Basis of accounting and brparation of financial statements

The financial statements which have been brpared under historical cost convention on the accrual basis of accounting, are in accordance with the applicable requirements of the Companies Act, 2013 ('the Act') and comply in all material aspects with the Accounting Standards brscibed under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 and read with Companies (Accounting Standard) Amendment Rules, 2016 applicable with effect from 1 April 2016 and other generally accepted accounting principles (GAAP) in India. The consolidated financial statements are brpared in Indian Rupees.

Use of estimates

The brparation of the consolidated financial statements in conformity with generally accepted accounting principles requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of consolidated financial statements and the results of operations during the reporting periods. Although these estimates are based upon the management's best knowledge of current events and actions, actual results could differ from those estimates. Key estimates include estimates of the economic useful lives of the fixed assets, income taxes, provision for bad and doubtful debts and accrual for employee benefits. Any revision to accounting estimates will be recognised prospectively in the current and future periods.

Metropolis Healthcare Limited (the ‘Company’ or the 'Holding Company'), was incorporated as Pathnet India Private Limited in the year 2000. The Holding Company together with its subsidiaries (collectively referred to as the "Group") and joint venture is engaged in the business of providing healthcare facilities. The principal activities of the Group consist of providing pathology services and related healthcare services. 

Short term employee benefits

Employee benefits payable wholly within twelve months of receiving employee services are classified as short-term employee benefits. These benefits include salaries and wages, bonus, compensated absences and ex-gratia. The undiscounted amount of short-term employee benefits to be paid in exchange for employee services is recognized as an expense as the related service is rendered by employees.

Post-employment benefits

Defined contribution plan

A defined contribution plan is a post-employment benefit plan under which an entity pays specified contributions to a separate entity and has no obligation to pay any further amounts. Entities of the Group incorporated in India makes contribution to provident fund in accordance with Employees Provident Fund and Miscellaneous Provisions Act, 1952 and Employee State Insurance. Contribution paid or payable in respect of defined contribution plan is recognized as an expense in the year in which services are rendered by the employee.

Defined benefit plan

Entities of the Group incorporated in India gratuity benefit scheme is a defined benefit plan. The liability recognised in the balance sheet in respect of gratuity is the brsent value of the defined benefit/ obligation at the balance sheet date less the fair value of plan assets, together with adjustments for unrecognised actuarial gains or losses and past service costs. The defined benefit/ obligation are calculated at balance sheet date by an independent actuary using the projected unit credit method. Actuarial gains and losses arising from past experience and changes in actuarial assumptions are credited or charged to the consolidated statement of profit and loss in the year to which such gains or losses relate._

Share based compensation

Measurement and disclosure of the employee share based payment plans is done in accordance with the Guidance Note on Accounting for Employee Share Based Payments, issued by the Institute of Chartered Accountants of India. The Company measures compensation cost relating to employee stock options using the intrinsic value method. Compensation expense is amortized over the vesting period of the option on a straight-line basis.