the statement of profit and loss. In balance sheet ECL for financial assets measured at amortized cost is presented as an allowance, i.e. as an integral part of the measurement of those assets in the

balance sheet. The allowance reduces the net carrying amount. Until the asset meets write off criteria, the Company does not reduce impairment allowance from the gross carrying amount.

(iv) Derecognition of financial assets

A financial asset is derecognized only when

a) the rights to receive cash flows from the financial asset is transferred or

b) retains the contractual rights to receive the cash flows of the financial asset, but assumes a contractual obligation to pay the cash flows to one or more recipients.

Where the financial asset is transferred then in that case financial asset is derecognized only if substantially all risks and rewards of ownership of the financial asset is transferred. Where the entity has not transferred substantially all risks and rewards of ownership of the financial asset, the financial asset is not derecognized."

(b) Financial liabilities

(i) Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss and at amortized cost, as appropriate.

All financial liabilities are recognized initially at fair value and, in the case of borrowings and payables, net of directly attributable transaction costs.

(ii) Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below:

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss. Separated embedded derivatives are also classified as held for trading unless they are designated as effective hedging instruments. Gains or losses on liabilities held for trading are recognized in the Statement of Profit and Loss.

Loans and borrowings

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized cost using the EIR method. Gains and losses are recognized in Statement of Profit and

Loss when the liabilities are derecognized as well as through the EIR amortization process. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included as finance costs in the Statement of Profit and Loss.

(iii) Derecognition

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the Statement of Profit and Loss as finance costs.

2.14 Employee Benefits

(a) Short-term obligations

Liabilities for wages and salaries, including nonmonetary benefits that are expected to be settled wholly within 12 months after the end of the year in which the employees render the related service are recognized in respect of employees'' services up to the end of the year and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the balance sheet.

(b) Other long-term employee benefit obligations

(i) Defined contribution plan

Provident Fund: Contribution towards provident fund is made to the regulatory authorities, where the Company has no further obligations. Such benefits are classified as Defined Contribution Schemes as the Company does not carry any further obligations, apart from the contributions made on a monthly basis which are charged to the Statement of Profit and Loss.

Employee''s State Insurance Scheme: Contribution towards employees'' state insurance scheme is made to the regulatory authorities, where the Company has no further obligations. Such benefits are classified as Defined Contribution Schemes as the Company does not carry any further obligations, apart from the contributions made on a monthly basis which are charged to the Statement of Profit and Loss.

Gratuity: The Company provides for gratuity, a defined benefit plan (the ''Gratuity Plan") covering eligible employees in accordance with the Payment of Gratuity Act, 1972. The Gratuity Plan provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee''s salary. The Company''s liability is actuarially determined (using the Projected Unit Credit method) at the end of each year. Actuarial losses/gains are recognized in the other comprehensive income in the year in which they arise.

Compensated Absences: Accumulated

compensated absences, which are expected to be availed or encashed within 12 months from the end of the year are treated as short term employee benefits. The obligation towards the same is measured at the expected cost of accumulating compensated absences as the additional amount expected to be paid as a result of the unused entitlement as at the year end.

Accumulated compensated absences, which are expected to be availed or encashed beyond 12 months from the end of the year end are treated as other long term employee benefits. The Company''s liability is actuarially determined (using the Projected Unit Credit method) at the end of each year. Actuarial losses/gains are recognized in the statement of profit and loss in the year in which they arise.

Leaves under define benefit plans can be encashed only on discontinuation of service by employee.

(c) Share-based payments

Employees (including senior executives) of the Company receive remuneration in the form of share-based payments, whereby employees render services as consideration for equity instruments (equity-settled transactions). The cost of equity-settled transactions is determined by the fair value at the date when the grant is made using an appropriate valuation model.

That cost is recognised, together with a corresponding increase in share-based payment (SBP) reserves in equity, over the period in which the performance and/or service conditions are fulfilled in employee benefits expense. The cumulative expense recognised for equity-settled transactions at each reporting date until the vesting date reflects the extent to which the vesting period has expired and the Companies best estimate of the number of equity instruments that will ultimately vest. The statement of profit and

loss expense or credit for a period represents the movement in cumulative expense recognised as at the beginning and end of that period and is recognised in employee benefits expense.

The dilutive effect of outstanding options is reflected as additional share dilution in the computation of diluted earnings per share.

2.15 Contributed equity

Equity shares are classified as equity share capital.

Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds.

2.16 Earnings Per Share

Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. Earnings considered in ascertaining the Company''s earnings per share is the net profit or loss for the year after deducting preference dividends and any attributable tax thereto for the year. The weighted average number of equity shares outstanding during the year and for all the years presented is adjusted for events, such as bonus shares, other than the conversion of potential equity shares, that have changed the number of equity shares outstanding, without a corresponding change in resources.

For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year is adjusted for the effects of all dilutive potential equity shares.

2.17 Rounding off amounts

All amounts disclosed in financial statements and notes have been rounded off to the nearest million as per requirement of Schedule III of the Act except for per share date and unless otherwise stated.

Significant accounting judgments, estimates and assumptions

The preparation of financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future years.

3.1 Judgements

(a) Determination of Lease term as lessee :

The Company determines the lease term as the noncancellable period of a lease, together with both periods covered by an option to extend the lease if the Company is reasonably certain to exercise that option; and periods covered by an option to terminate the lease if the Company is reasonably certain not to exercise that option. In assessing whether the Company is reasonably certain to exercise an option to extend a lease, or not to exercise an option to terminate a lease, it considers all relevant facts and circumstances that create an economic incentive for the Company to exercise the option to extend the lease, or not to exercise the option to terminate the lease. The Company revises the lease term if there is a change in the non cancellable period of lease.

(b) Determination of useful life of lease hold improvement :

In the case of lease hold building improvements, the depreciation is charged based on useful life of the improvements which is 12 years years or lease period including expected renewal period which ever is lower. Judgement is exercised by the Company in determination of the expected renewal period after considering all relevant facts and circumstances that create an economic incentive on the Company to renew.

3.2 Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the year end date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

(a) Determination of useful lives of Property, plant and Equipments and Intangible asset

Property, plant and equipment represent a significant proportion of the asset base of the Company. The charge in respect of periodic depreciation is derived after determining an estimate of an asset''s expected useful life and the expected residual value at the end of its life. The useful lives and residual

values of Company''s assets are determined by the Management at the time the asset is acquired and reviewed periodically, including at each financial year end. For details refer note 2.2 and 5.

(b) Share-based payments

Estimating fair value for share-based payment transactions requires determination of the most appropriate valuation model, which is dependent on the terms and conditions of the grant. This estimate also requires determination of the most appropriate inputs to the valuation model including the expected life of the share option, volatility and dividend yield and making assumptions about them. The assumptions and models used for estimating fair value for share-based payment transactions are disclosed in Note 39.

(c) Allowance for expected credit loss

Refer note 2(iii) for the estimate used in arriving expected credit loss allowance.

(d) Defined benefit plans (gratuity benefits and leave encashment)

The cost of the defined benefit plans such as gratuity and leave encashment are determined using actuarial valuations. 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 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 year end.

The principal assumptions are the discount and salary growth rate. The discount rate is based upon the market yields available on government bonds at the accounting date with a term that matches that of liabilities. Salary increase rate takes into account of inflation, seniority, promotion and other relevant factors on long term basis. For details refer Note 39.

(e) Impairment of non-financial assets

In assessing impairment, management estimates the recoverable amount of each asset or cash-generating units based on expected future cash flows and uses an interest rate to discount them. Estimation uncertainty relates to assumptions about future operating results and the determination of a suitable discount rate.

Standards that became effective during the year

There are no new Standards that became effective during the year. Amendments that became effective during the year did not have any material effect.

44 Fair value hierarchy

The following is the hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

Level 1- Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3- Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

No financial assets/liabilities have been valued using level 1 fair value measurements.

b Valuation technique used to determine fair value

The investment in share of Janta Sahakari Bank is fair valued basis the best estimate and information available and the fair value approximates its carrying value. The investment in Kotak Liquid Fund Regular Plan Growth is fair valued basis the value of investment as on year end.

c Fair Value of financial assets and liabilities measured at amortised cost

The fair value of other current financial assets, cash and cash equivalents, trade receivables, trade payables, short-term borrowings and other financial liabilities approximate the carrying amounts because of the short term nature of these financial instruments.

The amortized cost using effective interest rate (EIR) of non-current financial assets consisting of security and term deposits and of non current financial liabilities consisting of borrowings and security deposit received are not significantly different from the carrying amount.

For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

45 Financial risk management objectives and policies

The Company is exposed to various financial risks. These risks are categorized into market risk, credit risk and liquidity risk. The Company''s risk management is coordinated by the Board of Directors and focuses on securing long term and short term cash flows. The Company does not engage in trading of financial assets for speculative purposes.

(A) Market risk

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 risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include borrowings. The Company have certain debt obligations with floating interest rates. Further, the Company is not exposed to currency risk as the Company does not have any significant foreign currency outstandings/receivables neither is the Company exposed to price or commodity risk.

A reasonably possible change of 100 basis points in interest rates at the reporting date would have increased / decreased equity and profit or loss by amounts shown below. This analyses assumes that all other variables, remain constant. This calculation also

(B) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations. The Company is exposed to credit risk from its operating activities (primarily trade receivables and security deposit to hospitals), from its financing activities, including deposits with banks and other statutory deposits with regulatory agencies. The maximum exposure to credit risk is equal to the carrying value of the financial assets. The objective of managing counterparty credit risk is to prevent losses in financial assets. The Company assesses the credit quality of the counterparties, taking into account their financial position, past experience and other factors.

The Company limits its exposure to credit risk of cash held with banks by dealing with highly rated banks and institutions and retaining sufficient balances in bank accounts required to meet a month''s operational costs. The Company does not foresee any credit risks on deposits with regulatory authorities. Customer credit risk is managed by the Group''s established policy, prcoedures and control relating to customer credit risk management. Outstanding customer receivables are regularly monitored. On account of adoption of Ind AS 109, the Company uses expected credit loss model to assess the impairment loss or gain.

46 Capital management

For the purpose of the Company''s capital management, capital includes issued equity capital, instrument entirely equity in nature, share premium and all other equity reserves attributable to the equity holders. The primary objective of the Company''s capital management is to maximize the shareholder value and to ensure the Company''s ability to continue as a going concern.

The board of directors have recommended the final dividend of H2.50 per equity share of the face value of H5 per equity share for the year ended March 31, 2024. The payment of dividend is subject to approval of shareholders at the ensuing Annual General meeting of the company. The Company monitors gearing ratio i.e. total debt in proportion to its overall financing structure, i.e. equity and debt. Total debt comprises of non-current and current borrowing including current maturities of long term borrowings. The Company manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets.

47 Corporate Social Responsibility (CSR)

As per Section 135 of the Companies Act, 2013, a Company, meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. The areas for CSR activities are promoting education, promoting gender equality by empowering women, healthcare, environment sustainability, art and culture, destitute care and rehabilitation, disaster relief, COVID-19 relief and rural development projects. A CSR committee has been formed by the Company as per the Act. The details of funds primarily utilized through the year on these activities which are specified in Schedule VII of the Companies Act, 2013 are as follows:

48 Utilisation of money raised through public issue

During the year ended March 31, 2022, the Company had raised H4,000 Million through public issue of fresh equity shares, mainly with an objective of repayment of borrowings, capital expenditure for setting-up new centers in Punjab, Karnatka, Himachal Pradesh & Maharashtra and for general corporate purposes. The Company has estimated to incur expenses aggregating H662.19 Million (out of which, 218.04 Million pertains company''s share) towards the initial public offering which includes both issue of fresh equity shares as well as offer for sale of equity shares by existing share holders. Given below are the details of utilisation of proceeds raised through public issue.

50 Pursuant to the search proceedings initiated under the provisions of section 132(1) and section 133A of the Income Tax Act, 1961 on the Company on July 20, 2022, assessment order u/s 143(3) of the Income Tax Act, 1961, has been received by the Company for the assessment year (AY) 2022-23. The tax authorities have allegedly made additions on account of undisclosed income and disallowance of certain deduction claimed by the Company in the tax returns for the assessment year (AY) 2022-23 and raised a demand of H196.3 million. The Company has provided the requisite disclosure to the stock exchange with respect to search operation on July 29, 2022, and on April 01, 2024, with respect to receipt of said Order in accordance with Regulation 30 of the SEBI (LODR) Regulations, 2015 (as amended). The Company has filed an appeal with the Joint Commissioner/Commissioner of (Appeals) ofIncome Tax against the Order on April 29, 2024. The management of the Company based on available information, underlying evidence, and opinion from tax consultants/experts, is of the view that the said demand is not tenable and will not have any material impact on the Company''s financial position as of March 31, 2024, and the performance for the year ended on that date.

52 Compliance with number of layers of companies

The company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017.

53 There are no immovable properties standing in the books of the company, hence the discloser of title deed not held in the name of the company is not applicable

54 The Company does not have any Benami property, where any proceeding has been initiated or pending against the company for holding any Benami property.

55 The company has not being declared as wilful defaluter by any bank or financials instiution or any government authority

56 The Company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956,

57 Utilisation of Borrowed funds and share premium:

(i) 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 Beneficiary

(ii) 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

58 The Company does not have any undisclosed income which is not recorded in the books of account that has been surrendered or disclosed as income during the year, (previous 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.

59 The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

60 Registration of charges or satisfaction with Registrar of Companies

As per the records available on the Registrar of Companies (RoC) portal, the below charges which were created by the Company in earlier years are still appearing as unsatisfied. However, the Company has already obtained no-dues certificate/other relevant documents from the respective bank but due to technical errors, this charge could not be satisfied on RoC portal:

Charge holder name : Punjab National Bank

Amount : 0.10 million

61 Dividend

The board of directors have recommended the dividend of H2.50 per share of the face value of H5 per share for the year ended March 31, 2024. The payment of dividend is subject to approval of shareholders at the ensuing Annual General meeting of the company and hence was not recorded as liability.

63 The Code on Social Security 2020

The Code on Social Security 2020 (''the Code'') relating to employee benefits, during the employment and post-employment, has received Presidential assent on September 28, 2020. The Code has been published in the Gazette of India. Further, the Ministry of Labour and Employment has released draft rules for the Code on November 13, 2020. However, the effective date from which the changes are applicable is yet to be notified and rules for quantifying the financial impact are also not yet issued. The Company will assess the impact of the Code and will give appropriate impact in the financial statements in the period in which, the Code becomes effective and the related rules to determine the financial impact are published.

64 Previous year figures have been regrouped/ reclassified to confirm presentation as per Ind AS and as required by Schedule III of the Act.

The accompanying notes are an integral part of the Standalone Financial Statements

As per our report of even date For and on behalf of the Board of Directors

For M S K A & Associates Krsnaa Diagnostics Limited

Chartered Accountants CIN:L74900PN2010PLC138068

Firm Registration No.:105047W

Shraddha D Khivasara Rajendra Mutha Yash Mutha Pallavi Bhatevara

Partner Chairman Joint Managing Director Executive Director

Membership No: 134285 DIN: 01066737 DIN: 07285523 DIN: 03600332

Place: Pune Place: Pune Place: Pune Place: Pune

Date: May 18, 2024 Date: May 18, 2024 Date: May 18, 2024 Date: May 18, 2024

Prashant Deshmukh Pawan Daga Sujoy Bose

Chief Executive Officer Chief Financial Officer Company Secretary

Place: Pune Place: Pune Place: Pune

Date: May 18, 2024 Date: May 18, 2024 Date: May 18, 2024

Provisions and contingent liabilities

Provisions are recognized when there is a present
obligation as a result of a past event, it is probable
that an outflow of resources embodying economic
benefits will be required to settle the obligation
and there is a reliable estimate of the amount of
the obligation. Provisions are measured at the best
estimate of the expenditure required to settle the
present obligation at the Balance sheet date.

If the effect of the time value of money is material,
provisions are discounted using a current pre-tax rate
that reflects, when appropriate, the risks specific to
the liability. When discounting is used, the increase in
the provision due to the passage of time is recognized
as a finance cost.

The Company records a provision for decommissioning
costs. Decommissioning costs are provided at the
present value of expected costs to settle the obligation
using estimated cash flows and are recognized as part
of the cost of the particular asset. The cash flows are
discounted at a current pre-tax rate that reflects the
risks specific to the decommissioning liability. The
unwinding of the discount is expensed as incurred
and recognized in the statement of profit and loss
as a finance cost. The estimated future costs of
decommissioning are reviewed annually and adjusted
as appropriate. Changes in the estimated future
costs or in the discount rate applied are added to or
deducted from the cost of the asset.

Contingent liabilities are disclosed 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 will be required to settle or a
reliable estimate of the amount cannot be made.

2.12 Cash and cash equivalents

Cash and cash equivalent in the balance sheet
comprise cash at banks, cash on hand and short¬
term deposits net of bank overdraft with an original
maturity of three months or less, which are subject to
an insignificant risk of changes in value.

For the purposes of the cash flow statement, cash and
cash equivalents include cash on hand, cash in banks
less bank and book overdraft.

2.13 Financial instruments

A financial instrument is any contract that gives rise to
a financial asset of one entity and a financial liability
or equity instrument of another entity.

(a) Financial assets

(i) Initial recognition and measurement

At initial recognition, financial asset is
measured at its fair value plus, in the case
of a financial asset not at fair value through

profit or loss, transaction costs that are
directly attributable to the acquisition of
the financial asset. Transaction costs of
financial assets carried at fair value through
profit or loss are expensed in profit or loss.
However, trade receivables that do not
contain a significant financing component
are measured at transaction price.

(ii) Subsequent measurement

For purposes of subsequent measurement,
financial assets are classified in
following categories:

a) at amortized cost; or

b) at fair value through other
comprehensive income; or

c) at fair value through profit or loss.

The classification depends on the entity''s
business model for managing the financial
assets and the contractual terms of the
cash flows.

Amortized cost: Assets that are held for
collection of contractual cash flows where
those cash flows represent solely payments
of principal and interest are measured
at amortized cost. Interest income from
these financial assets is included in finance
income using the effective interest rate
method (EIR).

Fair value through other comprehensive
income (FVOCI): Assets that are held for
collection of contractual cash flows and for
selling the financial assets, where the assets''
cash flows represent solely payments of
principal and interest, are measured at
fair value through other comprehensive
income (FVOCI). Movements in the carrying
amount are taken through OCI, except
for the recognition of impairment gains
or losses, interest revenue and foreign
exchange gains and losses which are
recognized in Statement of Profit and Loss.

When the financial asset is derecognized,
the cumulative gain or loss previously
recognized in OCI is reclassified from
equity to Statement of Profit and Loss and
recognized in other gains/ (losses). Interest
income from these financial assets is
included in other income using the effective
interest rate method.

Fair value through profit or loss (FVTPL):
Assets that do not meet the criteria for
amortized cost or FVOCI are measured at
fair value through profit or loss. Interest
income from these financial assets is
included in other income.

Equity instruments: All equity investments
in scope of Ind AS 109 are measured at fair
value. Equity instruments which are held
for trading and contingent consideration
recognised by an acquirer in a business
combination to which Ind AS103 applies
are classified as at FVTPL. For all other
equity instruments, the Company may
make an irrevocable election to present in
other comprehensive income subsequent
changes in the fair value. The Company
makes such election on an instrument- by¬
instrument basis. The classification is made
on initial recognition and is irrevocable.

If the Company decides to classify an equity
instrument as at FVTOCI, then all fair value
changes on the instrument, excluding
dividends, are recognized in the OCI. There
is no recycling of the amounts from OCI to
P&L, even on sale of investment. However,
the Company may transfer the cumulative
gain or loss within equity.

Equity instruments included within the FVTPL
category are measured at fair value with all
changes recognized in the profit and loss.

(iii) Impairment of financial assets

In accordance with Ind AS 109, Financial
Instruments, the Company applies expected

credit loss (ECL) model for measurement
and recognition of impairment loss on
financial assets that are measured at
amortized cost and FVOCI.

For recognition of impairment loss on
financial assets and risk exposure, the
Company determines that whether there
has been a significant increase in the credit
risk since initial recognition. If credit risk
has not increased significantly, 12-month
ECL is used to provide for impairment
loss. However, if credit risk has increased
significantly, lifetime ECL is used. If in
subsequent years, credit quality of the
instrument improves such that there is no
longer a significant increase in credit risk
since initial recognition, then the entity
reverts to recognizing impairment loss
allowance based on 12 month ECL.

Life time ECLs are the expected credit
losses resulting from all possible default
events over the expected life of a financial
instrument. The 12 month ECL is a portion of
the lifetime ECL which results from default
events that are possible within 12 months
after the year end.

ECL is the difference between all contractual
cash flows that are due to the Company in
accordance with the contract and all the
cash flows that the entity expects to receive
(i.e. all shortfalls), discounted at the original
EIR. When estimating the cash flows, an
entity is required to consider all contractual
terms of the financial instrument (including
prepayment, extension etc.) over the
expected life of the financial instrument.
However, in rare cases when the expected
life of the financial instrument cannot
be estimated reliably, then the entity is
required to use the remaining contractual
term of the financial instrument.

ECL impairment loss allowance (or reversal)
recognized during the year is recognized

as income/expense in the statement of
profit and loss. In balance sheet ECL for
financial assets measured at amortized
cost is presented as an allowance, i.e. as an
integral part of the measurement of those
assets in the balance sheet. The allowance
reduces the net carrying amount. Until the
asset meets write off criteria, the Company
does not reduce impairment allowance
from the gross carrying amount.

(iv) Derecognition of financial assets

A financial asset is derecognized only when

a) the rights to receive cash flows from
the financial asset is transferred or

b) retains the contractual rights to receive
the cash flows of the financial asset,
but assumes a contractual obligation
to pay the cash flows to one or
more recipients.

Where the financial asset is transferred
then in that case financial asset is
derecognized only if substantially all risks
and rewards of ownership of the financial
asset is transferred. Where the entity has
not transferred substantially all risks and
rewards of ownership of the financial asset,
the financial asset is not derecognized."

(b) Financial liabilities

(i) Initial recognition and measurement

Financial liabilities are classified, at initial
recognition, as financial liabilities at fair
value through profit or loss and at amortized
cost, as appropriate.

All financial liabilities are recognized initially
at fair value and, in the case of borrowings
and payables, net of directly attributable
transaction costs.

(ii) Subsequent measurement

The measurement of financial liabilities
depends on their classification, as
described below:

Financial liabilities at fair value through
profit or loss

Financial liabilities at fair value through
profit or loss include financial liabilities
held for trading and financial liabilities
designated upon initial recognition as at
fair value through profit or loss. Separated
embedded derivatives are also classified as
held for trading unless they are designated
as effective hedging instruments. Gains
or losses on liabilities held for trading
are recognized in the Statement of
Profit and Loss.

Loans and borrowings

After initial recognition, interest-bearing
loans and borrowings are subsequently
measured at amortized cost using the EIR
method. Gains and losses are recognized
in Statement of Profit and Loss when the
liabilities are derecognized as well as
through the EIR amortization process.
Amortized cost is calculated by taking
into account any discount or premium on
acquisition and fees or costs that are an
integral part of the EIR. The EIR amortization
is included as finance costs in the Statement
of Profit and Loss.

(iii) Derecognition

A financial liability is derecognized when the
obligation under the liability is discharged
or cancelled or expires. When an existing
financial liability is replaced by another
from the same lender on substantially
different terms, or the terms of an existing
liability are substantially modified, such an
exchange or modification is treated as the
derecognition of the original liability and the
recognition of a new liability. The difference
in the respective carrying amounts is
recognized in the Statement of Profit and
Loss as finance costs.

(c) Embedded derivatives

An embedded derivative is a component of a

hybrid (combined) instrument that also includes

a non-derivative host contract - with the effect
that some of the cash flows of the combined
instrument vary in a way similar to a standalone
derivative. Derivatives embedded in all other
host contract are separated if the economic
characteristics and risks of the embedded
derivative are not closely related to the economic
characteristics and risks of the host and are
measured at fair value through profit or loss.
Embedded derivatives closely related to the host
contracts are not separated.

Reassessment only occurs if there is either
a change in the terms of the contract that
significantly modifies the cash flows that would
otherwise be required or a reclassification of
a financial asset out of the fair value through
profit or loss.

(d) Offsetting financial instruments

Financial assets and liabilities are offset and the
net amount is reported in the balance sheet
where there is a legally enforceable right to
offset the recognized amounts and there is an
intention to settle on a net basis or realize the
asset and settle the liability simultaneously. The
legally enforceable right must not be contingent
on future events and must be enforceable in
the normal course of business and in the event
of default, insolvency or bankruptcy of the
Company or the counterparty.

2.14 Employee Benefits

(a) Short-term obligations

Liabilities for wages and salaries, including
non-monetary benefits that are expected to be
settled wholly within 12 months after the end
of the year in which the employees render the
related service are recognized in respect of
employees'' services up to the end of the year
and are measured at the amounts expected
to be paid when the liabilities are settled. The
liabilities are presented as current employee
benefit obligations in the balance sheet.

(b) Other long-term employee benefit

obligations

(i) Defined contribution plan

Provident Fund: Contribution towards
provident fund is made to the regulatory
authorities, where the Company has no
further obligations. Such benefits are
classified as Defined Contribution Schemes
as the Company does not carry any further
obligations, apart from the contributions
made on a monthly basis which are charged
to the Statement of Profit and Loss.

Employee''s State Insurance Scheme:
Contribution towards employees'' state
insurance scheme is made to the regulatory
authorities, where the Company has no
further obligations. Such benefits are
classified as Defined Contribution Schemes
as the Company does not carry any further
obligations, apart from the contributions
made on a monthly basis which are charged
to the Statement of Profit and Loss.

(ii) Defined benefit plans

Gratuity: The Company provides for gratuity,
a defined benefit plan (the ''Gratuity Plan")
covering eligible employees in accordance
with the Payment of Gratuity Act, 1972.
The Gratuity Plan provides a lump sum
payment to vested employees at retirement,
death, incapacitation or termination of
employment, of an amount based on
the respective employee''s salary. The
Company''s liability is actuarially determined
(using the Projected Unit Credit method) at
the end of each year. Actuarial losses/gains
are recognized in the other comprehensive
income in the year in which they arise.

Compensated Absences: Accumulated
compensated absences, which are expected
to be availed or encashed within 12 months
from the end of the year are treated
as short term employee benefits. The
obligation towards the same is measured
at the expected cost of accumulating
compensated absences as the additional

amount expected to be paid as a result of
the unused entitlement as at the year end.

Accumulated compensated absences, which
are expected to be availed or encashed
beyond 12 months from the end of the
year end are treated as other long term
employee benefits. The Company''s liability is
actuarially determined (using the Projected
Unit Credit method) at the end of each year.
Actuarial losses/gains are recognized in the
statement of profit and loss in the year in
which they arise.

Leaves under define benefit plans can be
encashed only on discontinuation of service
by employee.

(c) Share-based payments

Employees (including senior executives) of the
Company receive remuneration in the form of
share-based payments, whereby employees
render services as consideration for equity
instruments (equity-settled transactions). The
cost of equity-settled transactions is determined
by the fair value at the date when the grant is
made using an appropriate valuation model.

That cost is recognised, together with a
corresponding increase in share-based payment
(SBP) reserves in equity, over the period in which
the performance and/or service conditions are
fulfilled in employee benefits expense. The
cumulative expense recognised for equity-
settled transactions at each reporting date
until the vesting date reflects the extent to
which the vesting period has expired and the
Companies best estimate of the number of
equity instruments that will ultimately vest. The
statement of profit and loss expense or credit for
a period represents the movement in cumulative
expense recognised as at the beginning and end
of that period and is recognised in employee
benefits expense.

No expense is recognised for awards that do not
ultimately vest because non-market performance
and/or service conditions have not been met.
Where awards include a market or non-vesting

condition, the transactions are treated as vested
irrespective of whether the market or non¬
vesting condition is satisfied, provided that all
other performance and/or service conditions
are satisfied.

The dilutive effect of outstanding options is
reflected as additional share dilution in the
computation of diluted earnings per share.

2.15 Contributed equity

Equity shares are classified as equity share capital.

Incremental costs directly attributable to the issue
of new shares or options are shown in equity as a
deduction, net of tax, from the proceeds.

2.16 Earnings Per Share

Basic earnings per share is calculated by dividing the
net profit or loss for the year attributable to equity
shareholders by the weighted average number of
equity shares outstanding during the year. Earnings
considered in ascertaining the Company''s earnings
per share is the net profit or loss for the year after
deducting preference dividends and any attributable
tax thereto for the year. The weighted average number
of equity shares outstanding during the year and for
all the years presented is adjusted for events, such as
bonus shares, other than the conversion of potential
equity shares, that have changed the number of
equity shares outstanding, without a corresponding
change in resources.

For the purpose of calculating diluted earnings per
share, the net profit or loss for the year attributable
to equity shareholders and the weighted average
number of shares outstanding during the year
is adjusted for the effects of all dilutive potential
equity shares.

2.17 Rounding off amounts

All amounts disclosed in financial statements and
notes have been rounded off to the nearest million
as per requirement of Schedule III of the Act except
for per share date and unless otherwise stated.

3 Significant accounting judgments, estimates
and assumptions

The preparation of financial statements requires
management to make judgments, estimates and
assumptions that affect the reported amounts
of revenues, expenses, assets and liabilities, and
the accompanying disclosures, and the disclosure
of contingent liabilities. Uncertainty about these
assumptions and estimates could result in outcomes
that require a material adjustment to the carrying
amount of assets or liabilities affected in future years.

3.1 Estimates and assumptions

The key assumptions concerning the future and other
key sources of estimation uncertainty at the year end
date, that have a significant risk of causing a material
adjustment to the carrying amounts of assets and
liabilities within the next financial year, are described
below. The Company based its assumptions and
estimates on parameters available when the financial
statements were prepared. Existing circumstances
and assumptions about future developments,
however, may change due to market changes or
circumstances arising that are beyond the control
of the Company. Such changes are reflected in the
assumptions when they occur.

(a) Share-based payments

Estimating fair value for share-based payment
transactions requires determination of the
most appropriate valuation model, which is
dependent on the terms and conditions of the
grant. This estimate also requires determination
of the most appropriate inputs to the valuation
model including the expected life of the share
option, volatility and dividend yield and making
assumptions about them. The assumptions
and models used for estimating fair value for
share-based payment transactions are disclosed
in Note 40.

(b) Defined benefit plans (gratuity benefits
and leave encashment)

The cost of the defined benefit plans such as
gratuity and leave encashment are determined
using actuarial valuations. 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 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 year end.

The principal assumptions are the discount and
salary growth rate. The discount rate is based
upon the market yields available on government
bonds at the accounting date with a term that
matches that of liabilities. Salary increase
rate takes into account of inflation, seniority,
promotion and other relevant factors on long
term basis. For details refer Note 39.

(c) Impairment of non-financial assets

In assessing impairment, management
estimates the recoverable amount of each asset
or cash-generating units based on expected
future cash flows and uses an interest rate to
discount them. Estimation uncertainty relates to
assumptions about future operating results and
the determination of a suitable discount rate.

(d) Determination of useful lives of Property,
plant and Equipments and Intangible asset

Property, plant and equipment represent a
significant proportion of the asset base of the
Company. The charge in respect of periodic
depreciation is derived after determining an
estimate of an asset''s expected useful life and
the expected residual value at the end of its life.
The useful lives and residual values of Company''s
assets are determined by the Management at
the time the asset is acquired and reviewed
periodically,including at each financial year end.

4.1 Standards (including amendments) issued
but not yet effective

The Ministry of Corporate Affairs ("MCA") has notified
Companies (Indian Accounting Standard) Amendment
Rules, 2023 dated March 31, 2023 to amend certain
Ind ASs which are effective from April 01,2023:

Below is a summary of such amendments:

(i) Disclosure of Accounting Policies - Amendment
to Ind AS 1 Presentation of financial statements

The MCA issued amendments to Ind AS 1, providing
guidance to help entities meet the accounting
policy disclosure requirements. The amendments
aim to make accounting policy disclosures more
informative by replacing the requirement to
disclose ''significant accounting policies'' with
''material accounting policy information''. The
amendments also provide guidance under what
circumstance, the accounting policy information
is likely to be considered material and therefore
requiring disclosure.

The amendments are effective for annual
reporting periods beginning on or after
April 01, 2023. The Company is currently
revisiting their accounting policy information
disclosures to ensure consistency with the
amended requirements.

(ii) Definition of Accounting Estimates - Amendments
to Ind AS 8 Accounting policies, changes in
accounting estimates and errors

The amendment to Ind AS 8, which added the
definition of accounting estimates, clarifies that
the effects of a change in an input or measurement
technique are changes in accounting estimates,
unless resulting from the correction of prior
period errors. These amendments clarify how
entities make the distinction between changes
in accounting estimate, changes in accounting
policy and prior period errors. The distinction
is important, because changes in accounting
estimates are applied prospectively to future
transactions and other future events, but
changes in accounting policies are generally
applied retrospectively to past transactions and
other past events as well as the current period.

The amendments are effective for annual
reporting periods beginning on or after April
01, 2023. The amendments are not expected
to have a material impact on the Company''s
financial statements.

(iii) Deferred Tax related to Assets and Liabilities
arising from a Single Transaction - Amendments
to Ind AS 12 Income taxes

The amendment to Ind AS 12, requires entities to
recognise deferred tax on transactions that, on
initial recognition, give rise to equal amounts of
taxable and deductible temporary differences.
They will typically apply to transactions such
as leases of lessees and decommissioning
obligations and will require the recognition of
additional deferred tax assets and liabilities.

The amendment should be applied to
transactions that occur on or after the beginning
of the earliest comparative period presented. In
addition, entities should recognise deferred tax
assets (to the extent that it is probable that they
can be utilised) and deferred tax liabilities at the
beginning of the earliest comparative period for
all deductible and taxable temporary differences
associated with:

• right-of-use assets and lease liabilities, and

• decommissioning, restoration and similar
liabilities, and the corresponding amounts
recognised as part of the cost of the
related assets.

The cumulative effect of recognising these
adjustments is recognised in retained earnings,
or another component of equity, as appropriate.
Ind AS 12 did not previously address how to
account for the tax effects of on-balance sheet
leases and similar transactions and various
approaches were considered acceptable.
Some entities may have already accounted
for such transactions consistent with the new
requirements. These entities will not be affected
by the amendments.

The Company is currently assessing the impact
of the amendments.

iv) The other amendments to Ind AS notified by these
rules are primarily in the nature of clarifications.

4.2 Standards that became effective during the
year

There are no new Standards that became effective
during the year. Amendments that became effective
during the year did not have any material effect.