1(a) Accounting Conventions:
 
 The financial statement have been prepared under the historical cost
 convention on accrual basis, except where specifically stated
 otherwise. These have been prepared in accordance with applicable
 Accounting Standards and relevant provisions of the Companies Act,
 1956.
 
 1(b) Fixed Assets:
 
 Fixed Assets are stated at cost less accumulated depreciation. Cost
 comprises of cost of acquisition and attributable expenses incurred for
 the purpose of bringing the assets to its present for its intended use.
 
 1(c) Depreciation on Fixed Assets:
 
 a. Depreciation on Fixed Assets acquired upto 31st March, 1987 are
 being provided on straight line method at the rate prevalent at the
 time of acquisition of such assets in accordance with Circular No. 1 of
 1986 (1-86-CL-V) dated 21st May, 1986 of the Company Law Board.
 
 b. On assets acquired on or after 1st April, 1987, the depreciation has
 been provided on straight line method at the rates prescribed in
 Schedule XIV of the Companies (Amendment) Act, 1988, except that on
 Assets acquired on or after 16th December, 1993, the rates as amended
 by Ministry of Law, Justice and Company Affairs notification dated
 10.12.1993 have been provided.
 
 c. On assets acquired / sold during the year, the depreciation is being
 provided on prorate basis.
 
 1(d) Inventories:
 
 The inventories of diagnostic consumable and trading goods are stated
 at cost or net realisable value, whichever is lower. The method used in
 determining the cost of inventories is First In First Out.
 
 1(e) Foreign Currency Transactions:
 
 All foreign currency transactions are accounted for at the rates
 prevailing on the date of such transactions. Exchange fluctuation in
 foreign currency transactions other than those relating to Fixed Assets
 are recognized to the Profit and Loss Account. Exchange fluctuation in
 relation Fixed Assets are apportioned to the original cost of such
 assets acquired. Other assets and liabilities are restated at the rate
 prevailing at the year end and the profit/loss is credited/ charged to
 the Profit and Loss Account.
 
 1(f) Use of Estimates:
 
 The preparation of financial statements in conformity with generally
 accepted accounting principles requires management to make estimates
 and assumptions that affect the report amounts of assets and
 liabilities and the disclosure of contingent liabilities as at the date
 of the financial statements and reported amounts of revenue and
 expenses during the reporting period. Actual results could differ from
 these estimates. Any revision to accounting estimates is recognised
 prospectively in current and future periods.
 
 1(g) Bonus:
 
 Bonus paid to the employees is being accounted for on cash basis.
 
 1(h) EMPLOYEE BENEFITS
 
 (i) Short term Employee Benefits :
 
 a. The undiscounted amount of Short-term Employee Benefits, such as
 medical benefits, casual leave etc. which are expected to be paid in
 exchange for the services rendered by employees are recognised during
 the period when the employee renders the service.
 
 (ii)Long Term Employment Benefits:
 
 a. Provision for leave Encashment, which can be accumulated over the
 tenure the employment or can be claimed as encashment during the
 period employment, at the discretion of the employee, is made/
 accounted for on the basis of the amount due to the employees in
 respect of the earned leaves standing to their credit at the year end.
 
 
 ii) Post Employment Benefit:
 
 a. The Company provides Provident Fund as post employment benefit to
 all its employees which is a defined contribution plan. The annual
 contribution to Employee Provident Fund Organization is charged to the
 Profit and Loss Account of the year to which the contribution relates.
 
 b. The Company''s annual contribution to State Plan viz. Employee''s
 Pension Scheme, 1995 are also charged to the Profit and Loss Account of
 the year to which the contribution relates.
 
 c. The Company provides for Gratuity which is a defined benefit plan.
 The liability is determined on the basis of actuarial valuation under
 the projected unit credit method at the balance sheet date. The
 Gratuity is funded under the Group Gratuity Scheme with the Life
 Insurance Corporation of India under an irrevocable trust for making
 provision of the Payment of the Gratuity Act, 1972. Actuarial gains and
 losses comprise of experience adjustments and the effects of changes in
 actuarial assumptions, and are recognized immediately in the Profit and
 Loss Account as income or expense.
 
 1 (i) Revenue Recognition:
 
 i. From patients on completions of the Diagnostic Procedure.
 
 ii. From Sale of Trading Goods on transfer of title in the goods to the
 buyers.
 
 iii. From Service Contracts on pro-rata basis over the period of the
 contract.
 
 iv. From Installation and Commissioning Contracts on completion of the
 Product Service.
 
 v. From Commission Income as per the Contract or in Receipt of Credit
 Note.
 
 vi. From Interest Income on Time Proportion Basis.
 
 1(j) Taxation
 
 a. The provision for income tax is ascertained on the basis of
 assessable profits computed in accordance with the provisions of the
 Income Tax Act, 1961.
 
 b. The Provision for deferred tax is recognised, subject to the
 consideration of prudence on timing differences being the differences
 between taxable income and accounting income that originate in one
 period and are capable of reversal in one or more subsequent periods.
 
 1 (k) Borrowing Cost: Borrowing Cost that are attributable to the
 acquisition of qualifying assets are capitalized as part of the cost f
 such assets upto the date, the assets are ready for their intended use.
 All other borrowing cost are recognized as an expense in the year in
 which they are incurred.
 
 
 1 (i) Impairment:
 
 Fixed Assets are reviewed for impairment whenever events or changes in
 circumstances indicate that the carrying amount of an asset exceeds its
 recoverable amount, an impairment loss is recognised in the income
 stated for the items of fixed assets carried at cost. The recoverable
 amount is the higher of an asset''s net selling price and value in use.
 The selling price is the amount obtained from the sale of an assets in
 an arms length transaction while value in use is the present value of
 estimated future value cash flow expected to arise from the continuing
 use of an asset, from its disposal at the end of its useful life.
 Recoverable amounts are estimated for individual assets or, if not
 possible, for the cash generating unit.
 
 An impairment loss recognised for and asset in earlier accounting
 periods is reversed, to the extent of its recoverable amount, if there
 has been a change in the estimates used to determine the assets
 recoverable amount since the impairment loss was recognised.
 
 1 (m) Contingent Liabilities and Assets:
 
 The Company recognizes provisions only when it has a present obligation
 as a result of a past event, it is probable that an outflow of
 resources embodying economic benefits will be required to settle the
 obligation, when a reliable estimate of the amount of the obligation
 can be made.
 
 No provision is recognized for:
 
 i. any possible obligation that arises from past events and the
 existence of which will be confirmed only by the occurrence or
 non-occurrence of one or more uncertain future events not wholly within
 the control of the Company; or
 
 ii. any present obligation that arises from past events but is not
 recognized because
 
 a. it is not probable that an outflow of resources embodying economic
 benefits will be required to settle the obligation; or
 
 b. a reliable estimate of the amount of obligation cannot be made.
 
 Such obligations are recorded as Contingent Liabilities. These are
 assessed at regular intervals and only that part of the obligation for
 which an outflow of resources embodying economic benefits is probable,
 is provided for, except in the extremely rare circumstances where no
 reliable estimate can be made.
 
 Contingent Assets are not recognized in the financial statements as
 this may result in the recognition of income that may never be
 realized.
 
 1 (n) Earnings Per Share:
 
 Basic and Diluted Earnings Per Share is computed in accordance with
 Accounting Standard(AS-20) - Earnings Per Share issued by the
 Institute of Chartered Accountants of India. Basic Earnings per Share
 is computed by dividing the net profit after tax by the weighted
 average number of equity shares outstanding during the year. Diluted
 Earnings Per Share reflect the potential dilution that could occur, if
 securities or contracts to issue equity shares were exercised or
 converted during the year. Diluted Earnings Per Share is computed using
 the weighted average number of equity shares outstanding during the
 year and dilutive potential equity shares outstanding at the year end.