A.  Accounting Convention
 
 The accounts are prepared on accrual basis under the historical cost
 convention in accordance with the accounting standards referred to in
 section 211 (3C) of the Companies Act, 1956 and other relevant
 provisions of the said Act.
 
 B.  Revenue Recognition
 
 i) Revenue is recognized on accrual basis. Hospital Revenue comprises
 of income from services rendered to the out-patients and in-patients.
 Revenue also includes value of services rendered pending billing in
 respect of in-patients undergoing treatment as on 31st March, 2011.
 
 ii) Under the Served from India Scheme introduced by Government of
 India, an exporter of service is entitled to certain export benefits on
 foreign currency earned. The revenue in respect of export benefits is
 recognized on the basis of the foreign exchange earned at the rate at
 which the said entitlement accrues to the extent there is no
 significant uncertainty as to the amount of consideration that would be
 derived and as to its ultimate collection.
 
 C.  Fixed Assets
 
 Fixed Assets are stated at historical cost less accumulated
 depreciation.
 
 D.  Depreciation
 
 i) Depreciation is charged on straight line method at the rates
 prescribed under schedule XIV to the Companies Act, 1956 (considered
 the minimum rate) or at higher rates, if the estimated useful life
 based on technological evaluation of the assets are lower than as
 envisaged under Schedule XIV to the Companies Act. In case of additions
 and deletions during the year, the computations are on the basis of
 number of days for which the assets have been in use. Assets costing
 not more than Rs. 5,000/- each, individually have been depreciated
 fully in the year of purchase.
 
 ii) When impairment loss / reversal is recognized, the depreciation
 charge for the asset is adjusted in future periods to allocate the
 asset''s revised carrying amount, less its residual value (if any) on a
 systematic basis over its remaining useful life.
 
 E.  Intangible Assets
 
 Intangible Assets are stated at cost less accumulated amortisation.
 
 F.  Amortisation of Intangible Assets
 
 i) Intangible assets are amortised on straight line method over the
 estimated useful life of the asset.  
 
 ii) The useful life of the intangible assets for the purpose of
 amortisation is estimated to be three years.
 
 G.  Impairment of Assets
 
 Consideration is given at each balance sheet date to determine whether
 there is any indication of impairment of the Company''s fixed assets. If
 any indication exists, an asset''s recoverable amount is estimated. An
 impairment loss is recognised whenever the carrying amount of an asset
 exceeds its recoverable amount.  The recoverable amount is determined
 on the basis of value in use. In assessing value in use, the estimated
 future cash flows are discounted to their present value based on an
 appropriate discount factor.
 
 Reversal of impairment losses recognised in prior years is recorded
 when there is an indication that the impairment losses recognised for
 the asset no longer exist or have decreased. However, the increase in
 the carrying amount of an asset due to reversal of an impairment loss
 is recognised to the extent it does not exceed the carrying amount that
 would have been determined (net of depreciation) had no impairment loss
 been recognised for the asset in prior years.
 
 H.  Inventories
 
 i) Inventories are valued at lower of cost and net realizable value.
 
 ii) The cost in respect of the items constituting the inventories has
 been computed on FIFO basis.
 
 I.  Expenditure incurred during the construction period
 
 In respect of new / major expansion of units, the indirect expenditure
 incurred during construction period up to the date of commencement of
 business, which is attributable to the construction of the project, is
 capitalised on various category of fixed assets on proportionate basis.
 
 J.  Employee benefits
 
 Short Term Employee Benefits
 
 Short Term Employee Benefits are recognized as an expense on an
 undiscounted basis in the Profit and Loss account of the year in which
 the related service is rendered.
 
 Post Employment Benefits
 
 Defined Contribution Plans
 
 The Employer''s contribution to Provident Fund and Employees Pension
 Scheme, a defined contribution plan is made in accordance with the
 Provident Fund Act,1952 read with the Employees Pension Scheme,1995.
 
 Defined Benefit Plans
 
 The Employees Gratuity Fund Scheme, managed by HDFC Standard Life
 Insurance Company Ltd. is a defined benefit plan. The liability for
 gratuity is provided on actuarial basis. The Present Value of the
 company''s obligation is determined on the basis of actuarial valuation
 at the year end and the fair value of plan assets is reduced from the
 gross obligations under the gratuity scheme to recognize the obligation
 on a net basis.
 
 Long Term Employee Benefits
 
 The liability for leave encashment and other compensated absences is
 recognized on the basis of actuarial valuation made at the end of the
 year.
 
 K.  Foreign currency transactions
 
 Transactions denominated in foreign currency are recorded at the
 exchange rate prevailing on the date of the transaction.
 
 Exchange difference arising on the settlement of monetary items or on
 reporting the company''s monetary items at rates different from those at
 which they are initially recorded during the year or, reported in
 previous financial statements are recognised as income or expense in
 the year in which they arise.
 
 L.  Borrowing costs
 
 Borrowing costs that are directly attributable to the acquisition,
 construction or production of a qualifying asset are capitalized as
 part of the cost of the asset. Other costs are recognized as expense in
 the year in which they are incurred.
 
 M.  Taxation
 
 (i) Provision for Taxation comprises of Income Tax Liability on the
 profits for the year chargeable to tax and Deferred Tax resulting from
 timing differences between Book and Tax Profits. The Deferred Tax
 Asset/ Liability is provided in accordance with the Accounting Standard
 – 22 (AS-22), Accounting for Taxes on Income, issued by the Institute
 of Chartered Accountants of India.
 
 N.  Provisions and Contingent Liabilities
 
 (i) Contingent liability is disclosed in the case of :
 
 (a) a present obligation arising from a past event when it is not
 probable that an outflow of resources embodying economic benefits will
 be required to settle the obligation or
 
 (b) a possible obligation , unless the probability of outflow in
 settlement is remote