2. Basis of Preparation and Significant Accounting Policies

2.1 Statement of Compliance

These consolidated financial statements have been prepared in accordance with Indian Accounting
Standards (Ind AS) as notified under Section 133 of the Companies Act, 2013, read with the Companies
(Indian Accounting Standards) Rules, 2015, and other relevant provisions of the Act.

2.2 Basis of Preparation and Presentation

The financial statements have been prepared on a historical cost basis, except for the following:

Certain financial assets and liabilities measured at fair value; Defined benefit plans—plan assets
measured at fair value;

Assets held for sale—measured at the lower of carrying amount and fair value less costs to sell.

The financial statements are presented in Indian Rupees INR ( ), which is the Company's functional and
presentation currency. All amounts are rounded to the nearest lakh, unless otherwise stated.

2.3 Use of Estimates and Judgements

The preparation of financial statements in conformity with Ind AS requires management to make
judgments, estimates, and assumptions that affect the reported amounts of assets, liabilities, income,
and expenses. Actual results may differ from these estimates.

Significant areas requiring the use of management estimates include:

1. Estimation of useful lives of property, plant, and equipment;

2. Valuation of inventories;

3. Impairment of non-financial assets;

4. Measurement of defined benefit obligations;

5. Recognition of deferred tax assets;

6. Provision for expected credit losses;

7. Determination of lease term and discount rates for leases.

3. Operating Cycle

Based on the nature of its operations and the time between the acquisition of assets for processing and their
realization in cash or cash equivalents, the Company has determined its operating cycle as 12 months for the
purpose of classification of assets and liabilities as current and non-current.

4. Revenue Recognition

Revenue is recognized when control of goods or services is transferred to the customer at an amount that
reflects the consideration the Company expects to be entitled to in exchange for those goods or services, in
accordance with Ind AS 115 - Revenue from Contracts with Customers.

4.1 Sale of Medical Devices

Revenue from the sale of medical devices, including MRI machines, preventive diagnostic devices, and
ancillary medical instruments, is recogniz upon transfer of control to the customer

MRI Devices: Revenue is recognized upon asset readiness at the Company's premises, as per the
contractual terms which are on an Ex-Works basis. Under such terms, the customer takes title and bears
the risks and rewards of ownership once the asset is made available for collection. The Company has no
further performance obligation beyond making the asset ready for dispatch.

Other Medical Devices: For devices not sold under Ex-Works terms, revenue is recognized upon delivery
at the customer's site or installation, depending on the specific terms of the contract and when control is
deemed to have transferred.

Revenue excludes taxes , discounts, and does not include amounts collected on behalf of third parties.

4.2 Installation and Commissioning

Installation and commissioning services are accounted for separately if they are distinct from the sale
of devices. Where considered distinct, revenue is recognized upon completion of the service. Where
bundled with the sale of equipment and not separately identifiable, the total transaction price is allocated
and recognized in accordance with the transfer of control of the entire performance obligation.

4.3 Annual Maintenance Contracts (AMCs) and Support Services

Revenue for maintenance services provided after a sale is recognized gradually throughout the contract
period, usually evenly distributed, as customers benefit from these services continuously while they are
being delivered.

4.4 Leasing of Medical Devices

Revenue from leasing of medical devices is recognized in accordance with Ind AS 116, “Leases.” Refer
Clause 5.2 for further information.

5. Leases

The Company assesses whether an agreement is or contains a lease at inception. An agreement is considered
a lease, or contains leasing elements, when it transfers the authority to use a specific asset for a defined
timeframe in return for payment.

5.1 Company as Lessee

The Company recognizes a right-of-use (ROU) asset and a lease liability at the lease commencement
date. The ROU asset is initially measured at co which comprises:

The amount of the initial measurement of the lease liability;

Any lease payments made at or before the commencement date, less any lease incentives received; Any
initial direct costs incurred by the Company;

An estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset.

The ROU asset is subsequently depreciated using the straight-line method from the commencement date
to the earlier of the end of the useful life of the ROU asset or the end of the lease term.

The lease liability is initially measured at the present value of the lease payments that are not paid at
the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be
readily determined, the Company's incremental borrowing rate.

5.2 Company as Lessor

When the Company acts as a lessor, it classifies each lease as either an operating lease or a finance
lease.

Finance Lease: If the lease transfers substantially all the risks and rewards incidental to ownership of the
underlying asset, the lease is classified as a finance lease. The Company recognizes a net investment
in the lease and derecognizes the underlying asset. Interest income is recognized over the lease term
based on a pattern reflecting a constant periodic rate of return on the net investment.

Operating Lease: If the lease does not transfer substantially all the risks and rewards incidental to
ownership, it is classified as an operating lease. The Company continues to recognize the underlying
asset and recognizes lease income on a straight-line basis over the lease term.

i. Property, Plant, and Equipment

Property, plant, and equipment (PPE) are stated at cost, net of accumulated depreciation and accumulated
impairment losses, if any. The cost includes purchase price, borrowing costs, and any directly attributable
costs of bringing the asset to its working condition for its intended use.

Depreciation is provided on a straight-line basis over the useful lives of the assets as prescribed under
Schedule II of the Companies Act, 2013, as follows:

The residual values, useful lives, and methods of depreciation are reviewed at each financial year-end and
adjusted prospectively, if appropriate.

7. Intangible Assets

Intangible assets acquired separately are measured on initial recognition at cost. Internally generated
intangible assets, arising from the development phase of internal projects, are recognized if, and only if, all
the following conditions have been demonstrated:

1. The technical feasibility of completing the intangible asset so that it will be available for use or sale;

2. The intention to complete the intangible asset and use or sell it;

3. The ability to use or sell the intangible asset;

4. How the intangible asset will generate probable future economic benefits;

5. The availability of adequate technical, financial, and other resources to complete the development and
to use or sell the intangible asset;

6. The ability to measure reliably the expenditure attributable to the intangible asset during its development.

7. Research costs are expensed as incurred.

8. Amortization of intangible assets is provided on a straight-line basis over their estimated useful lives,
ranging from 3 to 5 years, commencing fro the date the asset is available for use

8. Goodwill

Goodwill represents the excess of the cost of an acquisition over the fair value of the Company's share of the
net identifiable assets of the acquired entity at the date of acquisition. Goodwill is not amortized but is tested

for impairment annually or more frequently if events or changes in circumstances indicate that it might be
impaired.

For the purpose of impairment testing, goodwill is allocated to each of the Company's cash-generating units
(CGUs) expected to benefit from the synergies of the combination. If the recoverable amount of the CGU is
less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any
goodwill allocated to the CGU and then to the other assets of the CGU pro-rata based on the carrying
amount of each asset in the CGU.

>. Inventories

Inventories are valued at the lower of cost and net realizable value. Cost is determined as follows:

MRI Machines: Specific identification method is used due to the unique nature and high value of each unit.
Other Medical Devices: First-in, first-out (FIFO) method is used.

Cost includes all costs of purchase, conversion, and other costs incurred in bringing the inventories to their
present location and condition.

Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of
completion and the estimated costs necessary to make the sale.

0. Employee Benefits

10.1 Short-Term Employee Benefits

Short-term employee benefits, such as salaries, wages, and performance incentives, are recognized as
an expense in the period in which the employees render the related service.

10.2 Defined Contribution Plans

The Company makes contributions to statutory provident fund and employee state insurance schemes,
which are defined contribution plans. The Company has no further obligations beyond its monthly
contributions. Contributions are recognized as an expense in the period in which they are due.

10.3 Defined Benefit Plans

The Company provides for gratuity, a defined benefit plan, in accordance with the Payment of Gratuity
Act, 1972. The plan is funded through a gratuity trust. The liability is determined using the projected unit
credit method, with actuarial valuations being carried out at each balance sheet date.

Remeasurements, comprising actuarial gains and losses, the effect of the asset ceiling, excluding amounts
included in net interest on the net defined benefit liability, and the return on plan assets (excluding
amounts included in net interest on the net defined benefit liability), are recognized immediately in the
balance sheet with a corresponding debit or credit to other comprehensive income in the period in which
they occur.

10.4 Leave Encashment

The Company provides for leave encashment benefits, which are classified as bot short-term and long¬
term employee benefits depending on when the benefits are expected to be settled.

Short-term leave benefits expected to be settled within 12 months after the end of the period in which
employees render the related service are recognized on an undiscounted basis as an expense.

Long-term leave benefits (e.g., accumulated earned leave) are actuarially valued using the projected unit
credit method at the end of each reporting period. The resulting actuarial gains/losses are recognized in
the statement of profit and loss.

1. Income Taxes

11.1 Current Tax

Current tax is the amount of income taxes payable based on the taxable profit for the period, determined
in accordance with the provisions of the Income Tax Act, 1961. The tax is calculated using applicable
tax rates and laws enacted or substantively enacted as of the reporting date. Current tax assets and
liabilities are offset only when the Company has a legally enforceable right to set off and intends to
settle on a net basis.

11.2 Deferred Tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and
liabilities in the financial statements and the corresponding tax bases used in the computation of
taxable profit. Deferred tax liabilities are recognized for all taxable temporary differences, and
deferred tax assets are recognized for all deductible temporary differences, the carry forward of
unused tax credits, and unused tax losses to the extent it is probable that future taxable profits will
be available against which those can be utilized.Deferred tax is measured using the tax rates and tax
laws that have been enacted or substantively enacted as of the reporting date. Deferred tax assets
and liabilities are offset when the Company has a legally enforceable right to set off current tax assets
against current tax liabilities.