‘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 tated)

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Summary of significant accounting policies
Basis of consolidation

Subsidiaries are all entities (including special purpose entities) that are controlled by the Group. Control exists when the Company is exposed to, or has rights to variable
returns from its involvement with the entity and has the ability to affect those returns through power over the entity. In assessing control, potential voting rights are
considered only if the rights are substantive. The financial statements of subsidiaries are included in these consolidated financial statements from the date that control
‘commences until the date that control ceases. For the purpose of preparing these consolidated financial statements, the accounting policies of subsidiaries have been changed
where necessary to align them with the policies adopted by the Company.

 

‘The group combines the financial statements of the parent and its subsidiaries line by line adding together like items of assets, liabilities, equity, income and expenses,
Intercompany transactions, balances and unrealised losses are also eliminated unless the transaction provides evidence of an impairment of transferred asset. Offset
(eliminate) the carrying amount of the parent's investment in each subsidiary and the parent's portion of equity of each subsidiary.

 

Profit or loss and each component of other comprehensive income (OCI) are attributed to the equity holders of the parent of the Group and to the non-controlling interests,
even if this results in the non-controlling interests having a deficit balance.

 

Recent accounting pronouncement
Ministry of Corporate Affairs (’MCA") through a notification dated March 24, 2021, amended Division II of Schedule III of the Companies Act, 2013. These amendments are
applicable for the reporting period beginning on or after April 1, 2021. The amendment encompasses significant additional disclosure requirements and includes certain
changes to the existing disclosures. In absence of detailed authoritative guidance, the Group has applied and incorporated the requirements of amended Division Il of
Schedule III of the Companies Act, 2013 while preparing these Restated Consolidated Financial Information based on available information including exposure draft of
revised guidance note on Division II- Ind AS schedule III to the Companies Act, 2013 issued by the corporate laws & corporate governance committee of ICAI. The Group
will continue to monitor and evaluate its disclosures as per the future pronouncements and clarifications.

‘The Group has adopted the amendments to Ind AS 1 and Ind AS 8 for the first time in the current period. The amendments states the definition of "material" in Ind AS 1,
which is easier to understand and are not intended to alter the underlying concept of materiality in Ind ASs. The concept of ‘obscuring’ material information with immaterial
information has been included as part of the new definition,

‘The threshold for materiality influencing users has been changed from ‘could influence’ to ‘could reasonably be expected to influence’. The definition of material in Ind AS 8
thas been replaced by a reference to the definition of material in Ind AS 1. In addition, the MCA amended other Standards that contain the definition of ‘material! or refer to
the term ‘material’ to ensure consistency

‘The adoption of the amendments has not had any material impact on the disclosures or on the amounts reported in these restated financial statements.

 

Significant accounting, estimates and assumptions
‘The preparation of these consolidated financial statements is in conformity with the recognition and measurement principles of Ind AS which requires the management to
‘make judgments, estimates and assumptions that affect the application of accounting policies and reported amounts of assets, liabilities, income and expenses and the
disclosure of contingent liabilities as at the date of the consolidated financial statements.

Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as management
becomes aware of those estimates. Changes in estimates are reflected in the consolidated financial statements in the period /year in which changes are made, if material, their
effects are disclosed in the notes to the consolidated financial statements. Information about significant areas of assumptions, estimation uncertainty and critical judgements
in applying accounting policies that have the most significant effect on the amounts recognised in the consolidated financial statements are:

Impairment of trade receivables
‘The Group has measured the lifetime expected credit loss by using practical expedients. It has accordingly used a provision matrix derived by using a flow rate model to
measure the expected credit losses for trade receivables. Further, need for incremental provisions have been evaluated on a case to case basis where forward looking,
information on the financial health of a customer is available and in cases where there is an ongoing litigation/ dispute.

 

Useful lives of property, plant and equipment and intangible assets
‘The Group reviews the useful life of property, plant and equipment and intangible at the end of each reporting period. This reassessment may result in change in
depreciation expense in future periods

‘Valuation of deferred tax assets and liabilities

Deferred tax assets and liabilities are recognized for the future tax consequences of temporary differences between the carrying values of assets and liabilities and their
respective tax bases, and unutilized business loss and depreciation carry-forwards and tax credits. Deferred tax assets are recognized to the extent there is reasonable
certainty of future taxable income which will be available against the deductible temporary differences, unused tax losses and depreciation carry-forwards.

Defined benefit plans
‘The obligation arising from defined benefit plan is determined on the basis of actuarial assumptions. Key actuarial assumptions include discount rate, trends in salary
escalation, actuarial rates and life expectancy. The discount rate is determined by reference to market yields at the end of the reporting period on government bonds. The
period to maturity of the underlying bonds correspond to the probable maturity of the post-employment benefit obligations, Due to complexities involved in the valuation
and its long term nature, defined benefit obligation is sensitive to changes in these assumptions. All assumptions are reviewed at each reporting period.

Provisions and contingent liabilities
‘The Group estimates the provisions that have present obligations as a result of past events and it is probable that outflow of resources will be required to settle the
‘obligations. These provisions are reviewed at the end of each reporting period and are adjusted to reflect the current best estimates

‘The Group uses significant judgements to disclose contingent liabilities. Contingent liabilities are disclosed when there is a possible obligation arising from past events, the
existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Group or a present
obligation that arises from past events where itis either not probable that an outflow of resources Will be required to settle the obligation or a reliable estimate of the amount
cannot be made. Contingent assets are neither recognised nor disclosed in the financial statements,

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