3.6 Provisions (other than employee benefits)

A provision is recognised if, as a result of a past event, the
Company has a present legal or constructive obligation that
can be estimated reliably, and it is probable that an outflow of
economic benefits will be required to settle the obligation. The
amount recognised as a provision is the best estimate of the
consideration required to settle the present obligation at the
reporting date, taking into account the risks and uncertainties
surrounding the obligation. Where a provision is measured using
the cash flows estimated to settle the present obligation, its
carrying amount is the present value of those cash flows (when
the effect of the time value of money is material).

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.

3.7 Revenue

The Company generates revenue from rendering of hospital services
(hospital and medical services), revenue from sale of pharmacy,
revenue from canteen services, revenue from consultancy
services and other operating income. Revenue from Contracts
with Customers (“Ind AS 115"), establishes a comprehensive
framework for determining whether, how much and when revenue
is recognised. Under Ind AS 115, revenue is recognised when a
customer obtains control of the goods or services in an amount that
reflects the consideration which the Company expects to receive in
exchange for those products or services. In calculating the variable
considerations, the Company considers the nature and coverage
through insurance and other parties, the history of adjustments
and rejections, and the probability of rejections, discounts, rebates,
price concessions, or other similar items. The impact of these
considerations is reflected as adjustments to revenue.

Disaggregation of revenue

The Company disaggregates revenue from hospital services
(hospital and medical services), revenue from sale of pharmacy,

revenue from canteen services, revenue from consultancy
services and other operating income.The company further
disaggregates revenue from hospital and medical services
based on category of customers (cash and credit) and based
on nature of treatment (In-patient and Out-patient). The
Company believes that this disaggregation best depicts how the
nature, amount, timing and certainty of Company's revenues
and cash flows are affected by industry, market and other
economic factors.

Contract balances

The Company classifies the right to consideration in exchange
for sale of services where invoice is raised as trade receivables,
where invoice has not been raised as unbilled revenue and
advance consideration as advance from customers.

Performance obligations and revenue recognition policies

Revenue is measured based on the consideration specified in
a contract with a customer. The Company recognises revenue
when it transfers control over a good or service to a customer

i.e. at the transaction price when each performance obligation
is satisfied at a point in time when inpatient/outpatients has
actually received the service except for few services where
the performance obligation is satisfied over a period of time.
The following details provide information about the nature
and timing of the satisfaction of performance obligations in
contracts with customers, including significant payment terms,
and the related revenue recognition policies.

(a) Revenue from hospital and medical services

The Company's revenue from hospital and medical
services comprises of income from hospital services.

Revenue from hospital services to patients is recognised
as revenue when the related services are rendered unless
significant future uncertainties exist. Revenue is also
recognised in relation to the services rendered to the
patients who are undergoing treatment/ observation
on the balance sheet date to the extent of the services
rendered. Revenue is recognised net of discounts,
concessions given to the patients and estimated
disallowances for patients covered under insurance.

Unbilled receivable represents value to the extent of
hospital and medical services are rendered to the patients
who are undergoing treatment/observation on the balance
sheet date and is not billed as at the balance sheet date.

(b) Revenue from sale of pharmacy

Revenue from sale of pharmacy within the hospital
premises is recognised when the control in the goods are
transferred to the customer and no significant uncertainty
exists regarding the amount of the consideration that will
be derived from the sale of the goods and regarding its

collection. The amount of revenue recognised is net of
sales returns, taxes and duties, wherever applicable.

(c) Other operating income

The Company's revenue from other operating income
comprises primarily of revenue from medical courses
conducted at the hospital and income from revenue
sharing agreements.

(d) Revenue from consultancy services

The Company's revenue from consultancy services is
based on the agreements/arrangements with the
customers as the service is performed.

(e) Revenue from canteen services

Revenue from canteen services is recognised at a point in
time when control is transferred.

3.8 Foreign currency transactions and translations

Transactions in foreign currencies are recorded in the functional
currency of the Company at the exchange rates at the dates
of the transactions or an average rate if the average rate
approximates the actual rate at the date of the transaction.

Monetary assets and liabilities denominated in foreign
currencies are translated into the functional currency at the
exchange rate at the reporting date. Non-monetary assets and
liabilities that are measured at fair value in a foreign currency
are translated into the functional currency at the exchange rate
when the fair value was determined. Non-monetary assets
and liabilities that are measured based on historical cost in a
foreign currency are translated at the exchange rate at the date
of the transaction. Exchange differences are recognised in the
standalone statement of profit and loss.

3.9 Leases

Determining whether an arrangement contains a lease

At inception of an arrangement, it is determined whether
the arrangement is or contains a lease. At inception or on
reassessment of the arrangement that contains a lease,
the payments and other consideration required by such an
arrangement are separated into those for the lease and those
for other elements on the basis of their relative fair values.

i. Company as a lessee

The Company accounts for each lease component
within the contract as a lease separately from non¬
lease components of the contract and allocates the
consideration in the contract to each lease component
on the basis of the relative stand-alone price of the lease
component and the aggregate stand-alone price of the
non-lease components.

The Company recognises right-of-use asset representing
its right to use the underlying asset for the lease term at the
lease commencement date. The cost of the right-of-use
asset measured at inception shall comprise of the amount
of the initial measurement of the lease liability adjusted for
any lease payments made at or before the commencement
date less any lease incentives received, plus any initial direct
costs incurred and an estimate of costs to be incurred by
the lessee in dismantling and removing the underlying
asset or restoring the underlying asset or site on which
it is located. The right-of-use assets is subsequently
measured at cost less any accumulated depreciation,
accumulated impairment losses, if any and adjusted for
any remeasurement of the lease liability. The right-of-use
assets is depreciated using the straight-line method from
the commencement date over the shorter of lease term
or useful life of right-of-use asset. The estimated useful
lives of right-of-use assets are determined on the same
basis as those of property, plant and equipment. Right-
of-use assets are tested for impairment whenever there
is any indication that their carrying amounts may not be
recoverable. Impairment loss, if any, is recognised in the
standalone statement of profit and loss.

The Company measures the lease liability at the present
value of the lease payments that are not paid at the
commencement date of the lease. The lease payments
are discounted using the interest rate implicit in the lease,
if that rate can be readily determined. If that rate cannot
be readily determined, the Company uses incremental
borrowing rate. The lease payments shall include fixed
payments, variable lease payments that depend on an
index or rate, initially measured using the index or rate
at the commencement date, residual value guarantees,
exercise price of a purchase option where the Company is
reasonably certain to exercise that option and payments of
penalties for terminating the lease, if the lease term reflects
the lessee exercising an option to terminate the lease. The
lease liability is subsequently remeasured by increasing
the carrying amount to reflect interest on the lease liability,
reducing the carrying amount to reflect the lease payments
made and remeasuring the carrying amount to reflect any
reassessment or lease modifications or to reflect revised in¬
substance fixed lease payments. The Company recognises
the amount of the re-measurement of lease liability due to
modification as an adjustment to the right-of-use asset and
the statement of profit and loss depending upon the nature
of modification. Where the carrying amount of the right-of-
use asset is reduced to zero and there is a further reduction
in the measurement of the lease liability, the Company
recognises any remaining amount of the re-measurement
in the standalone statement of profit and loss.

The Company has elected not to apply the requirements
of Ind AS 116, Leases, to short-term leases of all assets
that have a lease term of 12 months or less. The lease
payments associated with these leases are recognized as
an expense on a straight-line basis over the lease term.

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 the line “Other expenses" in the standalone
statement of profit and loss.

ii. Company as a lessor

At the inception of the lease the Company classifies each
of its leases as either an operating lease or a finance lease.
Whenever the terms of the lease transfer substantially
all the risks and rewards of ownership to the lessee, the
contract is classified as a finance lease. All other leases are
classified as operating leases. The Company recognises
lease payments received under operating leases as income
on a straight- line basis over the lease term. In case of a
finance lease, finance income is recognised over the lease
term based on a pattern reflecting a constant periodic rate
of return on the lessor's net investment in the lease.

Amounts due from lessees under finance leases are
recognised as receivables at the amount of the Company's
net investment in the leases. When the Company is an
intermediate lessor, it accounts for its interests in the
head lease and the sub-lease separately. It assesses
the lease classification of a sub-lease with reference to
the right-of-use asset arising from the head lease, not
with reference to the underlying asset. If a head lease
is a short-term lease to which the Company applies the
exemption described above, then it classifies the sub¬
lease as an operating lease.

If an arrangement contains lease and non-lease
components, the Company applies Ind AS 115
Revenue from contracts with customers to allocate the
consideration in the contract.

3.10 Recognition of dividend income, interest income or interest

expense

(a) Dividend income is recognised in the standalone
statement of profit and loss on the date on which the right
to receive payment is established.

(b) Interest on deployment of surplus funds is recognized
using the time proportionate method, based on the
transactional interest rates.

(c) Interest income or expense is recognised using the
effective interest method.

The 'effective interest rate' is the rate that exactly
discounts estimated future cash payments or receipts
through the expected life of the financial instrument to
the gross carrying amount of the financial asset or the
amortised cost of the financial liability.

(d) In calculating interest income and expense, the effective
interest rate is applied to the gross carrying amount of
the asset (when the asset is not credit-impaired) or to the
amortised cost of the liability.

3.11 Income tax

Income tax comprises current and deferred tax. It is recognised
in the standalone statement of profit and loss except to the
extent that it relates to an item recognised directly in equity or
in other comprehensive income.

i. Current tax

Current tax comprises the expected tax payable or
receivable on the taxable income or loss for the year and
any adjustment to the tax payable or receivable in respect
of previous years. The amount of current tax reflects the
best estimate of the tax amount expected to be paid or
received after considering the uncertainty, if any, related to
income taxes. It is measured using tax rates (and tax laws)
enacted or substantively enacted by the reporting date.

Current tax assets and current tax liabilities are offset
only if there is a legally enforceable right to set off the
recognised amounts, and it is intended to realise the asset
and settle the liability on a net basis or simultaneously.

A provision is recognised for those matters for which
the tax determination is uncertain but it is considered
probable that there will be a future outflow of funds to
a tax authority. The provisions are measured at the best
estimate of the amount expected to become payable.
The assessment is based on the judgement of tax
professionals within the Company supported by previous
experience in respect of such activities and in certain cases
based on specialist independent tax advice.

ii. Deferred tax

Deferred tax is recognised in respect of temporary
differences between the carrying amounts of assets
and liabilities for financial reporting purposes and the
corresponding tax bases used for taxation purposes.
Deferred tax assets are recognised for carry forward of
unused tax losses and tax credits to the extent that it is
probable that future taxable profit will be available against
which such losses and credits can be utilised. Deferred tax
assets are recognised to the extent that it is probable that
future taxable profits will be available against which they
can be utilised. The existence of unused tax losses is strong
evidence that future taxable profit may not be available.

Therefore, in case of a history of recent losses, the Company
recognises a deferred tax asset only to the extent that it
has sufficient taxable temporary differences or there is
convincing other evidence that sufficient taxable profit will
be available against which such deferred tax asset can be
realised. Deferred tax assets - unrecognised or recognised,
are reviewed at each reporting date and are recognised/
reduced to the extent that it is probable/ no longer probable
respectively that the related tax benefit will be realised.

Deferred tax is measured at the tax rates that are
expected to apply to the period when the asset is realised
or the liability is settled, based on the laws that have
been enacted or substantively enacted by the reporting
date. The measurement of deferred tax reflects the tax
consequences that would follow from the manner in which
the Company expects, at the reporting date, to recover or
settle the carrying amount of its assets and liabilities.

Deferred tax assets and liabilities are offset if there is a
legally enforceable right to offset current tax liabilities and
assets, and they relate to income taxes levied by the same
tax authority on the same taxable entity, or on different
tax entities, but they intend to settle current tax liabilities
and assets on a net basis or their tax assets and liabilities
will be realised simultaneously.

3.12 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 are interest and other costs (including exchange
differences relating to foreign currency borrowings to the extent
that they are regarded as an adjustment to interest costs)
incurred in connection with the borrowing of funds. Borrowing
costs directly attributable to acquisition or construction of an
asset which necessarily take a substantial period of time to get
ready for their intended use are capitalised as part of the cost of
that asset until such time as the asset is substantially ready for
their intended use or sale. Other borrowing costs are recognised
as an expense in the period in which they are incurred.

3.13 Financial instruments

i. Recognition and initial measurement

Trade receivables and debt securities issued are initially
recognised when they are originated. All other financial
assets and financial liabilities are initially recognised
when the Company becomes a party to the contractual
provisions of the instrument.

A financial asset or financial liability is initially measured
at fair value, except for trade receivables that do not have
a significant financing component which are measured
at transaction price. Transaction costs that are directly
attributable to the acquisition or issue of financial assets
and financial liabilities (other than financial assets and
financial liabilities at fair value through profit or loss -
FVTPL) are added to or deducted from the fair value of the
financial assets or financial liabilities, as appropriate, on
initial recognition. Transaction costs directly attributable
to the acquisition of financial assets or financial liabilities
at fair value through profit or loss are recognised
immediately in standalone statement of profit and loss.

ii. Classification and subsequent measurement

Financial assets

On initial recognition, a financial asset is classified as

either at amortised cost, FVTPL or fair value through other
comprehensive income (FVOCI).

Financial assets are not reclassified subsequent to their
initial recognition, except if and in the period the Company
changes its business model for managing financial assets.

A financial asset is measured at amortised cost if it meets
both of the following conditions:

- the asset is held within a business model whose
objective is to hold assets to collect contractual

cash flows; and

- the contractual terms of the financial asset give
rise on specified dates to cash flows that are solely
payments of principal and interest on the principal
amount outstanding.

On initial recognition of an equity investment that is not
held for trading, the Company may irrevocably elect to
present subsequent changes in the investment's fair value
in OCI (designated as FVOCI - equity investment). This
election is made on an investment-by-investment basis.

All financial assets not classified as measured at amortised
cost or FVOCI as described above are measured at FVTPL.
This includes all derivative financial assets. On initial

recognition, the Company may irrevocably designate a
financial asset that otherwise meets the requirements to
be measured at amortised cost or at FVOCI as at FVTPL if
doing so eliminates or significantly reduces an accounting
mismatch that would otherwise arise.

Financial assets: Business model assessment

The Company makes an assessment of the objective
of the business model in which a financial asset is held

at investment level because this best reflects the way

the business is managed and information is provided to
management. The information considered includes:

- the stated policies and objectives for each of such
investments and the operation of those policies in
practice. These include whether Management's
strategy focuses on earning contractual interest
income, maintaining a particular interest rate profile,
matching the duration of the financial assets to
the duration of any related liabilities or expected
cash outflows or realising cash flows through the
sale of the assets;

- the risks that affect the performance of the business
model (and the financial assets held within that
business model) and how those risks are managed;

- the frequency, volume and timing of sales of financial
assets in prior periods, the reasons for such sales
and expectations about future sales activity.

Transfers of financial assets to third parties in transactions
that do not qualify for derecognition are not considered
sales for this purpose, consistent with the Company's
continuing recognition of the assets.

Financial assets that are held for trading or are managed
and whose performance is evaluated on a fair value basis
are measured at FVTPL.

Financial assets: Assessment whether contractual cash flows
are solely payments of principal and interest

For the purposes of this assessment, 'principal' is defined
as the fair value of the financial asset on initial recognition.
'Interest' is defined as consideration for the time value of
money and for the credit risk associated with the principal
amount outstanding during a particular period of time and
for other basic lending risks and costs (e.g., liquidity risk
and administrative costs), as well as a profit margin.

In assessing whether the contractual cash flows are
solely payments of principal and interest, the Company
considers the contractual terms of the instrument. This
includes assessing whether the financial asset contains
a contractual term that could change the timing or
amount of contractual cash flows such that it would
not meet this condition. In making this assessment, the
Company considers:

- contingent events that would change the amount or
timing of cash flows;

- terms that may adjust the contractual coupon rate,
including variable interest rate features;

iii. Derecognition

Financial assets

The Company derecognises a financial asset when the
contractual rights to the cash flows from the financial asset
expire, or it transfers the rights to receive the contractual
cash flows in a transaction in which substantially all of

the risks and rewards of ownership of the financial asset
are transferred or in which the Company neither transfers
nor retains substantially all of the risks and rewards of
ownership and does not retain control of the financial asset.

If the Company enters into transactions whereby it
transfers assets recognised on its balance sheet, but
retains either all or substantially all of the risks and
rewards of the transferred assets, the transferred assets
are not derecognised.

Financial liabilities

The Company derecognises a financial liability when
its contractual obligations are discharged or cancelled,
or expire. The Company also derecognises a financial
liability when its terms are modified and the cash flows
under the modified terms are substantially different. In
this case, a new financial liability based on the modified
terms is recognised at fair value. The difference between
the carrying amount of the financial liability extinguished
and the new financial liability with modified terms is
recognised in standalone statement of profit and loss.

iv. Offsetting

Financial assets and financial liabilities are offset and the
net amount presented in the balance sheet when, and only
when, the Company currently has a legally enforceable
right to set off the amounts and it intends either to settle
them on a net basis or to realise the asset and settle the
liability simultaneously.

v. Derivative financial instruments

The Company holds derivative financial instruments to
hedge its foreign currency and interest rate risk exposures.
Derivatives are initially measured at fair value. Subsequent
to initial recognition, derivatives are measured at fair value,
and changes therein are recognised in the standalone
statement of profit and loss.

3.14 Earnings / (Loss) per share

The basic earnings / (loss) per share ('EPS') is computed by
dividing the net profit / (loss) after tax for the year attributable
to equity shareholders by the weighted average number of
equity shares outstanding during the year.

Diluted earnings per share is computed by dividing the profit/
(loss) after tax (including the post tax effect of extraordinary
items, if any) as adjusted for dividend, interest and other
charges to expense or income (net of any attributable taxes)
relating to the dilutive potential equity shares, by the weighted
average number of equity shares considered for deriving basic
earnings per share and the weighted average number of equity
shares which could have been issued on the conversion of all
dilutive potential equity shares.

Dilutive potential equity shares are deemed converted as of
the beginning of the period unless issued at a later date. In
computing dilutive earnings per share, only potential equity
shares that are dilutive, i.e., which reduces earnings per share
or increases loss per share are included. The dilutive potential
equity shares are adjusted for the proceeds receivable had the
shares been actually issued at fair value (i.e. average market
value of the outstanding shares). Dilutive potential equity shares
are determined independently for each period presented. The
number of equity shares and potentially dilutive equity shares
are adjusted for share splits/reverse share splits and bonus
shares, as appropriate.

3.15 Cash-flow statement

Cash flows are reported using the indirect method, whereby
profit 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 regular revenue
generating, investing and financing activities of the Company
are segregated.

3.16 Government Grants

Government grants are recognised where there is reasonable
assurance that the grant will be received and all attached
conditions will be complied with. Where the Company receives
grants relating to assets, including non-monetary grants, the
asset and the related grants are accounted at fair value and
recognised in the standalone statement of profit and loss
over the expected useful life of the asset. Government grants

related to assets, including non-monetary grants at fair value,
shall be presented in the balance sheet by setting up the
grant as deferred income.The grant set up as deferred income
is recognised in standalone statement of profit and loss on a
systematic basis over the useful life of the asset.

3.17 Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and on
hand and short-term deposits with an original maturity of
three months or less which are subject to insignificant risk of
changes in value.

3.18 Operating segments

The Company publishes the standalone financial statements
along with the consolidated financial statements. In accordance
with Ind AS 108, Operating Segments, the Company has
disclosed the segment information in the consolidated
financial statements.

3.19 Operating cycle

The operating cycle is the time between the acquisition of
assets for processing and their realisation in cash and cash
equivalents. Based on the nature of products / activities of the
Company and the normal time between 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 classification of its assets and liabilities as current
and non-current.

3.20 Exceptional items

An item of income or expense which by its size, nature or incidence
requires disclosure in order to improve an understanding of the
performance of the Company is treated as an exceptional item
and disclosed separately in the financial statements.

14.2 Rights, preferences and restrictions attached to equity shares

The Company has a single class of equity shares. All equity shares rank equally with regard to dividends and share in the Company's residual
assets. The equity shares are entitled to receive dividend as declared from time to time and subject to dividend payable to preference
shareholder. The voting rights of an equity shareholder on a poll (not on show of hands) is in proportion to the shareholders' share of the
paid-up equity capital of the Company. Voting rights cannot be exercised in respect of shares on which any call or other sums presently
payable have not been paid.

Failure to pay any amount called up on shares may lead to forfeiture of the shares.

On winding up of the Company, the holders of equity shares will be entitled to receive the residual assets of the Company, remaining after
distribution of all preferential amounts in proportion to the number of equity shares held.

14.6 Details of bonus shares issued during the past 5 years immediately preceeding 31 March 2025:

The Company has not issued bonus shares during the period of five years immediately preceding 31 March 2025.

14.7 Details of shares issued for consideration other than for cash during the past 5 years immediately preceeding 31 March 2025:

The Company has not allotted any equity shares as fully paid-up without consideration being received in cash during the past 5 years
immediately preceeding 31 March 2025.

14.8 Details of buybac2k of shares during the past 5 years immediately preceeding 31 March 2025:

The Company has not bought back any equity shares during the past 5 years immediately preceeding 31 March 2025.

14.9 The Board of Directors at its meeting held on 29 November 2024, approved a Scheme of Amalgamation by way of Merger (""Scheme"") of
Quality Care India Limited (Transferor Company) with Aster DM Healthcare Limited (Transferee Company) and their respective shareholders
and creditors, under Sections 230 to 232 of the Companies Act, 2013. The share exchange ratio shall be 0.977 equity shares of the face
value of Rs. 10 of Transferee Company, credited as fully paid-up, for every 1 equity shares of the face value of INR 10 each fully paid-up
held by such member in the Transferor Company. The Scheme is subject to the receipt of requisite approvals from Statutory and Regulatory
authorities, the respective shareholders and creditors, under applicable laws. As per the scheme, the appointed date for the amalgamation
shall be the effective date of the scheme, or such other date as may be mutually agreed between the parties. The Scheme has been
filed with the National Stock Exchange and the Bombay Stock Exchange on 18 December 2024 and 19 December 2024 respectively for
their approval.

On April 15, 2025 the Company has received the Competition Commission of India (CCI) approval for allotting 1,86,07,969 equity shares on
a preferential basis to the proposed allottees and proceed with the scheme of amalgamation.

The transaction was completed by acquiring 1,90,46,028 equity shares of QCIL by Aster DM Healthcare from BCP and TPG for a value of
INR 849.13 crores. As discharge of the total purchase consideration payable, Aster DM Healthcare has allotted 1,86,07,969 equity shares
(face value INR 10 each) to BCP and Centella.

14 Share capital (Contd..)

14.10 On 12 April 2024, the Board of Directors of the Company have approved a special dividend of INR 118.00/- (par value of INR 10 each) per
equity share. The special dividend resulted in a cash outflow of INR 5,894.25 crores.

14.11 On 28 May 2024, the Board of Directors of the Company have approved a final dividend of INR 2.00/- (par value of INR 10 each) per equity
share in respect of the year ended 31 March 2024, shareholders approved the same at the Annual General Meeting held on 29 August
2024. This dividend resulted in a cash outflow of INR 99.90 crores.

14.12 The Board of Directors at its meeting held on 31 January 2025 approved an interim dividend of INR 4 per equity share. The same has been
distributed to the shareholders of the Company post the approval of the Board of Directors of the Company. This dividend resulted in a cash
outflow of INR 199.80 crores.

14.13 On 20 May 2025, the Board of Directors of the Company have proposed a final dividend of INR 1.00/-(par value of INR 10 each) per equity
share in respect of the year ended 31 March 2025, subject to the approval of shareholders at the Annual General Meeting. If approved, the
dividend would result in a cash outflow of INR 51.81 crores.

17 Trade payables (Contd..)

Note: The Ministry of Micro, Small and Medium Enterprises has issued an office memorandum dated 26 August 2008 which recommends
that the Micro and Small Enterprises should mention in their correspondence with its customers the Entrepreneurs Memorandum Number
as allocated after filing of the Memorandum. Accordingly, the disclosure in respect of the amounts payable to such enterprises as at March
31, 2025 has been made in the financial statements based on information received and available with the Company. Further in view of
the management, the impact of interest, if any, that may be payable in accordance with the provisions of the Micro, Small and Medium
Enterprises Development Act, 2006 ('The MSMED Act') is not expected to be material. The Company has not received any claim for interest
from any supplier.

33 Contingent liabilities and commitments (Contd..)

Note 1: The Company has received income tax assessment orders for AY 2014-15 & 2015-16 wherein the assessing officer has raised
net demand of INR 20.08 crores (on account of disallowance of Foreign Tax Credit claimed as per provisions of Section 90/90A of Income
Tax Act, 1961 and the disallowance under section 14A. The Company has also received income tax demand order of INR 0.18 crores for
AY 2012-13 where in assessing officer denied legal and professional fee and business promotion expenses. The Company also received
income tax demand order of INR 2.28 crores and INR 2.15 crore for AY 16-17 and AY 17-18 respectively where assessing officer contended
TDS deducted from doctors are subject to section 192 rather than section 194J of income tax act 1961 based on the terms of arrangements
with the doctors . The Company had also received income tax demand order of INR 0.20 crore for AY 17-18 wherein assessing officer
made disallowances on account of delayed payment of provident fund deducted from employees.The Company has filed an appeal with
Commissioner of Income Tax (CIT) appeals, against these demand orders received and has paid INR 4.03 crores under protest for the above
cases. The Company has also created provision amounting to INR 2.48 crores for AY 2014-15 (refer Note 13).

Note 2: The Company has received a Show Cause Notice (SCN) from Additional/Joint Commissioner of Central Tax regarding the alleged
non-payment of GST on COVID-19 vaccination services. The SCN has been issued to the Company in its entirety, including its Kerala
registration. In response, the Company has submitted that the vaccination services are classified as healthcare services and should be
treated as a composite supply incidental to healthcare, which is exempt from GST. Despite this position, the Department has issued a
demand order amounting to INR1.08 crore along with the 100% penalty amounts to INR 1.08 crore against which the Company is in the
process of filing appeal. The Additional/Joint Commissioner of Central Tax alleges that the Company has not paid GST on accommodation
services extended to bystanders and outpatients at its guest facility,Aster suites.

The Department contends that the nature of accommodation provided at Aster Suites is same as that of hotel services and is therefore
subject to GST. The Company has taken the position that these services forms an integral part of a composite supply of healthcare
services. It is contended that such accommodation is ancillary and naturally bundled with the principal supply of healthcare services
provided to patients.

In contradiction to this view, the Additional/Joint Commissioner of Central Tax has issued a demand notice amounting to INR 2.91 crore
along with the 100% penalty amounts to INR 2.91 crore. In response, the Company has filed an appeal challenging the demand, reiterating
its stance and paid INR 0.30 crores under protest for the above cases.

The Company has also received Show Cause Notice (SCN) from Commercial Tax Officer (CTO) where department enquired about the reason
for difference in output tax liability between GSTR 1 and GSTR 3B returns for the period FY 2022-23 and issue the demand order amounting
to INR 0.25 Crore. The Company has responded against the said SCN. (refer Note 13).

Note 3: The Company has obtained duty free / concessional duty licenses for import of capital goods by undertaking export obligations
under the EPCG scheme. As at 31 March 2025, the custom duty obligations remaining to be fulfilled amounts to INR 17.95 crores (31
March 2024: INR 16.93 crores). In the event that export obligations are not fulfilled, the Company would be liable to pay the levies.

Note 4: On 23 April 2018, the Government of Kerala issued an order revising the minimum wages of medical and nursing staff. The
order mentions that the changes would be effective retrospectively from 1 October 2017. Since the legislation was issued in April 2018,
Management has started paying the revised salary with effect from 1 April 2018. The Company filed an appeal against the retrospective
application of this order with the High Court of Kerala which has issued an interim stay order on 26 July 2018. The Writ Petition WP (c)
No. 25109/2018 challenging the retrospective effect of minimum wage order passed by the Government of Kerala is pending before the
Hon'ble High Court of Kerala in hearing list. Based on the stay order and legal advise, Management believes that their position will be
upheld and therefore has not provided for the incremental cost for the period October 2017 to March 2018.

Note 5 : On 28 February 2019, the Hon'ble Supreme Court of India has delivered a judgment clarifying the principles that need to be applied
in determining the components of salaries and wages on which Provident Fund (PF) contributions need to be made by establishments.
Basis this judgment, the Company has re-computed its liability towards PF from the month of March 2019 and has paid PF as per Supreme
Court judgement. In respect of the earlier periods/years, the Company has been legally advised that there are numerous interpretative
challenges on the application of the judgment retrospectively. Based on such legal advice, the Management believes that it is impracticable
at this stage to reliably measure the provision required, if any, and accordingly, no provision has been made towards the same. Necessary
adjustments, if any, will be made to the books as more clarity emerges on this subject.

Note 6 : The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are
required and disclosed as contingent liability where applicable, in its standalone financial statements. The Company does not expect the
outcome of these proceedings to have a materially adverse effect on its financial position.

Note 7 : Bank guarantee is issued by various bankers on behalf of the Company with respect to its commitment to various parties.

33 Contingent liabilities and commitments (Contd..)

Note 8 : Letter of credit is issued by various bankers on behalf of the Company to foreign vendors with respect to various international
trade viz., Capital asset procurement.

Note 9 : The Company does not have any long-term commitments or material non-cancellable contractual commitments/contracts, including
derivative contracts for which there were any material foreseeable losses other than disclosed in then standalone financial statements.

Note 10 : Affinity Holdings Private Limited (Affinity) is wholly owned subsidiary of the Company. Affinity held 100% ownership of Aster
DM Healthcare FZC (GCC). On April 3, 2024, Affinity sold its stake in GCC to Alpha GCC Holdings Limited (Refer note 6). With respect to this
transaction, Affinity has provided certain indemnities, warranties, obligations, undertakings as outlined in the share purchase agreement,
which have been guaranteed by the Company through a deed of guarantee dated November 28, 2023 upto the sale consideration
received by Affinity.

Note 11 : The Board of Directors at its meeting held on 29 November 2024, approved a Scheme of Amalgamation by way of Merger
("Scheme") of Quality Care India Limited (Transferor Company/QCIL) with Aster DM Healthcare Limited (Transferee Company) and their
respective shareholders and creditors. The Scheme is subject to the receipt of requisite approvals from Statutory and Regulatory authorities,
the respective shareholders and creditors, under applicable laws. An amount of INR 82.00 Crore may be payable to the financial advisors/
regulators/bankers in connection with the Company's proposed merger, upon receipt of all necessary regulatory approvals including but
not limited to approvals from the Competition Commission of India (CCI) and the National Company Law Tribunal (NCLT) and completion
of such intended Transaction and satisfaction of other closing conditions as set forth in the relevant definitive agreement(s) to complete
the Acquisition.

Note 12 : The Company has given letter of support to its subsidiary namely Aster Dm Multispecialty Hospital Private Limited (formerly
known as Aster DM Healthcare (Trivandrum) Private Limited). Under the letter of support, the Company is committed to provide financial
and other support necessary to the said entity at least 12 months from the date of the financial statements adoption to enable the
Company to continue the construction from end of financial year 2024-25.

34 Earnings per share

A. Basic earnings per share

The calculation of profit attributable to equity share holders and weighted average number of equity shares outstanding for the purpose of
basic earnings per share calculations are as follows:

B Financial risk management

The Company's activities expose it to a variety of financial risks: credit risk, market risk and liquidity risk.

i) Risk management framework

The Company's board of directors has overall responsibility for the establishment and oversight of the risk management framework.

The Company's audit and risk management committee oversees how management monitors compliance with the risk management
policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company.
The committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and ad-hoc reviews of risk
management controls and procedures, the results of which are reported to the audit and risk management committee.

ii) Credit risk

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 operating activities (primarily trade receivables) and from its investing
activities, including deposits with banks and financial institutions and other financial instruments.

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 receivables team.

The Company always measures the loss allowance for trade receivables at an amount equal to lifetime ECL. The expected credit
losses on trade receivables are estimated using a provision matrix by reference to past default experience of the debtors and an
analysis of the debtors' current financial position, adjusted for factors that are specific to the debtors, general economic conditions
of the industry in which the debtors operate, and an assessment of both the current as well as the forecast direction of conditions at
the reporting date.

No single customer accounted for more than 10% of the revenue as of 31 March 2025 and 31 March 2024. There is no significant
concentration of credit risk.

Credit risk on cash and cash equivalent and other bank balances is limited as the Company generally transacts with banks and
financial institutions with high credit ratings assigned by international and domestic credit rating agencies.

iii) 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. Ultimate responsibility for liquidity risk management rests with the
board of directors, which has established an appropriate liquidity risk management framework for management of the Company's
short, medium and long-term funding and liquidity management requirements. The Company's approach to managing liquidity is to
ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed
conditions, without incurring unacceptable losses or risking damage to the Company's reputation.

Financial assets of INR 2,980.02 crores (including restricted deposits of INR 14.26 crores) as at 31 March 2025 is in the form of
cash and cash equivalents, bank balances other than cash and cash equivalents above, investments, trade receivables, loans and
other financial assets where the Company has assessed the counterparty credit risk. Trade receivables of INR 138.13 crores (net of
provision of INR 21.72 crores) as at 31 March 2025 carried at amortised cost and is valued considering provision for allowance using
expected credit loss method (if any). In addition to the historical pattern of credit loss, we have considered the likelihood of increased
credit risk. The Company has specifically evaluated the potential impact with respect to Healthcare service sector. The Company
closely monitors its customers who are being impacted. Also a substantial portion of the financial asset is related to investments
in subsidiaries and associate companies (INR 1,008.96 crores) and loans and advances to subsidiaries and associate companies
(INR 316.12 crores, net of provision of INR 13.48 crores) wherein Management has considered on the projections while doing its
assessment for impairment testing.

Financial assets of INR 2,959.74 crores (including restricted deposits of INR 6.57 crores) as at 31 March 2024 is in the form of
cash and cash equivalents, bank balances other than cash and cash equivalents above, investments, trade receivables, loans and
other financial assets where the Company has assessed the counterparty credit risk. Trade receivables of INR 127.55 crores (net of
provision of INR 12.24 crores) as at 31 March 2024 carried at amortised cost and is valued considering provision for allowance using
expected credit loss method (if any). In addition to the historical pattern of credit loss, we have considered the likelihood of increased
credit risk. The Company has specifically evaluated the potential impact with respect to Healthcare service sector. The Company
closely monitors its customers who are being impacted. Also a substantial portion of the financial asset is related to investments
in subsidiaries and associate companies (INR 2,175.55 crores) and loans and advances to subsidiaries and associate companies
(INR 454.95 crores, net of provision of INR 13.48 crores) wherein Management has considered on the projections while doing its
assessment for impairment testing.

iv) 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, such as foreign exchange rates, interest rates and equity prices.

(a) Foreign currency risk

The Company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate

fluctuations arise. The Company is mainly exposed to AED, OMR and US dollar.

Sensitivity analysis

The sensitivity of profit or loss to changes in exchange rates arises mainly from foreign currency denominated financial
instruments. One per cent is the sensitivity rate used when reporting foreign currency risk internally to key management
personnel and represents management's assessment of the reasonably possible change in foreign exchange rates. The
sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the
year-end for a one per cent change in foreign currency rates. A positive number below indicates an increase in profit and other
equity where currency units strengthens one per cent against the relevant currency. For a one per cent weakening of currency
units against the relevant currency, there would be a comparable impact on the profit and other equity, and the balances below
would be negative.

38 Financial Instruments - Fair values and risk management (Contd..)

(b) Interest rate risk

The Company is exposed to interest rate risk because the Company borrows funds at both fixed and floating interest rates.
The Company's significant interest rate risk arises from long-term borrowings with variable interest rates, which expose the
Company to cash flow interest rate risk. The interest rate on the Company's financial instruments is based on market rates. The
Company monitors the movement in interest rates on an ongoing basis. The risk is managed by the Company by maintaining an
appropriate mix between fixed and floating rate borrowings.

The analysis is prepared assuming the amount of liability outstanding at the reporting date was outstanding for the whole
year. A one per cent increase or decrease is used when reporting interest rate risk internally to key management personnel
and represents management's assessment of the reasonably possible change in interest rates. The Company's sensitivity to
interest rates has increased in the current year due to the additional variable rate long term borrowings taken during the year.

(c) Equity price risk

The Company is exposed to price risks arising from investments in equity share. The Company's investment are held strategically
rather than for trading purpose.

39 Employee benefits

A The Company has a unfunded defined benefit gratuity plan as per the Payment of Gratuity Act, 1972 ('Gratuity Act'). Under the Gratuity Act,
employee who has completed five years of service is entitled to specific benefit. The gratuity benefit 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 15 / 26 days'
salary payable for each completed year of service. The gratuity obligation is recognized subject to a maximum limit of INR 20,00,000, as
prescribed under the Payment of Gratuity Act, 1972.

Based on an actuarial valuation, the following table sets out the status of the gratuity plan and the amounts recognised in the Company's
standalone financial statements as at balance sheet date:

42 Share based payments

A Description of share-based payment arrangements- Share option plans (equity-settled)

The Company has issued stock options under the DM Healthcare Employees Stock Option Plan 2013 (“DM Healthcare ESOP 2013" or
“2013 Plan") during the financial year ended 31 March 2013. The 2013 Plan covers all non-promoter directors and employees of the
Company and its subsidiaries (collectively referred to as “eligible employees"). Under this plan, holders of vested options are entitled to
purchase shares at the exercise price approved by the Nomination and Remuneration Committee (agreed at 25% discount at previous
day closing traded share price in case of performance options except for options issued on account of corporate action which were
issued at Rs.10 and Rs. 10 in case of loyalty options). The Nomination and Remuneration Committee granted the options on the basis of
performance, criticality, loyalty and potential of the employees as identified by the management. Each employee share option converts into
one equity share of the Company on exercise. No amounts are paid or payable by the recipient on receipt of the option. The options carry
neither rights to dividends nor voting rights. Options may be exercised at any time from the date of vesting to the date of their expiry. If the
options remain unexercised at the end of the contractual life of the option, the options expire. Options are forfeited if the employee leaves
the Company before the options vest.

The Company has granted different categories of options on various dates mentioned in below table on different terms viz; incentive
options, milestone options, performance options and loyalty options.

The Company has computed the grant date fair value of the options for the purpose of accounting of employee compensation cost expense
over the vesting period of the options.

Notes:

Total debt = Borrowings Lease liabilities - Cash & cash equivalents - Other bank balances - Current investments

Earnings available for debt service = Net profit before taxes Non-cash operating expenses like depreciation and amortisations - Other
income Finance cost Other adjustments (such as loss on sale of property, plant and equipment)

Debt service = Interest Principal repayments Lease payments

Net profit = Net profit after tax

Capital employed = Tangible net worth Total debt

Earnings before interest and taxes = Net profit before taxes - Other income Finance cost Other adjustments (such as loss on sale of
property, plant and equipment)

45 Additional disclosures

a) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding
any Benami property during and as at 31 March 2025 and 31 March 2024.

b) The Company is not declared as wilful defaulter by any bank or financial institution (as defined under the Companies Act, 2013) or
consortium thereof or other lender in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.

c) There are no transactions and balances with companies which have been removed from the Register of Companies [struck off companies]
during and as at the reporting periods.

45 Additional disclosures (Contd..)

d) The Company has not advanced or loaned or invested funds during the reporting periods to any other person(s) or entity(ies), including
foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(i) 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

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

except loan and investment to Alfaone Medicals Private Limited amounting to INR 40 crores and INR 47.56 crores respectively out of
which INR 41.23 crores was lent to Alfaone Retail Pharmacies Private Limited.

e) The Company has not received any fund during the reporting periods from any person(s) or entity(ies), including foreign entities (Funding
Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(i) 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

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

f) The Company has no such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income
during the reporting periods 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).

g) The Company has not granted any loans or advances in the nature of loans to promoters, directors, KMPs and the related parties except
note (i) below (as defined under Companies Act, 2013), either severally or jointly with any other person that are:

(i) repayable on demand; or

(ii) without specifying any terms or period of repayment.

h) The Company has granted loans to below mentioned related parties (refer Note 36B(b)) for business purpose which is repayable on demand
at rate of interest ranging between 8.82% to 12% (31 March 2024: 8.83% to 12% )

(i) Aster Clinical Lab LLP

(ii) Hindustan Pharma Distributors Private Limited

(iii) Alfaone Medicals Private Limited

(iv) DM Med City Hospitals (India) Private Limited

(v) Aster DM Multispecialty Hospital Private Limited

(formerly known as Aster DM Healthcare (Trivandrum) Private Limited)

(vi) Ambady Infrastructure Private Limited

(vii) Sri Sainatha Multispeciality Hospitals Private Limited

45 Additional disclosures (Contd..)

i) The Company has not revalued any of its Property, Plant and Equipment (including Right-of-Use Assets) during the year.

j) As per the requirement of the rule 3(1) of the Companies (Accounts) Rules, 2014, the Company uses only such accounting softwares for
maintaining its books of account that have a feature of recording audit trail of each and every transaction creating an edit log of each change
made in the books of account. This feature of recording the audit trail has operated throughout the year with exception of one software
used during the period from 1 April 2024 to 30 September 2024. There have been no instances of audit trail tampering during the year.

Additionally, the audit trail that was eanbled and operated for the year ended 31 March 2024, has been preserved by the Company as per
the statutory requirements for record retention.

The Company has established and maintained an adequate internal control framework over its financial reporting and based on its
assessment, has concluded that the internal controls for the year ended 31 March 2025 were effective.

k) 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.

l) The Company has not traded / invested in Crypto currency during the reporting periods

for and on behalf of the Board of Directors of
Aster DM Healthcare Limite

CIN : L85110KA2008PLC147259

Dr. Azad Moopen Thadathil Joseph Wilson

Chairman and Managing Director Director

DIN: 00159403 DIN: 02135108

Dubai Dubai

20 May 2025 20 May 2025

Sunil Kumar M R Hemish Purushottam

Chief Financial Officer Company Secretary

Bengaluru Membership No.: A24331

20 May 2025 Bengaluru

20 May 2025