Revenue is recognized to the extent that it is probable that the economic benefits will flow to us and the revenue can be reliably
measured, regardless of when the payment is being made. Revenue is measured at the fair value of the consideration received
or receivable, taking into account contractually defined terms of payment and excluding taxes or duties collected on behalf of
the government. However, Goods and Service Tax (GST) is not received by us on our own account. Rather, it is tax collected
on value added to the commodity by the seller on behalf of the government. Accordingly, it is excluded from revenue. The
specific recognition criteria described below must also be met before revenue is recognized.

Sale of goods

Revenue from sale of goods is recognized when all the significant risks and rewards of ownership of the goods have been passed
to the buyer, usually on delivery of the goods. Revenue from the sale of goods is measured at the fair value of the consideration
received or receivable, net of returns and allowances, trade discounts and volume rebates.

Sales returns

We account for sales returns accrual by recording refund liability concurrent with the recognition of revenue at the time of a
product sale. This liability is based on our estimate of expected sales returns. Accordingly, the estimate of sales returns is
determined primarily by our historical experience of sales returns. At the time of recognizing the refund liability, we also
recognize an asset, (i.c., the right to the returned goods) which is included in “other current assets” for the products expected to
be returned. We initially measure this asset at the former carrying amount of the inventory, less any expected costs to recover
the goods, including any potential decreases in the value of the returned goods. Along with re-measuring the refund liability at
the end of each reporting period, we update the measurement of the asset recorded for any revisions to its expected level of
returns, as well as any additional decreases in the value of the returned products.

Rendering of Services
Revenue from pathological laboratory services and running of clinics are recognized as and when services are rendered.
Customer Loyalty Program

We operate a “Flexi Rewards” scheme (our customer loyalty program), which allows customers to accumulate points when
they purchase products. These points can be redeemed for purchase of value plus items. The fair value of the consideration
received or receivable in respect of the initial sale is allocated between the award credits and the other components of the sale.
The amount allocated to award credits is deferred and is recognized as revenue when the award credits are redeemed and we
have fulfilled its obligations to supply the discounted products under the terms of the program or when it is no longer probable
that the award credits will be redeemed.

Display income
Revenue for display of advertisement is accounted on accrual basis in accordance with the provisions of the relevant contacts.
Interest income

Interest income from financial instruments measured either at amortized cost or at fair value through other comprehensive
income is recorded using the effective interest rate (“EIR”). EIR is the rate that exactly discounts the estimated future cash
payments or receipts over the expected life of the financial instrument or a shorter period, where appropriate, to the gross
carrying amount of the financial asset or to the amortized cost of a financial liability. When calculating the effective interest
rate, we estimate the expected cash flows by considering all the contractual terms of the financial instrument (for example,
prepayment, extension, call and similar options) but does not consider the expected credit losses. Interest income is included in
other income in the consolidated statement of profit and loss.

Rental Income

Rental income arising from operating leases on building is accounted for on a straight-line basis over the lease terms and is
included in revenue in the statement of profit or loss due to its operating nature.

Property, Plant and Equipment

Capital work in progress is stated at cost, net of accumulated impairment loss, if any. Plant and equipment are stated at cost net
of accumulated depreciation and accumulated impairment losses, if any. Such cost includes the cost of replacing part of the
plant and equipment and borrowing costs for long-term construction projects if the recognition criteria are met.

When significant parts of plant and equipment are required to be replaced at intervals, we depreciate them separately based on
their specific useful lives. Likewise, when a major inspection is performed, its cost is recognized in the carrying amount of the
plant and equipment as a replacement if the recognition criteria are satisfied. All other repair and maintenance costs are
recognized in profit or loss as incurred. The present value of the expected cost for the decommissioning of an asset after its use
is included in the cost of the respective asset if the recognition criteria for a provision are met.

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