Max MyHealth Digital Platform & CSR Initiatives
MAX
Notes to Network Consolidated Financials
Healthcare
1. Max Healthcare Institute Limited ("MHIL"), its subsidiaries and deemed separate entities (i.e. silos for managed healthcare facilities) constitute MHIL
Group under IND AS 110. MHIL Group also has long term contracts with certain societies, who own and operate hospitals and act in concert with other
Max Hospitals to provide high end medical care to the communities. MHIL Group carries significant financial exposure and control medical operations of
these hospitals through Hospital Management Committee structure or otherwise. These hospitals are treated as Partner Healthcare Facilities ("PHF") and
form part of Max Network of Hospitals. Given the financial exposure and operating model, it is considered appropriate by MHIL management to disclose
the financial performance of the Network Hospitals as a whole, by way of a certified memorandum consolidation of financial results of operations of
MHIL, its subsidiaries, managed healthcare facilities and PHFS (all these entities combined together are referred as "Network"), which have been
subjected to review by their statutory auditors.
2. The Consolidated financial information contained in this presentation is thus different from that of the MHIL Group since the financials of Partner
Healthcare Facilities (PHFS) are also included. The information is drawn up based on the management consolidation of the unaudited financials of the
Company, its subsidiaries, managed healthcare facilities and those of the PHFS (prepared under IGAAP), duly adjusted for intra-network eliminations and
IND AS related adjustments. The Consolidated financial information post IND AS adjustments, is certified by an independent firm of chartered
accountants.
3. Healthcare undertaking of Radiant Life Care Private Limited ("Radiant") and residual business of erstwhile Max India Limited merged into Max Healthcare
Institute Limited ("MHIL" or "the Company") through a NCLT approved Composite Scheme of Amalgamation and Arrangement on June 1, 2020. The
Group, while accounting for the Business Combination in June 2020 has carried out a fair valuation exercise, whereby the assets and liabilities of the
acquired entity (i.e. MHIL) & its subsidiaries and effects thereof were captured in the financials of the Company. The fair valuation exercise has led to an
increase in the tangible and intangible assets of the Network by INR 3,662 Cr, which includes INR 252 Cr towards the Partner Healthcare Facilities.
Further, the Company acquired a step-down subsidiary during Q2 FY22 and the purchase price allocation ("PPA") of this acquisition led to incremental
change in tangible and intangible assets by INR 107 Cr beyond the investment value.
4. The Profit & Loss statement in the earnings update is prepared after line-by-line consolidation of the financials of MHIL, its subsidiaries, deemed separate
entities/silos and PHFS, after eliminating intra Network transactions, in an investor friendly format.
5. In order to better explain the financial results, the exceptional items and material items which don't truly represent the operating income/expenditure
and are non-cash in nature have been identified and reported separately, to reflect the Operating EBITDA performance of the Network. The numbers are
regrouped to meet industry specific information requirement of investors. Further, the Profit after tax includes the impact of change in other
comprehensive income and thus reflects Total Comprehensive income for the period.
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