(I) Accounting Convention
 
 The financial statements have been prepared to comply with the
 mandatory accounting standards issued by the Companies (Accounting
 Standards) Rules, 2006 and the relevant provisions of the Companies
 Act, 1956. The financial statements have been prepared under the
 historical cost convention on accrual basis. The accounting policies
 have been consistently applied by the company unless otherwise stated.
 
 (II) Use of Estimates
 
 The preparation of financial statements is in conformity with general
 accepted accounting principles requires making of estimates and
 assumptions that affect the reported amounts of assets and liabilities
 and disclosure of contingent assets & liabilities at the date of
 financial statements and the reported amounts of revenues and expenses
 during the reporting year. Differences between the actual results and
 estimates are recognized in the year in which the results are known/
 materialized.
 
 (III) Fixed Assets
 
 Land and Building are stated at revalued amount as a result of
 revaluation on 31/3/1999. Other Fixed assets are accounted for the
 
 historical cost basis, inclusive of the cost of installation as the
 case may be.
 
 (IV) Depreciation
 
 Depreciation has been provided on the straight line method on all the
 assets as per schedule XIV of the Companies Act, 1956. The Company has
 been providing higher rates over and above minimum rates prescribed in
 the Companies Act 1956. During the year the company has provided higher
 rates of depreciation on block of assets comprising Building, Medical
 Equipment Indigenous, Furniture and Fixture, Vehicle and Computers
 keeping in view the remaining useful life of the respective assets.
 
 The company has charged depreciation amount on higher rates of Rs
 8,19,53,192/- to Profit and Loss Account during the year. The
 depreciation amount on normal rates would have been Rs 5,01,97,860/-
 during the year.
 
 (V) Inventory
 
 Medicines, surgical items, Stores have been valued at cost, Consumables
 tools have been valued at their usage value.
 
 (VI) Foreign currency transactions
 
 Transactions in foreign currency are recorded at standard
 rates/original rates of exchange in force at the time the transactions
 are effected.
 
 (VII) Investments
 
 - Long term Investments have been valued at cost.
 
 - The company has filed an application with RBI for approval of
 liquidation of investments in foreign joint venture.
 
 (VIII) Gratuity
 
 The Company has made provision for Gratuity as per the payment of
 Gratuity Act.
 
 (IX) Revenue Recognition
 
 Revenue is recognized on the performance of related service and
 includes services of patients undergoing treatment and pending billing.
 
 (X) Tax on Income
 
 Income taxes are computed using the tax effect accounting method, where
 taxes are accrued in the same year the related revenue and expenses
 arise. A Provision is made for income tax annually based on the tax
 liability computed after considering tax allowances and exemptions. The
 differences that result between the profit offered for income taxes and
 the profits as per the financial statements are identified and
 thereafter a deferred tax asset or deferred tax liability is recorded
 for timing differences, namely the differences that originate in one
 account year and reverse in another, based on the tax effect of the
 aggregate amount being considered. The tax effect is calculated on the
 accumulated timing differences at the end of an accounting year based
 on prevailing enacted or substantially enacted regulations. Deferred
 tax assets are recognized only if there is a reasonable certainty that
 they will be realized in future.
 
 (XI) Provision, Contingent Liabilities and Contingent Assets
 
 Provisions involving substantial degree of estimation in measurement
 are recognized when there is a present obligation as a result of past
 events and it is probable that there will be an outflow of resources.
 Contingent liabilities are not recognized but are disclosed in the
 notes. Contingent assets are neither recognized nor disclosed in the
 financial statements.
 
 (XII) Cash Flow Statement
 
 Cash flow are reported using the indirect method as specified in the
 Accounting Standard AS-3, Cash Flow Statement.
 
 (XIII) Impairment of Assets
 
 An asset is treated as impaired when the carrying cost of assets
 exceeds its recoverable value. An impairment loss is charged to Profit
 & Loss Account in the year in which an asset is identified as impaired.
 The impairment loss recognized in prior accounting period is reversed
 if there has been a change in the estimate of recoverable amount.