Dear Members,
 
 The Directors take pleasure in presenting the Twenty Fifth Annual
 Report together with the Audited Statement of Accounts for the
 Financial Year ended March 31, 2011.
 
 FINANCIAL RESULTS                                   (Rs. in Lacs)
 
 Particulars                                31.3.2011       31.3.2010
 
 Revenues                                    17595.30        13193.41
 
 EBIDTA                                       3726.88         2675.66
 
 Less: Finance cost                           1111.24          483.71
 
 Depreciation                                  662.70          468.80
 
 Earnings Before tax                          1952.94         1723.15
 
 Less: Provision for Taxation                  743.30          564.57
 
 Earnings After Tax                           1209.64         1158.58
 
 Add: Balance brought forward                  585.72          486.64
 
 Amount available for appropriation           1795.36         1645.22
 
 Dividend (Inclusive of Dividend Tax)          158.97          159.50
 
 Transfer to General Reserve                  1000.00          900.00
 
 Balance carried forward to Balance Sheet      636.39          585.72
 
 DIVIDEND
 
 Your Directors are pleased to recommend the payment of dividend for the
 year ended March 31, 2011 at (Rs.1.25 per share). The proposed dividend
 absorbs Rs. 137 Lacs for dividend and Rs. 22 Lacs for Dividend Tax.  As
 per Indian Income Tax Act, the dividend payable by the Company is Tax
 free in the hands of shareholders.
 
 BUSINESS PERFORMANCE
 
 The results for the year 2010-11 continues to be commendable. Your
 Hospital has achieved a revenue of Rs. 17595.30 Lacs posting a robust
 growth of 33%. The EBIDTA stood at Rs. 3726.88 Lacs as against Rs.
 2675.66 Lacs in 2009-10.
 
 All the Centers have performed well and have improved on their revenues
 and profitability. The overall after tax profitability of the Hospital
 is Rs. 1209.64 Lacs for the period under review as against the profit
 of Rs.1158.58 Lacs of that of the previous year.
 
 The major expansion programme embarked by the Hospital has started
 yielding dividends and the same is reflected by the impressive growth
 achieved by it. Though our Hospital could maintain the same operational
 profit, the increased finance cost, higher depreciation and increased
 provision for deferred tax liability due to the capital spending has
 reduced the profit margin after taxation.
 
 TECHNOLOGY ABSORPTION
 
 In our Quest to give the best health care facilities to the patients,
 your Hospital always believe in upgrading the technology by the
 state-of-the-art medical equipments.
 
 During the year under review, your Company has added Magnetom Skyra 3T
 System, PACS, Mammography System, Triology High Energy Linear
 Accelerator, Artis Zee Biplane, Ventilators, Monitors etc. to deliver
 health care at par with international standards. SPECT CT and PET CT
 for cancer treatment will be added very shortly.
 
 We have installed new medical equipments amounting to Rs. 5126.60 Lacs
 which are the best and latest available in medical world.
 
 CONTINUOUS MEDICAL EDUCATION PROGRAMMES (CME)
 
 Your company gives utmost importance to Continuous Medical Education
 (CME) Programmes as it is always in the forefront and drives in
 bringing the latest developments in the medical world to India.
 
 Your company organized many Seminars, Workshops, Camps and Exhibitions
 in the field of Cancer, Cardiology, Neurology, Paediatric, Urology,
 General Medicine, Diabetic etc and conducted an International
 Conference Kovai Lumen 2011, Two National Conferences, ICU Update 2010
 and TIP 2010.
 
 Your company has conducted many CME Programmes outside Coimbatore for
 the benefit of medical professionals who always play a vital role in
 educating the patients and community at large about the latest
 developments in the health care industry .
 
 CORPORATE SOCIAL RESPONSIBILITIES
 
 As a responsible corporate citizen, your Company has organized many
 free medical camps in rural parts of Tamil Nadu and as part of its
 efforts to propagate healthcare and provide services to the poor at
 their door step. It has also conducted many awareness programmes among
 the public.
 
 During the year your company has conducted Health awareness programmes,
 Cancer awareness programmes, Diabetic awareness campaigns, Disaster
 Control Management etc. and it will continue to undertake many such
 programmes as part of its corporate philosophy and social
 responsibility.
 
 AWARDS
 
 Your Hospital has been awarded the best IT enabled Hospital for the
 year 2010 by Ministry of Communication & IT, Ministry of Corporate
 Affairs, Govt. of India.
 
 Your Hospital has been awarded the National Energy Conservation Award
 for 2010 for excellence in energy conservation in the country from the
 Bureau of Energy Efficiency (BEE) under the Ministry of Power, Govt. of
 India.
 
 CARE RATING
 
 CARE Rating has confirmed the financial credit rating of Rs.CARE BBB''
 (Triple B) for the enhanced long term facilities and Rs.PR 3'' (PR
 Three) for short term facilities.
 
 DIRECTORS RESPONSIBILITY STATEMENT AS PER SECTION 217(2AA) OF THE
 COMPANIES ACT 1956
 
 In the preparation of Profit and Loss Account for the year ended March
 31, 2011 and the Balance Sheet as on that date, all the applicable
 accounting standards have been followed. Accounting policies, that are
 reasonable and prudent, have been selected and applied consistently so
 as to give a true and fair view of the state of affairs of the Company
 at the end of the financial year and the Profit and Loss Account of the
 Company for the year ended March 31, 2011. The said Profit and Loss
 Account and Balance Sheet have been prepared on a going concern basis.
 The Company maintains proper records in accordance with the provisions
 of the Companies Act 1956, for safeguarding the assets of the Company
 as also for preventing and detecting fraud and other irregularities.
 
 DIRECTORS
 
 Mr.K.Saminathan, Dr.M.C.Thirumoorthi and Dr.K.S.K.Murugaiyan retire by
 rotation at the forthcoming Annual General Meeting and being eligible,
 offer themselves for re-appointment.
 
 SUBSIDIARY COMPANY
 
 The entire Share Capital of Idhayam Hospitals Erode Limited was
 acquired on 23.4.2007 and in view of this Idhayam Hospitals Erode
 Limited has become wholly owned subsidiary of the Company effective
 from the above date.
 
 The Ministry of Corporate Affairs, Govt. of India vide its circular
 2/2011 dated 8th February 2011 has granted an exemption to the
 Companies under Section 212(8) of the Companies Act 1956 from attaching
 accounts along with the report of the Board of Directors as required by
 Section 212(1) of the Companies Act 1956 of the Subsidiary Companies to
 the Balance Sheet of the holding Company for the Financial Year ended
 31.3.2011. However the Company will provide the annual accounts of its
 Subsidiary Company and the related detailed information on the specific
 request made by any investor and the said accounts are open for
 inspection at the registered office of the Company during office hours
 on all working days, except Sundays and holidays between 2.00 p.m. and
 4.00 p.m.
 
 Particulars relating to the Subsidiary Company as per the conditions
 mentioned in the circular issued by the Ministry of Corporate Affairs
 are annexed to the accounts of the Company.
 
 As required under Clause 32 of the listing agreement with the Stock
 Exchanges and in accordance with the requirements of Accounting
 Standard AS-21 issued by the Institute of Chartered Accountants of
 India, the Company has prepared Consolidated Financial Statements of
 the Company and its Subsidiary are included in the Annual Report.
 
 PARTICULARS OF EMPLOYEES
 
 As on March 31, 2011, none of the employee was in receipt of
 remuneration in excess of the limits prescribed in sub-section 2A of
 Section 217 of the Companies Act 1956, read with Companies (Particulars
 of Employees) Amendment Rules 1994.
 
 INFORMATION AS PER SECTION 217(1)(E) OF THE COMPANIES ACT, 1956
 
 Since the Company is in service industry and does not do any
 manufacturing activity, the particulars regarding conservation of
 energy and technology absorption in the Companies (Disclosure of
 Particulars in the Report of the Board of Directors) Rules 1988 are not
 applicable. The particulars regarding foreign exchange inflow and outgo
 appear as item No.10 in Notes on Accounts.
 
 FIXED DEPOSITS
 
 As per Section 58A of the Companies Act 1956, the Company has not
 accepted any deposits from the public during the year.
 
 AUDITORS
 
 M/s Haribhakti & Co., Chartered Accountants, Coimbatore are the
 Auditors of the Company and holds office up to the ensuing Annual
 General Meeting of the Company and being eligible, offer themselves for
 re- appointment.
 
 REPORT ON CORPORATE GOVERNANCE
 
 The Company has already complied with the requirement of the corporate
 governance in terms of the listing agreement with the Stock Exchanges.
 The detailed report on corporate governance is annexed and forming part
 of this report.
 
 COMPLIANCE CERTIFICATE ON CORPORATE GOVERNANCE
 
 A certificate from the Auditors of the Company regarding compliance of
 conditions of corporate governance as stipulated under Clause 49 of the
 Listing Agreement entered into with the Stock Exchanges is attached to
 this report.
 
 HUMAN RESOURCES DEVELOPMENT
 
 As your Company is in the service industry, human resource plays a very
 crucial role in the operations and as such your Company accords great
 recognition for its continuous development.
 
 Your Company enjoys cordial relations with Doctors and Employees. Your
 Board places on record its appreciation for the dedicated services of
 all the Doctors and Employees.
 
 ACKNOWLEDGEMENTS
 
 Your Directors place on record their appreciation for the continued
 co-operation extended by the Bankers of the company and look forward to
 their continued support in the future.
 
                                        For and on behalf of the Board
 
 COIMBATORE                                  DR.NALLA G PALANISWAMI
 
 18.05.2011                             CHAIRMAN AND MANAGING DIRECTOR