ಕಂಪನಿಯ ಅಕೌಂಟಿಗ್ ಪಾಲಿಸಿ Gaudium IVF And Women Health Ltd.

4. Material accounting policy information
A. Property, plant and equipment and depreciation
Initial recognition

All items of property, plant and equipment are initially
measured at cost. The cost of an item of plant and
equipment is recognised as an asset if, and only if, it is
probable that future economic benefits associated with the
item will flow to the company and the cost of the item can
be measured reliably.

Cost includes its purchase price (after deducting trade
discounts and rebates), import duties & non-refundable
purchase taxes, any costs directly attributable to bringing
the asset to its working condition for its intended use,
borrowing costs on qualifying assets and estimated costs
of dismantling and removing the item and restoring the site
on which it is located.

Any gain or loss on disposal of an item of property, plant
and equipment is recognised in profit or loss.

Subsequent expenditure is capitalised only if it is probable
that the future economic benefits associated with the
expenditure will flow to the company and the cost of the
item can be measured reliably.

Costs of day-to-day repairs and maintenance costs are
recognised into the statement of profit and loss account
as incurred.

Subsequent measurement

Subsequent to recognition, property, plant and equipment
are measured at cost less accumulated depreciation and
any accumulated impairment losses. The carrying values of
property, plant and equipment are reviewed for impairment
when events or changes in circumstances indicate that
the carrying value may not be recoverable. The residual
values estimated useful lives and depreciation method
are reviewed at each financial year-end, and adjusted
prospectively, if appropriate.

Depreciation

Depreciation is calculated on the cost of items of property,
plant and equipment less their estimated residual values
using the straight-line method over their estimated useful
lives, determined as per the provisions of schedule ii of the
companies act,2013, as amended, and is recognised in the
statement of profit and loss.

Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.
Based on technical evaluation and consequent advice, the management believes that its estimates of useful lives as given
above best represent the period over which management expects to use these assets.

Depreciation on additions/(disposals) is provided on a pro-rata basis i.e. from/ (upto) the date on which asset is ready for
use/ (disposed off)

Capital work in progress and capital advances

Cost of asset not ready for intended use and assets under installation or under construction as at the balance sheet date
will be shown as capital work in progress. Advances given towards acquisition of fixed assets outstanding at each balance
sheet date are disclosed as other non-current asset in accordance with Schedule III to the Companies Act, 2013.

Subsequent expenditure

Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset
to which it relates, and the cost of the asset can be measured reliably. All other expenditure, including expenditure on
internally generated goodwill and brands, is recognised in profit or loss as incurred.

Amortisation methods, useful lives and residual values are
reviewed at each reporting date and adjusted if appropriate.

Intangible Assets under Development

Intangible Assets under Development comprise expenditure
incurred by the Company on the In-house development of
Gaudium Advanced Analysis and Treatment (GAAT) for
advance genome based IVF treatment.

The Gaudium Advanced Analysis and Treatment (GAAT)
module, is a proprietary process designed to enhance
IVF success rates in complex infertility cases through the
application of genome sequencing across multiple stages
of the IVF cycle which is aimed at improving outcomes for
highrisk patients, such as those with recurrent implantation
failure, recurrent miscarriages, poor ovarian reserve, genetic
predispositions, or advanced parental age (above 42 years).

GAAT enables a highly personalised treatment approach
which involves three categories of analysis: female partner,
male partner, and embryo. Genetic insights from these
analyses guide hormone therapy customisation, identify
sperm DNA abnormalities, and assist in selecting the
healthiest embryos, thereby improving implantation and
pregnancy rates.

The expenditures related to development of GAAT are
capitalised as Intangible Assets under Development
in accordance with Ind AS 38 - Intangible Assets, as
management expects that the successful development
and deployment of these projects will generate probable
future economic benefits for the Company. These benefits
are expected to arise from improved clinical outcomes,
enhanced operational efficiencies, and strengthened
service offerings. Accordingly, such costs are recognised
as intangible assets under development until the assets are
ready for their intended use.

C. Inventories

Inventory comprises of medical consumables and drugs
which are valued at lower of cost and net realisable value.
The cost of inventories is based on the first-in, first-out
formula and comprises of cost of purchase, freight, taxes,
duties and other charges incurred for bringing the goods to
the present location and condition.

Net realisable value represents the estimated selling price,
less estimated costs of completion and costs necessary
to make the sale.

Appropriate provisions are estimated and made for
unusable/ non-saleable/ expired items/ slow moving/
obsolete inventory wherever necessary, based on the
past experience of the Company and such provisions are
adjusted against the inventory carrying value.

D. Impairment of non - financial assets

At each reporting date, the Company assesses whether the
carrying amounts of its non-financial assets (other than
inventories, contract assets and deferred tax assets) to
determine whether there is any indication of impairment.
If any such indication exists, then the asset''s recoverable
amount is estimated. Goodwill and Intangible assets with
infinite life are tested annually for impairment.

The recoverable amount of an individual asset or CGU is
the greater of its value in use and its fair value less costs
of disposal. Value in use is based on the estimated future
cash flows, discounted to their present value using a pre-tax
discount rate that reflects current market assessments of
the time value of money and the risks specific to the asset
or CGU.

Impairment losses of continuing operations, including
impairment on inventories, are recognised in the statement
of Profit and Loss. They are allocated first to reduce the
carrying amount of any goodwill allocated to the CGU, and
then to reduce the carrying amounts of the other assets in
the CGU on a pro rata basis.

After impairment, depreciation or amortisation is provided
on the revised carrying amount of the asset over its
remaining useful life.

The impairment assessment for all assets is made at each
reporting date to determine whether there is an indication
that previously recognised impairment losses no longer
exist or have decreased. If such indication exists, the
Company estimates the asset''s or CGU''s recoverable
amount. A previously recognised impairment loss is
reversed only if there has been a change in the assumptions

used to determine the asset''s recoverable amount since the
last impairment loss was recognised. The reversal is limited
so that the carrying amount of the asset does not exceed
its recoverable amount, nor exceed the carrying amount
that would have been determined, net of depreciation, had
no impairment loss been recognised for the asset in prior
years. Such reversal is recognised in the statement of profit
or loss. An impairment loss in respect of goodwill is not
subsequently reversed.

E. Financial instruments

Financial assets and financial liabilities are recognised when
the Company becomes a party to the contractual provisions
of the instrument. Financial assets and liabilities are initially
measured at fair value. Transaction costs that are directly
attributable to the acquisition or issue of financial assets
and financial liabilities (other than financial assets and
financial liabilities at fair value through profit or loss

(FVTPL) are added to or deducted from the fair value
measured on initial recognition of financial asset or financial
liability. The transaction costs directly attributable to the
acquisition of financial assets and financial liabilities at fair
value through profit and loss are immediately recognised in
the statement of profit and loss.

Financial assets

Financial assets comprise of loans, investments, trade
receivables, cash and cash equivalents and other financial
assets. Financial assets are initially recognised at fair
value. Trade receivables that do not contain a significant
financing component are measured at the transaction price.
Regular-way purchases and sales of financial assets are
recognised on the trade date, being the date on which the
Company becomes a party to the contractual provisions of
the instrument.

a. Classification of financial assets

On initial recognition, the Company classifies financial
assets based on its business model for managing
the financial assets and the contractual cash flow
characteristics of the assets. Financial assets are
subsequently measured at amortised cost, fair value
through other comprehensive income (FVOCI), or fair
value through profit or loss (FVTPL).

A financial asset is measured at amortised cost if
it meets both of the following conditions and is not
designated as at FVTPL:

- it is held within a business model whose objective is
to hold assets to collect contractual cash flows; and

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

A debt investment is measured at FVOCI if it meets
both of the following conditions and is not designated
as FVTPL:

- it is held within a business model whose objective is
achieved by both collecting contractual cash flows
and selling financial assets; and

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

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

All financial assets not classified as measured at
amortised cost or FVOCI as described above (e.g.
financial assets held for trading and those that are
managed and whose performance is evaluated on a
fair value basis) are measured at FVTPL.

Financial assets measured at amortised cost are
subsequently measured using the effective interest
rate (EIR) method. The amortised cost is reduced by
impairment losses. Interest income, foreign exchange
gains and losses and impairment are recognised in
profit or loss. Any gain or loss on derecognition is
recognised in profit or loss.

Financial assets measured at FVTOCI are subsequently
measured at Fair Value. Interest income calculated
using the effective interest method, foreign exchange
gains and losses and impairment are recognised
in profit or loss. Other net gains and losses are
recognised in OCI. On derecognition, gains and losses
accumulated in OCI are reclassified to profit or loss.

Financial assets measured at FVTPL are subsequently
measured at Fair Value. Net gains and losses, including
any interest or dividend income, are recognised in
profit or loss.

b. Impairment of financial assets

The Company applies the expected credit loss (ECL)
model in accordance with Ind AS 109 for impairment
of financial assets measured at amortised cost.

For trade receivables, the Company uses a provision
matrix as a practical expedient to measure lifetime
ECL. Expected credit losses are determined based
on historical credit loss experience, adjusted
for current macroeconomic conditions and
forward-looking factors affecting customer segments.

Other financial assets are assessed for impairment
based on changes in credit risk since initial recognition
on each reporting date. If the counterparty is
investment grade, government owned, or low risk, the
ECL is assessed as immaterial or nil. Otherwise, an
appropriate loss allowance is recognised based on
forward-looking information and probability of default.

c. Derecognition of financial assets

A financial asset is derecognised when the contractual
rights to receive cash flows from the asset expire or
when the Company transfers the financial asset and
substantially all the risks and rewards of ownership
are transferred. Where the Company neither transfers
nor retains substantially all the risks and rewards
of ownership, the financial asset is derecognised if
control over the asset has not been retained.

d. Cash and cash equivalents

Cash and cash equivalents comprise cash in hand and
balances with banks, including deposits with banks
having an original maturity of one year or less. Cash
and cash equivalents are measured at amortised cost.

Financial liabilities

Financial liabilities are recognised when the Company
becomes a party to the contractual provisions of the
financial instrument.

Financial liabilities are initially measured at fair value, net
of directly attributable transaction costs. Transaction costs
directly attributable to the acquisition or issue of financial
liabilities that are measured at fair value through profit or
loss, if any, are recognised immediately in the Statement
of Profit and Loss.

After initial recognition, financial liabilities are subsequently
measured at amortised cost using the effective interest
rate (EIR) method. Interest expense is recognised in the
Statement of Profit and Loss over the expected life of the
financial liability.

Derecognition of financial liabilities

A financial liability is derecognised when the obligation
under the liability is discharged, cancelled, or expires.
Where an existing financial liability is replaced by another
from the same lender on substantially different terms, or
the terms of an existing financial liability are substantially
modified, such an exchange or modification is accounted
for as derecognition of the original financial liability and
recognition of a new financial liability. The difference
between the carrying amounts is recognised in the
Statement of Profit and Loss.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the
net amount is reported in the balance sheet when there is a
legally enforceable right to offset the recognised amounts
and there is an intention to settle on a net basis, or to realise
the asset and settle the liability simultaneously.

F. Leases

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

As a lessee

At commencement or on modification of a contract that
contains a lease component, the Company allocates the
consideration in the contract to each lease component on
the basis of its relative standalone prices.

For lease arrangements identified as such, the Company
recognises a right-of-use asset representing its right to
use the underlying leased asset and a corresponding lease
liability representing its obligation to make lease payments.

The right-of-use asset is initially measured at cost, which
includes the initial amount of the lease liability adjusted for
any lease payments made at or before the commencement
date, any initial direct costs incurred, and any lease
incentives received.

The lease liability is initially measured at the present
value of future lease payments that are not paid at the
commencement date, discounted using the interest rate
implicit in the lease or, where that rate cannot be readily
determined, the Company''s incremental borrowing rate.
Generally, the Company uses its incremental borrowing
rate as the discount rate. The Company determines its
incremental borrowing rate by obtaining interest rates
from various external financing sources and makes certain
adjustments to reflect the terms of the lease and type of
the asset leased.

Subsequently, the right-of-use asset is depreciated on a
straight-line basis over the shorter of the lease term or the
useful life of the underlying asset, while the lease liability
is measured by increasing the carrying amount to reflect
interest and reducing it to reflect lease payments made.

Short-term leases and leases of low-value assets

The Company has elected not to recognise right-of-use
assets and lease liabilities for leases of low-value assets
and short-term leases. The Company recognises the lease
payments associated with these leases as an expense in
profit or loss on a straight-line basis over the lease term.

As a lessor

When the Company acts as a lessor, it determines at lease
inception whether each lease is a finance lease or an
operating lease.

To classify each lease, the Company makes an overall
assessment of whether the lease transfers substantially
all of the risks and rewards incidental to ownership of
the underlying asset. If this is the case, then the lease is
a finance lease; if not, then it is an operating lease. As
part of this assessment, the Company considers certain
indicators such as whether the lease is for the major part
of the economic life of the asset.

The Company recognises lease payments received under
operating leases as income on a straight-line basis over the
lease term as part of ''other income''