1.  Share Capital:
 
 I.  Share Capital:
 
 a) Before amalgamation 211000 Equity shares of Rs.100 each consists of
 initial subscription to memorandum and subsequent allotments to the
 promoters.
 
 b) 497900 Equity shares of Rs.100 each issued on 03.08.2007 pursuant to
 High Court Order dated 09.07.2007 approving the scheme of amalgamation
 of Dr. S.K.S. Eye Care Centre Private Limited with Lotus Eye Care
 Hospital Limited
 
 c) 345233 Equity shares of Rs.100 each were allotted as bonus shares on
 28.08.2007 by capitalization of general reserve.
 
 d) The face value of equity shares was split from Rs.s.100 per share to
 Rs.10 per share on 03.09.2007. Due to this the total number of shares
 consists of 10541330 shares of the each.
 
 e) 255000 Equity shares of Rs.10 each were allotted to M/s.Bennett and
 Coleman Company Limited on 22.01.2008 on preferential allotment with a
 premium of Rs.40 per share.
 
 f) 10000000 equity shares of Rs. 10 each allotted on 03.07.2008 through
 Initial Public Offer (IPO) with a premium of Rs.28 per share.
 
 II).  Securities Premium Account:
 
 The premium collected on above issue of equity shares amounting to Rs.
 2800 Lakhs and also of the preferential allotment of Rs. 102 Lakhs has
 been credited to Securities Premium Account during the financial year
 2008-09.
 
 a). Out of Public Issue, Refund amounting to Rs. 0.26 Lacs has been kept
 in a separate bank account (Axis Bank Ltd, Coimbatore).
 
 b). Advance paid out of Public issue for purchase of land at Salem
 project and Tirupur Project was returned by the both parties amounting
 to f. 535 Lacs and the same was utilized for the centers opened at
 Mettupalayam, salem - II and Cochin, which were not envisaged in the
 offer document.
 
 c). Funds deployed includes equipment cost f. 187.60 lacs not envisaged
 in offer document.
 
 2) Rs. 21.93 Lacs kept in the form of FD in Indusind Bank Coimbatore,
 against Bankguarantee to Bombay stock exchange.
 
 3) Figures have been rounded off to the nearest rupee and previous
 year''s figures have been regrouped wherever necessary.
 
 4) Provision for all liabilities including depreciation is neither
 inadequate nor more than what is necessary .
 
 5) a) The company has not given any guarantee on behalf of the
 directors or other officers
 
 b) i) a) Amounts due at the end of the year from Private companies in
 which one of the directors is a director is Rs. Nil (Previous year Rs.
 Nil)
 
 b) Amounts due at the end of the year from the trust in which one of
 the directors is a trustee is Rs. -Nil (Previous year Rs.  Nil)
 
 ii) Maximum amount due from Dr.S.K.Sundaramoorthy at any time during
 the year is Rs. Nil
 
 iii) Maximum amount due from Lotus Vision Research Trust at any time
 during the year Rs.  Nil.
 
 6) No dividend is recommended for the financial year 2010-11
 
 7) Remuneration paid to Managing / Whole time Director during the year
 2010-11.
 
 Remuneration Rs. 18.00 Lacs
 
 House Rent Rs.  2.24 Lacs
 
 8) The company has initiated the process of obtaining confirmation from
 suppliers who have registered themselves under the Micro, Small and
 Medium Enterprises Act, 2006. Since the relevant information is not
 readily available, no disclosures have been made in these financial
 statements. Based on the information available with the company and in
 the considered view of the management and relied upon by the auditors,
 impact of interest, if that may be payable under the provisions of the
 act is not expected to be material.
 
 9) Due to certain practical difficulties relating to this specific
 industry and items are largely small value, quantitative particulars in
 respect of operations and inventories have not been furnished as per
 the requirement of schedule VI to the Companies Act, 1956.
 
 10) Security particulars of secured loans:
 
 The term loans/working capital limits availed from the Indian Overseas
 Bank, HDFC Bank Ltd. and Citicorp Finance Ltd are primarily Secured by:
 
 a.  Charge on the immovable properties of the company situated at
 770/12, Avinashi Road, Civil Aerodrome Post, Coimbatore -14 and 155B,
 East Periasamy Road, Near Chinthamani, R.S.Puram, Coimbatore - 641 002.
 
 b.  Charge on the movable fixed assets including medical equipments has
 been assigned to respective bankers who funded the particular movable
 assets.
 
 c.  The working capital facility availed from the Indian Overseas Bank
 is primarily secured by hypothecation of Stocks and Book debts.
 
 d.  The loan availed from the Indian Overseas Bank is collaterally
 secured by the land at SF No.89/1A to 89/1F at Pattanam Village
 belonging to Dr.S.K.Sundaramoorthy.
 
 e.  The Term loans and Working capital facility availed from the Indian
 Overseas Bank are further guaranteed by the personal guarantees of the
 Chairman and Managing Director and other Promoter directors of the
 Company.
 
 11) There is no contingent liability as on 31.03.2011
 
 12) During the year there is no impairment of assets as certified by
 the management.
 
 13) Disclosure regarding lease transactions:
 
 i.  Lease rent paid to Dr.S.K.Sundaramoorthy for leasing medical
 equipments to the company Rs.19.92 Lacs ii.  Lease rent paid to Lotus
 Vision Research Trust for leasing medical equipments to the company
 Rs.9.60 Lacs
 
 14) Segment Reporting:
 
 Based on the guiding principles given in accounting standard on the
 Segment Reporting (AS 17) issued by the ICAI, there is only one
 Reportable segment namely Eye Care and related activities. As the
 Company''s business activity is interrelated, the disclosure requirement
 of AS-17 in this regard does not arise.
 
 15) Specific debts identified as irrecoverable and doubtful are written
 off during the year Rs. 11.12 lacs classified as miscellaneous expenses.
 
 16) Insurance claim receivable accounted during the previous year
 2009-2010 amounting to Rs.13.50.lacs has not been admitted by the
 insurance company. Hence the said amount has been charged to Profit and
 Loss account during the financial year 2010-11
 
 17) Related party disclosure:
 
 List of related parties as identified by the management are as under
 
 (I). Names of related parties and description of relationship
 
 a.  Key Management Personnel : 1. Dr.S.K.Sundaramoorthy
 
 : 2. Ms.Sangeetha Sundaramoorthy
 
 b.  Other related parties : Lotus Vision Research Trust
 
 22) Employees Benefits - The Company has provided for employee benefits
 as per Accounting Standard 15 in respect of defined benefit plan
 (Gratuity)
 
 Description of the company''s defined benefit plan: The Company operates
 a defined benefit plan for payment of post employment benefits in the
 form of gratuity. Benefits under the plan are based on pay and years of
 service and are vested on completion of five years of service as
 provided in the Payment of Gratuity Act, 1972. The terms of the benefit
 are common for all the employees of the company.
 
 18) Leave encashment benefits have been provided as per the rules of
 the company and on actuarial Valuation. No separate fund has been
 created. Amount charged to Profit and Loss Account during the year is
 Rs. 3.47 Lacs.
 
 19) Amount of contribution to Employees Provident Fund during the year
 is Rs.7.21 Lacs. (Previous year Rs.1.97 lacs)
 
 20) The company has not entered into any derivative transactions during
 the year under report.
 
 21) Confirmation of balance are yet to be obtained from few parties.
 
 22) The caution deposit collected from the employees and doctors who
 are in service amounting to Rs. 29.25 Lakhs is remaining to be deposited
 with scheduled bank / post office as required under section 417 of the
 Companies Act, 1956.