1.1 Basis of accounting and preparation of financial statements
 
 The financial statements have been prepared under the historical cost
 convention under accrual method of accounting except in case of assets
 for which provision for impairment is made and revaluation is carried
 out and as a going concern, in accordance with the Generally Accepted
 Accounting Principles (GAAP) prevalent in India and to comply in all
 material respects with the Notified accounting standard by Companies
 Accounting Standards Rules, 2006 and the relevant provisions of the
 Companies Act, 1956.
 
 1.2 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 reported amounts of assets and
 liabilities and disclosure of contingent liabilities at the date of the
 financial statements and the results of operations during the reporting
 period end. Although these estimates are based upon management''s best
 knowledge of current events and actions, actual results could differ
 from these estimates.
 
 1.3 Inventories 
 
 i) The inventories of all medicines, Medicare items traded and dealt
 with by the company are valued lower of cost and Net Realisable Value
 by applying the FIFO method.
 
 ii) The stock of stores, dental instruments, surgical instruments,
 dental and other Consumables are valued at cost. Cost of these
 inventories comprises of all costs of purchase and other cost incurred
 in bringing the assets to their present location.
 
 1.4 Cash and cash equivalents (for purposes of Cash Flow Statement)
 
 Cash comprises cash on hand and demand deposits.with banks and interest
 accrued thereon. Cash equivalents are short-term balances (with an
 original maturity of three months or less from the date of
 acquisition), highly liquid investments that are readily convertible
 into known amount of cash and which are subject to insignificant risk
 of changes in value.
 
 1.5 Cash flow statement
 
 Cash flows are reported using the indirect method, whereby profit /
 (loss) before extraordinary items and tax is adjusted for the effects
 of transactions of non-cash nature and any deferrals or accruals of
 past or future cash receipts or payments. The cash flows from
 operating, investing and financing activities of the Company are
 segregated based on the available information.
 
 1.6 Prior Period Items and Extraordinary Items -
 
 Prior period item and extraordinary item are separately classified,
 identified and dealt with as required under Accounting Standard 5 on
 Net Profit or Loss for the period, prior period items and changes
 irt accounting policies.
 
 1.7 Depreciation and amortisation
 
 Depreciation is provided using the Straight Line Method at the rates
 prescribed under Schedule XIV of the Companies Act, 1956, which is
 management''s estimate of the useful lives of the assets. Depreciation
 on new assets acquired during the year is provided at the rates
 applicable from the date of acquisition to the year end. Depreciation
 on assets sold or discarded is provided till the date of disposal. The
 rates of depreciation are as follows:-
 
 1.8 Revenue recognition
 
 i)lncome from hospital services is recognized on accrual basis. At the
 year end wherever services are not billed .the same is estimated and
 recognized as unbilled income. The hospital collections of the company
 are net of rebates, concessions etc.
 
 ii) Pharmacy sales are stated net of returns, discounts and exclusive
 of salesr tax./vat.
 
 iii)Ambulance income is accounted on the basis of the contract entered
 between the parties on an accrual basis.
 
 1.9 Other income
 
 Interest income is accounted on accrual basis. Dividend income is
 accounted for when the right to receive it is established.
 
 1.10 Tangible fixed assets
 
 Tangible Fixed assets are stated at cost (or revalued amounts, as the
 case may be), less accumulated depreciation and impairment losses if
 any. Cost comprises the purchase price and any cost attributed for
 bringing the asset to its working condition for its* intended use.
 Capital Work in Progress comprises of advances paid to acquire fixed
 assets and amount expended on development/ acquisition of fixed assets
 that are not yet ready for their intended use as on the balance sheet
 date.
 
 1.11 Intangible assets
 
 Intangible Assets are stated at cost of acquisition less accumulated
 amortization. Application Software is ammortised over the period of
 three years i.e. at the rate of 33.33% p.a. on SLM basis on cost.
 
 1.12 Foreign currency transactions and translations Initial recognition
 
 Transactions in foreign currencies entered into by the Company and its
 integral foreign operations are accounted at the exchange rates
 prevailing on the date of the transaction or at rates that closely
 approximate the rate at the date of the transaction.
 
 Measurement of foreign currency monetary items at the Balance Sheet
 date
 
 Foreign currency monetary items (other than derivative contracts) of
 the Company and its net investment in non-integral foreign operations
 outstanding at the Balance Sheet date are restated at the year-end
 rates.In the case of integral operations, assets and liabilities (other
 than non-monetary items), are translated at the exchange rate
 prevailing on the Balance Sheet date. Non-monetary items are carried at
 historical cost.  Revenue and expenses are translated at the average
 exchange rates prevailing during the year. Exchange differences arising
 out of these translations are charged to the Statement of Profit and
 Loss.
 
 Treatment of exchange differences
 
 Exchange differences arising on settlement / restatement of short-term
 foreign currency monetary assets and liabilities of the Company and its
 integral foreign operations are recognised as income or expense in the
 Statement of Profit and Loss. The exchange differences on restatement /
 settlement of loans to non- integral foreign operations that are
 considered as net investment in such operations are accumulated in a
 Foreign currency translation reserve until disposal / recovery of
 the net investment.The exchange differences arising on restatement /
 settlement of long-term foreign currency monetary items are capitalised
 as part of the depreciable fixed assets to which the monetary item
 relates and depreciated over the remaining useful life of such assets
 or amortised on settlement / over the maturity period of such items if
 such items do not relate to acquisition of depreciable fixed assets.
 The unamortised balance is carried in the Balance Sheet as Foreign
 Currency monetary item translation difference account net of the tax
 effect thereon.
 
 1.13 Government grants, subsidies and export incentives
 
 Government grants and subsidies are recognised when there is reasonable
 assurance that the Company will comply with the conditions attached to
 them and the grants / subsidy will be received. Government grants whose
 primary condition is that the Company should purchase, construct or
 otherwise acquire capital assets are presented by deducting them from
 the carrying value of the assets. The grant is recognised as income
 over the life of a depreciable asset by way of a reduced depreciation
 charge.
 
 Export benefits are accounted for the year of exports based on
 eligibility and when there is no uncertainty in receiving the same.
 
 Government grants in the nature of promoters'' contribution like
 investment subsidy, where no repayment is ordinarily expected in
 respect thereof, are treated as capital reserve. Government grants in
 the form of non- monetary assets, given at a concessional rate, are
 recorded on the basis of their acquisition cost. In case the
 non-monetary asset is given free of cost, the grant is recorded at a
 nominal value.Other government grants and subsidies are recognised as
 income over the periods necessary to match them with the costs for
 which they are intended to compensate, on a systematic basis§.
 
 1.14 Investments
 
 Long-term investments (excluding investment properties), are carried
 individually at cost less provision for diminution, other than
 temporary, in the value of such investments. Current investments are
 carried individually, at the lower of cost and fair value. Cost of
 investments include acquisition charges such as brokerage, fees and
 duties. Investment properties are carried individually at cost less
 accumulated depreciation and impairment, if any. Investment properties
 are capitalised and depreciated (where applicable) in accordance with
 the policy stated for Tangible Fixed Assets. Impairment of investment
 property is determined in accordance with the policy stated for
 Impairment of Assets.
 
 1.15 Employee benefits
 
 i Defined Contribution Plan Provident Fund:
 
 Eligible employees receive benefits from a provident fund, which is a
 defined contribution plan. Aggregate contributions along with interest
 thereon is paid at retirement. The company and employee make monthly
 contributions to provident fund equal to a specified percentage of the
 covered employee''s salary. The contributions are made to a government
 administered provident fund. The monthly contributions are charged off
 to revenue.
 
 ii.Defined benefit plan Gratuity
 
 The Company makes contribution to a scheme administered and offered by
 the Life Insurance Corporation of India (LIC) to discharge gratuity
 liabilities to the employees. The premium /contribution paid to the
 Life Insurance Corporation of India towards gratuity scheme are charged
 off to revenue. .
 
 Short term benefits
 
 Short term employee benefits are benefits which are payable within
 twelve months after the end of the period in which the employees render
 service and these are measured at cost.
 
 1.16 Borrowing costs
 
 Any Interest paid on the amount borrowed for the purpose of capital
 expenditure are generally charged to revenue, if the relevant capital
 asset is brought to use within 12 months. Whenever the time taken is
 more than 12 months such interest attributable to the fixed asset is
 capitalized and added to the cost of the fixed asset
 
 1.17 Segment reporting
 
 The company is engaged only in one business segment, -that is hospital
 service and hence no reporting is done under Accounting Standard - 17
 (Segment Reporting) on segment revenue, expenses etc.
 
 1.18 Leases
 
 In respect of lease transactions entered in to the Lease payments are
 recognized as an expense in the Profit and Loss account on a
 straight-line basis over the lease term.
 
 1.19 Earnings per share
 
 Basic earnings per share are calculated by dividing the net profit or
 loss for the period attributable to equity shareholders by the weighted
 average number of equity shares outstanding during the period. The
 weighted average numbers of equity shares outstanding during the period
 are adjusted for events of bonus issue; rights issue to existing
 shareholders; share split; and reverse share split, if any.
 
 1.20 Taxes on income
 
 Tax expense comprises of current and deferred tax. Current income tax
 is measured at the amount expected to be paid to the tax authorities in
 accordance with the Income Tax Act. Deferred income taxes reflect the
 impact of current year timing differences between taxable income and
 accounting income for the year and reversal of timing differences of
 earlier years.
 
 Deferred tgx is measured based on the tax rates and the tax laws
 enacted or substantively enacted at the balance sheet date. Deferred
 tax assets are recognized only to the extent that there is reasonable
 certainty that sufficient future taxable income will be available
 against which such deferred tax assets can be realized.
 
 The carrying amount of deferred tax assets are reviewed at each balance
 sheet date. The Company writes- down the carrying amount of a deferred
 tax asset to the extent that it is no longer reasonably certain or
 virtually certain, as the case may be, that sufficient future taxable
 income will not be available against which deferred tax asset can be
 realized. Any such write-down is reversed to the extent that it becomes
 reasonably certain or virtually certain, as the case may be, that
 sufficient future taxable income will be available.
 
 1.21 Research and development expenses
 
 Revenue expenditure pertaining to research is charged to the Statement
 of Profit and Loss. Development costs of products are also charged to
 the Statement of Profit and Loss unless a product''s technological
 feasibility has been established, in which case such expenditure is
 capitalised. The amount capitalised comprises expenditure that can be
 directly attributed or allocated on a reasonable and consistent basis
 to creating, producing and making the asset ready for its intended use.
 Fixed assets utilised for research and development are capitalised and
 depreciated in accordance with the policies stated for Tangible Fixed
 Assets and Intangible Assets. 
 
 1.22 Joint venture operations
 
 The accounts of the Company reflect its share of the Assets,
 Liabilities, Income and Expenditure of the Joint Venture Operations
 which are accounted on the basis of the audited accounts of the Joint
 Ventures on line- by-line basis with similar items in the Company''s
 accounts to the extent of the participating interest of the Company as
 per the Joint Venture Agreements.
 
 1.23 Impairment of assets .
 
 i) The carrying amounts of assets are reviewed at each balance sheet
 date if there is any indication of impairment based on
 internal/external factors. An impairment joss is recognised wherever
 the carrying amount of an asset exceeds its recoverable amount. The
 recoverable amount is the greater of the asset''s net selling price and
 value in use. In assessing value in use, the estimated future cash
 flows are discounted to their present value at the weighted average
 cost of capital.
 
 ii) After testing for impairment, depreciation is provided on the
 revised carrying amount of the asset over its remaining useful life.
 
 1.24 Provisions and contingencies .
 
 A provision is recognized when enterprise has a present obligation as a
 result of past event and it is probable that an outflow of resources
 win be required to settle the obligation, in respect of which a
 reliable estimate can be made. Provisions are not discounted to its
 present value and are determined based on management estimate required
 to settle the obligation at the balance sheet date. These are reviewed
 at each balance sheet date and adjusted to reflect the current
 management estimates.