INDEPENDENT AUDITORS’ REPORT

To the Members of Basis for Opinion

Metropolis Healthcare Limited We conducted our audit in accordance with the Standards
on Auditing (SAs) specified under section 143(10) of the Act.
REPORT ON THE AUDIT OF THE STANDALONE FINANCIAL Our responsibilities under those SAs are further described in
STATEMENTS the Auditor’s Responsibilities for the Audit of the Standalone
Opinion Financial Statements section of our report. We are
We have audited the standalone financial statements of independent of the Company in accordance with the Code
Metropolis Healthcare Limited (“the Company”), which of Ethics issued by the Institute of Chartered Accountants of
comprise the standalone balance sheet as at 31 March 2020, India together with the ethical requirements that are relevant
and the standalone statement of profit and loss (including to our audit of the standalone financial statements under the
other comprehensive income), standalone statement of provisions of the Act and the Rules thereunder, and we have
changes in equity and standalone statement of cash flows fulfilled our other ethical responsibilities in accordance with
for the year then ended, and notes to the standalone financial these requirements and the Code of Ethics. We believe that the
statements, including a summary of the significant accounting audit evidence we have obtained is sufficient and appropriate
policies and other explanatory information. to provide a basis for our opinion on the standalone financial
statements.
In our opinion and to the best of our information and according
to the explanations given to us, the aforesaid standalone Key Audit Matters
financial statements give the information required by the Key audit matters are those matters that, in our professional
Companies Act, 2013 (“Act”) in the manner so required and judgment, were of most significance in our audit of the
give a true and fair view in conformity with the accounting standalone financial statements of the current period. These
principles generally accepted in India, of the state of affairs matters were addressed in the context of our audit of the
of the Company as at 31 March 2020, and profit and other standalone financial statements as a whole, and in forming our
comprehensive loss, changes in equity and its cash flows for opinion thereon, and we do not provide a separate opinion on
the year ended on that date. these matters.

DESCRIPTION OF KEY AUDIT MATTER

The key audit matter How the matter was addressed in our audit
As disclosed in note 5 of the standalone financial statements, Our audit procedures included the following:
the Company investments in subsidiaries and a joint venture of
• Comparison of the carrying values of these investment with
Rs 12,802.36 Lakhs as at 31 March 2020. The said investments
their respective net asset values
are carried at cost less allowance for impairment, if any.
• Assessing the accuracy of prior period forecasts of the
Company tests these investments for indicators of impairment
investee company with it’s actual financial performance;
annually or more frequently when there is an indication, these
investments may be impaired. • Challenging the assumptions used in impairment analysis,
such as future sales, operating costs and profit margins
The Company carries out impairment assessment for each
and discount rate. This was based on our knowledge of the
investment by:
investee company’s business and the markets in which the
• Comparing the carrying value of each investment with the investee company operates.
net worth of each company based on audited financials.
• Performing sensitivity analysis of the key assumptions, used
• Comparing the performance of the investee companies with in determining the recoverable value;
projections used for valuations and approved business plans.
• Evaluating the adequacy of disclosures of key assumptions,
As impairment assessment involves significant assumptions judgements and sensitivities in respect of impairment
and judgment, we regard this as a key audit matter. testing.

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 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS

INDEPENDENT AUDITORS’ REPORT (Contd.)

OTHER INFORMATION The Board of Directors is also responsible for overseeing the
The Company’s Management and Board of Directors are Company’s financial reporting process.
responsible for the other information. The other information
comprises the information included in the Company’s annual AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE
report,but does not include the financial statements and our STANDALONE FINANCIAL STATEMENTS
auditors’ report thereon. Our objectives are to obtain reasonable assurance about
whether the standalone financial statements as a whole
Our opinion on the standalone financial statements does not
are free from material misstatement, whether due to fraud
cover the other information and we do not express any form of
or error, and to issue an auditor’s report that includes our
assurance conclusion thereon.
opinion. Reasonable assurance is a high level of assurance,
In connection with our audit of the standalone financial but is not a guarantee that an audit conducted in accordance
statements, our responsibility is to read the other information with SAs will always detect a material misstatement when it
and, in doing so, consider whether the other information exists. Misstatements can arise from fraud or error and are
is materially inconsistent with the standalone financial considered material if, individually or in the aggregate, they
statements or our knowledge obtained in the audit or could reasonably be expected to influence the economic
otherwise appears to be materially misstated. If, based on the decisions of users taken on the basis of these standalone
work we have performed, we conclude that there is a material financial statements.
misstatement of this other information, we are required to
As part of an audit in accordance with SAs, we exercise
report that fact. We have nothing to report in this regard.
professional judgment and maintain professional skepticism
throughout the audit. We also:
MANAGEMENT’S AND BOARD OF DIRECTORS’ RESPONSIBILITY
FOR THE STANDALONE FINANCIAL STATEMENTS • Identify and assess the risks of material misstatement
The Company’s Management and Board of Directors are of the standalone financial statements, whether due
responsible for the matters stated in section 134(5) of the Act to fraud or error, design and perform audit procedures
with respect to the preparation of these standalone financial responsive to those risks, and obtain audit evidence
statements that give a true and fair view of the state of affairs, that is sufficient and appropriate to provide a basis
profit/loss and other comprehensive income, changes in for our opinion. The risk of not detecting a material
equity and cash flows of the Company in accordance with the misstatement resulting from fraud is higher than for
accounting principles generally accepted in India, including one resulting from error, as fraud may involve collusion,
the Indian Accounting Standards (Ind AS) specified under forgery, intentional omissions, misrepresentations, or
section 133 of the Act. This responsibility also includes the override of internal control.
maintenance of adequate accounting records in accordance • Obtain an understanding of internal control relevant to
with the provisions of the Act for safeguarding of the assets the audit in order to design audit procedures that are
of the Company and for preventing and detecting frauds and appropriate in the circumstances. Under section 143(3)
other irregularities; selection and application of appropriate (i) of the Act, we are also responsible for expressing our
accounting policies; making judgments and estimates that opinion on whether the Company has adequate internal
are reasonable and prudent; and design, implementation and financial controls with reference to financial statements
maintenance of adequate internal financial controls that were in place and the operating effectiveness of such controls.
operating effectively for ensuring accuracy and completeness
of the accounting records, relevant to the preparation and • Evaluate the appropriateness of accounting policies
presentation of the standalone financial statements that give used and the reasonableness of accounting estimates
a true and fair view and are free from material misstatement, and related disclosures in the standalone financial
whether due to fraud or error. statements made by the Management and Board of
Directors.
In preparing the standalone financial statements, the
Management and Board of Directors are responsible for • Conclude on the appropriateness of the Management
assessing the Company’s ability to continue as a going and Board of Directors use of the going concern basis of
concern, disclosing, as applicable, matters related to going accounting and, based on the audit evidence obtained,
concern and using the going concern basis of accounting whether a material uncertainty exists related to events
unless the Board of Directors either intends to liquidate the or conditions that may cast significant doubt on the
Company or to cease operations, or has no realistic alternative Company’s ability to continue as a going concern. If
but to do so. we conclude that a material uncertainty exists, we

ANNUAL REPORT 2019-20 111

INDEPENDENT AUDITORS’ REPORT (Contd.)

are required to draw attention in our auditor’s report 2. (A) As required by section 143(3) of the Act, we report
to the related disclosures in the standalone financial that:
statements or, if such disclosures are inadequate, to
a) We have sought and obtained all the
modify our opinion. Our conclusions are based on the
information and explanations which to the best
audit evidence obtained up to the date of our auditor’s
of our knowledge and belief were necessary
report. However, future events or conditions may cause
for the purposes of our audit;
the Company to cease to continue as a going concern.
b) In our opinion, proper books of account as
• Evaluate the overall presentation, structure and content
required by law have been kept by the Company
of the standalone financial statements, including the
so far as it appears from our examination of
disclosures, and whether the standalone financial
those books;
statements represent the underlying transactions and
events in a manner that achieves fair presentation. c) The standalone balance sheet, the standalone
statement of profit and loss (including other
We communicate with those charged with governance
comprehensive income), the standalone
regarding, among other matters, the planned scope and
statement of changes in equity and the
timing of the audit and significant audit findings, including
standalone statement of cash flows dealt with
any significant deficiencies in internal control that we identify
by this Report are in agreement with the books
during our audit.
of account;
We also provide those charged with governance with a
d) In our opinion, the aforesaid standalone
statement that we have complied with relevant ethical
financial statements comply with the Ind AS
requirements regarding independence, and to communicate
specified under section 133 of the Act;
with them all relationships and other matters that may
reasonably be thought to bear on our independence, and e) On the basis of the written representations
where applicable, related safeguards. received from the directors as on 31 March
2020 taken on record by the Board of Directors,
From the matters communicated with those charged with
none of the directors is disqualified as on 31
governance, we determine those matters that were of most
March 2020 from being appointed as a director
significance in the audit of the standalone financial statements
in terms of section 164(2) of the Act; and
of the current period and are therefore the key audit matters.
We describe these matters in our auditors’ report unless law f) With respect to the adequacy of the internal
or regulation precludes public disclosure about the matter or financial controls with reference to financial
when, in extremely rare circumstances, we determine that a statements of the Company and the operating
matter should not be communicated in our report because effectiveness of such controls, refer to our
the adverse consequences of doing so would reasonably be separate Report in “Annexure B”.
expected to outweigh the public interest benefits of such (B) With respect to the other matters to be included in
communication. the Auditors’ Report in accordance with Rule 11 of
the Companies (Audit and Auditors) Rules, 2014, in
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
our opinion and to the best of our information and
1. As required by the Companies (Auditors’ Report) Order, according to the explanations given to us:
2016 (“the Order”) issued by the Central Government
in terms of section 143 (11) of the Act, we give in the i. The Company has disclosed the impact of
“Annexure A” a statement on the matters specified in pending litigations as at 31 March 2020 on its
paragraphs 3 and 4 of the Order, to the extent applicable. financial position in its standalone financial
statements - Refer Note 43 to the standalone
financial statements;

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 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS

INDEPENDENT AUDITORS’ REPORT (Contd.)

ii. The Company did not have any long-term (C) With respect to the matter to be included in the
contracts including derivative contracts for Auditors’ Report under section 197(16):
which there were any material foreseeable
In our opinion and according to the information and
losses;
explanations given to us, the remuneration paid by
iii. There has been no delay in transferring the Company to its directors during the current year
amounts, required to be transferred, to the is in accordance with the provisions of section 197
Investor Education and Protection Fund by the of the Act. The remuneration paid to any director is
Company; and not in excess of the limit laid down under section 197
of the Act. The Ministry of Corporate Affairs has not
iv. The disclosures in the standalone financial
prescribed other details under section 197(16) which
statements regarding holdings as well as
are required to be commented upon by us.
dealings in specified bank notes during the
period from 8 November 2016 to 30 December
2016 have not been made in these financial
statements since they do not pertain to the For B S R & Co. LLP
financial year ended 31 March 2020.
Chartered Accountants
Firm’s Registration No: 101248W/W-100022
Tarun Kinger
Partner
Place: Mumbai Membership No: 105003
Date: 29 May 2020 ICAI UDIN: 20105003AAAABA3677

ANNUAL REPORT 2019-20 113

ANNEXURE A TO THE INDEPENDENT AUDITOR’S REPORT – 31 MARCH 2020

With reference to the Annexure A referred to in the Independent Auditor’s Report to the members of the Company on the standalone
financial statements for the year ended 31 March 2020, we report the following:

(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of
property, plant and equipment (fixed assets).

(b) The Company has a regular programme of physical verification of its property, plant and equipment (fixed assets) by
which all the property, plant and equipment (fixed assets) are verified over a period of two years. In our opinion, this
periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets.
During the year the Company has physically verified it’s property, plant and equipment (fixed assets) and no material
discrepancies were noticed on such verification.

(c) According to the information and explanations given to us and on the basis of our examination of the records of the
Company, the title deeds of immovable properties are held in the name of the Company as disclosed in Note 3 to the
standalone financial statements, except for the following:

Description Total number Whether Gross block Net block Remarks

of cases leasehold/ as on 31 March as on 31 March
freehold 2020 (` Lakhs) 2020 (` Lakhs)
Land 1 Freehold 1,035.40 1,035.40 Title deeds are in the names
of the entities which got
Building 4 Freehold 1,092.87 888.50
merged with the Company
in the past.

(ii) Inventory has been physically verified by management by the Central Government for the maintenance of cost
at reasonable intervals during the year. In our opinion, records under sub-section (1) of section 148 of the Act in
the frequency of such verification is reasonable. respect of the Company’s services and are of the opinion
Discrepancies noticed on such verification between that, prima facie, the prescribed accounts and records
physical stocks and the book records were not material have been made and maintained. However, we have
and these have been properly dealt with in the books of not made a detailed examination of the cost records
account. with a view to determine whether they are accurate or
complete.
(iii) In our opinion and according to information and
explanations given to us, the Company has not granted (vii) (a) According to the information and explanations
any loans, secured or unsecured, to companies, firms, given to us and on the basis of our examination of
limited liability partnerships or other parties covered the records of the Company, amounts deducted/
in the register maintained under section 189 of the Act. accrued in the books of account in respect of
Accordingly, paragraph 3(iii) of the Order is not applicable undisputed statutory dues including Provident fund,
to the Company. Employees’ State Insurance, Income-tax, Goods and
Service tax and other material statutory dues have
(iv) The Company has not granted any loans or provided
been generally regularly deposited during the year
any guarantees or security to the parties covered under
with the appropriate authorities. As explained to us,
section 185 and 186 of the Act.
the Company did not have any dues on account of
(v) In our opinion, and according to the information and Sales tax, Value added tax, Duty of excise and Cess.
explanations given to us, the Company has not accepted
According to the information and explanations
deposits as per the directives issued by the Reserve
given to us, there are no undisputed amount
Bank of India and the provisions of sections 73 to 76 or
payable, in respect of Provident fund, Employees
any other relevant provisions of the Act and the rules
State Insurance, Goods and Service tax, Income tax,
framed thereunder. Accordingly, paragraph 3(v) of the
Duty of Customs and other material statutory dues
Order is not applicable to the Company.
were in arrears as at 31 March 2020 for a period of
(vi) We have broadly reviewed the books of account more than six months from the date they became
maintained by the Company pursuant to the Rules made payable.

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 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS

ANNEXURE A TO THE INDEPENDENT AUDITOR’S REPORT – 31 MARCH 2020 (CONTD.)

(b) According to the information and explanations given to us, except as stated below, there are no dues of Income tax, Sales
tax, Service tax, Duty of customs, Duty of excise and Value added tax as at 31 March 2020 which have not been deposited
with the appropriate authorities on account of any dispute:

Name of the statute Nature of dues Amount Amount paid Period to which Forum where dispute
(` Lakhs) the amount relates is pending
Income Tax Act, 1961 Income Tax 113.93 - AY 2014-15 Commissioner of
Income Tax Appeals

(viii) In our opinion and according to the information and (xiii) According to the information and explanations given to
explanations given to us, during the year, the Company us and based on our examination of the records of the
did not defaulted in repayment of loans from banks. Company, transactions with the related parties are in
The Company did not have any outstanding debenture compliance with sections 177 and 188 of the Act, where
or any outstanding dues to financial institutions and applicable. The details of such transactions have been
government during the year. disclosed in the standalone financial statements as
required under Ind AS -24.
(ix) According to the information and explanations given to
us and based on our examination of the records of the (xiv) According to the information and explanations given to
Company, the Company has not raised any moneys by us and based on our examination of the records of the
way of initial public offer or further public offer (including Company, the Company has not made any preferential
debt instruments) and has not obtained any term loans allotment or private placement of shares or fully or partly
during the year. Accordingly, paragraph 3(ix) of the Order convertible debentures during the year. Accordingly,
is not applicable to the Company. paragraph 3(xiv) of the Order is not applicable to the
Company.
(x) According to the information and explanations, given to
us, no material fraud by the Company or on the Company (xv) According to the information and explanations given
by its officers or employees has been noticed or reported to us and based on our examination of the records,
during the course of our audit. the Company has not entered into any non-cash
transactions with directors or persons connected with
(xi) According to the information and explanations given
them. Accordingly, paragraph 3(xv) of the Order is not
to us and based on our examination of the records
applicable to the Company.
of the Company, the Company has paid or provided
for managerial remuneration in accordance with the (xvi) In our opinion and according to the information and
provisions of section 197 read with Schedule V to the Act. explanations given to us, the Company is not required to
be registered under section 45-IA of the Reserve Bank of
(xii) In our opinion and according to the information and
India Act, 1934. Accordingly, paragraph 3(xvi) of the Order
explanations given to us, the Company is not a Nidhi
is not applicable to the Company.
company and the Nidhi Rules, 2014 are not applicable
to it. Accordingly, paragraph 3(xii) of the Order is not
applicable to the Company. For B S R & Co. LLP
Chartered Accountants
Firm’s Registration No: 101248W/W-100022
Tarun Kinger
Partner
Place: Mumbai Membership No: 105003
Date: 29 May 2020 ICAI UDIN: 20105003AAAABA3677

ANNUAL REPORT 2019-20 115

ANNEXURE B TO THE INDEPENDENT AUDITORS’ REPORT ON THE STANDALONE FINANCIAL STATEMENTS
OF METROPOLIS HEALTHCARE LIMITED FOR THE YEAR ENDED 31 MARCH 2020

Report on the internal financial controls with reference to AUDITORS’ RESPONSIBILITY

the aforesaid standalone financial statements under Clause Our responsibility is to express an opinion on the Company’s
(i) of sub-section 3 of section 143 of the Companies Act, 2013 internal financial controls with reference to the standalone
(REFERRED TO IN PARAGRAPH 2(A)(f) UNDER ‘REPORT ON financial statements based on our audit. We conducted
OTHER LEGAL AND REGULATORY REQUIREMENTS’ SECTION our audit in accordance with the Guidance Note and the
OF OUR REPORT OF EVEN DATE) Standards on Auditing, prescribed under section 143(10) of the
Act, to the extent applicable to an audit of internal financial
Opinion
controls with reference to financial statements. Those
We have audited the internal financial controls with reference Standards and the Guidance Note require that we comply
to financial statements of Metropolis Healthcare Limited (“the with ethical requirements and plan and perform the audit to
Company”) as of 31 March 2020 in conjunction with our audit of obtain reasonable assurance about whether adequate internal
the standalone financial statements of the Company for the financial controls with reference to the standalone financial
year ended on that date. statements were established and maintained and whether
In our opinion, the Company, has, in all material respects, such controls operated effectively in all material respects.
adequate internal financial controls with reference to the Our audit involves performing procedures to obtain audit
standalone financial statements and such internal financial evidence about the adequacy of the internal financial controls
controls were operating effectively as at 31 March 2020, with reference to the standalone financial statements and
based on the internal financial controls with reference to the their operating effectiveness. Our audit of internal financial
standalone financial statements criteria established by the controls with reference to the standalone financial statements
Company considering the essential components of internal included obtaining an understanding of such internal financial
control stated in the Guidance Note on Audit of Internal controls, assessing the risk that a material weakness
Financial Controls Over Financial Reporting issued by the exists, and testing and evaluating the design and operating
Institute of Chartered Accountants of India (the “Guidance effectiveness of internal control based on the assessed risk.
Note”). The procedures selected depend on the auditor’s judgement,
including the assessment of the risks of material misstatement
MANAGEMENT’S RESPONSIBILITY FOR INTERNAL FINANCIAL of the standalone financial statements, whether due to fraud
CONTROLS or error.
The Company’s Management and the Board of Directors are
We believe that the audit evidence we have obtained is
responsible for establishing and maintaining internal financial
sufficient and appropriate to provide a basis for our audit
controls based on the internal financial controls with reference
opinion on the Company’s internal financial controls with
to the standalone financial statements criteria established by
reference to the standalone financial statements.
the Company considering the essential components of internal
control stated in the Guidance Note. These responsibilities
MEANING OF INTERNAL FINANCIAL CONTROLS WITH
include the design, implementation and maintenance of
REFERENCE TO STANDALONE FINANCIAL STATEMENTS
adequate internal financial controls that were operating
A company’s internal financial controls with reference to
effectively for ensuring the orderly and efficient conduct
the standalone financial statements is a process designed
of its business, including adherence to Company’s policies,
to provide reasonable assurance regarding the reliability of
the safeguarding of its assets, the prevention and detection
financial reporting and the preparation of financial statements
of frauds and errors, the accuracy and completeness of the
for external purposes in accordance with generally accepted
accounting records, and the timely preparation of reliable
accounting principles. A company’s internal financial controls
financial information, as required under the Companies Act,
with reference to the standalone financial statements
2013 (hereinafter referred to as “Act”).

116 METROPOLIS HEALTHCARE LTD

 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS

ANNEXURE B TO THE INDEPENDENT AUDITORS’ REPORT ON THE STANDALONE FINANCIAL STATEMENTS OF

METROPOLIS HEALTHCARE LIMITED FOR THE YEAR ENDED 31 MARCH 2020 (CONTD.)

include those policies and procedures that: (1) pertain to the INHERENT LIMITATIONS OF INTERNAL FINANCIAL
maintenance of records that, in reasonable detail, accurately CONTROLS WITH REFERENCE TO STANDALONE FINANCIAL
and fairly reflect the transactions and dispositions of the STATEMENTS
assets of the company; (2) provide reasonable assurance that Because of the inherent limitations of internal financial
transactions are recorded as necessary to permit preparation controls with reference to the standalone financial statements,
of financial statements in accordance with generally accepted including the possibility of collusion or improper management
accounting principles, and that receipts and expenditures override of controls, material misstatements due to error or
of the company are being made only in accordance with fraud may occur and not be detected. Also, projections of any
authorisations of management and directors of the company; evaluation of the internal financial controls with reference
and (3) provide reasonable assurance regarding prevention to the standalone financial statements to future periods
or timely detection of unauthorised acquisition, use, or are subject to the risk that the internal financial controls
disposition of the company’s assets that could have a material with reference to the standalone financial statements may
effect on the financial statements. become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may
deteriorate.

For B S R & Co. LLP

Chartered Accountants
Firm’s Registration No: 101248W/W-100022
Tarun Kinger
Partner
Place: Mumbai Membership No: 105003
Date: 29 May 2020 ICAI UDIN: 20105003AAAABA3677

ANNUAL REPORT 2019-20 117

STANDALONE BALANCE SHEET
AS AT 31 MARCH 2020

(` in Lakhs)
Particulars Notes As at As at
31 March 2020 31 March 2019
I. ASSETS
Non-current assets
Property, plant and equipment 3 9,747.43 9,625.71
Right-of-use assets 46(6) 4,868.29 -
Goodwill 4 4,880.90 4,880.90
Other intangible assets 4 2,081.13 1,783.88
Intangible assets under development 298.89 577.30
Financial assets
Investments
i) Investments in subsidiaries, joint venture & associates 5 12,802.36 12,997.36
ii) Other investments 5 (d) 175.28 175.28
iii) Loans 6 450.66 337.81
iv) Derivatives 7 27.77 83.25
v) Other non current financial assets 8 1,105.28 1,007.90
Other non-current assets 9 519.88 109.19
Deferred tax assets (net) 37(d) 475.43 -
Non-current tax assets (net) 10 1,189.39 679.31
Total non current assets 38,622.69 32,257.89
Current assets
Inventories 11 1,745.84 1,964.80
Financial Assets
i) Investments 12 - 336.48
ii) Trade receivables 13 12,439.86 11,826.56
iii) Cash and cash equivalents 14(a) 6,743.18 879.83
iv) Bank balances other than cash and cash equivalents 14(b) 6,457.74 1,700.26
v) Loans 15 2,037.77 2,413.20
vi) Other current financial assets 16 168.28 899.57
Other current assets 17 614.39 485.59
Total current assets 30,207.06 20,506.29
TOTAL ASSETS 68,829.75 52,764.18
II. EQUITY AND LIABILITIES
Equity
Equity share capital 18 1,012.61 1,003.57
Other equity 19 50,225.85 40,536.83
Total Equity 51,238.46 41,540.40
Non current liabilities
Financial liabilities
Lease liabilities 46(7) 3,660.22 -
Provisions 21 458.69 233.31
Deferred tax liabilities (net) 37(d) - 599.15
Other non-current financial liabilities 20 106.55 208.89
Total non current liabilities 4,225.46 1,041.35
Current liabilities
Financial liabilities
i) Borrowings 22 - 1,734.47
ii) Lease liabilities 46(7) 1,693.59 -
iii) Trade payables 23
Total outstanding dues of micro and small enterprises 670.81 1.78
Total outstanding dues of creditors other than micro and small enterprises 6,418.89 3,603.16
iv) Other current financial liabilities 24 2,328.22 3,257.08
Other current liabilities 25 1,714.01 668.34
Provisions 26 411.28 354.97
Current tax liabilities (net) 27 129.03 562.63
Total current liabilities 13,365.83 10,182.43
TOTAL EQUITY AND LIABILITIES 68,829.75 52,764.18
Significant Accounting Policies 2
The accompanying notes form an integral part of these standalone financial statements
As per our report of even date attached
For B S R & Co. LLP For and on behalf of the Board of Directors Metropolis Healthcare Limited
Chartered Accountants L73100MH2000PLC192798
Firm Registration No: 101248W/W-100022
Tarun Kinger Dr. Sushil Shah Ameera Shah Poonam Tanwani
Partner Chairman & Executive Director Managing Director Company Secretary
Membership No: 105003 DIN: 00179918 DIN: 00208095 Membership No: ACS 19182
Place : Mumbai Place : Mumbai Place : Mumbai

Place : Mumbai Vijender Singh Rakesh Agarwal

Date : 29 May 2020 Chief Executive Officer Chief Financial Officer Date : 29 May 2020
Place : Gurugram Place : Gurugram

118 METROPOLIS HEALTHCARE LTD

 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS

STANDALONE STATEMENT OF PROFIT AND LOSS

FOR THE YEAR ENDED 31 MARCH 2020

(` in Lakhs)
Particulars Notes For the year ended For the year Ended
31 March 2020 31 March 2019
INCOME
Revenue from Operations 28 66,530.71 58,120.81
Other income 29 2,931.79 2,052.32
Total Income 69,462.50 60,173.13
EXPENSES
Cost of materials consumed 30 16,724.71 13,907.64
Laboratory testing charges 31 649.76 469.16
Employee benefits expense 32 14,766.62 13,694.67
Finance costs 33 656.01 51.83
Depreciation and amortisation expense 34 3,084.51 1,543.57
Other expenses 35 17,129.15 15,587.33
Total Expenses 53,010.76 45,254.20
Profit before tax and exceptional items 16,451.74 14,918.93
Exceptional Items 36 2,452.66 -
Profit before tax 13,999.08 14,918.93
Income tax expense: 37
1. Current Tax 3,933.00 4,717.00
2. Deferred Tax (income)/ expenses (909.62) 56.23
3. Tax adjustments for earlier years (229.73) -
Total Income tax expenses 2,793.65 4,773.23
Profit for the year 11,205.43 10,145.70
Other comprehensive income
Items that will not be reclassified subsequently to profit and loss
Remeasurements of the defined benefit plans 48(a) (201.67) 51.39
Income tax on above. 37 50.76 (17.96)
(150.91) 33.43
Other comprehensive income for the year, net of income tax (150.91) 33.43
Total comprehensive income for the year 11,054.52 10,179.13
Earnings per equity share
Equity shares of face value of ` 2 each 38
Basic earnings per share 22.32 20.32
Diluted earnings per share 22.22 20.28
Significant Accounting Policies 2
The accompanying notes form an integral part of these standalone financial statements

As per our report of even date attached

For B S R & Co. LLP For and on behalf of the Board of Directors Metropolis Healthcare Limited
Chartered Accountants L73100MH2000PLC192798
Firm Registration No: 101248W/W-100022
Tarun Kinger Dr. Sushil Shah Ameera Shah Poonam Tanwani
Partner Chairman & Executive Director Managing Director Company Secretary
Membership No: 105003 DIN: 00179918 DIN: 00208095 Membership No: ACS 19182
Place : Mumbai Place : Mumbai Place : Mumbai

Place : Mumbai Vijender Singh Rakesh Agarwal

Date : 29 May 2020 Chief Executive Officer Chief Financial Officer Date : 29 May 2020
Place : Gurugram Place : Gurugram

ANNUAL REPORT 2019-20 119

STANDALONE STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2020

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
A CASH FLOW FROM OPERATING ACTIVITIES
Profit before tax 13,999.08 14,918.93
Adjustments for :
Depreciation and amortisation expense 3,084.51 1,543.57
Interest on lease Liabilities 581.81 -
Fair value gain on mutual fund investments - (114.93)
Provision for impairment of non-current investments 195.00
Provision for impairment of current investments 336.48 144.20
Loss on sale of debt instrument measured at FVOCI - 3.79
Property, Plant & Equipment written off 37.91 -
Loss/(Gain) on derivative assets 55.48 (46.83)
Provision for bad and doubtful debts (net) 3,144.53 340.32
Provision for doubtful advances (net) 241.04 -
Share based payment expenses (Refer Note 32) 72.38 443.89
Interest on deferred purchase consideration 24.13 40.13
Foreign exchange (gain) (net) (307.36) (145.66)
Interest expense paid on borrowings 50.07 11.70
Sundry balances written back (net) (43.90) (100.92)
Interest income (326.22) (287.56)
Interest income on income tax refund - (1.62)
Dividend income from mutual funds and related parties (2,205.00) (1,449.64)
Operating profit before working capital changes 18,939.94 15,299.37
Working capital adjustments:
Increase / (Decrease) in inventories 224.79 (469.29)
Increase / (Decrease) in loans (current and non-current) 283.32 (499.84)
(Decrease) in other current assets (Current and non current) (146.31) (115.96)
(Decrease) in trade receivables (3,757.83) (3,840.53)
Increase / (Decrease) in other current financial assets 779.28 (779.28)
Increase in provisions 80.01 71.45
Increase in trade payables 3,067.09 1,084.96
(Decrease) in other current financial liabilities (141.83) (34.51)
Increase in other current liabilities 1,045.67 100.32
Cash generated from operating activities 20,374.13 10,816.69
Income tax paid (net) (4,761.15) (5,173.98)
Net cash generated from operating activities (A) 15,612.98 5,642.71
B CASH FLOW FROM INVESTING ACTIVITIES:
Purchase of property, plant and equipment, Intangible and capital work-in (2,274.01) (1,927.87)
progress (Including capital advances and capital creditors)
Purchase consideration paid towards acquisition of business (335.26) (129.12)
Purchase of current investments - (2,850.00)
Proceeds from sale of current investments - 9,232.12
(Investments) in subsidiaries and joint venture - (5,647.79)
Loans (Given)/ Received back from Related Parties (net) (95.71) 87.22
Interest Income received 242.25 345.93
Dividend Income received 2,205.00 1,449.64
Investment in fixed deposits (having maturity more than 3 months) (net) (4,854.86) (995.28)
Net cash (used in) investing activities (B) (5,112.59) (435.15)

120 METROPOLIS HEALTHCARE LTD

 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS

STANDALONE STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2020 (CONTD.)

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
C CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from Share warrants exercise (Refer Note 53) - 224.45
(Repayment)/Proceeds from borrowing (net) (1,734.47) 1,734.47
Share based payments - (355.45)
Repayment of lease liabilities (1,073.77) -
Proceeds from issue of shares to ESOP holders (refer note 49 (c) 3,189.28 32.80
Payment of Dividend (4,014.29) (6,653.69)
Payment of Dividend Distribution Tax (371.91) (1,367.69)
Interest expense on lease liabilities (581.81) -
Interest expense paid on borrowings (50.07) (11.70)
Net cash (used in) financing activities (C) (4,637.04) (6,396.81)
Net Increase/ (Decrease) in cash and cash equivalents (A+B+C) 5,863.35 (1,189.25)
Cash and Cash Equivalents at the beginning of the year 879.83 2,069.08
Cash and Cash Equivalents at the end of the year (Refer note14(a)) 6,743.18 879.83

1 The Cash Flow Statement has been prepared under the “Indirect Method” as set out in the Indian Accounting Standard - 7
“Cash Flow Statement”.

2 The figures in the brackets indicate outflow of cash and cash equivalents.

3 During the previous year ended 31 March 2019, 64,596 shares against total consideration of ` 2,634.22 Lakhs at premium of
`4,068 per share were issued to shareholders of subsidiary for acquiring balance stake (Refer Note 51 (a)).

4 During the previous year ended 31 March 2019, 1 share for total non consideration of ` 0.00 Lakhs was issued to shareholders
of Bacchus Hospitality Services and Real Estate Private Limited pursuant to amalgamation (Refer Note41(iii)).

5 The movement of borrowing as per Ind AS 7 is as follows:

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Balance at beginning of the year 1,734.47 -
Cashflows (1,734.47) 1,734.47
Balance as at the end of year - 1,734.47

The accompanying notes form an integral part of these standalone financial statements

As per our report of even date attached

For B S R & Co. LLP For and on behalf of the Board of Directors Metropolis Healthcare Limited
Chartered Accountants L73100MH2000PLC192798
Firm Registration No: 101248W/W-100022
Tarun Kinger Dr. Sushil Shah Ameera Shah Poonam Tanwani
Partner Chairman & Executive Director Managing Director Company Secretary
Membership No: 105003 DIN: 00179918 DIN: 00208095 Membership No: ACS 19182
Place : Mumbai Place : Mumbai Place : Mumbai

Place : Mumbai Vijender Singh Rakesh Agarwal

Date : 29 May 2020 Chief Executive Officer Chief Financial Officer Date : 29 May 2020
Place : Gurugram Place : Gurugram

ANNUAL REPORT 2019-20 121

STANDALONE STATEMENT OF CHANGES IN EQUITY (‘SOCIE’)
FOR THE YEAR ENDED 31 MARCH 2020

(A) EQUITY SHARE CAPITAL (REFER NOTE 18)

Particulars Number of shares Amount

(` in Lakhs)
Balance as at 1 April 2018 95,43,646 954.36
Changes in equity share capital during the year
-Issued under Metropolis Employee Stock Option Scheme 2007 (Refer Note 32,800 3.28
49(c))
-Issued on exercise of share warrants (Refer Note 53) 8,703 0.87
-Issued to the Shareholders of Subsidiary Companies on acquisition of further 64,596 6.46
stake (Refer Note 51(a))
-Issued to the Shareholders of Bacchus Hospitality Services and Real Estate 26,57,731 265.77
Private Limited pursuant to the scheme of amalgamation (Refer Note 41(iii))
-Cancellation of the old shares of Bacchus Hospitality Services and Real Estate (26,57,730) (265.77)
Private Limited pursuant to the scheme of amalgamation (Refer Note 41(iii))
-Issue of Bonus Shares (Refer note18) 3,85,990 38.60
Outstanding before sub-division of shares 1,00,35,736 1,003.57
Adjustment for Sub-Division of Equity Shares (Refer Note 18(g)) 4,01,42,944 -
Balance as at 1 April 2019 5,01,78,680 1,003.57
Changes in equity share capital during the year
Issued under Metropolis Employee Stock Option Scheme 2015 (Refer Note 49(c) ) 4,51,886 9.04
Balance as at 31 March 2020 5,06,30,566 1,012.61

(A) OTHER EQUITY (REFER NOTE 19)

Fully Reserves & Surplus Other comprehensive Total other

convert- income (OCI) equity
ible share
warrants Secu- General Capital Employ- Retained Remeasure- Debts in-
(Refer rities reserve redemp- ee stock earnings ments of the struments
Note 53) premium tion options defined ben- through
reserve reserve efit plans OCI
Balance as at 1 April 2018 0.20 5,826.41 1,684.07 32.05 170.34 27744.28 (8.78) 0.27 35,448.84
Profit for the year - - - - - 10,145.70 - - 10,145.70
Gain on re-measurement - - - - - - 33.43 - 33.43
of defined benefit plans
(net of tax)
Total comprehensive - - - - - 10,145.70 33.43 - 10,179.13
income
Share warrants exercised (0.20) 223.58 - - - - - - 223.38
during the year (Refer
Note 53)
Utlilised during the year - (0.00)^ - - - - - - (0.00)
pursuant to the scheme
of Amalgamation with
Bacchus Hospitality
Services and Real Estate
Private Limited. (Refer
Note41(iii))
Utilised on issue of bonus - (6.55) - (32.05) - - - - (38.60)
shares
Share options exercised - 29.52 - - - - - - 29.52
under MESOS 2007 (Refer
Note49(c) )

122 METROPOLIS HEALTHCARE LTD

 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS

STANDALONE STATEMENT OF CHANGES IN EQUITY (‘SOCIE’)

FOR THE YEAR ENDED 31 MARCH 2020 (CONTD.)

Fully Reserves & Surplus Other comprehensive Total other

convert- income (OCI) equity
ible share
warrants Secu- General Capital Employ- Retained Remeasure- Debts in-
(Refer rities reserve redemp- ee stock earnings ments of the struments
Note 53) premium tion options defined ben- through
reserve reserve efit plans OCI
Shares Issued to the - 2,627.77 - - - - - 2,627.77
Shareholders of Subsidiary
Companies on acquisition
of further stake (Refer
Note 51(a))
Interim Dividend - - - - - (6,653.69) - - (6,653.69)
Tax on Interim dividend - - - - - (1,367.69) - - (1,367.69)
Share based payments - - - - 88.44 - - - 88.44
(Refer Note 32)
Transfer to statement of - - - - - - - (0.27) (0.27)
profit and loss
Balance as at 31 March 2019 - 8,700.73 1,684.07 - 258.78 29,868.60 24.65 - 40,536.83
Profit for the year - - - - - 11,205.43 - - 11,205.43
(Loss) on re-measurement - - - - - - (150.91) - (150.91)
of defined benefit plans
(net of tax)
Total comprehensive - - - - - 11,054.52 (150.91) - 11,054.52
income
Interim Dividend - - - - - (4,014.29) - - (4,014.29)
Tax on Interim dividend - - - - - (371.91) - - (371.91)
Share options exercised - 3,180.24 124.10 - - - - - 3,304.34
under MESOS 2015 (Refer
Note 49('c))
Share based payments - - - - (51.72) - - - (51.72)
(Refer Note 19 & 32)
Impact of IND AS 116 for - - - - - (231.91) - - (231.91)
Opening balance (Refer
Note 46 )
Balance as at 31 March 2020 - 11,880.97 1,808.17 - 207.06 36,455.91 (126.26) - 50,225.85

^ Amount is ` 10

The accompanying notes form an integral part of these standalone financial statements

As per our report of even date attached

For B S R & Co. LLP For and on behalf of the Board of Directors Metropolis Healthcare Limited
Chartered Accountants L73100MH2000PLC192798
Firm Registration No: 101248W/W-100022
Tarun Kinger Dr. Sushil Shah Ameera Shah Poonam Tanwani
Partner Chairman & Executive Director Managing Director Company Secretary
Membership No: 105003 DIN: 00179918 DIN: 00208095 Membership No: ACS 19182
Place : Mumbai Place : Mumbai Place : Mumbai

Place : Mumbai Vijender Singh Rakesh Agarwal

Date : 29 May 2020 Chief Executive Officer Chief Financial Officer Date : 29 May 2020
Place : Gurugram Place : Gurugram

ANNUAL REPORT 2019-20 123

NOTES TO STANDALONE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020

1 BACKGROUND OF THE COMPANY AND NATURE OF d) it is cash or cash equivalent unless it is

OPERATION restricted from being exchanged or used to
Metropolis Healthcare Limited (the ‘Company’), was settle a liability for at least twelve months after
incorporated in India as Pathnet India Private Limited in the reporting date.
the year 2000 and is engaged in the business of providing Liabilities:
pathology and related healthcare services. A liability is classified as current when it satisfies
The registered office of the Company is located at 250- any of the following criteria:
D, Udyog Bhavan, Hind Cycle Marg, Worli, Mumbai. The a) it is expected to be settled in the Company’s
Company got listed on Bombay Stock Exchange (BSE) normal operating cycle;
and National Stock Exchange (NSE) on 15 April 2019 b) it is held primarily for the purpose of being
through sale of equity shares by Dr. Sushil Kanubhai Shah traded;
and CA Lotus Investments.”
c) it is due to be settled within twelve months
after the reporting date; or
2 BASIS OF PREPARATION, MEASUREMENT AND
d) the Company does not have an unconditional
SIGNIFICANT ACCOUNTING POLICIES
right to defer settlement of the liability for at
2.1 Basis of preparation and measurement least twelve months after the reporting date.
a Statement of compliance: Terms of a liability that could, at the option of
The standalone Balance Sheet of the Company as the counterparty, result in its settlement by
at 31 March 2020 and the standalone Statement of the issue of equity instruments do not affect
Profit and Loss (including Other Comprehensive its classification.
Income), the Standalone Statement of Changes in Operating cycle:
Equity and the standalone Statement of Cash flows
All assets and liabilities have been classified as
for the year ended 31 March 2020 and summary of
current or non-current as per the company normal
significant accounting policies and other financial
operating cycle and other criteria set out in the
information (together referred as ‘Standalone
Schedule III to the Companies Act 2013. Based on
Financial Statements’) has been prepared under
the nature of services and the time taken between
Indian Accounting Standards (‘Ind AS’) notified
acquisition of assets/inventories for processing
under Section 133 of the Companies Act, 2013 read
and their realization in cash and cash equivalents,
with the Companies (Indian Accounting Standards)
the Company has ascertained its operating cycle as
Rules, 2015, as amended by the Companies (Indian
twelve months for the purpose of the classification
Accounting Standard) amendment Rules, 2018.
of assets and liabilities into current and non-
The standalone financial statements of the current.
Company for year ended 31 March 2020 were d Basis of measurement
authorised for issue in accordance with a resolution These financial statements have been prepared on
of the Board of Directors on 29 May 2020. accrual and going concern basis and the historical
b Current vs non-current classification: cost convention except for the following assets and
All the assets and liabilities have been classified liabilities which have been measured at fair value or
into current and non current. revalued amount:
Assets: • Certain financial assets and liabilities
An asset is classified as current when it satisfies (including derivative instruments) measured
any of the following criteria: at fair value
a) it is expected to be realised in, or is intended • Assets and liabilities assumed on business
for sale or consumption in, the Company’s combination measured at fair value
normal operating cycle; • Equity settled share-based payments
b) it is held primarily for the purpose of being measured at fair value
traded; • Net defined benefit asset / liability - Fair value
c) it is expected to be realised within twelve of plan assets less present value of defined
months after the reporting date; or benefit obligations.

124 METROPOLIS HEALTHCARE LTD

 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS

NOTES TO STANDALONE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

e Key estimates and assumptions Level 3: inputs for the asset or liability that are not
In preparing these financial statements, based on observable market data (unobservable
management has made judgements, estimates inputs).
and assumptions that affect the application of If the inputs used to measure the fair value of an
accounting policies and the reported amounts of asset or a liability fall into different levels of the fair
assets, liabilities, income and expenses. Actual
value hierarchy, then the fair value measurement is
results may differ from these estimates.
categorized in its entirety in the same level of the
The areas involving critical estimates or judgements fair value hierarchy as the lowest level input that is
are : significant to the entire measurement.
i. Determination of useful lives of property, plant The Company recognises transfers between levels
and equipment and intangibles; (Note 2.2(b)) of the fair value hierarchy at the end of the reporting
ii. Impairment test of non-financial assets (Note year during which the change has occurred.
2.2(d))
Further information about the assumptions made
iii. Recognition of deferred tax assets; (Note in measuring fair values is included in the following
2.2(n)) notes
iv. Recognition and measurement of provisions
- Financial instruments (Note 39)
and contingencies; (Note 2.2(i))
v. Fair value of financial instruments (Note 2.2(e)) - Share-based payment arrangements (Note 49 (c))

vi. Impairment of financial assets (Note 2.2(e)) - Business combination (Note 41)
vii. Measurement of defined benefit obligations; 2.2 Significant accounting policies
(Note 2.2(l)) a) Business combinations
viii. Fair valuation of employee share options;
In accordance with Ind AS 103, the Company
(Note 2.2(l))
accounts for these business combinations using the
ix. Fair value measurement of consideration acquisition method when the control is transferred
and net assets acquired as part of business to the Company. The consideration transferred for
combination (Note 2.2(a)). the business combinations is generally measured
f Measurement of fair values at fair value as at the date the control is acquired
Company’s accounting policies and disclosures (acquisition date), as are the net identifiable assets
require the measurement of fair values, for both acquired. Any goodwill that arises is tested annually
financial and non-financial assets and liabilities. for impairment.

The Company has an established control framework Acquisition related costs are expensed as incurred,
with respect to the measurement of fair values except to the extent related to the issue of debt or
(including Level 3 fair values). equity securities

The Company uses valuation techniques that are Common Control:

appropriate in the circumstances and for which Business combinations involving entities that are
sufficient data are available to measure fair value, ultimately controlled by the same part(ies) before
maximizing the use of relevant observable inputs and after the business combination are considered
and minimizing the use of unobservable inputs. as Common control entities and are accounted
using the pooling of interest method as follows:
Fair values are categorized into different levels in a
fair value hierarchy based on the inputs used in the - The assets and liabilities of the combining
valuation techniques as follows. entities are reflected at their carrying
Level 1: quoted prices (unadjusted) in active markets amounts.
for identical assets or liabilities. - No adjustments are made to reflect the fair
Level 2: inputs other than quoted prices included in values, or recognise new assets or liabilities.
Level 1 that are observable for the asset or liability, Adjustments are made to harmonise
either directly (i.e. as prices) or indirectly (i.e. accounting policies.
derived from prices).

ANNUAL REPORT 2019-20 125

NOTES TO STANDALONE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

- The financial information in the financial flow to the Company and that the cost of the item
statements in respect of prior periods is can be reliably measured. The carrying amount of
restated as if the business combination has any component accounted for as a separate asset
occurred from the beginning of the preceding is derecognized when replaced. All other repair and
period in the financial statements, irrespective maintenance are charged to statement of profit
of the actual date of the combination. and loss during the reporting year in which they are
incurred.
The balance of the retained earnings appearing
in the financial statements of the transferor Depreciation:
is aggregated with the corresponding balance Depreciation on property, plant and equipment,
appearing in the financial statements of the other than leasehold improvements, is provided
transferee or is adjusted against general reserve. under the written down value method in the manner
prescribed under Schedule II of the Act, except in
The identity of the reserves are preserved and the
the following case where the life is different than as
reserves of the transferor become the reserves of
indicated in Schedule II of the Act which is based on
the transferee.
the technical evaluation of useful life carried out by
The difference if any, between the amounts the management:
recorded as share capital plus any additional
consideration in the form of cash or other assets Particulars Manage- Useful
and the amount of share capital of the transferor ment's life as per
estimate of Schedule
is transferred to capital reserve and is presented
useful life II
separately from other capital reserves.
Laboratory Equipment's 13 years 10 years
b) Property plant and equipment (Plant & Equipment's) :
Recognition and measurement: (Electrical Machinery,
Items of property, plant and equipment, other X-ray & diagnostic
than freehold land are measured at cost less equipment's namely Cat-
accumulated depreciation and any accumulated stan, Ultrasound , ECG
impairment losses. monitors.)
Computers 6 years 3 years
Freehold land is carried are cost and is not
depreciated. The cost of an item of property, Furniture and Fixtures 15 years 10 years
plant and equipment comprises its purchase Vehicles 10 years 8 years
price, including import duties and non-refundable Leasehold improvement are depreciated over the
purchase taxes, (after deducting trade discounts tenure of lease term.
and rebates), any directly attributable costs of
bringing the asset to its working condition for its Depreciation methods, useful lives and residual
intended use and estimated costs of dismantling values are reviewed at each reporting date and
and removing the item and restoring the item and adjusted if appropriate.
restoring the site on which it is located. c) Intangible assets
Goodwill
If significant parts of an item of property, plant
and equipment have different useful lives, then Goodwill that arises on a business combination
they are accounted for as separate items (major is subsequently measured at cost less any
components) of property, plant and equipment. accumulated impairment losses.
Other Intangible assets:
Any gain or loss on derecognition of an item
of property, plant and equipment is included in Intangible assets acquired separately are measured
statement of profit and loss when the item is on initial recognition at cost. The cost of intangible
derecognized. assets acquired in a business combination is their
fair value at the date of acquisition.
Subsequent costs are included in the assets
carrying amount or recognized as a separate asset, Following initial recognition, intangible assets are
as appropriate only if it is probable that the future carried at cost less accumulated amortisation and
economic benefits associated with the item will any accumulated impairment losses.

126 METROPOLIS HEALTHCARE LTD

 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS

NOTES TO STANDALONE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

Amortization: e) Financial Instruments

Amortization is calculated to write off the cost A financial instrument is any contract that gives
of intangible assets less their estimated residual rise to a financial asset of one entity and a financial
values using the straight-line method over their liability or equity instrument of another entity.
estimated useful lives, and is recognized in Financial instruments also include derivative
statement of profit and loss. contracts such as call options to buy out stake in
subsidiary.”
The estimated useful lives for current and
comparative periods are as follows: 1 Financial assets

Computer software - 5 years Initial recognition and measurement

Financial assets are initially recognized
Brand - 10 years
when the Company becomes a party to the
Customer relationship - 5 years contractual provisions of the instrument. All
financial assets other than those measured
Amortisation method, useful lives and residual
subsequently at fair value through profit and
values are reviewed at the end of each financial year
loss, are recognized initially at fair value plus
and adjusted, if appropriate.
transaction costs that are attributable to the
d) Impairment of non-financial assets acquisition of the financial asset.
The Company’s non-financial assets, other than
Subsequent measurement
inventories and deferred tax assets, are reviewed at
For the purpose of subsequent measurement,
each reporting date to determine whether there is
financial assets are classified in four
any indication of impairment. If any such indication
categories:
exists, then the asset’s recoverable amount is
estimated. • Amortized cost,

The recoverable amount of an individual asset • Fair value through profit (FVTPL)
(or where applicable, that of cash generating unit • Fair value through other comprehensive
(CGU) to which the asset belongs) is the higher of income (FVTOCI) on the basis of its
its value in use and its fair value less costs to sell. business model for managing the
Value in use is based on the estimated future cash financial assets and the contractual
flows, discounted to their present value using a cash flow characteristics of the financial
pre-tax discount rate that reflects current market asset.
assessments of the time value of money and the Amortized cost :
risks specific to the asset (or CGU).
A financial instrument is measured at the
An impairment loss is recognised if the carrying amortized cost if both the following conditions
amount of an asset or CGU exceeds its estimated are met:
recoverable amount. Impairment losses are
The asset is held within a business model
recognised in the statement of profit and loss.
whose objective is to hold assets for
An impairment loss in respect of goodwill is not collecting contractual cash flows, and
subsequently reversed. In respect of other assets contractual terms of the asset give rise on
for which impairment loss has been recognised specified dates to cash flows that are solely
in prior periods, the Company reviews at each payments of principal and interest (SPPI) on
reporting date whether there is any indication the principal amount outstanding.
that the loss has decreased or no longer exists. After initial measurement, such financial
An impairment loss is reversed if there has been assets are subsequently measured at
a change in the estimates used to determine the amortized cost using the effective interest
recoverable amount. Such a reversal is made only to rate (EIR) method.
the extent that the asset’s carrying amount does not
exceed the carrying amount that would have been Fair value through profit and loss (‘FVTPL’):
determined, net of depreciation or amortisation, if All financial assets that do not meet the
no impairment loss had been recognised. criteria for amortised cost or fair value

ANNUAL REPORT 2019-20 127

NOTES TO STANDALONE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

through other comprehensive income are The Company has transferred its rights to
measured at fair value through profit or loss receive cash flows from the asset or has
with all changes recognized in the standalone assumed an obligation to pay the received cash
statement of profit and loss. Interest income flows in full without material delay to a third
(basis EIR method), from financial assets at party under a ‘pass-through’ arrangement; and
fair value through profit or loss is recognised in either
the statement of profit and loss within finance
- (a) the Company has transferred
income/ finance costs separately from the
substantially all the risks and rewards of
other gains/ losses arising from changes in the
the asset, or
fair value.
- (b) the Company has neither transferred nor
Derivative financial instruments (call option
retained substantially all the risks and
over shares of subsidiaries) are classified as
rewards of the asset, but has transferred
financial instruments at fair value through
control of the asset.
profit or loss. Such derivative financial
instruments are initially recognised at fair On de-recognition, any gains or losses on all
value. equity instruments (measured at FVTPL) and
debt instruments (other than debt instruments
They are subsequently re-measured at their
measured at FVOCI) are recognized in the
fair value, with changes in fair value being
Statement of Profit and Loss. Gains and losses
recognised in the statement of profit and loss.
in respect of debt instruments measured at
Fair value through Other Comprehensive FVOCI and that are accumulated in OCI are
Income (‘FVOCI’) reclassified to profit or loss on de-recognition.
Financial assets are measured at FVOCI if both
Impairment of financial assets
the following conditions are met:
In accordance with Ind-AS 109, the Company
The asset is held within a business model applies Expected Credit Loss (“ECL”) model for
whose objective is achieved by both measurement and recognition of impairment
- collecting contractual cash flows and loss on the financial assets measured
selling financial assets and at amortized cost and debt instruments
measured at FVOCI.
- contractual terms of the asset give
rise on specified dates to cash flows Trade receivables
that are SPPI on the principal amount The Company reviews its trade receivables to
outstanding. assess impairment at regular intervals. The
Group’s credit risk is primarily attributable to
After initial measurement, these assets
its trade receivables. In determining whether
are subsequently measured at fair value.
impairment losses should be reported in
Dividends, Interest income under effective
the statement of profit and loss, the Group
interest method, foreign exchange gains and
makes judgments as to whether there is any
losses and impairment losses are recognized
observable data indicating that there is a
in the Statement of Profit and Loss.
measurable decrease in the estimated future
Other net gains and losses are recognized in cash flows. Accordingly, an allowance for
other comprehensive Income. expected credit loss is made where there is
Derecognition: an identified loss event or condition which,
based on previous experience, is evidence of
A financial asset (or, where applicable, a part of
a reduction in the recoverability of the cash
a financial asset or a part of a group of similar
flows.
financial assets) is primarily derecognized (i.e.
removed from the Company’s balance sheet) Impairment of financial instruments (other
when: than at fair value)

The contractual rights to receive cash flows The Company assesses on a forward-looking
from the financial asset have expired, or basis the expected credit loss associated

128 METROPOLIS HEALTHCARE LTD

 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS

NOTES TO STANDALONE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

with its assets carried at amortised cost and or cancelled or expires. When an existing
FVTOCI debt instruments. The impairment financial liability is replaced by another from
methodology applied depends on whether the same lender on substantially different
there has been a significant increase in credit terms, or the terms of an existing liability are
risk. For trade receivables only, the Company substantially modified, such an exchange or
applies the simplified approach permitted modification is treated as the derecognition
by Ind AS 109 - Financial Instruments, which of the original liability and the recognition of a
requires expected lifetime losses to be new liability. The difference in the respective
recognised from initial recognition of the carrying amounts is recognized in the
receivables. statement of profit or loss.

2 Financial liabilities Derivative financial instruments

Initial recognition and measurement Derivative financial instruments are initially
Financial liabilities are initially recognized recognised at fair value on the date on which
when the Company becomes a party to the a derivative contract is entered into and
contractual provisions of the instrument. are subsequently re-measured at fair value
through profit or loss account. Derivatives are
Financial liability is initially measured at fair carried as financial assets when the fair value
value plus, for an item not at fair value through is positive and as financial liabilities when the
profit and loss, transaction costs that are fair value is negative.
directly attributable to its acquisition or issue.
Offsetting of financial instruments
Subsequent measurement
Financial assets and financial liabilities
Subsequent measurement is determined are offset and the net amount is reported
with reference to the classification of the in the balance sheet if there is a currently
respective financial liabilities. enforceable legal right to offset the recognized
Financial Liabilities at Fair Value through amounts and there is an intention to settle on
Profit or Loss (FVTPL): a net basis, or to realize the assets and settle
A financial liability is classified as Fair Value the liabilities simultaneously.
through Profit or Loss (FVTPL) if it is classified f) Investments in subsidiaries, associates and joint
as held-for trading or is designated as such ventures:
on initial recognition. Financial liabilities at Investments representing equity interest in
FVTPL are measured at fair value and changes subsidiaries, associates and joint ventures carried
therein, including any interest expense, are at cost less any provision for impairment.
recognized in the Statement of Profit and
Investments are reviewed for impairment if events
Loss.
or changes in circumstances indicate that the
Financial Liabilities at amortized cost: carrying amount may not be recoverable.
After initial recognition, financial liabilities g) Inventories
other than those which are classified as FVTPL Inventories comprise of reagents, chemicals,
are subsequently measured at amortized cost diagnostic kits, medicines and consumables.
using the effective interest rate (“EIR”) method. Inventories are valued at lower of cost and net
Amortized cost is calculated by taking into realizable value. Cost comprises the cost of
account any discount or premium and fees or purchase and all other costs attributed to bring the
costs that are an integral part of the EIR. The goods to that particular condition and location. Net
amortization done using the EIR method is realizable value is the estimated selling price in the
included as finance costs in the Statement of ordinary course of business, less the estimated
Profit and Loss costs of completion and selling expenses.

Derecognition h) Cash and Cash Equivalents

A financial liability is derecognized when the Cash and cash equivalents in the balance sheet and
obligation under the liability is discharged cash flow statement includes cash at bank and on

ANNUAL REPORT 2019-20 129

NOTES TO STANDALONE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

hand, deposits held at call with banks, with original Revenue is recognised once the testing samples are
maturities less than three months which are readily processed for requisitioned test, to the extent that
convertible into cash and which are subject to it is probable that the economic benefits will flow to
insignificant risk of changes in value. the Company and revenue can be reliably measured.
i) Provisions, Contingent Liabilities and Contingent Contract liabilities - A contract liability is the
Assets obligation to transfer services to a customer for
A provision is recognized when the enterprise has a which the Company has received consideration
present obligation (legal or constructive) as a result from the customer. If a customer pays consideration
of a past event and it is probable that an outflow before the Company transfers services to the
of resources embodying economic benefits will customer, a contract liability is recognised when the
be required to settle the obligation, in respect of payment is made. Contract liabilities are recognised
which a reliable estimate can be made. These are as revenue when the Company performs under the
reviewed at each balance sheet date and adjusted contract.
to reflect the current management estimates.
k) Other income
If the effect of the time value of money is material, Interest income
provisions are determined by discounting the For all financial instruments measured at amortized
expected future cash flows specific to the liability. cost, interest income is recorded using the effective
The unwinding of the discount is recognized as interest rate (EIR). EIR is the rate which exactly
finance cost. discounts the estimated future cash receipts over
Contingent Liabilities are disclosed in respect of the expected life of the financial instrument to
possible obligations that arise from past events but the gross carrying amount of the financial asset.
their existence is confirmed by the occurrence or When calculating the EIR the Company estimates
non-occurrence of one or more uncertain future the expected cash flows by considering all the
events not wholly within the control of the Company. contractual terms of the financial instrument (for
example, prepayments, extensions, call and similar
A contingent asset is a possible asset that arises options); expected credit losses are considered
from past events and whose existence will be if the credit risk on that financial instrument has
confirmed only by the occurrence or non-occurrence increased significantly since initial recognition
of one or more uncertain future events not wholly
Dividend income
within the control of the entity. Contingent Assets
are not recognized till the realization of the income Dividends are recognized in statement of profit and
is virtually certain. However the same are disclosed loss on the date on which the Company’s right to
in the financial statements where an inflow of receive payment is established.
economic benefit is probable. l) Employee Benefits
j) Revenue Recognition (i) Short-term Employee benefits
Revenue is recognised at an amount that reflects Liabilities for wages and salaries, bonus,
the consideration to which the Company expects to compensated absences and ex gratia including
be entitled in exchange for transferring the goods non-monetary benefits that are expected to be
or services to a customer i.e. on transfer of control settled wholly within twelve months after the
of the service to the customer. Revenue from sales end of the year in which the employees render
of goods or rendering of services is net of indirect the related service are classified as short term
taxes, returns and discounts; employee benefits and are recognized as an
expense in the Statement of Profit and Loss as
Revenue comprise of revenue from providing
the related service is provided.
healthcare services such as health checkup and
laboratory services. A liability is recognized for the amount
expected to be paid if the Company has a
Pathology service is the only principal activity
present legal or constructive obligation to
and reportable segment from which the Group
pay this amount as a result of past service
generates its revenue.
provided by the employee and the obligation
can be estimated reliably.

130 METROPOLIS HEALTHCARE LTD

 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS

NOTES TO STANDALONE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

(ii) Share-based payments balance sheet date by an independent actuary

The cost of equity settled transactions is using the projected unit credit method. The
determined by the fair value at the grant date Company makes annual contribution to the
which is based on the Black Scholes model. fund based on the expected requirement.
The grant date fair value of options granted Re-measurement of the net defined benefit
to employees is recognized as an employee liability, which comprise actuarial gains and
expense, with a corresponding increase losses, the return on plan assets (excluding
in equity under “Employee Stock Options interest) and the effect of the asset ceiling
Reserve”, over the period that the employees (if any, excluding interest), are recognised
become unconditionally entitled to the immediately in other comprehensive income
options. (OCI).
The expense so determined is recognised m) Leases
over the requisite vesting period, which is The Company has adopted Ind AS 116-Leases
the period over which all of the specified effective 1 April, 2019, using the modified
vesting conditions are to be satisfied. As at retrospective method. The Company has applied
each reporting date, the Company revises its the standard to its leases with the cumulative
estimates of the number of options that are impact recognised on the date of initial application
expected to vest, if required. (1st April, 2019). Accordingly, previous period
When the terms of an equity-settled award are information has not been restated.
modified, in addition to the expense pertaining The Company’s lease asset classes primarily consist
to the original award, an incremental expense of leases for premises. The Company assesses
is recognised for any modification that whether a contract is or contains a lease, at
results in additional fair value, or is otherwise inception of a contract. A contract is, or contains,
beneficial to the employee as measured at the a lease if the contract conveys the right to control
date of modification. the use of an identified asset for a period of time in
(iii) Post-Employment Benefits exchange for consideration. To assess whether a
contract conveys the right to control the use of an
Defined Contribution Plans:
identified asset, the Company assesses whether:
A defined contribution plan is a post-
employment benefit plan under which a (i) the contract involves the use of an identified
Company pays specified contributions to asset
a separate entity and has no obligation to (ii) the Company has substantially all of the
pay any further amounts. The Company economic benefits from use of the asset
makes contribution to provident fund in through the period of the lease and
accordance with Employees Provident Fund
and Miscellaneous Provisions Act, 1952 and (iii) the Company has the right to direct the use of
Employee State Insurance. Contribution paid the asset
or payable in respect of defined contribution At the date of commencement of the lease, the
plan is recognized as an expense in the year in Company recognises a right-of-use asset (“ROU”)
which services are rendered by the employee. and a corresponding lease liability for all lease
Defined Benefit Plans: arrangements in which it is a lessee, except for
leases with a term of twelve months or less (short
The Company’s gratuity benefit scheme is a
term leases) and leases of low value assets. For
defined benefit plan. The liability is recognised
these short term and leases of low value assets,
in the balance sheet in respect of gratuity is the
the Company recognises the lease payments as an
present value of the defined benefit/obligation
operating expense on a straight line basis over the
at the balance sheet date less the fair value of
term of the lease.”
plan assets (being funded portion), together
with adjustments for unrecognised actuarial The right-of-use assets are initially recognised at
gain losses and past service costs. The cost, which comprises the initial amount of the
defined benefit/obligation are calculated at lease liability adjusted for any lease payments made

ANNUAL REPORT 2019-20 131

NOTES TO STANDALONE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

at or prior to the commencement date of the lease Deferred Tax

plus any initial direct costs less any lease incentives. Deferred Income tax is recognized in respect
They are subsequently measured at cost less of temporary differences between the carrying
accumulated depreciation and impairment losses, amount of assets and liabilities for financial
if any. Right-of-use assets are depreciated from the reporting purpose and the amount considered for
commencement date on a straight-line basis over tax purpose.
the shorter of the lease term and useful life of the
underlying asset. Deferred tax assets are recognized for unused
tax losses, unused tax credits and deductible
The lease liability is initially measured at the present
temporary differences to the extent that it is
value of the future lease payments. The lease
probable that future taxable profits will be available
payments are discounted using the interest rate
against which they can be utilized. Deferred tax
implicit in the lease or, if not readily determinable,
assets are reviewed at each reporting date and are
using the incremental borrowing rates. The lease
reduced to the extent that it is no longer probable
liability is subsequently remeasured by increasing
that sufficient taxable profit will be available to
the carrying amount to reflect interest on the lease
allow the benefit of part or all of that deferred tax
liability, reducing the carrying amount to reflect the
asset to be utilized such reductions are reversed
lease payments made.
when it becomes probable that sufficient taxable
A lease liability is remeasured upon the occurrence profits will be available.
of certain events such as a change in the lease term
Unrecognized deferred tax assets are reassessed
or a change in an index or rate used to determine
at each reporting date and recognized to the extent
lease payments. The remeasurement normally also
that it has become probable that future taxable
adjusts the leased asset.
profits will be available against which they can be
Lease liability and ROU asset have been separately recovered.
presented in the Balance Sheet and lease payments
have been classified as financing cash flows. Deferred tax is measured at the tax rates that are
expected to be applied to temporary differences
n) Income-tax when they reverse, using tax rates enacted or
Income tax expense /income comprises current tax substantively enacted by the end of the reporting
expense income and deferred tax expense income. It period.
is recognized in statement of profit and loss except
The measurement of deferred tax assets and
to the extent that it relates to items recognized
liabilities reflects the tax consequences that would
directly in equity or in Other Comprehensive
follow from the manner in which the Company
Income, in which case, the tax is also recognized
expects, at the reporting date, to recover or settle
directly in equity or other comprehensive income,
the carrying amount of its assets and liabilities.
respectively.
Deferred tax assets and liabilities are offset only if:
Current Tax
Current tax comprises the expected tax payable i) the entity has a legally enforceable right to
or recoverable on the taxable profit or loss for set off current tax assets against current tax
the year and any adjustment to the tax payable liabilities; and
or recoverable in respect of previous years. It is
ii) the deferred tax assets and the deferred tax
measured at the amount expected to be paid to (or
liabilities relate to income taxes levied by the
recovered from) the taxation authorities, using the
same taxation authority on the same taxable
applicable tax rates and tax laws.
entity.
• Current tax assets and liabilities are offset o) Foreign currency transactions
only if, the Company has a legally enforceable Functional and Presentation currency
right to set off the recognized amounts; and
The Company’s financial statements are prepared
• intends either to settle on a net basis, or in Indian Rupees (INR) which is also company’s
to realize the asset and settle the liability functional currency.
simultaneously.”

132 METROPOLIS HEALTHCARE LTD

 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS

NOTES TO STANDALONE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

Transactions and balances the equity shareholders and the weighted average
Foreign currency transactions are recorded on number of equity shares outstanding during the
initial recognition in the functional currency using period is adjusted to take into account:
the exchange rate at the date of the transaction. • The after income tax effect of interest and
Monetary assets and liabilities denominated in other financing costs associated with dilutive
foreign currencies are translated into the functional potential equity shares, and
currency at the exchange rate at the reporting • Weighted average number of additional equity
date. Non-monetary items that are measured shares that would have been outstanding
based on historical cost in a foreign currency are assuming the conversion of all dilutive
translated using the exchange rate at the date of potential equity shares.
the initial transaction. Non-monetary items that
r) Segment Reporting
are measured at fair value in a foreign currency are
translated using the exchange rate at the date the Operating segments are reported in a manner
fair value is determined. consistent with the internal reporting provided
to the Chief Operating Decision Maker (CODM) as
Exchange differences arising on the settlement defined in Ind AS-108 ‘Operating Segments’ for
or translation of monetary items are recognized in allocating resources and assessing performance.
statement of profit or loss in the year in which they
arise except exchange differences arising from the As per IND AS-108, if a financial report contains both
translation of items which are recognised in Other the consolidated financial statements of a parent
comprehensive income. that is within the scope of Ind AS-108 as well as the
parent’s separate financial statements, segment
p) Dividend
information is required only in the consolidated
The Company recognises a liability for any dividend financial statements. Accordingly, information
declared but not distributed at the end of the required to be presented under IND AS-108 has been
reporting period, when the distribution is authorized given in the consolidated financial statements.
and the distribution is no longer at the discretion of
s) Recent Indian Accounting Standards (Ind AS)
the Company on or before the end of the reporting
period. Ministry of Corporate Affairs (“MCA”) notifies new
standards or amendments to the existing standards.
q) Earnings per share:
There is no such notification which would have been
Basic Earnings per share is calculated by dividing applicable from 1 April 2020
the profit or loss for the year attributable to the
t) Rounding of amounts
equity shareholders by the weighted average
number of equity shares outstanding during the All amounts in the financial statement and
year. accompanying notes are presented in Lakhs and
have been rounded-off to two decimal place unless
For the purpose of calculating diluted earnings per stated otherwise.
share, the profit or loss for the period attributable to

ANNUAL REPORT 2019-20 133

NOTES TO STANDALONE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

3. PROPERTY, PLANT AND EQUIPMENT

As at 31 March 2020

(` in Lakhs)
Particulars Freehold Building Laborato- Furniture Vehicles Office Com- Leasehold Total
land ry equip- & fixtures equip- puters improve-
ment ment ment
Cost as at 1 April 2019 1,035.40 4,983.19 3,865.64 1,183.96 223.33 896.37 799.07 157.02 13,143.98
Additions during the year - - 841.14 119.48 - 281.35 93.63 190.45 1,526.05
Disposals during the year - - (515.47) (31.70) - (169.83) (265.88) (27.19) (1,010.07)
Cost as at 31 March 2020 (A) 1,035.40 4,983.19 4,191.31 1,271.74 223.33 1,007.89 626.82 320.28 13,659.96
Accumulated depreciation - 691.80 1,232.41 463.13 80.82 510.66 449.72 89.73 3,518.27
as at 1 April 2019
Depreciation charged - 215.38 580.57 113.73 35.26 196.84 131.85 80.40 1,354.03
during the year
Disposals during the year - - (484.54) (28.46) - (161.51) (259.06) (26.20) (959.77)
Accumulated depreciation - 907.18 1,328.44 548.40 116.08 545.99 322.51 143.93 3,912.53
as at 31 March 2020 (B)
Net carrying amount as at 1,035.40 4,076.01 2,862.87 723.34 107.25 461.90 304.31 176.35 9,747.43
31 March 2020 (A) - (B)

Changes in the carrying value of property, plant and equipment for the year ended 31 March 2019:

(` in Lakhs)
Particulars Freehold Building Laborato- Furniture Vehicles Office Com- Leasehold Total
land ry equip- & fixtures equip- puters improve-
ment ment ment
Cost as at 1 April 2018 1,035.40 4,965.19 2,729.36 1,094.80 156.58 778.28 620.71 48.08 11,428.40
Additions during the year - 18.00 1,136.28 89.16 66.75 118.09 178.36 108.94 1,715.58
Disposals during the year - - - - - - - - -
Cost as at 31 March 2019 (A) 1,035.40 4,983.19 3,865.64 1,183.96 223.33 896.37 799.07 157.02 13,143.98
Accumulated depreciation - 466.00 765.55 339.59 48.50 344.70 314.66 31.80 2,310.80
as at 1 April 2018
Depreciation charged - 225.80 466.86 123.54 32.32 165.96 135.06 57.93 1,207.47
during the year
Disposals during the year - - - - - - - - -
Accumulated depreciation - 691.80 1,232.41 463.13 80.82 510.66 449.72 89.73 3,518.27
as at 31 March 2019 (B)
Net carrying amount as at 1,035.40 4,291.39 2,633.23 720.83 142.51 385.71 349.35 67.29 9,625.71
31 March 2019 (A) - (B)

134 METROPOLIS HEALTHCARE LTD

 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS

NOTES TO STANDALONE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

4. OTHER INTANGIBLE ASSETS

(` in Lakhs)
Particulars Goodwill Total Other Intangible Assets
Computer Brand Customer Total
Software Relationships
Cost as at 1 April 2019 4,880.90 4,880.90 932.02 1,170.00 311.00 2,413.02
Additions during the year - - 700.35 - - 700.35
Disposals during the year - - - - - -
Cost as at 31 March 2020 (A) 4,880.90 4,880.90 1,632.37 1,170.00 311.00 3,113.37
Accumulated amortisation - - 240.87 253.50 134.77 629.14
Amortisation recognised during the year - - 223.91 117.00 62.19 403.10
Disposals during the year - - - - - -
Accumulated amortisation as at 31 March 2020 (B) - - 464.78 370.50 196.96 1,032.24
Net carrying amount as at 31 March 2020 (A) - (B) 4,880.90 4,880.90 1,167.59 799.50 114.04 2,081.13

Changes in the carrying value of intangibles for the year ended 31 March 2019:

(` in Lakhs)
Particulars Goodwill Total Other Intangible Assets
Computer Brand Customer Total
Software Relationships
Cost as at 1 April 2018 4,880.90 4,880.90 515.47 1,170.00 311.00 1,996.47
Additions during the year - - 416.55 - - 416.55
Disposals during the year - - - - - -
Cost as at 31 March 2019 (A) 4,880.90 4,880.90 932.02 1,170.00 311.00 2,413.02
Accumulated amortisation as at 1 April 2018 - - 83.97 136.50 72.57 293.04
Amortisation recognised during the year - - 156.90 117.00 62.20 336.10
Accumulated amortisation as at 31 March 2019 (B) - - 240.87 253.50 134.77 629.14
Net carrying amount as at 31 March 2019 (A) - (B) 4,880.90 4,880.90 691.15 916.50 176.23 1,783.88

Goodwill with indefinite useful life

Carrying amount of goodwill which is allocated to the pathology division as at 31 March 2020 is ` 4,880.90 Lakhs. This goodwill is
acquired on account of business acquisition of Sanjeevani Pathology Laboratory and on account of merger of Golwilkar Metropolis
Health Services (India) Private Limited ( erstwhile subsidiary company) i.e. goodwill as appearing in consolidated financial statement
of the Company on account of merger.

For the purpose of impairment testing, goodwill is allocated to the cash generating units (CGU), which benefit from the synergies
of the acquisition.

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Cash Generating Unit
Sanjeevani Pathology Laboratory 4,593.90 4,593.90
Golwilkar Metropolis Health Services (India) Private Limited 287.00 287.00
4,880.90 4,880.90
The recoverable amount of a CGU is based on its value in use. The value in use is estimated using discounted cash flows over a
period of 5 years. We believe 5 years to be most appropriate time scale over which to review and consider annual performance
before applying a fix terminal value multiple to year end cash flow.

ANNUAL REPORT 2019-20 135

NOTES TO STANDALONE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

Operating margins and growth rates for the five year cash flow projections have been estimated based on past experience and
after considering the financial budgets/ forecasts approved by management. Other key assumptions used in the estimation of the
recoverable amount are set out below. The values assigned to the key assumptions represent management’s assessment of future
trends in the relevant industries and have been based on historical data from both external and internal sources.

Key assumptions used in the value-in-use calculations

Assumptions How determined

Budgeted EBITDA growth rate Budgeted EBITDA has been based on past experience adjusted for the following:
- Revenue in the diagnostic service is expected to grow on account of changing
lifestyle and food habit. Revenue and EBIDTA are factored by focused approach
towards B2C division, network expansion , operational efficiencies and automation.
Terminal value growth rate Long‑term growth rate used for the purpose of calculation of terminal value has been
determined by taking into account nature of business , long term inflation expectation
and long term GDP expectation for the Indian economy
Pre-tax risk adjusted discount rate The discount rate applied to the cash flows of company’s operations is generally
based on the risk free rate for ten year bonds issued by the government in India. These
rates are adjusted for a risk premium to reflect both the increased risk of investing in
equities and the systematic risk of of the company.

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Pre tax discount rate 12.00% 12.50%
Terminal value growth rate 5.00% 6.00%
Budgeted EBITDA growth rate 5% - 15% 15% - 20%
These assumptions are reviewed annually as part of management’s budgeting and strategic planning cycles. These estimates may
differ from actual results. The values assigned to each of the key assumptions reflect the Management’s past experience as their
assessment of future trends, and are consistent with external / internal sources of information.

As at 31 March 2020 the estimated recoverable amount of the CGU exceeded its carrying amount and accordingly, no impairment
was recognized.

The Company has also performed sensitivity analysis calculations on the projections used and discount rate applied. Given the
significant headroom that exists, and the results of the sensitivity analysis performed, it is concluded that there is no significant
risk that reasonable changes in any key assumptions would cause the carrying value of goodwill to exceed its value in use.

5. NON CURRENT INVESTMENT

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Investment in subsidiaries
Unquoted equity shares at cost
Desai Metropolis Health Services Private Limited 4,210.30 4,210.30
100,000 (31 March 2019: 100,000) Equity shares of Face value of Indian Rupees 100
each (Fully paid up)
Sudharma Metropolis Health Services Private Limited 1,678.03 1,678.03
1,350 (31 March 2019: 1,350) Equity shares of Face value of Indian Rupees 5,000 each
(Fully paid up)
R.V.Metropolis Diagnostics & Health Care Center Private Limited 2,461.24 2,461.24
3,375 (31 March 2019: 3,375) Equity shares of Face value of Indian Rupees 100 each
(Fully Paid up)

136 METROPOLIS HEALTHCARE LTD

 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS

NOTES TO STANDALONE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Dr. Patel Metropolis Healthcare Private Limited 1,512.57 1,512.57
50,000 (31 March 2019: 50,000) Equity shares of Face value of Indian Rupees 10 each
(Fully Paid up)
Micron Metropolis Healthcare Private Limited 799.52 799.52
100,000 (31 March 2019: 100,000) Equity shares of Face value of Indian Rupees 10
each (Fully Paid up)
Ekopath Metropolis Lab Services Private Limited 30.60 30.60
306,000 (31 March 2019: 306,000) Equity shares of Face value of Indian Rupees 10
each (Fully Paid up)
Metropolis Healthcare Mauritius Limited 127.49 127.49
225,100 (31 March 2019: 225,100) Equity shares of Face value of USD 1 each (Fully
Paid up)
Amins Pathology Laboratory Private Limited 10.00 10.00
100,000 (31 March 2019: 100,000) Equity shares of Face value of Indian Rupees 10
each (Fully Paid up)
Raj Metropolis Healthcare Services Private Limited 35.70 35.70
9,256 (31 March 2019: 9,256) Equity shares of Face value of Indian Rupees 10 each
(Fully Paid up) (Refer Note 41)(v))
Bokil Golwilkar Metropolis Healthcare Private Limited 483.73 483.73
10,10,000 (31 March 2019: 10,10,000) Equity shares of Face value of Indian Rupees 10
each (Fully paid up) (Refer Note 41)(v))
Lab One Metropolis Healthcare Services Private Limited 1,442.14 1,442.14
133,000 (31 March 2019: 133,000) Equity shares of Face value of Indian Rupees 100
each (Fully Paid up)
Metropolis Healthcare Lanka Pvt. Ltd, Sri Lanka 11.04 11.04
250,000 (31 March 2019: 250,000) Equity shares of Face value of Sri Lankan Rupee 10
each (Fully paid up) (Refer Note 55)
Total Investment in subsidiaries (A) 12,802.36 12,802.36
Investment in joint ventures
Unquoted equity shares at cost
Metropolis Histoxpert Digital Services Private Limited 195.00 195.00
1,950,000 (31 March 2019: 1,950,000) Equity shares of Face value of Indian Rupees 10
each (Fully paid up)
Less : Provision for impairment (195.00) -
Total Investment in joint ventures (B) - 195.00
Investment in Associates
Unquoted equity shares at cost
Star Metropolis Health Services Middle East LLC, Dubai - 129.85
1,020 (31 March 2019 1,020) Equity shares of Face value of AED of 1,000 each (Fully
Paid up) (Refer Note 52)
Investment in Associates - 129.85
Less : Provision for impairment (129.85)
Total Investment in associates (C) - -
Investments in subsidiaries, joint ventures & associates (A+B+C) 12,802.36 12,997.36

ANNUAL REPORT 2019-20 137

NOTES TO STANDALONE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Investment in Others
Unquoted equity shares at Fair Value through other comprehensive income
Textiles Traders Co-op Bank Ltd 0.28 0.28
1,100 (31 March 2019: 1,100) equity shares of Face value Indian Rupees 25 each (fully
paid up)
Centre for Digestive and Kidney Disease (India) Private Limited 175.00 175.00
1,750,000 (31 March 2019: 1,750,000) Equity shares of Face value of Indian Rupees 10
each (Fully Paid up)
Unquoted equity shares at cost
Star Metropolis Health Services Middle East LLC, Dubai 129.85 -
1,020 (31 March 2019 1,020) Equity shares of Face value of AED of 1,000 each (Fully
Paid up) (Refer Note 52)
Total Other Investment 305.13 175.28
Less : Provision for impairment - Star Metropolis Health Services Middle East LLC, (129.85) -
Dubai
Total Investment in Others (D) 175.28 175.28
Total value of investments 12,977.64 13,172.64
12,977.64 13,172.64
The aggregate amount and market value of quoted and unquoted non-current
investments are as follows:
Aggregate amount of quoted investments - -
Aggregate market value of quoted investments - -
Aggregate amount of unquoted investments 12,977.64 13,172.64
Aggregate amount of impairment in value of investments 324.85 129.85

6. NON CURRENT LOANS

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
(Unsecured, considered good)
Security deposits 373.82 261.95
Loans to related parties (Refer Note 40) 76.84 75.86
450.66 337.81
(Unsecured, considered doubtful)
Security deposits
- significant increase in credit risk - -
- credit impaired 86.28 41.26
86.28 41.26
Less : Provision for deposits which are credit impaired (86.28) (41.26)
450.66 337.81

138 METROPOLIS HEALTHCARE LTD

 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS

NOTES TO STANDALONE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

7. DERIVATIVES

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Call options on shares of subsidiary* 27.77 83.25
27.77 83.25
*The Company has call option on shares held by minority shareholders of its subsidiaries which gives the company right to buy such
shares in future from the minority shareholders as per the agreed terms. The above values reflect the fair value of these options
as on balance sheet date.

8. OTHER NON CURRENT FINANCIAL ASSETS

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Fixed Deposits with banks^ 1,105.28 1,007.90
1,105.28 1,007.90
^ Includes ` 1,105.28 Lakhs (31 March 2019 ` 1,007.90 Lakhs) of fixed deposits pledged against bank guarantee

9. OTHER NON-CURRENT ASSETS

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
(Unsecured, considered Good)
Capital advance 485.67 92.49
Prepaid expenses 34.21 16.70
519.88 109.19
(Unsecured, considered doubtful)
Capital advance
- significant increase in credit risk - -
- credit impaired 34.86 -
34.86 -
Less : Provision for capital advances which are credit impaired (34.86) -
519.88 109.19

10. NON-CURRENT TAX ASSETS (NET)

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Advance taxes (net of provision for taxes ` 12,880.00 Lakhs (31 March 2019 ` 13,080.00 1,189.39 679.31
Lakhs)
1,189.39 679.31

11. INVENTORIES

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
(valued at lower of cost and net realisable value)
Raw materials (Reagents, chemicals, diagnostic kits, medicines and consumables) 1,745.84 1,964.80
1,745.84 1,964.80

ANNUAL REPORT 2019-20 139

NOTES TO STANDALONE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

12. CURRENT INVESTMENTS

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Unquoted at Fair Value through Other Comprehensive Income
i) Investments in Commercial Papers
Infrastructure Leasing & Financial Services Limited 480.68 480.68
100 (31 March 2019 - 100) Units of Face Value ` 5,00,000 each
480.68 480.68
Less : Provision for impairment (480.68) (144.20)
- 336.48
The aggregate amount and market value of quoted and unquoted investments are as
follows:
Aggregate amount of quoted investments - -
Aggregate market value of quoted investments - -
Aggregate amount of unquoted investments 480.68 480.68
Aggregate amount of impairment in value of investments 480.68 144.20

13. TRADE RECEIVABLES

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Unsecured, considered good* 12,439.86 11,826.56
Unsecured - credit impaired 5,013.91 1,869.38
17,453.77 13,695.94
Less: Provision for debts having significant increase in credit risk - -
Less: Provision for debts which are credit impaired (5,013.91) (1,869.38)
12,439.86 11,826.56
* Includes amount receivable from related parties - Refer Note 40

14. (A) CASH AND CASH EQUIVALENTS

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Balances with banks
- in current accounts 6,632.62 743.90
- in EEFC account 56.03 0.62
Cash on hand 54.53 135.31
6,743.18 879.83

14. (B) BANK BALANCES OTHER THAN CASH AND CASH EQUIVALENTS

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Fixed deposits with original maturity of more than 3 months but less than 12 months 6,457.74 1,700.26
of reporting date *^
6,457.74 1,700.26
* Includes ` 943.13 Lakhs (31 March 2019 ` 940.88 Lakhs) fixed deposits pledged against bank guarantee
^ Includes ` 759.38 Lakhs (31 March 2019 ` 759.38 Lakhs) fixed deposits under lien

140 METROPOLIS HEALTHCARE LTD

 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS

NOTES TO STANDALONE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

15. CURRENT LOANS

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
(Unsecured, considered good)
Security deposits 905.51 1,180.64
Loans to related parties (Refer Note 40) 1,069.55 974.82
Advances to related parties (Refer Note 40) 62.71 257.74
2,037.77 2,413.20
(Unsecured, considered doubtful)
Credit impaired
Advances to related parties (Refer Note 40) 44.02 86.35
Other advances 42.33 -
86.35 86.35
Less : Provision for advances which are credit impaired (86.35) (86.35)
2,037.77 2,413.20

16. OTHER CURRENT FINANCIAL ASSETS

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
(Unsecured, considered good)
Other receivables * - 779.28
Interest accrued but not due
- From related parties 157.03 116.04
- From bank deposits 11.25 4.25
168.28 899.57

* Other receivables includes amount receivable from related party - Refer Note 40

17. OTHER CURRENT ASSETS

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
(Unsecured, considered good)
Prepaid Expenses 147.72 276.06
Advance to employees 97.72 62.13
Advance to Suppliers 76.13 86.14
Other advances 292.82 61.26
614.39 485.59
(Unsecured, considered doubtful)
Advance to employees 43.80 3.90
Advance to Suppliers 49.75 14.62
Other advances 148.83 62.71
242.39 81.23
Less : Provision for doubtful advances (242.39) (81.23)
614.39 485.59

ANNUAL REPORT 2019-20 141

NOTES TO STANDALONE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

18. EQUITY SHARE CAPITAL

(a) Details of authorised, issued and subscribed share capital

31 March 2020 31 March 2019

Number Amount Number Amount
Authorised Capital *
Equity shares of the par value of ` 2 each (31 March 2019 par value 29,57,54,015 5,915.08 29,57,54,015 5,915.08
of ` 2 each)
Issued, Subscribed and fully Paid up
Equity Shares of the par value ` 2/- each (31 March 2019 par value 5,06,30,566 1,012.61 5,01,78,680 1,003.57
of ` 10 each)
5,06,30,566 1,012.61 5,01,78,680 1,003.57

(b) Reconciliation of number of shares at the beginning and at the end of the year

31 March 2020 31 March 2019

Number Amount Number Amount
Equity Shares outstanding at the beginning 5,01,78,680 1,003.57 95,43,646 954.36
Issued under Metropolis Employee Stock Option Scheme 2007 - - 32,800 3.28
(Refer Note 49(c) )
Issued under Metropolis Employee Stock Option Scheme 2015 4,51,886 9.04 - -
(Refer Note 49(c) )
Issued on exercise of share warrants (Refer Note 53) - - 8,703 0.87
Issued to the Shareholders of Subsidiary Companies on - - 64,596 6.46
acquisition of further stake (Refer Note 51(a))
Issued to the Shareholders of Bacchus Hospitality Services - - 26,57,731 265.77
and Real Estate Private Limited pursuant to the scheme of
amalgamation (Refer Note 41(iii))
Cancellation of the old shares of Bacchus Hospitality Services - - (26,57,730) (265.77)
and Real Estate Private Limited pursuant to the scheme of
amalgamation (Refer Note 41(iii))
Issue of Bonus Shares (Refer below note(g)) - - 3,85,990 38.60
Outstanding before sub-division of shares 5,06,30,566 1,012.61 1,00,35,736 1,003.57
Adjustment for Sub-Division of Equity Shares (Refer below - - 4,01,42,944 -
note(g))
Shares outstanding at the end of the year 5,06,30,566 1,012.61 5,01,78,680 1,003.57

(c) Particulars of shareholders holding more than 5% of shares held

Name of Shareholder 31 March 2020 31 March 2019

Number* Percentage Number Percentage
Dr. Sushil Kanubhai Shah ^ # 37,25,245 7.36% 99,97,590 19.92%
CA Lotus Investments 71,79,579 14.18% 1,56,53,435 31.20%
Smallcap World Fund, Inc 27,80,746 5.49% - 0.00%
Metz Advisory LLP ## 1,56,91,216 30.99% 1,46,30,125 29.16%
Dr. Duru Sushil Shah 92,09,230 18.19% 92,09,230 18.35%
^ On 14 September, 2018, Dr Sushil Kanubhai Shah entered into a deed with Dr. Duru Sushil Shah where in 1,537,772 equity
shares of ` 10 each were transferred as a gift to Dr. Duru Sushil Shah
* During the previous year ended 31 March 2019, Number of equity shares are after adjusting bonus shares issued and sub-
division of equity shares.
# Includes five Equity Shares each held by Mayur Shah (jointly with Meera Shah) and Dr. Nilesh Shah as nominees of Dr. Sushil
Kanubhai Shah
## Includes five Equity Shares held by Ameera Sushil Shah as nominee of Metz Advisory LLP;

142 METROPOLIS HEALTHCARE LTD

 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS

NOTES TO STANDALONE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

(d) Terms/rights attached to equity shares

The Company has only one class of Equity shares having a par value of ` 2 per share. Each holder of equity share is entitled
to one vote per share. The Company declares and pays dividend in Indian Rupees. The dividend, if proposed by the Board
of Directors, will be subject to the approval of the shareholders in the ensuing Annual General Meeting except interim
dividend.

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

(e) Aggregate number of bonus shares issued, shares issued for consideration other than cash and shares bought back during
the period of five years immediately preceding the reporting date
- Issue of 3,85,990 (before spilt with face value of ` 10 each) bonus shares during the previous year ended 31 March 2019

- During the previous year ended 31 March 2019, 1 share (before split with face value of ` 10 each) has been allotted to the
Shareholders of Bacchus Hospitality Services and Real Estate Private Limited pursuant to the scheme of amalgamation
(Refer Note 41 (iii))

- During the previous year ended 31 March, 2019, 64,596 shares (before split with face value of ` 10 each) have been allotted
as consideration for swap of shares with the shareholders of subsidiary companies on acquisition of further stake (Refer
Note 51(a))

- Buy-back of 320,484 shares (before split with face value of ` 10 each) which was brought back pursuant to section 68 of
the Companies Act, 2013 during the year ended 31 March 2016.

(f) Dividends

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Declared during the year
Interim dividend for 2019-20: ` 8.74 per equity share (including dividend 4,386.20 8,021.38
distribution tax of ` 0.74 per equity share) (FY 2018-19: ` 15.99 per equity share
(including dividend distribution tax of ` 2.73 per equity share)*
4,386.20 8,021.38
* dividend distribution tax of ` 371.91 Lakhs ( 31 March 2019 ` 1,367.69 Lakhs)

(g) Pursuant to Shareholder’s resolution passed at the Extraordinary General Meeting (EGM) held on 14 September 2018, the
Shareholders approved issuance of Bonus shares to the existing shareholders in the ratio of 1:25 i.e. one bonus equity shares
for twenty five existing equity shares.

Further in the same meeting, the equity share capital (Authorized, Issued and Paid-up) of the Company was subdivided from
` 10/- (Rupees ten) each to equity shares of ` 2/- (Rupees two) each. The capital clause of the Memorandum of Association
was substituted to reflect the sub-division of Equity Shares of the Company from ` 5,915.08 Lakhs comprising of 59,150,803
Equity Shares of ` 10 each to ` 5,915.08 Lakhs comprising of 295,754,015 Equity Shares of ` 2 each. The revised authorised
share capital of the Company now stands at 295,754,015 equity shares of ` 2/- each.

(h) Change in authorised share capital : During the previous year ended 31 March 2019, the authorised share capital of the
Company has increased as per clause 15 of the scheme of amalgamation. (Refer note 41 for further details). The authorised
capital of the Company was increased from ` 5,550 Lakhs comprising of 55,000,000 Equity Shares of ` 10 each to ` 5,915.08
Lakhs comprising of 59,150,803 Equity Shares of ` 10 each;

31 March 2020 31 March 2019

Number of Amount Number of Amount
equity shares equity shares
(i) Bacchus Hospitality Services and Real Estate Private - - 28,30,803 283.08
Limited
(ii) Metropolis Healthcare (Chandigarh) Private Limited - - 10,000 1.00

ANNUAL REPORT 2019-20 143

NOTES TO STANDALONE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

31 March 2020 31 March 2019

Number of Amount Number of Amount
equity shares equity shares
(iii) Metropolis Healthcare (Jodhpur) Private Limited - - 10,000 1.00
(iv) Final Diagnosis Private Limited - - 9,50,000 95.00
(v) Sanket Metropolis Health Services (India) Private Limited - - 2,50,000 25.00
(vi) Golwilkar Metropolis Health Services (India) Private - - 1,00,000 10.00
Limited
(vii) Metropolis Healthcare Limited 29,57,54,015 5,915.08 5,50,00,000 5,500.00
29,57,54,015 5,915.08 5,91,50,803 5,915.08
Impact of split from ` 10 per share to ` 2 per share - - 23,66,03,212 -
Total authorised share capital 29,57,54,015 5,915.08 29,57,54,015 5,915.08

19. OTHER EQUITY

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Securities Premium 11,880.97 8,700.73
General Reserve 1,808.17 1,684.07
Employee stock options reserve 207.06 258.78
Retained Earnings 36,329.65 29,893.25
50,225.85 40,536.83
Securities Premium
Balance at the beginning of the year 8,700.73 5,826.41
Utlilised during the previous year pursuant to the scheme of Amalgamation with - (0.00)^
Bacchus Hospitality Services and Real Estate Private Limited.*
Utilised on issue of bonus shares - (6.55)
Share options exercised under MESOS 2007/2015 (Refer Note 49(c) ) 3,180.24 29.52
Share warrants exercised during the year (Refer Note 53) - 223.58
Shares Issued to the Shareholders of Subsidiary Companies on acquisition of further - 2,627.77
stake (Refer Note 51(a))
Balance at the end of the year 11,880.97 8,700.73
*As per the scheme of amalgamation, shares held by Bacchus Hospitality Services and Real Estate Private Limited in the Company
are cancelled and any difference on cancellation of shares over the issue of new equity shares has been adjusted with Security
Premium arising, if any, on issue of new equity shares (Refer Note 41) (iii))
^ Amount is ` 10
General Reserve
Balance at the beginning and end of the year 1,684.07 1,684.07
Transfer from ESOP exercised during the year (Refer Note 49c) 124.10 -
Balance at the end of the year 1,808.17 1,684.07

Capital Redemption Reserve

Balance at the beginning of the year - 32.05
Balance at the beginning of the year - (32.05)
Balance at the end of the year - -

Employee stock options reserve

Balance at the beginning of the year 258.78 170.34
Transfer to General Reserve on account of ESOP exercised during the year (Refer (124.10) -
Note 49c)
Share based payments (Refer Note 32) 72.38 88.44
Balance at the end of the year 207.06 258.78

144 METROPOLIS HEALTHCARE LTD

 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS

NOTES TO STANDALONE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Retained Earnings
Balance at the beginning of the year 29,893.25 27,735.50
Less: Impact of IND AS 116 net of Deferred Tax (Refer Note 46) (231.91) -
Add: Transferred from the statement of profit and loss 11,205.43 10,145.70
Add/(Less): Re-measurement gain/ (loss) on defined benefit plans (net of taxes) (150.91) 33.43
Less: Interim Dividend (4,014.29) (6,653.69)
Less: Tax on Interim dividend (371.91) (1,367.69)
Balance at the end of the year 36,329.65 29,893.25

Other comprehensive income /(loss)

Re-measurement gain/ (loss) on defined benefit plans (net of taxes)
At the beginning of the year 24.65 (8.78)
Movement during the year (150.91) 33.43
At the end of the year (126.26) 24.65

Debt instruments through Other Comprehensive income

Balance at the beginning of the year - 0.27
Transfer to statement of profit and loss - (0.27)
Balance at the end of the year - -

Nature and purpose of Reserves

Securities Premium
The amount received in excess of face value of the equity shares is recognised in Securities Premium. It can be used to issue bonus
shares, to purchase of its own shares, to provide for premium on redemption of shares or debentures, write-off equity related
expenses like underwriting costs, etc.

General Reserve
General Reserve is free reserve which is created by transferring funds from retained earnings to meet future obligations or
purposes.

Capital Redemption Reserve

The Company recognises the capital redemption reserve from its retained earnings as per the provisions of Companies Act, 2013,
as applicable.

Employee stock options reserve

The Company has established equity settled share based payment plan for certain categories of employees. Refer Note 49c.

Retained Earnings
Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other
distributions paid to shareholders. Retained Earnings is a free reserve available to the Company.

Debt instruments fair valued through OCI

This comprises changes in the fair value of debt instruments recognised in other comprehensive income and accumulated within
equity. The Company transfers amounts from such component of equity to retained earnings when the relevant debt instruments
are derecognised.

ANNUAL REPORT 2019-20 145

NOTES TO STANDALONE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

20. OTHER NON-CURRENT FINANCIAL LIABILITIES

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Deferred purchase consideration payable (Refer Note 51(b)) 106.55 208.89
106.55 208.89

21. NON-CURRENT PROVISIONS

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Provision for employee benefits:
- Gratuity (Refer Note 49(a) ) 458.69 233.31
458.69 233.31

22. CURRENT BORROWINGS

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Secured loan from bank (Refer Note below) - 1,734.47
- 1,734.47

The Company had availed cash credit facility from HDFC Bank, which was secured by charge over stock in trade and book debts of
the Company and interest was chargeable as approved by the Bank (9.75%). The same has been repaid during the year.

23. TRADE PAYABLES

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Total outstanding due of micro and small enterprises (Refer Note 48) 670.81 1.78
Total outstanding due of creditors other than micro and small enterprises* 6,418.89 3,603.16
7,089.70 3,604.94

* Includes amount payable to related parties - Refer Note 40

24. OTHER CURRENT FINANCIAL LIABILITIES

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Employee related dues 966.84 1,115.82
Payable towards purchase of property, plant and equipment 868.73 778.79
Payable towards acquisition of business (Refer Note 51(b)) 416.25 625.04
Security deposits 76.40 69.25
Creditors for expenses - 668.18
2,328.22 3,257.08

146 METROPOLIS HEALTHCARE LTD

 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS

NOTES TO STANDALONE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

25. OTHER CURRENT LIABILITIES

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Statutory dues* 1,346.21 313.23
Advance from customers 310.04 355.11
Other Payable** 57.76 -
1,714.01 668.34

(* Statutory Dues payable include Tax Deducted at Source, Provident Fund, Professional tax and Others)
(** Other payable include payable to CA Lotus and Sushil Shah on account of refund of additional filing fee received from SEBI)

26. CURRENT PROVISIONS

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Provision for employee benefits:
- Gratuity (Refer Note 49(a) ) 365.65 327.30
- Compensated absences 45.63 27.67
411.28 354.97

27. CURRENT TAX LIABILITIES (NET)

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Provision for taxation (net of advance tax - ` 2,000.97 Lakhs (31 March 2019 ` 8,129.51 129.03 562.63
Lakhs)
129.03 562.63

28. REVENUE FROM OPERATIONS

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Service Income 66,486.81 58,019.89
Other Operating revenue
Sundry balances written back (net) 43.90 100.92
66,530.71 58,120.81

ANNUAL REPORT 2019-20 147

NOTES TO STANDALONE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

29. OTHER INCOME

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Interest
- from banks 230.00 66.67
- from related parties (Refer Note 40) 60.24 68.27
- on income tax refund - 1.62
- on investments - 134.77
- others 35.98 17.85
Dividend
- from mutual fund - 49.64
- from related parties (Refer Note 40) 2,205.00 1,400.00
Fair value gain on mutual funds measured at FVTPL - 114.93
Fair value gain on derivate assets measured at FVTPL - 46.83
Foreign exchange gain (net) 307.36 145.66
Miscellaneous income 93.21 6.08
2,931.79 2,052.32

30. COST OF MATERIALS CONSUMED

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Opening stock (Refer Note 11) 1,964.80 1,495.51
Add: Purchases 16,505.75 14,376.93
18,470.55 15,872.44
Less: Closing stock (Refer Note 11) 1,745.84 1,964.80
16,724.71 13,907.64

31. LABORATORY TESTING CHARGES

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Laboratory testing charges 649.76 469.16
649.76 469.16

32. EMPLOYEE BENEFITS EXPENSE

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Salaries, wages and bonus 13,343.74 12,000.17
Gratuity expenses (Refer Note 49(a) ) 119.36 119.40
Contribution to provident and other funds (Refer Note 49(b) ) 635.86 612.56
Share based payment expenses (Refer Note 49(c) )* 72.38 443.89
Staff welfare expenses 595.28 518.65
14,766.62 13,694.67
*During the year ended 31 March 2020, total expense of ` 72.38 Lakhs including reversal of lapsed option amounting to ` 16.05 Lakhs
arising under MESOS 2015 scheme is recognised through employee stock option reserve.
During the previous year ended 31 March 2019, out of total expense of ` 443.89 Lakhs, expense of ` 88.44 Lakhs arising under
MESOS 2015 scheme is recognised through employee stock option reserve and expense of ` 355.45 Lakhs arising from buyout of
9,875 options against cash is directly recognised in the statement of profit and loss.

148 METROPOLIS HEALTHCARE LTD

 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS

NOTES TO STANDALONE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

33. FINANCE COSTS

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Interest on short term borrowing 50.07 11.70
Interest on deferred purchase consideration measured at amortized cost 24.13 40.13
(Refer Note 51(b))
Interest on lease liabilities (Refer Note 46) 581.81 -
656.01 51.83

34. DEPRECIATION AND AMORTISATION EXPENSE

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Depreciation of property, plant and equipment (Refer Note 3) 1,354.03 1,207.47
Amortisation of intangible assets (Refer Note 4) 403.10 336.10
Depreciation on right-of-use asset (Refer Note 46) 1,327.38 -
3,084.51 1,543.57

35. OTHER EXPENSES

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Accreditation expenses 116.35 80.27
Laboratory expenses 96.94 75.43
Electricity and water 915.62 744.37
Rent (Refer Note 46) 4,179.56 4,368.22
Repairs and maintenance
- Buildings 70.53 61.56
- Plant and equipment 861.91 618.18
- Others 170.60 210.01
Insurance 109.78 103.57
Rates and taxes 719.36 782.96
Payments to auditors (Refer Note 44) 91.02 69.79
Legal and professional 2,189.23 2,107.66
Expenses on account of merger - 131.00
Travelling and conveyance 837.89 860.73
Printing and stationery 335.67 468.94
Provision for bad and doubtful debts (net) 1,028.35 340.32
Provision for impairment of non-current investments (Refer Note 40) 195.00 144.20
Provision for doubtful advances (net) 241.04 -
Postage and courier 2,482.49 1,964.91
Communication 314.05 305.19
Advertisement and sales promotion expenses 875.04 1,163.35
Facility maintenance charges 354.75 296.94
Corporate social responsibility expenses (Refer Note 50(a)) 76.97 79.45
Directors' sitting fee & commission (Refer Note 40) 56.06 41.40
Fair value loss on derivate assets measured at FVTPL 55.48 -
Bank charges 344.99 284.67
Loss on sale of debt instrument measured at FVOCI - 3.79
Write-off of Property, Plant and Equipment 37.91 -
Miscellaneous expenses 372.56 280.42
17,129.15 15,587.33

ANNUAL REPORT 2019-20 149

NOTES TO STANDALONE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

36. EXCEPTIONAL ITEMS

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Provision for impairment of current investments (Refer Note 1) 336.48 -
Provision for bad and doubtful debts (net) (Refer Note 2 & 3) 2,116.18 -
2,452.66 -
Notes:
Exceptional items are those which are considered for separate disclosure in the financial statements considering their size,
nature or incidence. Such items included within the statement of profit and loss are detailed below:
1 Provision for impairment of investment in securities of Infrastructure Leasing & Financial Services (IL&FS) aggregating to `
336.48 Lakhs
2 There has been a prolonged dispute in relation to trade receivables from a party towards lab management services rendered
by the Company and the matter has been under arbitration. In view of the delay, the Company, on a prudent basis, has made
provision aggregating ` 1,766.18 Lakhs against the above mentioned disputed trade receivables and this has been disclosed
as an exceptional item.
3 Provision for ` 350.00 Lakhs on account of certain old unreconciled balances.

37. INCOME TAXES

Tax expense
(a) Amounts recognised in statement of profit and loss

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Current tax expense
Current year 3,933.00 4,717.00
Tax adjustments for earlier year (229.73) -
3,703.27 4,717.00
Deferred tax expense
Relating to addition and (reversal) of temporary differences (742.05) 56.23
Relating to change in tax rate* (167.57) -
(909.62) 56.23
Tax expense for the year 2,793.65 4,773.23

* Effective Income tax rate applicable to the Company for FY 2019-20 has changed on account of decrease in tax rate to 22%
w.e.f. 1 April 2019. Accordingly the deferred tax rate applicable for FY 2018-19 has been changed.;

On 20 September 2019, the Government has brought in the Taxation Laws (Amendment) Ordinance 2019 to make certain
amendments in Income-tax Act 1961 (the Act) and the Finance (No.2) Act 2019.

A New section 115BAA has been introduced with effect from Financial Year (FY) 2019-20 (AY 2020-21) to provide an option for
a concessional tax at the rate of 22% in the case of domestic Company.

The Company have elected to exercise the option permitted under section 115BAA of the Income-tax Act, 1961 as introduced
by the Taxation Laws (Amendment) Ordinance, 2019.

150 METROPOLIS HEALTHCARE LTD

 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS

NOTES TO STANDALONE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

(b) Tax charge recognised directly to Other Comprehensive Income

(` in Lakhs)
Particulars 31 March 2020
Before tax Tax (expense) Net of tax
benefit
Items that will not be reclassified to profit or loss
Remeasurements of the defined benefit plans (201.67) 50.76 (150.91)
(201.67) 50.76 (150.91)

(` in Lakhs)
Particulars 31 March 2019
Before tax Tax (expense) Net of tax
benefit
Items that will not be reclassified to profit or loss
Remeasurements of the defined benefit plans 51.39 (17.96) 33.43
51.39 (17.96) 33.43
(c) Reconciliation of estimated income tax to income tax expense is as below:

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Profit before tax 13,999.08 14,918.93
Statutory income tax rate 25.17% 34.94%
Expected income tax expense 3,523.29 5,213.27
Tax effect of adjustments to reconcile expected Income Tax Expense to
reported Income Tax Expense:
Expenses not allowed under Income tax 94.29 47.15
Income exempt from Tax (554.95) (506.56)
Benefit due to indexation benefit - (12.91)
Impact due to Change in tax rate (167.57) -
Tax adjustments of earlier years (229.73) -
Others 128.32 32.28
Total income tax expense 2,793.65 4,773.23
Effective Tax Rate 19.96% 31.99%
Total tax expense as per statement of profit and loss 2,793.65 4,773.23

ANNUAL REPORT 2019-20 151

NOTES TO STANDALONE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

(d) Movement in deferred tax balances

As at 31 March 2020
(` in Lakhs)
Particulars Net Recognised Recognised Recognised Net deferred Deferred Deferred
balance in profit or in OCI in Retained tax asset/ tax asset tax
1 April 2019 loss earning (liabilities) (liabilities)
Deferred tax liabilities
Property, plant, equipment and (1,293.61) 228.79 - - (1,064.82) - (1,064.82)
intangibles
Fair valuation of call options (386.49) - - - (386.49) - (386.49)
Deferred tax asset
Current investments 50.39 70.59 - - 120.98 120.98 -
ROU asset and Lease Liabilities - 7.93 - 114.21 122.14 122.14 -
Others 16.07 21.36 - - 37.43 37.43 -
Provision for bad and doubtful debts 726.21 648.92 - - 1,375.13 1,375.13 -
Employee Share based payments 82.72 (30.60) - - 52.12 52.12 -
Provision for employee benefits 205.56 (37.37) 50.76 - 218.95 218.95 -
Tax assets (liabilities) (599.15) 909.62 50.76 114.21 475.43 1,926.75 (1,451.31)
Net Tax Assets (Liabilities) (599.15) 909.62 50.76 114.21 475.43 1,926.75 (1,451.31)

As at 31 March 2019
(` in Lakhs)
Particulars Net Recognised Recognised Recognised Net deferred Deferred Deferred
balance in profit or in OCI in Retained tax asset / tax asset tax
1 April 2018 loss earning (liability) (liabilities)
Deferred tax liabilities
Property, plant, equipment and (926.86) (366.75) - - (1,293.61) - (1,293.61)
intangibles
Current investments (43.34) 93.73 - - 50.39 50.39 -
Fair valuation of call options (374.02) (12.47) - - (386.49) - (386.49)
Others 0.49 15.58 - - 16.07 16.07 -
Deferred tax asset
Provision for bad and doubtful debts 542.63 183.58 - - 726.21 726.21 -
Employee Share based payments 59.52 23.20 - - 82.72 82.72 -
Provision for employee benefits 216.61 6.91 (17.96) - 205.56 205.56 -
Tax assets (liabilities) (524.97) (56.23) (17.96) - (599.15) 1,080.95 (1,680.10)
Net Tax Assets (Liabilities) (524.97) (56.23) (17.96) - (599.15) 1,080.95 (1,680.10)

The company offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and
current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax
authority.

Significant management judgement is required in determining provision for income tax, deferred income tax assets and
liabilities and recoverability of deferred income tax assets. The recoverability of deferred income tax assets is based on
estimates of taxable income and the period over which deferred income tax assets will be recovered. Any changes in future
taxable income would impact the recoverability of deferred tax assets.

152 METROPOLIS HEALTHCARE LTD

 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS

NOTES TO STANDALONE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

38. EARNINGS PER SHARE (EPS)

Basic EPS calculated by dividing the net profit for the year attributable to equity holders by the weighted average number of Equity
shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders (after adjusting profit impact of dilutive
potential equity shares, if any) by the aggregate of weighted average number of Equity shares outstanding during the year and the
weighted average number of Equity shares that would be issued on conversion of all the dilutive potential Equity shares into Equity
shares.

Particulars 31 March 2020 31 March 2019

i. Profit attributable to equity holders (` in Lakhs)
Profit attributable to equity holders for basic and diluted EPS 11,205.43 10,145.70
11,205.43 10,145.70
ii. Weighted average number of shares for calculating basic EPS 5,02,10,869 4,99,30,454
iii. Effect of dilution
Share options and warrants 2,21,425 99,432
Weighted average number of shares for calculating diluted EPS 5,04,32,294 5,00,29,886
iv. Basic earnings per share (`) 22.32 20.32
v. Diluted earnings per share (`) 22.22 20.28

Note:
Pursuant to Shareholder’s resolution passed at the Extraordinary General Meeting (EGM) held on 14 September 2018, the
Shareholders approved issuance of Bonus shares to the existing shareholders in the ratio of 1:25 i.e. one bonus equity shares for
twenty five existing equity shares. Further in the same meeting, the equity share capital (Authorized, Issued and Paid-up) of the
Company was subdivided from ` 10/- (Rupees ten) each to equity shares of ` 2/- (Rupees two) each. Accordingly, the exercise price
and the outstanding employee stock options would be adjusted proportionately.

Ind AS 33 ‘Earnings per share’, requires an adjustment in the calculation of basic and diluted earnings per share for all the periods
presented if the number of equity or potential equity shares outstanding change as a result of share sub-division and bonus. The
weighted average numbers of shares and consequently the basic and diluted earnings per share have accordingly been adjusted in
the financial statements.

39. FINANCIAL INSTRUMENTS – FAIR VALUES

A. Accounting classification and fair values

The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels
in the fair value hierarchy. It does not include fair value information for financial assets and financial liabilities not measured
at fair value if the carrying amount is a reasonable approximation of fair value.

(` in Lakhs)
Particulars As at 31 March 2020
Carrying amount Fair value
FVTPL FVOCI Amortised Total Level 1 - Level 2 - Level 3 - Total
Cost Quoted price Significant Significant
in active observable unobserv-
markets inputs able inputs
Non Current Financial assets
Non-current investments - - - - - - - -
- Equity instruments (other than
Subsidiaries, Joint ventures and
Associates)**
Non-current loans - - 450.66 450.66 - - - -
Other non current financial assets - - 1,105.28 1,105.28 - - - -
Derivative instruments 27.77 - - 27.77 - 27.77 - 27.77

ANNUAL REPORT 2019-20 153

NOTES TO STANDALONE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

(` in Lakhs)
Particulars As at 31 March 2020
Carrying amount Fair value
FVTPL FVOCI Amortised Total Level 1 - Level 2 - Level 3 - Total
Cost Quoted price Significant Significant
in active observable unobserv-
markets inputs able inputs
Current Financial assets
Trade receivables - - 12,439.86 12,439.86 - - - -
Cash and cash equivalents - - 6,743.18 6,743.18 - - - -
Bank Balances other than Cash and - - 6,457.74 6,457.74 - - - -
cash equivalents
Current loans - - 2,037.77 2,037.77 - - - -
Other current financial assets - - 168.28 168.28 - - - -
27.77 - 29,402.77 29,430.54 - 27.77 - 27.77
Non Current Financial liabilities
Other non-current financial - - 106.55 106.55 - - - -
liabilities
Lease Liabilities - - 3,660.22 3,660.22 - - 3,660.22 3,660.22
Current Financial liabilities
Trade payables - - 7,089.70 7,089.70 - - - -
Other current financial liabilities - - 2,328.22 2,328.22 - - - -
Lease Liabilities - - 1,693.59 1,693.59 - - 1,693.59 1,693.59
- - 14,878.28 14,878.28 - - 5,353.81 5,353.81

(` in Lakhs)
Particulars As at 31 March 2019
Carrying amount Fair value
FVTPL FVOCI Amortised Total Level 1 - Level 2 - Level 3 - Total
Cost Quoted price Significant Significant
in active observable unobserv-
markets inputs able inputs
Non Current Financial assets
Non-current investments - - - - - - - -
- Equity instruments (other than
Subsidiaries, Joint ventures and
Associates)**
Non-current loans - - 337.81 337.81 - - - -
Other non current financial assets - - 1,007.90 1,007.90 - - - -
Derivative instruments 83.25 - - 83.25 - 83.25 - 83.25
Current Financial assets
Investment (Commercial Papers) - 336.48 - 336.48 - 336.48 - 336.48
Trade receivables - - 11,826.56 11,826.56 - - - -
Cash and cash equivalents - - 879.83 879.83 - - - -
Bank Balances other than Cash - - 1,700.26 1,700.26 - - - -
and cash equivalents
Current loans - - 2,413.20 2,413.20 - - - -
Other current financial assets - - 899.57 899.57 - - - -
83.25 336.48 19,065.13 19,484.86 - 419.73 - 419.73

154 METROPOLIS HEALTHCARE LTD

 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS

NOTES TO STANDALONE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

(` in Lakhs)
Particulars As at 31 March 2019
Carrying amount Fair value
FVTPL FVOCI Amortised Total Level 1 - Level 2 - Level 3 - Total
Cost Quoted price Significant Significant
in active observable unobserv-
markets inputs able inputs
Non Current Financial liabilities
Other non-current financial - - 208.89 208.89 - - - -
liabilities
Current Financial liabilities
Borrowings - - 1,734.47 1,734.47 - - - -
Trade payables - - 3,604.94 3,604.94 - - - -
Other current financial liabilities - - 3,257.08 3,257.08 - - - -
- - 8,805.38 8,805.38 - -
**The fair value in respect of the unquoted equity investments cannot be reliably estimated. The Company has currently
measured them at their cost, i.e. ` 175.28 Lakhs (31 March 2019 ` 175.28 Lakhs)
The Fair value of cash and cash equivalents, other bank balances, trade receivables, trade payables approximated their
carrying value largely due to short term maturities of these instruments.
Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as
interest rates and individual creditworthiness of the counterparty. Based on this evaluation, allowances are taken to account
for expected losses of these receivables. Accordingly, fair value of such instruments is not materially different from their
carrying amounts.
The call options are fair valued at each reporting date through statement of profit and loss.

B. Fair value hierarchy

Ind AS 107, ‘Financial Instrument - Disclosure’ requires classification of the valuation method of financial instruments measured
at fair value in the Balance Sheet, using a three level fair-value-hierarchy (which reflects the significance of inputs used in the
measurements). The hierarchy gives the highest priority to un-adjusted quoted prices in active markets for identical assets or
liabilities (Level 1 measurements) and lowest priority to un-observable inputs (Level 3 measurements). The three levels of the
fair-value-hierarchy under Ind AS 107 are described below:

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques
which maximise the use of observable market data and rely as little as possible on entity specific estimates. If all significant
inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level.
This is the case for unlisted equity securities included in level 3.

Financial instruments measured at fair value

The following table shows the valuation techniques used in measuring Level 2 and Level 3 fair values for financial instruments
measured at fair value in the balance sheet as well as the significant unobservable inputs used.

Type Valuation technique Significant unobservable Inter-relationship

inputs between significant
unobservable inputs and
fair value measurement
Investment in mutual The fair value of the units of mutual fund Not applicable Not applicable
funds scheme are based on net asset value at the
reporting date.

ANNUAL REPORT 2019-20 155

NOTES TO STANDALONE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

Type Valuation technique Significant unobservable Inter-relationship

inputs between significant
unobservable inputs and
fair value measurement
Investment in The fair value of commercial papers is Not applicable Not applicable
Commercial Papers derived through Stochastic Local Volatility
process, where in yield is derived from
trade data and pooled levels of similar
instruments with similar maturity and
credit rating that are traded in secondary
market, adjusted by an illiquidity factor.
Non current financial Discounted cash flows: Under discounted Not applicable Not applicable
assets and liabilities cash flow method, future cash flows are
measured at amortized discounted by using rates which reflect
cost market risks. The valuation requires
management to make certain assumptions
about the model inputs, including forecast
cash flows, discount rate and credit risk.
The probabilities of the various estimates
within the range can be reasonably
assessed and are used in management’s
estimate of fair value.
Ekopath Metropolis The Company has used Black-Scholes March 2020 ` Nil The estimated fair value
Lab Services Private model to estimate the fair value of the would increase (decrease)
March 2019
Limited - Call option options. if:
* Equity value of unlisted
Black-Scholes is a pricing model used to company - ` 1,047 Lakhs • Equity value of unlisted
determine the fair price or theoretical company increases/
* Volatility in share price
value for a call or a put option based on six (decreases); or
of comparable companies
variables such as volatility, type of option,
- 17.50% • Increase / (decrease) of
underlying stock price, time, strike price,
volatility in share price of
and risk-free rate. Note : The Company
comparable companies.
intent as to not the
Refer below for impact in
exercise the options and
P&L (net of tax)
hence option Lapsed
Raj Metropolis The Company has used Black-Scholes March 2020 The estimated fair value
Healthcare Private model to estimate the fair value of the * Equity value of unlisted would increase (decrease)
Limited - Call option options. company - ` 230.74 Lakhs if:
Black-Scholes is a pricing model used to * Volatility in share price • Equity value of unlisted
determine the fair price or theoretical of comparable companies company increases/
value for a call or a put option based on six
- 22% (decreases); or
variables such as volatility, type of option,
underlying stock price, time, strike price, March 2019 • increase / (decrease) of
and risk-free rate. volatility in share price of
* Equity value of unlisted
comparable companies.
company - ` 228 Lakhs
Refer below for impact in
* Volatility in share price P&L (net of tax)
of comparable companies
- 18.40%

156 METROPOLIS HEALTHCARE LTD

 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS

NOTES TO STANDALONE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

Transfers between Levels

There have been no transfers between levels during the reporting periods

31 March 2020 31 March 2019

Impact in P&L (Net of tax) due to change in discount rate
Increase Decrease Increase Decrease
Call option on shares of subsidiary- Ekopath Metropolis
Lab Services Private Limited
Movement in equity value of unlisted company by 10% - - 10.27 (8.77)
Volatility in share price of comparable companies by 10% - - (0.67) 0.60
Call option on shares of subsidiary- Raj Metropolis
Healthcare Private Limited
Movement in equity value of unlisted company by 10% 1.86 (3.53) 3.24 (1.97)
Volatility in share price of comparable companies by 10% (0.45) 0.46 0.32 (0.32)
Lease Liabilities
Movement in Interest on lease liability - Discount rate (53.54) 53.54 - -
(9.67%) + / - 100 basis points
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. Prudent liquidity risk management implies maintaining
sufficient cash and marketable securities, the availability of funding through an adequate amount of committed credit
facilities. 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.
Maturities of financial liabilities
The table below analyses the Company’s financial liabilities into relevant maturity groupings based on their contractual
maturities:
(` in Lakhs)
As at 31 March, 2020 Contractual cash flows
Carrying Total Upto 1 year 1-3 years 3-5 years More than
amount 5 years
Non-derivative financial liabilities
Payable towards acquisition of business 522.80 544.00 424.00 120.00 - -
Lease Liabilities 5,353.81 6,865.61 1,693.59 2,650.76 1,317.72 1,203.54
Trade payables 7,089.70 7,089.70 7,089.70 - - -
Other current financial liabilities 1,911.97 1,911.97 1,911.97 - - -
14,878.28 16,411.28 11,119.26 2,770.76 1,317.72 1,203.54
Total 14,878.28 16,411.28 11,119.26 2,770.76 1,317.72 1,203.54

(` in Lakhs)
As at March 31, 2019 Contractual cash flows
Carrying Total Upto 1 year 1-3 years 3-5 years More than
amount 5 years
Non-derivative financial liabilities
Payable towards acquisition of business 833.93 879.25 617.25 242.00 20.00 -
Borrowings 1,734.47 1,734.47 1,734.47 - - -
Trade payables 3,604.94 3,604.94 3,604.94 - - -
Other current financial liabilities 2,632.04 2,632.04 2,632.04 - - -
8,805.38 8,850.70 8,588.70 242.00 20.00 -
Total 8,805.38 8,850.70 8,588.70 242.00 20.00 -
The outflows disclosed in the above table represent the total contractual undiscounted cash flows and total amount payables
on borrowings.

ANNUAL REPORT 2019-20 157

NOTES TO STANDALONE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

Market risk:
Market risk is the risk that changes in market prices – such as foreign exchange rates, interest rates and equity prices – will
affect the Company’s income or the value of its holdings of financial instruments. The Company is exposed to market risk
primarily related to foreign exchange rate risk and interest rate risk. The objective of market risk management is to avoid
excessive exposure in foreign currency revenues and costs.
a. Currency risk
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 has foreign currency trade payables and receivables and is therefore exposed to foreign
exchange risk.

Exposure to currency risk (Exposure in different currencies converted to functional currency i.e. INR)
The currency profile of financial assets and financial liabilities as at 31 March 2020 are as below:

(` in Lakhs)
31-March-2020 USD OMR EUR GBP SGD
Financial assets (A)
Trade and other receivables 2,320.99 40.85 - - -
Loans 1,128.66 - - - -
Interest receivable 103.23 - - - -
Advance given 28.90 - 0.28 0.42 13.25
Financial liabilities (B)
Trade and other payables 3.16 - - 0.32 -
Net exposure (A - B) 3,578.62 40.85 0.28 0.10 13.25

(` in Lakhs)
31-March-2019 USD OMR
Financial assets (A)
Trade and other receivables 1,660.65 39.13
Loans 984.40 -
Interest receivable 101.38 -
Advance given 14.00 -
Financial liabilities (B)
Trade and other payables 3.12 -
Advance taken 8.99 6.59
Net exposure (A - B) 2,748.32 32.54
Sensitivity analysis
A reasonably possible strengthening (weakening) of the Indian Rupee against foreign currencies at 31 March 2020 and 31
March 2019 would have affected the measurement of financial instruments denominated in foreign currencies and affected
Statement of profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular interest
rates, remain constant and ignores any impact of forecast sales and purchases.

Effect in INR 31 March 2020 31 March 2019

Strengthening Weakening Strengthening Weakening
3% movement
USD (107.36) 107.36 (82.45) 82.45
OMR (1.23) 1.23 (0.98) 0.98
EUR (0.01) 0.01 - -
GBP (0.00) 0.00 - -
SGD (0.40) 0.40 - -
(108.98) 108.98 (83.43) 83.43

158 METROPOLIS HEALTHCARE LTD

 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS

NOTES TO STANDALONE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

C Financial risk management

The Company’ Board of Directors has overall responsibility for the establishment and oversight of the company’ risk
management framework.
The Company has exposure to the following risks arising from financial instruments
- Credit risk
- Liquidity risk
- Market risk

Credit risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its
contractual obligations, and arises principally from the Company’s trade and other receivables and cash and cash equivalents.
The maximum exposure to credit risk in case of all the financial instruments covered below is restricted to their respective
carrying amount.

a. Trade receivables and other receivables

The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. Credit risk is
managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers
to which the Company grants credit terms in the normal course of business. The Company establishes an allowance for
doubtful debts and impairment that represents its estimate of incurred losses in respect of trade and other receivables and
investments.
The Company does not have any significant concentration of credit risk. Further, company has one customer (31 March 2019
one customer) which accounts for 10% or more of the total trade receivables at each reporting date.
The Company has used a practical expedient by computing the expected credit loss allowance for trade receivables based on
a provision matrix.
The movement in the provision for bad and doubtful debts for the year ended 31 March 2020

Particulars Amount ` Lakhs

Balance as at 1 April 2018 1,529.06
Movement during the year 340.32
Balance as at 31 March 2019 1,869.38
Movement during the year 3,144.53
Balance as at 31 March 2020 5,013.91

b. Cash and cash equivalents and Other bank balances

The Company held cash and cash equivalents and other bank deposits as at 31 March 2020 ` 14,251.67 Lakhs (31 March 2019 `
3,452.68 Lakhs). The cash and cash equivalents and other bank balances are held with bank with good credit ratings.

c. Investments
The Company limits its exposure to credit risk by generally investing in liquid securities and only with counterparties that have
a good credit rating. The Company does not expect any losses from non-performance by these counter-parties, and does not
have any significant concentration of exposures to specific industry sectors or specific country risks.

d. Other loans and advances

Loans and advances mainly consist security deposit and advances to related parties.

The security deposit pertains to rent deposit given to lessors as at 31 March 2020 ` 1,365.61 Lakhs (31 March 2019 ` 1,483.85
Lakhs). The Company does not expect any losses from non-performance by these counter-parties; The parties which have
defaulted in the past is mainly on account of uncontrollable adverse local market conditions which has diluted parties credit
worthiness.

ANNUAL REPORT 2019-20 159

NOTES TO STANDALONE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

The loans and advances majorly pertains to loans to subsidiaries, joint venture and associate. These loans and advances
which are outstanding as at 31 March 2020 ` 1,209.10 Lakhs (31 March 2019 ` 1,350.75 Lakhs), have been generally regular in
making payments and hence it does not expect significant impairment losses on its current profile of outstanding advances.
The advances which have defaulted in the past is mainly on account of uncontrollable adverse local market conditions which
has diluted parties credit worthiness.

Particulars Amount ` Lakhs

Balance as at 1 April 2018 208.84
Movement during the year -
Balance as at 31 March 2019 208.84
Movement during the year 241.04
Balance as at 31 March 2020 449.88
b. Interest rate risk
Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk
of changes in fair values of fixed interest bearing investments because of fluctuations in the interest rates. Cash flow interest
rate risk is the risk that the future cash flows of floating interest bearing investments will fluctuate because of fluctuations in
the interest rates.

The Company does not account for any fixed-rate financial assets or financial liabilities at fair value through profit or loss.
Therefore, a change in interest rates at the reporting date would not affect profit or loss.

The interest rate profile of the Company’s interest bearing financial instruments as reported to the management of the
Company is as follows:

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Fixed-rate instruments
Financial assets 9,988.74 5,537.91
Financial liabilities (522.80) (833.93)
9,465.94 4,703.98
Variable-rate instruments
Financial assets - -
Financial liabilities - (1,734.47)
- (1,734.47)
Total 9,465.94 2,969.51
D Capital management
The objective of the Company’s capital management is to ensure that it maintains an efficient capital structure and healthy
capital ratios to support its business and maximize shareholder value.

The Company has equity capital and other reserves attributable to the equity shareholders, as the only source of capital
and the company does not have any interest bearing borrowings/ debts as on the reporting date. Hence, the Company is not
subject to any externally imposed capital requirements.

40. RELATED PARTY DISCLOSURES, AS REQUIRED BY INDIAN ACCOUNTING STANDARD 24 (IND AS 24) ARE GIVEN BELOW:

A. Relationships –
Category I: Subsidiaries:
Desai Metropolis Health Services Private Limited
Sudharma Metropolis Health Services Private Limited
R.V. Metropolis Diagnostics & Health Care Center Private Limited
Dr. Patel Metropolis Healthcare Private Limited

160 METROPOLIS HEALTHCARE LTD

 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS

NOTES TO STANDALONE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

Micron Metropolis Healthcare Private Limited

Ekopath Metropolis Lab Services Private Limited
Metropolis Healthcare (Mauritius) Limited
Amin’s Pathology Laboratory Private Limited (Formerly known as Metropolis Wellness Products Private Limited)
Lab One Metropolis Healthcare Services Private Limited
Metropolis Healthcare Lanka (Pvt) Limited (Formerly known as Nawaloka Metropolis Laboratories Private Limited, Sri Lanka)
Bokil Golwilkar Metropolis Healthcare Private Limited
Raj Metropolis Healthcare Private Limited
Step down Subsidiary companies
Metropolis Bramser Lab Services (Mtius) Limited
Metropolis Healthcare Ghana Limited
Metropolis Star Lab Kenya Limited
Metropolis Healthcare (Tanzania) Limited
Category II: Joint Venture:
Metropolis Histoxpert Digital Services Private Limited
Category III: Associates:
Star Metropolis Health Services Middle East LLC, Dubai (upto 31 March 2019)
Category IV: Key Management Personnel (KMP)
Dr. Sushil Kanubhai Shah, Chairman and Executive Director
Ms. Ameera Sushil Shah, Managing Director
Mr Vijender Singh, Chief Executive Officer
Mr Rakesh Agarwal, Chief Financial Officer (w.e.f. 11 November 2019)
Ms. Poonam Tanwani, Company Secretary (w.e.f. 10.February.2020)
Mr Tushar Karnik, Chief Financial Officer (upto 11 November 2019)
Mr Jayant Prakash, Company Secretary (upto 30 November 2019 )
Mr. Mihir Jagdish Doshi, Non-Executive Director (upto 31 March 2020)
Mr. Milind Shripad Sarwate, Independent Director
Mr. Vivek Gambhir, Independent Director
Mr. Sanjay Bhatnagar, Independent Director
Category V: Relatives of KMP
Dr. Duru Sushil Shah
Mr. Hemant Sachdev
Category VI: Companies in which key management personnel or their relatives have significant influence (Other related
parties)
Metz Advisory LLP
Metropolis Health Products Retail Private Limited
Chogori Distribution Private Limited
Centre for Digestive and Kidney Disease (India) Private Limited (upto 6 August, 2019)

ANNUAL REPORT 2019-20 161

NOTES TO STANDALONE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

B. The transactions with the related parties are as follows:

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
1) Services rendered
Subsidiaries
Micron Metropolis Healthcare Private Limited 229.12 188.61
Dr. Patel Metropolis Healthcare Private Limited 283.26 255.73
Desai Metropolis Health Services Private Limited 346.72 346.68
Sudharma Metropolis Health Services Private Limited 501.26 519.65
R.V. Metropolis Diagnostics & Health Care Center Private Limited 715.44 505.19
Metropolis Star Lab Kenya Limited 485.07 426.68
Metropolis Healthcare Ghana Limited 198.51 208.13
Metropolis Bramser Lab Services (Mtius) Limited 57.31 84.64
Lab One Metropolis Healthcare Services Private Limited 130.73 80.93
Amin's Pathology Laboratory Private Limited 23.34 24.44
Ekopath Metropolis Lab Services Private Limited 83.74 65.50
Metropolis Healthcare (Mauritius) Limited 163.45 120.06
Bokil Golwilkar Metropolis Healthcare Private Limited 58.65 45.74
Raj Metropolis Healthcare Private Limited 4.15 4.02
Metropolis Healthcare Lanka (Pvt) Limited 101.59 52.60
Metropolis Healthcare (Tanzania) Limited 28.28 -
Joint Ventures
Metropolis Histoxpert Digital Services Private Limited 17.89 5.55
Relatives of KMP
Dr. Duru Sushil Shah 13.19 17.02
Other related parties
Centre for Digestive and Kidney Disease (India) Private Limited # 300.12 903.48
2) Services received
Subsidiaries
R.V. Metropolis Diagnostics & Health Care Centre Private Limited 221.93 136.04
Metropolis Healthcare Lanka (Pvt) Limited - 26.95
3) Purchase of Goods
Amin's Pathology Laboratory Private Limited 146.32 152.31
4) Rent paid
Key Management Personnel
Dr. Sushil Kanubhai Shah 99.48 102.91
5) Compensation paid to Key Management Personnel
Short-term employee benefits^ 962.84 1,159.27
Post employment benefit 21.52 21.16
Share-based payments expense 5.09 38.27
(^As gratuity expense is based on actuarial valuation, the same cannot be computed for individual employees. Hence
not disclosed separately.)
6) Dividend income
Subsidiaries
Dr. Patel Metropolis Healthcare Private Limited 250.00 -
Lab One Metropolis Healthcare Services Private Limited 85.00 -
R.V. Metropolis Diagnostics & Health Care Centre Private Limited 450.00 -
Micron Metropolis Healthcare Private Limited 100.00 -
Desai Metropolis Health Services Private Limited 600.00 -

162 METROPOLIS HEALTHCARE LTD

 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS

NOTES TO STANDALONE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Sudharma Metropolis Health Services Private Limited 635.00 1,400.00
Bokil Golwilkar Metropolis Healthcare Private Limited 85.00 -
7) Dividend paid
Key Management Personnel
Dr Sushil Kanubhai Shah 298.02 1,325.68
Ameera Sushil Shah 14.55 24.11
Other related parties
Metz Advisory LLP 1,255.30 1,939.95
Relatives of KMP
Dr Duru Sushil Shah 736.74 1,221.14
8) Director sitting fees and Commission
Dr Duru Sushil Shah - 0.15
Mr. Mihir Jagdish Doshi 8.50 15.75
Mr. Milind Shripad Sarwate 18.77 7.25
Mr. Vivek Gambhir 17.52 8.75
Mr. Rajiv Devinder Sahney - 5.00
Mr. Sanjay Bhatnagar 11.27 4.50
9) Advance paid
Chogori Distribution Private Limited - 12.00
10) Interest income
Subsidiaries
Ekopath Metropolis Lab Services Private Limited 6.00 6.00
Bokil Golwilkar Metropolis Healthcare Private Limited - 3.69
Raj Metropolis Healthcare Private Limited 0.32 0.31
Metropolis Healthcare (Mauritius) Limited 52.82 51.15
Micron Metropolis Healthcare Private Limited - 6.02
Metropolis Healthcare Lanka (Pvt) Limited 1.10 1.10
11) Repayment of loan
Subsidiaries
Amin's Pathology Laboratory Private Limited - 16.00
Micron Metropolis Healthcare Private Limited - 89.54
Bokil Golwilkar Metropolis Healthcare Private Limited - 49.00
12) Provision for Diminution of investment
Metropolis Histoxpert Digital Services Private Limited 194.35 -
13) Investments made / (sold)
Subsidiaries
Desai Metropolis Health Services Private Limited - 2,356.70
Sudharma Metropolis Health Services Private Limited - 1,320.00
R.V. Metropolis Diagnostics & Health Care Centre Private Limited - 2,016.70
Dr. Patel Metropolis Healthcare Private Limited - 849.30
Micron Metropolis Healthcare Private Limited - 283.70
Lab One Metropolis Healthcare Services Private Limited - 1,073.50
Bokil Golwilkar Metropolis Healthcare Private Limited - 187.22
Joint Ventures
Metropolis Histoxpert Digital Services Private Limited - 194.35
# Excluded from related party after resignation of Dr Sushil Shah from Directorship of the Company dated 6 August, 2019

ANNUAL REPORT 2019-20 163

NOTES TO STANDALONE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

C. The related party balances outstanding at year end are as follows:

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
1) (a) Trade payables
Subsidiaries
Amin's Pathology Laboratory Private Limited 241.45 111.13
R.V. Metropolis Diagnostics & Health Care Center Private Limited 51.11 120.71
Other related parties
Metropolis Health Products Retail Private Limited 1.87 1.87
(b) Other Payable
Dr. Sushil Kanubhai Shah * 19.86 -
(c) Director Sitting fees
Mr. Vivek Gambhir 1.00 -
2) Trade receivables
Subsidiaries
Metropolis Star Lab Kenya Limited 679.77 296.94
Metropolis Bramser Lab Services (Mtius) Limited 88.28 46.06
Metropolis Healthcare Ghana Limited 560.00 369.49
Metropolis Healthcare (Mauritius) Limited 326.91 163.25
Micron Metropolis Healthcare Private Limited 67.29 -
Dr. Patel Metropolis Healthcare Private Limited 71.95 38.19
Desai Metropolis Health Services Private Limited 89.64 26.77
Sudharma Metropolis Health Services Private Limited 172.05 43.69
Lab One Metropolis Healthcare Services Private Limited 49.74 35.19
Ekopath Metropolis Lab Services Private Limited 9.15 1.24
Raj Metropolis Healthcare Private Limited 6.80 3.06
Bokil Golwilkar Metropolis Healthcare Private Limited 20.51 12.72
Metropolis Healthcare Lanka (Pvt) Limited 299.11 176.12
Amin's Pathology Laboratory Private Limited 5.92 2.61
Metropolis Healthcare (Tanzania) Limited 30.06 -
Joint Ventures
Metropolis Histoxpert Digital Services Private Limited 10.03 4.93
Associates
Star Metropolis Health Services Middle East LLC, Dubai ** - 598.54
Relatives of KMP
Dr. Duru Sushil Shah 2.45 2.84
Other Related Party
Metropolis Health Products Retail Private Limited 41.05 41.05
Centre for Digestive and Kidney Disease (India) Private Limited # 0 2,082.19
3) Loans and advances including interest accrued
Subsidiaries
Sudharma Metropolis Health Services Private Limited - 8.99
Micron Metropolis Healthcare Private Limited - 36.66
Ekopath Metropolis Lab Services Private Limited 60.90 60.90
Metropolis Healthcare (Mauritius) Limited 1,221.55 1,119.57
Metropolis Star Lab Kenya Limited 0.22 91.13
Metropolis Healthcare Ghana Limited 0.07 29.98

164 METROPOLIS HEALTHCARE LTD

 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS

NOTES TO STANDALONE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Metropolis Healthcare (Zambia) 0.10 -
Raj Metropolis Healthcare Private Limited 19.33 19.04
Metropolis Healthcare Lanka (Pvt) Limited 63.78 58.19
Associates
Star Metropolis Health Services Middle East LLC, Dubai** - 42.35
Other related parties
Metropolis Health Products Retail Private Limited 44.00 44.00
4) Other Advances taken
R.V. Metropolis Diagnostics & Health Care Center Private Limited - 49.58
Micron Metropolis Healthcare Private Limited - 6.02
5) Provision for dimunition in value of investments
Associates
Star Metropolis Health Services Middle East LLC, Dubai ** - 129.85
Joint Ventures
Metropolis Histoxpert Digital Services Private Limited 195.00 -
6) Provision for doubtful trade receivables
Associates
Star Metropolis Health Services Middle East LLC, Dubai - 598.54
Other related parties
Metropolis Health Products Retail Private Limited 41.05 41.05
7) Provision for doubtful advances
Associates
Star Metropolis Health Services Middle East LLC, Dubai** - 42.35
Other related parties
Metropolis Health Products Retail Private Limited 44.00 44.00
8) Other Receivable
Dr. Sushil Kanubhai Shah * - 383.35

The details of Loans and advances as required by Schedule V of SEBI (LODR, 2015) are given in the table below:

Name of the Company 31 March 2020 31 March 2019

Outstanding Max. amount Outstanding Max. amount
Balance outstanding Balance outstanding
during the year during the year
Subsidiaries
Metropolis Healthcare (Mauritius) Limited 1,069.55 1,069.67 957.84 1,022.33
Micron Metropolis Healthcare Private Limited - - - 89.54
Raj Metropolis Healthcare Private Limited 4.08 4.08 4.08 4.08
Ekopath Metropolis Lab Services Private Limited 60.00 60.00 60.00 60.00
Metropolis Healthcare Lanka (Pvt) Limited 12.76 12.76 12.76 12.76
Amin's Pathology Laboratory Private Limited - - 16.00 16.00

** Star Metropolis Health Services Middle East LLC, Dubai is no longer associate (Refer Note 52)

* Other payable include payable to Dr. Sushil Shah on account of refund of additional filing fee received from SEBI

# Excluded from related party after resignation of Dr Sushil Shah from Directorship of the Company dated 6 August, 2019

ANNUAL REPORT 2019-20 165

NOTES TO STANDALONE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

41. MERGER OF SUBSIDIARY COMPANIES

(i) Pursuant to the Scheme of Amalgamation (the Scheme) sanctioned by the Hon’ble National Company Law Tribunal (NCLT) vide
its order dated 30 August 2018, Bacchus Hospitality Services and Real Estate Private Limited and Wholly owned Subsidiary
Companies - Metropolis Healthcare (Chandigarh) Private Limited, Metropolis Healthcare (Jodhpur) Private Limited, Final
Diagnosis Private Limited, Sanket Metropolis Health Services (India) Private Limited and Golwilkar Metropolis Health Services
(India) Private Limited have been merged with the Company with effect from 1 April 2018 (the appointed date). The Scheme of
Amalgamation came into effect on 8 September 2018 which was the date on which a certified copy of the order of the NCLT,
Mumbai bench sanctioning the Scheme of Amalgamation was filed with the RoC (“Effective Date”),

(ii) Pursuant to scheme of Amalgamation, as approved by the Hon’ble National Company Law Tribunal (NCLT); Mumbai bench vide
its Order dated 30 August 2018, wholly owned subsidiaries, has been transferred to Company w.e.f. 1 April 2018, Consequently,
effect of the scheme has given in the financial statements in accordance with Ind AS 103 “Business Combinations”. The previous
year have been restated to give effect to the merger;

Book value of assets and liabilities related to the wholly owned subsidiaries transferred to the company i.e. 1 April 2018 are as
under;

Particular Amount
Sanket Golwilkar Metroplis Metroplis Final Total
Metroplis Metroplis Healthcare Healthcare Diagnosis
Health Health (Chandigrah) (Jodhpur) Private
services services Private Private Limited
(India) Private (India) Private Limited Limited
Limited Limited
Property, plant and equipment 69.34 425.68 - 24.90 - 519.92
Other intangible assets - 15.41 - - - 15.41
Financial assets - - - -
Investments 35.98 76.76 - - - 112.74
Loans 1.38 84.39 - 3.00 - 88.77
Derivatives 7.68 258.01 - - - 265.69
Other non current financial assets - - - - - -
Deferred tax assets (net) - 7.23 - - - 7.23
Other non-current assets - 4.92 - - 9.00 13.92
Non-current tax assets (net) 46.53 84.07 - 0.18 0.03 130.81
Total non current assets 160.91 956.47 - 28.08 9.03 1,154.49
Inventories 11.81 151.60 - - - 163.41
Financial Assets
Investments - 2,138.60 - - - 2,138.60
Trade receivables 65.69 207.74 - 11.92 - 285.35
Cash & Bank balance 93.45 281.67 10.62 24.12 16.32 426.18
Loans 37.63 143.92 - - 42.77 224.32
Other current financial assets - 36.65 - - 8.39 45.04
Other current assets 1.31 34.23 - - - 35.54
Total current assets 209.89 2,994.41 10.62 36.04 67.48 3,318.44
Total Assets 370.80 3,950.88 10.62 64.12 76.51 4,472.93
Liabilities
Equity share capital 15.00 10.00 1.00 1.00 90.35 117.35
Other Equity (86.14) 3,572.59 (157.89) (162.13) (14.41) 3,152.02
Total Equity (71.14) 3,582.59 (156.89) (161.13) 75.94 3,269.37

166 METROPOLIS HEALTHCARE LTD

 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS

NOTES TO STANDALONE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

Particular Amount
Sanket Golwilkar Metroplis Metroplis Final Total
Metroplis Metroplis Healthcare Healthcare Diagnosis
Health Health (Chandigrah) (Jodhpur) Private
services services Private Private Limited
(India) Private (India) Private Limited Limited
Limited Limited
Financial liabilities
Borrowings - - - 52.39 - 52.39
Deferred tax liabilities (net) - - - (2.30) - (2.30)
Total Non-current liabilities - - - 50.09 - 50.09
Financial liabilities
Borrowings 70.53 - 37.19 - - 107.72
Trade payables 318.64 222.89 - 0.60 542.13
Other current financial liabilities 43.63 102.93 130.26 174.22 0.57 451.61
Other current liabilities 5.88 28.85 0.06 0.25 - 35.04
Provisions 3.26 13.62 0.09 - 16.97
Total Current liabilities 441.94 368.29 167.51 175.16 0.57 1,153.47
TOTAL EQUITY AND LIABILITIES 370.80 3,950.88 10.62 64.12 76.51 4,472.93
(iii) Bacchus holds 2,657,730 fully paid up equity shares of ` 10 each of the Company i.e. 27.85% of the total outstanding equity
share capital of the Company. Pursuant to the scheme, 957,713 fully paid up equity shares of ` 10 each of the Company has
been issued and allotted, credited as fully paid up, for every 10,00,000 equity shares of ` 10 each held in the Company. Shares
held by Bacchus in the Company will be cancelled and any difference on cancellation of shares over the issue of new equity
shares shall be adjusted with Security Premium arising, if any, on issue of new equity shares.

(iv) All the companies merged as part of business combination were in the business of providing pathology and related healthcare
services.

(v) Raj Metropolis Healthcare Services Private Limited and Bokil Golwilkar Metropolis Healthcare Private Limited were the
subsidiaries of Sanket Metropolis Health Services (India) Private Limited and Golwilkar Metropolis Health Services (India)
Private Limited respectively. During previous year Sanket Metropolis Health Services (India) Private Limited and Golwilkar
Metropolis Health Services (India) Private Limited merged with Metropolis Healthcare Limited (refer (i) above) and consequently
these two companies become direct subsidiary of Metropolis Healthcare Limited.

42. COMMITMENTS

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Capital commitments:
Estimated amount of contracts remaining to be executed on capital account not 1,273.16 894.95
provided for
Other commitments:
The Company has entered into reagent agreement for a period ranging from 3 to 6 years with some of its major raw material
suppliers to purchase agreed value of raw materials.

The value of purchase commitments for the remaining number of years are ` 48,140.09 Lakhs (31 March 2019 ` 42,855.62 Lakhs)
of which annual commitment for next year is ` 13,165.08 Lakhs (31 March 2019 ` 15,694.49 Lakhs) as per the terms of these
arrangements.

ANNUAL REPORT 2019-20 167

NOTES TO STANDALONE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

43. CONTINGENT LIABILITIES NOT PROVIDED FOR

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Income tax liability disputed in appeals 113.93 113.93
Due to others 394.33 162.93
Claims against the Company not acknowledged as debt
- Claims by suppliers/contractors /others 138.60 138.37
- Claims pending in Consumer Dispute Redressal Forum 31.79 22.37
Contingent consideration on acquisition of remaining stake of subsidiary* 759.38 759.38
Total 1,438.03 1,196.98

*Company has entered into a share purchase agreement to buy remaining 30% stake of Golwilkar Metropolis Health Services (India)
Private Limited. For purchase of remaining stake, consideration to be paid as per valuation of Golwilkar has been determined to
be ` 3,037.51 Lakhs. However, on account of a breach of non-compete provision as per the terms of the shareholder’s agreement
dated 14 October 2005, the Company has filed an application before a sole arbitrator- Justice A.V. Nirgude (Retired) at Mumbai
against Dr. Ajit S. Golwilkar, Dr. Awanti T. Mehendale and Dr. Vinanti N. Patankar (“Respondents”), claiming 25% of consideration
determined i.e. ` 759.38 Lakhs as damages. This matter is currently pending before the arbitrator.

44. AUDITORS’ REMUNERATION*

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Statutory audit fees 57.17 57.17
Limited Review Fees 28.00 -
Certification Fees 3.00 3.00
Others (including reimbursement of out of pocket expenses) 2.85 9.62
Total 91.02 69.79

*In addition to above 31 March 2020 : Nil (31 March 2019: ` 206.57 Lakhs) was paid to auditors in relation to services of Initial Public
Offer (IPO) which has been borne by the selling shareholders of the Company.

45. OPERATING LEASE OBLIGATIONS

The Company has taken various commercial properties on leases for its offices, laboratories and staff accommodation. The lease
expenses in the March 2019 to ` 4,368.22 Lakhs. Future minimum rentals payable under non-cancellable operating leases are as
follows:

(` in Lakhs)
Particulars 31 March 2019
Not later than one year 653.46
Later than one year but not later than five years 1,055.62
Later than five years -
Total 1,709.08

168 METROPOLIS HEALTHCARE LTD

 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS

NOTES TO STANDALONE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

46. DISCLOSURE ON IND-AS 116 LEASES

1 Transition
On transition, the adoption of the new standard resulted in recognition of ‘Right of Use’ asset of ` 4,120.33 Lakhs and a lease
liability of ` 4,264.57 Lakhs. The cumulative effect of applying the standard of ` 231.91 Lakhs was debited to retained earnings,
net of taxes and prepaid rent. Ind AS 116 will result in an increase in cash inflows from operating activities and an increase in
cash outflows from financing activities on account of lease payments.

2 The following is the summary of practical expedients elected on initial application:

i Applied a single discount rate to a portfolio of leases of similar assets in similar economic environment with a similar end
date
ii Applied the exemption not to recognize right-of-use assets and liabilities for leases :
a. with less than 12 months of lease term on the date of initial application
b. Rent outflow of less than ` 5 Lakhs in entire tenure of arrangement
iii Excluded the initial direct costs from the measurement of the right-of-use asset at the date of initial application.
iv Applied the practical expedient to grandfather the assessment of which transactions are leases. Accordingly, Ind AS 116
is applied only to contracts that were previously identified as leases under Ind AS 17.
3 The effect of depreciation and interest related to Right Of Use Asset and Lease Liability are reflected in the Statement of
Profit and Loss under the heading “Depreciation and Amortisation Expense” and “Finance costs” respectively under Note No
33 and 34
4 The incremental borrowing rate applied to lease liabilities as at 1 April, 2019 is 9.20% -10.10% based on tenure of arrangement
5 The difference between the lease obligation recorded as at 31 March, 2019 under Ind AS 17 (disclosed under Note 45) and
the value of the lease liability as at 1 April, 2019 is primarily on account of inclusion of extension and termination options
reasonably certain to be exercised, in measuring the lease liability in accordance with Ind AS 116 and discounting the lease
liabilities to the present value under Ind AS 116.
6 Following are the changes in the carrying value of right of use assets for the year ended 31 March, 2020:

(` in Lakhs)
Particulars Category of ROU Total
Office Space Patient Service Lab HUB
Centre
Balance as of 1 April, 2019 1,836.42 1,171.32 1,111.62 0.97 4,120.33
Additions 484.56 275.64 970.53 344.60 2,075.34
Depreciation (642.41) (310.68) (328.18) (46.10) (1,327.38)
Balance as of 31 March, 2020 1,678.57 1,136.28 1,753.97 299.47 4,868.29

7 The following is the break-up of current and non-current lease liabilities as of 31 March, 2020:

(` in Lakhs)
Particulars
Current Lease liabilities 1,693.59
Non-current lease liabilities 3,660.22
Total 5,353.81
8 The following is the movement in lease liabilities for the year ended 31 March, 2020

(` in Lakhs)
Particulars Amount
Balance as of 1 April, 2019 4,264.57
Additions 2,075.33
Finance cost accrued during the year 581.81
Payment of lease liabilities (1,567.89)
Balance as of 31 March , 2020 5,353.82

ANNUAL REPORT 2019-20 169

NOTES TO STANDALONE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

9 The table below provides details regarding the contractual maturities of lease liabilities as of 31 March, 2020 on an undiscounted
basis:

(` in Lakhs)
Particulars Year ended Mar 20
Less than one year 1,693.59
One to five years 4,407.89
More than 5 years 764.13
Total 6,865.61
10 Impact of adoption of Ind AS 116 for the year ended 31 March, 2020 is as follows:

(` in Lakhs)
Particulars Year ended Mar 20
Decrease in Other expenses by 1,567.89
Increase in Finance cost by 581.81
Increase in Depreciation by (excludes depreciation on reclassified assets) 1,287.33
Net Impact on the Statement of Profit and Loss 301.25
11 Reconciliation between operating lease commitments disclosed in financials as at 31 March 2019 applying Ind AS 17 and lease
liabilities recognised in the statement of financial position as at 1 April 2019 i.e. date of initial application.

(` in Lakhs)
Particulars Amount
Opening Balance of Operating Lease 1,709.08
Add: Additional lease commitment based on expected extension of lease term 2,555.49
Lease liabilities as at 1 April 2019 4,264.57
The Group does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to
meet the obligations related to lease liabilities as and when they fall due.
12 Rental expense recorded for short-term leases / Variable lease/ low-value leases was ` 4,179.56 Lakhs for the year ended 31
March, 2020.
13 The total cash outflow for leases for year ended 31 March , 2020 is ` 1,567.89 Lakhs

47. (A) DISCLOSURE AS PER IND AS 115 - REVENUE FROM CONTRACTS WITH CUSTOMERS

(` in Lakhs)
Particulars 31-Mar-20 31-Mar-19
Contract asset- unbilled revenue - -
Contract liabilities - Advances from customers
Opening Balance 355.11 262.46
Movement during the year (45.07) 92.65
Closing Balance 310.04 355.11

47. (B) RECONCILIATION OF REVENUE FROM CONTRACTS WITH CUSTOMERS

(` in Lakhs)
Particulars 31-Mar-20 31-Mar-19
Revenue from contract with customer as per the contract price 67,207.79 58,478.59
Adjustments made to contract price on account of :-
Discount / Rebates 720.98 458.70
Revenue from contract with customer 66,486.81 58,019.89
Other operating revenue 43.90 100.92
Revenue from operations 66,530.71 58,120.81

170 METROPOLIS HEALTHCARE LTD

 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS

NOTES TO STANDALONE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

48. MICRO AND SMALL ENTERPRISES

There are some micro and small enterprises, to whom the Company owes dues, which are outstanding for more than 45 days
as at 31 March 2020. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development
Act, 2006, has been determined to the extent such parties have been identified on the basis of information available with the
Company.

(` in Lakhs)
Particulars 31-Mar-20 31-Mar-19
a. Principal amount remaining unpaid to any supplier as at the year end 670.81 1.78
Interest due thereon:
b. Amount of Interest paid during the year - -
c. Amount of payments made to the supplier beyond the appointed day during the - -
accounting year.
d. Amount of Interest due and payable for the period of delay in making payment 18.17 -
(which have been paid but beyond the appointed day during the period) but without
adding interest specified under the Micro, Small and Medium Enterprises Act,2006)
e. Amount of Interest accrued and remaining unpaid at the end of the accounting year. 29.63 -
f. The amount of further interest remaining due and payable even in the succeeding - -
years, until such date when the interest dues as above are actually paid to the small
enterprises for the purpose of disallowance as a deductible expenditure under the
MSMED Act 2006

49. EMPLOYEE BENEFITS

a) Defined benefits plan
The Company has gratuity as defined benefit retirement plan for its employees. Details of the same as at year end are as
follows:

(` in Lakhs)
31-Mar-20 31-Mar-19
A. Amount recognised in the balance sheet
Present value of the obligation as at the end of the year 843.08 580.93
Fair value of plan assets as at the end of the year (18.74) (20.32)
Net liability recognised in the balance sheet 824.34 560.61
Out of which,
Non-current portion 458.69 233.31
Current portion 365.65 327.30
B. Change in projected benefit obligation
Projected benefit obligation at the beginning of the year 580.93 526.13
Current service cost 77.43 81.22
Interest cost 43.45 38.67
Actuarial loss * 201.48 (50.78)
Benefits paid (60.21) (44.60)
Liability transfer in on acquisition - 30.29
Projected benefit obligation at the end of the year 843.08 580.93

ANNUAL REPORT 2019-20 171

NOTES TO STANDALONE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

(` in Lakhs)
31-Mar-20 31-Mar-19
C. Change in plan assets
Fair value of plan assets at the beginning of the year 20.32 6.70
Interest income 1.52 0.49
Assets Transferred In/Acquisitions - 16.78
Return on Plan Assets, Excluding Interest Income (0.19) 0.61
Employer contributions - 1.00
Benefits paid (2.91) (5.26)
Fair value of plan assets at the end of the year 18.74 20.32
D. Amount recognised in the statement of profit and loss
Current service cost 77.43 81.22
Interest cost 41.93 38.18
Expenses recognised in the statement of profit and loss 119.36 119.40
E. Amount recognised in other comprehensive income
Actuarial (gain)/loss on Defined benefit obligation 201.48 (50.78)
Due to Change in Demographic Assumptions 62.99 (49.89)
Due to Change in Financial Assumptions 26.89 (39.40)
Due to Experience 111.60 38.51
Actuarial loss on Plan assets 0.19 (0.61)
Total 201.67 (51.39)
F. Plan Assets include the following:
1. Insurance funds 100% 100%

G. Assumptions used

(` in Lakhs)
Particulars 31-Mar-20 31-Mar-19
Discount rate 5.21% 7.48%
Long-term rate of compensation increase 5.5% p.a. for the 7.00%
next 3 years, 7%
p.a. thereafter,
starting from the
4th year
Rate of return on plan assets 5.21% 7.48%
Attrition rate 29% p.a. for all For service 4 years
service group and below 35.00%
p.a. For service 5
years and above
4.00% p.a.
Mortality Rate Indian Assured Lives Indian Assured Lives
Mortality (2006-08) Mortality (2006-08)
The weighted average duration of the defined benefit obligation is 4 years (31 March 2019 : 12 years) for all year presented
above.

172 METROPOLIS HEALTHCARE LTD

 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS

NOTES TO STANDALONE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

H. Sensitivity analysis
Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other
assumptions constant, would have affected the defined benefit obligation by the amounts shown below.

31 March 2020 31 March 2019

Increase Decrease Increase Decrease
Discount rate (1% movement) (20.48) 21.86 (56.60) 67.02
Future salary growth (1% movement) 20.60 (19.74) 63.76 55.30
Employee Turnover (1% movement) (4.76) 4.92 0.79 1.21

I. Expected future cash flows

(` in Lakhs)
Particulars Less than Between Between Over 5 Total
a year 1-2 years 2-5 years years
31 March 2020
Defined benefit obligations (Gratuity) 222.51 167.36 336.08 249.75 975.71
Total 222.51 167.36 336.08 249.75 975.71

(` in Lakhs)
Particulars Less than Between Between Over 5 Total
a year 1-2 years 2-5 years years
31 March 2019
Defined benefit obligations (Gratuity) 35.25 24.22 114.16 1,410.38 1,584.01
Total 35.25 24.22 114.16 1,410.38 -
(b) Defined contribution plan
The Company contributes towards statutory provident fund as per the Employees Provident Funds and Miscellaneous
Provisions Act, 1952 and towards employee state insurance as per the Employees’ State Insurance Act, 1948. The amount of
contribution to provident fund and Employee State Insurance Scheme recognised as expenses during the year is ` 635.86
Lakhs (31 March 2019 `612.56 Lakhs).

(c) Employee Stock Option Schemes

Description of share-based payment arrangements:
As at 31 March 2020 and 31 March 2019 Company had following share-based payment arrangements:

MESOS 2007 -
In the earlier years, Company had instituted an Employees Stock Option Scheme called “Metropolis Employee Stock Option
Scheme, 2007 (MESOS -2007)” and subsequently adopted a revised scheme on 2 June 2009 titled “MESOS – 2007 revised” as
approved by the Board of directors and Nomination and Remuneration Committee. All the options which were granted under
this scheme are vested as of 1 April 2016.

The Company has elected not to apply Ind AS 102 Share-based payment to equity instruments that vested before the date of
transition to Ind AS. Accordingly, the Company has measured only the unvested stock options on the date of transition as per
Ind AS 102.

MESOS 2015 -
The Company has instituted “Metropolis Employee Stock Option Plan 2015 “(MESOP 2015) for eligible employees. In terms of
the said plan, options to the employees shall vest at the rate of 30% of Grant on 36 months from Grant Date, 35% of Grant on
48 months from Grant Date and 35% of Grant on 60 months from Grant Date. The vested options can be exercised on earlier
of Listing of Company Shares on an Indian Stock Exchange or 60 month from the date of the grant. Further option can only be
exercised during the exercise window specified by the Company. Each Option carries with it the right to purchase one equity
share of the Company at the exercise price determined by Nomination and Remuneration Committee.

ANNUAL REPORT 2019-20 173

NOTES TO STANDALONE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

On 19 September 2017, consent was given by the Nomination and Remuneration Committee, where in vesting schedule was
modified to grant options under Metropolis Employee Stock Options Scheme, 2015 (MESOS 2015). As per modified terms,
option to

- Existing employees (person who is in continuous employment with the Company since 1 January, 2016 or prior thereto) shall
vest at the rate of 50% of Grant on 1 January 2018, 25% of Grant on 1 January 2019 and 25% of Grant on 1 January 2020.

- New employees (person who is in continuous employment with the Company after 01 January, 2016.) shall vest at the rate
of 50% of Grant on completion of 2 years from date of joining, 25% of Grant on completion of 3 years from date of joining and
25% of Grant on completion of 4 years from date of joining.

- No additional options to be granted to stock options under MESOS 2015 as per the resolution dated 24 September 2018,
passed by the Nomination & Remuneration Committee.

Grant date / employees Number of Vesting conditions Contractual life of options

entitled instruments
MESOS 2007 - Option 1,27,315 For the Options to vest, The exercise period for Options vested will be two years
granted to eligible the Grantee has to be from date of vesting subject to shares of the company
employees on 1 October in employment of the are listed at the time of exercise.
2007 Metropolis Group on the In case of exercise period expires prior to date of listing,
date of the vesting. options can be exercised immediately but in no event
later than 3 months from the date on which shares are
listed
MESOS 2015 - Option 27,800 For the Options to vest, The exercise period for Options vested will begin on
granted to eligible the Grantee has to be earlier of
employees on 25 April in employment of the (a) Listing of Company shares on an Indian Stock
2016 Metropolis Group on the Exchange or
date of the vesting.
(b) during the exercise window to be specified
individually by Nomination and Remuneration
Committee of the Company.
MESOS 2015 - Option 1,85,550 For the Options to vest, The exercise period for Options vested will begin on
granted to eligible the Grantee has to be earlier of
employees on 16 in employment of the (a) Listing of Company shares on an Indian Stock
October 2017 Metropolis Group on the Exchange or
date of the vesting.
(b) during the exercise window to be specified
individually by Nomination and Remuneration
Committee of the Company.
Reconciliation of Outstanding share options
The number and weighted-average exercise price of share options under the share share option plans are as follows:
MESOS 2007

31 March 2020 31 March 2019

Weighted Number of Weighted Number of
average options average options
exercise price exercise price
Outstanding at the beginning 100 - 100 42,675
Granted during the year 100 - 100 -
Exercised during the year (Pre bonus and split issue) 100 - 100 32,800
Lapsed/ forfeited /surrender/buyback 100 - 100 9,875
Outstanding at the end 100 - 100 -
Exercisable at the end 100 - 100 -

174 METROPOLIS HEALTHCARE LTD

 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS

NOTES TO STANDALONE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

MESOS 2015

31 March 2020 31 March 2019

Weighted Number of Weighted Number of
average Options average options
exercise price exercise price
Outstanding at the beginning 705.77 10,80,400 3670 * 2,07,770
Granted during the year - - - -
Granted due to bonus issue - - 705.77 8,310
Granted due to split of shares - - 705.77 8,64,320
Exercised during the period # 705.77 4,51,886 - -
Lapsed/ forfeited /surrendered 705.77 68,199 - -
Outstanding at the end 705.77 5,60,315 705.77 10,80,400

* On account of split and bonus with conversion factor of 5:2

The options outstanding at 31 March 2020 have an exercise price of ` 705.77 (31 March 2019 have an exercise price of ` 705.77)
and a weighted average remaining contractual life of 6 months to 2 years (31 March 2019: 6 months to 2 years)
The expense arising from MESOS 2015 scheme during the year is ` 72.38 Lakhs (31 March 2019 ` 88.44 Lakhs);
# Summary of Shares/Option exercised during the period

Particulars Number of Options Amount (` Lakhs)

Securities Premium (Exercise price (705.77) less Face value per share (2)) 4,51,886 3,180.24
General Reserve (Fair Value - 142.8 per Option) * 4,51,886 124.10
Equity Shares (Face value ` 2 per share) 4,51,886 9.04

* Fair value of the option has been adjusted post effect of bonus and share split

Measurement of Fair value

The fair value of employee share options has been measured using Black Scholes Option Pricing Model and is charged to the
standalone statement of Profit and Loss. The fair value of the options and the inputs used in the measurement of the grant
date fair values of the equity settled share based payment plans are as follows:

(` in Lakhs)
Particulars MESOS 2015
16 October 2017 25 April 2016
Fair value at grant date 142.80 66.00
Share price at grant date 2,910.00 2,289.00
Exercise price 3,670.00 3,670.00
Expected volatility (Weighted average volatility) 16.04% 16.70%
Expected life (expected weighted average life) 1.64 years 4.05 years
Expected dividends 3% 3%
Risk-free interest rates (Based on government bonds) 6.35% 7.42%
- Expected volatility of the option is based on historical volatility, during a period equivalent to the option life
- Dividend yield of the options is based on recent dividend activity
- Risk-free interest rates are based on the government securities yield in effect at the time of the grant.

ANNUAL REPORT 2019-20 175

NOTES TO STANDALONE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

50. SEGMENT REPORTING

The Company has presented segment information in the consolidated financial statements which are presented in the same
financial statements. Accordingly, in terms of Ind AS 108 ‘Operating Segments’, no disclosures related to segments are presented
in this standalone Ind AS financial statements

50. (A) CORPORATE SOCIAL RESPONSIBILITY (CSR)

The Company has spent ` 76.97 Lakhs (31 March 2019 ` 79.45 Lakhs) Lakhs towards various schemes of Corporate Social
Responsibility as prescribed under section 135 of the Companies Act, 2013. The details are:

a) Gross amount required to be spent by the Company during the year is ` 246.08 Lakhs (31 March 2019 ` 223.33 Lakhs);

b) Amount spent during the period on;

(` in Lakhs)
Particulars 31 March 2020
In Cash Yet to be paid in Total
Cash
Construction / acquisition of any asset - - -
On purposes other than (i) above 76.97 - 76.97

(` in Lakhs)
Particulars 31 March 2019
In Cash Yet to be paid in Total
Cash
Construction / acquisition of any asset - - -
On purposes other than (i) above 79.45 - 79.45

50. (B)
As at balance sheet date, the Company is awaiting response from the relevant regulatory authorities for the application filed
under section 441 of the Companies Act, 2013, for compounding of the non - compliance committed under section 134(3)(o)
read with section 135 of the Companies Act, 2013 in respect of disclosure regarding corporate social responsibility in the
Boards’ Report for the year ended on 31 March 2015.

However, the management has provided the amount of potential penalty in the books of accounts and believes that the
additional penalty, if any, that may arise due to the default would not be material.

51. (A) DISCLOSURE UNDER SECTION 186 (4) OF THE COMPANIES ACT, 2013
All the loans given by the Company to its subsidiary companies are under section 293 of the Companies Act, 1956, accordingly,
section 186 of the Companies Act, 2013 is not applicable to the Company.

Investments :
Details of investments made during the year are as under:

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Metropolis Histoxpert Digital Services Private Limited - 194.35
Desai Metropolis Health Services Private Limited # - 2,356.70
Sudharma Metropolis Health Services Private Limited # - 1,320.00
R.V. Metropolis Diagnostics & Healthcare Centre Private Limited # - 2,016.70
Dr. Patel Metropolis Healthcare Private Limited^ - 849.30

176 METROPOLIS HEALTHCARE LTD

 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS

NOTES TO STANDALONE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Micron Metropolis Healthcare Private Limited - 283.70
Lab One Metropolis Healthcare Services Private Limited # - 1,073.50
Bokil Golwilkar Metropolis Healthcare Private Limited^^ - 187.22
Total - 8,281.47

# During the year 31 March 2019, out of total investment for acquisition of additional stake in following subsidiary companies
-Desai Metropolis Health Services Private Limited - ` 895.86 Lakhs,
-Sudharma Metropolis Health Services Private Limited - ` 524.15 Lakhs,
-R.V. Metropolis Diagnostics & Healthcare Centre Private Limited - ` 824.61 Lakhs and
-Lab One Metropolis Healthcare Services Private Limited ` 389.61 Lakhs is settled by way of issue of 64,596 equity shares of
the company at value of ` 4,078 per share and remaining balance is settled by cash.

51. (B)DEFERRED PAYMENT CONSIDERATION

During the earlier years, the Company has entered into a business purchase agreement to acquire Sanjeevani Pathology
Laboratory located at Rajkot for an initial purchase consideration of ` 4,104.00 Lakhs, an amount of ` 2,300.00 Lakhs is to be
paid by the Company to Dr. Kiritkumar Patel, owner of Sanjeevani Pathology Laboratory in 7 tranches starting from February
2017 to March 2021.

The deferred consideration of ` 2,300.00 Lakhs has been meaured at fair value (` 2,100.96 Lakhs) on initial recognition and the
difference of ` 199.04 Lakhs (31 March 2019 : ` 199.04 Lakhs) will be recognise as finance cost on EIR basis over the payment
tenure; During year ended 31 March 2020 ` 16.44 Lakhs (31 March 2019 ` 36.88 Lakhs) charged to statement of profit and loss
(refer note 33).

^In case of investment in Dr. Patel Metropolis Healthcare Private Limited during year ended 31 March 2019, out of total
consideration of ` 868.92 Lakhs, an amount of ` 100 Lakhs is to be paid by Company in 2 tranches (` 80 Lakhs to be paid on 14
September 2021 and remaining ` 20 Lakhs to be paid on 14 September 2023).

The deferred consideration of ` 100 Lakhs has been measured at fair value (` 80.40 Lakhs) on initial recognition and the
difference of ` 19.60 Lakhs will be recognise as finance cost on EIR basis over the payment tenure; During year ended 31 March
2020 ` 5.54 Lakhs (31 March 2019 ` 2.92 Lakhs) charged to statement of profit and loss (refer note 33).

^^During the year company made investment in Bokil Golwilkar Metropolis Healthcare Private Limited for a consideration of `
192 Lakhs, of which an amount of ` 60 Lakhs is to be paid by Company in 2 tranches (` 40 Lakhs to be paid on 25 August 2019
and remaining ` 20 Lakhs to be paid on 25 February 2022)

The deferred consideration of ` 60 Lakhs has been measured at fair value (` 55.22 Lakhs) on initial recognition and the
difference of ` 4.78 Lakhs will be recognise as finance cost on EIR basis over the payment tenure; During year ended 31 March
2020 ` 2.15 Lakhs (31 March 2019 ` 0.33 Lakhs) charged to statement of profit and loss (refer note 33).

Summarised Details of Deferred Purchase Consideration

Particular 31 March 2020 31 March 2019

Finance Cost Closing Fair Finance Cost Closing Fair
value value
Sanjeevani Pathology Laboratory 16.44 376.24 36.88 583.55
Dr. Patel Metropolis Healthcare Private 5.54 88.85 2.92 193.25
Bokil Golwilkar Metropolis Healthcare Private 2.15 57.71 0.33 57.13
Total 24.13 522.80 40.13 833.93

ANNUAL REPORT 2019-20 177

NOTES TO STANDALONE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

52. INVESTMENT AND RECEIVABLE FROM STAR METROPOLIS HEALTH SERVICES MIDDLE EAST LLC, DUBAI
As at 31 March 2020, the Company has an investment of ` 129.85 Lakhs (31 March 2019 ` 129.85 Lakhs) and receivable of ` 640.88
Lakhs (31 March 2019 ` 640.88 Lakhs) from Star Metropolis Health Services Middle East LLC (‘Star Metropolis’) an associate
of the Company. Due to non availability of financial information from the associate entity, the value of the investment and
receivables cannot be determined. Hence, Management on prudent basis, has provided for its investments and receivable
from the said associate.

Since the information has not been forthcoming for many years, Management has decided to discontinued to recognize the
said entity as an associate from the current year and has filed an application to Reserve Bank of India (RBI) through Authorised
Dealer Bank seeking permission to write off the above investment and receivable.

53. SHARE WARRANT

On 31 December 2015, the Company had issued 1 warrant on preferential basis to Metz Advisory LLP which forms part of the
public shareholders of the Company. At the time of subscription, ` 0.20 Lakhs has been paid and the balance is payable at the
time of exercising the warrant.
As per the terms, warrant shall upon occurrence of a Warrant Exercise Event and payment of Warrant Exercise Price of `
2,579/- is convertible into 8,703 equity or 11,778 shares of face value of ` 10 depending on the occurrence of qualifying merger
up to 31 March 2016.
Since, as on 31 March 2016, the warrants are convertible into variable number of shares at a predetermined fixed price at the
time of warrant exercise event, such warrants will meet the definition of liability as per Ind AS 32. Accordingly, the Company
has classified money received on issue as liability as on 31 March 2016.
As per the terms as on 1 April 2016, such warrant shall upon occurrence of a Warrant Exercise Event and payment of Warrant
Exercise Price of ` 2,579/- is convertible into 8,703 equity shares of face value of ` 10.
Since, the warrants are converted into fixed number of shares at a predetermined fixed price at the time of warrant exercise
event, such warrants will meet the definition of an equity instrument as per Ind AS 32. Accordingly, the Company has classified
money received on issue as Equity as on 1 April 2016.
During the previous year ended 31 March 2019, such Share warrants were exercised at an exercise price of ` 2,579/- per share.
The Company has been received ` 224.45 Lakhs, of which ` 0.87 Lakhs has been recognised in Equity and ` 223.58 Lakhs has
been recongnised under Share premium.

54. TRANSFER PRICING

The Company’s management is of the opinion that its international and domestic transactions are at arm’s length as per the
independent accountants report for the year ended 31 March 2019. Management continues to believe that its international
transactions post March 2019 and the specified domestic transactions are at arm’s length and that the transfer pricing
legislation will not have any impact on these financial statements, particularly on amount of tax expense and that of provision
of taxation.

55. Metropolis Healthcare Lanka Private Limited (Metropolis Lanka) has bought back 250,000 ordinary shares held by Nawaloka
Hospitals PLC (“Nawaloka”) in Metropolis Lanka pursuant to memorandum of understanding (MOU) dated 31 March 2017. As
per the MOU, the buy-back consideration payable by Metropolis Lanka was adjusted against certain receivables payable
by Nawaloka to Metropolis Lanka. As at 31 March 2020, Metropolis Lanka has not filed relevant forms with Registrar of the
Company in respect of share transfer. Currently, the shareholding records in the books of Metropolis Lanka assumes that the
buy-back has been effectuated as per the MOU and Metropolis Healthcare Limited is reflected as 100% owner of Metropolis
Lanka.

56. IMPACT OF THE COVID-19 PANDEMIC, SCHEDULE, IF ANY, FOR RESTARTING THE OPERATIONS AND STEPS TAKEN TO
ENSURE SMOOTH FUNCTIONING OF OPERATIONS:
a. Operations : The Company were operating at sub optimal levels following Government directives on lockdown in March 2020.
While most of the economic activity were at halt during the lockdown period, the healthcare sector continued operations
under the Essentials Commodities Act. Accordingly, the Company continued to service customers across channels.

178 METROPOLIS HEALTHCARE LTD

 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS

NOTES TO STANDALONE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

As permissions on resumption and relaxations in the lockdown guidance came from mid-April 2020 onwards, the Company
witnessed an uptick in demand from customers across various segments.

The Company has undertaken safety measures across our labs and collection centre and are following increased protocols
to ensure our people are safe and secure. The Company has gradually been ramping up capacities across our laboratories,
collection centre and geographies, on a daily basis.

The Company were the First Pvt lab in the country to start testing for Covid-19 in end March 2020. With the best TAT, continuous
medical engagement with doctors and government authorities, strong branding and customer equity, the Company were
successful in churning out Covid-19 tests. Initially the testing lab was set up at our Global Reference Lab in Mumbai however
as volumes increased the Company set up Covid-19 facility at Thane and subsequently at Chennai, Bengaluru, Pune and Delhi.

b. Customers : Due to lockdown situation in India, the Company had reduced samples across B2B & B2C channels in March
which continued till Mid-April 2020. In end April, full resumption of operations has started which has gradually increased in
May 2020 and the movement of samples and customer walk-ins are ramping up on a steady state basis

c. Financial resources, profitability and liquidity position: The Company has comfortable liquidity position being a net cash
company with zero debt. There may be some impact on receivable cycle from B2B business, however, the Company foresees
no major risk on receivables. Company’s B2C business doesn’t carry risk of recovery of assets since large part of the business
is on cash and carry model.

d. Estimation of the future impact of COVID-19 on its operations: The Company believe there will be impact in revenue and
profitability for Q1FY21 as operations were partially operating in April 2020 and were gradually ramping up in May 2020.

Considering that the situation is exceptional and is changing dynamically, the Company is not in a position to gauge with
certainty, the future impact on its operations. However, the Company is confident about adapting to the changing business
environment and respond suitably to fulfil the needs of its customers. With strong balance sheet having cash and cash
equivalents in excess of ` 100,00 Lakhs, asset light business and leadership position in markets of our operations, The
Company is well placed to tide over the current crisis and emerge stronger.

57. SUBSEQUENT EVENTS

• On 16 January 2020, the Company has entered into a share purchase agreement to acquire 51% stake in Shraddha Diagnostic
Centre (I) Private Limited (Shraddha Diagnostic) for an aggregate consideration of ` 936.30 Lakhs to its strengthen the
presence in the state of Gujarat. Subsequent to the balance sheet date the transaction pending to consummated.

• Impact due to Covid-19 in the FS and Company operation (Refer note 56)

58. Consequent to the issuance of “ Guidance Note on Division -II - Ind AS Schedule III to the Companies Act, 2013 certain items
of the financial statements have been regrouped/reclassified.

As per our report of even date attached

For B S R & Co. LLP For and on behalf of the Board of Directors Metropolis Healthcare Limited
Chartered Accountants L73100MH2000PLC192798
Firm Registration No: 101248W/W-100022
Tarun Kinger Dr. Sushil Shah Ameera Shah Poonam Tanwani
Partner Chairman & Executive Director Managing Director Company Secretary
Membership No: 105003 DIN: 00179918 DIN: 00208095 Membership No: ACS 19182
Place : Mumbai Place : Mumbai Place : Mumbai

Place : Mumbai Vijender Singh Rakesh Agarwal

Date : 29 May 2020 Chief Executive Officer Chief Financial Officer Date : 29 May 2020
Place : Gurugram Place : Gurugram

ANNUAL REPORT 2019-20 179

INDEPENDENT AUDITORS’ REPORT

To the Members of other comprehensive loss, consolidated changes in equity and

Metropolis Healthcare Limited consolidated cash flows for the year then ended.

Basis for Opinion

REPORT ON THE AUDIT OF THE CONSOLIDATED FINANCIAL We conducted our audit in accordance with the Standards on
STATEMENTS Auditing (SAs) specified under section 143(10) of the Act. Our
Opinion responsibilities under those SAs are further described in the
We have audited the consolidated financial statements of Auditor’s Responsibilities for the Audit of the Consolidated
Metropolis Healthcare Limited (hereinafter referred to as the Financial Statements section of our report. We are
“Holding Company”) and its subsidiaries (Holding Company independent of the Group and its joint venture in accordance
and its subsidiaries together referred to as “the Group”), and with the ethical requirements that are relevant to our audit of
its joint venture which comprise the consolidated balance the consolidated financial statements in terms of the Code
sheet as at 31 March 2020, and the consolidated statement of Ethics issued by the Institute of Chartered Accountants
of profit and loss (including other comprehensive income), of India and the relevant provisions of the Act, and we have
consolidated statement of changes in equity and consolidated fulfilled our other ethical responsibilities in accordance with
statement of cash flows for the year then ended, and notes to these requirements. We believe that the audit evidence
the consolidated financial statements, including a summary obtained by us along with the consideration of audit reports
of significant accounting policies and other explanatory of the other auditors referred to in sub paragraph (a) of the
information (hereinafter referred to as “the consolidated “Other Matters” paragraph below, is sufficient and appropriate
financial statements”). to provide a basis for our opinion on the consolidated financial
statements.
In our opinion and to the best of our information and according
to the explanations given to us, and based on the consideration Key Audit Matters
of reports of other auditors on separate financial statements Key audit matters are those matters that, in our professional
of such subsidiaries as were audited by the other auditors, judgment, were of most significance in our audit of the
the aforesaid consolidated financial statements give the consolidated financial statements of the current period.
information required by the Companies Act, 2013 (“Act”) in the These matters were addressed in the context of our audit
manner so required and give a true and fair view in conformity of the consolidated financial statements as a whole, and in
with the accounting principles generally accepted in India, of forming our opinion thereon, and we do not provide a separate
the consolidated state of affairs of the Group, and its joint opinion on these matters.
venture as at 31 March 2020, of its consolidated profit and

DESCRIPTION OF KEY AUDIT MATTER:

The key audit matter How the matter was addressed in our audit
As disclosed in note 4 of the consolidated financial statements Our audit procedures included the following:
the Group has goodwill aggregating ` 9,034.79 Lakhs at 31 March
• Assessing the identification of relevant Cash Generating
2020.
Units (CGU) to which goodwill is allocated;
Group tests goodwill for impairment annually, or more frequently
• Assessing the accuracy of prior period forecasts of the CGU
when there is an indication, the cash generating unit to which
with the actual financial performance of the CGU;
goodwill has been allocated may be impaired.
• Challenging the assumptions used in impairment analysis,
There are judgments used in this, such as projection of future
such as future sales, operating costs and profit margins
sales, operating costs and profit margins and discount rate in
and discount rate. This was based on our knowledge of the
applying discounted cash flow valuation methodology.
Group and the markets in which the CGU operates. We took
As impairment assessment involves significant assumptions assistance of our valuations specialists for above testing;
and judgment, we regard this as a key audit matter.
• Performing sensitivity analysis of the key assumptions, used
in determining the recoverable value;

• Evaluating the adequacy of disclosures of key assumptions,

judgements and sensitivities in respect of goodwill.

180 METROPOLIS HEALTHCARE LTD

 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS

INDEPENDENT AUDITORS’ REPORT (Contd.)

OTHER INFORMATION In preparing the consolidated financial statements, the

The Company’s Management and Board of Directors are respective Management and Board of Directors of the
responsible for the other information. The other information companies included in the Group and of its joint venture are
comprises the information included in the Company’s annual responsible for assessing the ability of each company to
report, but does not include the financial statements and our continue as a going concern, disclosing, as applicable, matters
auditors’ report thereon. related to going concern and using the going concern basis of
accounting unless the respective Board of Directors either
Our opinion on the consolidated financial statements does not intends to liquidate the Company or to cease operations, or
cover the other information and we do not express any form of has no realistic alternative but to do so.
assurance conclusion thereon.
The respective Board of Directors of the companies included
In connection with our audit of the consolidated financial in the Group and of its joint venture responsible for overseeing
statements, our responsibility is to read the other information the financial reporting process of each company.
and, in doing so, consider whether the other information
is materially inconsistent with the consolidated financial AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE
statements or our knowledge obtained in the audit or CONSOLIDATED FINANCIAL STATEMENTS
otherwise appears to be materially misstated. If, based on the
Our objectives are to obtain reasonable assurance about
work we have performed and based on the work done/ audit
whether the consolidated financial statements as a whole
report of other auditors, we conclude that there is a material
are free from material misstatement, whether due to fraud
misstatement of this other information, we are required to
or error, and to issue an auditor’s report that includes our
report that fact. We have nothing to report in this regard.
opinion. Reasonable assurance is a high level of assurance,but
is not a guarantee that an audit conducted in accordance
MANAGEMENT’S AND BOARD OF DIRECTORS’
with SAs will always detect a material misstatement when it
RESPONSIBILITIES FOR THE CONSOLIDATED FINANCIAL
exists. Misstatements can arise from fraud or error and are
STATEMENTS
considered material if, individually or in the aggregate, they
The Holding Company’s Management and Board of Directors could reasonably be expected to influence the economic
are responsible for the preparation and presentation of decisions of users taken on the basis of these consolidated
these consolidated financial statements in term of the financial statements.
requirements of the Act that give a true and fair view of the
consolidated state of affairs, consolidated profit/loss and As part of an audit in accordance with SAs, we exercise
other comprehensive income, consolidated statement of professional judgment and maintain professional skepticism
changes in equity and consolidated cash flows of the Group throughout the audit. We also:
including its joint venture in accordance with the accounting • Identify and assess the risks of material misstatement
principles generally accepted in India, including the Indian of the consolidated financial statements, whether due
Accounting Standards (Ind AS) specified under section 133 of to fraud or error, design and perform audit procedures
the Act. The respective Management and Board of Directors responsive to those risks, and obtain audit evidence
of the companies included in the Group and of its joint venture that is sufficient and appropriate to provide a basis
are responsible for maintenance of adequate accounting for our opinion. The risk of not detecting a material
records in accordance with the provisions of the Act for misstatement resulting from fraud is higher than for
safeguarding the assets of each Company and for preventing one resulting from error, as fraud may involve collusion,
and detecting frauds and other irregularities; the selection forgery, intentional omissions, misrepresentations, or
and application of appropriate accounting policies; making the override of internal control.
judgments and estimates that are reasonable and prudent;
and the design, implementation and maintenance of adequate • Obtain an understanding of internal control relevant to
internal financial controls, that were operating effectively the audit in order to design audit procedures that are
for ensuring accuracy and completeness of the accounting appropriate in the circumstances. Under section 143(3)
records, relevant to the preparation and presentation of the (i) of the Act, we are also responsible for expressing our
consolidated financial statements that give a true and fair view opinion on the internal financial controls with reference
and are free from material misstatement, whether due to fraud to the consolidated financial statements and the
or error, which have been used for the purpose of preparation operating effectiveness of such controls based on our
of the consolidated financial statements by the Management audit.
and Directors of the Holding Company, as aforesaid.

ANNUAL REPORT 2019-20 181

INDEPENDENT AUDITORS’ REPORT (Contd.)

• Evaluate the appropriateness of accounting policies planned scope and timing of the audit and significant audit
used and the reasonableness of accounting estimates findings, including any significant deficiencies in internal
and related disclosures made by the Management and control that we identify during our audit.
Board of Directors.
We also provide those charged with governance with a
• Conclude on the appropriateness of Management and statement that we have complied with relevant ethical
Board of Directors use of the going concern basis of requirements regarding independence, and to communicate
accounting in preparation of consolidated financial with them all relationships and other matters that may
statements and, based on the audit evidence obtained, reasonably be thought to bear on our independence, and
whether a material uncertainty exists related to events where applicable, related safeguards.
or conditions that may cast significant doubt on the
From the matters communicated with those charged with
appropriateness of this assumption. If we conclude that
governance, we determine those matters that were of
a material uncertainty exists, we are required to draw
most significance in the audit of the consolidated financial
attention in our auditor’s report to the related disclosures
statements of the current period and are therefore the key
in the consolidated financial statements or, if such
audit matters. We describe these matters in our auditors’
disclosures are inadequate, to modify our opinion. Our
report unless law or regulation precludes public disclosure
conclusions are based on the audit evidence obtained
about the matter or when, in extremely rare circumstances,
up to the date of our auditor’s report. However, future
we determine that a matter should not be communicated in
events or conditions may cause the Group and its joint
our report because the adverse consequences of doing so
venture to cease to continue as a going concern.
would reasonably be expected to outweigh the public interest
• Evaluate the overall presentation, structure and content benefits of such communication.
of the consolidated financial statements, including the
disclosures, and whether the consolidated financial OTHER MATTERS
statements represent the underlying transactions and (a) We did not audit the financial statements of 6 subsidiaries,
events in a manner that achieves fair presentation. whose financial statements reflect total assets of `
• Obtain sufficient appropriate audit evidence regarding 5,008.55 Lakhs as at 31 March 2020, total revenues of `
the financial information of such entities or business 4,135.46 Lakhs and net cash flows amounting to ` 876.52
activities within the Group and its joint venture to express Lakhs for the year ended on that date, as considered in
an opinion on the consolidated financial statements. the consolidated financial statements. These financial
We are responsible for the direction, supervision and statements have been audited by other auditors whose
performance of the audit of financial information of reports have been furnished to us by the Management
such entities included in the consolidated financial and our opinion on the consolidated financial statements,
statements of which we are the independent auditors. in so far as it relates to the amounts and disclosures
For the other entities included in the consolidated included in respect of these subsidiaries, and our report
financial statements, which have been audited by other in terms of sub-section (3) of section 143 of the Act, in
auditors, such other auditors remain responsible for the so far as it relates to the aforesaid subsidiaries is based
direction, supervision and performance of the audits solely on the audit reports of the other auditors.
carried out by them. We remain solely responsible for Our opinion on the consolidated financial statements, and our
our audit opinion. Our responsibilities in this regard are report on Other Legal and Regulatory Requirements below,
further described in para (a) of the section titled ‘Other is not modified in respect of the above matters with respect
Matters’ in this audit report. to our reliance on the work done and the reports of the other
We believe that the audit evidence obtained by us along auditors.
with the consideration of audit reports of the other auditors
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
referred to in sub-paragraph (a) of the Other Matters paragraph
below, is sufficient and appropriate to provide a basis for our A. As required by section 143(3) of the Act, based on our
audit opinion on the consolidated financial statements. audit and on the consideration of reports of the other
auditors on separate financial statements of such
We communicate with those charged with governance of subsidiaries as were audited by other auditors, as noted
the Holding Company and such other entities included in in the ‘Other Matters’ paragraph, we report, to the extent
the consolidated financial statements of which we are the applicable, that:
independent auditors regarding, among other matters, the

182 METROPOLIS HEALTHCARE LTD

 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS

INDEPENDENT AUDITORS’ REPORT (Contd.)

a) We have sought and obtained all the information and i. The consolidated financial statements disclose the
explanations which to the best of our knowledge and impact of pending litigations as at 31 March 2020 on
belief were necessary for the purposes of our audit the consolidated financial position of the Group and
of the aforesaid consolidated financial statements. its joint venture. Refer Note 47 to the consolidated
financial statements;
b) In our opinion, proper books of account as required
by law relating to preparation of the aforesaid ii. The Group and its joint venture did not have
consolidated financial statements have been kept any material foreseeable losses on long-term
so far as it appears from our examination of those contracts including derivative contracts during the
books and the reports of the other auditors. year ended 31 March 2020;

c) The consolidated balance sheet, the consolidated iii. There has been no delay in transferring amounts to
statement of profit and loss (including other the Investor Education and Protection Fund by the
comprehensive income), the consolidated Holding Company or its subsidiary companies and
statement of changes in equity and the consolidated joint venture incorporated in India during the year
statement of cash flows dealt with by this Report ended 31 March 2020; and
are in agreement with the relevant books of account
iv. The disclosures in the consolidated financial
maintained for the purpose of preparation of the
statements regarding holdings as well as dealings
consolidated financial statements.
in specified bank notes during the period from 8
d) In our opinion, the aforesaid consolidated financial November 2016 to 30 December 2016 have not been
statements comply with the Ind AS specified under made in the financial statements since they do not
section 133 of the Act. pertain to the financial year ended 31 March 2020

e) On the basis of the written representations C. With respect to the matter to be included in the Auditor’s
received from the directors of the Holding Company report under section 197(16):
as on 31 March 2020 taken on record by the Board of
In our opinion and according to the information and
Directors of the Holding Company and the reports of
explanations given to us and based on the reports of
the statutory auditors of its subsidiary companies
the statutory auditors of such subsidiary companies
and joint venture incorporated in India, none of
and joint venture incorporated in India which were not
the directors of the Group companies and its joint
audited by us, the remuneration paid during the current
venture incorporated in India is disqualified as on 31
year by the Holding Company, its subsidiary companies
March 2020 from being appointed as a director in
and joint venture to its directors is in accordance with the
terms of section 164(2) of the Act.
provisions of section 197 of the Act. The remuneration
f) With respect to the adequacy of the internal paid to any director by the Holding Company, its
financial controls with reference to financial subsidiary companies and joint venture is not in excess
statements of the Holding Company, its subsidiary of the limit laid down under section 197 of the Act. The
companies and joint venture incorporated in India Ministry of Corporate Affairs has not prescribed other
and the operating effectiveness of such controls, details under section 197(16) which are required to be
refer to our separate Report in “Annexure A”. commented upon by us.

B. With respect to the other matters to be included in the

Auditor’s Report in accordance with Rule 11 of the and joint For B S R & Co. LLP
venture (Audit and Auditor’s) Rules, 2014, in our opinion
Chartered Accountants
and to the best of our information and according to the
Firm’s Registration No: 101248W/W-100022
explanations given to us and based on the consideration
Tarun Kinger
of the reports of the other auditors on separate financial
statements of the subsidiaries and joint venture, as Place: Mumbai Partner
noted in the ‘Other Matters’ paragraph: Date: 29 May 2020 Membership No: 105003
ICAI UDIN: 20105003AAAABA3677

ANNUAL REPORT 2019-20 183

ANNEXURE A TO THE INDEPENDENT AUDITORS’ REPORT ON THE CONSOLIDATED FINANCIAL
STATEMENTS OF METROPOLIS HEALTHCARE LIMITED FOR THE YEAR ENDED 31 MARCH 2020

Report on the internal financial controls with reference and completeness of the accounting records, and the timely
to the aforesaid consolidated financial statements under preparation of reliable financial information, as required under
Clause (i) of Sub-section 3 of section 143 of the Companies the Companies Act, 2013 (hereinafter referred to as “the Act”).
Act, 2013
AUDITORS’ RESPONSIBILITY
(REFERRED TO IN PARAGRAPH (A) (f) UNDER ‘REPORT ON
OTHER LEGAL AND REGULATORY REQUIREMENTS’ SECTION Our responsibility is to express an opinion on the internal
OF OUR REPORT OF EVEN DATE) financial controls with reference to consolidated financial
statements based on our audit. We conducted our audit in
Opinion
accordance with the Guidance Note and the Standards on
In conjunction with our audit of the consolidated financial
Auditing, prescribed under section 143(10) of the Act, to the
statements of the Company as of and for the year ended 31
extent applicable to an audit of internal financial controls
March 2020, we have audited the internal financial controls
with reference to consolidated financial statements. Those
with reference to consolidated financial statements of
Standards and the Guidance Note require that we comply
Metropolis Healthcare Limited (hereinafter referred to as
with ethical requirements and plan and perform the audit to
“the Holding Company”) and such companies incorporated in
obtain reasonable assurance about whether adequate internal
India under the Companies Act, 2013 which are its subsidiary
financial controls with reference to consolidated financial
companies, as of that date.
statements were established and maintained and if such
In our opinion, the Holding Company and such companies controls operated effectively in all material respects.
incorporated in India which are its subsidiary companies,
Our audit involves performing procedures to obtain audit
have, in all material respects, adequate internal financial
evidence about the adequacy of the internal financial controls
controls with reference to consolidated financial statements
with reference to consolidated financial statements and
and such internal financial controls were operating effectively
their operating effectiveness. Our audit of internal financial
as at 31 March 2020, based on the internal financial controls
controls with reference to consolidated financial statements
with reference to consolidated financial statements criteria
included obtaining an understanding of internal financial
established by such companies considering the essential
controls with reference to consolidated financial statements,
components of such internal controls stated in the Guidance
assessing the risk that a material weakness exists, and testing
Note on Audit of Internal Financial Controls Over Financial
and evaluating the design and operating effectiveness of the
Reporting issued by the Institute of Chartered Accountants of
internal controls based on the assessed risk. The procedures
India (the “Guidance Note”).
selected depend on the auditor’s judgement, including the
assessment of the risks of material misstatement of the
MANAGEMENT’S RESPONSIBILITY FOR INTERNAL FINANCIAL
consolidated financial statements, whether due to fraud or
CONTROLS
error.
The respective Company’s management and the Board of
Directors are responsible for establishing and maintaining We believe that the audit evidence we have obtained, is
internal financial controls with reference to consolidated sufficient and appropriate to provide a basis for our audit
financial statements based on the criteria established by the opinion on the internal financial controls with reference to
respective Company considering the essential components consolidated financial statements.
of internal control stated in the Guidance Note. These
MEANING OF INTERNAL FINANCIAL CONTROLS WITH
responsibilities include the design, implementation and
REFERENCE TO CONSOLIDATED FINANCIAL STATEMENTS
maintenance of adequate internal financial controls that were
operating effectively for ensuring the orderly and efficient A company’s internal financial controls with reference to
conduct of its business, including adherence to the respective consolidated financial statements is a process designed to
company’s policies, the safeguarding of its assets, the provide reasonable assurance regarding the reliability of
prevention and detection of frauds and errors, the accuracy financial reporting and the preparation of financial statements

184 METROPOLIS HEALTHCARE LTD

 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS

ANNEXURE A TO THE INDEPENDENT AUDITORS’ REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS OF

METROPOLIS HEALTHCARE LIMITED FOR THE YEAR ENDED 31 MARCH 2020 (CONTD.)

for external purposes in accordance with generally accepted INHERENT LIMITATIONS OF INTERNAL FINANCIAL
accounting principles. A company’s internal financial CONTROLS WITH REFERENCE TO CONSOLIDATED FINANCIAL
controls with reference to consolidated financial statements STATEMENTS
includes those policies and procedures that (1) pertain to the Because of the inherent limitations of internal financial
maintenance of records that, in reasonable detail, accurately controls with reference to consolidated financial statements,
and fairly reflect the transactions and dispositions of the including the possibility of collusion or improper management
assets of the company; (2) provide reasonable assurance that override of controls, material misstatements due to error or
transactions are recorded as necessary to permit preparation fraud may occur and not be detected. Also, projections of any
of financial statements in accordance with generally accepted evaluation of the internal financial controls with reference
accounting principles, and that receipts and expenditures to consolidated financial statements to future periods are
of the company are being made only in accordance with subject to the risk that the internal financial controls with
authorisations of management and directors of the company; reference to consolidated financial statements may become
and (3) provide reasonable assurance regarding prevention inadequate because of changes in conditions, or that the
or timely detection of unauthorised acquisition, use, or degree of compliance with the policies or procedures may
disposition of the company’s assets that could have a material deteriorate.
effect on the financial statements.

For B S R & Co. LLP

Chartered Accountants
Firm’s Registration No: 101248W/W-100022
Tarun Kinger
Place: Mumbai Partner
Date: 29 May 2020 Membership No: 105003
ICAI UDIN: 20105003AAAABA3677

ANNUAL REPORT 2019-20 185

CONSOLIDATED BALANCE SHEET
AS AT 31 MARCH 2020

(` in Lakhs)
Particulars Notes As at As at
31 March 2020 31 March 2019
I. ASSETS
Non-current assets
Property, plant and equipment 3 12,119.62 11,667.14
Right of use assets 40 5,965.92 -
Goodwill 4 9,034.79 7,855.08
Other intangible assets 4 2,516.83 1,758.68
Intangible assets under development 298.73 577.30
Equity accounted investees 46 & 5 - 51.98
Financial Assets
i) Investments 6 175.28 175.28
ii) Loans 7 546.70 420.65
iii) Other non-current financial assets 8 1,239.34 1,019.90
Deferred tax assets (Net) 38 (iv) 1,390.11 365.71
Other non-current assets 9 636.72 155.01
Non-current tax assets (Net) 10 1,593.19 745.06
Total non-current assets 35,517.23 24,791.79
Current assets
Inventories 11 2,440.07 2,610.23
Financial Assets
i. Investments 12 1,256.61 3,101.62
ii. Trade receivables 13 12,824.78 13,684.78
iii. Cash and cash equivalents 14 10,717.42 5,137.10
iv. Bank balance other than (iii) above 15 10,329.70 2,886.83
v. Loans 16 1,118.07 1,510.15
vi Other current financial assets 17 217.10 843.31
Other current assets 18 802.19 698.24
Total current assets 39,705.94 30,472.26
Total assets 75,223.17 55,264.05
II. EQUITY AND LIABILITIES
Equity
Equity share capital 19 1,012.61 1,003.57
Other equity 20 51,337.00 40,850.27
Equity attributable to equity holders of the Company 52,349.61 41,853.84
Non-controlling interests 165.76 143.07
Total equity 52,515.37 41,996.91
Liabilities
Non-current liabilities
Financial liabilities
i. Borrowings 21 - 3.51
ii. Other non-current financial liabilities 22 467.81 208.89
iii. Lease Liabilities 40 4,577.81 -
Provisions 23 541.40 316.08
Deferred tax liabilities (net) 38 (iv) 172.82 290.02
Total non-current liabilities 5,759.84 818.50
Current liabilities
Financial liabilities
i. Borrowings 24 - 1,757.86
ii. Lease Liabilities 40 2,088.89 -
iii. Trade payables
- Total outstanding dues of micro and small enterprises 25 724.72 3.87
- Total outstanding dues of creditors other than micro enterprises and small 25 7,778.68 4,281.05
enterprises
Other current financial liabilities 26 3,441.44 4,183.49
Other current liabilities 27 1,881.15 803.85
Provisions 23 659.91 488.09
Current tax liabilities (net) 28 373.17 930.43
Total current liabilities 16,947.96 12,448.64
Total liabilities 22,707.80 13,267.14
Total Equity and Liabilities 75,223.17 55,264.05
The accompanying notes are an intergal part of these consolidated financial statements.
As per our report of even date attached
For B S R & Co. LLP For and on behalf of the Board of Directors Metropolis Healthcare Limited
Chartered Accountants L73100MH2000PLC192798
Firm Registration No: 101248W/W-100022
Tarun Kinger Dr. Sushil Shah Ameera Shah Poonam Tanwani
Partner Chairman & Executive Director Managing Director Company Secretary
Membership No: 105003 DIN: 00179918 DIN: 00208095 Membership No: ACS 19182
Place : Mumbai Place : Mumbai Place : Mumbai

Place : Mumbai Vijender Singh Rakesh Agarwal

Date : 29 May 2020 Chief Executive Officer Chief Financial Officer Date : 29 May 2020
Place : Gurugram Place : Gurugram

186 METROPOLIS HEALTHCARE LTD

 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS

CONSOLIDATED STATEMENT OF PROFIT AND LOSS

FOR THE YEAR ENDED 31 MARCH 2020

(` in Lakhs)
Particulars Notes For the year ended For the year Ended
31 March 2020 31 March 2019
INCOME
Revenue from operations 29 85,640.54 76,118.18
Other income 30 856.66 821.32
Total Income 86,497.20 76,939.50
EXPENSES
Cost of materials consumed 31 20,413.50 17,351.02
Laboratory testing charges 32 688.99 557.17
Employee benefits expense 33 19,015.62 17,620.71
Finance costs 34 834.47 53.11
Depreciation and amortisation expense 35 3,926.72 2,006.61
Other expenses 36 22,239.95 20,552.68
Total Expenses 67,119.25 58,141.30
Profit before exceptional items ,share of profit for equity accounted 19,377.95 18,798.20
investees and income tax
Exceptional items 37 2,452.66 -
Profit before share of profit for equity accounted investees and income tax 16,925.29 18,798.20
Share of (loss) for equity accounted investees (net of tax) 46 (51.98) (143.02)
Profit before tax 16,873.31 18,655.18
Income tax expense: 38
1. Current tax 5,326.98 6,309.03
2. Deferred tax (income) (919.33) (15.13)
3. Tax adjustments for earlier years (289.56) -
Total Income Tax expenses 4,118.09 6,293.90
Profit for the year 12,755.22 12,361.28
Other Comprehensive Income (OCI)
(i) Items that will not be reclassified subsequently to profit and loss
Remeasurements of the defined benefit plans 51 (a) (278.02) 74.50
Income tax on above 38 69.98 (24.54)
(208.04) 49.96
(ii) Items that will be subsequently reclassified to profit and loss
Exchange differences in translating financial statements of foreign (92.11) 89.32
operations
(92.11) 89.32
Other comprehensive income for the year, net of tax (300.15) 139.28
Total comprehensive income for the year 12,455.07 12,500.56
Profit attributable to:
Owners of the Company 12,732.56 12,014.79
Non-controlling interest 22.66 346.49
Other comprehensive income attributable to:
Owners of the Company (300.18) 138.14
Non-controlling interest 0.03 1.14
Total comprehensive income attributable to:
Owners of the Company 12,432.37 12,152.93
Non-controlling interest 22.69 347.63
Earnings per equity share
Equity shares of face value of ` 2 each
Basic earnings per share (`) 39 25.36 24.06
Diluted earnings per share (`) 39 25.25 24.02
The accompanying notes are an intergal part of these consolidated financial statements.

As per our report of even date attached

For B S R & Co. LLP For and on behalf of the Board of Directors Metropolis Healthcare Limited
Chartered Accountants L73100MH2000PLC192798
Firm Registration No: 101248W/W-100022
Tarun Kinger Dr. Sushil Shah Ameera Shah Poonam Tanwani
Partner Chairman & Executive Director Managing Director Company Secretary
Membership No: 105003 DIN: 00179918 DIN: 00208095 Membership No: ACS 19182
Place : Mumbai Place : Mumbai Place : Mumbai

Place : Mumbai Vijender Singh Rakesh Agarwal

Date : 29 May 2020 Chief Executive Officer Chief Financial Officer Date : 29 May 2020
Place : Gurugram Place : Gurugram

ANNUAL REPORT 2019-20 187

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2020

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
A CASH FLOW FROM OPERATING ACTIVITIES
Profit before tax 16,873.31 18,655.18
Adjustments for :
Depreciation and amortisation expense 3,926.72 2,006.61
Loss/(Gain) on sale of property plant and equipments (net) 60.01 (3.05)
Provision for bad and doubtful debts 3,500.00 508.15
Provision for bad and doubtful advances 246.81 3.84
Loss on sale of debt instrument measured at FVOCI - 3.79
Foreign exchange (gain) (net) (55.09) (20.71)
Employee share based payment expenses 72.38 88.44
Credit impaired trade receivables written off - 24.43
Interest income (589.96) (346.53)
Changes in fair value of current investments (90.07) (330.59)
Provision for impairment of current investments 336.48 144.20
Dividend income from mutual fund (21.46) (96.24)
Share of Loss of equity accounted investment 51.98 143.02
Interest expense 834.47 53.11
Operating profit before working capital changes 25,145.58 20,833.65
Working capital adjustments:
Decrease/(Increase) in loans 238.28 (491.58)
Decrease/(Increase) in inventories 170.16 (491.51)
(Increase) in trade receivables (2,658.44) (4,128.25)
Decrease/(Increase) in other assets 586.07 (908.28)
Increase in provisions 119.12 89.54
Increase in trade payables 3,163.25 751.12
Increase in other financial liabilities (151.55) 68.76
(Decrease)/Increase in other liabilities 1,330.41 32.03
Cash generated from operating activities 27,942.89 15,755.48
Income Taxes (paid) (6,442.81) (6,740.40)
Net cash generated from operating activities (A) 21,500.08 9,015.08
B CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment and capital work-in-progress (2,918.36) (1,955.80)
(Including capital advances and capital creditors)
Purchase of other intangible assets (702.32) (418.50)
Proceeds from sale of property, plant and equipment 26.31 26.53
Purchase consideration paid towards acquisition of business (1,237.93) (129.12)
Proceeds from sale of non-current investment - 0.25
Proceeds from sale of current investments 2,465.47 11,527.87
Purchase of current investments (866.87) (4,405.00)
Purchase of stake in joint venture - (194.35)
Interest received 391.44 206.17
Dividend received 21.46 96.24
Net investments in bank deposits (having original maturity of more than three (7,662.32) (1,220.00)
months)
Net cash (used in)/generated from investing activities (B) (10,483.12) 3,534.29

188 METROPOLIS HEALTHCARE LTD

 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2020 (CONTD.)

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
C CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from Share warrants exercise (Refer note 55)^ - 224.45
Share based payments - (355.45)
Procees from Issue of Share to ESOP holders (Refer note 51(c) ) 3,189.27 32.80
Repayment of long-term borrowings (16.56) (16.30)
Repayment of short-term borrowings (1,757.86) 1,720.90
Lease payments (1,332.64) -
Interest on Lease Liabilities (722.33) -
Payment of dividend (4,014.29) (6,653.69)
Payment of dividend tax (825.15) (1,655.46)
Acquisition of non-controlling interests - (5,098.87)
Interest expense (52.76) (13.07)
Net cash (used in) Financing activities ( C) (5,532.32) (11,814.69)
Net Increase in cash and cash equivalents (A) + (B) + (C) 5,484.64 734.68
Effect of exchange rate changes on cash and cash equivalents 95.68 55.66
Net Increase in cash and cash equivalents 5,580.32 790.34
Cash and Cash Equivalents at the beginning of the year (Refer note 14) 5,137.10 4,346.76
Cash and Cash Equivalents at the end of the year (Refer note 14) 10,717.42 5,137.10
Notes:
1. The Cash Flow Statement has been prepared under the “Indirect Method” as set out in the Indian Accounting Standard - 7
“Cash Flow Statement”
2. The figures in the brackets indicate outflow of cash and cash equivalents.
3. The movement of borrowing as per Ind AS 7 is as follows:

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Balance as at the beginning of the year 1,777.92 73.32
Cashflows (1,774.41) 1,704.60
Balance as at the end of the year 3.51 1,777.92
Note:
^ During the previous year ended 31 March 2019, 64,596 shares for total non cash consideration of ` 2634.42 Lakhs at premium
of ` 4,068 were issued to shareholders of subsidiary companies for acquiring balance stake and (Refer note 44)

^ During the previous year ended 31 March 2019, 1 share for total non consideration of ` 0.00 Lakhs was issued to shareholders
of Bacchus Hospitality Services and Real Estate Private Limited pursuant to amalgamation (Refer note 57)

The accompanying notes are an intergal part of these consolidated financial statements.

As per our report of even date attached

For B S R & Co. LLP For and on behalf of the Board of Directors Metropolis Healthcare Limited
Chartered Accountants L73100MH2000PLC192798
Firm Registration No: 101248W/W-100022
Tarun Kinger Dr. Sushil Shah Ameera Shah Poonam Tanwani
Partner Chairman & Executive Director Managing Director Company Secretary
Membership No: 105003 DIN: 00179918 DIN: 00208095 Membership No: ACS 19182
Place : Mumbai Place : Mumbai Place : Mumbai

Place : Mumbai Vijender Singh Rakesh Agarwal

Date : 29 May 2020 Chief Executive Officer Chief Financial Officer Date : 29 May 2020
Place : Gurugram Place : Gurugram

ANNUAL REPORT 2019-20 189

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (‘SOCIE’)
FOR THE YEAR ENDED 31 MARCH 2020

A. CHANGES IN EQUITY SHARE CAPITAL (REFER NOTE 19)

Particulars Number of shares Amount

(in Lakhs)
Balance as at 1 April 2018 95,43,646 954.36
Changes in equity share capital during the year
Issued under Metropolis Employee Stock Option Scheme 2007 (Refer note 51 32,800 3.28
(c) )
Issued on exercise of share warrants (Refer note 55) 8,703 0.87
Issued to the Shareholders of Subsidiary Companies on acquisition of further 64,596 6.46
stake (Refer note 44(i)(ii)(iii)(iv)(v)(vi))
Issued to the Shareholders of Bacchus Hospitality Services and Real Estate 26,57,731 265.77
Private Limited pursuant to the scheme of amalgamation (Refer note 57 b) )
Cancellation of the old shares of Bacchus Hospitality Services and Real Estate (26,57,730) (265.77)
Private Limited pursuant to the scheme of amalgamation (Refer note 57 (b) )
Issue of Bonus Shares (Refer Note 19(g)) 3,85,990 38.60
Outstanding before sub-division of shares 1,00,35,736 1,003.57
Adjustment for Sub-Division of Equity Shares (Refer Note 19(g)) 4,01,42,944 -
Balance as at 1 April 2019 5,01,78,680 1,003.57
Changes in equity share capital during the year
Issued under Metropolis Employee Stock Option Scheme 2015 (Refer note 51 (c) ) 4,51,886 9.04
Balance as at 31 March 2020 5,06,30,566 1,012.61

190 METROPOLIS HEALTHCARE LTD

 B. OTHER EQUITY (REFER NOTE 20)
Particulars Fully Reserves & Surplus Other comprehensive income Total Non- Total oth-
convert- Secu- Capital re- General Capital Em- Retained Foreign Debt in- Gain/Loss other con- er equity
ible share rities demption reserve reserve ployee earnings Currency struments on remea- Equity trolling
warrants premium reserve stock Trans- fair valued surement attribut- Interest
(Refer options lation through of defined able to
55) reserve reserves OCI benefit plan owners of
through OCI Company
Balance as at 1 April 2018 0.20 5,831.61 32.37 1,750.98 69.13 170.34 32,560.39 143.37 0.27 (36.35) 40,522.32 1,436.57 41,958.89
Profit for the year - - - - - - 12,014.79 - - - 12,014.79 346.49 12,361.28
Gain/loss on re-measurement of - - - - - - - - - 48.82 48.82 1.14 49.96
defined benefit plans
Exchange differences in translating - - - - - - - 89.32 - - 89.32 - 89.32
financial statements of foreign
operations
Total comprehensive income - - - - - - 12,014.79 89.32 - 48.82 12,152.93 347.63 12,500.56
Interim dividend - - - - - - (6,653.69) - - - (6,653.69) - (6,653.69)
FOR THE YEAR ENDED 31 MARCH 2020 (CONTD.)

Tax on Interim dividend - - - - - - (1,655.46) - - - (1,655.46) - (1,655.46)

Acquisition of stake from NCI (refer - - - - - - (6,446.07) - - - (6,446.07) (1,641.13) (8,087.20)
note 44(i)(iii)(iv)(v)(vi)(vii)(viii))
Utlilised during the year pursuant to - (0.00)^ - - - - - - - - - - -
the scheme of Amalgamation with
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (‘SOCIE’)

Bacchus Hospitality Services and

Real Estate Private Limited (Refer
note 57 (b) )
Utilised on issue of bonus shares - (6.55) (32.04) - - - - - - - (38.59) - (38.59)
Share options exercised under - 29.52 - - - - - - - - 29.52 - 29.52
Metropolis Employee Stock Option
Scheme 2007 (Refer note 51 (c) )
Share warrants exercised during (0.20) 223.58 - - - - - - - - 223.38 - 223.38
the year (Refer note 55)
Shares issued to the Shareholders - 2,627.77 - - - - - - - - 2,627.77 - 2,627.77
of Subsidiary Companies on
acquisition of further stake (refer
note 44(i)(ii)(iii)(iv)(v)(vi) )
Share based payments (Refer note - - - - - 88.44 - - - - 88.44 - 88.44
33)
Debt instruments fair valued - - - - - - - - (0.27) - (0.27) - (0.27)
through other comprehensive
income

ANNUAL REPORT 2019-20

Balance as at 31 March 2019 - 8,705.93 0.33 1,750.98 69.13 258.78 29,819.96 232.69 - 12.47 40,850.27 143.07 40,993.34
STATUTORY REPORTS
CORPORATE OVERVIEW

191
FINANCIAL STATEMENTS
 Particulars Fully Reserves & Surplus Other comprehensive income Total Non- Total oth-

192
convert- Secu- Capital re- General Capital Em- Retained Foreign Debt in- Gain/Loss other con- er equity
ible share rities demption reserve reserve ployee earnings Currency struments on remea- Equity trolling
warrants premium reserve stock Trans- fair valued surement attribut- Interest
(Refer options lation through of defined able to
55) reserve reserves OCI benefit plan owners of
through OCI Company
Balance as at 1 April 2019 - 8,705.93 0.33 1,750.98 69.13 258.78 29,819.96 232.69 - 12.47 40,850.27 143.07 40,993.34
Profit for the year - - - - - - 12,732.56 - - - 12,732.56 22.66 12,755.22
Other comprehensive income - - - - - - - - - (208.07) (208.07) 0.03 (208.04)
Gain/loss on re-measurement of - - - - - - - - - - - -

METROPOLIS HEALTHCARE LTD

defined benefit plans
Exchange differences in translating - - - - - - - (92.11) - - (92.11) - (92.11)
financial statements of foreign
operations
Total comprehensive income - - - - - - 127,32.56 (92.11) - (208.07) 12,432.38 22.69 12,455.07
Interim dividend - - - - - - (4,014.29) - - - (4,014.29) - (4,014.29)
FOR THE YEAR ENDED 31 MARCH 2020 (CONTD.)

Tax on Interim dividend - - - - - - (825.15) - - - (825.15) - (825.15)

Share options exercised under - 3,180.23 - 124.10 - (124.10) - - - - 3,180.23 - 3,180.23
Metropolis Employee Stock Option
Scheme 2007 (Refer note 51 (c) )
Transition impact of Ind AS 116, net - - - - - - (358.82) - - - (358.82) - (358.82)
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (‘SOCIE’)

of tax (Refer note 40)

Share based payments (Refer note - - - - - 72.38 - - - - 72.38 - 72.38
33)
Balance as at 31 March 2020 - 11,886.16 0.33 1,875.08 69.13 207.06 37,354.26 140.58 - (195.60) 51,337.00 165.76 51,502.76

^ Amount is below ` 10

The accompanying notes form an integral part of these consolidated financial statements

As per our report of even date attached

For B S R & Co. LLP For and on behalf of the Board of Directors Metropolis Healthcare Limited
Chartered Accountants L73100MH2000PLC192798
Firm Registration No: 101248W/W-100022
Tarun Kinger Dr. Sushil Shah Ameera Shah Poonam Tanwani
Partner Chairman & Executive Director Managing Director Company Secretary
Membership No: 105003 DIN: 00179918 DIN: 00208095 Membership No: ACS 19182
Place : Mumbai Place : Mumbai Place : Mumbai

Place : Mumbai Vijender Singh Rakesh Agarwal

Date : 29 May 2020 Chief Executive Officer Chief Financial Officer Date : 29 May 2020
Place : Gurugram Place : Gurugram
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020

1 BACKGROUND OF COMPANY AND NATURE OF THE and the date of the Holding Company’s financial
OPERATION statements being 31 March 2020 since there were
Metropolis Healthcare Limited (the ‘Company’ or the no significant transactions and events that occured
‘Holding Company’), was incorporated as Pathnet India in this period.
Private Limited in the year 2000. These consolidated b Current vs non-current classification:
financial statements comprise the Company and its All the assets and liabilities have been classified
subsidiaries (referred to collectively as the ‘Group’) and its into current and non current.
joint venture. The Group and its joint Venture is primarily
Assets:
involved in providing pathology and related healthcare
services. An asset is classified as current when it satisfies
any of the following criteria:
The registered office of the Company is located at 250-
a) it is expected to be realised in, or is intended
D, Udyog Bhavan, Hind Cycle Marg, Worli, Mumbai.The
for sale or consumption in, the Group’s normal
Company got listed on Bombay Stock Exchange (BSE)
operating cycle;
and National Stock Exchange (NSE) on 15 April 2019
through sale of equity shares by Dr. Sushil Kanubhai Shah b) it is held primarily for the purpose of being
and CA Lotus Investments. traded;
c) it is expected to be realised within twelve
2 BASIS OF PREPARATION, MEASUREMENT AND months after the reporting date; or
SIGNIFICANT ACCOUNTING POLICIES d) it is cash or cash equivalent unless it is
2.1 Basis of preparation and measurement restricted from being exchanged or used to
a Statement of compliance: settle a liability for at least twelve months after
the reporting date.
(i) The Consolidated Balance Sheet of the Group as
at 31 March, 2020 and the Consolidated Statement Liabilities:
of Profit and Loss (including Other Comprehensive A liability is classified as current when it satisfies
Income), the Consolidated Statement of Changes any of the following criteria:
in Equity and the Consolidated Statement of Cash a) it is expected to be settled in the Group’s
flows for the year ended 31 March, 2020, summary of normal operating cycle;
significant accounting policies and other financial
b) it is held primarily for the purpose of being
information (together referred as ‘Consolidated
traded;
Financial Statements’) has been prepared under
Indian Accounting Standards (‘Ind AS’) notified c) it is due to be settled within twelve months
under Section 133 of the Companies Act, 2013 read after the reporting date; or
with the Companies (Indian Accounting Standards) d) the Group does not have an unconditional right
Rules, 2015 as amended. to defer settlement of the liability for at least
twelve months after the reporting date. Terms
The consolidated Ind AS financial Information were
of a liability that could, at the option of the
authorized for issue by the Company’s Board of
counterparty, result in its settlement by the
Directors on 29 May 2020.
issue of equity instruments do not affect its
The financial statements of all subsidiaries classification.
considered in the consolidated financial statements, Operating cycle:
are drawn upto 31 March 2020 except for Metropolis
All assets and liabilities have been classified as
Bramser Lab Services (Mtius) Limited, Metropolis
current or non-current as per the Group’s normal
Healthcare Ghana Limited, Metropolis Healthcare
operating cycle and other criteria set out in the
Tanzania Limited and Metropolis Star Lab Kenya
Schedule III to the Companies Act 2013. Based on
Limited which are drawn upto 31 December 2019.
the nature of services and the time taken between
The financial statements of Metropolis Bramser
acquisition of assets/inventories for processing and
Lab Services (Mtius) Limited, Metropolis Healthcare
their realization in cash and cash equivalents, the
Ghana Limited, Metropolis Healthcare Tanzania
Group has ascertained its operating cycle as twelve
Limited and Metropolis Star Kenya Limited are not
months for the purpose of the classification of
adjusted for the period between 31 December 2019
assets and liabilities into current and non-current.

ANNUAL REPORT 2019-20 193

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

c Functional and presentation currency Consolidated Statement of Profit and Loss in the
The functional currency of the Company and its year in which the estimates are revised and in any
Indian subsidiaries is Indian Rupees (INR), whereas future periods affected.
the functional currency of foreign subsidiaries are The areas involving critical estimates or judgements
as follows: are:
- Metropolis Star Lab Kenya Ltd – Kenya Shillings i. Assessment of functional currency (Note
(Kshs) 2.2(n))
- Metropolis Healthcare (Mauritius) Ltd - United ii. Determination of useful lives of property, plant
States Dollar (USD) and equipment and intangibles; (Note 2.2(b))
- Metropolis Bramser Lab Services (MTUIS) Ltd – iii. Impairment test of non-financial assets (Note
Mauritian Rupees (MUR) 2.2(d))
- Metropolis Healthcare Ghana Limited - iv. Recognition of deferred tax assets; (Note
Ghanaian cedi (GHC) 2.2(m))
- Metropolis Healthcare Lanka Private Limited – v. Recognition and measurement of provisions
Sri Lankan Rupees (LKR) and contingencies; (Note 2.2(h))
- Metropolis Healthcare Tanzania Limited - vi. Fair value of financial instruments (Note 2.2
Tanzanian Shilling (TZS) (e))
The presentation currency of the Group is vii. Impairment of financial assets (Note 2.2 (e))
Indian Rupees (INR). All figures appearing in the viii. Measurement of defined benefit obligations;
consolidated financial statements are rounded to (Note 2.2(k))
the nearest Lakhs, unless otherwise indicated.
ix. Fair valuation of employee share options;
d Basis of measurement (Note 2.2(k))
These financial statements have been prepared on x. Fair value measurement of consideration
accrual and going concern basis and the historical and net assets acquired as part of business
cost convention except for the following assets and combination (Note 2.2(a))
liabilities which have been measured at fair value or f Measurement of fair values
revalued amount:
Group’s accounting policies and disclosures require
• Certain financial assets and liabilities the measurement of fair values, for both financial
measured at fair value, and non-financial assets and liabilities.
• Assets and liabilities assumed on business The Group has an established control framework
combination measured at fair value with respect to the measurement of fair values
• Equity settled share-based payments (including Level 3 fair values). The Group uses
measured at fair value valuation techniques that are appropriate in the
• Net defined benefit (asset)/ liability - Fair value circumstances and for which sufficient data are
of plan assets less present value of defined available to measure fair value, maximizing the use
benefit obligations of relevant observable inputs and minimizing the
use of unobservable inputs.
e Key estimates and assumptions
In preparing these consolidated financial Fair values are categorized into different levels in a
statements, management has made judgements, fair value hierarchy based on the inputs used in the
estimates and assumptions that affect the valuation techniques as follows.
application of accounting policies and the reported Level 1: quoted prices (unadjusted) in active markets
amounts of assets, liabilities, income and expenses. for identical assets or liabilities.
Actual results may differ from these estimates.
Level 2: inputs other than quoted prices included in
Estimates and underlying assumptions are reviewed Level 1 that are observable for the asset or liability,
on an ongoing basis. Revisions to accounting either directly (i.e. as prices) or indirectly (i.e.
estimates are recognised prospectively in the derived from prices).

194 METROPOLIS HEALTHCARE LTD

 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

Level 3: inputs for the asset or liability that are not stated otherwise. Refer note 43 (a) for subsidiaries
based on observable market data (unobservable considered for consolidation.
inputs).
Non-controlling interests (NCI):
If the inputs used to measure the fair value of an NCI are measured at their proportionate share of
asset or a liability fall into different levels of the fair the acquiree’s net identifiable assets at the date of
value hierarchy, then the fair value measurement is acquisition.
categorized in its entirety in the same level of the
Profit or loss and each component of other
fair value hierarchy as the lowest level input that is
comprehensive income are attributed to the equity
significant to the entire measurement.
holders of the parents of the Group and to the non-
The Group recognizes transfers between levels of controlling interest, even if this results in the non-
the fair value hierarchy at the end of the reporting controlling interests have a deficit balances.
period during which the change has occurred.
Changes in the Group’s equity interest in a subsidiary
Further information about the assumptions made that do not result in a loss of control are accounted
in measuring fair values is included in the following for as equity transactions.
notes
When the Group loses control over a subsidiary,
- Financial instruments (Note 41) it derecognises the assets and liabilities of
- Share-based payment arrangements (Note 51 (c)) the subsidiary, and any related NCI and other
components of equity. Any interest retained in the
- Business combination (Note 44)
former subsidiary is measured at fair value at the
2.2 Significant accounting policies date the control is lost. Any resulting gain or loss is
a) Principles of consolidation recognised in profit or loss.

Subsidiaries Investment in associates and joint ventures

Subsidiaries are entities controlled by the Group. An associate is an entity over which the Group has
Control exists when the parent has power over significant influence. Significant influence is the
the entity, is exposed, or has rights, to variable power to participate in the financial and operating
returns from its involvement with the entity and policy decision of the investee, but is not control or
has the ability to affect those returns by using joint control over those policies.
its power over the entity. Power is demonstrated
A joint venture is a type of joint arrangement
through existing rights that give the ability to direct
whereby the parties that have joint control of the
relevant activities, those which significantly affect arrangement have rights to the net assets of the
the entity’s returns. The financial statements of joint ventures. Joint control is the contractually
the subsidiaries are included in the consolidated agreed sharing of control of an arrangement,
financial statements from the date on which control which exist only when decisions about the relevant
commences until the date on which the control activities required unanimous consent of the
ceases. parties sharing control.
Subsidiaries are consolidated by combining The Group’s investments in its associate and joint
like items of assets, liabilities, equity, income, ventures are accounted for using the equity method.
expenses and cash flows of the parent with those
Under the equity method, the investment in an
of its subsidiaries. The intra-company balances
associates or joint venture is initially recognized
and transactions including unrealized gain / loss
at cost. The carrying amount of the investment is
from such transactions are eliminated upon
adjusted to recognized changes in the Group’s share
consolidation.
of net assets of the associates or joint ventures
The consolidated financial statements are since the acquisition date. Goodwill relating to
prepared by adopting uniform accounting policies the associates or a joint venture is included in the
for like transactions and other events in similar carrying amount of the investment and is not tested
circumstances and are presented to the extent for impairment individually. Refer note 43 (b) & (c)
possible, in the same manner as the parent for joint ventures and associates considered for
company’s separate financial statements unless consolidation.

ANNUAL REPORT 2019-20 195

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

Business combinations be reliably measured. The carrying amount of any

In accordance with Ind AS 103, the Group accounts component accounted for as a separate asset is
for these business combinations using the derecognized when replaced. All other repair and
acquisition method when the control is transferred maintenance are charged to the statement of profit
to the Group. The consideration transferred for and loss during the reporting year in which they are
the business combinations is generally measured incurred
at fair value as at the date the control is acquired Depreciation:
(acquisition date), as are the net identifiable assets
Depreciation on property, plant and equipment,
acquired. Any goodwill that arises is tested annually
other than leasehold improvements, is provided
for impairment.
under the written down value method in the manner
Transaction costs are expensed as incurred, except prescribed under Schedule II of the Act, except in
to the extent related to the issue of equity securities the following case where the life is different than as
indicated in Schedule II of the Act which is based on
If a business combination is achieved in stages,
the technical evaluation of useful life carried out by
any previously held equity interest in the acquiree
the management:
is remeasured at its acquisition date fair value and
any resulting gain or loss is recognized in profit or
Particulars Manage- Useful
loss or OCI as appropriate.
ment's life as per
b) Property plant and equipment estimate of Schedule
Recognition and measurement: useful life II

Items of property, plant and equipment, other Laboratory Equipment's 13 years 10 years
than freehold land are measured at cost less (Plant & Equipment's) :
accumulated depreciation and any accumulated (Electrical Machinery,
impairment losses. X-ray & diagnostic
equipment's namely Cat-
Freehold land is carried at cost and is not
stan, Ultrasound , ECG
depreciated. The cost of an item of property,
monitors.)
plant and equipment comprises its purchase
price, including import duties and non-refundable Computers 6 years 3 years
purchase taxes (after deducting trade discounts Furniture and Fixtures 15 years 10 years
and rebates), any directly attributable costs of
Vehicles 10 years 8 years
bringing the asset to its working condition for its
intended use and estimated costs of dismantling Leasehold improvement are depreciated over the
and removing the item and restoring the item and tenure of lease term.
restoring the site on which it is located.
In case of foreign subsidiaries depreciation is
If significant parts of an item of property, plant provided by written down value method, based
and equipment have different useful lives, then on useful life of the respective block of assets as
they are accounted for as separate items (major prescribed by the management. The useful life of
components) of property, plant and equipment. property, plant and equipment are as below:

Any gain or loss on derecognition of an item of Laboratory equipment’s - 6 years

property, plant and equipment is included in profit Furniture and fixtures - 6 years
or loss when the item is derecognized.
Office equipment’s - 6 years
Subsequent expenditure: Computers - 3 years
Subsequent costs are included in the assets Vehicles - 3 years
carrying amount or recognized as a separate asset,
Leasehold improvements - 5 years
as appropriate only if it is probable that the future
Depreciation methods, useful lives and residual
economic benefits associated with the item will
values are reviewed at each reporting date and
flow to the Group and that the cost of the item can
adjusted if appropriate.

196 METROPOLIS HEALTHCARE LTD

 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

c) Intangible assets Value in use is based on the estimated future cash

Goodwill flows, discounted to their present value using a
pre-tax discount rate that reflects current market
Goodwill that arises on a business combination
assessments of the time value of money and the
is subsequently measured at cost less any
risks specific to the asset (or CGU).
accumulated impairment losses.
An impairment loss is recognised if the carrying
Other Intangible assets:
amount of an asset or CGU exceeds its estimated
Intangible assets acquired separately are measured recoverable amount. Impairment losses are
on initial recognition at cost. The cost of intangible recognised in the statement of profit and loss.
assets acquired in a business combination is their An impairment loss in respect of goodwill is not
fair value at the date of acquisition. subsequently reversed. In respect of other assets
Following initial recognition, intangible assets are for which impairment loss has been recognised in
carried at cost less accumulated amortisation prior periods, the Group reviews at each reporting
and any accumulated impairment losses. date whether there is any indication that the loss has
Internally generated intangibles, excluding eligible decreased or no longer exists. An impairment loss is
development costs are not capitalized and the reversed if there has been a change in the estimates
related expenditure is reflected in the statement of used to determine the recoverable amount. Such a
profit and loss in the period in which the expenditure reversal is made only to the extent that the asset’s
is incurred. carrying amount does not exceed the carrying
amount that would have been determined, net of
Amortization
depreciation or amortisation, if no impairment loss
Goodwill is not amortised and is tested for had been recognised.
impairment annually.
e) Financial Instruments
Amortization is calculated to write off the cost
A financial instrument is any contract that gives
of intangible assets less their estimated residual
rise to a financial asset of one entity and a financial
values using the straight-line method over their
liability or equity instrument of another entity.
estimated useful lives, and is recognized in profit or
Financial instruments also include derivative
loss.
contracts.
The estimated useful lives for current and
Financial assets
comparative year are as follows:
Initial recognition and measurement
Computer software - 5 years
Financial assets are initially recognized when the
Brand - 10 years Group becomes a party to the contractual provisions
of the instrument. All financial assets other than
Customer relationship - 5 years
those measured subsequently at fair value through
Amortisation method, useful lives and residual profit and loss, are recognized initially at fair value
values are reviewed at the end of each financial year plus transaction costs that are attributable to the
and adjusted if appropriate. acquisition of the financial asset.
d) Impairment of non-financial assets Subsequent measurement
The Group’s non-financial assets, other than For the purpose of subsequent measurement,
inventories and deferred tax assets, are reviewed at financial assets are classified in four categories:
each reporting date to determine whether there is
• Amortized cost,
any indication of impairment. If any such indication
exists, then the asset’s recoverable amount is • Fair value through profit (FVTPL)
estimated.
• Fair value through other comprehensive
The recoverable amount of an individual asset income (FVTOCI)
(or where applicable, that of cash generating unit
on the basis of its business model for managing
(CGU) to which the asset belongs) is the higher of
the financial assets and the contractual cash flow
its value in use and its fair value less costs to sell.
characteristics of the financial asset

ANNUAL REPORT 2019-20 197

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

Amortized cost : The contractual rights to receive cash flows

A financial instrument is measured at the amortized from the financial asset have expired, or
cost if both the following conditions are met: The Group has transferred its rights to receive cash
flows from the asset or has assumed an obligation
The asset is held within a business model
to pay the received cash flows in full without
whose objective is to hold assets for
material delay to a third party under a ‘pass-through’
collecting contractual cash flows, and
arrangement; and either
contractual terms of the asset give rise on specified
dates to cash flows that are solely payments of - (a) the Group has transferred substantially all
principal and interest (SPPI) on the principal amount the risks and rewards of the asset, or
outstanding.
- (b) the Group has neither transferred nor
After initial measurement, such financial assets are retained substantially all the risks and rewards
subsequently measured at amortised cost using of the asset, but has transferred control of the
the effective interest rate (EIR) method. asset.
Fair value through profit and loss (‘FVTPL’): On de-recognition, any gains or losses on all debt
All financial assets that do not meet the criteria instruments (other than debt instruments measured
for amortised cost or fair value through other at FVOCI) and equity instruments (measured
comprehensive income are measured at fair value at FVTPL) are recognized in the Consolidated
through profit or loss with all changes recognized Statement of Profit and Loss. Gains and losses in
in the Consolidated Statement of Profit and respect of debt instruments measured at FVOCI
Loss. Interest (basis EIR method) income from and that are accumulated in OCI are reclassified to
financial assets at fair value through profit or loss profit or loss on de-recognition.
is recognised in the consolidated statement of
profit and loss within finance income/ finance costs Impairment of financial assets
separately from the other gains/ losses arising from In accordance with Ind-AS 109, the Group
changes in the fair value. applies Expected Credit Loss (“ECL”) model for
measurement and recognition of impairment loss
Fair value through Other Comprehensive Income
on the financial assets measured at amortized cost
(‘FVOCI’)
and debt instruments measured at FVOCI.
Financial assets are measured at FVOCI if both the
following conditions are met: Trade receivables

The asset is held within a business model whose The Company reviews its trade receivables to
objective is achieved by both assess impairment at regular intervals. The Group’s
credit risk is primarily attributable to its trade
- collecting contractual cash flows and selling receivables. In determining whether impairment
financial assets and losses should be reported in the statement of profit
- contractual terms of the asset give rise on and loss, the Group makes judgments as to whether
specified dates to cash flows that are SPPI on there is any observable data indicating that there is
the principal amount outstanding. a measurable decrease in the estimated future cash
flows. Accordingly, an allowance for expected credit
After initial measurement, these assets are
loss is made where there is an identified loss event
subsequently measured at fair value. Dividends,
or condition which, based on previous experience,
Interest income under effective interest method,
foreign exchange gains and losses and impairment is evidence of a reduction in the recoverability of
losses are recognized in the consolidated statement the cash flows.
of Profit and Loss. Other net gains and losses are Impairment of financial instruments (other than at
recognized in other comprehensive Income. fair value)
Derecognition The Company assesses on a forward-looking
A financial asset (or, where applicable, a part of basis the expected credit loss associated with its
a financial asset or a part of a group of similar assets carried at amortised cost and FVTOCI debt
financial assets) is primarily derecognized (i.e. instruments. The impairment methodology applied
removed from the Group’s balance sheet) when: depends on whether there has been a significant

198 METROPOLIS HEALTHCARE LTD

 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

increase in credit risk. For trade receivables only, the recognition of a new liability. The difference in the
Group applies the simplified approach permitted by respective carrying amounts is recognized in the
Ind AS 109 - Financial Instruments, which requires consolidated statement of profit or loss.
expected lifetime losses to be recognised from
Offsetting of financial instruments
initial recognition of the receivables.
Financial assets and financial liabilities are offset
Financial Liabilities
and the net amount is reported in the balance
Initial recognition and measurement sheet if there is a currently enforceable legal right
Financial liabilities are initially recognized when to offset the recognized amounts and there is an
the Group becomes a party to the contractual intention to settle on a net basis, or to realize the
provisions of the instrument. assets and settle the liabilities simultaneously.

Financial liability is initially measured at fair value f) Inventories

plus, for an item not at fair value through profit and Inventories comprise of reagents, chemicals,
loss, transaction costs that are directly attributable diagnostic kits, medicines and consumables.
to its acquisition or issue. Inventories are valued at lower of cost and net
Subsequent measurement realizable value. Cost is determined by weighted
average cost method. Cost of inventories comprises
Subsequent measurement is determined with
cost of purchase and other costs incurred in
reference to the classification of the respective
bringing the inventories to their present condition
financial liabilities.
and location. The comparison of cost and net
Financial Liabilities at Fair Value through Profit or realisable value is made on an item-by-item basis.
Loss (FVTPL):
g) Cash and Cash Equivalents
A financial liability is classified as Fair Value
Cash and cash equivalents in the Balance Sheet and
through Profit or Loss (FVTPL) if it is classified
cash flow statement includes cash at bank, cash,
as held-for trading or is designated as such on
cheque, draft on hand and demand deposits with an
initial recognition. Financial liabilities at FVTPL
original maturity of less than three months, which
are measured at fair value and changes therein,
are subject to an insignificant risk of changes in
including any interest expense, are recognised in
value.
consolidated statement of Profit and Loss.
h) Provisions, Contingent Liabilities and Contingent
Financial Liabilities at amortized cost:
Assets
After initial recognition, financial liabilities other
A provision is recognized when the enterprise has a
than those which are classified as FVTPL are
present obligation (legal or constructive) as a result
subsequently measured at amortized cost using the
of a past event and it is probable that an outflow
effective interest rate (“EIR”) method.
of resources embodying economic benefits will
Amortized cost is calculated by taking into account be required to settle the obligation, in respect of
any discount or premium and fees or costs that are which a reliable estimate can be made. These are
an integral part of the EIR. reviewed at each balance sheet date and adjusted
to reflect the current management estimates.
The amortization done using the EIR method is
included as finance costs in the Consolidated If the effect of the time value of money is material,
Statement of Profit and Loss provisions are determined by discounting the
expected future cash flows specific to the liability.
Derecognition
The unwinding of the discount is recognized as
A financial liability is derecognized when the
finance cost.
obligation under the liability is discharged or
cancelled or expires. When an existing financial Contingent Liabilities are disclosed in respect of
liability is replaced by another from the same lender possible obligations that arise from past events but
on substantially different terms, or the terms of their existence is confirmed by the occurrence or
an existing liability are substantially modified, non-occurrence of one or more uncertain future
such an exchange or modification is treated as events not wholly within the control of the Group.
the derecognition of the original liability and the

ANNUAL REPORT 2019-20 199

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

A contingent asset is a possible asset that arises Dividend income

from past events and whose existence will be Dividends are recognised in the statement of profit
confirmed only by the occurrence or non-occurrence and loss on the date on which the Group’s right to
of one or more uncertain future events not wholly receive payment is established.
within the control of the entity. Contingent assets
are not recognized till the realization of the income k) Employee Benefits
is virtually certain. However the same are disclosed (i) Short-term Employee benefits
in the consolidated financial statements where an Liabilities for wages and salaries, bonus,
inflow of economic benefit is probable. compensated absences and ex gratia including
i) Revenue Recognition non-monetary benefits that are expected to
be settled wholly within twelve months after
Revenue is recognised at an amount that reflects
the end of the period in which the employees
the consideration to which the Group expects to
render the related service are classified
be entitled in exchange for transferring the goods
as short term employee benefits and are
or services to a customer i.e. on transfer of control
recognized as an expense in the consolidated
of the service to the customer. Revenue from sales
of goods or rendering of services is net of indirect statement of profit and loss as the related
taxes, returns and discounts; service is provided.

Revenue comprise of revenue from providing A liability is recognized for the amount
healthcare services such as health checkup and expected to be paid if the Group has a present
laboratory services. Pathology service is the only legal or constructive obligation to pay this
principal activity and reportable segment from amount as a result of past service provided
which the Group generates its revenue. by the employee and the obligation can be
estimated reliably.
Revenue is recognised once the testing samples are
processed for requisitioned test, to the extent that (ii) Share-based payments
it is probable that the economic benefits will flow to The cost of equity settled transactions is
the Group and revenue can be reliably measured. determined by the fair value at the grant date
which is based on the Black Scholes model.
Contract liabilities: A contract liability is the
The grant date fair value of options granted
obligation to transfer services to a customer for
to employees is recognized as an employee
which the Group has received consideration from the
customer. If a customer pays consideration before expense, with a corresponding increase
the Group transfers services to the customer, a in equity under “Employee Stock Options
contract liability is recognised when the payment is Reserve”, over the period that the employees
made. Contract liabilities are recognised as revenue become unconditionally entitled to the
when the Group performs under the contract. options.

j) Other income The expense so determined is recognised

over the requisite vesting period, which is the
Interest income
period over which all of the specified vesting
For all debt instruments measured at amortized conditions are to be satisfied. As at each
cost, interest income is recorded using the effective
reporting date, the Group revises its estimates
interest rate (EIR). EIR is the rate which exactly
of the number of options that are expected to
discounts the estimated future cash receipts over
vest, if required.
the expected life of the financial instrument to
the gross carrying amount of the financial asset. When the terms of an equity-settled award are
When calculating the EIR the Group estimates modified, in addition to the expense pertaining
the expected cash flows by considering all the to the original award, an incremental expense
contractual terms of the financial instrument (for is recognised for any modification that
example, prepayments, extensions, call and similar results in additional fair value, or is otherwise
options); expected credit losses are considered beneficial to the employee as measured at the
if the credit risk on that financial instrument has date of modification.
increased significantly since initial recognition.

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STATUTORY REPORTS
FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

(iii) Post-Employment Benefits its leases with the cumulative impact recognised
Defined Contribution Plans: on the date of initial application (1 April, 2019).
Accordingly, previous period information has not
A defined contribution plan is a post-
been restated.
employment benefit plan under which a Group
pays specified contributions to a separate The Group’s lease asset classes primarily consist of
entity and has no obligation to pay any further leases for premises. The Group assesses whether
amounts. The Group makes contribution to a contract is or contains a lease, at inception
provident fund in accordance with Employees of a contract. A contract is, or contains, a lease
Provident Fund and Miscellaneous Provisions if the contract conveys the right to control the
Act, 1952 and Employee State Insurance. use of an identified asset for a period of time in
Contribution paid or payable in respect of exchange for consideration. To assess whether
defined contribution plan is recognized as a contract conveys the right to control the use
an expense in the year in which services are of an identified asset, the Group assesses whether:
rendered by the employee.
(i) the contract involves the use of an identified
Defined Benefit Plans: asset
The Group’s gratuity benefit scheme is a (ii) the Group has substantially all of the economic
defined benefit plan. The liability is recognised benefits from use of the asset through the
in the balance sheet in respect of gratuity is the period of the lease and
present value of the defined benefit/obligation
at the balance sheet date less the fair value of (iii) the Group has the right to direct the use of the
plan assets (being funded portion), together asset
with adjustments for unrecognised actuarial At the date of commencement of the lease, the
gain losses and past service costs. The defined Group recognises a right-of-use asset (“ROU”)
benefit/obligation are calculated at balance and a corresponding lease liability for all lease
sheet date by an independent actuary using arrangements in which it is a lessee, except for
the projected unit credit method. Certain leases with a term of twelve months or less (short
subsidiaries of the Group, have their gratutiy term leases) and leases of low value assets. For
plan funded and makes annual contribution to these short term and leases of low value assets,
the fund based on the expected requirement. the Group recognises the lease payments as an
Re-measurement of the net defined benefit operating expense on a straightline basis over the
liability, which comprise actuarial gains and term of the lease.
losses, the return on plan assets (excluding The right-of-use assets are initially recognised at
interest) and the effect of the asset ceiling cost, which comprises the initial amount of the
(if any, excluding interest), are recognised lease liability adjusted for any lease payments made
immediately in other comprehensive income at or prior to the commencement date of the lease
(OCI). plus any initial direct costs less any lease incentives.
In case of the foreign entities retirement They are subsequently measured at cost less
benefits wherever required have been provided accumulated depreciation and impairment losses,
by the respective foreign companies as per if any. Right-of-use assets are depreciated from the
local laws/ practice. In case of Metropolis commencement date on a straight-line basis over
Healthcare Lanka Private Limited , the defined the shorter of the lease term and useful life of the
benefit/obligation are calculated at the underlying asset.
balance sheet date by an independent actuary The lease liability is initially measured at the present
using the projected unit credit method. value of the future lease payments. The lease
l) Leases payments are discounted using the interest rate
implicit in the lease or, if not readily determinable,
The Group has adopted Ind AS 116-Leases effective
using the incremental borrowing rates. The lease
1 April, 2019, using the modified retrospective
liability is subsequently remeasured by increasing
method. The Group has applied the standard to

ANNUAL REPORT 2019-20 201

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

the carrying amount to reflect interest on the lease allow the benefit of part or all of that deferred tax
liability, reducing the carrying amount to reflect the asset to be utilized such reductions are reversed
lease payments made. when it becomes probable that sufficient taxable
profits will be available.
A lease liability is remeasured upon the occurrence
of certain events such as a change in the lease term Unrecognized deferred tax assets are reassessed
or a change in an index or rate used to determine at each reporting date and recognized to the extent
lease payments. The remeasurement normally also that it has become probable that future taxable
adjusts the leased asset. profits will be available against which they can be
recovered.
Lease liability and ROU asset have been separately
presented in the Balance Sheet and lease payments Deferred tax is measured at the tax rates that are
have been classified as financing cash flows. expected to be applied to temporary differences
when they reverse, using tax rates enacted or
m) Income-tax
substantively enacted by the end of the reporting
Income tax expense /income comprises current tax year.
expense /income and deferred tax expense /income.
It is recognized in profit or loss except to the extent Deferred tax liabilities are not recognised for
that it relates to items recognized directly in equity temporary differences between the carrying
or in Other Comprehensive Income. In which case, amount and tax base of investments in subsidiaries,
the tax is also recognized directly in equity or other branches, associates and interest in joint
comprehensive income, respectively. arrangements where the Group is able to control the
timing of the reversal of the temporary differences
Current Tax and it is probable that the differences will not
Current tax comprises the expected tax payable reverse in the foreseeable future.
or recoverable on the taxable profit or loss for
The measurement of deferred tax assets and
the year and any adjustment to the tax payable
liabilities reflects the tax consequences that would
or recoverable in respect of previous years. It is
follow from the manner in which the Group expects,
measured at the amount expected to be paid to
at the reporting date, to recover or settle the
(recovered from) the taxation authorities using the
carrying amount of its assets and liabilities.
applicable tax rates and tax laws.
Deferred tax assets and liabilities are offset only if:
• Current tax assets and liabilities are offset only
if, the Group has a legally enforceable right to i) the entity has a legally enforceable right to
set off the recognized amounts; and set off current tax assets against current tax
liabilities; and
• intends either to settle on a net basis, or
to realize the asset and settle the liability ii) the deferred tax assets and the deferred tax
simultaneously. liabilities relate to income taxes levied by the
same taxation authority on the same taxable
Deferred Tax
entity.
Deferred tax is recognized in respect of temporary
differences between the carrying amount of assets n) Foreign currency
and liabilities for financial reporting purpose and Foreign currency transactions:
the amount considered for tax purpose. Foreign currency transactions are recorded on
Deferred tax assets are recognized for unused initial recognition in the functional currency using
tax losses, unused tax credits and deductible the exchange rate at the date of the transaction.
temporary differences to the extent that it is Monetary assets and liabilities denominated in
probable that future taxable profits will be available foreign currencies are translated into the functional
against which they can be utilized. Deferred tax currency at the exchange rate at the reporting
assets are reviewed at each reporting date and are date. Non-monetary items that are measured
reduced to the extent that it is no longer probable based on historical cost in a foreign currency are
that sufficient taxable profit will be available to translated using the exchange rate at the date of

202 METROPOLIS HEALTHCARE LTD

 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

the initial transaction. Non-monetary items that p) Earnings per share:

are measured at fair value in a foreign currency are Basic Earnings per share is calculated by dividing
translated using the exchange rate at the date the the profit or loss for the year attributable to the
fair value is determined. equity shareholders by the weighted average
Exchange differences arising on the settlement number of equity shares outstanding during the
or translation of monetary items are recognized in year.
profit or loss in the year in which they arise except For the purpose of calculating diluted earnings per
exchange differences arising from the translation of share, the profit or loss for the period attributable to
items which are recognised in other comprehensive the equity shareholders and the weighted average
income. number of equity shares outstanding during the
Foreign operations: period is adjusted to take into account:

The assets and liabilities of foreign operations • The after income tax effect of interest and
(subsidiaries) including goodwill and fair value other financing costs associated with dilutive
adjustments arising on acquisition, are translated potential equity shares, and
into Indian Rupees, the functional currency of the
• Weighted average number of additional equity
Group, at the exchange rates at the reporting date.
shares that would have been outstanding
The income and expenses of foreign operations are
assuming the conversion of all dilutive
translated into Indian Rupees at the exchange rates
potential equity shares.
at the dates of the transactions or an average rate if
the average rate approximates the actual rate at the q) Segment Reporting
date of the transaction Operating segments are reported in a manner
When a foreign operation is disposed of in its consistent with the internal reporting provided
entirety or partially such that control, significant to the chief operating decision maker (CODM) as
influence or joint control is lost, the cumulative defined in Ind AS-108 ‘Operating Segments’ for
amount of exchange differences related to that allocating resources and assessing performance.
foreign operation recognised in OCI is reclassified The Group operates in one reportable business
to profit or loss as part of the gain or loss on segment i.e. “Pathology services”.Further the
disposal. If the Group disposes of part of its interest geographic segments are not applicable since
in a subsidiary but retains control, then the relevant assets are only in India.
proportion of the cumulative amount is re-allocated Refer note 52 in the financial statements for
to NCI. When the Group disposes of only a part of additional disclosures on segment reporting.
its interest in an associate or a joint venture while
r) Recent Indian Accounting Standards (Ind AS)
retaining significant influence or joint control, the
relevant proportion of the cumulative amount is Ministry of Corporate Affairs (“MCA”) notifies new
reclassified to profit or loss. standards or amendments to the existing standards.
There is no such notification which would have been
o) Dividend applicable from 1 April 2020.
The Group recognizes a liability for any dividend
s) Rounding of amounts
declared but not distributed at the end of the
reporting year, when the distribution is authorized All amounts in the financial statement and
and the distribution is no longer at the discretion of accompanying notes are presented in Lakhs and
the Group on or before the end of the reporting year. have been rounded-off to two decimal place unless
stated otherwise.

ANNUAL REPORT 2019-20 203

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

3. PROPERTY, PLANT AND EQUIPMENT

Changes in the carrying value of property, plant and equipment for the year ended 31 March 2020:

(` in Lakhs)
Particulars Free- Building Leasehold Furniture Laborato- Office Com- Vehicles Total
hold land improve- & fixtures ry equip- equip- puters
ment ments ment
Cost as at 1 April 2019 1,035.40 5,274.98 575.62 1,654.80 5,321.88 1,293.30 1,080.78 369.52 16,606.28
Additions during the year - - 201.51 225.93 1,488.30 348.86 131.36 9.31 2,405.27
Disposals during the year - (4.92) (27.19) (35.53) (682.30) (211.98) (295.16) (0.96) (1,258.04)
Exchange differences - (4.00) 1.78 2.11 (6.85) (0.84) 0.52 (1.97) (9.25)
on translation of foreign
operations
Cost as at 31 March 2020 (A) 1,035.40 5,266.06 751.72 1,847.31 6,121.03 1,429.34 917.50 375.90 17,744.26
Accumulated depreciation as - 731.94 312.11 632.89 1,830.55 662.27 619.14 150.24 4,939.14
at 1 April 2019
Depreciation charged during - 227.69 138.30 168.78 828.88 258.24 178.07 56.21 1,856.17
the year
Disposals during the year - - (26.20) (31.28) (625.89) (200.54) (287.27) (0.53) (1,171.71)
Exchange differences - (0.57) 0.31 0.84 0.49 (0.09) 0.52 (0.46) 1.04
on translation of foreign
operations
Accumulated depreciation - 959.06 424.52 771.23 2,034.03 719.88 510.46 205.46 5,624.64
as at 31 March 2020 (B)
Net carrying amount as at 31 1,035.40 4,307.00 327.20 1,076.08 4,087.01 709.46 407.04 170.44 12,119.62
March 2020 (A) - (B)

Changes in the carrying value of property, plant and equipment for the year ended 31 March 2019:

(` in Lakhs)
Particulars Free- Building Leasehold Furniture Laborato- Office Com- Vehicles Total
hold land improve- & fixtures ry equip- equip- puters
ment ments ment
Cost as at 1 April 2018 1,035.40 5,258.48 445.32 1,531.46 4,001.00 1,124.72 851.11 310.96 14,558.45
Additions during the year - 23.22 128.80 118.41 1,358.00 167.08 229.57 89.05 2,114.13
Disposals during the year - (3.96) - (2.24) (46.67) - (2.93) (30.72) (86.52)
Exchange differences - (2.76) 1.50 7.17 9.55 1.50 3.03 0.23 20.22
on translation of foreign
operations
Cost as at 31 March 2019 (A) 1,035.40 5,274.98 575.62 1,654.80 5,321.88 1,293.30 1,080.78 369.52 16,606.28
Accumulated depreciation as - 493.47 179.04 456.65 1,200.46 446.29 436.21 116.69 3,328.81
at 1 April 2018
Depreciation charged during - 239.12 132.91 175.92 664.69 215.75 183.80 57.29 1,669.48
the year
Disposals during the year - (0.25) - (1.20) (35.69) - (2.26) (23.65) (63.05)
Exchange differences - (0.40) 0.16 1.52 1.09 0.23 1.39 (0.09) 3.90
on translation of foreign
operations
Accumulated depreciation - 731.94 312.11 632.89 1,830.55 662.27 619.14 150.24 4,939.14
as at 31 March 2019 (B)
Net carrying amount as at 31 1,035.40 4,543.04 263.51 1,021.91 3,491.33 631.03 461.64 219.28 11,667.14
March 2019 (A) - (B)

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 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

4. INTANGIBLE ASSETS

Changes in the carrying value of intangibles for the year ended 31 March 2020:

(` in Lakhs)
Particulars Goodwill Total Other Intangible Assets
Computer Brand Customer Total other
Software name Relationships intangible
assets
Cost as at 1 April 2019 8,130.07 8,130.07 912.46 1,170.00 311.00 2,393.46
Additions during the year 1,173.90 1,173.90 702.32 285.51 210.04 1,197.87
Disposals during the year - - - - - -
Exchange differences on translation of foreign 5.81 5.81 (0.00)^ - - -
operations
Cost as at 31 March 2020 (A) 9,309.78 9,309.78 1,614.78 1,455.51 521.04 3,591.33
Accumulated amortisation as at 1 April 2019 274.99 274.99 246.51 253.50 134.77 634.78
Amortisation recognised for the year - - 225.48 131.28 83.19 439.95
Disposals during the year - - - - - -
Exchange differences on translation of foreign - - (0.23) - - (0.23)
operations
Accumulated amortisation as at 31 March 2020(B) 274.99 274.99 471.76 384.78 217.96 1,074.50
Net carrying amount as at 31 March 2020 (A) - (B) 9,034.79 9,034.79 1,143.03 1,070.73 303.08 2,516.83

^ Amount is below ` 500

Changes in the carrying value of intangibles for the year ended 31 March 2019:

(` in Lakhs)
Particulars Goodwill Total Other Intangible Assets
Computer Brand Customer Total other
Software name Relationships intangible
assets
Cost as at 1 April 2018 8,111.89 8,111.89 493.93 1,170.00 311.00 1,974.93
Additions during the year - - 418.50 - - 418.50
Disposals during the year - - - - - -
Exchange differences on translation of foreign 18.18 18.18 0.03 - - 0.03
operations
Cost as at 31 March 2019 (A) 8,130.07 8,130.07 912.46 1,170.00 311.00 2,393.46
Accumulated amortisation as at 1 April 2018 274.99 274.99 88.56 136.50 72.57 297.63
Amortisation recognised for the year - - 157.93 117.00 62.20 337.13
Exchange differences on translation of foreign - - 0.02 - - 0.02
operations
Accumulated amortisation as at 31 March 2019 (B) 274.99 274.99 246.51 253.50 134.77 634.78
Net carrying amount as at 31 March, 2019 (A) - (B) 7,855.08 7,855.08 665.95 916.50 176.23 1,758.68

Impairment
Carrying amount of goodwill which is allocated to the pathology division as at 31 March 2020 is ` 9,034.79 Lakhs (31 March 2019 is `
7,855.08 Lakhs). This goodwill is acquired on account of business acquisition and on consolidation of subsidiaries.

For the purpose of impairment testing, goodwill acquired in a business combination is allocated to the cash generating units (CGU),
which benefit from the synergies of the acquisition.

ANNUAL REPORT 2019-20 205

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

(` in Lakhs)
Entity 31 March 2020 31 March 2019
Metropolis Healthcare Limited 4,880.90 4,880.90
Sudharma Metropolis Health Services Private Limited 57.70 57.70
Desai Metropolis Health Services Private Limited* 2,010.83 836.93
R.V. Metropolis Diagnostic & Health Care Center Private Limited 258.83 258.83
Micron Metropolis Healthcare Private Limited 319.96 319.96
Dr. Patel Metropolis Healthcare Private Limited 90.71 90.71
Raj Metropolis Healthcare Private Limited 30.37 30.37
Lab One Metropolis Healthcare Services Private Limited 278.31 278.31
Metropolis Bramser Lab Services (Mtius) Limited 0.06 0.06
Metropolis Healthcare Ghana Limited 41.76 41.76
Metropolis Healthcare (Mauritius) Limited 1.80 1.80
Metropolis Star Lab Kenya Limited 283.77 277.96
Amins Pathology Laboratory Private Limited 588.20 588.20
Ekopath Metropolis Lab Services Private Limited 44.04 44.04
Bokil Golwilkar Metropolis Healthcare Private Limited 147.55 147.55
Total 9,034.79 7,855.08
* Note : During the year,the Company has acquired Four Laboratories through a business purchase agreement (refer note : 44 (ix))

The recoverable amount of a CGU is based on its value in use. The value in use is estimated using discounted cash flows over a
period of 5 years. We believe 5 years to be most appropriate time scale over which to review and consider annual performance
before applying a fix terminal value multiple to year end cash flow.

Operating margins and growth rates for the five year cash flow projections have been estimated based on past experience and
after considering the financial budgets/ forecasts approved by management. Other key assumptions used in the estimation of the
recoverable amount are set out below. The values assigned to the key assumptions represent management’s assessment of future
trends in the relevant industries and have been based on historical data from both external and internal sources.

Key assumptions used in the value-in-use calculations

Assumptions How determined

Budgeted EBITDA growth rate Budgeted EBITDA has been based on past experience adjusted for the following:
- Revenue in the diagnostic service is expected to grow on account of changing
lifestyle and food habit. Revenue and EBIDTA are factored by focused approach
towards B2C division, network expansion , operational efficiencies and automation.
Terminal value growth rate Long‑term growth rate used for the purpose of calculation of terminal value has been
determined by taking into account nature of business , long term inflation expectation
and long term GDP expectation for the Indian economy.
Pre-tax risk adjusted discount rate The discount rate applied to the cash flows of each of the Group’s operations is
generally based on the risk free rate for ten year bonds issued by the government in
India. These rates are adjusted for a risk premium to reflect both the increased risk of
investing in equities and the systematic risk of the Group.

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Pre tax risk adjusted discount rate 12.00% 12.50%
Terminal value growth rate 5.00% 6.00%
Budgeted EBITDA growth rate 5% - 15% 15-20%

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STATUTORY REPORTS
FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

These assumptions are reviewed annually as part of management’s budgeting and strategic planning cycles. These estimates may
differ from actual results. The values assigned to each of the key assumptions reflect the Management’s past experience as their
assessment of future trends, and are consistent with external / internal sources of information.

As at 31 March 2020, the estimated receivable amount of CGU exceeds its carrying amount and accordingly , no impairment was
recognised.

The Group has also performed sensitivity analysis calculations on the projections used and discount rate applied. Given the
significant headroom that exists, and the results of the sensitivity analysis performed, it is concluded that there is no significant
risk that reasonable changes in any key assumptions would cause the carrying value of goodwill to exceed its value in use.

5. EQUITY ACCOUNTED INVESTEES

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Investment in joint ventures
Metropolis Histoxpert Digital Services Private Limited - 51.98
1,950,000 (31 March 2019: 6,500) Equity shares of Face value of ` 10 each (Fully paid up)
- 51.98
Investment in Associates
Star Metropolis Health Services Middle East LLC, Dubai - 129.85
1,020 (31 March 2019: 1,020) Equity shares of AED of 1,000 each (Fully Paid up) (Refer
note 46)
- 129.85
Total value of investments - 181.83
Less : Provision for impairment -Star Metropolis Health Services Middle East LLC, (129.85)
Dubai
Total - 51.98

6. NON-CURRENT INVESTMENTS

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Unquoted equity shares at Fair Value through Other comprehensive income
Centre for Digestive and Kidney Disease Private Limited 175.00 175.00
1,750,000 (31 March 2019: 1,750,000) Equity shares (Face value of ` 10 each fully paid
up)
Textiles Traders Co-operative Bank Limited 0.28 0.28
1,100 (31 March 2019: 1,100) Equity shares (Face value of ` 25 each fully paid up)
Unquoted equity shares at cost
Star Metropolis Health Services Middle East LLC, Dubai 129.85 -
1,020 (31 March 2019: 1,020) Equity shares of AED of 1,000 each (Fully Paid up) (Refer
note 46)
Total 305.12 175.28
Less : Provision for impairment - Star Metropolis Health Services Middle East LLC, 129.85 -
Dubai (Refer note 46)
Total Investment in Others 175.28 175.28
The aggregate amount and market value of quoted and unquoted non-current
investments are as follows:
Aggregate amount of unquoted investments 305.12 175.28
Aggregate amount of impairment in value of investments 129.85 -

ANNUAL REPORT 2019-20 207

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

7. NON-CURRENT LOANS (UNSECURED,CONSIDERED GOOD)

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Security deposits 540.72 329.29
Other advances 5.97 91.36
546.70 420.65
(Unsecured,considered doubtful)
Security deposits
- significant increase in credit risk - -
- credit impaired 86.28 61.08
86.28 61.08
Less : Provision for advances having significant increase in credit risk - -
Less : Provision for advances which are credit impaired (86.28) (61.08)
Total 546.70 420.65

8. OTHER NON-CURRENT FINANCIAL ASSETS (UNSECURED,CONSIDERED GOOD)

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Fixed Deposits with banks^ 1,165.34 1,019.90
Other advances 74.00 -
Total 1,239.34 1,019.90
^ Includes ` 1,106.78 Lakhs (31 March 2019: ` 1,009.40 Lakhs) of fixed deposits pledged against bank guarantee.

9. OTHER NON-CURRENT ASSETS (UNSECURED, CONSIDERED GOOD)

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Capital advances 602.51 131.84
Prepaid expenses 34.21 23.17
636.72 155.01
(Unsecured,considered doubtful)
Capital advances
- significant increase in credit risk - -
- credit impaired 34.86 -
34.86 -
Less : Provision for advances having significant increase in credit risk - -
Less : Provision for advances which are credit impaired (34.86) -
Total 636.72 155.01

10. NON-CURRENT TAX ASSETS (NET)

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Advance taxes (net of provision for taxes - 31 March 2020: ` 15,092.93 Lakhs, 31 March 1,593.19 745.06
2019: ` 13,721.42 Lakhs)
Total 1,593.19 745.06

208 METROPOLIS HEALTHCARE LTD

 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

11. INVENTORIES (AT LOWER OF COST AND NET REALISABLE VALUE)

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Raw materials (Reagents, chemicals, diagnostic kits, medicines and consumables) 2,428.23 2,604.97
Traded Goods 11.84 5.26
Total 2,440.07 2,610.23

12. CURRENT INVESTMENTS

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
(Non-trade, Unquoted at Fair Value through Profit or Loss)
Investments in mutual funds
Birla Sun Life Cash Plus Growth - 7,473.38 (31 March 2019 - 7,473.38) Units of Face 23.74 22.35
Value ` 100 each
Birla Sunlife Life Income Plus (Growth) - 192,079 (31 March 2019 - 192,079) Units of Face 173.04 155.92
Value ` 100 each
BNP Paribas Bond Fund Growth - NIL (31 March 2019 - 12,29,791) Units of Face Value ` - 285.54
10 each
BNP Paribas Short Term Income Fund - Growth - NIL (31 March 2019 - 107,428) Units - 22.86
of Face Value ` 100 each
DSP BlackRock Liquidity Fund- Growth - 12,642 (31 March 2019 - 30,547) Units of Face 356.78 812.11
Value ` 1000 each
DSP - Low Duration Fund Reg (G) - NIL (31 March 2019 - 37,66,707 ) Units of Face Value - 512.04
` 10 each
HDFC cash Management Fund Growth- 319 (31 March 2019 -319) Units of Face Value ` 13.31 12.39
10 each
HDFC High Interest Dynamic Plan - Growth -NIL (31 March 2019 - 123,045) Units of - 74.24
Face Value ` 100 each
ICICI Prudential Flexible Income Plan G- 30,895 (31 March 2019 - 92,546) Units of Face 119.67 331.99
Value ` 100 each
ICICI Prudential Flexible Income - Daily Dividend - 52,818 (31 March 2019 - 3,17,096) 204.59 335.42
Units of Face Value ` 100 each
ICICI P Saving Fund G - 37,239 (31 March 2019: Nil ) Units of ` 100 each 144.25 -
IDFC Super Saver Income Fund - Investment Plan - Growth - 247,116 (31 March 2019 - 84.38 77.16
247,116) Units of Face Value ` 100 each
Kotak Bond Plan A (Growth) - 242,270 (31 March 2019 - 242,270) Units of Face Value ` 136.85 123.12
100 each
1,256.61 2,765.14
(Non-trade, Unquoted at Fair Value through Other Comprehensive Income)
ii) Investments in Commercial Papers
Infrastructure Leasing & Financial Services Limited - 100 (31 March 2019 - 100 ) Units 480.68 480.68
of Face Value ` 500,000 each
480.68 480.68
Less : Provision for impairment (480.68) (144.20)
- 336.48
Total 1,256.61 3,101.62

ANNUAL REPORT 2019-20 209

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
The aggregate amount and market value of quoted and unquoted non-current
investments are as follows:
Aggregate amount of quoted investments - -
Aggregate market value of quoted investments - -
Aggregate amount of unquoted investments 1,737.29 3,245.83
Aggregate amount of impairment in value of investments 480.68 144.20

13. TRADE RECEIVABLES

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Unsecured considered good* 12,824.78 13,684.78
Unsecured - significant increase in credit risk - -
Unsecured - credit impaired 6,170.73 2,707.38
18,995.51 16,392.16
Less: Provision for debts having significant increase in credit risk - -
Less: Provision for debts which are credit impaired (6,170.73) (2,707.38)
Total 12,824.78 13,684.78

*It includes amount receivable from related parties [Refer note 42]

14. CASH AND CASH EQUIVALENTS

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Balances with banks
- in current accounts 10,000.57 4,446.02
- in EEFC account 56.03 0.62
- in deposit accounts (with less than 3 months original maturity) 571.06 504.80
Cash on hand 89.76 185.66
Total 10,717.42 5,137.10

15. BANK BALANCES OTHER THAN CASH AND CASH EQUIVALENTS

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Fixed deposits with original maturity of more than 3 months but less than 12 months 10,329.70 2,886.83
of reporting date *^
Total 10,329.70 2,886.83

* Includes 31 March 2020: ` 943.13 Lakhs, (31 March 2019: ` 939.99) Lakhs pledged against bank guarantee.
^ Includes 31 March 2020: ` 759.38 Lakhs, (31 March 2019: ` 762.57) Lakhs fixed deposits under lien.

210 METROPOLIS HEALTHCARE LTD

 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

16. CURRENT LOANS (UNSECURED, CONSIDERED GOOD)

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Security deposits 1,099.40 1,501.50
Other advances 18.67 8.65
1,118.07 1,510.15
(Unsecured, considered doubtful)
- significant increase in credit risk - -
- credit impaired 16.56 14.00
Advances to related parties (Refer note 42)
- significant increase in credit risk - -
- credit impaired 44.02 86.35
Other advances
- significant increase in credit risk - -
- credit impaired 46.16 3.83
106.74 104.18
Less : Provision for advances having significant increase in credit risk - -
Less : Provision for advances which are credit impaired (106.74) (104.18)
Total 1,118.07 1,510.15

17. OTHER CURRENT FINANCIAL ASSETS (UNSECURED, CONSIDERED GOOD)

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Interest accrued but not due
- From bank deposits 210.67 28.34
- From others - 33.48
Other receivables * 6.43 781.49
Total 217.10 843.31

* It includes amount due from related parties (Refer 42)

18. OTHER CURRENT ASSETS (UNSECURED, CONSIDERED GOOD)

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Advance to suppliers 98.56 107.87
Advance to employees 113.26 82.38
Other advances 343.85 113.57
Prepaid expenses 246.52 394.42
802.19 698.24
(Unsecured, considered doubtful)
Advance to suppliers 52.96 14.62
Advance to employees 43.80 3.90
Other advances 150.07 63.95
246.83 82.47
Less : Provision for doubtful advances (246.83) (82.47)
Total 802.19 698.24

ANNUAL REPORT 2019-20 211

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

19. EQUITY SHARE CAPITAL

(a) Authorised share capital

31 March 2020 31 March 2019

Number of Amount Number of Amount
equity shares (` in Lakhs) equity shares (` in Lakhs)
Equity shares of the par value of ` 2 each (31 March 2019 par 29,57,54,015 5,915.08 29,57,54,015 5,915.08
value of ` 2 each)(refer note (h) below)
29,57,54,015 5,915.08 29,57,54,015 5,915.08

(b) Issued, subscribed and paid up

31 March 2020 31 March 2019

Number of Amount Number of Amount
equity shares (` in Lakhs) equity shares (` in Lakhs)
Equity shares of the par value of ` 2 each (31 March 2019 par 5,06,30,566 1,012.61 5,01,78,680 1,003.57
value of ` 2 each)(refer note (h) below)
5,06,30,566 1,012.61 5,01,78,680 1,003.57

(c) Reconciliation of number of shares outstanding at the beginning and end of the reporting year:

Name of Shareholder 31 March 2020 31 March 2019

Number of Amount Number of Amount
equity shares (` in Lakhs) equity shares (` in Lakhs)
Equity :
Outstanding at the beginning 5,01,78,680 1,003.57 95,43,646 954.36
Issued under Metropolis Employee Stock Option Scheme - - 32,800 3.28
2007 (Refer note 51 (c) )
Issued under Metropolis Employee Stock Option Scheme 4,51,886 9.04 - -
2015 (Refer note 51 (c) )
Issued on exercise of share warrants [Refer note 55] - - 8,703 0.87
Issued to the Shareholders of Subsidiary Companies on - - 64,596 6.46
acquisition of further stake (Refer note 44(i)(ii)(iii)(iv)(v)(vi)
Issued to the Shareholders of Bacchus Hospitality Services - - 26,57,731 265.77
and Real Estate Private Limited pursuant to the scheme of
amalgamation (Refer note 57 (b) )
Cancellation of the old shares of Bacchus Hospitality - - (26,57,730) -265.77
Services and Real Estate Private Limited pursuant to the
scheme of amalgamation (Refer note 57 (b) )
Issue of Bonus Shares (Refer note (g) below) - - 3,85,990 38.60
Outstanding before sub-division of shares 5,06,30,566 1,012.61 1,00,35,736 1,003.57
Adjustment for Sub-Division of Equity Shares (Refer below - - 4,01,42,944 -
note (g) below)
Outstanding at the end 5,06,30,566 1,012.61 5,01,78,680 1,003.57

212 METROPOLIS HEALTHCARE LTD

 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

(d) Details of shareholders holding more than 5% of the aggregate equity shares in the Company:

Name of the shareholders 31 March 2020 31 March 2019

Number Percentage Number* Percentage
Dr. Sushil Kanubhai Shah 37,25,245 7.36% 99,97,590 19.92%
CA Lotus Investments 71,79,579 14.18% 1,56,53,435 31.20%
Smallcap World Fund, Inc 27,80,746 5.49% - -
Metz Advisory LLP 1,56,91,216 30.99% 1,46,30,125 29.16%
Dr. Duru Sushil Shah 92,09,230 18.19% 92,09,230 18.35%
* Number of equity shares as on March 2019 are after adjusting sub-division of equity shares

(e) Terms/rights attached to equity shares :

The Company has only one class of Equity shares having a par value of ` 2 per share. Each holder of equity share is entitled
to one vote per share. The Company declares and pays dividend in Indian Rupees. The dividend, if proposed by the Board of
Directors, will be subject to the approval of the shareholders in the ensuing Annual General Meeting except interim dividend.

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

(f) Aggregate number of bonus shares issued, shares issued for consideration other than cash and shares bought back during
the period of five years immediately preceding the reporting date :
- Issue of 3,85,990 (before spilt with face value of ` 10 each) bonus shares during the previous year ended 31 March 2019

- During the previous year ended 31 March 2019, 1 share (before split with face value of ` 10 each) has been allotted to the
Shareholders of Bacchus Hospitality Services and Real Estate Private Limited pursuant to the scheme of amalgamation
(Refer note 57 b))
- During the previous year ended 31 March, 2019, 64,596 shares (before split with face value of ` 10 each) have been allotted
as consideration for swap of shares with the shareholders of subsidiary companies on acquisition of further stake Refer
note 44(i)(ii)(iii)(iv)(v)(vi)(vii)(viii)(ix))
- Buy-back of 320,484 shares (before split with face value of ` 10 each) which was brought back pursuant to section 68 of
the Companies Act, 2013 during the year ended 31 March 2016.
(g) Pursuant to Shareholder’s resolution passed at the Extraordinary General Meeting (EGM) held on 14 September 2018, the
Shareholders approved issuance of Bonus shares to the existing shareholders in the ratio of 1:25 i.e. one bonus equity shares
for twenty five existing equity shares.

Further in the same meeting, the equity share capital (Authorized, Issued and Paid-up) of the Company was subdivided from
` 10/- (Rupees ten) each to equity shares of ` 2/- (Rupees two) each. The capital clause of the Memorandum of Association
was substituted to reflect the sub-division of Equity Shares of the Company from ` 5,915.08 Lakhs comprising of 59,150,803
Equity Shares of ` 10 each to ` 5,915.08 Lakhs comprising of 295,754,015 Equity Shares of ` 2 each. The revised authorised
share capital of the Company now stands at 295,754,015 equity shares of ` 2/- each.

(h) Change in authorised share capital : During the year ended 31 March 2019, the authorised share capital of the Company has
increased as per clause 15 of the scheme of amalgamation as follows.(Refer note 57 ) for further details

31 March 2020 31 March 2019

Number of Amount Number of Amount
equity shares (` in Lakhs) equity shares (` in Lakhs)
(i) Bacchus Hospitality Services and Real Estate Private - - 28,30,803 283.08
Limited
(ii) Metropolis Healthcare (Chandigarh) Private Limited - - 10,000 1.00
(iii) Metropolis Healthcare (Jodhpur) Private Limited - - 10,000 1.00
(iv) Final Diagnosis Private Limited - - 9,50,000 95.00

ANNUAL REPORT 2019-20 213

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

31 March 2020 31 March 2019

Number of Amount Number of Amount
equity shares (` in Lakhs) equity shares (` in Lakhs)
(v) Sanket Metropolis Health Services (India) Private Limited - - 2,50,000 25.00
(vi) Golwilkar Metropolis Health Services (India) Private - - 1,00,000 10.00
Limited
(vi) Metropolis Healthcare Limited 29,57,54,015 5,915.08 5,50,00,000 5,500.00
29,57,54,015 5,915.08 5,91,50,803 5,915.08
Impact of split from ` 10 per share to ` 2 per share - - 23,66,03,212 -
Total authorised share capital 29,57,54,015 5,915.08 29,57,54,015 5,915.08

20 OTHER EQUITY

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Securities premium 11,886.16 8,705.93
Capital redemption reserve 0.33 0.33
General reserve 1,875.08 1,750.98
Capital reserve 69.13 69.13
Employee stock options reserve 207.06 258.78
Retained earnings 37,158.66 29,832.43
Foreign currency translation reserve 140.58 232.69
Total 51,337.00 40,850.27
Movement in balances of Other equity:
Securities Premium
Balance as at the beginning of the year 8,705.93 5,831.61
Utlilised during the period pursuant to the scheme of Amalgamation with Bacchus - (0.00)^
Hospitality Services and Real Estate Private Limited (Refer note 57 (b) )*
Utilised on issue of bonus shares - (6.55)
Share options exercised under Metropolis Employee Stock Option Scheme 2007/2015 3,180.23 29.52
(Refer note 51 (c) )
Share warrants exercised during the period (Refer note 55) - 223.58
Shares issued to the Shareholders of Subsidiary Companies on acquisition of further - 2,627.77
stake (Refer note 44(i)(ii)(iii)(iv)(v)(vi)(vii)(viii)(ix)
Balance as at the end of the year 11,886.16 8,705.93
* As per the scheme of amalgamation, shares held by Bacchus Hospitality Services and Real Estate Private Limited in the Company
are cancelled and any difference on cancellation of shares over the issue of new equity shares has been adjusted with Securities
Premium arising, if any, on issue of new equity shares.
^ Amount is ` 10
Capital redemption reserve
Balance as at the beginning of the year 0.33 32.37
Utilised on issue of bonus shares - (32.04)
Balance as at the end of the year 0.33 0.33

General reserve
Balance as at the beginning and at the end of the year 1,750.98 1,750.98
Transfer from ESOP exercised during the year (Refer Note 51c) 124.10 -
Balance as at the end of the year 1,875.08 1,750.98
Capital reserve
Balance as at the beginning and at the end of the year 69.13 69.13

214 METROPOLIS HEALTHCARE LTD

 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Employee stock options reserve
Balance as at the beginning of the year 258.78 170.34
Transfer to General Reserve on account of ESOP exercised during the year (Refer (124.10) -
Note 51c)
Share based payments (Refer note 33 ) 72.38 88.44
Balance as at the end of the year 207.06 258.78
Retained Earnings
Balance as at the beginning of the year 29,832.43 32,524.04
Transferred from statement of profit and loss 12,732.56 12,014.79
Transition impact of Ind AS 116, net of tax (Refer note 40) (358.82) -
Interim dividend paid (4,014.29) (6,653.69)
Tax on dividend distributed (825.15) (1,655.46)
Acquisition of stake from NCI(Refer note 44(i)(ii)(iii)(iv)(v)(vi)(vii)(viii)) - (6,446.07)
Other comprehensive income (208.07) 48.82
Balance as at the end of the year 37,158.66 29,832.43

Other comprehensive Income-

(i) Foreign currency translation reserve
Balance as at the beginning of the year 232.69 143.37
Exchange differences in translating financial statements of foreign operations (92.11) 89.32
Balance as at the end of the year 140.58 232.69

(ii) Debt instruments fair valued through other comprehensive income

Balance as at the beginning and end of the year - 0.27
Movement during the year - (0.27)
Balance as at the end of the year - -
Nature and purpose of reserves
Securities Premium
The amount received in excess of face value of the equity shares is recognised in Securities Premium. It can be used to issue bonus
shares, to purchase of its own shares, to provide for premium on redemption of shares or debentures, write-off equity related
expenses like underwriting costs, etc.

Capital redemption reserve

The Group recognises the capital redemption reserve from its retained earnings as per the provisions of Companies Act, 2013, as
applicable.

General reserve
General Reserve is free reserve which is created by transferring funds from retained earnings to meet future obligations or
purposes.

Capital reserve
It represents the excess of net assets taken, over the cost of consideration paid in business combination transaction.

Employee stock options reserve

The Group has established equity settled share based payment plan for certain categories of employees. (Refer note 51 (c))

Retained Earnings
Retained earnings are the profits that the Group has earned till date, less any transfers to general reserve, dividends or other
distributions paid to shareholders. Retained Earnings is a free reserve available to the Group.

ANNUAL REPORT 2019-20 215

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

Foreign currency translation reserve

The translation reserve comprises all foreign currency differences arising from the translation of the financial statements of
foreign subsidiaries.

Debt instruments fair valued through OCI

This comprises changes in the fair value of debt instruments recognised in other comprehensive income and accumulated within
equity. The Group transfers amounts from such component of equity to retained earnings when the relevant debt instruments are
derecognised.

21. NON-CURRENT BORROWINGS

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Secured loan
From Banks - 3.51
- Vehicle loans (Refer note 21.1 and note 26)
Total - 3.51
21.1 Terms of borrowings:
Vehicle loan
(i) Vehicle Loan of ` Nil as at 31 March 2020 (31 March 2019: 2.53 Lakhs) is from HDFC bank carrying an interest rate of 8.51%
The loan is repayable in 36 monthly installments along with interest, from the date of loan i.e. 5 April 2017. The end date
of the loan is 5 March 2020 and the loan is secured way of hypothecation of the respective vehicle.

(ii) Vehicle Loan of ` 3.51 Lakhs (31 March 2019: ` 17.53 Lakhs) is from HDFC bank carrying an interest rate of 9.63% The loan
is repayable in 60 monthly installments along with interest, from the date of loan i.e. 5 July 2015. The end date of the loan
is 5 June 2020 and the loan is secured way of hypothecation of the vehicle.

22. OTHER NON-CURRENT FINANCIAL LIABILITIES

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Deferred purchase consideration payable (Refer note 44(viii)(ix)) 467.81 208.89
467.81 208.89

23. NON-CURRENT PROVISIONS

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Non-Current
Provision for employee benefits
Gratuity (Refer note 51 (a) ) 541.40 316.08
(A) 541.40 316.08
Current
Provision for employee benefits
Gratuity (Refer note 51 (a) ) 600.62 454.99
Leave entitlement 59.29 33.10
(B) 659.91 488.09
Total (A)+(B) 1,201.31 804.18

216 METROPOLIS HEALTHCARE LTD

 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

24. CURRENT BORROWINGS

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Secured Loan
Cash Credit (Refer Note (iii) below) - 1,734.47
Unsecured loan
From directors of subsidiary companies (Refer Note (i) below) - 3.01
From others (Refer Note (ii) below) - 20.38
Total - 1,757.86
Terms of borrowings:
i) From Directors and Shareholders
Interest free loan taken by subsidiary companies from their directors/ shareholders are repayable on demand.

ii) From Others

Interest free loan taken by a subsidiary company from Interaf S.A. Ltd is repayable on demand.

iii) From Cash Credit

In Previous year, Company had availed cash credit facility from HDFC Bank Limited, which was secured by charge over stock
in trade and book debts of the Company and interest was chargeable as approved by HDFC Bank Limited which was 9.75%.

25. TRADE PAYABLES

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Trade payables
Total outstanding due to micro and small enterprises (Refer note 25.1) 724.72 3.87
Total outstanding dues of creditors other than micro enterprises and small 7,778.68 4,281.05
enterprises*
Total 8,503.40 4,284.92
* Trade payables include amount payable to companies where Director of the Company is a director (Refer note 42).
25.1 Micro and small enterprises
There are some micro and small enterprises, to whom the Group owes dues, which are outstanding for more than 45 days as at 31
March 2020. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006,
has been determined to the extent such parties have been identified on the basis of information available with the Group.

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
a. Principal amount remaining unpaid to any supplier as at the year end 724.72 -
Interest due thereon:
b. Amount of Interest paid during the year -
c. Amount of payments made to the supplier beyond the appointed day during the - -
accounting year.
d. Amount of Interest due and payable for the period of delay in making payment 18.85 -
(which have been paid but beyond the appointed day during the period) but without
adding interest specified under the Micro, Small and Medium Enterprises Act,2006)
e. Amount of Interest accrued and remaining unpaid at the end of the accounting year. 32.49 -
f. The amount of further interest remaining due and payable even in the succeeding - -
years, until such date when the interest dues as above are actually paid to the small
enterprises for the purpose of disallowance as a deductible expenditure under the
MSMED Act 2006

ANNUAL REPORT 2019-20 217

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

26. OTHER CURRENT FINANCIAL LIABILITIES

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Current maturities of long-term borrowings
- Vehicle loans (Refer note 21) 3.51 16.55
Accrued expenses - 1,055.23
Interest accrued and due on borrowings - 0.12
Capital creditors 1,009.18 784.34
Employee related dues 1,351.72 1,552.80
Security deposits 105.57 111.97
Deferred purchase consideration payable (Refer note 44(viii)(ix)) 878.09 625.04
Other liabilities 93.37 37.44
Total 3,441.44 4,183.49

27. OTHER CURRENT LIABILITIES

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Statutory dues# 1,457.17 424.33
Advances from Customers 366.22 379.52
Other Payable** 57.76 -
Total 1,881.15 803.85

# Statutory Dues payable include Tax Deducted at Source, Provident Fund, Professional tax, Others
** Other payable include payable to CA Lotus and Sushil Shah on account of refund of additional filing fee received from SEBI.

28. CURRENT TAX LIABILITIES (NET)

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Provision for taxation (net of advance tax -31 March 2020: ` 4,071.82 Lakhs ,31 March 373.17 930.43
2019: ` 11,688.05 Lakhs )
Total 373.17 930.43

29. REVENUE FROM OPERATIONS

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Service income (Refer Note 50) 85,584.83 76,005.59
Other Operating revenue
Sundry balances written back 55.71 112.59
Total 85,640.54 76,118.18

218 METROPOLIS HEALTHCARE LTD

 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

30. OTHER INCOME

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Interest
- from banks 527.65 170.22
- on income tax refund 0.58 2.04
- on investments - 134.77
- on term loans 12.65 14.32
- others 49.08 25.19
Dividend
- from mutual fund 21.46 96.24
Fair value gain on mutual funds measured at FVTPL 90.07 330.59
Profit on sale of property, plant and equipment (net) - 3.66
Foreign exchange gain (net) 55.09 20.71
Miscellaneous income 100.08 23.58
Total 856.66 821.32

31. COST OF MATERIAL CONSUMED

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Opening stock (Refer note 11) 2,610.23 2,118.72
Add: Purchase of traded goods 49.56 23.77
Add: Purchases of raw materials during the year 20,193.78 17,818.76
22,853.57 19,961.25
Less: Closing stock (Refer note 11) (2,440.07) (2,610.23)
Total 20,413.50 17,351.02

32. LABORATORY TESTING CHARGES

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Laboratory testing charges 688.99 557.17
Total 688.99 557.17

ANNUAL REPORT 2019-20 219

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

33. EMPLOYEE BENEFITS EXPENSE

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Salaries, wages and bonus 17,256.01 15,594.05
Gratuity expenses (Refer note 51 (a) ) 166.98 164.60
Contribution to provident and other funds (Refer note 51 (b) ) 849.38 818.18
Share based payment expenses (Refer note 51 (c) ) * 72.38 443.89
Staff welfare expenses 670.87 599.99
Total 19,015.62 17,620.71

‘*During the year ended 31 March 2020, total expense of ` 72.38 Lakhs including reversal due to lapsed option amounting to ` 16.05
Lakhs arising under MESOS 2015 scheme is recognised through employee stock option reserve.
During the previous year ended 31 March 2019, out of total expense of ` 443.89 Lakhs, expense of ` 88.44 Lakhs arising under
MESOS 2015 scheme is recognised through employee stock option reserve and expense of ` 355.45 Lakhs arising from buyout of
9,875 options against cash is directly recognised in the statement of profit and loss.

34. FINANCE COSTS

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Interest on short term loan 52.64 12.98
Interest on deferred purchase consideration measured at amortized cost (Refer 59.50 40.13
note(viii)(ix))
Interest on lease liabilities (Refer note 40) 722.33 -
Total 834.47 53.11

35. DEPRECIATION AND AMORTISATION EXPENSE

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Depreciation on Property, Plant and Equipment (Refer note 3) 1,856.17 1,669.48
Amortisation of intangible assets (Refer note 4) 439.95 337.13
Amortisation on ROU (Refer note 40) 1,630.60 -
Total 3,926.72 2,006.61

220 METROPOLIS HEALTHCARE LTD

 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

36. OTHER EXPENSES

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Accreditation expenses 127.32 98.31
Laboratory expenses 120.25 140.80
Power and fuel 1,248.56 1,100.03
Rent (Refer note 40) 5,529.48 5,780.78
Repairs and maintenance
Buildings 75.74 69.36
Plant and equipment 946.71 711.07
Others 291.99 347.73
Insurance 158.59 144.13
Rates and taxes 772.67 803.14
Bank charges 430.84 358.81
Sample Collection Charges 184.26 155.63
Legal and professional* 3,445.25 3,324.72
Travelling and conveyance 1,124.23 1,142.97
Printing and stationery 529.62 683.23
Provision for bad and doubtful debts (net) 1,383.82 508.15
Provision for doubtful advances (net) 246.81 3.84
Provision for impairment of current investments - 144.20
Credit impaired trade receivables written off - 24.43
Postage and courier 2,773.81 2,162.11
Communication 471.69 421.31
Advertisement and sales promotion expenses 1,126.28 1,434.93
Facility maintenance charges 454.72 386.83
Loss on sale of debt instrument measured at FVOCI - 3.79
Loss on sale of property, plant and equipment 60.01 0.61
Payments to auditors (Refer note 49) 133.37 108.66
Donation 1.22 3.33
Corporate social responsibility expenses (Refer note 53) 76.97 79.45
Directors' sitting fee & commission (Refer note 42) 56.06 41.40
Office Expenses 1.56 33.64
Sundry balance written off - 0.05
Miscellaneous expenses 468.12 335.24
Total 22,239.95 20,552.68

* includes merger related expenses of ` Nil Lakhs (31 March 2019: ` 131.00 Lakhs)

ANNUAL REPORT 2019-20 221

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

37. EXCEPTIONAL ITEMS

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Provision for impairment of current investments (Refer Note 1) 336.48 -
Provision for bad and doubtful debts (net) (Refer Note 2 & 3) 2116.18 -
2,452.66 -

Notes:
Exceptional items are those which are considered for separate disclosure in the financial statements considering their size,
nature or incidence. Such items included within the statement of profit and loss are detailed below:
1 Provision for impairment of investment in securities of Infrastructure Leasing & Financial Services (IL&FS) aggregating to `
336.48 Lakhs.

2 There has been a prolonged dispute in relation to trade receivables from a party towards lab management services rendered
by the Company and the matter has been under arbitration. In view of the delay, the Company, on a prudent basis, has made
provision aggregating ` 1,766 Lakhs against the above mentioned disputed trade receivables and this has been disclosed as
an exceptional item.

3 Provision for ` 350.00 Lakhs on account of certain old unreconciled balances.

38. TAXATION
i. Income Tax expense

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Current tax expense
Current year 5,326.98 6,309.03
Tax adjustments for earlier years (289.56) -
Total current tax 5,037.42 6,309.03
Deferred tax expense
Relating to addition & reversal of temporary differences (765.12) (14.97)
Relating to change in tax rate* (154.21) (0.16)
Total deferred tax (919.33) (15.13)
Total tax expense 4,118.09 6,293.90

* Effective Income tax rate applicable to the Group for FY 2019-20 has changed on account of decrease in tax rate to 22%
w.e.f. 1 April 2019. Accordingly the deferred tax rate applicable for FY 2018-19 has been changed.;

On 20 September 2019, the Government has brought in the Taxation Laws (Amendment) Ordinance 2019 to make certain
amendments in Income-tax Act 1961 (the Act) and the Finance (No.2) Act 2019.

A New section 115BAA has been introduced with effect from Financial Year (FY) 2019-20 (AY 2020-21) to provide an option for
a concessional tax at the rate of 22% in the case of domestic Company.

The Company have elected to exercise the option permitted under section 115BAA of the Income-tax Act, 1961 as introduced
by the Taxation Laws (Amendment) Ordinance, 2019.

222 METROPOLIS HEALTHCARE LTD

 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

ii. Tax charge recognised directly to Other Comprehensive Income

(` in Lakhs)
Particulars 31 March 2020
Before tax Tax (expense) Net of tax
benefit
Items that will not be reclassified to profit or loss
Remeasurements of the defined benefit plans (278.02) 69.98 (208.04)
Items that will subsequently be reclassified to profit or loss
Exchange differences in translating financial statements of foreign (92.11) - (92.11)
operations
Total tax charge recognized directly to Other Comprehensive Income (370.13) 69.98 (300.15)

(` in Lakhs)
Particulars 31 March 2019
Before tax Tax (expense) Net of tax
benefit
Items that will not be reclassified to profit or loss
Remeasurements of the defined benefit plans 74.50 (24.54) 49.96
Items that will subsequently be reclassified to profit or loss
Exchange differences in translating financial statements of foreign 89.32 - 89.32
operations
Total tax charge recognized directly to Other Comprehensive Income 163.82 (24.54) 139.28

iii. Reconciliation of estimated income tax to income tax expense is as below:

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
Profit before tax 16,873.31 18,655.18
Income tax expense at tax rates applicable to individual entities 4,887.75 6,738.25
Tax effect of adjustments to reconcile expected Income Tax Expense to
reported Income Tax Expense:
Expenses not allowed under Income tax 34.61 46.78
Income not subject to tax (565.53) (495.42)
Income taxable at a different rate (26.72) (38.83)
Tax adjustment of earlier years (289.56) -
Others 77.52 43.12
Total tax expense 4,118.09 6,293.90
Total tax expense as per statement of profit and loss 4,118.09 6,293.90

ANNUAL REPORT 2019-20 223

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

iv. Movement in deferred tax balances

As at 31 March 2020
(` in Lakhs)
Particulars Net bal- Rec- Rec- Recog- Business Net Deferred Deferred
ance ognised in ognised nized in Combina- deferred tax asset tax (liabil-
1 April profit or in OCI Retained tion* tax asset/ ity)
2019 loss Earnings (liability)
Property, plant, equipment and (1,368.52) 198.92 - - (27.50) (1,197.10) (960.71) (236.39)
intangibles
Current investments 1.03 87.38 - - - 88.41 91.45 (3.04)
Provision for bad and doubtful debts 994.92 692.29 - - - 1,687.21 1,660.94 26.27
Provision for bad and doubtful 1.34 0.16 - - - 1.50 1.50 -
advances / deposits
Provision for employee benefits 350.20 (58.65) 69.98 - - 361.53 329.17 32.36
Transistion impact of Ind AS -116 - 6.40 179.79 - 186.19 178.21 7.98
Share based payments 82.72 (30.60) - - - 52.12 52.12
Others 14.00 23.43 - - - 37.43 37.43 -
Tax Assets (Liabilities) 75.69 919.33 69.98 179.79 (27.50) 1,217.29 1,390.11 (172.82)
* During the year, the Company through its direct subsidiary Desai Metropolis Health Services Pvt Ltd acquired laboratories
through a business purchase agreement and hence deferred tax impact has been recognized ( Refer note 44 (ix))

As at 31 March 2019

(` in Lakhs)
Particulars Net balance Recognised Recognised Net deferred Deferred tax Deferred tax
1 April 2018 in profit or in OCI tax asset/ asset (liability)
loss (liability)
Property, plant, equipment and (988.54) (379.98) - (1,368.52) 99.78 (1,468.30)
intangibles
Current investments (78.93) 79.96 - 1.03 (47.68) 48.71
Provision for bad and doubtful debts 763.15 231.77 - 994.92 183.71 811.21
Provision for bad and doubtful 0.28 1.06 - 1.34 1.34 -
advances / deposits
Provision for employee benefits 317.52 57.22 (24.54) 350.20 131.37 218.83
Mat credit entitlement - - - - - -
Share based payments 59.52 23.20 - 82.72 - 82.72
Others 12.10 1.90 - 14.00 (2.82) 16.81
Tax Assets (Liabilities) 85.10 15.13 (24.54) 75.69 365.71 (290.02)

The Group offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and
current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax
authority.

Significant management judgement is required in determining provision for income tax, deferred income tax assets and
liabilities and recoverability of deferred income tax assets. The recoverability of deferred income tax assets is based on
estimates of taxable income and the period over which deferred income tax assets will be recovered. Any changes in future
taxable income would impact the recoverability of deferred tax assets.

Further, the Group has been substantially availing the tax credit and believes that it would continue to avail the tax credit, for
the dividend distribution tax payable by the subsidiaries on its dividend distribution.

224 METROPOLIS HEALTHCARE LTD

 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

39. EARNINGS PER SHARE

Basic EPS calculated by dividing the Profit for the year attributable to equity holders by the weighted average number of Equity
shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders (after adjusting profit impact of dilutive
potential equity shares, if any) by the aggregate of weighted average number of Equity shares outstanding during the year and the
weighted average number of Equity shares that would be issued on conversion of all the dilutive potential Equity shares into Equity
shares.

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
i. Profit attributable to equity holders (` in Lakhs)
Profit attributable to equity holders for basic and diluted EPS 12,732.56 12,014.79
ii. Weighted average number of shares for calculating basic 5,02,10,869 4,99,30,454
iii. Effect of dilution
Share options and warrants 2,21,425 99,432
Weighted average number of shares for calculating diluted EPS 5,04,32,294 5,00,29,886
iv. Basic earnings per share (`) 25.36 24.06
v. Diluted earnings per share (`) 25.25 24.02
Note:
Pursuant to Shareholder’s resolution passed at the Extraordinary General Meeting (EGM) held on September 14, 2018, the
Shareholders approved issuance of Bonus shares to the existing shareholders in the ratio of 1:25 i.e. one bonus equity shares for
twenty five existing equity shares. Further in the same meeting, the equity share capital (Authorized, Issued and Paid-up) of the
Company was subdivided from ` 10/- (Rupees ten) each to equity shares of ` 2/- (Rupees two) each. the exercise price and the
outstanding employee stock options would be adjusted proportionately.

Ind AS 33 ‘Earnings per share’, requires an adjustment in the calculation of basic and diluted earnings per share for all the periods
presented if the number of equity or potential equity shares outstanding change as a result of share sub-division and bonus. The
weighted average numbers of shares and consequently the basic and diluted earnings per share have accordingly been adjusted in
the financial statements.

40. LEASES

Operating lease obligations

The Group has taken various commercial properties on leases for its offices, laboratories and staff accommodation. The lease
expenses in the March 2019 to ` 5,780.78 Lakhs. Future minimum rentals payable under non-cancellable operating leases are as
follows:

(` in Lakhs)
Particulars 31 March 2019
Not later than one year 815.29
Later than one year but not later than five years 1642.19
Later than five years -
Total 2457.48

Disclosure on Ind-As 116 Leases

i. Transition
On transition, the adoption of the new standard resulted in recognition of ‘Right of Use’ asset of ` 5,230.88 Lakhs and a lease
liability of ` 5,633.69 Lakhs. The cumulative effect of applying the standard of ` 358.82 Lakhs was debited to retained earnings,
net of taxes and prepaid rent. Ind AS 116 will result in an increase in cash inflows from operating activities and an increase in
cash outflows from financing activities on account of lease payments.

ANNUAL REPORT 2019-20 225

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

ii. The following is the summary of practical expedients elected on initial application:
a. Applied a single discount rate to a portfolio of leases of similar assets in similar economic environment with a similar end date.

b. Applied the exemption not to recognize right-of-use assets and liabilities for leases :

a. with less than 12 months of lease term on the date of initial application

b. Rent outflow of less than ` 5 Lakhs in entire tenure of arrangement

c. Excluded the initial direct costs from the measurement of the right-of-use asset at the date of initial application.

d. Applied the practical expedient to grandfather the assessment of which transactions are leases. Accordingly, Ind AS 116 is
applied only to contracts that were previously identified as leases under Ind AS 17.

iii. The effect of depreciation and interest related to Right Of Use Asset and Lease Liability are reflected in the Statement of
Profit and Loss under the heading “Depreciation and Amortisation Expense” and “Finance costs” respectively under Note No
35 and 34.

iv. The weighted average incremental borrowing rate applied to lease liabilities as at 1 April 2019 is 9.20% - 10.10%.

v. The difference between the lease obligation recorded as at 31 March 2019 under Ind AS 17 (disclosed under Note 49) and the
value of the lease liability as at 1 April 2019 is primarily on account of inclusion of extension and termination options reasonably
certain to be exercised, in measuring the lease liability in accordance with Ind AS 116 and discounting the lease liabilities to the
present value under Ind AS 116.

vi. Following are the changes in the carrying value of right of use assets for the year ended 31 March 2020:

(` in Lakhs)
Particulars Category of ROU Total
Office Space Pateint Service
Center/Lab or
Both
Balance as of 1 April 2019 1,836.42 3,394.46 5,230.88
Additions 600.73 1,764.91 2,365.65
Depreciation (655.32) (975.28) (1,630.60)
Balance as of 31 March 2020 1,781.83 4,184.09 5,965.92

vii. The following is the break-up of current and non-current lease liabilities as of 31 March 2020:

(` in Lakhs)
Particulars 31 March 2020
Current Lease liabilities 2,088.89
Non-current lease liabilities 4,577.81
Total 6,666.70

viii. The following is the movement in lease liabilities for the year ended 31 March 2020:

(` in Lakhs)
Particulars 31 March 2019
Balance as of 1 April 2019 5,633.69
Additions 2,365.65
Finance cost accrued during the year 722.33
Payment of lease liabilities (2,054.97)
Balance as of 31 March 2020 6,666.70

226 METROPOLIS HEALTHCARE LTD

 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

ix. The table below provides details regarding the contractual maturities of lease liabilities as of 31 March 2020 on an undiscounted
basis:

(` in Lakhs)
Particulars 31 March 2020
Less than one year 2,094.93
One to five years 5,437.96
More than 5 years 1,032.55
Total 8,565.44
x. Impact of adoption of Ind AS 116 for the year ended 31 March 2020 is as follows:

(` in Lakhs)
Particulars 31 March 2020
Decrease in Other expenses by 2,054.97
Increase in Finance cost by 722.33
Increase in Depreciation by (excludes depreciation on reclassified assets) 1,577.79
Net Impact on (Profit)/Loss 245.15
xi. Reconciliation between operating lease commitments disclosed in financials as at 31 March 2019 applying Ind AS 17 and lease
liabilities recognised in the statement of financial position as at 1 April 2019 i.e date of initial application.

(` in Lakhs)
Particulars Amount
Opening Balance of Operating Lease 2,457.48
Add: Additional lease commitment based on expected extension of lease term 3,176.21
Lease liabilities as at 1 April 2019 5,633.69
xii. The Group does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to
meet the obligations related to lease liabilities as and when they fall due.

xiii. Rental expense recorded for short-term leases / Variable lease/ low value leases was ` 5,529.48 Lakhs for the year ended 31
March 2020.

xiv. The total cash outflow for leases for year ended 31 March 2020 is ` 2,054.97 Lakhs

41. FINANCIAL INSTRUMENTS – FAIR VALUES AND RISK MANAGEMENT

A. Accounting classification and fair values
The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels
in the fair value hierarchy. It does not include fair value information for financial assets and financial liabilities not measured
at fair value if the carrying amount is a reasonable approximation of fair value.

(` in Lakhs)
Particulars As at 31 March 2020
Carrying amount Fair value
Fair value Fair value Amortised Total Level 1 Level 2 Level 3 Total
through through Cost
profit other com-
and loss prehensive
income
Non-current Financial assets
Non-current investments - - - - - - - -
- Unquoted equity instruments in
others**

ANNUAL REPORT 2019-20 227

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

(` in Lakhs)
Particulars As at 31 March 2020
Carrying amount Fair value
Fair value Fair value Amortised Total Level 1 Level 2 Level 3 Total
through through Cost
profit other com-
and loss prehensive
income
Non-current Loans- Security - - 540.72 540.72 - - - -
Deposits
Other Non-current Loans - - 5.98 5.98 - - - -
Other non current financial assets - - 1,239.34 1,239.34 - - - -
Current Financial assets
Investment in mutual funds 1,256.61 - - 1,256.61 - 1,256.61 - 1,256.61
Trade receivables - - 12,824.78 12,824.78 - - - -
Cash and cash equivalents - - 10,717.42 10,717.42 - - - -
Bank Balances other than Cash - - 10,329.70 10,329.70 - - - -
and cash equivalents
Current loans - - 1,118.07 1,118.07 - - - -
Other current financial assets - - 217.10 217.10 - - - -
1,256.61 - 36,993.11 38,249.72 - 1,256.61 - 1,256.61
Non-current Financial liabilities
Other non-current financial - - 467.81 467.81 - - - -
liabilities
Lease Liabilities - - 4,577.81 4,577.81 - - 4,577.81 4,577.81
Current Financial liabilities
Trade payables - - 8,503.40 8,503.40 - - - -
Other current financial liabilities - - 3,441.44 3,441.44 - - - -
Lease Liabilities - - 2,088.89 2,088.89 - - 2,088.89 2,088.89
- - 19,079.35 19,079.35 - - 6,666.70 6,666.70

(` in Lakhs)
Particulars As at 31 March 2019
Carrying amount Fair value
Fair value Fair value Amortised Total Level 1 Level 2 Level 3 Total
through through Cost
profit other com-
and loss prehensive
income
Non-current Financial assets
"Non-current investments - - - - - - - -
- Unquoted equity instruments in
others**"
Non-current Loans- Security - - 329.29 329.29 - - - -
Deposits
Other Non-current Loans - - 91.37 91.37 - - - -
Other non current financial assets - - 1,019.90 1,019.90 - - - -
Current Financial assets
Investment in mutual funds 2,765.14 - - 2,765.14 - 2,765.14 - 2,765.14

228 METROPOLIS HEALTHCARE LTD

 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

(` in Lakhs)
Particulars As at 31 March 2019
Carrying amount Fair value
Fair value Fair value Amortised Total Level 1 Level 2 Level 3 Total
through through Cost
profit other com-
and loss prehensive
income
Investment in Commercial Papers - - - - - - - -
Trade receivables - - 13,684.78 13,684.78 - - - -
Cash and cash equivalents - - 5,137.10 5,137.10 - - - -
Bank Balances other than Cash - - 2,886.83 2,886.83 - - - -
and cash equivalents
Current loans - - 1,510.15 1,510.15 - - - -
Other current financial assets - - 843.31 843.31 - - - -
2,765.14 - 25,502.72 28,267.86 - 2,765.14 - 2,765.14
Non-current Financial liabilities
Borrowings - - 3.51 3.51 - - - -
Other non-current financial - - 208.89 208.89 - - - -
liabilities
Current Financial liabilities
Borrowings - - 1,757.86 1,757.86 - - - -
Trade payables - - 4,284.92 4,284.92 - - - -
Other current financial liabilities - - 4,183.49 4,183.49 - - - -
- - 10,438.68 10,438.68 - - - -
** The fair value in respect of the unquoted equity investments cannot be reliably estimated. The Group has currently measured
them at cost, i.e. ` 175.28 Lakhs (31 March 2019: ` 175.28 Lakhs.)

The fair value of cash and cash equivalents, other bank balances, trade receivables, trade payables approximated their
carrying value largely due to short term maturities of these instruments.

Financial instruments with fixed and variable interest rates are evaluated by the Group based on parameters such as interest
rates and individual creditworthiness of the counterparty. Based on this evaluation, allowances are taken to account for
expected losses of these receivables. Accordingly, fair value of such instruments is not materially different from their carrying
amounts.

B Fair value hierarchy

Ind AS 107, ‘Financial Instrument - Disclosure’ requires classification of the valuation method of financial instruments measured
at fair value in the Balance Sheet, using a three level fair-value-hierarchy (which reflects the significance of inputs used in the
measurements). The hierarchy gives the highest priority to un-adjusted quoted prices in active markets for identical assets or
liabilities (Level 1 measurements) and lowest priority to un-observable inputs (Level 3 measurements). The three levels of the
fair-value-hierarchy under Ind AS 107 are described below:

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques
which maximise the use of observable market data and rely as little as possible on entity specific estimates. If all significant
inputs required to fair value an instrument are observable, the instrument is included in level 2.

ANNUAL REPORT 2019-20 229

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level.
This is the case for unlisted equity securities included in level 3.

Financial instruments measured at fair value

The following table shows the valuation techniques used in measuring Level 2 and Level 3 fair values for financial instruments
measured at fair value in the balance sheet as well as the significant unobservable inputs used.

Type Valuation technique Significant unobservable Inter-relationship

inputs between significant
unobservable inputs and
fair value measurement
Investment in mutual The fair value of the units of mutual fund Not applicable Not applicable
funds scheme are based on net asset value at
each reporting date.
Investment in The fair value of commercial papers is Not applicable Not applicable
Commercial Papers derived through Stochastic Local Volatility
process, where in yield is derived from
trade data and pooled levels of similar
instruments with similar maturity and
credit rating that are traded in secondary
market, adjusted by an illiquidity factor.
Transfers between Levels
There have been no transfers between levels during the reporting year.
Sensitivity analysis

31 March 2020 31 March 2019

Impact in P&L (Net of tax) due to change in discount rate
Increase Decrease Increase Decrease
Lease Liabilities
Movement in Interest on lease liability - Discount rate (66.67) 66.67 - -
(9.67%) + / - 100 basis points
Financial risk management
The Group’s Board of Directors has overall responsibility for the establishment and oversight of the Group’ risk management
framework.

The Group has exposure to the following risks arising from financial instruments
- Credit risk
- Liquidity risk
- Market risk

(i) Credit risk

Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its
contractual obligations, and arises principally from the Group’s trade and other receivables, investments, loans/advances
and cash and cash equivalents. The maximum exposure to credit risk in case of all the financial instruments covered below is
restricted to their respective carrying amount.
a. Trade receivables
The Group’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. Credit risk is
managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers
to which the Group grants credit terms in the normal course of business. The Group establishes an allowance for doubtful debts
and impairment that represents its estimate of incurred losses in respect of trade and other receivables and investments.

230 METROPOLIS HEALTHCARE LTD

 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

The Company does not have any significant concentration of credit risk. Further, company has One customer (31 March 2019:
Two Customers) which accounts for 10% or more of the total trade receivables at each reporting date.

The Group has used a practical expedient by computing the expected credit loss allowance for trade receivables based on a
provision matrix.

The movement in the provision for debts having significant increase in credit risk and which are credit impaired for the year
ended 31st March 2020 and year ended 31 march 2019 is as follows

Particulars Amount ` Lakhs

Balance as at 1 April 2018 2,199.23
Movement during the year 508.15
Balance as at 31 March 2019 2,707.38
Movement during the year 3,463.35
Balance as at 31 March 2020 6,170.73
b. Cash and cash equivalents and Other bank balances
The Group held cash and cash equivalents and other bank balances of 22,122.70 Lakhs at 31 March 2020 (31 March 2019: `
8,858.16 Lakhs). The cash and cash equivalents are held with bank with good credit ratings.
c. Investments
The Group limits its exposure to credit risk by generally investing in liquid securities and only with counterparties that have a
good credit rating. The Group does not expect any losses from non-performance by these counter-parties, and does not have
any significant concentration of exposures to specific industry sectors or specific country risks.
d. Loans and advances
Loans and advances mainly consist security deposit and advances to related parties.

The security deposit pertains to rent deposit given to lessors. The Group does not expect any losses from non-performance
by these counter-parties.

The loans and advances given majorly pertains to joint venture and associates. The parties have been generally regular in
making payments and hence the Group does not expect significant impairment losses on its current profile of outstanding
advances. The advances which have defaulted in the past is mainly on account of uncontrollable adverse local market
conditions which has diluted parties credit worthiness.

The movement in the provision for advances having significant increase in credit risk and which are credit impaired for the
year ended 31 March 2020:

Particulars Amount ` Lakhs

Balance as at 1 April 2018 161.42
Movement during the year 3.84
Balance as at 31 March 2019 165.26
Movement during the year 309.45
Balance as at 31 March 2020 474.71
(ii) Liquidity risk
Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial liabilities
that are settled by delivering cash or another financial asset. Prudent liquidity risk management implies maintaining sufficient
cash and marketable securities, the availability of funding through an adequate amount of committed credit facilities. The
Group’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 Group’s reputation.

ANNUAL REPORT 2019-20 231

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

Maturities of financial liabilities

The table below analyses the Group’s financial liabilities into relevant maturity groupings based on their contractual maturities:

(` in Lakhs)
As at 31 March, 2020 Contractual cash flows
Carrying Total Upto 1 year 1-3 years 3-5 years More than
amount 5 years
Non-derivative financial liabilities
Payable towards acquisition of business 1,345.90 1,441.00 874.00 567.00 - -
Borrowings 3.51 3.51 3.51 - - -
Interest payable on borrowings - 0.06 0.06 - - -
Trade payables 8,503.40 8,503.40 8,503.40 - - -
Other current financial liabilities 2,559.84 2,559.84 2,559.84 - - -
Total 12,412.65 12,507.81 11,940.81 567.00 - -

(` in Lakhs)
As at March 31, 2019 Contractual cash flows
Carrying Total Upto 1 year 1-3 years 3-5 years More than
amount 5 years
Non-derivative financial liabilities
Payable towards acquisition of business 833.93 879.25 617.25 242.00 20.00 -
Non-current Borrowings 20.07 20.06 16.55 3.51 - -
Interest payable on borrowings - 1.29 1.23 0.06 - -
Current borrowings 1,757.86 1,757.86 1,757.86 - - -
Trade payables 4,284.92 4,284.92 4,284.92 - - -
Other current financial liabilities 3,541.90 3,541.90 3,541.90 - - -
Total 10,438.68 10,485.29 10,219.72 245.57 20.00 -
The outflows disclosed in the above table represent the total contractual undiscounted cash flows, which also includes total
interest payables on borrowings.

(iii) Market risk

Market risk is the risk that changes in market prices – such as foreign exchange rates, interest rates and equity prices – will
affect the Group’s income or the value of its holdings of financial instruments. The Group is exposed to market risk primarily
related to foreign exchange rate risk and interest rate risk. The objective of market risk management is to avoid excessive
exposure in our foreign currency revenues and costs.
a. Currency risk
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 Group has foreign currency trade payables and receivables and is therefore exposed to foreign
exchange risk.

Exposure to currency risk (Exposure in different currencies converted to functional currency i.e. INR)

The currency profile of financial assets and financial liabilities as at 31 March 2020 and 31 March 2019 are as below:

(` in Lakhs)
As at 31 March, 2020 SGD EUR GBP USD OMR
Financial assets (A)
Trade and other receivables - - - 361.97 40.85
Advance given 13.25 0.28 0.42 28.90 -
Financial liabilities (B)
Trade and other payables - - 0.32 3.16 -
Advance taken - - - 13.55 6.32
Net exposure (A - B) 13.25 0.28 0.10 374.17 34.52

232 METROPOLIS HEALTHCARE LTD

 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

(` in Lakhs)
As at March 31, 2019 USD OMR
Financial assets (A)
Trade and other receivables 399.14 39.13
Financial liabilities (B)
Advance taken 12.44 6.59
Net exposure (A - B) 386.70 32.54
Sensitivity analysis
A reasonably possible strengthening (weakening) of the Indian Rupee against foreign currencies at 31 March 2020 and 31
March 2019 would have affected the measurement of financial instruments denominated in foreign currencies and affected
Statement of profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular interest
rates, remain constant and ignores any impact of forecast sales and purchases.

Effect in INR 31 March 2020 31 March 2019

Strengthening Weakening Strengthening Weakening
3% movement
USD (11.22) 11.22 (11.60) 11.60
SGD (0.40) 0.40 - -
GBP (0.00) (0.00) - -
OMR (1.04) 1.04 (0.98) 0.98
EUR (0.00) 0.00 (0.00) (0.00)
(12.66) 12.66 (12.58) 12.58

“0” denotes amount below ` 500

(b) Interest rate risk
Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk
of changes in fair values of fixed interest bearing investments. Cash flow interest rate risk is the risk that the future cash flows
of floating interest bearing investments will fluctuate because of fluctuations in the interest rates.

The interest rate profile of the Group’s interest-bearing financial instruments as reported to the management of the Group is
as follows.

(` in Lakhs)
Particulars As at As at
31 March 2020 31 March 2019
Fixed-rate instruments
Financial assets 12,588.76 5,948.80
Financial liabilities (1,345.90) (2,568.40)
11,242.86 3,380.40
Variable-rate instruments
Financial assets - -
Financial liabilities (6,670.21) (20.07)
(6,670.21) (20.07)
Total 4,572.65 3,360.34

ANNUAL REPORT 2019-20 233

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

Cash flow sensitivity analysis for variable-rate instruments

A reasonably possible change of 100 basis points in interest rates at the reporting date would have increased / decreased
equity and profit or loss by amounts shown below. This analyses assumes that all other variables, in particular, foreign
currency exchange rates, remain constant. This calculation also assumes that the change occurs at the balance sheet date
and has been calculated based on risk exposures outstanding as at that date. The year end balances are not necessarily
representative of the average debt outstanding during the year.

(` in Lakhs)
INR Profit or loss
100 bp increase 100 bp decrease
For the year ended 31 March 2020
Variable-rate instruments (66.70) 66.70
Cash flow sensitivity (net) (66.70) 66.70
For the year ended 31 March 2019
Variable-rate instruments (0.20) 0.20
Cash flow sensitivity (net) (0.20) 0.20
(Note: The impact is indicated on the profit/loss and equity before tax basis)

(iv) Capital management

The objective of the Group’s capital management is to ensure that it maintains an efficient capital structure and healthy
capital ratios to support its business and maximize shareholder value.

The Group has equity capital and other reserves attributable to the equity shareholders, as the only source of capital and the
company has insignificant interest bearing borrowings/ debts as on the reporting date. Hence, the Group is not subject to any
externally imposed capital requirements.

42. RELATED PARTY DISCLOSURES, AS REQUIRED BY INDIAN ACCOUNTING STANDARD 24 (IND AS 24) ARE GIVEN BELOW:

A. Relationships –
Category I: Subsidiaries:
Metropolis Histoxpert Digital Services Private Limited
Category II: Associates:
Star Metropolis Health Services Middle East LLC, Dubai (upto 31 March 2019)
Category III: Key Management Personnel (KMP)
Dr. Sushil Kanubhai Shah, Chairman and Executive Director
Ms. Ameera Sushil Shah, Managing Director
Mr Vijender Singh, Chief Executive Officer
Mr Rakesh Agarwal, Chief Financial Officer (w.e.f. 11 November 2019)
Ms. Poonam Tanwani, Company Secretary (w.e.f. 10 February 2020)
Mr Tushar Karnik, Chief Financial Officer (upto 11 November 2019)
Mr Jayant Prakash, Company Secretary (upto 30 November 2019 )
Mr. Mihir Jagdish Doshi, Non-Executive Director (upto 31 March 2020)
Mr. Milind Shripad Sarwate, Independent Director
Mr. Vivek Gambhir, Independent Director
Mr. Sanjay Bhatnagar, Independent Director
Category IV: Relatives of KMP
Dr. Duru Sushil Shah
Mr. Hemant Sachdev

234 METROPOLIS HEALTHCARE LTD

 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

Category V: Companies in which key management personnel or their relatives have significant influence (Other related
parties)
Metz Advisory LLP
Metropolis Health Products Retail Private Limited
Chogori Distribution Private Limited
Centre for Digestive and Kidney Disease (India) Private Limited (upto 6 August, 2019)
B. The transactions with the related parties are as follows:

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
1) Services rendered
Joint Ventures
Metropolis Histoxpert Digital Services Private Limited 17.89 5.55
Relatives of KMP
Dr. Duru Sushil Shah 13.19 17.02
Other related parties
Centre for Digestive and Kidney Disease (India) Private Limited # 300.12 903.48
2) Rent paid
Key Management Personnel
Dr. Sushil Kanubhai Shah 99.48 102.91
3) Compensation paid to Key Management Personnel
Short-term employee benefits^ 962.84 1,159.27
Post employement benefit 21.52 21.16
Share-based payments expense 5.09 38.27
(^As gratuity expense is based on actuarial valuation, the same cannot be computed for individual employees. Hence
not disclosed separately.)
4) Dividend paid
Key Management Personnel
Dr Sushil Kanubhai Shah 298.02 1,325.68
Ameera Sushil Shah 14.55 24.11
Metz Advisory LLP 1,255.30 1,939.95
Relatives of KMP
Dr Duru Sushil Shah 736.74 1,221.14
5) Director sitting fees and Commission
Dr Duru Sushil Shah - 0.15
Mr. Mihir Jagdish Doshi 8.50 15.75
Mr. Milind Shripad Sarwate 18.77 7.25
Mr. Vivek Gambhir 17.52 8.75
Mr. Rajiv Devinder Sahney - 5.00
Mr. Sanjay Bhatnagar 11.27 4.50
6) Advance paid
Chogori Distribution Private Limited - 12.00
7) Investments made
Metropolis Histoxpert Digital Services Private Limited - 194.35
# Excluded from related party after resignation of Dr. Sushil Shah from directorship of the said Company on August 6, 2019.

ANNUAL REPORT 2019-20 235

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

B. The related party balances outstanding at year end are as follows:

(` in Lakhs)
Particulars 31 March 2020 31 March 2019
1) (a) Trade payables
Other related parties
Metropolis Health Products Retail Private Limited 1.87 1.87
(b) Other Payable
Dr. Sushil Kanubhai Shah* 19.86 -
(c) Director Sitting Fees
Mr. Vivek Gambhir 1.00 -
2) Trade receivables
Joint Ventures
Metropolis Histoxpert Digital Services Private Limited 10.03 4.93
Associates
Star Metropolis Health Services Middle East LLC, Dubai** - 598.54
Relatives of KMP
Dr. Duru Sushil Shah 2.45 2.84
Other related parties
Metropolis Health Products Retail Private Limited 41.05 41.05
Centre for Digestive and Kidney Disease (India) Private Limited - 2,082.19
3) Loans and advances including interest accrued
Associates
Star Metropolis Health Services Middle East LLC, Dubai** - 42.35
Other related parties
Metropolis Health Products Retail Private Limited 44.00 44.00
4) Provision for dimunition in value of investments
Associates
Star Metropolis Health Services Middle East LLC, Dubai** - 129.85
5) Provision for doubtful trade receivables
Associates
Star Metropolis Health Services Middle East LLC, Dubai** - 598.54
Other related parties
Metropolis Health Products Retail Private Limited 41.05 41.05
6) Provision for doubtful advances
Associates - 12.00
Star Metropolis Health Services Middle East LLC, Dubai** - 42.35
Other related parties
Metropolis Health Products Retail Private Limited 44.00 44.00
7) Other Receivable
Dr. Sushil Kanubhai Shah - 383.35

* Other payable include payable to Dr. Sushil Shah on account of refund of additional filing fee received from SEBI
** Star Metropolis Health Services Middle East LLC, Dubai is no longer associate. [refer note 54]

236 METROPOLIS HEALTHCARE LTD

 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

43. DETAILS OF SUBSIDIARIES, JOINT VENTURES AND ASSOCIATES

(a) The list of subsidiary companies included in the consolidated financial statements are as under;

(` in Lakhs)
Name of the subsidiary Country of Proportion of ownership interest
incorporation As at 31 March 2020 As at 31 March 2019

Sudharma Metropolis Health Services Private Limited India 100.00% 100.00%

Bokil Golwilkar Metropolis Healthcare Private Limited India 100.00% 100.00%
Raj Metropolis Healthcare Private Limited India 51.00% 51.00%
Desai Metropolis Health Services Private Limited India 100.00% 100.00%
R.V. Metropolis Diagnostics & Healthcare Centre Private Limited India 100.00% 100.00%
Micron Metropolis Healthcare Private Limited India 100.00% 100.00%
Dr. Patel Metropolis Healthcare Private Limited India 100.00% 100.00%
Lab One Metropolis Healthcare Services Private Limited India 100.00% 100.00%
Amins Pathology Laboratory Private Limited India 100.00% 100.00%
Ekopath Metropolis Lab Services Private Limited India 60.00% 60.00%
Metropolis Healthcare (Mauritius) Limited Mauritius 100.00% 100.00%
Metropolis Star Lab Kenya Limited Kenya 100.00% 100.00%
Metropolis Healthcare Ghana Limited Ghana 100.00% 100.00%
Metropolis Healthcare Lanka Private Limited Sri Lanka 100.00% 100.00%
Metropolis Healthcare Tanzania Limited Tanzania 100.00% 100.00%
Metropolis Bramser Lab Services (Mtius) Limited Mauritius 100.00% 100.00%

(b) The list of Joint ventures companies included in the consolidated financial statements are as under;

(` in Lakhs)
Name of Joint ventures Country of Proportion of ownership interest
incorporation
As at 31 March 2020 As at 31 March 2019
Metropolis Histoxpert Digital Services Private Limited India 65.00% 65.00%

(c) The list of Associates companies included in the consolidated financial statements are as under;

(` in Lakhs)
Name of Associates Country of Proportion of ownership interest
incorporation
As at 31 March 2020 As at 31 March 2019
Star Metropolis Health Services Middle East LLC^ United Arab 34.00% 34.00%
Emirates

^ Associate is not accounted in the consolidated financial statements- Refer Note 54

ANNUAL REPORT 2019-20 237

 44. BUSINESS COMBINATIONS
Acquisition of Non controlling interest
(i) Micron Metropolis Healthcare Private Limited
On 6 September 2018, Group acquired additional 15 percent in Micron Metropolis Healthcare Private Limited for ` 283.70 Lakhs
in cash, increasing its ownership from 85 percent to 100 percent. The carrying amount of Micron Metropolis Healthcare Private
Limited net assets in the group’s consolidated financial statements on the date of the acquisition was ` 238.6 Lakhs. The
group consequently recognised a decrease in NCI of ` 35.80 Lakhs. The decrease of ` 247.90 Lakhs represents a decrease in
retained earnings.

The following table summarises the acquisition date transaction:

Amount ` in Lakhs
Carrying value of NCI acquired 35.80
Consideration paid to NCI 283.70
Decrease in equity attributable to owners of the Company (247.90)

(ii) Desai Metropolis Health Services Private Limited

On 6 September 2018, Group acquired additional 18.40 percent in Desai Metropolis Health Services Private Limited for total
consideration of ` 2356.70 Lakhs, out of which ` 1460.88 Lakhs is paid in cash and ` 895.86 Lakhs by issue of equity shares of
Metropolis Healthcare Limited to non controlling shareholders, increasing its ownership from 81.60 percent to 100 percent.
The carrying amount of Desai Metropolis Health Services Private Limited net assets in the group’s consolidated financial
statements on the date of the acquisition was ` 1698.37 Lakhs. The group consequently recognised a decrease in NCI of `
312.5 Lakhs. The decrease of ` 2044.20 Lakhs represents a decrease in retained earnings.

The following table summarises the acquisition date transaction:

Amount ` in Lakhs
Carrying value of NCI acquired 312.50
Consideration paid / payable to NCI 2,356.70
Decrease in equity attributable to owners of the Company (2,044.20)

(iii) Sudharma Metropolis Health Services Private Limited

On 6th September 2018, Group acquired additional 10 percent in Sudharma Metropolis Health Services Private Limited for
total consideration of ` 1320 Lakhs, out of which ` 795.90 Lakhs is paid in cash and ` 524.10 Lakhs by issue of equity shares
of Metropolis Healthcare Limited to non controlling shareholders, increasing its ownership from 90 percent to 100 percent.
The carrying amount of Sudharma Metropolis Health Services Private Limited net assets in the group’s consolidated financial
statements on the date of the acquisition was ` 3769.40 Lakhs. The group consequently recognised a decrease in NCI of `
376.90 Lakhs. The decrease of ` 943.10 Lakhs represents a decrease in retained earnings.

The following table summarises the acquisition date transaction:

Amount ` in Lakhs
Carrying value of NCI acquired 376.90
Consideration paid to NCI 1,320.00
Decrease in equity attributable to owners of the Company (943.10)

(iv) R.V. Metropolis Diagnostics & Healthcare Centre Private Limited

On 6 September 2018, Group acquired additional 23.26 percent in R.V. Metropolis Diagnostics & Healthcare Centre Private
Limited for total consideration of ` 2016.70 Lakhs, out of which ` 1192.10 Lakhs is paid in cash and ` 824.60 Lakhs by issue
of equity shares of Metropolis Healthcare Limited to non controlling shareholders, increasing its ownership from 76.74
percent to 100 percent. The carrying amount of R.V. Metropolis Diagnostics & Healthcare Centre Private Limited net assets
in the group’s consolidated financial statements on the date of the acquisition was ` 1760.5 Lakhs. The group consequently
recognised a decrease in NCI of ` 409.50 Lakhs. The decrease of ` 1607.20 Lakhs represents a decrease in retained earnings.

238 METROPOLIS HEALTHCARE LTD

 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

The following table summarises the acquisition date transaction:

Amount ` in Lakhs
Carrying value of NCI acquired 409.50
Consideration paid to NCI 2,016.70
Decrease in equity attributable to owners of the Company (1,607.20)

(v) Dr. Patel Metropolis Healthcare Private Limited

On 6 September 2018, Group acquired additional 30 percent in Dr. Patel Metropolis Healthcare Private Limited for ` 849.30
Lakhs in cash, increasing its ownership from 70 percent to 100 percent.

As per share purchase agreement, upon payment of initial consideration of ` 768.90 Lakhs, an amount of ` 100 Lakhs is to be
paid by Metropolis Healthcare Limited in 2 tranches (` 80 Lakhs to be paid on 14 September 2021 and remaining ` 20 Lakhs to
be paid on 14 September 2023).

The deferred consideration of ` 100 Lakhs has been meaured at fair value (` 80.40 Lakhs) on initial recognition and the
difference of ` 19.60 Lakhs will be recognised as finance cost on EIR basis over the payment tenure. During year ended 31
March 2020 ` 5.54 Lakhs (31 March 2019 ` 2.92 Lakhs) charged to statement of profit and loss (Refer note 34).

The carrying amount of Dr. Patel Metropolis Healthcare Private Limited net assets in the group’s consolidated financial
statements on the date of the acquisition was ` 684.70 Lakhs. The group consequently recognised a decrease in NCI of `
205.40 Lakhs. The decrease of ` 643.9 Lakhs represents a decrease in retained earnings.

The following table summarises the acquisition date transaction:

Amount ` in Lakhs
Carrying value of NCI acquired 205.40
Fair value consideration paid / payable to NCI 849.30
Decrease in equity attributable to owners of the Company (643.90)
(vi) Lab One Metropolis Healthcare Services Private Limited
On 6 September 2018, Group acquired additional 49 percent in Lab One Metropolis Healthcare Services Private Limited for
total consideration of ` 1073.50 Lakhs, out of which ` 683.90 Lakhs is paid in cash and ` 389.60 Lakhs by issue of equity shares
of Metropolis Healthcare Limited to non controlling shareholders, increasing its ownership from 51% percent to 100 percent.
The carrying amount of Lab One Metropolis Healthcare Services Private Limited net assets in the group’s consolidated
financial statements on the date of the acquisition was ` 366.90 Lakhs. The group consequently recognised a decrease in NCI
of ` 179.80 Lakhs. The decrease of ` 893.70 Lakhs represents a decrease in retained earnings.

The following table summarises the acquisition date transaction:

Amount ` in Lakhs
Carrying value of NCI acquired 179.80
Consideration paid to NCI 1,073.50
Decrease in equity attributable to owners of the Company (893.70)

(vii) Bokil Golwilkar Metropolis Healthcare Private Limited

On 11 February 2019, Group acquired additional 24 percent in Bokil Golwilkar Metropolis Healthcare Private Limited for ` 192
Lakhs in cash, increasing its ownership from 76 percent to 100 percent.

As per share purchase agreement, upon payment of initial consideration of ` 132 Lakhs, an amount of ` 60 Lakhs is to be
paid by Metropolis Healthcare Limited in 2 tranches (` 40 Lakhs to be paid on August 10, 2019 on fulfilment of agreed upon
conditions and remaining ` 20 Lakhs to be paid on February 10, 2022).

ANNUAL REPORT 2019-20 239

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

The deferred consideration of ` 60 Lakhs has been measured at fair value (` 55.22 Lakhs) on initial recognition and the
difference of ` 4.78 Lakhs will be recognised as finance cost on EIR basis over the payment tenure. During year ended 31
March 2020 ` 2.15 Lakhs (31 March 2019 ` 0.33 Lakhs) charged to statement of profit and loss (Refer note 34).

The carrying amount of Bokil Golwilkar Metropolis Healthcare Private Limited net assets in the group’s consolidated financial
statements on the date of the acquisition was ` 505.19 Lakhs. The group consequently recognised a decrease in NCI of `
121.24 Lakhs. The decrease of ` 65.98 Lakhs represents a decrease in retained earnings.

The following table summarises the acquisition date transaction:

Amount ` in Lakhs
Carrying value of NCI acquired 121.24
Fair value consideration paid / payable to NCI 187.22
Decrease in equity attributable to owners of the Company (65.98)

(viii) Acquisition of Sanjeevani Pathology Laboratory

During the earlier years, the Company has entered into a business purchase agreement to acquire Sanjeevani Pathology
Laboratory located at Rajkot for an initial purchase consideration of ` 4,104.00 Lakhs, an amount of ` 2,300.00 Lakhs is to be
paid by the Company to Dr. Kiritkumar Patel, owner of Sanjeevani Pathology Laboratory in 7 tranches starting from February
2017 to March 2021.

The deferred consideration of ` 2,300.00 Lakhs has been measured at fair value (` 2,100.96 Lakhs) on initial recognition
and the difference of ` 199.04 Lakhs (31 March 2019 : ` 199.04 Lakhs) will be recognise as finance cost on EIR basis over the
payment tenure; During year ended 31 March 2020 ` 16.44 Lakhs (31 March 2019 ` 36.88 Lakhs) charged to statement of profit
and loss (refer note 34).

(ix) Acquisition of four laboratories by Desai Metropolis health Services Private Limited
During the year, Desai Metropolis health Services Private Limited a subsidiary of the Company has entered into a business
purchase agreement to acquire Four Laboratories (Yash Lab, Nagar lab, Doctor Lab and Iyyer Lab) located at Surat for an
initial purchase consideration of ` 1,800.00 Lakhs. The amount of ` 1,800.00 Lakhs is to be paid by the Desai Metropolis health
Services Private Limited to the owners of these laboratories in 3 tranches starting from September 2019 to September 2021.

Particulars Amount ` in Lakhs

Property, Plant and Equipments 48.50
Cash and Bank 0.27
Goodwill 1,173.90
Brand 285.51
Customer Rights 210.04
Total 1,718.22
The deferred consideration of ` 1,800.00 Lakhs has been measured at fair value (`1,690.72 Lakhs) on initial recognition and
the difference of ` 109.28 Lakhs will be recognise as finance cost on EIR basis over the payment tenure; During year ended 31
March 2020 ` 35.38 Lakhs charged to statement of profit and loss.

240 METROPOLIS HEALTHCARE LTD

 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

45. NON CONTROLLING INTERESTS

Below is the partly owned subsidiary of the Company and the share of the non-controlling interests.

(` in Lakhs)
Name Country of As at 31 March 2020 As at 31 March 2019
Incorporation
Raj Metropolis Healthcare Private Limited India 49.00% 49.00%
Ekopath Metropolis Lab Services Private Limited India 40.00% 40.00%
The principal place of business of the entity listed above is the same as their respective country of incorporation.
None of the above non-wholly owned subsidiary is material to the Group. Therefore, financial information about these non-wholly
owned subsidiaries are not disclosed separately

46. EQUITY ACCOUNTED INVESTEES

(` in Lakhs)
Name Country of Proportion of ownership interest
incorporation As at 31 March 2020 As at 31 March 2019
Metropolis Histoxpert Digital Services Private Limited* India - 51.98
1,950,000 (31 March 2019:1,950,000) Equity shares of Face value of `
10 each (Fully paid up)
Investment in Associates
Star Metropolis Health Services Middle East LLC ^ United Arab - -
Emirates
1,020 (31 March 2019: 1,020) Equity shares of AED of 1,000 each (Fully
Paid up)
- 51.98
^ The value of investment in associate Star Metropolis Health Services Middle East LLC is ` 129.85 Lakhs (31 March 2019: ` 129.85
Lakhs ). The same has been fully provided. Please refer note 54.
* The value of investment in Joint venture Metropolis Histoxpert Digital Services Private Limited adjusted with profit or Loss to the
extent of investment value.
Investment in Joint Ventures
a) Metropolis Histoxpert Digital Services Private Limited
During the year ended 31 March 2018, the Group has acquired 65% interest in Metropolis Histoxpert Digital Services Private
Limited, a Joint Venture involved in providing pathology services in India. The Group’s interest in the entity is accounted for
using the equity method in the consolidated financial statements. Summarised financial information of the joint venture and
reconciliation with the carrying amount of the investment in consolidated financial statements are set out below:

(` in Lakhs)
As at As at
31 March 2020 31 March 2019
Percentage ownership interests 65% 65%
Non-current assets 4.79 4.30
Current assets (including cash and cash equivalents 31 March 2019: ` 101.57 29.92 109.06
Lakhs)
Current liabilities (Current financial liabilities other than trade payables and 41.22 33.38
other financial liabilities and provisions - 31 March 2019: ` 33.38 Lakhs
Net Assets (6.51) 79.97
Group's share of net assets (65%) (4.23) 51.98
Carrying value of interest in Joint Ventures - 51.98

ANNUAL REPORT 2019-20 241

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

(` in Lakhs)
For the year ended For the year ended
31 March 2020 31 March 2019
Percentage ownership interests 65% 65%
Revenue 41.63 17.44
Depreciation and amortisation 0.94 0.66
Interest expense - -
Income tax expense - -
Profit/(Loss) (86.48) (220.03)
Other comprehensive income - -
Total comprehensive income (86.48) (220.03)
Group share of profits (65%) (56.21) (143.02)
Group share of OCI (65%) - -
Group share of total comprehensive income (65%) (56.21) (143.02)

47. CONTINGENT LIABILITIES NOT PROVIDED FOR

(` in Lakhs)
31 March 2020 31 March 2019
Income tax liability disputed in appeals 139.90 139.90
Due to others 394.33 232.36
Claims against the Group not acknowledged as debt :
- Claims by suppliers/contractors /others 265.70 138.37
- Claims pending in Consumer Dispute Redressal Forum 171.81 40.60
Contingent consideration on acquisition of remaining stake of subsidiary* 759.38 759.38
1,731.11 1,310.61

*The Holding Company has entered into a share purchase agreement to buy remaining 30% stake of Golwilkar Metropolis Health
Services (India) Private Limited. For purchase of remaining stake, consideration to be paid as per valuation of Golwilkar has been
determined to be ` 3037.51 Lakhs. However, on account of a breach of non-compete provision as per the terms of the shareholder’s
agreement dated October 14, 2005, the Holding Company has filed an application before a sole arbitrator- Justice A.V. Nirgude
(Retired) at Mumbai against Dr. Ajit S. Golwilkar, Dr. Awanti T. Mehendale and Dr. Vinanti N. Patankar (“Respondents”), claiming 25%
of consideration determined i.e. ` 759.38 Lakhs as damages. The matter is currently pending before the arbitrator.

242 METROPOLIS HEALTHCARE LTD

 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

48. COMMITMENTS

(` in Lakhs)
31 March 2020 31 March 2019
Capital commitments:
Estimated amount of contracts remaining to be executed on capital account not 1,362.68 953.40
provided for
Other commitments:
(i) The Holding Company has entered into reagent purchase agreement for a period ranging from 3 to 6 years with some of its
major raw material suppliers to purchase agreed value of raw materials.

(ii) The value of purchase commitments for the remaining number of years are ` 48,140.09 Lakhs (31 March 2019: ` 42,855.62
Lakhs) of which annual commitment for next year is ` 13,165.08 Lakhs (31 March 2019: ` 15,694.49 Lakhs) as per the terms of
these arrangements.

49. AUDITORS’ REMUNERATION*

(` in Lakhs)
31 March 2020 31 March 2019
Audit fees 99.52 95.36
Limited Review Fees 28.00 -
Certification Fees 3.00 3.00
Others (including reimbursement of out of pocket expenses) 2.85 10.30
Total 133.37 108.66
*In addition to above 31 March 2020 : Nil (31 March 2019: ` 206.57 Lakhs) was paid to auditors in relation to services of Initial Public
Offer (IPO) which has been borne by the selling shareholders of the Company.

50.
(a) Reconciliation of revenue from contracts with customers

(` in Lakhs)
31 March 2020 31 March 2019
Revenue from contract with customer as per the contract price 84,443.17 75,197.89
Adjustments made to contract price on account of :-
Discount / Rebates 1,141.66 807.70
Revenue from contract with customer 85,584.83 76,005.59
Other operating revenue 55.71 112.59
Revenue from operations 85,640.54 76,118.18
(b) Disclosure As Per Ind AS 115 - Revenue From Contracts With Customers

(` in Lakhs)
31 March 2020 31 March 2019
Contract asset- unbilled revenue - -
Contract liabilities - Advance from Customers
Opening Balance 379.52 275.18
Movement during the year (13.30) 104.34
Closing Balance 366.22 379.52

ANNUAL REPORT 2019-20 243

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

51. EMPLOYEE BENEFITS

(a) Defined benefits plan
The Group has gratuity as defined benefit retirement plan for its employees. Disclosures as required by Ind AS 19 are as under:

(` in Lakhs)
As at As at
31 March 2020 31 March 2019
A. Amount recognised in the balance sheet
Present value of the obligation as at the end of the year 1,247.88 882.56
Fair value of plan assets as at the end of the year (105.85) (111.49)
Net liability recognised in the balance sheet 1,142.03 771.07
Out of which,
Non-current portion 541.40 316.08
Current portion 600.63 454.99
B. Change in projected benefit obligation
Projected benefit obligation at the beginning of the year 882.56 889.28
Current service cost 109.23 111.51
Interest cost 66.09 62.84
Actuarial loss/(gain) 74.75 (75.34)
Benefits paid 177.63 (101.75)
Liability transferred out (62.38) (3.98)
Projected benefit obligation at the end of the year 1,247.88 882.56
C. Change in plan assets
Fair value of plan assets at the beginning of the year 111.49 149.55
Interest income 8.34 9.76
Return on plan assets (excluding Interest income) (1.79) (0.84)
Employer contributions - 12.86
Benefits paid (12.19) (59.84)
Fair value of plan assets at the end of the year 105.85 111.49
D. Amount recognised in the statement of profit and loss
Current service cost 109.23 111.51
Interest cost 57.75 53.09
Expenses recognised in the statement of profit and loss 166.98 164.60
E. Amount recognised in other comprehensive income
Actuarial loss/(gain) on Defined benefit obligation 276.23 (75.34)
Return on plan assets (excluding Interest income) 1.79 0.84
278.02 (74.50)
F. Plan Assets include Insurance Funds
G. Assumptions used
Discount rate 5.21%-6.59% 6.96%-7.64%
Long-term rate of compensation increase 4.50%-5.50% p.a. 7.00%
for the next 3 years,
7.00%-7.50% p.a.
thereafter, starting
from the 4th year

244 METROPOLIS HEALTHCARE LTD

 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

(` in Lakhs)
As at As at
31 March 2020 31 March 2019
Rate of return on plan assets 5.21%-6.43% 6.96%-7.64%
Attrition rate 11%-36% For service 4 years
and below 35.00%
p.a. For service 5
years and above
4.00% p.
Mortality Rate Indian Assured Lives Indian Assured Lives
Mortality (2006-08) Mortality (2006-08)
The weighted average duration of the defined benefit obligation is 4 years (31 March 2019 :12 years) for all year presented
above.

H. Sensitivity analysis
Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other
assumptions constant, would have affected the defined benefit obligation by the amounts shown below.

31 March 2020 31 March 2019

Increase Decrease Increase Decrease
Discount rate (1% movement) (35.22) 38.09 (79.65) 94.02
Future salary growth (1% movement) 36.69 (34.17) 90.63 (78.65)
Employee Turnover (1% movement) (6.01) 6.24 1.31 0.55

I. Expected future cash flows

(` in Lakhs)
Particulars Less than Between Between Over 5 Total
a year 1-2 years 2-5 years years
31 March 2020
Defined benefit obligations (Gratuity) 332.04 232.59 471.14 502.43 1,538.19
Total 332.04 232.59 471.14 502.43 1,538.19

(` in Lakhs)
Particulars Less than Between Between Over 5 Total
a year 1-2 years 2-5 years years
31 March 2019
Defined benefit obligations (Gratuity) 76.95 63.20 160.51 1,981.37 2,282.03
Total 76.95 63.20 160.51 1,981.37 2,282.03
(b) Defined contribution plan
The Group entities domiciled in India contributes towards statutory provident fund as per the Employees Provident Funds and
Miscellaneous Provisions Act, 1952 and towards employee state insurance as per the Employees’ State Insurance Act, 1948.
Entities of the Group domiciled outside India also contributes to social security schemes as per the relevant regulations of the
country for the welfare of the employees. These are defined contribution plans as per Ind AS - 19. The amount of contribution
to provident fund and Employee State Insurance Scheme recognised as expenses during the year 31 March 2020: ` 849.38
Lakhs (31 March 2019: ` 818.18 Lakhs).

(c) Employee Stock Option Schemes

Description of share-based payment arrangements:
As at 31 March 2020 and 31 March 2019 Company had following share-based payment arrangements:

ANNUAL REPORT 2019-20 245

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

MESOS 2007 -
In the earlier years, Company had instituted an Employees Stock Option Scheme called “Metropolis Employee Stock Option
Scheme, 2007 (MESOS -2007)” and subsequently adopted a revised scheme on 2 June 2009 titled “MESOS – 2007 revised” as
approved by the Board of directors and Nomination and Remuneration Committee. All the options which were granted under
this scheme are vested as of 1 April 2016.

The Company has elected not to apply Ind AS 102 Share-based payment to equity instruments that vested before the date of
transition to Ind AS. Accordingly, the Company has measured only the unvested stock options on the date of transition as per
Ind AS 102.

MESOS 2015 -
The Company has instituted “Metropolis Employee Stock Option Plan 2015 “(MESOP 2015) for eligible employees. In terms of
the said plan, options to the employees shall vest at the rate of 30% of Grant on 36 months from Grant Date, 35% of Grant on
48 months from Grant Date and 35% of Grant on 60 months from Grant Date. The vested options can be exercised on earlier
of Listing of Company Shares on an Indian Stock Exchange or 60 month from the date of the grant. Further option can only be
exercised during the exercise window specified by the Company. Each Option carries with it the right to purchase one equity
share of the Company at the exercise price determined by Nomination and Remuneration Committee.

On 19 September 2017, consent was given by the Nomination and Remuneration Committee, where in vesting schedule was
modified to grant options under Metropolis Employee Stock Options Scheme, 2015 (MESOS 2015). As per modified terms,
option to

- Existing employees (person who is in continuous employment with the Company since 1 January, 2016 or prior thereto)
shall vest at the rate of 50% of Grant on 1 January 2018, 25% of Grant on 1 January 2019 and 25% of Grant on 1 January
2020.
- New employees (person who is in continuous employment with the Company after 01 January, 2016.) shall vest at the rate
of 50% of Grant on completion of 2 years from date of joining, 25% of Grant on completion of 3 years from date of joining
and 25% of Grant on completion of 4 years from date of joining.
- No additional options to be granted to stock options under MESOS 2015 as per the resolution dated 24 September 2018,
passed by the Nomination & Remuneration Committee .

Grant date / employees Number of Vesting conditions Contractual life of options

entitled instruments
MESOS 2007 - Option 1,27,315 For the Options to vest, The exercise period for Options vested will be two years
granted to eligible the Grantee has to be from date of vesting subject to shares of the company
employees on 1 October in employment of the are listed at the time of exercise.
2007 Metropolis Group on the In case of exercise period expires prior to date of listing,
date of the vesting. options can be exercised immediately but in no event
later than 3 months from the date on which shares are
listed
MESOS 2015 - Option 27,800 For the Options to vest, The exercise period for Options vested will begin on
granted to eligible the Grantee has to be earlier of
employees on 25 April in employment of the (a) Listing of Company shares on an Indian Stock
2016 Metropolis Group on the Exchange or
date of the vesting.
(b) during the exercise window to be specified
individually by Nomination and Remuneration
Committee of the Company.
MESOS 2015 - Option 1,85,550 For the Options to vest, The exercise period for Options vested will begin on
granted to eligible the Grantee has to be earlier of
employees on 16 in employment of the (a) Listing of Company shares on an Indian Stock
October 2017 Metropolis Group on the Exchange or
date of the vesting.
(b) during the exercise window to be specified
individually by Nomination and Remuneration
Committee of the Company.

246 METROPOLIS HEALTHCARE LTD

 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

Reconciliation of Outstanding share options

The number and weighted-average exercise price of share options under the share share option plans are as follows:

MESOS 2007

31 March 2020 31 March 2019

Weighted Number of Weighted Number of
average Options average options
exercise price exercise price
Outstanding at the beginning of the year 100 - 100 42,675
Granted during the year 100 - 100 -
Exercised during the year (pre bonus and split issue) 100 - 100 (32,800)
Lapsed/ forfeited /buy back 100 - 100 (9,875)
Outstanding at the end of the year 100 - 100 -
Exercisable at the end of the year 100 - 100 -
MESOS 2015

31 March 2020 31 March 2019

Weighted Number of Weighted Number of
average Options average options
exercise price exercise price
Outstanding at the beginning of the year 705.77 10,80,400 3670* 2,07,770
Granted during the year - - - -
Granted due to bonus issue - 705.77 8,310
Granted due to split of shares - 705.77 8,64,320
Exercised during the year 705.77 4,51,886 - -
Lapsed/ forfeited /surrendered - 68,199 - -
Outstanding at the end of the year 705.77 5,60,315 705.77 10,80,400
Exercisable at the end of the year - 705.77 -
* on account of split & bonus with conversion factor of 5.2

The options outstanding at 31 March 2020 have an exercise price of ` 705.77 (31 March 2019 have an exercise price of ` 705.77)
and a weighted average remaining contractual life of 6 months to 2 years (31 March 2019: 6 months to 2 years)

The expense arising from MESOS 2015 scheme during the year is ` 72.38 Lakhs (31 March 2019 ` 88.44 Lakhs);

Measurement of Fair value

The fair value of employee share options has been measured using Black Scholes Option Pricing Model and is charged to
Consolidated Statement of Profit and Loss. The fair value of the options and the inputs used in the measurement of the grant
date fair values of the equity settled share based payment plans are as follows:

(` in Lakhs)
Grant date MESOS 2015 Description of inputs used
16 October 2017 25 April 2016
Fair value at grant date 142.80 66.00
Share price at grant date 2,910.00 2,289.00
Exercise price 3,670.00 3,670.00
"Expected volatility 16.04% 16.70% Expected volatility of the option is
(Weighted average volatility)" based on historical volatility, during
a period equivalent to the option life

ANNUAL REPORT 2019-20 247

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

(` in Lakhs)
Grant date MESOS 2015 Description of inputs used
16 October 2017 25 April 2016
Expected life (expected weighted average life) 1.64 years 4.05 years
Expected dividends 3% 3% Dividend yield of the options is based
on recent dividend activity.
Risk-free interest rates (Based on government 6.35% 7.42% Risk-free interest rates are based on
bonds) the government securities yield in
effect at the time of the grant.

Particulars Number of Options Amount (` Lakhs)

Securities Premium (Exercise price (705.77) less Face value per share (2)) 4,51,886 3,180.23
General Reserve (Fair Value - 142.8 per Option) * 4,51,886 124.10
Equity Shares (Face value ` 2 per share) 4,51,886 9.03

* Fair value of the option has been adjusted post effect of bonus and share split

52. SEGMENT REPORTING

a. Basis for segmentation
The operations of the Group are limited to one segment viz. Pathology service. The services being provided under this
segment are of similar nature and comprises of pathology and related healthcare services only.

The Group’s Chief Operating Decision Maker (CODM) reviews the internal management reports prepared based on an
aggregation of financial information for all entities in the Group (adjusted for intercompany eliminations, adjustments etc.) on
a periodic basis.

b. Geographic information
The geographic information analyses the Group’s revenues and non-current assets by the Company’s country of domicile and
other countries. In presenting geographic information, segment revenue has been based on the selling location in relation to
sales to customers and segment assets are based on geographical location of assets.

(` in Lakhs)
31 March 2020 31 March 2019
Revenue from external customers
India 80,696.12 71,167.53
Outside India 4,856.65 4,838.06

(` in Lakhs)
31 March 2020 31 March 2019
Non-current assets (other than financial instruments and deferred tax assets)
India 31,331.28 21,964.75
Outside India 834.54 845.50
c. Major customers
Revenue contributed by any single customer, does not exceed ten percent of the Group’s total revenue.

248 METROPOLIS HEALTHCARE LTD

 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

53. CORPORATE SOCIAL RESPONSIBILITY (CSR)

The Group has spent during the year ended 31 March 3020: ` 76.97 Lakhs, year ended 31 March 2019: ` 79.45 Lakhs towards various
schemes of Corporate Social Responsibility as prescribed under section 135 of the Companies Act, 2013.

a) Gross amount required to be spent by the Group during the year ended 31 March 2020: ` 298.86 Lakhs (31 March 2019: ` 293.79
Lakhs)
b) Amount spent during the year on;

(` in Lakhs)
Particulars 31 March 2020
In Cash Yet to be paid in Total
Cash
Construction / acquisition of any asset - - -
On purposes other than (i) above 76.97 - 76.97

(` in Lakhs)
Particulars 31 March 2019
In Cash Yet to be paid in Total
Cash
Construction / acquisition of any asset - - -
On purposes other than (i) above 79.45 - 79.45
c) During the previous year ended 31 March 2019, the Company has filed necessary application under section 441 with the relevant
regulatory authorities for compounding the non - compliance committed under section 134(3)(o) read with section 135 of the
Companies Act, 2013 in respect of disclosure regarding corporate social responsibility in the report of Board of Directors for
the year ended on 31 March, 2015.

As at balance sheet date, the Company is awaiting response from the relevant regulatory authorities for the application filed
under section 441 of the Companies Act, 2013, for compounding of the non - compliance committed under section 134(3)(o)
read with section 135 of the Companies Act, 2013 in respect of disclosure regarding corporate social responsibility in the
Boards’ Report for the year ended on March 13, 2015. However, the management has provided the amount of potential penalty
in the books of accounts and believes that the additional penalty, if any, that may arise due to the default would not be material.

54. INVESTMENT AND RECEIVABLE FROM STAR METROPOLIS HEALTH SERVICES MIDDLE EAST LLC
As at 31 March 2020, the Company has an investment of ` 129.85 Lakhs (31 March 2019 ` 129.85 Lakhs) and receivable of ` 640.88
Lakhs (31 March 2019 ` 640.88 Lakhs) from Star Metropolis Health Services Middle East LLC (‘Star Metropolis’). Since the information
has not been forthcoming for many years, Management has decided to discontinued to recognize the said entity as an associate
from the current year and has filed an application to Reserve Bank of India (RBI) through Authorised Dealer Bank seeking permission
to write off the above investment and receivable.

55. SHARE WARRANTS ISSUED

On 31 December 2015, the Company had issued 1 warrant on preferential basis to Metz Advisory LLP which forms part of the public
shareholders of the Company. At the time of subscription, ` 0.20 Lakhs has been paid and the balance is payable at the time of
exercising the warrant.

As per the terms, warrant shall upon occurrence of a Warrant Exercise Event and payment of Warrant Exercise Price of ` 2,579/- is
convertible into 8,703 equity or 11,778 shares of face value of ` 10 depending on the occurrence of qualifying merger up to 31 March
2016.

ANNUAL REPORT 2019-20 249

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

Since, as on 31 March 2016, the warrants are convertible into variable number of shares at a predetermined fixed price at the time of
warrant exercise event, such warrants will meet the definition of liability as per Ind AS 32. Accordingly, the Company has classified
money received on issue as liability as on 31 March 2016.
As per the terms as on 1 April 2016, such warrant shall upon occurrence of a Warrant Exercise Event and payment of Warrant
Exercise Price of ` 2,579/- is convertible into 8,703 equity shares of face value of ` 10.

Since, the warrants are converted into fixed number of shares at a predetermined fixed price at the time of warrant exercise event,
such warrants will meet the definition of an equity instrument as per Ind AS 32. Accordingly, the Company has classified money
received on issue as Equity as on 1 April 2016.

During the previous year ended 31 March 2019, such Share warrants were exercised at an exercise price of ` 2,579/- per share. The
Company has been received ` 224.45 Lakhs, of which ` 0.87 Lakhs has been recognised in Equity and ` 223.58 Lakhs has been
recognised under Share premium.

56. TRANSFER PRICING

The Group’s management is of the opinion that its international and domestic transactions are at arm’s length as per the independent
accountants report for the year ended 31 March 2019. Management continues to believe that its international transactions post 31
March 2019 and the specified domestic transactions are at arm’s length and that the transfer pricing legislation will not have any
impact on these financial statements, particularly on amount of tax expense and that of provision of taxation.

57. AMALGAMATION
Pursuant to the Scheme of Amalgamation (the Scheme) sanctioned by the Hon’ble National Company Law Tribunal (NCLT) vide its
order dated August 31 2018, Bacchus Hospitality Services and Real Estate Private Limited and Wholly owned Subsidiary Companies
- Metropolis Healthcare (Chandigarh) Private Limited, Metropolis Healthcare (Jodhpur) Private Limited, Final Diagnosis Private
Limited, Sanket Metropolis Health Services (India) Private Limited, Golwilkar Metropolis Health Services (India) Private Limited
have been merged with the Holding Company with effect from April 1, 2018 (the appointed date). The said Scheme was sanctioned
by the Hon’ble NCLT, Mumbai Bench vide its order dated August 31, 2018.
a) Pursuant to scheme of merger of wholly owned subsidiaries, the entire business and all assets and liabilities, income and
expense shall be deemed to have been carried out by Metropolis Healthcare Limited with effect from appointed date of April
1, 2018.

b) Bacchus holds 2,657,730 fully paid up equity shares of INR 10 each of the Company i.e. 27.85% of the total outstanding equity
share capital of the Company. Pursuant to the scheme, 957,713 fully paid up equity shares of INR 10 each of the Company
has been issued and allotted, credited as fully paid up, for every 10,00,000 equity shares of INR 10 each held in the Company.
Shares held by Bacchus in the Company will be cancelled and any difference on cancellation of shares over the issue of new
equity shares shall be adjusted with Security Premium arising, if any, on issue of new equity shares.

58. SHAREHOLDING IN THE SUBSIDIARY COMPANY :

Metropolis Healthcare Lanka Private Limited (Metropolis Lanka) has bought back 250,000 ordinary shares held by Nawaloka
Hospitals PLC (“Nawaloka”) in Metropolis Lanka pursuant to memorandum of understanding (MOU) dated 31 March 2017. As per
the MOU, the buy-back consideration payable by Metropolis Lanka was adjusted against certain receivables payable by Nawaloka
to Metropolis Lanka. As at 31 March 2020, Metropolis Lanka has not filed relevant forms with Registrar of the Company in respect
of share transfer. Currently, the shareholding records in the books of Metropolis Lanka assumes that the buy-back has been
effectuated as per the MOU and Metropolis Healthcare Limited is reflected as 100% owner of Metropolis Lanka.

250 METROPOLIS HEALTHCARE LTD

 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

59. IMPACT OF THE COVID-19 PANDEMIC, SCHEDULE, IF ANY, FOR RESTARTING THE OPERATIONS AND STEPS TAKEN TO
ENSURE SMOOTH FUNCTIONING OF OPERATIONS:

Operations : The Company were operating at sub optimal levels following Government directives on lockdown in March 2020. While
most of the economic activity were at halt during the lockdown period, the healthcare sector continued operations under the
Essentials Commodities Act. Accordingly, the Company continued to service customers across channels.

As permissions on resumption and relaxations in the lockdown guidance came from mid-April 2020 onwards, the Company
witnessed an uptick in demand from customers across various segments.

The Company has undertaken safety measures across our labs and collection centre and are following increased protocols to
ensure our people are safe and secure. The Company has gradually been ramping up capacities across our laboratories, collection
centre and geographies, on a daily basis.

The Company were the First Pvt lab in the country to start testing for Covid-19 in end March 2020. With the best TAT, continuous
medical engagement with doctors and government authorities, strong branding and customer equity, the Company were
successful in churning out Covid-19 tests. Initially the testing lab was set up at our Global Reference Lab in Mumbai however as
volumes increased the Company set up Covid-19 facility at Thane and subsequently at Chennai, Bengaluru, Pune and Delhi.

Customers: Due to lockdown situation in India, the Company had reduced samples across B2B & B2C channels in March which
continued till Mid-April 2020. In end April, full resumption of operations has started which has gradually increased in May 2020 and
the movement of samples and customer walk-ins are ramping up on a steady state basis.

Financial resources, profitability and liquidity position: The Company has comfortable liquidity position being a net cash company
with zero debt. There may be some impact on receivable cycle from B2B business, however, the Company foresees no major risk
on receivables. Company’s B2C business doesn’t carry risk of recovery of assets since large part of the business is on cash and
carry model.

Estimation of the future impact of COVID-19 on its operations: The Company believe there will be impact in revenue and profitability
for Q1FY21 as operations were partially operating in April 2020 and were gradually ramping up in May 2020.

Last 15 days of March 2020 witnessed sharp revenue degrowth of 40-50% on YoY basis. In April 2020, the Company achieved
approximately 40% of the revenue clocked in April 2019. With improving logistics, improving engagement with doctors and Covid-19
testing scaling up, The Company has been able to achieve approximately 60-65% of May 2019 revenues in May 2020 (till 28th May
2020). The Company expect improvement to continue in June 2020 as well, as increase in specialized tests, Covid-19 testing and
doctors clinic open up for getting access to routine samples.

Accordingly, April 2020 witnessed negative EBITDA followed by Breakeven EBITDA in May so far and expect to clock positive
EBITDA in June 2020. The Company has also commenced operations at 50% of the network. Further the Company has initiated
cost rationalization measures and have been successful in reducing fixed and semi-variable costs by more than 20%.

Considering that the situation is exceptional and is changing dynamically, the Company is not in a position to gauge with certainty,
the future impact on its operations. However, the Company is confident about adapting to the changing business environment and
respond suitably to fulfil the needs of its customers. With strong balance sheet having cash and cash equivalents in excess of `
200,00 Lakhs, asset light business and leadership position in markets of our operations, The Company is well placed to tide over
the current crisis and emerge stronger.

60. SUBSEQUENT EVENTS:

• On 16 January 2020, the Company has entered into a share purchase agreement to acquire 51% stake in Shraddha Diagnostic
Centre (I) Private Limited (Shraddha Diagnostic) for an aggregate consideration of Rs 936.30 Lakhs to its strengthen the
presence in the state of Gujarat. Subsequent to the balance sheet date the transaction pending to consummated
• Impact due to Covid-19 in the FS and company operation (Refer note 59 )

ANNUAL REPORT 2019-20 251

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

61. DISCLOSURE OF ADDITIONAL INFORMATION PERTAINING TO THE HOLDING COMPANY AND SUBSIDIARIES AS PER
SCHEDULE III OF COMPANIES ACT, 2013

Net Assets (Total Assets minus Total Liabilities)

Name of the Company As at 31 March 2020 As at 31 March 2019

As % of Net Assets As % of Net Assets
Consolidated Consolidated
net assets net assets
Holding Company
Metropolis Healthcare Limited 98.25% 51,433.46 99.25% 41,540.41
Indian Subsidiaries
Direct Subsidiaries
Sudharma Metropolis Health Services Private Limited 5.23% 2,737.48 6.43% 2,689.82
Desai Metropolis Health Services Private Limited 4.61% 2,413.45 5.27% 2,204.92
R.V. Metropolis Diagnostic & Health Care Center Private 3.96% 2,071.60 5.03% 2,105.57
Limited
Micron Metropolis Healthcare Private Limited 0.77% 405.30 0.85% 354.50
Dr. Patel Metropolis Healthcare Private Limited 2.04% 1,067.30 2.26% 947.44
Amin's Pathology Laboratory Private Limited 1.76% 921.73 1.89% 792.36
Ekopath Metropolis Lab Services Private Limited 0.52% 273.19 0.52% 218.52
Lab One Metropolis Healthcare Services Private Limited 1.01% 529.12 1.12% 468.04
Indirect Subsidiaries
Bokil Golwilkar Metropolis Healthcare Private Limited 0.93% 489.07 1.10% 462.00
Raj Metropolis Healthcare Private Limited 0.18% 96.25 0.23% 94.50
Foreign Subsidiaries
Metropolis Bramser Lab Services (Mtius) Limited 0.51% 266.91 0.75% 313.97
Metropolis Healthcare Ghana Limited -0.25% (130.27) -0.17% (72.86)
Metropolis Healthcare (Mauritius) Limited -0.88% (462.43) -0.25% (105.15)
Metropolis Star Lab Kenya Limited 2.37% 1,240.39 1.72% 721.24
Metropolis Healthcare Lanka Private Limited 0.05% 25.67 0.17% 71.09
Metropolis Healthcare Tanzania Limited 0.19% 98.32 0.00% -
Joint Venture to the extent of shareholding
Indian Joint Venture
Metropolis Histoxpert Digital Services Private Limited 0.00% - 0.12% 51.98
Add/(Less): Adjustments -21.26% (11,126.93) -26.28% (11,004.51)
Total 100.00% 52,349.61 100.00% 41,853.84

252 METROPOLIS HEALTHCARE LTD

 Share in Profit or Loss

Name of the Company 31 March 2020 31 March 2019

As % of Profit/ As % of OCI As % of TCI As % of Profit/ As % of OCI As % of TCI
Consoli- (Loss) Consoli- Consoli- Consoli- (Loss) Consoli- Consoli-
dated dated dated dated dated dated
profit or OCI TCI profit or OCI TCI
loss loss
Holding Company
Metropolis Healthcare Limited 89.54% 11,400.43 50.27% (150.91) 90.49% 11,249.52 84.44% 10,145.70 24.20% 33.43 83.76% 10,179.13
Indian Subsidiaries
Direct Subsidiaries
Sudharma Metropolis Health 7.08% 901.59 11.98% (35.97) 6.96% 865.62 8.12% 975.28 6.75% 9.33 8.10% 984.61
Services Private Limited
Desai Metropolis Health 7.48% 951.87 3.22% (9.68) 7.58% 942.19 6.94% 833.43 -1.14% (1.58) 6.84% 831.86
FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

Services Private Limited

R.V. Metropolis Diagnostic 4.57% 581.92 1.10% (3.30) 4.65% 578.62 4.67% 561.47 3.68% 5.09 4.66% 566.57
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

& Health Care Center Private

Limited
Micron Metropolis Healthcare 1.40% 178.01 0.58% (1.75) 1.42% 176.26 1.48% 177.90 0.58% 0.80 1.47% 178.70
Private Limited
Dr. Patel Metropolis 3.51% 447.32 0.71% (2.13) 3.58% 445.19 3.35% 401.90 2.58% 3.57 3.34% 405.46
Healthcare Private Limited
Amin's Pathology Laboratory 1.05% 134.08 0.00% - 1.08% 134.08 1.41% 169.98 0.00% - 1.40% 169.98
Private Limited
Ekopath Metropolis Lab 0.26% 32.76 -0.02% 0.07 0.26% 32.83 0.75% 90.51 -0.61% (0.85) 0.74% 89.66
Services Private Limited
Lab One Metropolis Healthcare 1.30% 165.13 0.53% (1.58) 1.32% 163.55 1.78% 213.54 -0.20% (0.27) 1.75% 213.26
Services Private Limited
Indirect Subsidiaries
Bokil Golwilkar Metropolis 1.08% 136.88 0.93% (2.79) 1.08% 134.09 0.94% 112.70 0.33% 0.45 0.93% 113.15
Healthcare Private Limited
Raj Metropolis Healthcare 0.01% 0.89 0.00% - 0.01% 0.89 0.21% 24.77 0.00% - 0.20% 24.77
Private Limited

ANNUAL REPORT 2019-20

STATUTORY REPORTS
CORPORATE OVERVIEW

253
FINANCIAL STATEMENTS
 Name of the Company 31 March 2020 31 March 2019

254
As % of Profit/ As % of OCI As % of TCI As % of Profit/ As % of OCI As % of TCI
Consoli- (Loss) Consoli- Consoli- Consoli- (Loss) Consoli- Consoli-
dated dated dated dated dated dated
profit or OCI TCI profit or OCI TCI
loss loss
Foreign Indirect Subsidiaries
Metropolis Bramser Lab -0.30% (38.06) 2.99% (8.99) -0.38% (47.05) 0.01% 0.62 15.87% 21.93 0.19% 22.54
Services (Mtius) Limited
Metropolis Healthcare Ghana -0.56% (71.53) -4.70% 14.12 -0.46% (57.41) -0.20% (23.52) -0.29% (0.39) -0.20% (23.92)

METROPOLIS HEALTHCARE LTD

Limited
Metropolis Healthcare -2.01% (256.16) 31.16% (93.54) -2.81% (349.72) -0.35% (42.25) 37.41% 51.68 0.08% 9.43
(Mauritius) Limited
Metropolis Star Lab Kenya 3.80% 483.48 -11.89% 35.70 4.18% 519.18 3.70% 444.05 12.49% 17.25 3.80% 461.31
Limited
FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

Metropolis Healthcare Lanka -0.56% (71.02) -8.52% 25.58 -0.37% (45.44) -1.80% (215.89) -0.82% (1.14) -1.79% (217.02)
Private Limited
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Non-controlling interest -0.18% (22.61) -0.11% 0.33 -0.18% (22.28) -2.88% (346.49) -0.83% (1.14) -2.86% (347.64)
in all non-wholly owned
subsidiaries
Joint Venture to the extent of
shareholding
Indian Joint Venture
Metropolis Histoxpert Digital -0.41% (51.98) 0.00% - -0.42% (51.98) -1.19% (143.02) 0.00% - -1.18% (143.02)
Services Private Limited
Add/(Less): Adjustments -17.05% (2,170.43) 21.77% (65.34) -17.97% (2,235.80) -11.37% (1,365.88) -0.02% (0.01) -11.24% (1,365.89)
Total 100.00% 12,732.56 100.00% (300.18) 100.00% 12,432.37 100.00% 12,014.79 100.00% 138.14 100.00% 12,152.93
 CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020 (Contd.)

62. Consequent to the issuance of “ Guidance Note on Division -II - Ind AS Schedule III to the Companies Act, 2013 certain items
of the financial statements have been regrouped/reclassified.

As per our report of even date attached

For B S R & Co. LLP For and on behalf of the Board of Directors Metropolis Healthcare Limited
Chartered Accountants L73100MH2000PLC192798
Firm Registration No: 101248W/W-100022
Tarun Kinger Dr. Sushil Shah Ameera Shah Poonam Tanwani
Partner Chairman & Executive Director Managing Director Company Secretary
Membership No: 105003 DIN: 00179918 DIN: 00208095 Membership No: ACS 19182
Place : Mumbai Place : Mumbai Place : Mumbai

Place : Mumbai Vijender Singh Rakesh Agarwal

Date : 29 May 2020 Chief Executive Officer Chief Financial Officer Date : 29 May 2020
Place : Gurugram Place : Gurugram

ANNUAL REPORT 2019-20 255