(i) ACCOUNTING CONVENTION
 
 The Financial statements have been prepared under the Historical Cost
 Convention on the basis of a going concern and in accordance with the
 accounting standards referred to in Section 211(3C) of the Companies
 Act, 1956, wherever applicable.
 
 (ii) FIXED ASSETS
 
 Fixed Assets are stated at original cost net of tax / duty credits
 availed, if any, less accumulated depreciation, amortization and
 impairment. Cost includes preoperative expenses and all expenses
 related to acquisition and installation of the concerned assets.
 
 (iii) BORROWING COSTS
 
 Borrowing Costs attributable to the acquisition or construction of
 qualifying assets are capitalized as part of such assets. All the other
 borrowing costs are charged to revenue.
 
 A qualifying asset is an asset that necessarily requires a substantial
 period of time to get ready for its intended use or sale.
 
 (iv) IMPAIRMENT OF ASSETS
 
 As at each Balance Sheet date, the carrying amount of fixed assets is
 tested for impairment so as to determine.
 
 a) the provision for impairment loss, if any, required or
 
 b) the renewal, if any, required of impairment loss recognized in
 previous periods.
 
 Impairment of loss is recognized when the carrying amount of an asset
 exceeds its recoverable amount.
 
 (v) INVESTMENTS
 
 Current Investments are carried at lower of cost and market value. Long
 Term Investments are stated at cost. Provisions for diminution in value
 of long-term investments are made, if the diminution is other than
 temporary.
 
 (vi) DEPRECIATION
 
 Depreciation is provided on Straight Line Method in the manner and at
 the rates specified in Schedule XIV to the Companies Act, 1956.
 
 (vii) INVENTORIES
 
 a) Inventories are valued at lower of cost and estimated net realizable
 value.
 
 b) Cost is arrived at on First-in-First Out basis.
 
 ( viii)FOREIGN CURRENCY TRANSACTIONS
 
 a) Foreign Currency Transactions are recorded at exchange rates
 prevailing on the date of such transaction.
 
 b) Foreign Currency monetary assets and liabilities at the year end are
 realigned to the exchange rate prevailing at the year end and the
 difference on realignment is adjusted in the cost of the respective
 assets.
 
 c) Non-monetary foreign currency items are carried at cost.
 
 (ix) REVENUE RECOGNITION
 
 a) Income and Expenditure are generally accounted on accrual basis
 except those with significant uncertainties.
 
 b) The income by way of Doctors'' Consultancy Fees is considered as
 accrued as and when the amounts are finalized and certainty of recovery
 from Patients is ascertained. The liability towards Consultant Charges
 is considered as accrued as and when the claim is accepted and the
 liability is crystalised.
 
 c) The insurance claims are accounted as and when the claims are
 settled or accepted by the insurance company whichever is earlier.
 
 (x) TAXES ON INCOME
 
 Tax on income for the current period is determined on the basis of
 taxable income and tax credits computed in accordance with the
 provisions of the Income Tax Act 1961, and based on the expected
 outcome of assessments/appeals.
 
 Deferred tax is recognized on timing differences between the accounting
 income and the taxable income for the year, and quantified using the
 tax rates and laws enacted or substantively enacted as on the Balance
 Sheet date.
 
 Deferred tax assets are recognized and carried forward to the extent
 that there is a reasonable certainty that sufficient future taxable
 income will be available against which such deferred tax assets can be
 realized.
 
 (xi) RETIREMENT BENEFITS
 
 a) Payments to defined contribution schemes are charged as expense as
 and when incurred.
 
 b) Post employment and other long term benefits which are defined
 benefit plans are recognized based on the present value of the
 obligation determined in accordance with Accounting Standard 15 on
 Employee Benefits.
 
 (xii) ACCOUNTING STANDARDS
 
 Accounting Standards prescribed by the Department of Corporate Affairs
 (Formerly Known as Department of Company Affairs) and referred to in
 Companies Act, 1956 have been followed wherever applicable.