a.  Method of Accounting:
 
 The financial statements are prepared on the historical cost convention
 basis and on accrual concept as a going concern in accordance with the
 applicable Accounting Standards referred to in sub section 3C of
 section 211 of the Companies Act, 1956 and normally accepted accounting
 principles.
 
 b.  Accounting Standards:
 
 Accounting standards prescribed by the Department of corporate Affairs
 (Formerly known as Department of Company Affairs) and referred to in
 the companies Act, 1956 have been followed wherever applicable.
 
 c.  Fixed Assets and its Depreciation:
 
 Fixed assets are stated at cost comprises of the purchase price and any
 attributable cost of bringing the assets to its working condition for
 its intended use.
 
 Depreciation is calculated under WDV method at the rates prescribed
 under amended schedule XIV of the Companies Act, 1956 and prorata basis
 on additions.
 
 d.  Inventories:
 
 Closing stock of Pharmacy, Canteen, Theatre items, and Consumables are
 valued at lower of cost or net realizable value and stock of Optical
 and contact lens are valued at Market Price. Cost is arrived at first
 in first out basis except optical and contact lens.
 
 e.  Revenue Recognition:
 
 All Income and Expenses to the extent they are considered as receivable
 and payable respectively, unless specifically stated to be otherwise
 are accounted for on mercantile basis. In respect of claims from
 insurance are accounted as and when the claims are accepted or settled
 by the insurance company whichever is earlier.
 
 f.  Borrowing cost:
 
 Borrowing cost attributable to the acquisition or construction of
 qualifying assets are capitalized as part of such assets. All other
 borrowing cost is recognized as an expense in the period in which they
 are incurred.
 
 A qualifying asset is an asset that necessarily requires a substantial
 period of time to get ready for its intended use or sale.
 
 g.  Lease:
 
 The Company''s significant Leasing arrangements are in respect of
 Operating lease for Medical Equipments which are cancelable in nature.
 The Lease rentals paid /received under such Agreements are charged to
 Profit and Loss Account.
 
 h.  Translation of Foreign Currency Transactions:
 
 a.  Foreign currency transactions are recorded at exchange rates
 prevailing on the date of such transactions.
 
 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 Profit and Loss Account.
 
 c.  Non-monetary foreign currency items are carried at cost.
 
 i.  Retirement benefits:
 
 a.  Payment 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.
 
 j.  Taxes on Income:
 
 Tax on income for the current period is determined on the basis of
 taxable income and tax credit 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
 difference 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.
 
 k.  Interim Financial Reporting:
 
 Quarterly financial results are published in accordance with the
 guidelines issued by SEBI. The recognition and measurement principles
 as laid down in the standard are followed with respect to such results.
 Quarterly financial results are subjected to a limited review by the
 auditors as required by SEBI.
 
 1.  Impairment of Assets:
 
 At the Balance Sheet date, an assessment is done to determine whether
 there is any indication of impairment in the carrying amount of the
 company''s fixed assets. An asset is treated as impaired when carrying
 cost of assets exceeds its recoverable value.
 
 An impairment loss is charged to the profit and loss account in the
 year in which an asset identified as impaired. The impairment loss, if
 any, recognized in prior accounting period is reversed if there has
 been a change in the estimate of recoverable amount.
 
 m.  Miscellaneous:
 
 Miscellaneous expenditure in connection with merger, increase in share
 capital, hospital / equipments inauguration expenses, hospital
 renovation expenses and other preliminary expenses are being written
 off over a period of five years expecpt new branches undertaken during
 this year.