అకౌంట్స్ గమనికలుManipal Health Enterprises Ltd.

(q) Provisions

Provisions are recognised when the Company
has a present obligation (legal or constructive) as
a result of past event, it is probable that an outflow
of resources embodying economic benefits will
be required to settle the obligation and a reliable
estimate can be made of the amount of the
obligation. Where the Company expects some or
all of a provision to be reimbursed, for example
under an insurance contract, the reimbursement
is recognised as a separate asset but only when
the reimbursement is virtually certain. The
expense relating to any provision is presented
in the statement of profit or loss net off any
reimbursement.

If the effect of the time value of money is material,
provisions are discounted using a current pre¬
tax rate that reflects, when appropriate, the risks
specific to the liability. When discounting is used,
the increase in the provision due to the passage
of time is recognised as a finance cost. These
estimates are reviewed at each reporting date
and adjusted to reflect the current best estimates.

Onerous contracts

A contract is considered to be onerous when the
expected economic benefits to be derived by
the Company from the contract are lower than
the unavoidable cost of meeting its obligations
under the contract. The provision for an onerous
contract is measured at the present value of the
lower of the expected cost of terminating the
contract and the expected net cost of continuing
with the contract. Before such a provision is
made, the Company recognises any impairment
loss on the assets associated with that contract.

(r) Contingent liabilities

A contingent liability is a possible obligation that
arises from past events whose existence will be
confirmed by the occurrence or non-occurrence
of one or more uncertain future events beyond the
control of the Company or a present obligation
that is not recognised because it is not probable
that an outflow of resources will be required to
settle the obligation. A contingent liability also
arises in extremely rare cases where there is
a liability that cannot be recognised because
it cannot be measured reliably. The Company
does not recognise a contingent liability but
discloses its existence in the Standalone financial
statements unless the possibility of an outflow
of resources embodying economic benefits is
remote.

Contingent liabilities and commitments are
reviewed by the management at each balance
sheet date.

(s) Cash and cash equivalents

Cash and cash equivalent in the balance sheet
comprise cash at banks and on hand and
short-term deposits with an original maturity of
three months or less, which are subject to an
insignificant risk of changes in value.

For the purpose of the statement of cash flows,
cash and cash equivalents consist of cash
and short-term deposits, as defined above,
net of outstanding bank overdrafts as they are
considered an integral part of the Company’s
cash management.

(t) Segment accounting policies

The Company prepares its segment information
based on its reporting to Chief Operating Decision
Maker (refer note 36 on segment reporting).

(u) Corporate Social Responsibility (CSR) expenditure

CSR expenditure as per provisions of section 135
of Companies Act, 2013 read with The Companies
(Corporate Social Responsibility Policy) Rules,
2014, is charged to the statement of profit and
loss as an expense as and when incurred.

(v) Share capital

i. Equity shares

Incremental costs directly attributable to the
issue of equity shares are recognised as a
deduction from equity. Income tax relating to
transaction costs of an equity transaction is
accounted for in accordance with Ind AS 12.

ii. Treasury shares

The Company has created Manipal Health
Employee Welfare Trust (MHEWT) for
providing share-based payment to its
employees. The Company uses MHEWT
as a vehicle for distributing shares to
employees under the employee stock option
schemes. The Company treats MHEWT as
its extension and shares held by MHEWT are
treated as treasury shares.

Own equity instruments that are reacquired
(treasury shares) are recognised at cost
and deducted from equity. No gain or
loss is recognised in profit or loss on the
purchase, sale, issue or cancellation of the
Company’s own equity instruments. Any
difference between the carrying amount and
the consideration, if reissued, is recognised
in Securities premium . Share options
exercised during the reporting period are
satisfied with treasury shares.

As and when treasury shares are transferred
to employees on exercise after satisfaction
of the vesting condition the balance lying
in treasury share reserve is transferred to
retained earnings

(w) Cash flow statement

Cash flows are reported using the indirect
method, whereby net profit/(loss) before tax is
adjusted for the effects of transactions of a non¬
cash nature and any deferrals or accruals of past
or future cash receipts or payments. The cash
flows from operating, investing and financing
activities of the Company are segregated. Bank
overdrafts are classified as part of cash and cash
equivalent, as they form an integral part of an
entity’s cash management.

(x) New and amended standards

The Company applied for the first-time certain
standards and amendments, which are effective
for annual periods beginning on or after April 01,
2025. The Company has not early adopted any
standard, interpretation or amendment that has
been issued but is not yet effective.

(i) Amendments to Ind AS 21 - Lack of
exchangeability

The Ministry of Corporate Affairs (MCA)
notified the Companies (Indian Accounting
Standards) Amendment Rules, 2025, which
amend Ind AS 21, The Effects of Changes in
Foreign Exchange Rates to specify how an

entity should assess whether a currency is
exchangeable and how it should determine
a spot exchange rate when exchangeability
is lacking. The amendments also require
disclosure of information that enables users
of its financial statements to understand
how the currency not being exchangeable
into the other currency affects, or is expected
to affect, the entity’s financial performance,
financial position and cash flows.

The amendments are effective for annual
reporting periods beginning on or after April
01, 2025. When applying the amendments,
an entity cannot restate comparative
information.

The amendments do not have a material
impact on the Company’s financial
statements.

(ii) Amendments to Ind AS 1 - Classification
of Liabilities as Current or Non-current and
Non-current Liabilities with Covenants

In August 2025, the MCA notified
amendments to paragraphs 69 to 76 of
Ind AS 1 to specify the requirements for
classifying liabilities as current or non¬
current. The amendments clarify:

• What is meant by a right to defer
settlement.

• That a right to defer must exist at the
end of the reporting period.

• That classification is unaffected by the
likelihood that an entity will exercise its
deferral right.

• That only if an embedded derivative in
a convertible liability is itself an equity
instrument would the terms of a liability
not impact its classification.

In addition, a requirement has been
introduced to require disclosure when a
liability arising from a loan agreement is
classified as non-current and the entity’s
right to defer settlement is contingent on
compliance with future covenants within
twelve months.

If there is a breach of a material covenant of
a long term loan arrangement on or before
the end of the reporting period, resulting in
the liability becoming payable on demand
as at the reporting date, and the lender
agrees-after the reporting period but before
the financial statements are approved for

issue-not to demand repayment for at least
12 months as a consequence of the breach,
this shall be treated as an adjusting event.
Accordingly, the entity is not required to
classify the liability as current.

The amendments are effective for annual
reporting periods beginning on or after April
01, 2026 retrospectively in accordance with
Ind AS 8.

The amendment does not have a material
impact on the Company’s Standalone
Financial Statements.

(iii) Amendments to Ind AS 7 and Ind AS 107 -
Supplier Finance Arrangements

In August 2025, the MCA notified
amendments to Ind AS 7 Statement of Cash
Flows and Ind AS 107 Financial Instruments:
Disclosures to clarify the characteristics of
supplier finance arrangements and require
additional disclosure of such arrangements.
The disclosure requirements in the
amendments are intended to assist users
of financial statements in understanding
the effects of supplier finance arrangements
on an entity’s liabilities, cash flows and
exposure to liquidity risk.

The amendment does not have a material
impact on the Company’s Standalone
Financial Statements.

(iv) International Tax Reform-Pillar Two Model
Rules - Amendments to Ind AS 12

In August 2025, the MCA notified
amendments to Ind AS 12 Income Taxes
in response to the OECD’s BEPS Pillar Two
rules and include:

• A mandatory temporary exception
to the recognition and disclosure
of deferred taxes arising from the
jurisdictional implementation of the
Pillar Two model rules; and

• Disclosure requirements for affected
entities to help users of the financial
statements better understand an
entity’s exposure to Pillar Two income
taxes arising from that legislation,
particularly before its effective date.

The mandatory temporary exception - the
use of which is required to be disclosed
- applies immediately. The remaining
disclosure requirements apply for annual
reporting periods beginning on or after April
01, 2025, but not for any interim periods
ending on or before March 31,2026.

The amendment does not have a material
impact on the Company’s Standalone
Financial Statements.

(xi) Standards notified but not yet effective

The new and amended standards that are notified
by the Ministry of Corporate Affairs (MCA), but
not yet effective, up to the date of issuance of the
Company’s financial statements are disclosed
below. The Company will adopt these new and
amended standards, when they become effective.

(i) Amendments to Ind AS 1 - Classification
of Liabilities as Current or Non-current and
Non-current Liabilities with Covenants

In accordance with Ind AS 1 currently
applicable, breach of an immaterial
covenant is ignored deciding in current vs.
non-current classification of liabilities. Also,
in case of breach of a material covenant of a
non-current loan on or before the reporting
date, the entity can obtain waiver from the
lender after the reporting date and continue
to classify the loan as non-current liability. In
accordance with changes to Ind AS 1 already
notified by the MCA, the above relaxations to
classify loan as non-current liability will not
be available from 2026-27 onward and need
to be applied retrospectively. Consequently:

• A breach of either material or
immaterial covenant will trigger current
classification of liability.

• To continue classifying loan as non¬
current liability, entities will need to
obtain waiver from the breach on or
before the reporting date.

The Company is currently assessing the impact
the amendments will have on its Standalone
Financial Statements.

The leasehold rights of the land which was acquired through Business Transfer Agreement, is currently held by the
Company by virtue of orders of National Company Law Tribunal (NCLT).

*The Company amended and restated its Brand License Agreement dated March 06, 2026 with MEMG International India
Private Limited ("Licensor"), under which the Company ("Licensee") received a perpetual licence to the "M" brand for its
hospital and healthcare service business. The value of the "M" brand and the fair value of the equity shares were supported
by valuation reports from a Registered Valuer as required under the applicable provisions of the Companies Act, 2013.
The brand value of the licence has been computed aggregating to '' 1,650.02 Crores. The Company has capitalised the
applicable GST on the above consideration to the Brand. (refer note 28)

4(b) Impairment testing of goodwill and intangible assets with indefinite lives

For impairment testing, goodwill acquired through business combinations has been allocated to the CGUs and brand
acquired during the year has been considered as corporate asset and is tested for impairment at the Company level as
mentioned below.

The Company performed its annual impairment test for years ended March 31,2026 and March 31,2025. The Company
estimates recoverable amount of CGU basis value-in-use method. An analysis of the sensitivity of the computation to a
change in key parameters (operating margin, discount rates and long term average growth rate), based on reasonable
assumptions, did not identify any probable scenario in which the recoverable amount of the CGU would decrease below
its carrying amount. As at year ended March 31,2026, the Company has not identified any indication for impairment of
assets. Key assumptions upon which the Company has based its determinations of value-in-use include:
a) Estimated cash flows based on internal budgets and industry outlook for a period of five years and a terminal growth
rate thereafter.

- The estimated value-in-use of this investment is based on the future cash flows using a 5.00% (March 31,2025:
5.00%) annual growth rate for periods subsequent to the forecast period of 5 years (March 31,2025: 5 years).
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.

- Pre-tax Discount rate of 11.81% (March 31,2025: 1 1.65%), which reflect current market assessment of the risks.
The Company believes that any reasonably possible change in the key assumptions on which a recoverable amount
is based would not cause the aggregate carrying amount to exceed the aggregate recoverable amount.

Notes:

5.1.1 The equity share holding of the Company in HDPL is 50.08% (March 31, 2025: 50.08%) and of NH Fund is 29.82%
(March 31,2025: 29.82%)

5.1.2 On July 01,2024, the Company had acquired 82.65% shareholding and voting shares of MHSPL for an equity value
consideration of '' 985.53 Crores. Further during the year ended March 31, 2025, the Company acquired further
2.29% shareholding and voting shares of MHSPL for an equity consideration of '' 27.33 Crores.

5.1.3 During the year ended March 31, 2022, the Company acquired 73,496 shares of Igenetic Diagnostics Private
Limited for a total consideration of '' 47.80 Crores. During the year ended March 31,2025, pursuant to NCLT order,
the business of Igenetic was demerged into Healthmap Diagnostics Private Limited .

During the year ended March 31,2026, IGenetic has filed for liquidation as on March 17, 2026.

5.1.4 MHEL signed a Share Subscription Agreement on December 22, 2020 to invest an amount of upto '' 80 Crores in
Terrals Technologies Private Limited (Phable) in upto three tranches. The first tranche of '' 40 Crores was invested
on February 26, 2021 by subscribing to 100 equity shares of ''10 each and 7,845 compulsorily convertibles
preference shares of '' 100 each. In the year ended March 31,2022 a further '' 29.99 Crores was invested for 2,197
compulsorily convertibles preference shares of '' 100 each.

During the year ended March 31, 2023, the Company had made provision for impairment of its investment in
Terrals Technologies Private Limited (Phable) of '' 69.99 Crores.

5.1.5 The Company entered into an agreement on October 20, 2015 with Renew, to invest in its equity share capital as a
captive power consumer. Accordingly, on November 27, 2015, the Company invested '' 0.03 Crores in 3,000 equity
shares of '' 100 each at face value towards acquisition of 0.90% stake in equity share capital. During the year 2016¬
17, 2017-18 and 2019-20 the Company invested '' 0.05 Crores in 5,000 equity shares, '' 0.06 Crores in 5,600 equity
shares and '' 0.15 Crores in 5000 equity shares of '' 100 each at face value, includes fair valuation through profit
and loss of '' 0.28 Crores.

5.1.6 MHEL had on September 30, 2020 invested an amount of '' 0.05 Crores in Swasth Digital Health Foundation by
subscribing to 5,000 equity shares of '' 100 each.

5.1.7 During the year ended March 31, 2024, loan given to Arctern has been converted into equity shares for a
consideration of '' 5.00 Crores and made provision for impairment of its investment amounting to '' 5.00 Crores.

5.1.8 MHEL on January 16, 2025 has invested an amount of '' 0.01 Crores in Atria by subscribing to 500 equity shares
as a captive power consumer.

5.1.9 Investment in Terrals Technologies Private Limited (''Terrals'') is fully impaired with no further funding obligation as
on date.

investments are tested for impairment annually and when circumstances indicate that the carrying value may
be impaired. Impairment is determined by assessing the recoverable amount of each investment. When the
recoverable amount of the investment is less than its carrying amount, an impairment loss is recognised. The
recoverable amounts of the above investments have been assessed using a value-in-use model. Key assumptions
upon which the Company has based its determinations of value-in-use include:

- Estimated cash flows based on internal budgets and industry outlook for a period of five years and a
terminal growth rate thereafter.

- The estimated value-in-use of this investment is based on the future cash flows using a 5.00% (March 31,
2025: 5.00%) annual growth rate for periods subsequent to the forecast period of 5 years. 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.

- Pre-tax discount rate of 11.81% (March 31, 2025: 11.65%) , which reflect current market assessment of
the risks specific to the investment. The Company believes that any reasonably possible change in the
key assumptions on which a recoverable amount of value in use is based would not cause the aggregate
carrying amount to exceed the aggregate recoverable amount of the investment.

Notes:

11.2.1 During the year ended March 31, 2025, the Company offered 1,432,389 equity shares (includes Imperius
Healthcare Investments Pte Ltd.: 259,739 equity shares; Kabru Investments Pte. Ltd.: 1 11,998 equity shares;
Kangto Investments Pte. Ltd.: 386,745 equity shares; TPG SG Magazine Pte. Ltd.: 157,563 equity shares) on rights
basis to its existing shareholders for raising upto '' 750 Crores. The rights issue was fully subscribed and allotment
concluded on June 20, 2024.*

11.2.2 On July 13, 2023, Kabru Investments Pte Ltd (Kabru) acquired 2,535,477 equity shares (3.35%) and 7,940,048 equity
shares (10.50%) from Cypress Holdings and Manipal Global Health Services (''MGHS'') respectively. On January 10,
2024, Phoenix Bear Investments LLC acquired 787,278 equity shares (1.04%) and Novo Holdings Invest Asia A/S
acquired 944,734 equity shares (1.25%) from Kabru. On January 31,2024, Seventy Second Investment Company
LLC acquired 2,830,015 equity shares (3.74%) from Kabru. On August 20, 2024 Ammar Sdn Bhd acquired 1,476,535
equity shares (1.92%) from Kabru. Therefore, as of March 31,2026 Kabru holds 5.78% (March 31,2025: 5.90%) in
the Company.*

11.2.3 On July 13, 2023, Kangto Investments Pte Ltd. (Kangto) acquired 2,04,20,112 equity shares (27.00%) of the
Company from MGHS.*

11.2.4 Kabru, Kangto and Imperius Healthcare Investments Pte Ltd (collectively referred to be as Temasek Group)
collectively holds 50.01% shareholding of the Company as of March 31,2026 (March 31,2025: 51.03%) .

11.2.5 On July 14, 2023 TPG Asia VI SF Pte Ltd (''TPG'') transferred 7,952,578 equity shares of the Company to MGHS.
Further, on July 19, 2023 TPG transferred 8,319,305 equity shares of the Company to Manipal Research and
Management Services International (''MRMSI''). On July 19, 2023 MRMSI transferred 8,319,305 equity shares
amounting to 11% shareholding of the Company to TPG SG Magazine Pte Ltd.*

11.2.6 On July 14, 2023 National Investment Infrastructure Fund - II transferred its entire shareholding of 6,390,739 equity
shares to MGHS.^*

11.2.7 Pursuant to the share transfers between MGHS and Kabru, Kangto, TPG, NIIF and MHEWT, the shareholding of
MGHS stood at 20.46% as of March 31, 2024. Cypress Holdings held 3.87% as of March 31,2024. MGHS did not
participate in the rights issue and renounced its rights in favour of Cypress Holdings, MGHS holds 19.68% as of
March 31,2026 (March 31,2025: 20.08%) and Cypress Holdings hold 4.17% as of March 31,2026 (March 31,2025:
4.25%).

11.2.8 During the year ended March 31, 2026, the authorised share capital of the Company was increased by '' 165.00
Crores.

11.2.9 The Company amended and restated its Brand License Agreement dated March 6, 2026 with MEMG International
India Private Limited ("Licensor"), under which the Company ("Licensee") received a perpetual licence to the "M"
brand for its hospital and healthcare service business. The value of the "M" brand and the fair value of the equity
shares were supported by valuation reports from a Registered Valuer as required under the applicable provisions
of the Companies Act, 2013. The brand value of the licence has been computed aggregating to '' 1,650.02 Crores
(excluding Goods and Services tax) and the same was discharged through issuance of 23,820,811 equity shares of
face value '' 2 each at a premium of '' 690.68 per share, on a preferential basis by way of private placement to the
Licensor.

11.4 Terms/rights attached to equity shares:

The Company has only one class of shares referred to as equity shares having a par value of '' 2 each (March 31,2025:
'' 10 each-refer note 27.1.1). Each holder of equity shares is entitled to one vote per share. The Company declares and
pays dividends in Indian rupees. The final dividend proposed by the Board of Directors is subject to the approval of the
shareholders in the ensuing Annual General Meeting. During the year, the Company has not declared any dividend.

In the event of liquidation of the Company, the holders of equity shares would be entitled to receive remaining assets of
the Company after distribution of all preferential amounts. The distribution will be in proportion to number of equity shares
held by shareholders.

11.5 Shares held by holding/ultimate holding company and/or their subsidiaries/associates

As of March 31, 2026 and March 31, 2025 there is no holding/ultimate holding company and/or their subsidiaries/
associates for the Company.

13.1.2 The terms and conditions of all the term loans from banks and financial institutions are similar and are as

follows:

During the year ended March 31, 2026 and March 31, 2025, the Company entered into facility agreement with

its lenders and offered consolidated security as below:-

a) first ranking pari passu Security Interest over all movable fixed assets and current assets of the Company
along with MHEIPL, MHDPL, MHBPL & MHPL including but not limited to movable plant and machinery,
machinery spares, tools and accessories, furniture, fixtures, intangible assets (including goodwill, trademarks
and patents) and all other movable properties of whatsoever nature (both present and future) (other than
any debt service reserve amounts (including in the form of fixed deposits or lien marked mutual funds) or
debt service reserve accounts required to be maintained or maintained with respect to the Facilities) as per
the facility agreement;.

b) first ranking pari passu Security Interest over specific Immovable Properties of the Company, MHEIPL,
MHDPL, & MHPL.

c) first ranking pari passu Security Interest, by way of hypothecation, over all leasehold improvements of all
Immovable Properties and Excluded Properties.

d) exclusive Security Interest over the debt service reserve amounts (including in the form of fixed deposits or
lien marked mutual funds) or debt service reserve accounts required to be maintained or maintained with
respect to such Facility).

13.2.1 Notes

The Company has taken on lease certain building for hospital operations, hostels for staff, equipments, office
spaces and certain software for use in the course of its business.

Refer notes 2.2(h) in relation to accounting policy for leases.

Refer note 4 for depreciation charge for right-of-use assets by class of underlying asset and additions to right-of-
use assets and the carrying amount of right-of-use assets at the end of the reporting year by class of underlying
asset.

Refer note 25.1 in relation to short term leases and leases of low-value assets accounted for applying paragraph 6
of Ind AS 116.

Refer note 34(c) disclosure on maturity analysis of lease payments.

Refer note 38 disclosure on cash outflows for lease liabilities.

26 EXCEPTIONAL ITEMS

(i) On November 21, 2025, the Government of India notified the four Labour Codes - the Code on Wages, 2019, the
Industrial Relations Code, 2020, the Code on Social Security, 2020, and the Occupational Safety, Health and Working
Conditions Code, 2020 - consolidating 29 existing labour laws.

The Company has assessed the financial implications of these changes, based on the best available information and
in line with guidance provided by the Institute of Chartered Accountants of India, which has resulted in increase of
provision for employee benefits by '' 10.80 Crores. Considering the impact arising out of an enactment of the new
legislation is an event of non-recurring nature, the Company has presented this incremental amount as "Impact of
Labour Codes" under "Exceptional Item" in the Standalone Statement of Profit and Loss for the year ended March 31,
2026.

The Company continues to monitor the finalisation of relevant rules and clarifications from the Government on all
aspects of the labour codes and would accordingly take necessary steps for compliance thereof and also provide
appropriate accounting effect on the basis of such developments, as needed.

(ii) The Company has agreed for a discretionary one-time incentive to certain employees in recognition of their
contribution to the Company’s growth. The incentive is subject to a clawback condition linked to continued
employment, as per the terms of the agreement. The Company has recognised expense of '' 10.84 Crores for the
amortised portion of incentive cost for the year ended March 31,2026.

27.1.1 During the year ended March 31,2026, the Company sub-divided its equity shares by reducing the nominal value
of each equity share from '' 10 to '' 2. Accordingly, each equity share of '' 10 was sub-divided into five equity shares
of '' 2 each. As a result, the Authorised Capital of '' 135.00 Crores which was earlier divided into 135,000,000 equity
shares of '' 10 each was changed to 675,000,000 equity shares of '' 2 each and the Issued and Paid up Capital of
'' 77.06 Crores which was earlier divided into 77,062,434 equity shares of '' 10 each was changed to 385,312,170
equity shares of '' 2 each.

27.1.2 During the year ended March 31, 2026, bonus issue of equity shares in the ratio of 2:1, i.e., two equity shares for
every one equity share held was issued and allotted to existing shareholders. To accommodate the bonus issue,
the Authorised Share Capital was increased from '' 135.00 Crores divided into 675,000,000 equity shares of '' 2
each to '' 255.00 Crores divided into 1,275,000,000 equity shares of '' 2 each. Upon allotment of bonus shares, an
amount of '' 154.13 Crores have been capitalised from the Company’s securities premium.

In compliance with IND AS - 33 Earnings Per Share, the disclosure of basic and diluted earnings per share for all years
presented has been arrived at after giving effect to the above sub-division and bonus issue.

There are certain litigations for the period prior to February 18, 2014 as stated in Annexure 23 of the BTA entered
by Manipal Hospitals (Jaipur) Private Limited (merged with Manipal Hospitals (Dwarka) Private Limited) with
Soni Hospital Private Limited amounting to '' 5.03 Crores in respect of patient compensation. The cases are
pending with various judicial authorities. Pursuant to Section 4.13 (iii and iv) of the BTA, any claims including
penalties arising on these litigations shall be borne by Soni Hospital Private Limited.

The Company is confident that its position will be upheld for above litigations and accordingly the outcome of
these will not have material effect on the Standalone Financial Statements.

(A) (ii) Income Tax Demand

The Company received two demand notices u/s 156 of the Income Tax Act, 1961 for Assessment Year (''AY'') 2014¬
15 relating to disallowance of back-office charges, disallowance u/s 14A and demand of Dividend Distribution
tax and non consideration of self-assessment tax paid . The Company filed an appeal before Commissioner
of Income Tax (''CIT'') (Appeals) and got favourable order for back-office charges. Subsequently, the Company
filed an appeal with Income tax Appellate Tribunal (''ITAT'') for disallowance u/s 14A and the Assessing Officer
had filed an appeal with ITAT for back-office charges. Both matters were held in favour of the Company by the
ITAT. In relation to demand of Dividend Distribution tax and non consideration of self assessment tax paid , the
Company had filed a rectification request to the AO and the same is still pending disposal. Total contingency of
'' 3.30 Crores (March 31,2025''3.30 Crores).

During the year ended March 31, 2019, the Company had received the ITAT order dated June 27, 2018, for AY
2011-12 in which ITAT had held that Manipal Health Systems Private Limited (''MHS '') and Manipal Health
Enterprises Limited (formerly known as Manipal Health Enterprises Private Limited) (''MHE'') demerger is not
a slump sale and also allowed the back-office expenses, partial depreciation and remanded back one matter
to Assessing Officer. Against ITAT order, the department had filed an appeal in the High Court of Karnataka.
Karnataka HC held the matters in favour of the Company except one matter which was previously remanded
back to Assessing Offer for reconsideration. The matters of one consultancy fee and 14A disallowance are with
AO for reconsideration having a tax impact of '' 1.28 Crores (March 31,2025''1.28 Crores).

During the year ended March 31,2020, the Company has received the order U/s 143(3) of the Income Tax Act,
1961 for AY 2017-18 as per which AO has not allowed short term capital loss on account of relinquishment of
its investment in the shares of a subsidiary and disallowed certain other expense consisting demand of '' 27.61
Crores. The Company had filed an appeal before CIT (Appeals) and on September 15, 2025, CIT(Appeals) held
the matters in favour of the Company. The aforesaid appeal order has resulted in a tax impact of '' Nil (March
31, 2025: '' 27.61 Crores). Against this CIT(Appeals) order, department has filed an appeal with ITAT and the
Company is confident that its position will be upheld for above Income Tax litigations and the likelihood of an
adverse outcome is remote.

During the year ended March 31, 2021, the Company has received demand notices under section 156 of the
Income-tax Act, 1961 for AY 2018-19 towards disallowance of back-office expenses, provision for doubtful
debts, Ind-AS adjustment, disallowance under section 14A and set off of brought forward capital loss consisting
demand of '' 21.20 Crores. The Company had filed an appeal before CIT (Appeals) against the demand notice.
On September 15, 2025, CIT(Appeals) held the matters in favour of the Company. The aforesaid appeal order has
resulted in a tax impact of '' Nil (March 31,2025: '' 21.20 Crores). Against this CIT(Appeals) order, department
has filed an appeal with ITAT and the Company is confident that its position will be upheld for above Income Tax
litigations and the likelihood of an adverse outcome is remote.

The Company is confident that its position will be upheld for above income tax litigations and accordingly the
outcome of these will not have material effect on the Standalone Financial Statements.

(A) (iii) Indirect Tax Demand

(a) The Company has received a show cause notice under section 124 of the Customs Act, 1962, for the
financial year 2012-13, from Assistant Commissioner of Customs, as to why customs duty of '' 0.08 Crores
(March 31, 2025''0.08 Crores) with interest and penalty should not be demanded with regard to short
payment of customs duty due to incorrect classification of goods.

(b) The Company received a notice from the Commercial Tax officer, wherein a Luxury Tax adjustment of ''
2.40 Crores (March 31,2025''2.40 Crores) has been made on claim for improper exemption for financial
years 2010-11,2011-12 and 2012-13.

(c) During the year ended March 31, 2021, the Company has received proposition notice for an amount of
'' 1.09 Crores (March 31, 2025 '' 1.09 Crores) (including interest) from the Assistant Commissioner of
Commercial Taxes, (Luxury Tax) asking to furnish the details of accommodation charges collected in ICU
as well as in ward for 2012-13. The Company has replied to the department stating that the case is time
barred and requested to drop the proceedings. Further there is no communication from the department.
However, the same has been disclosed as contingent liability.

(d) During the year ended March 31,2025, the Company has received an order issued by Joint Commissioner
for the period March’21 to September’22, wherein GST demand of '' 5.63 Crores and equal amount of
'' 5.63 Crores as penalty with interest is raised towards Non- Payment of GST on Supply of COVID-19
vaccines and its related vaccination charges being preventive in nature, aggregating to '' 11.26 Crores.
Aggrieved by the impugned order, the Company has filed a Writ before Hon’ble High Court of Karnataka and
obtained the stay.

During the current year, the Hon’ble Supreme Court held that specialised medical services are preventive and
curative in nature and is covered within the "Healthcare Services" exemption. Basis this allegation of the GST
Deptt that Covid Vaccination would be subject to GST because it is preventive in nature, is nullified due to above
SC judgement. The Company is confident that its position will be upheld for above litigations and the likelihood
of an adverse outcome is remote.

Additionally, the Company is also involved in other disputes, lawsuits and claims, including commercial matters,
which arise from time to time in the ordinary course of business. The Company believes that there are no such
pending matters that are expected to have any material adverse effect on its Standalone Financial Statements.
Pending resolution of the respective proceedings, it is not practicable for the Company to estimate the timings
of cash outflows, if any, in respect of the above as it is determinable only on receipt of judgements/decisions
pending with various forums /authorities. The Company is confident that its position will be upheld for above
Indirect tax litigations and accordingly the outcome of these will not have material effect on the Standalone
Financial Statements.

(C) Indemnities for performance given on behalf of third parties

During the year ended March 31, 2021, the Company has given indemnity against performance of third parties to
RSDH (Malaysia) Sdn Bhd, MYR 36.96 Crores (March 31, 2025 MYR 36.96 Crores) equivalent to '' 853.22 Crores
(March 31,2025''711.20 Crores) relating to the sale of Manipal Hospitals Sdn. Bhd., Malaysia.

(D) The Company along with MHPL, MHBPL, MHDPL and MHEIPL have provided security to various lenders in the form
of first ranking pari passu charge over Immovable properties including lease hold improvements, Movable Fixed
Assets, Intangibles assets and Current Assets (as defined in the facility agreements) for the term loans amounting
to '' 4,930.63 Crores (March 31 2025: '' 4,663.53 Crores) availed by the Company, MHPL, MHBPL, MHDPL, HCMCT
(Silo), MHEIPL and MH Eastern.

(E) The Company, as per the Employees’ provident Fund (EPF) and Miscellaneous provisions Act, 1952 (''the Act’) is
required to contribute provident fund at a certain defined percentage on basic wages (including certain allowances)
and along with employee’s contribution it has to be deposited with the EPF authorities. On February 28, 2019, the
Supreme Court of India held that allowances meeting certain conditions paid by establishments to its employees
should also be considered as "basic wages" while computing provident fund amounts for employees whose basic
wages is less than certain statutory thresholds. This court ruling may have an impact of increasing Company’s
liability towards provident fund contributions which is a defined contribution plan. However, the Company based on
the legal advice in this EPF matter believes that there is a considerable uncertainty due to which provision cannot be
estimated reliably of the retrospective impact on EPF contribution.

30 CAPITAL COMMITMENTS AND OTHER COMMITMENTS

As at March 31,2026, the Company has a commitment towards purchase of capital assets of '' 938.60 Crores (March 31,

2025''993.65 Crores) subject to fulfilment of certain conditions subsequent.

(i) Defined contribution plan:

Amount recognised and included in note 22, ''Contribution to provident and other funds’ in statement of profit and
loss of '' 28.53 Crores (March 31,2025''22.68).

(ii) Defined benefit plan:

The Company has a defined benefit gratuity plan. Under this plan, every employees who are entitled as per the Gratuity
Act, gets a gratuity on departure at 15 days of last drawn salary for each completed year of service. The gratuity plan
is a funded plan and the Company makes contributions to funds maintained with an insurance company. However,
the Company has created a trust on March 30, 2013.

The following tables summarise the components of net benefit expense recognised in the statement of profit and
loss and amounts recognised in the balance sheet.

The Company provides share-based payment schemes to its employees. The relevant details of respective schemes and
grants are as below.

32.1 Manipal Health Enterprises Employee Stock Option Plan - 2024 (‘New Scheme 2024'')

During the year ended March 31,2025, the board of directors approved equity settled Manipal Health Enterprises Employee
Stock Option Plan - 2024 (''New Scheme 2024’) for issue of stock options to the key employees and directors of the
Company. According to the New Scheme 2024, the employee selected by the compensation committee from time to time
are entitled to options, subject to satisfaction of the prescribed vesting conditions based on performance and passage of
time. The contractual life (comprising the vesting period and the exercise period) of options granted is 11 years from the
date of grant. The stock options granted under the scheme vest in a graded manner over the vesting period.

33 FAIR VALUES AND HIERARCHY

Accounting classification and fair value of financial instruments is as follows. The Company uses the following hierarchy
for determining and disclosing the fair value of financial instruments by valuation technique:

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly
(i.e. as prices) or indirectly (i.e. derived from prices).

Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged
in a current transaction between willing parties, other than in a forced or liquidation sale.

The following methods and assumptions were used to estimate the fair value:

- The fair value of the quoted mutual funds are at Level 1 of Fair value hierarchy and are measured based on Net Asset
Value (NAV) in active markets at the reporting date.

- The fair value of the financial assets (other than mutual funds) and financial liabilities were based on amortised cost
at the reporting date.

34 FINANCIAL RISK MANAGEMENT

The Company’s principal financial liabilities, comprise loans and borrowings, trade and other payables. The main purpose
of these financial liabilities is to finance the Company’s operations. The Company’s principal financial assets include
loans, investments, trade and other receivables, inter-corporate deposits and cash and cash equivalents that are derived
directly from its operations.

The Company’s activities expose it to market risk, credit risk and liquidity risk. The Company’s management oversees the
management of these risk and works towards minimising the potential adverse effects, if any, on its financial performance.
A. Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of
changes in market prices. Market risk comprises interest rate risk and currency rate risk. Financial instruments
affected by market risk include borrowings, investments and bank and other deposits. The sensitivity analyses in
the following sections relate to the position as at March 31,2026 and March 31,2025. The sensitivity of the relevant
Profit and Loss item is the effect of the assumed changes in the respective market risks. This is based on the
financial assets and financial liabilities held as of March 31,2026 and March 31,2025.

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because
of changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates
relates primarily to the Company’s debt obligations with floating interest rates in form of Term loans. The
Company monitors the movement in interest rates on an ongoing basis.

Sensitivity analysis for variable rate instruments

Based on the closing balance of variable rate instruments, an increase/decrease in interest rate by 1%, with
all other variables remaining constant would result in increase/decrease in profit or loss and equity by '' 6.06
Crores (year ended March 31,2025: '' 4.5 Crores).

(ii) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign
exchange rates relates primarily to the Company’s operating activities (when revenue or expense is denominated
in a foreign currency), the Company’s net investments in foreign subsidiaries and financial guarantees given to
foreign subsidiaries. The Company monitors foreign exchange rates on an ongoing basis.

Foreign currency risk sensitivity

The sensitivity of profit or loss to changes in exchange rates arises mainly from foreign currency denominated
financial instruments and the impact on equity arises from changes in foreign exchange rates relating to the
Company’s net investments in foreign subsidiaries which are primarily in USD. The following table demonstrates
the sensitivity to a reasonably possible change in USD exchange rates, with all other variables held constant:
Depreciation of '' against USD by 1% results in decrease in profit before tax by '' 0.53 (March 31,2025 by '' Nil)
and appreciation of '' against USD by 1% results in increase by the same amount.

Credit risk is the risk that the counterparty will not meet its obligation under a financial instrument or customer
contract, leading to financial loss. The credit risk arises principally from its trade receivables, cash and cash
equivalents and financial assets.

Credit risk is controlled by analysing credit limits and creditworthiness of customers on a continuous basis to whom
credit has been granted after obtaining necessary approvals for credit. The collection from the trade receivables are
monitored on a continuous basis by the management.

(i) Trade receivables:

The Company’s exposure to credit risk is influenced mainly by the characteristics of each customer. Credit risk is
controlled by analysing credit limits and creditworthiness of payors/customers on a continuous basis to whom
credit has been granted after obtaining necessary approvals for credit However, management also considers
the factors that may influence the credit risk of its customer base, including the default risk associated with the
industry and country in which customers operate.

Loss rates are based on actual credit loss experience over the past few years, current conditions and forecasts
of future economic conditions.

(ii) Other receivables:

The Company establishes an allowance for impairment that represents its estimate of expected losses in
respect of other receivables based on the past and the recent collection trend. The maximum exposure to credit
risk as at reporting date is primarily from other receivables amounting to '' 20.29 Crores (March 31, 2025: ''
24.5 Crores). The movement in allowance for impairment in respect of other receivables during the year was as
follows:

(iii) Financial instruments and deposits:

Credit risk on cash and cash equivalents including fixed deposits and inter-company deposits is limited as
the Company generally transacts with banks with high credit ratings assigned by international and domestic
credit rating agencies and its own subsidiaries. Investments of surplus funds, temporarily, are made only
with approved counterparties, who meet the minimum threshold requirements under the counterparty risk
assessment process.

C. Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with
its financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach to
managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they
are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the
Company’s reputation. Also, the Company has unutilised credit limits with banks.

35 (A) Capital management

The primary objective of Company’s capital management is to ensure that it maintains an optimum financing
structure and healthy returns in order to support its business and maximise shareholder value.

The Company manages its capital structure and makes adjustments, in light of the changes in economic conditions
or business requirements.

The Company monitors capital using a gearing ratio which is net debt divided by total equity plus net debt as shown
below.

- Net debt includes borrowings, lease liabilities (long term and short term) less cash and cash equivalents,
investment in mutual funds and other investments and

- Total equity comprises of issued share capital and all other equity components attributable to equity share
holder.

35 (B) During the year ended March 31, 2023, the Income Tax Department conducted a search under Section 132 of the

Income Tax Act, 1961 at the registered office of the Company as well as certain hospital location. Pursuant to
this search, the Company received assessment orders wherein certain expenses were disallowed, resulting in the
issuance of demand notices under Section 156 of the Act for multiple assessment years.

In financial year 2024-25, assessment orders were received for Assessment Years (AY) 2019-20 to 2023-24. For
AY 2022-23, AY 2021-22, and AY 2023-24, demands of '' 8.42 Crores, '' 6.55 Crores, and '' 8.03 Crores respectively
were raised. For AY 2019-20 and AY 2020-21, no demand was raised; however, the refunds claimed in the income
tax returns for those years were reduced. Appeals relating to AY 2019-20, 2020-21, 2022-23, and 2023-24 have
been filed by the Income Tax Department before the Income Tax Appellate Tribunal (ITAT).

Subsequently, in financial year 2025-26, further assessment orders were received for AY 2015-16 to 2018-19 and
2024-25. Demands aggregating to '' 39.66 Crores were raised for these years, comprising '' 8.67 Crores for AY
2015-16, '' 0.36 Crores for AY 2016-17, '' 22.79 Crores for AY 2018-19, and '' 7.84 Crores for AY 2024-25, while no
demand was raised for AY 2017-18 however, the refunds claimed in the income tax return was reduced.

The Company filed appeals before the Commissioner of Income Tax (Appeals) [CIT(A)] and received favourable
orders for all the above assessment years during February 2026 and May 2026.

With specific reference to AY 2017-18 and AY 2018-19, the Company received favourable CIT(A) orders against the
assessments originally passed under Section 143(3). However, while passing reassessment orders under Section
147, the Assessing Officer did not give effect to these favourable appellate orders. Accordingly, the Company has filed
rectification applications under Section 154 of the Act for these two years. For AY 2021-22, the Company withdrew
its appeal before the CIT(A) on August 29, 2025.

The Company is confident that its position will be upheld for above Income Tax litigations and the likelihood of an
adverse outcome is remote. Accordingly, the outcome of these litigations are not expected to have a material effect
on the Standalone Financial Statements.

36 SEGMENT INFORMATION

The Board of Directors of the Company has been identified as the Chief Operating Decision Maker (CODM) as defined
by Ind AS 108, Operating Segments. The Company operates in a single business and geographical segment (Healthcare
services in India) and the CODM reviews the financial information at an entity level. Hence, the Company has determined
that disclosures given at the entity level suffice the disclosure requirements of Ind AS 108.

Refer note 1.

37 CORPORATE SOCIAL RESPONSIBILITY (''CSR'') EXPENDITURE

Consequent to the requirements of Section 135 and Schedule VII of the Companies Act, 2013, the Company is required
to contribute 2% of its average net profits during the immediately three preceding financial years in pursuance of its
Corporate Social Responsibility Policy.

The Company has constituted a CSR committee in accordance with the provisions of the Companies Act, 2013. The focus
of CSR activities of the Company comprise promotion of healthcare, education, gender equality, ensuring environment
sustainability, training for rural sports and rural development objects. The amount required to be spent towards the CSR
activities as per Section 135 and the CSR activities undertaken by the Company is given below:

(a) Gross amount approved and required to be spent by the Company for the year ended March 31,2026 is '' 9.31 Crores
(March 31,2025: '' 7.90 Crores).

(b) Amount spent:

Promoting healthcare, education, gender equality, ensuring environment sustainability, training for rural sports and
rural development objects.

41 ACCOUNTING RATIOS

i)