(A) GENERAL :
 
 The Financial Statements are prepared on. the historical cost basis.
 
 Revenue and expenses are accounted for on accrual basis except for
 receipts under the Health Guard Schemes which are fully recognised as
 income in the accounting period of receipt. The corresponding cost of
 services to be rendered against these receipts are charged to revenue
 in the accounting period in which incurred.
 
 (B) FIXED ASSETS:
 
 (1) Fixed Assets are capitalised at cost inclusive of inward freight,
 duties and taxes and installation expenses relating to acquisition.
 
 (2) Fixed Assets which are revalued on the basis of Fair Market Value
 determined by technical evaluation resulting in values higher than the
 book value (Written Down Value) are stated at their Fair Market Value.
 
 (3) Lease Rentals paid in respect of Fixed Assets (taken on financial
 lease) are charged to Profit and Loss Account.
 
 (4) Fixed Assets acquired through Foreign Currency Loans, where
 floating rates are to be adopted, are valued at the exchange rates
 prevailing as on the last date of the accounting period or as near
 thereto and depreciation is provided on this value.
 
 (C) DEPRECIATION :
 
 (i) Depreciation is provided on Straight Line Method at the rates
 specified in Schedule XIV to the Companies Act, 1956
 
 (ii) The additional charge of depreciation on account of increase in
 revaluation is withdrawn from the Revaluation Reserve Account.
 
 (D) FOREIGN CURRENCY LOANS :
 
 Foreign Currency Loans which have been availed for the acquisition of
 fixed assets where floating rates are to be adopted for conversion are
 valued at the exchage rates prevailing as on the last date of the
 accounting period or as near thereto, as confirmed by the Lending
 Institutions.
 
 (E) INVENTORIES:
 
 Stock of Inventory representing Hospital Materials, Lab Consumables
 etc. are valued at lower of cost and net realisable value.
 
 (F) EMPLOYEE RETIREMENT BENEFITS :
 
 Companys contribution to provident fund and provision for gratuity and
 Leave encashment benefit on the basis of actuarial valuation are
 charged to Profit and Loss Account.
 
 (G) DEFERRED REVENUE EXPENDITURE:
 
 Deferred Revenue Expenditure is written off over a period of ten years.
 
 (H) PRELIMINARY EXPENDITURE:
 
 Preliminary Expenditure is written off over a period of five years.