1.  BASIS OF PREPARATION OF FINANCIAL STATEMENTS
 
 The financial statements are prepared and presented under historical
 cost convention, on the accrual basis of accounting in accordance with
 the generally accepted accounting principles followed in India (Indian
 GAAP) and the relevant provisions of the Companies Act, 1956 and
 comply with the accounting standards prescribed in the Companies
 (Accounting Standards) Rules, 2006, issued by the Central Government,
 in consultation with the National Advisory Committee on Accounting
 Standards, to the extent applicable.
 
 2.  REVENUE RECOGNITION
 
 Sales are recorded net of trade discounts, rebates, sales tax but
 include excise duty.
 
 Sales of goods / equipments are recognized on transfer of risks and
 rewards of ownership in the goods to the customers / completion of
 installation.
 
 Income from annual maintenance service contracts is recognized on a
 straight-line basis over the period of contracts and income from other
 service contracts is recognized on completion of the service rendered.
 
 Revenues from software development and accounting services are billed
 to clients on cost plus basis as per the terms of the specific
 contracts and are recognized based on software developed. Cost and
 earnings in excess of billings are classified as unbilled revenue.
 
 Interest income is recorded on a time proportion basis taking into
 account the amounts invested and the rate of interest.
 
 3.  INTANGIBLE ASSETS
 
 Intangible assets are amortized on the straight line basis based on the
 useful lives, which, in managements estimate represent the period
 during which economic benefit will be derived from their use. The
 period of amortization for intangible assets is as (a) Goodwill - 60
 months, (b) Software - 36 months, (c) Brands - 60 months and (d)
 Non-compete fees - 36 months.
 
 4.  FIXED ASSETS AND DEPRECIATION
 
 Fixed assets are valued at cost. Depreciation is provided on the
 original cost on a straight line method at the rates given in Schedule
 XIV of the Companies Act, 1956, (as amended vide notification GSR 756
 [E] dated 16.12.1993) except in case of following class of assets for
 which higher depreciation, at the rates mentioned, is provided:
 
 (a) CE-test and measuring instruments 15%, (b) soda lime glass furnace
 22.22%-24%, (c) press tools and moulds - 20%-40%, (d) furniture and
 fittings 7%-30.8%, (e) room air conditioners 7%-l4%, (f) office
 machinery 7%- 34.7%, (g) computers 20%-50%, (h) cars 12%-45% and (i)
 feeder line 20%.
 
 Life class of the assets acquired on amalgamation, are aligned to those
 followed by the company and accordingly rates are adjusted except for
 few assets acquired from erstwhile Philips Software Centre Limited
 (PSCL), which are charged over and above the rates followed by the
 Company; these are in respect of lease hold improvements 20%, plant and
 machinery, furniture and fixtures, vehicles 33.33%. Assets costing less
 than Rs.5000 are fully depreciated in the year of purchase.
 
 5.  LEASES
 
 Operating lease payments are recognized as an expense in the Profit and
 Loss Account on straight line basis over the period of the lease.
 
 Assets acquired under finance lease from April 1, 2001 are capitalised
 at the lower of their fair value and the present value of the minimum
 lease payments at the inception of lease.  Assets obtained on finance
 lease are depreciated over the lease period.
 
 Assets given out on financial leases are recognised as receivable at an
 amount equal to the net investment in the lease.The rentals received on
 such leases are apportioned between the financial charge using the
 implicit rate of return, which is recognized as income and against
 principal outstanding, which is reduced from the amounts receivable.
 
 6.  IMPAIRMENT OF ASSETS
 
 The Company assesses at each Balance Sheet date whether there is any
 indication that an asset may be impaired. If any such indication
 exists, the Company estimates the recoverable amount (higher of net
 realizable value and value in use) of the asset. If such recoverable
 amount of the asset or the recoverable amount of the cash generating
 unit to which the asset belongs is less than the carrying amount, the
 carrying amount is reduced to its recoverable amount. The reduction is
 treated as an impairment loss and is recognized in the Profit and Loss
 Account. If at the Balance Sheet date there is an indication that a
 previously assessed impairment loss no longer exists, the recoverable
 amount is reassessed and the asset is reflected at the recoverable
 amount subject to a maximum of depreciable historical cost.
 
 7.  INVENTORIES
 
 Inventories are valued at cost or net realisable value whichever is
 lower In case of medical equipments / systems, cost is determined on
 the basis of First in First Out method due to nature of the business.
 For all other items, cost is determined on the basis of the weighted
 average method and includes all costs incurred in bringing the
 inventories to their present location and condition. Finished goods and
 work-in-progress include appropriate proportion of costs of conversion.
 Obsolete, defective and unserviceable stocks are duly provided for
 
 8.  INVESTMENTS
 
 Long-term investments are stated at cost less any decline, other than
 temporary, in value, determined on an individual investment basis.
 
 9.  FOREIGN CURRENCY TRANSACTIONS
 
 Foreign currency transactions are recorded in the books of the Company
 at standard exchange rates fixed every month on the basis of a review
 of the actual exchange rates. The difference between the actual rate of
 settlement and the standard rate is charged or credited to Profit and
 Loss Account.
 
 In respect of current assets and current / long-term liabilities, the
 overall net loss or gain, if any, on conversion at the exchange rates
 prevailing on the date of the Balance Sheet is charged to revenue.
 
 The premium or discount arising at the inception of forward exchange
 contracts, which are not intended for trading or speculation purposes,
 are amortised as expense or income over the life of the contract.
 Exchange differences on such contracts are recognised in Profit and
 Loss Account in the reporting period in which the exchange rates
 change. Any profit or loss arising on cancellation or renewal of such
 forward exchange contracts is recognised as income or as expense for
 the period.
 
 Forward contracts which are not covered by Accounting Standard (AS) I I
 are measured using Mark to Market principle with resulting net losses
 thereon being recorded in the Profit and Loss Account.
 
 10.  REPLACEMENT GUARANTEE
 
 The Company periodically assesses and provides for the estimated
 liability on guarantees given on sale of its products based on past
 performance of such products.
 
 11.  RETIREMENT BENEFITS
 
 Liability for defined benefit plan is provided on the basis of
 actuarial valuation carried out by an independent Actuary at year end
 using the projected unit credit method. Actuarial gains and losses are
 recognized immediately in the Profit and Loss Account. Companys
 contributions to defined contribution plans are charged to Profit and
 Loss account as incurred. Termination benefits are recognized as and
 when incurred.
 
 12.  PROVISIONS AND CONTINGENCIES 
 
 A provision is recognized when:
 
 The Company has a present obligation as a result of a past event;
 
 • It is probable that an outflow of resources embodying economic
 benefits will be required to settle the obligation; and
 
 • A reliable estimate can be made of the amount of the obligation.
 
 A disclosure for a contingent liability is made when there is possible
 obligation or a present obligation that may, but probably will not,
 require outflow of resources. Where there is a possible obligation or a
 present obligation that the likelihood of outflow of resources is
 remote, no provision or disclosure is made.
 
 13.  TAXATION
 
 Income-tax expense comprises current tax and deferred tax charge or
 release. Current tax is determined as the amount of tax payable in
 respect of taxable income for the period. The deferred tax charge or
 credit is recognized using current tax rates. Where there is unabsorbed
 depreciation or carry forward losses, deferred tax assets are
 recognized only if there is virtual certainty of realization of such
 assets. Other deferred tax assets are recognized only to the extent
 there is reasonable certainty of realization in future. Such assets are
 reviewed I as at each Balance Sheet date to reassess realization.