5.17 Provisions, contingent liabilities and contingent
assets

Provisions are recognized when the Company has a
present (legal or constructive) obligation as a result
of past events, for which it is probable that an outflow
of resources will be required to settle the obligation
and a reliable estimate of the amount can be made.
Provisions required to settle are reviewed regularly
and are adjusted where necessary to reflect the
current best estimates of the obligation. Provisions
are discounted to their present values, where the
time value of money is material.

Contingent liability is disclosed unless the likelihood
of an outflow of resources is remote and there is a
possible obligation or a present obligation that may,
but probably will not, require an outflow of resources.

Contingent assets are disclosed only when inflow
of economic benefits therefrom is probable and
recognized only when realization of income is
virtually certain.

5.18 Earnings per share

Basic earnings per share is calculated by dividing
the net profit or loss for the period attributable to
equity shareholders (after deducting attributable
taxes) by the weighted average number of
equity shares outstanding during the period.

The weighted average number of equity shares
outstanding during the period is adjusted for events
including a bonus issue.

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

5.19 Rounding of amounts

All amounts disclosed in the financial statements
and notes have been rounded off to the nearest
millions and upto two decimals as per the
requirement of Division II of Schedule III, unless
otherwise stated.

5.20Critical estimates and judgements

The preparation of financial statements requires the
use of accounting estimates which, by definition,
will seldom equal the actual results. Management
also needs to exercise judgement in applying the
Company’s accounting policies. This note provides
an overview of the areas that involved a higher
degree of judgement or complexity, and of items
which are more likely to be materially adjusted due
to estimates and assumptions turning out to be
different than those originally assessed. Detailed
information about each of these estimates and
judgements is included in relevant notes together
with information about the basis of calculation for
each affected line item in the financial statements.

I. Judgements

In the process of applying the Company’s
accounting policies, management has made
the following judgements, which have the
most significant effect on the amounts
recognised in the financial statements.

a) Contingent liabilities - At each balance
sheet date basis the management
judgment, changes in facts and legal
aspects, the Company assesses the
requirement of provisions against
the outstanding contingent liabilities.
However, the actual future outcome may
be different from this judgement.

b) Leases - The Company evaluates if an
arrangement qualifies to be a lease
as per the requirements of Ind AS 116.
Identification of a lease requires significant
judgment. The Company uses significant

judgement in assessing the lease term
(including anticipated renewals) and the
applicable discount rate. The Company
determines the lease term as the non¬
cancellable 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 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 a lease.

II. Estimates

a) Evaluation of indicators for impairment
of non-financial assets - The evaluation
of applicability of indicators of impairment
of assets requires assessment of several
external and internal factors which could
result in deterioration of recoverable
amount of the assets.

b) Impairment of financial assets - At

each balance sheet date, based on
historical default rates observed over
expected life, existing market conditions
as well as forward looking estimates, the
management assesses the expected
credit losses on outstanding receivables.
Further, management also considers the
factors that may influence the credit risk
of its customer base, including the default
risk associated with industry and country
in which the customer operates

c) Defined benefit obligation (DBO) -

Management’s estimate of the DBO
is based on a number of underlying
assumptions such as standard rates of
inflation, mortality, discount rate and
anticipation of future salary increases.
Variation in these assumptions may
significantly impact the DBO amount and
the annual defined benefit expenses.

d) Useful lives of depreciable/amortisable
assets - Management reviews its
estimate of the useful lives of depreciable/
amortisable assets at each reporting date,
based on the expected utility of the assets.
Uncertainties in these estimates relate
to technical and economic obsolescence
that may change the utilisation of assets.

Estimates and judgements are continuously
evaluated. They are based on historical
experience and other factors including
expectation of future events that may have
a financial impact on the Company and
that are believed to be reasonable under
the circumstances.

5.21 Exceptional items

Exceptional items are those items which meet the
test of ‘materiality’ (size and nature) and the test of
‘incidence’. The test of incidence or the frequency
of occurrence should be determined basis specific
facts and circumstances of entity concerned,
considering various factors, such as, the nature of
its activities, the economic environment in which
it operates, past experience, future expectations,
etc. and not in general, as what could be a frequent
item for one entity may be infrequent for other.

Generally, items of income or expense fulfilling
the above-mentioned criteria are classified as
exceptional items and are disclosed separately.

Nature and purpose of other reserves

Capital reserve

Capital reserve represents difference between share capital of transferor entity and share capital issued to erstwhile
shareholders of transferor entity.

Securities premium

Securities premium represents the premium on issue of shares. This balance can be utilised in accordance with
provisions of the Act.

Share options outstanding account

This account is used to recognise the grant date fair value of the options issued to eligible employees pursuant to
the Company’s employee stock option plan.

Debenture redemption reserve

This reserve is created as per the requirements of the Act in reference to non-convertible debentures issued
by the Company.

(a) The Company has used the borrowings from banks for the specific purpose for which it was taken at the
balance sheet date.

(b) Refer note 48F for the details related to quarterly returns/statements of current assets filed by the Company
with banks in relation to secured borrowings.

(c) Refer note 39(c) for the details of undrawn facility.

(d) This represents liability for medical equipments purchased on deferred payment terms to be repaid
from January 2026.

(e) Refer note 50 for assets pledged.

(a) The costs that are directly attributable to the acquisition or construction of property, plant and equipment has
been capitalised during the respective years, refer note 6A(v).

(b) This includes salary expense of employees working for research and development amounting to H 39.25 millions
(31 March 2025: H 30.16 millions).

(c) This includes commission and sitting fees paid to directors of the Company amounting to H 23.48 millions (31
March 2025: H 21.36 millions).

(d) Refer note 40 for related party transactions.

a. During the year ended 31 March 2026, the Company reversed interest liability on EPCG amounting to H 195.92
millions. Pursuant to the filing of merger order with Registrar of Companies (ROC), the EPCG licenses have
been transferred from Medanta Holdings Private Limited to the Company. The Company has achieved the
required export obligation within the prescribed timeline.

b. “During the year ended 31 March 2025, stamp duty was payable in connection with the merger of Medanta
Holdings Private Limited with the Company.

Subsequently, during the year ended 31 March 2026, the Company reversed stamp duty amounting to H 159.85
millions payable to Government of National Capital Territory of Delhi, pursuant to adjudication of its stamp
duty application.”

c. On 21 November 2025, the Government of India notified the four Labour Codes—namely, 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—thereby consolidating 29 existing labour laws. To facilitate the assessment
of the financial impact arising from these regulatory changes, the Ministry of Labour & Employment issued
Central Rules and related FAQs.

The Company has evaluated and disclosed the incremental impact of these changes based on expert input and
the best information available, in line with the guidance provided by the Institute of Chartered Accountants
of India. Given the material, regulatory-driven, and non-recurring nature of this impact, the Company has
presented such incremental impact, aggregating to H352.00 millions under ‘Exceptional items’.

The Company continues to monitor the finalisation of the Central and State Rules and any further government
clarifications on other aspects of the Labour Codes, and will record the accounting treatment as required based
on future developments.

37 Earnings per share (EPS)

Earnings per share (‘EPS’) is determined based on the net profit/loss attributable to the shareholders. Basic earnings
per share is computed using the weighted average number of shares outstanding during the year. Diluted earnings
per share is computed using the weighted average number of common and dilutive common equivalent shares
outstanding during the year, except where the result would be anti-dilutive.

38 Fair value disclosures
(i) Fair value hierarchy

The following explains the judgements and estimates made in determining the fair values of the financial
instruments. To provide an indication about the reliability of the inputs used in determining fair value, the
Company has classified its financial instruments into the three levels prescribed under the accounting standard.

Level 1: quoted prices (unadjusted) in active markets for financial instruments.

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: unobservable inputs for the asset or liability.

Valuation techniques used to determine fair value

The fair value of the financial assets and liabilities are included at the amount that would be received to sell
an asset and paid to transfer a liability in an orderly transaction between market participants. The following
methods were used to estimate the fair values:¬
- I nvestment: Approximate its carrying amount as the underlying objective of this investment is not to

earn the profits.

- Trade receivables, cash and cash equivalents, other bank balances, other current financial assets, trade
payables and other current financial liabilities: Approximate their carrying amounts largely due to the
short-term maturities of these instruments.

- Borrowings taken by the Company are as per the Company’s credit and liquidity risk assessment and there
is no comparable instrument having the similar terms and conditions with related security being pledged
and hence the carrying value of the borrowings represents the best estimate of fair value.

characteristics of each financial asset. The carrying amounts of financial assets represents the maximum
credit risk exposure.

A default on a financial asset is when the counterparty fails to make contractual payments as per agreed terms.
This definition of default is determined by considering the business environment in which entity operates and
other macro-economic factors.

The Company has a credit risk management policy in place to limit credit losses due to non-performance of
counterparties. The Company monitors its exposure to credit risk on an ongoing basis. Assets are written off
when there is no reasonable expectation of recovery. Where loans and receivables are written off, the Company
continues to engage in enforcement activity to attempt to recover the dues.

Trade receivables

The Company closely monitors the credit-worthiness of the receivables through internal systems that are
configured to define credit limits of customers, thereby, limiting the credit risk to pre-calculated amounts. The
Company uses a simplified approach (lifetime expected credit loss model) for the purpose of computation of
expected credit loss for trade receivables. Expected credit losses are measured on collective basis for each of the
following categories :

39 Financial risk management

The Company has exposure to the following risks arising from financial instruments:

• Credit risk ;

• Liquidity risk ;

• Market risk

Risk management framework

The Company’s board of directors has overall responsibility for the establishment and oversight of the Company’s risk
management framework. The board of directors have authorized the Managing Director to establish the processes,
who ensures that executive management controls risks through the mechanism of properly defined framework.

The Company’s risk management policies are established to identify and analyse the risks faced by the Company,
to set appropriate risks limits and controls, and to monitor risks and adherence to limits. Risk management policies
are reviewed regularly to reflect changes in market conditions and the Company’s activities. The Company, through
its training and management standards and procedures, aims to maintain a disciplined and constructive control
environment in which all employees understand their roles and obligations.

(a) Credit risk

i) Credit risk management

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial asset fails to
meet its contractual obligations. The Company’s exposure to credit risk is influenced mainly by the individual

Cash and cash equivalents and other bank balances

Credit risk related to cash and cash equivalents and bank deposits is managed by only investing in deposits with
highly rated banks and financial institutions and diversifying bank deposits and accounts in different banks.
Credit risk is considered low because the Company deals with highly rated banks and financial institution.

Loans

Loans are measured at amortised cost includes loans given to subsidiaries. Credit risk related to these financial
assets is managed by monitoring the recoverability of such amounts continuously, while at the same time
internal control system are in place to ensure the amounts are within defined limits Credit risk is considered
low because the Company is in possession of the underlying asset and these are given to related parties. A
significant increase in credit risk is presumed if a counterparty is more than 30 days past due in making a
contractual payment.

Other financial assets

Other financial assets measured at amortized cost includes security deposits and other receivables. Credit risk
related to these financial assets is managed by monitoring the recoverability of such amounts continuously,
while at the same time internal control system are in place to ensure the amounts are within defined limits.
Credit risk is considered low because the Company is in possession of the underlying asset (in case of security
deposit) or as per trade experience (in case of unbilled revenue from patient and other receivables from
revenue sharing arrangements). Further, the Company creates provision by assessing individual financial asset
for expectation of any credit loss basis 12 month expected credit loss model. A significant increase in credit risk
is presumed if a counterparty is more than 30 days past due in making a contractual payment.

(b) Credit risk exposure

i) Expected credit loss for trade receivables under simplified approach i.e. provision matrix approach using
historical trends.

(d) Market risk

(i) Foreign exchange risk

The Company has international transactions and is exposed to foreign exchange risk arising from foreign
currency transactions (imports and exports). Foreign exchange risk arises from future commercial transactions
and recognised assets and liabilities denominated in a currency that is not the Company’s functional currency.
The Company has not hedged its foreign exchange receivables and payables for the year ended 31 March 2026
and 31 March 2025.

41 Capital management

For the purpose of the Company’s capital management, capital includes issued equity capital, share premium and
all other reserves attributable to the equity holder. The primary objective of the Company’s capital management is
to maximize the shareholder value.

Management assesses the Company’s capital requirements in order to maintain an efficient overall financing
structure while avoiding excessive leverage. This takes into account the subordination levels of the Company’s
various classes of debt.

Notes:

a. All transactions with related parties are made on the terms equivalent to those that prevail in arm’s
length transactions and within the ordinary course of business.

b. All outstanding balances are unsecured and repayable/receivables will be settled in cash.

c. During the year ended 31 March 2026 the Company paid dividend to all its shareholders at H 0.50/- per
equity share of H 2/- each fully paid up and has not been disclosed above.

d. The above information has been determined to the extent such parties have been identified on the
basis of information available with the Company and relied upon by the auditors.

Notes:

(i) Income-tax matters are primarily around disallowances related to employee share based payment expense
and certain other expenses and are pending with Commissioner of Income-tax (Appeals).

(ii) The Company is contesting various medical/employee-related legal cases in various forums. The Company
has disclaimed the liability and is contesting the same. The Company has been advised by its legal counsel
that its position is likely to be upheld in the litigation process and accordingly no provision for any liability
has been made in the financial statement.

(iii) It is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above
pending resolution of the respective proceedings.

(iv) The amounts disclosed above represent the best possible estimates arrived at on the basis of available
information and do not include any penalty payable.

B Gratuity

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 per month computed proportionately for 15
days salary multiplied for the number of years of service.

ended 31 March 2025, the Board of Directors and the shareholders of the Company had approved the
cancellation of “Global Health Employee Stock Option Plan 2021”.

C) Global Health Limited (GHL) Employees Long Term Share Based Incentive Plan 2024 (GHL LTIP 2024 Plan)

Pursuant to the board meeting and shareholders meeting held on 14 November 2024 and 27 December
2024, respectively, the Company has implemented the Global Health Limited - Employees Long Term
Share Based Incentive Plan-2024 (“GHL LTIP 2024 Plan”), comprising an Employees Stock Option Scheme,
2024 (ESOS 2024) and an Employees Stock Purchase Scheme, 2024 (ESPS 2024), pursuant to the applicable
provisions of the Companies Act, 2013, SEBI (Share Based Employee Benefits and Sweat Equity) Regulations,
2021 and other applicable laws. The Plan is administered through a trust established by the Company and
is operated under the supervision of the Board of Directors / Nomination and Remuneration Committee.

4. The expense relating to ESOS 2024 has been recognized on a graded vesting basis in employee
benefit expense (refer note IV below).

5. The Company granted 10,000 options under Part A (ESOS 2024) of the scheme on 15 May 2025
(grant date), with an exercise price of H 2.00 per share having vesting period of 5 years as per
Schedule II, which subsequently lapsed during the year. Hence, the same has not been included
in the table (a) and (b) above.

Note:

The market price above is the closing market price as on the date of allotment as per the National
Stock Exchange of India Limited

(c) Pursuant to the Employee Stock Purchase Scheme (ESPS 2024), the Company has established
the GHL Employees Welfare Trust (refer note 5.16). The expense relating to ESPS 2024 has been
recognized on a graded vesting basis in employee benefit expense (refer note IV below).

Further, as equity shares under the ESPS are allotted to employees through the GHL Employees
Welfare Trust, the corresponding impact has been recognized in Other Equity, (including both
Securities Premium and Share Options Outstanding Account) (refer note 19).”

Note:

1. The fair value of options has been done using the Black-Scholes Option Pricing model.

2. The expected volatility has been calculated as an average of annual volatility of stock prices
of listed peer.

3. The risk free rates have been taken as continuously compounded risk-free rate as on the grant
date for the time to option’s maturity, in years from Indian treasury yield curve.

IV. Expense recognised in the statement of profit and loss

For details of employee benefit expense, refer note no. 31.

44 As per Ind AS 108 on “Operating Segments”, segment information has been provided under the note (refer note
50) to consolidated financial statements.

45A Research and development expenditure for the period ended 31 March 2025 includes consultant’s and specialist
honorarium amounting to H 0.14 millions (31 March 2025: H 0.54 millions) and salaries of employees amounting to H
39.25 millions (31 March 2025: H 30.16 millions).

45B The Board of Directors of the Company (“Board”) at its meeting held on 21 March 2024, had approved the
Scheme of amalgamation (“the Scheme”) of Medanta Holdings Private Limited (wholly-owned subsidiary) with the
Company, subject to all the necessary statutory / regulatory approvals.

The Scheme was approved by the Hon’ble National Company Law Tribunal (‘NCLT’) vide Order dated 20 February
2025 with appointed date being 01 April 2024. The Scheme became effective on 01 March 2025 upon filing of
the certified true copy of the Order with the Registrar of Companies, NCLT of Delhi & Haryana with effect from
appointed date.

Accordingly, during the year ended 31 March 2025 the Company has accounted for the business combination
transaction in accordance the accounting treatment prescribed by the Scheme which is consistent with the
principles of Appendix C of Ind AS 103 ‘Business Combinations under Common Control’. Pursuant to above, the
financial information for the year ended 31 March 2024 of the Company was restated.

47 Lease related disclosures as lessee
(i) As lessee

The Company has leases for land, buildings, equipments and vehicles. With the exception of short-term leases
and leases of low-value underlying assets, each lease is reflected on the balance sheet as a right-of-use asset
and a lease liability. Variable lease payments which do not depend on an index or a rate are excluded from the
initial measurement of the lease liability and right of use assets. The Company has presented its right-of-use
assets in the balance sheet separately from other assets.

Each lease generally imposes a restriction that, unless there is a contractual right for the Company to sublease
the asset to another party, the right-of-use asset can only be used by the Company. Some leases contain an
option to extend the lease for a further term. The Company is prohibited from selling or pledging the underlying
leased assets as security. For leases over buildings equipments, vehicles and land the Company must keep
those properties in a good state of repair and return the properties in their original condition at the end of the
lease. Further, the Company is required to pay maintenance fees in accordance with the lease contracts.

(viii) Net capital turnover ratio = Revenue from operations / working capital (refer point (F) below)

(ix) Net Profit Ratio = Net profit after taxes / revenue from operations

(x) Return on capital employed (ROCE) = Earning before exceptional items, interest and taxes / capital employed
(refer point (G) below)

(xi) Return on investment = Interest income on bank deposits / monthly average of bank deposits

Other explanatory points

(A) Total debt = Non-current borrowings Current borrowings

(B) Earning for Debt Service = Profit after tax Depreciation and amortisation expense Finance costs (excluding
interest on lease liabilities)

(C) Debt service = Interest expense (including capitalised) Principal repayment (including prepayments)

(D) Consumption = Costs of materials consumed Purchases of stock-in-trade Changes in inventories
of stock-in-trade

(E) Operating expenses = Purchases other expenses Retainers and consultants fee (Purchases = Pharmacy,
medical and laboratory consumables related to In patient services Pharmacy and medical consumables
related to sale of pharmacy products to out-patients)

(F) Working capital = Current assets - Current liabilities

(G) Capital Employed = Total assets - Current liabilities Current borrowings

Reasons for variance

Reasons have been disclosed where the changes are more than 25%

1. The debt-equity ratio increased primarily due to increase in borrowings during the year to support greenfield
projects. The change in % terms looks high as the ratio number are small.

2. The debt service coverage ratio improved mainly due to higher profitability and lower debt repayment
obligations during the year, resulting in improved debt servicing capacity.

Notes :

(i) Current ratio = Current assets/ current liabilities

(ii) Debt equity ratio = Total debt (refer point (A) below) / total equity

(iii) Debt service coverage ratio = Earnings available for debt service (refer point (B) below)/ debt service (refer
point (C) below)

(iv) Return on equity = Net profits after taxes / average total equity

(v) Inventory turnover ratio = Consumption (refer point (D) below) / average inventory

(vi) Trade receivables turnover ratio = Revenue from operations / average trade receivables

(vii) Trade payables turnover ratio = Operating expenses (refer point (E) below) / average trade payable

the year ended 31 March 2026, the Company has not enabled the feature of recording audit trail (edit log) at the
database level for the said accounting software to log any direct data changes. On account of recommendation in
the accounting software administration guide which states that enabling the same all the time consume storage
space on the disk and can impact database performance significantly, therefore, the same is not enabled.

52 Disclosure required under section 186(4) of the Companies Act, 2013

Particulars of loans given and investment made as required by sub-section (4) of Section 186 of the Companies Act,
2013, have been given under following schedules:

Loan schedule, refer note 9

Non-current investment schedule, refer note 8

53 Other statutory information

i The Company does not have any Benami Property, where any proceeding has been initiated or pending
against the Company.

ii The Company does not have any charges or satisfaction which is yet to be registered with Registrar of Companies
beyond the statutory period.

iii The Company has not traded or invested in crypto currency or virtual currency during the current year.

iv The Company has not advanced or loaned or invested funds to any person or any entity, 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 a or
on behalf of the Company (Ultimate Beneficiaries); or

(b) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

v The Company has not received any fund from any person or any entity, 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 a or
on behalf of the Funding Party (Ultimate Beneficiaries); or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

vi The Company does not have any transactions and outstanding balances during the current as well as
previous period with Companies struck off under section 248 of the Companies Act, 2013 or section 560 of
Companies Act, 1956.

vii The Company has not entered into any such transaction which is not recorded in the books of accounts that has
been surrendered or disclosed as income during the period 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.

viii The Company is not declared wilful defaulter by any bank or financial institution or government or any
government authority.

ix The Company has complied with the number of layers prescribed under the Companies Act, 2013.

x The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible
assets or both during the current period.

54 During the year ended 31 March 2026, the Company has executed definitive agreement to enter into built-to-
suit and lease arrangement with Shripal Hospitality LLP & others for 400 bed multi-specialty hospital in Varanasi,
Uttar Pradesh.

55 Subsequent events

a. Subsequent to year ended 31 March 2026, the Company executed a Business Transfer Agreement (BTA) with
Asian Institute of Oncology Private Limited for a 79 bedded Advanced Super Specialty Hospital primarily
engaged in providing oncology services in Indore.

b. The Board of Directors of the Company proposed a final dividend of H 0.50/- per equity share of H 2/- each fully
paid up for the financial year ended 31 March 2026, subject to approval of shareholders in the ensuing annual
general meeting.

56 Previous period figures have been regrouped/ reclassified to conform to the current period’s classification.