‘MedPlus Health Services Limited (formerly known as MedPlus Health Services Private Limited)
Annexure: V

‘Summary of Significant Accounting Policies

(All amounts are in Rs. i millions except as otherwise stated)

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Summary of significant accounting policies (continued)

Property, Plant and Equipment (continued)
Property, plant and equipment held for sale is valued at lower of their carrying amount and net realisable value. Any write-down is recognised in the consolidated statement
of profit and loss,

Depreciation

Depreciation on property, plant and equipment other than leaschold improvements is calculated on a straight-line basis using the following rates arrived at based on the
useful lives estimated by the management which coincide with the lives prescribed under the schedule II to the Companies Act, 2013, except for depreciation on Leasehold
Improvements:

 

 

 

“Asset dass Useful lives estimated by the management (years)
Buildings oo
Furniture and fixtures 10
Vehicles 80
Office equipment 5
Data Processing Equipment 36
Plant and equipment 5.10

 

Depreciation on leaschold improvements is provided over the lease term of 5 years, whichever is shorter, which Is higher than the rates prescribed under the schedule It
the Companies Act, 2013.

‘The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each fina

 

ial period year end and adjusted prospectively, if
appropriate,

Intangible assets
Intangibles

Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business combination is their fair value at the date
of acquisition. Following initial recognition, intangible assets are carried at cost less accumulated amortization and accumulated impairment losses, if any. Internally
generated intangibles, excluding capitalised development costs, are not capitalised and the related expenditure is reflected in profit or loss in the period in which the
expenditure is incurred.

Amortisation
‘The useful lives of intangible assets are assessed as either finite or indefinite.

Intangible assets of the Group represents having finite lives are amortised over the useful economic life and assessed for impairment whenever there is an indication that the
intangible asset may be impaired. The amortisation period and the amortisation method are reviewed at least at the end of each reporting period. Changes in the expected
useful life or the expected pattern of consumption of future economic benefits embodied in the asset are considered to modify the amortisation period or method, as
appropriate, and are treated as changes in accounting estimates. The amortisation expense on these intangible assets is recognised in the statement of profit and loss unless
such expenditure forms past of carrying value of another asset.

Intangible assets with indefinite useful lives are not amortised, but are tested for impairment annually, either individually or at the cash-generating unit level. The assessment
of indefinite life is reviewed annually to determine whether the indefinite life continues to be supportable. If not, the change in useful life from indefinite to finite is made on
a prospective basis

Gains or losses arising from de-recognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and
are recognised in the statement of profit and loss when the asset is derecognised.

Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended
use oF sale are capitalised as part of the cost of the asset. All other borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest and
other costs that an entity incurs in connection with the borrowing of funds.

Government Grants
Government grants, related to assets, are recognised in the Statement of Profit and Loss on a systematic basis over the periods in which the Company recognises the related.
costs for which the grants are intended to compensate,

Government grants related to income under State Investment Promotion Scheme linked with VAT / GST payment, are recognised in the Statement of Profit and Loss in the
period in which they become receivable,

Government grants are not recognised until there is reasonable assurance that the Company will comply with the conditions attached to them and that the grants will be
received,

Leases
A new lease standard ie, Ind AS 116 has been notified to be effective w.e£, April 1, 2019 which provide guidelines for the accounting of the lease contracts entered in the
capacity of a lessee and a lessor. For the purpose of preparation of Restated Consolidated Financial Information, the management has evaluated the impact of change in
accounting policies on adoption of Ind! AS 116 for the year ended March 31, 2019. Hence, in these Restated Consolidated Financial Information, Ind AS 116 has been adopted
with effect from April 1, 2018 following modified retrospective method with effect of initially applying this standard as an adjustment to the opening balance of retained
‘earnings on the date of initial application. The weighted average rate applied is 11.5%. The nature and effect of the changes as a result of adoption of Ind AS 116 is described
below.

Ind AS 116 supersedes Ind AS 17 Leases including its appendices (Appendix C of Ind AS 17 Determining whether an Arrangement contains a Lease, Appendix A of Ind AS
17 Operating Leases- Incentives and Appendix B of Ind AS 17 Evaluating the Substance of Transactions Involving the Legal Form of a Lease). The standard sets out the
principles for the recognition, measurement, presentation and disclosure of leases and requires lessees to recognise most leases on the balance sheet.

‘The Group has elected not to apply the requirements of Ind AS 116 "Leases" to short-term leases of all assets that have a lease term of 12 months of less and leases for which
the underlying asset is of low value. The lease payments associated with these leases are recognized as an expense on a straight-line basis over the lease term except inflation
adjustment.

 

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