Accounting Policies of Park Medi World Ltd. Company

2. Material Accounting Policies

This note provides a list of the material accounting policies
adopted in the preparation of the financial statements. These
policies have been consistently applied to all the years presented,
unless otherwise stated.

2.1 Basis of preparation and presentation

The financial statements have been prepared in accordance
with Indian Accounting Standards (“Ind AS”) notified under
the Companies Act, 2013 and the Companies (Indian
Accounting Standards) Rules, as amended from time to
time, and the presentation and disclosure requirements
of Division II of Schedule III to the Companies Act, 2013,
as amended from time to time. The financial statements
have been prepared on a historical cost basis, except for
certain financial instruments that are measured at fair value
at the end of each reporting period, as explained in the
accounting policies below. The financial statements have
been approved by the Board of Directors.

The financial statements are presented in Indian Rupees
(H), which is the Company’s functional currency. All
amounts disclosed in the financial statements and notes
have been rounded to the nearest million and two decimals
thereof, unless otherwise stated. The statement of cash
flows has been prepared using the indirect method.

The financial statements of the Company for the financial
year 2025-26 were approved by the Board of Directors
on May 12, 2026.

The material accounting policies are set out below.

2.2 Fair Value Measurement

The Company measures certain financial instruments at
fair value at each reporting date. Fair value is the price
that would be received to sell an asset or paid to transfer
a liability in an orderly transaction between market
participants at the measurement date.

The Company uses valuation techniques that are appropriate
in the circumstances and for which sufficient data is available
to measure fair value, maximising the use of relevant

observable inputs and minimising the use of unobservable
inputs. The valuation technique selected is applied
consistently unless a change results in a measurement that
is equally or more representative of fair value.

For financial reporting purposes, fair value measurements
are categorised into Level 1, Level 2 or Level 3 based on the
degree to which the inputs to the fair value measurements
are observable and the significance of the inputs to the fair
value measurement in its entirety. Level 1 inputs are quoted
prices in active markets for identical assets or liabilities that
the Company can access at the measurement date. Level
2 inputs are observable inputs other than quoted prices
included within Level 1, either directly or indirectly. Level 3
inputs are unobservable inputs for the asset or liability.

All assets and liabilities for which fair value is measured
or disclosed are categorised within the fair value hierarchy
based on the lowest level input that is significant to
the fair value measurement as a whole. The Company
recognises transfers between levels of the fair value
hierarchy at the end of the reporting period during which
the change has occurred.

For assets and liabilities that are recognised in the financial
statements on a recurring basis, the Company determines
whether transfers have occurred between levels in the
hierarchy by reassessing categorisation at each reporting
date. External valuers may be used for significant
valuations where appropriate, and valuation results are
reviewed by management before being included in the
financial statements.

2.3 Revenue Recognition

The Company derives revenue primarily from rendering
healthcare services to patients. Revenue is recognised
when control of the promised services is transferred to
the customer in an amount that reflects the consideration
to which the Company expects to be entitled in exchange
for those services. Revenue is measured net of discounts,
rebates, contractual adjustments, and taxes collected on
behalf of statutory authorities.

2.3.1 Healthcare Services

Healthcare service income includes revenue
from inpatient and outpatient services such as
consultations, diagnostics, procedures, surgeries,
room charges, nursing care and other related
hospital services, including clinical examinations and
treatments, accommodation, medical and clinical
professional services, investigations and supply of
related consumables, where applicable.

The patient or other payer is obligated to pay for
healthcare services at amounts estimated to be
receivable based on the Company’s standard
rates, package rates or rates determined under

reimbursement arrangements. Reimbursement
arrangements are generally with third party
administrators, insurers, corporates and national or
local government programmes, with reimbursement
rates established by contract, statute, regulation or
memorandum of understanding.

Revenue is recognised when the relevant performance
obligation is satisfied. For outpatient services, revenue
is generally recognised at the point in time when the
consultation, diagnostic test, procedure or other
service is completed. For inpatient services, revenue
is recognised over the period during which the patient
receives treatment, as the Company performs and
transfers the promised services.

Revenue from patients, third party payers and other
customers is billed at the Company’s standard rates,
package rates or contractually agreed rates, net of
contractual or discretionary allowances, discounts,
rebates and other amounts expected not to be realised.

In recognising revenue, the Company deducts pre¬
determined discounts agreed with government
agencies and other customers from the billed
amount. Revenue excludes taxes collected from
customers and deposited with the respective statutory
authorities, if any.

2.3.2 Dividend and Interest Income

Dividend income from investments is recognised
when the shareholder’s right to receive payment has
been established (provided that it is probable that the
economic benefits will flow to the Company and the
amount of income can be measured reliably).

Interest income from a financial asset is recognised
when it is probable that the economic benefits will flow
to the Company and the amount of income can be
measured reliably. Interest income is accrued on a time
basis, by reference to the principal outstanding and at
the effective interest rate applicable, which is the rate
that exactly discounts estimated future cash receipts
through the expected life of the financial asset to that
asset’s net carrying amount on initial recognition.

2.3.3 Contract Assets and Contract Liabilities

A contract asset is recognised when the Company has
transferred services to a customer before the right to
consideration becomes unconditional. Contract assets
primarily represent unbilled revenue for services rendered
up to the reporting date. A receivable is recognised when
the right to consideration becomes unconditional and
only the passage of time is required before payment is
due. Contract liabilities represent consideration received
in advance from patients or other customers for which
the related services are yet to be rendered.

2.3.4 Transaction Price

The transaction price is the amount of consideration
to which the Company expects to be entitled in
exchange for transferring promised services to
a customer. It includes fixed consideration and
estimates of variable consideration, where applicable,
and is adjusted for discounts, rebates, contractual
allowances and other amounts expected to be
adjusted or not realised. The Company reassesses
estimates of variable consideration and related
constraints at each reporting date.

2.3.5 Principal versus Agent Considerations

The Company is a principal and records revenue
on a gross basis when the Company is primarily
responsible for fulfilling the service, has discretion in
establish pricing and controls the promised service
before transferring that service to customers.

2.3.6 Trade Receivables and Expected Credit Losses

Trade receivables from healthcare services
are recognised when the Company’s right to
consideration becomes unconditional. Trade
receivables are measured initially at transaction
price and subsequently carried at amortised cost
less allowance for expected credit losses, where
applicable. Receivables include amounts collectible
under government reimbursement programmes,
reimbursement arrangements with third party
administrators, insurers and contractual arrangements
with corporates, including public sector undertakings.

Write-offs are made on a claim-by-claim basis when
there is no reasonable expectation of recovery, after
completion of internal recovery procedures and
appropriate management review. A significant change
in collection experience, deterioration in the ageing
of receivables, payer disputes or collection difficulties
may require the Company to revise its estimate of
expected credit losses.

Expected credit losses are reviewed at each reporting
date and are based on ageing, historical collection
trends, contractual disputes, settlement patterns,
payer mix and other relevant information specific to
the receivable’s portfolio. Receivables are written off
when there is no reasonable expectation of recovery
after completion of internal recovery procedures and
appropriate management review.

2.3.7 Revenue from Third Party Administrators (TPAs),
Insurers, Corporates and Government Schemes

Revenue from TPAs, insurers, corporate and government
schemes is recognised on accrual basis as healthcare
services are rendered, based on the applicable agreed
tariff, package or reimbursement arrangement. The

Company determines the transaction price on the TPA
contracts based on established billing rates reduced by
contractual adjustments provided to TPAs. Contractual
adjustments and discounts are based on contractual
agreements, discount policies and historical experience.
Such arrangements may contain variable consideration
in the form of contractual deductions, claim rejections,
disallowances or settlement adjustments. The Company
estimates such variable consideration using historical
experience, the terms of the arrangement and expected
settlement patterns.

Revenue is recognised only to the extent that it is highly
probable that a significant reversal will not occur on
final settlement of the claim. Subsequent differences
between estimates and actual settlements are
recognised in the period in which they become known.

2.4 Operating Cycle

Based on the nature of the Company’s activities and the
normal time between the acquisition of assets and their
realisation in cash or cash equivalents, the Company
has determined its operating cycle as 12 months for the
purpose of classifying its assets and liabilities as current
and non-current.

2.5 Leases

At the inception of a contract, the Company assesses
whether the contract is, or contains, a lease. A contract
is, or contains, a lease if it conveys the right to control the
use of an identified asset for a period of time in exchange
for consideration.

2.5.1 The Company as Lessee

The Company enters into arrangements for the lease
of land, buildings, plant and machinery and office
equipment. Such arrangements are generally for a
fixed period but may include extension or termination
options. The Company assesses whether a contract
is, or contains, a lease at its inception. A contract is, or
contains, a lease if the contract conveys the right to:

(a) control the use of an identified asset,

(b) obtain substantially all the economic benefits
from use of the identified asset, and

(c) direct the use of the identified asset.

The Company determines the lease term as the non¬
cancellable period of a lease, together with periods
covered by an option to extend the lease, where the
Company is reasonably certain to exercise that option.

The Company recognises a right-of-use asset and a
corresponding lease liability with respect to all lease
agreements in which it is the lessee, except for short¬
term leases (defined as leases with a lease term of

12 months or less) and leases of low value assets.
For these leases, the Company recognises the lease
payments as an operating expense on a straight¬
line basis over the term of the lease unless another
systematic basis is more representative of the time
pattern in which economic benefits from the leased
asset are consumed. This expense is presented
within ‘other expenses’ in statement of profit and loss.

Lease Liabilities:

The lease liability is initially measured at the present
value of the lease payments that are not paid at the
commencement date, discounted by using the rate implicit
in the lease. If this rate cannot be readily determined, the
Company uses its incremental borrowing rate.

Lease payments included in the measurement of the
lease liability comprise:

i. fixed lease payments (including in-substance
fixed payments), less any lease incentives;

ii. variable lease payments that depend on an
index or rate, initially measured using the index
or rate at the commencement date;

iii. the amount expected to be payable by the
lessee under residual value guarantees;

iv. lease payments in optional renewal periods,
where exercise of extension options is
reasonably certain, and

v. payments of penalties for terminating the lease,
if the lease term reflects the exercise of an
option to terminate the lease.

The lease liability is presented as a separate line in
the Balance Sheet. The lease liability is subsequently
measured by increasing the carrying amount to
reflect interest on the lease liability (using the effective
interest method) and by reducing the carrying amount
to reflect the lease payments made.

Lease liability payments are classified as cash used in
financing activities in the statement of cash flows.

The Company remeasures the lease liability and
makes a corresponding adjustment to the related
right-of-use asset whenever:

i) the lease term has changed or there is a change
in the assessment of exercise of a purchase
option, in which case the lease liability is
remeasured by discounting the revised lease
payments using a revised discount rate.

ii) the lease payments change due to changes in an
index or rate or a change in expected payment

under a guaranteed residual value, in which cases
the lease liability is remeasured by discounting
the revised lease payments using the initial
discount rate (unless the lease payments change
is due to a change in a floating interest rate, in
which case a revised discount rate is used)

iii) a lease contract is modified and the lease
modification is not accounted for as a separate
lease, in which case the lease liability is
remeasured by discounting the revised lease
payments using a revised discount rate.

Right-of-Use Assets:

The Company recognises a right-of-use asset at the
commencement date of the respective lease. Right-
of-use assets are stated at cost less accumulated
depreciation and impairment losses, if any. Upon
initial recognition, cost comprises:

• the initial lease liability amount,

• initial direct costs incurred when entering
into the lease,

• (lease) payments before commencement date
of the respective lease, and

• an estimate of costs to dismantle and remove
the underlying asset,

• less any lease incentives received.

Prepaid lease payments, including the difference
between the nominal amount of the deposit and its
fair value, are also included in the initial carrying
amount of the right-of-use asset.

Right-of-use assets are subsequently measured at cost
less accumulated depreciation and impairment losses.
They are depreciated on a straight-line basis over
the shorter of the lease term and the useful life of the
underlying asset. If a lease transfers ownership of the
underlying asset or the cost of the right-of-use asset
reflects that the Company expects to exercise a purchase
option, the related right-of-use asset is depreciated over
the useful life of the underlying asset. Depreciation
starts at the commencement date of the lease.

Right-of-use assets are presented as a separate line
item in the Balance Sheet. The Company applies Ind
AS 36 to determine whether a right-of-use asset is
impaired and accounts for any identified impairment
loss as described in the accounting policy on
impairment of non-financial assets.

The Company incurs obligation for costs to dismantle
and remove a leased asset, restore the site on which
it is located or restore the underlying asset to the

condition required by the terms and conditions of
the lease. The Company has assessed that such
restoration costs are negligible and hence no
provision under Ind-AS 37 has been recognised.

Variable rents that do not depend on an index or
rate are not included in the measurement of the
lease liability and the right-of-use asset. The related
payments are recognised as an expense in the
period in which the event or condition that triggers
those payments occurs and are included in “other
expenses” in the statement of profit and loss.

2.6 Foreign Currencies

Transactions in foreign currencies are recorded on initial
recognition in the functional currency at the exchange
rate prevailing on the date of the transaction. Monetary
assets and liabilities denominated in foreign currencies
are translated at the exchange rates prevailing at the
reporting date. Non-monetary items denominated in
foreign currencies that are measured at historical cost
are translated using the exchange rate at the date of the
transaction. Non-monetary items measured at fair value in
a foreign currency, if any, are translated using the exchange
rates at the date when the fair value is determined.

Exchange differences arising on settlement or translation
of monetary items are recognised in the statement of
profit and loss in the period in which they arise, except
for exchange differences on foreign currency borrowings
relating to qualifying assets, which are included in the
cost of those assets to the extent they are regarded as
an adjustment to interest costs in accordance with the
Company’s accounting policy on borrowing costs.

2.7 Borrowings and Borrowing Costs

Borrowings are recognised initially at fair value, net of
transaction costs incurred. Borrowings are subsequently
stated at amortised cost. Any difference between the
proceeds (net of transaction costs) and the redemption
value is recognised in the statement of profit and loss over
the period of the borrowings using the effective interest rate
method. Borrowings are classified as current liabilities unless
the Company has an unconditional right to defer settlement
of the liability for at least 12 months after the reporting date.

Borrowing costs directly attributable to the acquisition,
construction or production of qualifying assets, which are
assets that necessarily take a substantial period of time to
get ready for their intended use, are added to the cost of
those assets until such time as the assets are substantially
ready for their intended use.

Interest income earned on the temporary investment of
specific borrowings pending their expenditure on qualifying
assets is deducted from the borrowing costs eligible for
capitalisation.

All other borrowing costs are recognised in the statement
of profit and loss in the period in which they are incurred.

2.8 Employee Benefits

2.8.1 Retirement Benefit Costs and Termination
Benefits

Payments to defined contribution retirement benefit
plans are recognised as an expense when employees
have rendered service entitling them to the contributions.

For defined benefit retirement benefit plans, the
cost of providing benefits is determined using the
projected unit credit method, with actuarial valuations
being carried out at the end of each annual reporting
period. Remeasurement, comprising actuarial gains
and losses and the return on plan assets (excluding
net interest), is reflected immediately in the balance
sheet with a corresponding charge or credit
recognised in other comprehensive income in the
period in which it occurs. Remeasurement recognised
in other comprehensive income is not reclassified to
the statement of profit and loss. Past service cost is
recognised in the statement of profit and loss in the
period of a plan amendment. Net interest is calculated
by applying the discount rate at the beginning of the
period to the net defined benefit liability or asset.
Defined benefit costs are categorised as follows:

• service cost (including current service cost,
past service cost, as well as gains and losses on
curtailments and settlements);

• net interest expense or income; and

• remeasurement

The Company presents the first two components of
defined benefit costs in the statement of profit and
loss in the line item ‘Employee benefits expense’.

The retirement benefit obligation recognised in the
balance sheet represents the actual deficit or surplus
in the Company’s defined benefit plans. Any surplus
resulting from this calculation is limited to the present
value of any economic benefits available in the form
of refunds from the plans or reductions in future
contributions to the plans.

Other Short-Term Employee Benefits

Liabilities recognised in respect of short-term
employee benefits are measured at the undiscounted
amount of the benefits expected to be paid in
exchange for the related service.

2.9 Taxation

Income tax expense comprises current tax and deferred tax.
Current tax and deferred tax are recognised in the statement

of profit and loss, except to the extent that they relate to items
recognised in other comprehensive income or directly in
equity, in which case the related tax is also recognised in other
comprehensive income or directly in equity, respectively.

2.9.1 Current Tax

Current tax is the amount of income tax payable or
recoverable in respect of the taxable profit or tax
loss for the current and prior periods. Current tax
is measured using tax rates and tax laws that have
been enacted or substantively enacted by the end of
the reporting period. Current tax assets and liabilities
are offset only when the Company has a legally
enforceable right to set off the recognised amounts
and intends either to settle on a net basis or to realise
the asset and settle the liability simultaneously.
Advance taxes and provisions for current income
taxes are presented at net in the Balance Sheet after
off-setting advance tax paid and income tax provision.

2.9.2 Deferred Tax

Deferred tax is recognised on temporary differences
between the carrying amounts of assets and liabilities
in the financial statements and the corresponding
tax bases used in the computation of taxable profit.
Deferred tax liabilities are generally recognised
for all taxable temporary differences. Deferred tax
assets are generally recognised for all deductible
temporary differences to the extent that it is probable
that taxable profits will be available against which
those deductible temporary differences can be
utilized. Such deferred tax assets and liabilities are
not recognised if the temporary difference arises
from the initial recognition (other than in a business
combination) of assets and liabilities in a transaction
that affects neither the taxable profit nor the
accounting profit. In addition, deferred tax liabilities
are not recognised if the temporary difference arises
from the initial recognition of goodwill. Deferred tax
assets and liabilities are offset when they relate to
income taxes levied by the same taxation authority
and the relevant entity intends to settle its current tax
assets and liabilities on a net basis.

The carrying amount of deferred tax assets is reviewed
at the end of each reporting period and reduced to
the extent that it is no longer probable that sufficient
taxable profits will be available to allow all or part of
the asset to be utilised. Unrecognised deferred tax
assets are reassessed at each reporting date and are
recognised to the extent that it has become probable
that future taxable profits will allow the deferred tax
asset to be recovered.

Deferred tax assets and liabilities are measured using
the tax rates and tax laws that have been enacted

or substantively enacted by the end of the reporting
period and that are expected to apply when the
asset is realised or the liability is settled. Deferred
tax measurement reflects the tax consequences
that would follow from the manner in which the
Company expects, at the end of the reporting period,
to recover or settle the carrying amount of its assets
and liabilities. Deferred tax assets and liabilities are
not discounted.

Deferred tax assets and liabilities are offset only when
the Company has a legally enforceable right to set off
current tax assets against current tax liabilities and
the deferred tax assets and deferred tax liabilities
relate to income taxes levied by the same taxation
authority on the same taxable entity, or on different
taxable entities that intend either to settle current tax
liabilities and assets on a net basis or to realise the
assets and settle the liabilities simultaneously.

2.9.3 Current and Deferred Tax for the Year

Current and deferred tax are recognised in the
statement of profit and loss, except when they relate
to items that are recognised in other comprehensive
income or directly in equity, in which case, the
current and deferred tax are also recognised in
other comprehensive income or directly in equity
respectively. Where current tax or deferred tax arises
from the initial accounting for a business combination,
the tax effect is included in the accounting for the
business combination.

2.10 Property, Plant and Equipment

Items of property, plant and equipment are measured at
cost less accumulated depreciation and accumulated
impairment losses, if any. Cost includes the purchase price,
including non-refundable taxes and duties, after deducting
trade discounts and rebates, any costs directly attributable
to bringing the asset to the location and condition necessary
for it to be capable of operating in the manner intended
by management, and the initial estimate of dismantling,
removal and site restoration costs, where applicable.
Freehold land is carried at cost and is not depreciated.

Subsequent expenditure is added to the carrying amount
of an item of property, plant and equipment only when it
is probable that future economic benefits associated with
the item will flow to the Company and the cost can be
measured reliably. The carrying amount of the replaced
part is derecognised. Day-to-day servicing, repairs and
maintenance costs are recognised in the statement of
profit and loss as incurred.

Major inspections, replacements and overhauls are
capitalised when the recognition criteria are met and
are depreciated over their respective useful lives or the

period to the next replacement, as appropriate. Significant
components of an item of property, plant and equipment
with different useful lives are depreciated separately.

Buildings, plant and equipment, medical equipment,
furniture and fixtures, vehicles, office equipment and other
tangible assets held for use in the production or supply
of services or for administrative purposes are stated at
cost less accumulated depreciation and accumulated
impairment losses, if any.

The Company depreciates property, plant and equipment
on a written down value basis over the estimated useful
lives of the assets. The depreciation charge is determined
based on the estimated useful life of the asset and its
expected residual value at the end of its useful life. Useful
lives are based on historical experience with similar
assets and anticipated future events, including changes
in technology. The Company reviews the estimated useful
lives of property, plant and equipment and intangible assets
at each reporting date.

Right-of-use assets are depreciated in accordance with the
Company’s accounting policy on leases.

The estimated useful lives, residual values and depreciation
method are reviewed at least at each reporting date and
adjusted prospectively, where appropriate. Useful lives
are generally based on Schedule II to the Companies Act,
2013, except where a different useful life is supported by
technical assessment or management’s estimate of the
period over which the asset is expected to be used.

Estimated useful lives of the principal classes of property,
plant and equipment are as follows:

An item of property, plant and equipment is derecognised
on disposal or when no future economic benefits are
expected from its use or disposal. Any gain or loss arising
on derecognition is measured as the difference between
the net disposal proceeds and the carrying amount of the
asset and is recognised in the statement of profit and loss
when the asset is derecognised.

2.10.1 Capital Work in Progress

Capital work in progress comprises the cost of
property, plant and equipment that is not yet ready
for its intended use at the reporting date. Such cost
includes the purchase price, directly attributable
expenditure and, where applicable, borrowing costs
capitalised in accordance with the Company’s
accounting policy on borrowing costs. Advances
paid for the acquisition or construction of property,
plant and equipment are presented separately as
capital advances.

Capital work in progress is transferred to the
appropriate category of property, plant and equipment
when the asset is completed and is available for use in
the manner intended by management. Depreciation
on such assets commences from the date the asset is
available for use. The assessment of when an asset is
available for use requires judgement and is based on
the facts and circumstances of each project, including
completion of installation, testing and other activities
necessary to enable the asset to operate as intended.

2.11 Intangible Assets

Intangible assets are recognised when it is probable that
the expected future economic benefits attributable to
the asset will flow to the Company and the cost of the
asset can be measured reliably. Intangible assets are
measured initially at cost. Cost comprises the purchase
price, including non-refundable taxes and duties, after
deducting trade discounts and rebates, and any directly
attributable expenditure required to prepare the asset for
its intended use.

Subsequent expenditure on intangible assets is capitalised
only when it increases the future economic benefits
embodied in the specific asset to which it relates. All other
expenditure, including expenditure on research, training,
advertising and promotional activities, is recognised in the
statement of profit and loss as incurred. Internally generated
goodwill is not recognised as an intangible asset.

After initial recognition, intangible assets are carried at
cost less accumulated amortisation and accumulated
impairment losses, if any. Intangible assets with finite
useful lives are amortised on a straight-line basis over their
estimated useful lives. The amortisation period and the
amortisation method are reviewed at least at each reporting
date and adjusted prospectively, where appropriate.

2.11.1 Amortisation and Useful Lives of Intangible
Assets

Intangible assets are amortised from the date they are
available for use, that is, when they are in the location
and condition necessary for them to be capable of
operating in the manner intended by management.

Software licences are considered to have finite useful
lives and are amortised on a straight-line basis over
the estimated useful life specified below.

2.11.2 Derecognition of Intangible Assets

An intangible asset is derecognised on disposal
or when no future economic benefits are expected
from its use or disposal. Any gain or loss arising on
derecognition is measured as the difference between
the net disposal proceeds and the carrying amount of
the asset and is recognised in the statement of profit
and loss when the asset is derecognised.

2.12 Review of Useful Life and Method of Depreciation

The estimated useful lives, residual values and method of
depreciation or amortisation are reviewed at least at each
reporting date and, if expectations differ from previous
estimates, the changes are accounted for prospectively as
a change in accounting estimate.

2.13 Impairment of Tangible and Intangible Assets Other
Than Goodwill

At each reporting date, the Company reviews the carrying
amounts of its property, plant and equipment and intangible
assets with finite useful lives to determine whether there is
any indication that those assets may be impaired. If any
such indication exists, the recoverable amount of the
asset is estimated in order to determine the extent of the
impairment loss, if any.

The recoverable amount is the higher of an asset’s
fair value less costs of disposal and its value in use. In
assessing value in use, the estimated future cash flows are
discounted to their present value using a pre-tax discount
rate that reflects current market assessments of the time
value of money and the risks specific to the asset for which
the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating
unit) is estimated to be less than its carrying amount, the
carrying amount of the asset (or cash-generating unit) is
reduced to its recoverable amount. An impairment loss is
recognised immediately in the statement of profit and loss.

At each reporting date, the Company assesses whether
there is any indication that an impairment loss recognised
in prior periods may no longer exist or may have decreased.
If such indication exists, the recoverable amount of the
asset or cash-generating unit is estimated. A previously
recognised impairment loss is reversed only to the extent
that the carrying amount of the asset does not exceed the
carrying amount that would have been determined, net of

depreciation or amortisation, had no impairment loss been
recognised for the asset in prior periods.

2.14 Inventories

Inventories of medical consumables, drugs and stores and
spares are valued at the lower of cost and net realisable
value. Net realisable value represents the estimated selling
price in the ordinary course of business less the estimated
costs of completion and the estimated costs necessary to
make the sale, where applicable.

Cost is determined on a first-in, first-out (FIFO) basis.

The Company’s pharmacy operations are outsourced to
a third party. Accordingly, the Company does not carry
any inventory of medicines relating to such outsourced
pharmacy operations.