3.25 Provisions, Contingent Liabilities and
Contingent Assets
A provision is recognized when the Company has a
present obligation (legal or constructive) as a result
of past events and it is probable that an outflow of
resources will be required to settle the obligation in
respect of which a reliable estimate can be made.
Provisions are determined based on the best estimate
required to settle the obligation at the balance sheet
date and measured using the present value of cash
flows estimated to settle the present obligations
(when the effect of time value of money is material).
These are reviewed at each balance sheet date and
adjusted to reflect the current best estimates.
Contingent liability is disclosed for
(i) Possible obligations which will be confirmed only
by future events not wholly within the control of the
Company or
(ii) Present obligations arising from past events where
it is not probable that an outflow of resources will be
required to settle the obligation or a reliable estimate
of the amount of the obligation cannot be made.
The Company does not recognize a contingent
liability but discloses its existence in the Financial
Statements. Contingent assets are only disclosed
when it is probable that the economic benefits
will flow to the entity.
3.26 Insurance claims
Insurance claims are accounted for on the basis of
claims admitted / expected to be admitted and to the
extent that the amount recoverable can be measured
reliably and it is reasonable to expect ultimate
collection.
3.27 Financial Instrument
Initial Recognition
Financial assets and financial liabilities are recognized
when the Company becomes a party to the
contractual provisions of the instrument. Financial
assets and liabilities are initially measured at fair
value. Transaction costs that are directly attributable
to the acquisition or issue of financial assets and
financial liabilities (other than financial assets and
financial liabilities at fair value through profit or loss
(FVTPL)) are added to or deducted from the fair value
measured on initial recognition of financial asset
or financial liability. The transaction costs directly
attributable to the acquisition of financial assets and
financial liabilities at fair value through profit and
loss are immediately recognized in the statement of
profit and loss.
3.27.1 Financial Assets
(a) Recognition and initial measurement
(i) The Company initially recognizes loans and
advances, deposits and subordinated liabilities on
the date on which they originate. All other financial
instruments (including regular way purchases and
sales of financial assets) are recognized on the
trade date, which is the date on which the Company
becomes a party to the contractual provisions of the
instrument. A financial asset or liability is initially
measured at fair value plus, for an item not at FVTPL,
transaction costs that are directly attributable to its
acquisition or issue.
(b) Classification of financial assets
On initial recognition, a financial asset is classified
to be measured at amortized cost, fair value
through other comprehensive income (FVTOCI) or
FVTPL.
A financial asset is measured at amortized cost if it
meets both of the following conditions and is not
designated at FVTPL:
• The asset is held within a business model whose
objective is to hold assets to collect contractual
cash flows; and
• The contractual terms of the financial asset give
rise on specified dates to cash flows that are
solely payments of principal and interest on the
principal amount outstanding.
For the impairment policy in financial assets
measured at amortized cost, refer Note 3.27.1(e)
A debt instrument is classified as FVTOCI only if it
meets both of the following conditions and is not
recognized at FVTPL:
• The asset is held within a business model whose
objective is achieved by both collecting
contractual cash flows and selling financial
assets; and
• The contractual terms of the financial asset give
rise on specified dates to cash flows that are
solely payments of principal and interest on the
principal amount outstanding.
All other financial assets are subsequently measured
at fair value.
(c) Effective interest method
The effective interest method is a method of
calculating the amortized cost of a debt instrument
and of allocating interest income over the relevant
period. The effective interest rate is the rate that
exactly discounts estimated future cash receipts
(including all fees and points paid or received that
form an integral part of the effective interest rate,
transaction costs and other premiums or discounts)
through the expected life of the debt instrument,
or where appropriate, a shorter period, to the gross
carrying amount on initial recognition.
Income is recognized on an effective interest basis for
debt instruments other than those financial assets
classified as at FVTPL. Interest income is recognized
in profit or loss and is included in the "Other Income"
line item.
(d) Financial assets at fair value through profit or
loss (FVTPL)
Debt instruments that do not meet the amortized
cost criteria or FVTOCI criteria (see above) are
measured at FVTPL. In addition, debt instruments
that meet the amortized cost criteria or the FVTOCI
criteria but are designated as at FVTPL are measured
at FVTPL.
A financial asset that meets the amortized cost
criteria or debt instruments that meet the FVTOCI
criteria may be designated as at FVTPL upon
initial recognition if such designation eliminates or
significantly reduces a measurement or recognition
inconsistency that would arise from measuring
assets or liabilities or recognizing the gains and losses
on them on different bases. The Company has not
designated any debt instrument as at FVTPL.
Financial assets at FVTPL are measured at fair value
at the end of each reporting period, with any gains or
losses arising on remeasurement recognized in profit
or loss. The net gain or loss recognized in profit or loss
incorporates any dividend or interest earned on the
financial asset and is included in the ‘Other income'
line item. Dividend on financial assets at FVTPL is
recognized when the Company's right to receive
the dividends is established, it is probable that the
economic benefits associated with the dividend will
flow to the entity, the dividend does not represent
a recovery of part of cost of the investment and the
amount of dividend can be measured reliably.
(e) Impairment of financial assets
The Company applies the expected credit loss model
for recognizing impairment loss on financial assets
measured at amortized cost, debt instruments at
FVTOCI, trade receivables and other contractual
rights to receive cash or other financial asset.
Expected credit losses are the weighted average
of credit losses with the respective risks of default
occurring as the weights. Credit loss 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 Company expects to receive (i.e.
all cash shortfalls), discounted at the original effective
interest rate (or credit-adjusted effective interest
rate for purchased or originated credit-impaired
financial assets). The Company estimates cash flows
by considering all contractual terms of the financial
instrument (for example, prepayment, extension, call
and similar options) through the expected life of that
financial instrument.
The Company measures the loss allowance for a
financial instrument at an amount equal to the
lifetime expected credit losses if the credit risk on
that financial instrument has increased significantly
since initial recognition. If the credit risk on a financial
instrument has not increased significantly since
initial recognition, the Company measures the loss
allowance for that financial instrument at an amount
equal to 12-month expected credit losses. 12-month
expected credit losses are portion of the life-time
expected credit losses and represent the lifetime
cash shortfalls that will result if default occurs within
the 12 months after the reporting date and thus, are
not cash shortfalls that are predicted over the next 12
months.
For trade receivables, the Company always measures
the loss allowance at an amount equal to lifetime
expected credit losses. Further, for the purpose of
measuring lifetime expected credit loss allowance for
trade receivables, the Company has used a practical
expedient as permitted under Ind AS 109. This
expected credit loss allowance is computed based on
a provision matrix which takes into account historical
credit loss experience and adjusted for forward¬
looking information.
(f) Derecognition of financial assets
The Company derecognizes a financial asset when
the contractual rights to the cash flows from the
asset expire, or when it transfers the financial
asset and substantially all the risks and rewards
of ownership of the asset to another party. If the
Company neither transfers nor retains substantially
all the risks and rewards of ownership and continues
to control the transferred asset, the Company
recognizes its retained interest in the asset and an
associated liability for amounts it may have to pay.
If the Company retains substantially all the risks and
rewards of ownership of a transferred financial asset,
the Company continues to recognize the financial
asset and also recognizes a collateralized borrowing
for the proceeds received.
On derecognition of a financial asset in its entirety,
the difference between the asset's carrying amount
and the sum of the consideration received and
receivable and the cumulative gain or loss that had
been recognized in other comprehensive income
and accumulated in equity is recognized in profit
or loss if such gain or loss would have otherwise
been recognized in profit or loss on disposal of that
financial asset.
On derecognition of a financial asset other than
in its entirety (e.g. when the Company retains an
option to repurchase part of a transferred asset), the
Company allocates the previous carrying amount of
the financial asset between the part it continues to
recognize under continuing involvement, and the part
it no longer recognizes on the basis of the relative fair
values of those parts on the date of the transfer. The
difference between the carrying amount allocated
to the part that is no longer recognized and the sum
of the consideration received for the part no longer
recognized and any cumulative gain or loss allocated
to it that had been recognized in other comprehensive
income is recognized in profit or loss if such gain
or loss would have otherwise been recognized in
profit or loss on disposal of that financial asset. A
cumulative gain or loss that had been recognized in
other comprehensive income is allocated between
the part that continues to be recognized and the
part that is no longer recognized on the basis of the
relative fair values of those parts.
(g) Foreign exchange gains and losses
The fair value of financial assets denominated in
a foreign currency is determined in that foreign
currency and translated at the spot rate at the end of
each reporting period.
• For foreign currency denominated financial
assets measured at amortized cost and FVTPL,
the exchange differences are recognized in profit
or loss.
• Changes in carrying amount of investments in
equity instruments at FVTOCI relating to changes
in foreign currency rates are recognized in other
comprehensive income.
• For the purposes of recognizing foreign exchange
gains or losses, FVTOC debt instruments are
treated as financial assets measured at
amortized cost. Thus, the exchange differences
on the amortized cost are recognized in the
Statement of Profit and Loss and other changes
in the fair value of FVTOCI financial assets are
recognized in other comprehensive income.
3.27.2 FINANCIAL LIABILITIES AND EQUITY INSTRUMENTS
(a) Classification as debt or equity:
Financial liabilities and equity instruments issued
by the Company are classified according to the
substance of the contractual arrangements entered
into and the definitions of a financial liability and an
equity instrument.
(b) Equity instruments:
An equity instrument is any contract that evidences
a residual interest in the assets of the Company after
deducting all of its liabilities. Equity instruments are
recorded at the proceeds received, net of direct issue
costs. Repurchase of the Company's own equity
instruments is recognized and deducted directly in
equity. No gain or loss is recognized in profit or loss
on the purchase, sale, issue or cancellation of the
Company's own equity instruments.
(c) Financial Liabilities at FVTPL:
Financial liabilities are classified as at FVTPL when
the financial liability is either held for trading or it is
designated as at FVTPL.
A financial liability is classified as held for trading if:
• it has been incurred principally for the purpose of
repurchasing it in the near term; or
• on initial recognition it is part of a portfolio of
identified financial instruments that the
Company manages together and has a recent
actual pattern of short-term profit-taking;
A financial liability other than a financial liability held
for trading may be designated as at FVTPL upon
initial recognition if:
• such designation eliminates or significantly
reduces a measurement or recognition
inconsistency that would otherwise arise; or
• the financial liability forms part of a group of
financial assets or financial liabilities or both,
which is managed and its performance is
evaluated on a fair value basis, in accordance
with the Company's documented risk
management or investment strategy, and
information about the grouping is provided
internally on that basis;
(d) Financial liabilities subsequently measured at
amortized cost:
Financial liabilities that are not held-for-trading and
are not designated as at FVTPL are measured at
amortized cost at the end of subsequent accounting
periods. The carrying amounts of financial liabilities
that are subsequently measured at amortized cost
are determined based on the effective interest
method. Interest expense that is not capitalized as
part of costs of an asset is included in the ‘finance
costs' line item.
The effective interest method is a method of
calculating the amortized cost of a financial liability
and of allocating interest expense over the relevant
period. The effective interest rate is the rate that
exactly discounts estimated future cash payments
(including all fees and points paid or received that
form an integral part of the effective interest rate,
transaction costs and other premiums or discounts)
through the expected life of the financial liability,
or (where appropriate) a shorter period, to the net
carrying amount on initial recognition.
(e) Foreign exchange gains and losses:
For financial liabilities that are denominated in a
foreign currency and measured at amortized cost
at the end of each reporting period, the foreign
exchange gains and losses are determined based on
amortized cost of the instruments and are recognized
in the Statement of Profit and Loss.
The fair value of the financial liabilities denominated
in a foreign currency is determined in that foreign
currency and translated at the spot rate at the end of
the reporting period. For financial liabilities that are
measured at FVTPL, the foreign exchange component
forms part of the fair value gains or losses recognized
in the Statement of profit and Loss.
(f) Derecognition of financial liabilities:
The Company derecognizes financial liabilities when,
and only when, the Company's obligations are
discharged, cancelled or they expire. The difference
between the carrying amount of the financial
liability derecognized and the consideration paid and
payable is recognized in the Statement of Profit and
Loss.
3.28 Goods & Service Tax Input Credit
Goods & Service Tax Input Credit is accounted for in
the books during the period in which the underlying
service received is accounted and where there is no
uncertainty in availing/utilizing the same.
3.29 Exceptional Items
Exceptional items are items of income and expenses
which are of such size, nature or incidence that
their separate disclosure is relevant to explain the
performance of the Company.
3.30 Share Based Payments :
The Company is covered under the employee
stock option scheme of Dr. Agarwal's Health Care
Limited, India (the holding company). Under the
plan, the employees and doctors of the Company
are granted shares and other stock awards of the
holding company, in accordance with the terms
and conditions as specified in the plan. The plan is
assessed, managed and administered by the holding
company, whose shares and share based benefits
have been granted to the employees and doctors
of the Company. The holding company currently
operates the plan / scheme of employee stock
option ("ESOP"). The Company has accounted for the
amount of expense under Ind AS 102 considering the
invoice received from the holding company taking
into account the valuation carried out in respect of the
same and has made the related disclosures required
under INDAS 102 based on information obtained from
the holding company (Refer Note 46)
ESOPs:Equity settled share based payments to the
employees of the company are measured at the fair
value of the equity instruments at the grant date.
Compensation expense for the Employee Stock
Option Plan ("ESOP") is measured at the option value
as on grant date and the cost of the option will be
amortised on a systematic basis which reflects
pattern of the vesting of the options over the period
of 4 years (Refer Note 46.2).
SARs: Cash settled share based payments to the
doctors of the company is remeasured at the value
of option at the end of every reporting period.
Compensation expense for the Share Appreciation
Rights ("SAR") will be accounted at every reporting
date till the date of exercise of the SARs based on the
information provided by the holding company (Refer
Note 46.3).
Critical Accounting Judgements
04 and Key Sources of Estimation
I Uncertainty ith
Ind AS requires management to make judgements, The
preparation of Financial Statements in conformity with Ind
AS requires management to make judgements, estimates
and assumptions that affect the application of accounting
policies and the reported amounts of assets, liabilities,
income and expenses and the accompanying disclosures.
Uncertainty about the assumptions and estimates could
result in outcomes that require a material adjustment to
the carrying value of assets or liabilities affected in future
periods.
Estimates and underlying assumptions are reviewed on
an ongoing basis. Revisions to accounting estimates are
recognized in the period in which the estimates are revised
and future periods are affected.
In particular, information about significant areas of
estimation, uncertainty and critical judgments in applying
accounting policies that have the most significant effect
on the amounts recognized in the financial statements are
included in the following notes:
(i) Useful lives of Property, plant and equipment
(Refer Note 3.9)
(ii) Useful lives of Intangible Asset (Refer Note 3.11)
(iii) Valuation of Goodwill and Intangible Assets on
Business combination (Refer Note 3.8)
(iv) Impairment of Goodwill (Refer Note 3.14)
(v) Assets and obligations relating to employee
benefits (Refer Note 3.18)
(vi) Valuation and measurement of income taxes and
deferred taxes (Refer Note 3.24)
(vii) Provisions for disputed statutory and other
matters (Refer Note 3.25)
(viii) Allowance for expected credit losses (Refer
Note 3.27.1(e))
(ix) Fair value of Financial Assets and Liabilities (Refer
Note 3.27.1 and 3.27.2)
(x) Lease Term of Leases entered by the Company
(Refer Note 3.22)
Determination of functional currency:
Currency of the primary economic environment in which
the Company operates ("the functional currency") is Indian
Rupee (?) in which the company primarily generates and
expends cash. Accordingly, the Management has assessed
its functional currency to be Indian Rupee (').
8.1 Particulars of business combinations accounted by the company
The Company accounts for business combinations using the acquisition method of accounting. This method requires
the application of fair values for both the consideration given and the assets and liabilities acquired. The calculation of
fair values is often dependent on estimates and judgments including future cash flows discounted at an appropriate
rate to reflect the risk inherent in the acquired assets and liabilities (refer to Note below, Acquisition of Businesses for
details of business combinations).
During the current year, the Company had the below business combinations primarily comprising acquisition of "Eye
Hospitals" on a going concern basis. These business combinations involved acquisition of the Eye Hospitals from the
Doctors and did not involve share acquisitions in any other entities. As part of the acquisition, the Company acquired
the assets, liabilities, employees etc. as determined pursuant to the acquisition agreements and also continuity of
the acquiree Doctors who are also covered by a non-compete and have entered into a service contract to provided
services to the Company. There are no non-controlling interests in the business combinations entered during the year.
The details of the eligible/identifiable assets and liabilities have been furnished below. The resultant goodwill on such
8.3 Impairment testing
Goodwill balances have been tested for impairment at every reporting period as per the requirements of Ind AS 36. The
key assumptions used by management in setting the cash flow projections/budgets for the initial five-year period
were as follows:
Forecast sales growth rates
Forecast sales growth rates are based on past experience adjusted for adjusting the market trends, loyalty/reputation
of the doctor practitioners, geographical location and the strategic decisions made in respect of the cash-generating
unit.
Operating profits
Operating profits are forecast based on historical experience of operating margins, adjusted for the impact of cost
saving due to synergies and initiatives and also revenue pricing changes.
Cash conversion
Cash conversion is the ratio of operating cash flow to operating profit. Management forecasts cash conversion rates
based on historical experience.
Cash flow projections during the budget period are based on the same expected gross margins and inventory price
inflation throughout the budget period. The cash flows beyond five-year period have been extrapolated using a 3.5%
(2023-24: 3.5%) per annum growth rate which is the projected long-term average growth rate. Discount rate of 16.34%
to 17.29% (2023-24: 16.79% to 17.97%) determined using Capital Asset Pricing Model.
15.3 Credit period and risk
Significant portion of the Company's business is against receipt of cash settled near to the time of sale/service. Credit
is provided mainly to Insurance Companies, Corporate customers and customers covered by Government accorded
health benefits. The Insurance Companies are required to maintain minimum reserve levels and pre-approve the
insurance claim, Government undertakings and the Corporate Customers are enterprises with high credit ratings.
Accordingly, the Company's exposure to credit risk in relation to trade receivables is low.
Trade receivables are non-interest bearing and are generally due immediately when the invoice is raised. Of the Trade
Receivable as at 31st March 2025, Rs. 10.39 Crores (As at 31st March 2024: Rs.12.78 crores) are due from 7 (as at 31 March
2024: 6) of the Company's customers i.e. having more than 5% of the total outstanding trade receivable balance.
There are no other customers who represent more than 5% of the total balance of trade receivables.
No trade receivable are due from directors or other officers of the Company either severally or jointly with any other
person. Nor any trade receivable are due from firms or private companies respectively in which any director is a
partner, a director or a member.
15.4 Expected credit loss allowance
The Company has used a practical expedient by computing the expected loss allowance for trade receivables based
on provision matrix. The provision matrix takes into account the historical credit loss experience and adjustments for
forward looking information. The expected credit loss allowance is based on the ageing of the days the receivables are
due and the rates as given in the provision matrix, considering the amounts due from the government undertakings
and the other undertakings.
Notes 22.1(a)
(a) Security
(i) Axis bank Term Loan and Overdraft facilit
The details of Security provided are as
follows:
Primary Security
1. Hypothecation of the entire current assets of the
company.(applicable for overdraft facility)
2. Hypothecation of entire movable fixed assets.
3. Paripassu charge (with HDFC Limited for a loan taken
by Dr. Agarwal Eye Institute) on the landed property
of 9.68 grounds belonging to Dr Agarwal Eye Institute
and proposed building to be constructed there on at
No. 19, Cathedral Road, Gopalapuram, Chennai, 600086.
(applicable for Term Loan 2)
Collateral Security
Collateral Security common for all facilities
1. Paripassu charge (with HDFC Limited for a loan taken
by Dr. Agarwal Eye Institute) on the landed property
of 9.68 grounds belonging to Dr Agarwal Eye Institute
and proposed building to be constructed there on at
No. 19, Cathedral Road, Gopalapuram, Chennai, 600086.
(applicable for Term loan 1)
2. Hypothecation of the entire current assets of the
company.(applicable for other than overdraft facility)
Personal/ Corporate Guarantor
1. Personal Guarantees of Dr. Amar Agarwal, Dr. Athiya
Agarwal, Dr. Adil Agarwal, Dr. Anosh Agarwal, Dr. Ashar
Agarwal, Dr. Ashvin Agarwal, Dr and Dr. Agarwal Eye
Institute (applicable for Term Loan 1 above)
2. Personal Guarantees of Dr. Amar Agarwal, Dr. Athiya
Agarwal, Dr. Adil Agarwal, Dr. Anosh Agarwal, Dr. Ashar
Agarwal, Dr. Ashvin Agarwal, Dr. Agarwal's Health Care
Limited and Dr. Agarwal Eye Institute (applicable for
Term Loan 2 above)
(i) The Government of India under "Emergency Credit
Line Guaranteed Scheme (ECLGS) has directed the
banks to provide Guaranteed emergency Credit Line
(GECL) by way of working capital term loan (WCTL)
Note: The services are rendered to various patients and there are no patients who represent more than 10% of the total
revenue. However, the Hospital also serves patients who are covered under insurance/health schemes run by insurance
companies, corporates and the central/state government agencies, wherein the services rendered to the patient is on
credit to be reimbursed by the said insurance company, corporate or government agency.
32.2 Trade receivables and contract balances
The Company classifies the right to consideration in exchange for deliverables as receivable. A receivable is a right to
consideration that is unconditional upon passage of time. Revenue is recognized as and when the related goods / services
are delivered / performed to the customer. Trade receivable are presented net of impairment in the Balance Sheet.
Contract liabilities include payments received in advance of performance under the contract, and are realized with the
associated revenue recognized under the contract.
32.3 Performance obligations and remaining performance obligations
The remaining performance obligation disclosure provides the aggregate amount of the transaction price yet to be
recognised as at the end of the reporting period and an explanation as to when the Company expects to recognise these
amounts in revenue. Applying the practical expedient as given in IND AS - 115, the Company has not disclosed information
about remaining performance obligations in contracts where the original contract duration is one year or less or where
the entity has the right to consideration that corresponds directly with the value of entity's performance completed to
date.
(h) Asset-Liability Matching Strategies
The Company has purchased insurance policy, which is basically a year-on-year cash accumulation plan in which the
interest rate is declared on yearly basis and is guaranteed for a period of one year. The insurance Company, as part of the
policy rules, makes payment of all gratuity liability occurring during the year (subject to sufficiency of funds under the
policy). The policy, thus, mitigates the liquidity risk. However, being a cash accumulation plan, the duration of assets is
shorter compared to the duration of liabilities. Thus, The Company is exposed to movement in interest rate.
(i) Effect of Plan on Entity's Future Cash Flows
a) Funding Arrangements and Funding Policy
-The Company has purchased an insurance policy to provide for payment of gratuity to the employees. Every year,
the insurance Company carries out a funding valuation based on the latest employee data provided by the Company.
Any deficit in the assets arising as a result of such valuation is funded by the Company.
b) The weighted average duration of the benefit obligation at 31st March 2025 is 3.55 years (as at 31st March 2024 is
3.84 years).
43 Segment reporting (Amount in INR Crores)
The company is engaged in providing eye care and related services provided from its hospitals which are located in India.
Based on the "management approach" as defined in Ind-AS 108 - Operating Segments, the Chief Operating Decision Maker
(CODM) evaluates the company's performance and allocates resources based on an analysis of various performance
indicators by the overall business segment, i.e. Eye care related sales and services.
As the allocation of resources and profitability of the business is evaluated by the CODM on an overall basis, with evaluation
into individual categories to understand the reasons for variations, no separate segments have been identified. Accordingly
no additional disclosure has been made for the segmental revenue, segmental results and the segmental assets & liabilities.
All of the Company's current assets and fixed assets are in India.
doctors of the Company. The holding company currently operates an employee stock option ("ESOP") . The Company has
accounted for the amount of expense under Ind AS 102 considering the invoice received from the holding company and has
made the related disclosures required under INDAS 102 based on information obtained from the holding company.
46.2 ESOP
The stock awards granted generally vest over a four yesr service period. The annual stock awards are granted effective of
the 28th November 2022; this effective date is the "award date" used for stock plan administration purposes and shown
in the awards agreement. [The maximum number of shares in a stock award is, not exceeding 2% of the Paid Up Capital of
the Holding Company, as on 12th August 2022, comprising 1,58,522 Options to or for the benefit of the employees of the
Group.]
46.3 SAR
The Share Appreciation Rights (SAR) gives consultant doctors of the Company the opportunity to receive a cash bonus
equal to the appreciation in the value of the units which shall, for each unit, be the difference between fair market value
of the equity shares as at payment event trigger(PET) of Dr. Agarwal's Health Care Limited (the holding company) and
excercise price as stated under the Plan.
*PET is defined as either 1 of the 3 below:
i. On the occurrence of an Initial Public Offer (IPO) by the holding company
ii. Entry of any new investor in the holding company acquiring more than 30% shareholding or change of shareholding by
more than 30% of the paid up capital in any manner.
iii. Any other event that the Board may decide at its own discretion.
However, the payment timing shall not exceed 4 (four) years from the date of grant. If PET occurred only after 4 (four)
years from the date of grant, then the 100% of the payment will be made at the end of the fourth year.
The management assessed that fair value of cash and cash equivalents, trade receivables, loans, borrowings, trade
payables and other current financial assets and liabilities approximate their carrying amounts largely due to the short-term
maturities of these instruments.
The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in
a current transaction between willing parties, other than in a forced or liquidation sale.
The following methods and assumptions were used to estimate the fair value/amortized cost
(i) Long-term fixed-rate receivables/borrowings are evaluated by the Company based on parameters such as interest
rates, specific country risk factors, individual losses and creditworthiness of the receivables
(ii) The fair value of unquoted instruments, loans from banks and other financial liabilities, as well as other non-current
financial liabilities are estimated by discounting future cash flows using rates currently available for debt on similar
terms, credit risk and remaining maturities. In addition to being sensitive to a reasonably possible change in the
forecast cash flows or discount rate, the fair value of the unquoted instruments is also sensitive to a reasonably
possible change in the growth rates. The valuation requires management to use unobservable inputs in the model, of
which the significant unobservable inputs are disclosed in the tables below. Management regularly assesses a range
of reasonably possible alternatives for those significant unobservable inputs and determines their impact on the total
fair value.
There have been no transfers between the levels during the year. The management assessed that cash and cash
equivalents, bank balances other than cash and cash equivalents, trade receivables, trade payables, bank overdrafts,
borrowings, other financial assets, loans and Other financial liabilities approximate their carrying amounts largely due to
the short-term maturities of these instruments.
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 or indirectly.
Level 3: Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).
Details of financial assets and financial liabilities which were valued at fair value as of 31st March 2025 and 31st March 2024
are disclosed in Note 48.2
Financial risk management framework
The Company's board of directors have overall responsibility for the establishment and oversight of the Company's risk
management framework. The Company manages financial risk relating to the operations through internal risk reports
which analyze exposure by degree and magnitude of risk. The Company's activities expose it to a variety of financial
risks: liquidity risk, credit risk and market risk (including interest rate risk and other price risk). The Company's primary risk
management focus is to minimize potential adverse effects of market risk on its financial performance. The Company's
risk management assessment and policies and processes are established to identify and analyze the risks faced by the
Company, to set appropriate risk limits and controls, and to monitor risks and compliance with the same. Risk assessment
and management policies and processes are reviewed regularly to reflect changes in market conditions and the Company's
activities. The Board of Directors and the Audit Committee is responsible for overseeing the Company's risk assessment
and management policies and processes.
(a) Liquidity Risk Management :
Liquidity risk refers to the risk that the Company cannot 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, under both normal and stressed conditions, without incurring unacceptable losses or risk
to the Company's reputation. The Company maintains adequate reserves and banking facilities, and continuously
monitors the forecast and actual cash flows by matching maturing profiles of financial assets and financial liabilities
in accordance with the approved risk management policy of the Company periodically.
Liquidity and Interest Risk Tables :
The following tables detail the Company's remaining contractual maturity for its non-derivative financial liabilities with
agreed repayment periods. The tables include both interest and principal cash flows.
To the extent that interest flows are floating rate, the undiscounted amount is derived from interest rate curves at the end
of the reporting period. The contractual maturity is based on the earliest date on which the Company may be required to
pay.
(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. Credit risk encompasses of both, the direct risk of default and the risk of deterioration
of creditworthiness as well as concentration of risks. Financial instruments that are subject to concentrations of
credit risk principally consist of trade receivables, cash and cash equivalents, bank deposits and other financial assets.
None of the other financial instruments of the Company result in material concentration of credit risk. Credit risk is
controlled by analyzing credit limits and creditworthiness of customers on a continuous basis to whom the credit has
been granted after obtaining necessary approvals for credit. The carrying amount of the financial assets recorded in
these financial statements, grossed up for any allowance for losses, represents the maximum exposures to credit risk.
Trade receivables:
The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer. The
demographics of the customer, including the default risk of the industry and credit history, also has an influence on credit
risk assessment.
Refer Note 32 and Note 15 for the details in respect of revenue and receivable from top customers.
Credit risk on current investments and cash & cash equivalent is limited as the Company generally transacts with banks
and financial institutions with high credit ratings assigned by international and domestic credit rating agencies.
(c) Market Risk :
Market risk is the risk of loss of any future earnings, in realizable fair values or in future cash flows that may result
from adverse changes in market rates and prices (such as interest rates and foreign currency exchange rates) or in the
price of market risk sensitive instruments as a result of such adverse changes in market rates and prices. Market risk
is attributable to all market risk-sensitive financial instruments, all foreign currency receivables and payables and all
short-term and long-term debt.
(c.1) Interest rate risk: Interest rate risk is the risk that the fair value or future cash flows of a financial instrument
will fluctuate because of changes in market interest rates. The Company's exposure to the risk of changes in market
interest rates relates primarily to the Company's debt obligations with floating interest rates.
The Company's management monitors the interest fluctuations, if any, and accordingly, take necessary steps to
mitigate any interest rate risk.
51 Undisclosed Income
The Company does not have any transaction which are not recorded in the books of account that has been surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.
52 Transactions with companies whose name is struck-off
The company has not entered into any transactions with entities whose name has been struck off under Section 248 of the
Act or section 560 of Companies Act, 2013 as at 31st March 2025.
53 Audit Trail & Backup of accounting records
(i) The Company has used accounting software for maintaining its books of account for the year ended 31st March 2025
which have a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all
relevant transactions recorded in the software systems.The audit trail feature is not tampered with and the audit
trail has been preserved by the Company as per the statutory requirements for record retention for the software
systems where the audit trail was enabled and operating.
(ii) The Company has maintained backup on daily basis in electronic mode of its accounting records in servers physically
located outside India and other records (related to payroll and patient billing related records) in servers physically
located in India for the year ended 31st March 2025 and 31st March 2024.
54 Other disclosures
(i) The company has used the borrowings from banks and financial institutions for the specific purpose for which it was
taken at the balance sheet date.
(ii) The Company neither has any owned immovable property nor any title deeds of owned Immovable Property not
held in the name of the Company.
(iii) During the financial year, the Company has not revalued any of its Property, Plant and Equipment, Right of Use Asset
and Intangible Assets.
(iv) The Company has not granted any Loans or Advances to promoters, directors, KMPs and the related
parties (as defined under Companies Act, 2013,) either severally or jointly with any other person, that are:
(a) repayable on demand or (b) without specifying any terms or period of repayment
(v) The Company does not have any intangible assets under development as at 31st March 2025 and 31st March 2024,
and hence disclosure under Schedule III is not applicable.
(vi) There are no proceedings which have been initiated or pending against the company as at 31st March 2025 and 31st
March 2024 for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and
the rules made thereunder.
(vii) The Company has not been sanctioned working capital limits in excess of INR 5 crores, in aggregate, at any point of
time during the year from banks or financial institutions on the basis of security of assets. Hence , the Company is
not required to file quarterly returns or statement of current assets with banks or financial institutions.
(viii) The Company has not been declared as a wilful defaulter by any bank or financial Institution or other lender.
(ix) The Company does not have any charges or satisfaction yet to be registered with ROC beyond the statutory period,
as at the year ended 31st March 2025 and 31st march 2024.
(x) As at 31st March 2025, the Company has no subsidiaries and hence clause (87) of Section 2 of the Companies Act, 2013
read with the Companies (Restriction on number of Layers) Rules, 2017 not applicable.
(xi) The company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other
sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the
understanding (whether recorded in writing or otherwise) that the Intermediary shall :-
(i) 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
(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
(xii) 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:-
(i) 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
(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries
(xiii) The Company neither has traded nor invested in Crypto currency or Virtual Currency during the Financial year.
(xiv) The Company does not have any investment properties as at 31st March 2025 and 31st March 2024 as defined in Ind
AS 40.
55 Approval of Financial Statements
The Board of Directors of the Company has reviewed the realizable value of all the current assets and has confirmed that
the value of such assets in the ordinary course of business will not be less that the value at which these are recognized
in the financial statements. In addition, the Board has also confirmed the carrying value of the non-current assets in the
financial statements. The Board, duly taking into account all the relevant disclosures made, has approved these financial
statements in its meeting held on 28th May 2025.
56 Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's
classification /disclosure.
For and on behalf of Board of Directors
sd/- sd/- sd/-
R. Prasanna Venkatesh Dr. Amar Agarwal Dr. Athiya Agarwal
Partner Chairman & Managing Director Wholetime Director
Membership No. 214045 DIN: 00435684 DIN: 01365659
Place : Chennai Place: Chennai Place: Chennai
Date: 28 May, 2025 Date: 28 May, 2025 Date: 28 May, 2025
sd/- sd/-
Mr. Yashwanth Venkat Ms. Meenakshi Jayaraman
Chief Financial Officer Company Secretary
Place : Chennai Place : Chennai
Date: 28 May, 2025 Date: 28 May, 2025
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