‘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)
Impairment of Non-Financial Assets (continued)

After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life

An assessment is made at each reporting date as to whether there is any indication that previously recognised impairment losses may no longer exist or may have decreased.
If such indication exists, the Group estimates the asset's or cash-generating unit's recoverable amount. A previously recognised impairment loss is reversed only if there has
been a change in the assumptions used to determine the asset's recoverable amount since the last impairment loss was recognised. The reversal is limited so that the carrying
amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss
been recognised for the asset in prior years. Such reversal is recognised in the consolidated statement of profit and loss unless the asset is carried at a revalued amount, in
Which case the reversal is treated as a revaluation increase

Provisions and contingent liabilities
Provisions

Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, itis probable that an outflow of resources embodying.
economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. When the Group expects some or all of a
provision to be reimbursed, the reimbursement is recognised as a separate asset, but only when the reimbursement is virtually certain

‘The expense relating to a provision is presented in the statement of profit and loss net of any reimbursement. If the effect of the time value of money is material, provisions
are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the
passage of time is recognised as a finance cost.

Contingent liabilities
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain
future events beyond the control of the Group of a present obligation that is not recognised because it is not probable that an outflow of resources will be required to settle
the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognised because it cannot be measured reliably. The Group
does not recognize a contingent liability but discloses its existence in the consolidated financial statements.

 

Contingent assets
‘Contingent assets has to be recognised in the financial statements in the period in which if tis virtually certain that an inflow of economic benefits will arise. Contingent
assets are assessed continually and no such benefits were found for the current financial period/ year.

Retirement and other employee benefits
Defined contribution plans

Retirement benefit in the form of provident fund is a defined contribution scheme. The Group has no obligation, other than the contribution payable to the provident fund.
‘The Group recognises the contribution payable to the provident fund scheme as an expense, when an employee renders the related service.

If the contribution payable to the scheme for service received before the balance sheet date exceeds the contribution already paid, the deficit payable to the scheme is
recognised as a liability after deducting the contribution already paid. If the contribution already paid exceeds the contribution due for services received before the balance
sheet date, then excess is recognised as an asset.

Defined benefit plans
‘The Group operates a defined benefit plan for its employees, viz., gratuity. The costs of providing benefits under the plan are determined on the basis of actuarial valuation
at each period/year-end using the projected unit credit method consistent with the advice of qualified actuaries.

Remeasurements, comprising of actuatial 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 recognised immediately in the balance sheet with a corresponding
debit or credit to retained earnings through OCI in the period in which they occur. Remeasturements are not reclassified to profit or loss in subsequent periods,

Past service costs are recognised in profit or loss on the earlier of
«The date of the plan amendment or curtailment, and

The date that the Group recognises related restructuring costs

Net interest is calculated by applying the discount rate to the net defined benefit liability or asset. The Group recognises the following changes in the net defined benefit
‘obligation as an expense in the consolidated statement of profit and loss:

- Service costs comprising current service costs, past-service costs, gains and losses on curtailments and non-routine settlements; and

= Net interest expense or income

Other Short term employee benefits
Accumulated leave, which is expected to be utilized within the next 12 months, is treated as short-term employee benefit. The Group measures the expected cost of such
absences as the additional amount that it expects to pay as. result of the unused entitlement that has accumulated at the reporting date.

‘The Group treats accumulated leave expected to be carried forward beyond twelve months, as long-term employee benefit for measurement purposes, Such long-term
compensated absences are provided for based on the actuarial valuation using the projected unit credit method at the period/year-end. Actuarial gains/losses are
immediately taken to the statement of profit and loss and are not deferred. The Group presents the entire leave as a current liability in the balance sheet, since it does not
have an unconditional right to defer its settlement for 12 months after the reporting date

Employee share based payments
Employees (including senior executives) of the Group receive remuneration in the form of share based payment transactions, whereby employees render services as
consideration for equity instruments,

‘The cost of equity-settled transactions is determined by the fair value at the date when the grant is made using an appropriate valuation model.

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

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

Service and non-market performance conditions are not taken into account when determining the grant date fair value of awards, but the likelihood of the conditions being
‘met is assessed as part of the Group's best estimate of the number of equity instruments that will ultimately vest.

‘Market performance conditions are reflected within the grant date fair value. Any other conditions attached to an award, but without an associated service requirement, are

considered to be non-vesting conditions. Non-vesting conditions are reflected in the fair value of an award and lead to an immediate expensing of an award unless there are
also service and/or performance conditions,

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