1. Accounting convention & concepts
The financial statements are prepared under the historical cost
convention on accrual basis in accordance with the Indian Generally
Accepted Accounting Principles (IGAAP) comprising the Accounting
standards Notified under Companies Accounting Standards Rules 2006 by
the Central Government of India under section 211 (3C) of the Companies
Act 1956, Various pronouncements of the Institute of Chartered
Accountants of India and the provisions of the Companies Act, 1956 and
guidelines issued by the Securities Exchange Board of India (SEBI).
Accounting policies have been consistently applied except where a newly
issued Accounting Standard is initially adopted or a revision to an
existing Accounting Standard requires a change in the Accounting policy
hitherto in use.
2. Use of Estimates
The preparation of financial statements in conformity with IGAAP
requires management to make estimates and assumptions that affect the
reported amount of assets, liabilities, revenues and expenses and
disclosure of contingent liabilities on the date of financial
statements. Examples of such estimates and assumptions include useful
lives of fixed assets and Intangible assets, taxes, provision for
doubtful debts, anticipated obligations under employee retirement
plans, etc. The recognition, measurement, classification or disclosures
of an item or information in the financial statements have been made
relying on these estimates to a greater extent. Actual results could
differ from those estimates
3. Revenue Recognition
Income from Medical Transcription, Coding and
Billing and collection are recognised as income on completion of the
service. Interest Income is recognized based on time proportion and on
4. Fixed Assets
Fixed assets are stated at cost less accumulated depreciation. Cost
includes all identifiable expenditure to bring the assets to its
present location and condition for intended use.
Intangible assets are stated at the consideration paid for the purchase
/acquisition less accumulated amortization.
Capital work in progress includes advances paid for acquiring fixed
assets and cost of assets not ready for use before the balance sheet
Depreciation on Fixed Assets has been provided on written down value
method at the rates specified in Schedule XIV of the Companies Act,
1956. Depreciation on addition/deletion of assets during the year is
provided on a pro-rata basis.
Investments are valued at cost of acquisition and include brokerage
fees and incidental expenses, wherever applicable. Investments are
classified as long term and are carried at cost with an appropriate
provision of permanent diminution in value. Investments made in the
wholly owned subsidiaries are valued at cost of acquisition including
the acquisition expenses relating to it.
Provision for current tax is based on tax liability computed in
accordance with relevant tax rates and tax laws. Provision for deferred
tax is made for all timing differences arising between taxable incomes
and accounting Income at rates that have enacted or substantively
enacted as of the balance sheet date. Deferred tax assets are
recognized only if there is a reasonable certainty that they will be
realized in future.
8. Foreign Exchange Transaction
Transactions in Foreign Currency are converted at the rates prevailing
on the date of the transaction. Monetary assets and liabilities (for
eg. Cash, receivables, payables etc.) denominated in foreign currency
are translated into Indian
Rupees at the rate of exchange prevailing at the balance sheet date.
Gain/loss on realization/Payment of revenue transactions in the same
year is charged to Exchange Fluctuation Account in the Profit & Loss
The carrying amounts of assets are reviewed at each balance sheet date
to check any indication of impairment based on internal/external
factors. Impairment Loss is recognised whenever the carrying amount of
an asset is in excess of its recoverable amount. The Impairment Loss is
recognised as an expense in the Statement of Profit and Loss and
carrying amount of the asset is reduced to its recoverable value.
10.Deferred Revenue Expenditure
Amount paid for the purchase of contracts relating to the medical
transcription and coding have been amortized and shall be written off
over a period of 3 years being the period of contract.
11.Provision for Contingent Liabilities and Contingent Assets
The Company recognises a provision when there is a present obligation
as a result of a past event that probably requires outflow of
resources, which can be reliably estimated. Disclosures for contingent
liability is made, without a provision in books, when there is an
obligation that may, but probably will not (in the opinion of the
management), require outflow of resources. Contingent Assets are
neither recognised nor disclosed in the financial statements.
12,Earnimg per Share (EPS)
The earning considered in ascertaining the Company''s EPS comprises the
net profit after tax. The number of shares used in computing Basic EPS
is the weighted average number of shares outstanding during the year
duly adjusted for additional shares issued during the year, if any.
The number of shares used in computing diluted EPS comprises the
weighted average number of equity shares considered for deriving basic
EPS, and also the weighted average number of equity shares that could
have been issued on the conversion of all dilutive potential equity