Yes, it includes two things. 1) the revenue sharing with these hospitals 2) they work with the local partners in remote areas on revenue sharing model. Management had clarified this in one of the calls. I suspect that out of INR 80-100 crore, second portion (revenue sharing with partners) would be more than revenue sharing with hospitals.
On this accounting policy, i think it’s standard across diagnostics companies. Even for franchisees, they recognise the revenue on gross basis and record the revenue shared with them as ‘Fees to channel partners’ or something like that. Krsnaa also has similar revenue recognition policy for hospitals and business partners channel.
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