1.1 Basis of preparation of financial statements
 
 The financial statements have been prepared to comply in all material
 respects in respects with the Notified ac- counting standard by
 Companies (Accounting Standards) Rules, 2006, (as amended) and the
 relevant provisions of the Companies Act, 1956. The financial
 statements have been prepared under the historical cost convention on
 an accrual basis. The accounting policies have been consistently
 applied by the Company and are consistent with those used in the
 previous year.
 
 1.2 Use of Estimates
 
 The preparation of financial statements in conformity with generally
 accepted accounting principles requires management to make estimates
 and assumptions that affect the reported amounts of assets and
 liabilities and disclosure of contingent liabilities at the date of the
 financial statements and the results of operations during the reporting
 period. Although these estimates are based upon managements best
 knowledge of current events and actions, actual results could differ
 from these estimates.
 
 1.3 Fixed assets and depreciation
 
 Fixed assets are stated at cost, less accumulated depreciation and
 impairment losses if any. Cost comprises the purchase price and any
 attributable cost of bringing the asset to its working condition for
 its intended use. Bor- rowing costs relating to acquisition of fixed
 assets which takes substantial period of time to get ready for its
 intended use are also included to the extent they relate to the period
 till such assets are ready to be put to use.
 
 Diagnostics equipments are being treated as raw traded items of
 inventory when they are received. However, if these instruments are
 issued from inventory to customers under placement agreement, these are
 treated as capi- tal assets in the period of such issues and are stated
 at cost.
 
 Depreciation is provided on the straight-line method (SLM). The
 depreciation rates prescribed in Schedule XIV to the Act are considered
 as the minimum rates. If the managements estimate of the useful life
 of a fixed asset at the time of acquisition of the asset or of the
 remaining useful life on a subsequent review is shorter than that
 envis- aged in the aforesaid Schedule, depreciation is provided at a
 higher rate based on the managements estimate of useful life /
 remaining life.
 
 Assets costing less than Rs 5,000 are fully charged to the profit and
 loss account in the year of acquisition.
 
 During the year, the Company, with effect from October 1, 2008 has
 revised the estimated useful life of its Placed Diagnostics Equipments
 (equipment placed at customers site) from 51 months to 60 months which
 has resulted in decrease in depreciation & increase in profit before
 tax by Rs. 22,047 (thousands) for the year.
 
 1.4 Intangible assets
 
 Intangible assets comprise goodwill and customer contracts arising from
 the acquisition of the business of Dade Behring during the previous
 year. These intangible assets are amortized on straight line basis
 based on the following useful lives, which in managements estimate
 represents the period during which economic benefits will be derived
 from their use:
 
 Schedules to the financial statements (Currency : Indian rupees
 thousands)
 
 Asset                             Useful life
 
 Goodwill                           36 months
 
 Customer Contracts                 36 months
 
 1.5 Impairment of assets
 
 The carrying amounts of tangible and intangible assets are reviewed at
 each balance sheet date if there is any indication of impairment based
 on internal/external factors. An impairment loss is recognized wherever
 the carrying amount of an asset exceeds its recoverable amount. The
 recoverable amount is the greater of the assets net selling price and
 value in use. In assessing value in use, the estimated future cash
 flows are discounted to their present value at the weighted average
 cost of capital.
 
 1.6 Inventories (also refer above note 1.3)
 
 Cost of inventories comprises all costs of purchase, conversion and
 other costs incurred in bringing the invento- ries to their present
 location and condition.
 
 Inventories are valued at the lower of cost and net realizable value.
 
 Excise duty is included in the value of finished goods inventory.
 
 Inventory is valued using weighted moving average basis. Net realizable
 value is the estimated selling price in the ordinary course of
 business, less estimated costs of completion and estimated costs
 necessary to make the sale.
 
 1.7 Revenue recognition:
 
 Revenue is recognized to the extent that it is probable that the
 economic benefits will flow to the Company and the revenue can be
 reliably measured.
 
 Sale of Goods
 
 Revenue from sales of products (Reagents and Kits) is recognized on
 transfer of all significant risk and rewards of ownership of the
 products on to the customers, which is generally on dispatch of goods
 or when no significant uncertainly exists regarding the amount of
 consideration that is derived from sale of goods. Revenue from sale of
 instruments is recognized up on installation of instruments at
 customers site. Sales are stated gross of excise duty and exclusive of
 sales tax and net of rebates and trade discounts. Excise Duty deducted
 from turnover (gross) are the amount that is included in the amount of
 turnover (gross) and not the entire amount of liability arose during
 the year.
 
 Service Income
 
 Revenues from maintenance contracts are recognised pro-rata over the
 period of the contract as and when ser- vices are rendered.
 
 Dividend
 
 Revenue is recognised when the shareholders right to receive payment
 is established by the balance sheet date.
 
 Interest
 
 Revenue is recognized on a time proportion basis taking into account
 the amount outstanding and the rate appli- cable.
 
 1.8 Leases:
 
 Where the Company is the lessee
 
 Leases where the lessor effectively retains substantially all the risks
 and benefits of ownership of the leased item, are classified as
 operating leases. Operating lease payments are recognized as an expense
 in the Profit and Loss account on a straight-line basis over the lease
 term.
 
 Where the Company is the lessor
 
 Assets subject to operating leases are included in fixed assets. Lease
 income is recognised in the Profit and Loss Account on a straight-line
 basis over the lease term. Costs, including depreciation are recognised
 as an expense in the Profit and Loss Account. Initial direct costs such
 as legal costs, brokerage costs, etc. are recognised immedi- ately in
 the Profit and Loss Account.
 
 1.9 Employee benefits
 
 (a) Short term employee benefits
 
 All employee benefits payable wholly within twelve months of rendering
 the service are classified as short- term employee benefits. Benefits
 such as salaries, wages, and short term compensated absences, etc. and
 the expected cost of ex-gratia is recognized in the period in which the
 employee renders the related service.
 
 (b) Post employment benefits
 
 Defined contribution plans
 
 Retirement benefit in the form of provident Fund and approved
 superannuation fund are defined contribution plan and contribution paid
 / payable under the scheme is recognized as expense in the profit and
 loss account of the year when the contributions to the respective funds
 are due. There are no other obligations other than the contribution
 payable to the respective trusts.
 
 Defined Benefit Plans:
 
 Gratuity liability is a defined benefit obligations and are provided
 for on the basis of an actuarial valuation on projected unit credit
 method made at the end of each financial year.
 
 Long Term Compensation:
 
 Long term compensated absences are provided for based on actuarial
 valuation. The actuarial valuation is done as per projected unit credit
 method
 
 Actuarial gains and losses are recognized immediately in the profit &
 loss account.
 
 1.10 Foreign currency transactions
 
 (I) Initial Recognition
 
 Foreign currency transactions are recorded in the reporting currency,
 by applying to the foreign currency amount the exchange rate between
 the reporting currency and the foreign currency at the date of the
 trans- action.
 
 (II) Conversion
 
 Foreign currency monetary items are reported using the closing rate.
 
 (III) Exchange Differences
 
 Exchange differences arising on the settlement of monetary items or on
 reporting such monetary items of company at rates different from those
 at which they were initially recorded during the year, or reported in
 previous financial statements, are recognized as income or as expenses
 in the year in which they arise.
 
 1.11 Taxation
 
 Tax expense comprises of current and deferred. Current income tax is
 measured at the amount expected to be paid to the tax authorities in
 accordance with the Income-tax Act, 1961 enacted in India. Deferred
 income taxes reflects the impact of current year timing differences
 between taxable income and accounting income for the year and reversal
 of timing differences of earlier years.
 
 Deferred tax is measured based on the tax rates and the tax laws
 enacted or substantively enacted at the balance sheet date. Deferred
 tax assets are recognised only to the extent that there is reasonable
 certainty that sufficient future taxable income will be available
 against which such deferred tax assets can be realised.
 
 The carrying amount of deferred tax assets are reviewed at each balance
 sheet date. The company writes-down the carrying amount of a deferred
 tax asset to the extent that it is no longer reasonably certain, that
 sufficient future taxable income will be available against which
 deferred tax asset can be realized. Any such write-down is reversed to
 the extent that it becomes reasonably certain that sufficient future
 taxable income will be available
 
 1.12.  Earnings per share
 
 Basic earnings per share are calculated by dividing the net profit or
 loss for the period attributable to equity shareholders by the weighted
 average number of equity shares outstanding during the period.
 
 For the purpose of calculating diluted earnings per share, the net
 profit or loss for the period attributable to equity shareholders and
 the weighted average number of shares outstanding during the period are
 adjusted for the effects of all dilutive potential equity shares, if
 any.
 
 1.13.  Provisions
 
 A provision is recognized when an enterprise has a present obligation
 as a result of past event; it is probable that an outflow of resources
 will be required to settle the obligation, in respect of which a
 reliable estimate can be made. Provisions are not discounted to its
 present value and are determined based on best estimate required to
 settle the obligation at the balance sheet date. These are reviewed at
 each balance sheet date and adjusted to reflect the current best
 estimates.
 
 1.14. Cash and Cash equivalents.
 
 Cash and cash equivalents in the balance sheet comprise cash at bank
 and in hand and short-term investments with an original maturity of
 three months or less.