2.19 Provisions and contingencies

A provision is recognised when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates.

A contingent liability is disclosed where, as a result of past events, there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

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2.20 Leases

a) Finance lease

i) Assets taken on finance lease are capitalised at fair value or net present value of the minimum lease payments, whichever is less.

ii) Lease payments are apportioned between the finance charges and outstanding liability in respect of assets taken on lease.

b) Operating lease

i) Leases, where the lessor effectively retains substantially all the risks and benefits of ownership of the leased term are classified as operating lease. Lease rent are recognized as an expense in the Statement of Profit and Loss on a straight line basis over the lease term.

2.21 Earning per share

Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. Partly paid equity shares are treated as a fraction of an equity share to the extent that they were entitled to participate in dividends relative to a fully paid equity share during the reporting year. For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

NOTE 32: EMPLOYEE BENEFIT PLAN (A) Defined benefit Plan

The defined benefit plan operated by the Company is as below:

Retiring gratuity

The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees. The plan provides for a lump-sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 26 days salary payable for each completed year of service. Vesting occurs upon completion of five years of service. The Company does not make any contributions to gratuity funds and the plan is unfunded. The Company accounts for the liability for gratuity benefits payable in the future based on an actuarial valuation.

The defined benefit plans expose the Company to a number of actuarial risks as below:

(a) Interest risk: A decrease in the bond interest rate will increase the plan liability.

(b) Salary risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan's liability.

(c) Longevity risk: The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants. An increase in the life expectancy of the plan participants will increase the plan's liability.

(B) Defined contribution plan

Provident fund and pension

In accordance with the Employee's Provident Fund and Miscellaneous Provisions Act, 1952, eligible employees of the Company are entitled to receive benefits in respect of provident fund, a defined contribution plan, in which both employees and the Company make monthly contributions at a specified percentage of the covered employees' salary. The contributions, as specified under the law, are made to the employee provident fund organization (EPFO).

The total expenses recognised in the statement of profit and loss during the year on account of defined contribution plans amounted to INR 221.09 Lakhs (PY: INR 144.40 Lakhs).

NOTE 33: SHARE BASED PAYMENTS: EMPLOYEE STOCK OPTION PLANS

(i) Jeena Sikho Lifecare Limited has recognised share based payment expenses for the years ended March 31, 2024 based on fair value as on the grant date calculated as per option pricing model. The grants represent equity-settled options under the Employee Stock Option Plans.

The Jeena Sikho Lifecare Limited has granted ESOPs under one plans viz., Employees Stock Option Scheme 2024 to its employees on an equity-settled basis as tabulated below. The ESOPs provide a right to its holders (i.e., Jeena Sikho Lifecare Limited employees) to purchase one share for each option at a pre-determined strike price on the expiry of the vesting period. The ESOP hence represents an call option that provides a right but not an obligation to the employees of the Jeena Sikho Lifecare Limited to exercise the option by paying the strike price on completion of the vesting period.

Methodology:

1. Current Ratio = Current Asset/Current Liability

2. Debt-Equity Ration = Total Debt/(Total Debt Equity)

3. Debt Service Coverage Ratio = EBITDA/Finance Cost

4. Return on Equity Ratio = Profit After Tax/Total Equity

5. Inventory Turnover Ratio = Purchase/Inventory

6. Trade Receivable Turnover Ratio = Revenue from Operations/Trade Receivable

7. Trade Payable Turnover Ratio = Purchase/Trade Payable

8. Net Capital Turnover Ratio = Revenue from Operations/ (Current Asset - Current Liability)

9. Net Profit Ratio = Profit After Tax/Revenue from Operations

10. Return on Capital Employed = EBIT/

(Total Debt Equity)

NOTE 40: CONTINGENT LIABILITIES AND COMMITMENT

(i) Company has received a final demand for INR 11,36,599/- from the GST department after an GST audit was conducted for the Company under Section 65 of the Punjab goods and Services Tax Act, 2017. The Company has filled an appeal against the said demand with the Appellate Authority. The Company is expected to get the favorable opinion from the Appellate

Authority and hence the amount has been disclosed as a contingent liability.

(ii) The Company has given Bank Guarantees amounting to INR 1.26 Crores to CGHS, RGHS, NDMC, ECHS and State Insurance for empanelment of hospital.

NOTE 41: OTHER NOTES

(i) The Board of Directors in their meeting held on May 15, 2024 has recommended a dividend of INR 4.18 of the face value of INR 10 each for the FY 2023-24 subject to approval of the shareholder in ensuing Annual General Meeting of the Company

(ii) Figures for the previous year have been re-grouped/ rearranged/restated wherever necessary to make them comparable with those of the current year.

(iii) In the opinion of the Board of Directors and Management, all the assets other than, Property, Plant and Equipment, Intangible assets and non-current investments have a value on realisation in the ordinary course of business which is at least equal to the amount at which they are stated.

(iv) The Company does not have any immovable property whose title deed is not held in name of the Company.

(v) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

(vi) The Company does not have borrowings from the bank or financial institutions where quarterly returns or statement of current assets to be filed with such bank/ financial institution.

(vii) The Company has not done any transactions with companies struck off under Section 248 of the Companies Act, 2013 or Section 560 of Companies Act, 1956.

(viii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

(ix) The Company has complied with the number of layers for its holding in downstream companies prescribed under clause (87) of Section 2 of the Companies Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017.

(x) Company has not advanced or loaned or invested funds to any other person(s) or entity(is), including foreign entities (Intermediaries) with the understanding that the Intermediary shall: (a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate

Beneficiaries) or (b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(xi) The Company has not received any fund from any person(s) or entity(is), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall: (a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or (b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

(xii) The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

(xiii) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

As per our report of even date

For KRA & Co. For and on behalf of the Board of Directors

Chartered Accountants JEENA SIKHO LIFECARE LIMITED

Firm Regd. No.020266N

Saurabh Garg Manish Grover Bhavna Grover

(Partner) Managing Director Whole-Time Director

M.No.: 510541 DIN: 07557886 DIN: 07557913

UDIN: 24510541BKAORG1195

Nanak Chand Anshika Garg

Place: New Delhi Chief Financial Officer Company Secretary

Dated: May 15, 2024 M No.: A34503