 

MedPlus Health Services Limited (formerly known as MedPlus Health Serv
Annexure- VII

Notes to Restated Consolidated Financial Information

(All amounts are it Rs, i millions except as otherwise stated)

6, Goodwill and other Intangible Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Software Goodwill
Gross carrying amount
Asat Apri 1, 2018 33.64 41451 17.78
Additions 2.80 : :
Disposals (oa) “ i
As at March 31, 2019 36.30 ‘wat 1778
Additions 3s z
Additions on acquisition of subsidiary 10.41 .
As at March 31, 2020, 2959 Hast 1778
Additions tas 7 7
Disposals (0.10) * “
As at September 30, 2020 74 ‘wast 1778
As at April 1, 2020 49.59 ‘a451 1778
Additions 2858 F 2
Disposals 0.10) z :
As at March 31, 2021 7837 wast 1778
Additions 122 = 7
Disposals : z -
As at September 30, 2021 90.59 ‘aa51 1778
Accumulated Amortization
As at April 1, 2018 18.03 : 1778
Charge for the year 6.42 - -
Disposals (024) “ i
As at March 31, 2019 2 : 1778
Additions on acquisition of subsidiary 010 2 z
Charge for the year 770 s z
As at March 31, 2020 Ear = 1778
Charge for the period 328 = z
Disposals (0.08) 2 z
As at September 30, 2020 3551 zZ 1778
As at April 1, 2020 Eat z 17.78
Charge for the year B13 = a
Disposals (0.08) ei 7
As at March 31, 2021 40.16 zi 1778
Charge for the period 4.86 7 2
Disposals _ : :
As at September 30, 2021 B02 zi 1778
Net Block
As at March 31, 2019 11.99 1451
As at March 31, 2020 1775 Wasi :
As at September 30, 2020 3885 a1451 :
As at March 31, 2021 3621 aa51 =
As at September 30, 2021 4557 “a451 z
Impairment testing for cash generating unit (CGU) containing goodwill -
The Group has identified each entity as a separate CGU, breakup of entity wise goodwill is mentioned below ~
‘Company's Name Goodwill
Optival Health Solutions Private Limited 37 Se
MHS Pharmaceuticals Private Limited 046
Agilemed Investment Private Limited (formerly known as Ritecure Pharma Private Limited) 045
Venkata Krishna Enterprises Private Limited o7
Deccan Medisales Private Limited 3.07
Shri Banashankari Pharma Private Limited 1.26
Sidson Pharma Distributors Private Limited 20.55
Kalyani Meditimes Private Limited 107,
Total ore

 

“The Group has determined that goodwill on account of acquisition of subsidiaries has indefinite usehul hfe, The recoverable amount has been determined based on a value in use model, Valu
generally calculated as the net present value of th

 

projected post-tax eash flows plus a terminal value. Key assumptions upon which the Group has based its determinations of value-in-use inelude:

 

a. Estimated cash flows for five years, based on management's projections
. A terminal value arrived at by extrapolating the last forecasted year cash flows to perpetuity, using a constant long

 

storm growth rate of 5% (previous years: 3%). This long-term growth rate takes into
consideration external macroeconomic sources of data. Such long-term growth rate considered does not exceed that of the relevant business and industry sector.

c. The after tax discount rates used are based on the Company's weighted average cost of capital.

d. The discount rates used for discounting free cash flows and terminal value is 12.02% (post-tax discount rate,

ce. Annual growth rate considered for 5 years (average) is 15.50% (previous years: 22.80%
F. Budgeted EBIDTA growth rate considered is 11.4% (previous years: 10°)

   

   

Weighted Average Cost of Capital
recoverable amount is based would not cause the aggregate carrying amount to exceed the aggregate recoverable amounts. The Group had performed its annual impairment test for
31, 2021, March 31, 2020 and March 31, 2019. and there were no changes, No changes/triggers which require reassessment/ testing as at September 30, 2021.

(WACC) « Risk free return + (Market premium x Beta for the company). The Group believes that any reasonably possible change in the key assumptions on which a
ears ended March

 

 

No impairment was noted against the above CGUs based on the assessment performed by the Management. Management has performed sensitivity analysis around the base assumption and have
Flower than the carrying amount of CGU,

 

concluded that no reasonable possible change in key assumptions would cause the recoverable amount of the CGI

No impairment on goodwill was recognized during the current period or earlier years
