Annual Report (Full Version) 08-09

Max India Limited ANNUAL REPORT 2008-09 2
IN THE BUSINESS OF
LIFE
TRUST + SERVICE = GROWTH

We are in The Business of Life…
Building each of our businesses involves Trust
Customers choose insurance companies and products on Trust
The ailing choose healthcare and hospitals based on Trust
Pharmaceutical and medical companies choose clinical research
partners on Trust
Manufacturers of food products and edibles select packaging material
based on the Trust of health and safety
Trust is paramount to our business…
As is our unwavering passion for best-in-class Service

Everywhere; for every customer; all the time
Because we believe in a simple truth…
When you combine Trust with Service

You get Growth
Max India Limited…Growing for India

LETTER TO
SHAREHOLDERS
IN 2008-09, MAX INDIA

AS A GROUP CROSSED THE
US$ 1 BILLION REVENUE MARK
Dear Shareholders,
2008-09 has been the most volatile year witnessed by Then came September 2008 and with it the severe jolts
the world economy since the 1930s. If you will from the US: the failure of Fannie Mae and Freddie
recollect, despite the US overhang of sub-prime loans, Mac forcing a full-fledged government takeover;
the year started with a continuing global price spiral. bankruptcy of Lehman Brothers; Merrill Lynch being
The prices of all major commodities continued to rise forced to sell to Bank of America; the collapse and
to alarming levels — and peaked in July 2008 when takeover of AIG; and the failure of Washington
crude oil crossed US$ 145 per barrel. Mutual. As if on cue, the British financial system

MAX INDIA GROUP'S TOTAL
CONSUMER BASE INCREASED
FROM 2.5 MILLION IN 2007-08
TO 3.5 MILLION IN 2008-09
started to kneel over: first HBOS, then Bradford and < India is not essentially decoupled from the global
Bingley, and finally a bailout of RBS. economy. While international trade is still a small
part of its GDP, there is significant coupling in
Soon the world faced a massive meltdown — starting with a terms of investment flows into the country. And
complete freezing of liquidity and soon spreading to the this has certainly been affected. Even today, the
real economy. While the financial system has come back to Government of India has a large role in managing
some sort of normalcy, thanks to global interventions that the domestic economy. The direction and nature of
are estimated to have cost well over US$ 3 trillion, the real this role is becoming critical in this economic
economy continues to limp. As I write this letter to you: environment. For India, one would have to agree
< GDP growth for US in 2009 is estimated at -2.7%, with Amartya Sen, Nobel prize-winning economist,
with unemployment now at 9.5% and rising that the “ invisible hand of the market place has to
be balanced by an emphasis on the visible hand of
< Growth in the Euro Zone is expected to be worse still
good governance.
— estimated at -4.4% for 2009
< Japan is heading for another period of severe de- In such a milieu, is your Company, then, still in a “sweet
growth, with GDP growth for 2009 estimated at -6.1% spot” that I wrote of in the last two annual reports? While
there may be some differences in the extent of growth,
< With an estimated 11% to 12% fall in the real value
I would still argue that Max India is in a good place. Let
of world trade, China's growth is expected to reduce
me explain.
to around 7%
< India's growth is down from the 9% plus range of the For the most part, Max India is in the business of life.
last three years to 6.7% in 2008-09, with the chances Protecting Life through its life insurance subsidiary Max
of it being the same in 2009-10 New York Life, a joint venture between Max India and

DURING 2008-09, WE LAID
CONSIDERABLE EMPHASIS ON
FURTHER ENHANCING THE
GOVERNANCE SYSTEMS OF
MAX INDIA AND OUR GROUP
COMPANIES TO HELP BUILD
A TRANSPARENT, TRUSTED
COMPANY
New York Life, a Fortune 100 company. Caring for Life base increased from 2.5 million in 2007-08 to 3.5
through its healthcare company, Max Healthcare, a million in 2008-09. Your Company, therefore, remains
subsidiary of your Company. Enhancing Life through its well positioned even in these difficult times.
health insurance company, Max Bupa Health Insurance,
During 2008-09, we also laid considerable emphasis on
to be developed as a joint venture between Max India
further enhancing the governance systems of Max India
and Bupa Finance Plc., UK which is set to launch soon.
and our group companies to help build a transparent,
And, Improving Life through its clinical research
trusted Company. Several renowned personalities with
business Max Neeman, also a fully owned subsidiary of
specific domain expertise that fit the Companies' profile
Max India.
were inducted as Directors on the Boards of our different
One thing becomes clear if you look at all the economic group companies.
data pouring out from different parts of the world. It is
this: despite the severe downturn in growth across all Mr. Anuroop (Tony) Singh was appointed as Vice
countries, very few have seen any long term Chairman (Non- Executive) of Max India Limited. Earlier,
deterioration in spends that have to deal with the he has held leadership positions at Max New York Life
business of life. To be sure, life insurance has found it (MNYL), ANZ Grindlays Bank, Bank of America and
difficult to sustain the high growth rates of the past. American Express. Noted economist, Dr. Omkar Goswami,
But even here, things are not as dismal as they are in the was appointed as an Independent Director on the Board
financial sector in general or in manufacturing and of Max New York Life. Max Healthcare appointed Dr. Ajit
exports. And as far as healthcare goes, it remains one of Singh as an Independent Director on its Board. He has a
the very few beacons of light in a pall of gloom. In fact, rich 20 years of experience at Siemens in various roles,
in 2008-09, Max India as a group crossed the US$1 most recently as the CEO of the Image & Knowledge
billion mark in terms of revenues and its total consumer Management Business Group of Siemens Healthcare.

Additionally, Ms. Marielle Theron was
appointed as Non- Executive Director at
Max New York Life. She previously headed
Business Development & Strategy, Asia, for
Swiss Re Life & Health, a large global re-
insurer. Mr. Tony Coleman, from Sydney,
Australia, was appointed as Business Advisor
to the Group and a permanent invitee to the
Max India Board. He is currently Chairman of
Enterprise & Financial Risk Committee of the
International Actuarial Association.
Let me now highlight the performance of

each of Max India's businesses. The details
are to be found in our comprehensive
chapter titled Management Discussion and
Analysis.
MAX NEW YORK LIFE (MNYL)

THE MARKET SHARE OF MNYL AMONGST In a difficult year, when most of the
PRIVATE SECTOR INSURANCE COMPANIES competitors in private sector life insurance
were forced to de-grow, your Company
INCREASED BY 100 BASIS POINTS TO 6%
continued increasing its business.
< Number of policies sold since inception

crossed 36 lakh, with sum assured of
around Rs. 94,000 crore
< Policies sold increased by 38% to 12.1
lakh in 2008-09 – crossing the 10 lakh
policies a year mark for the first time
since inception

Embeddded Value (Life Insurance)
1,316 2007-08
THE EMBEDDED VALUE OF THE LIFE

2,284 2008-09
INSURANCE BUSINESS INCREASED
BY 74% TO RS. 2,284 CRORE IN
(Rs. crore)
2008-09. EMBEDDED VALUE IS THE
PRESENT VALUE OF THE FUTURE
EARNINGS OF THE COMPANY AND IS
A UNIVERSALLY USED METHOD OF
MEASURING VALUE CREATION OF A
LIFE INSURANCE COMPANY
< Gross premium increased by 42% to Rs. 3,857 crore 2008-09, MNYL significantly expanded the distribution
< First year premium (individual plus group) grew by reach by opening 279 agency offices, 95 offices for
15% to Rs. 1,843 crore. Individual adjusted first year Emerging Markets and 10 Direct Sales offices. In addition,
premium (adjusted for single premium at 10%) MNYL tied up with Indian Oil Corporation and opened 124
increased by 22% from Rs. 1,308 crore in 2007-08 to sales offices at its Kisan Sewa Kendras in Punjab, Haryana
Rs. 1,595 crore in 2008-09 and Uttar Pradesh, total network of offices reached to 705
< Renewal premium income grew by 80% to Rs. 2,014 as on March 31, 2009. The number of agent advisors
crore in 2008-09 crossed 84,600, up by 129% over last year. MNYL
significantly grew the partnership distribution channel by
< Assets Under Management grew by 50% to Rs. 5,561
setting up ten new relationships — two with corporate
crore in 2008-09
agents and eight with brokers — ten new bancassurance
With this growth, the market share of MNYL amongst relationships with urban and rural cooperative banks.
private sector insurance companies increased by 100
It entered the rural markets of Maharashtra and Gujarat
basis points to 6% in 2008-09. And, the Embedded Value
by opening 62 offices; and tied up with a multi-state
of the life insurance business increased by 74% to
scheduled co-operative bank and four district central
Rs. 2,284 crore in 2008-09. Embedded Value is the
cooperative banks to increase its potential reach to 38
present value of the future earnings of the Company and
lakh customers through over 550 bank branches. During
is a universally used method of measuring value creation
the year, it also launched Max Vijay — a product designed
of a life insurance company.
to meet the insurance needs of the rural and semi-urban
The growth shows up in many different ways. During markets.

MAX HEALTHCARE TURNED CASH POSITIVE DURING THE YEAR. IT IS PLANNING TO
INCREASE ITS CAPACITY TO AROUND 1,800 BEDS BY 2011. NEW HOSPITALS ON THE
ANVIL IN THE NATIONAL CAPITAL REGION INCLUDE SAKET, EAST DELHI, NORTH WEST
DELHI, GREATER NOIDA AND IN DEHRADUN, MOHALI AND BHATINDA IN NORTH INDIA
In addition, MNYL launched its new brand positioning outperform benchmarks during 2008-09. In the
with the tagline 'Karo Zyaada Ka Iraada'. Those of you sphere of investment management, Outlook Money
who watched the IPL Twenty-20 matches in South Africa ranked MNYL as the top performer in three of its ULIP
as well as the T-20 World Cup in England would have seen funds categories.
the new MYNL advertisements on television.
All of this was due to happy and motivated employees.
Success in a long term business like Life Insurance The Gallup Employee Engagement score ranked MNYL as
depends on how well a company deploys the the best employer in the financial services sector in India
policy-holders' funds. In this, MNYL continued to and in the top 25 percentile globally.

MAX HEALTHCARE (MHC) Commitment to high class healthcare service has paid
off in terms of profitability as well.
Today, Max Healthcare has six super-speciality and
multi-speciality hospitals and two speciality medical < Revenue from all hospitals in our network grew by
centres located in the National Capital Region (NCR). nearly 13% to Rs. 423 crore in 2008-09 from
It is in the process of expanding and upgrading its Rs. 372 crore in 2007-08
existing facilities as well as extending its footprint to
< EBITDA for 2008-09 at Rs. 29 crore, grew 46%
other cities in North India. Given its commitment to
year-on-year. The EBITDA Margin improved to 7%
the highest standards of medical and service
in 2008-09 from 5% in 2007-08
excellence, patient care, scientific knowledge,
research and medical education, Max Healthcare has < Business turned cash positive during the year
emerged as one of the country's leading healthcare Max Devki Devi Heart and Vascular Institute combines
service providers. cutting-edge technology with internationally
Consider some of the facts: acclaimed professional expertise to deliver a range of
advanced cardiac care services. This covers all areas of
< The network of Max Healthcare hospitals non-invasive and interventional cardiology,
performed over 450 open heart surgeries, 2,000 cardio-thoracic care and includes consultations and
angioplasties and 4,130 angiographies. In diagnostics, testing, surgeries and post-surgical care.
addition, there were over 2,150 ortho-surgeries, Max Super Speciality Hospital provides tertiary care
870 neuro-surgeries and 15,390 other surgeries facilities with Centres of Excellence in orthopaedics,
and procedures. neurosciences, paediatrics, obstetrics and
gynaecology, aesthetic and reconstructive surgery,
< The average number of operational beds increased
internal medicine, joint replacement and other
from 662 in 2007-08 to 712 in 2008-09. The
support services.
average occupancy rate was 65% and average
length of stay maintained at 3.3 days Max Healthcare is planning to increase its capacity to
< Number of patient episodes increased by almost around 1,800 beds by 2011. It plans to not only expand
19% to over 1.9 million in 2008-09. In the last further in the NCR region but also widen its operations
quarter of 2008-09, Max Healthcare averaged to other parts of India. The 100 bed Max Hospital at
around 165,000 patient episodes per month. Dehradun will become operational by first quarter of

2011. Max Healthcare has also been allotted land by consistently deliver high quality and best-in-class
Government of Punjab under a public-private partnership customer experience. It has already put in place its CEO
arrangement to set up 200 bed super-specialty hospitals and the Top Management team with domain expertise
at Bhatinda and Mohali. and global exposure.
I would urge you to read the details on Max Healthcare in MAX NEEMAN
the chapter on Management Discussion and Analysis.
Max India's clinical research business via its subsidiary
MAX BUPA Max Neeman Medical International Limited, provides a
broad range of clinical research services to global
In July 2008, your Company and the Bupa Group, a pharmaceutical, device and biotechnology companies,
leading UK based international health and care company, and also collaborates with other contract research
formed a new partnership to enter the health insurance organisations in various fields.
market in India. The joint venture, Max Bupa Health
Insurance Company Limited, will offer a suite of products Although at an early stage of development, Max Neeman
to both consumers and business customers. The initial has enrolled over 5,800 patient subjects across 200 sites
share capital of the JV will be Rs. 100 crore, where Max since its inception. In 2008-09, it enrolled more than 2,100
India will have a 74% stake while Bupa Group proposes to subjects. It has been steadily increasing its client base,
hold the remaining stake. As in everything else that your which is now up to 48. In 2008-09 alone, Max Neeman
Company does, Max Bupa is committed to become the successfully provided services to 21 clients for 55 new
most admired health insurance company in India that will clinical research studies. Patients, too, are comfortable with
MAX BUPA IS COMMITTED TO

BECOME THE MOST ADMIRED
HEALTH INSURANCE COMPANY IN
INDIA THAT WILL CONSISTENTLY
DELIVER HIGH QUALITY AND BEST-
IN-CLASS CUSTOMER EXPERIENCE.
IT HAS ALREADY PUT IN PLACE ITS
TOP MANAGEMENT TEAM

the company, whose patient retention rate — a critical < In 2008-09, Max Speciality Products' net revenue
business driver in clinical trials — is 98% against an industry increased by 21% to Rs. 370 crore, sales volume grew
average of 65% to 70%. Max Neeman caters to several by 19% y-o-y.
prestigious customers that include large pharmaceutical < EBITDA was Rs. 51 crore with the operating margin
companies such as Merck, GlaxoSmithKline, Bristol Myers (EBITDA to net sales) at 14%.
Squibb, Sanofi-Aventis, Johnson & Johnson, Novartis,
< Revenues from BOPP, the major business segment,
Pfizer, AstraZeneca and Wyeth.
increased by 24% to Rs. 362 crore in 2008-09. EBITDA
in the BOPP business increased by 13% to
MAX SPECIALITY PRODUCTS (MSP)
Rs. 51 crore. PBT in the BOPP business grew by 21% to
In addition to the business of life, your Company — Rs. 25 crore
through Max Speciality Products — manufactures niche
and high barrier BOPP films, thermal lamination films and Max Speciality Products is in the process of expanding its
leather finishing foils. MSP leverages its strengths in production capacity of BOPP films. Its capacity is slated
product technology and a keen knowledge of markets and to increase by 69% to 49,000 TPA by end of the next
customer needs to produce and sell high value added financial year.
products for the top end of the market.
MAX SPECIALITY PRODUCTS IS

SLATED TO INCREASE ITS
CAPACITY BY 69% TO 49,000
TPA BY END OF THE NEXT
FINANCIAL YEAR

MAX INDIA FOUNDATION HAS
TOUCHED AROUND 27,000
LIVES ACROSS 100 LOCATIONS
THROUGH 2,300 VOLUNTEERS
AND 90 NGO PARTNERS
MAX INDIA FOUNDATION (MIF) I believe that we will return to a higher growth path. Not
the 9% that we saw earlier, but in the region of 7% in
Business is not only about growth and increasing profits.
2009-10, if not a bit higher. Max India and its various
Long term sustainability requires a commitment to being
enterprises are well geared to take full advantage of this
good corporate citizens. For your Company, corporate
growth. I am therefore confident that your Company will
social responsibility (CSR) is a way of life. The Max India
do significantly better in 2009-10 and deliver superior
Foundation is the CSR arm of Max India group. It
value.
spearheads the CSR initiatives of the various group
companies and partners with several reputable NGOs Let me thank all the Board Members, Management, all the
such as CanSupport, SOS Children's Village, Manav Seva employees of Max India group companies for the support
Sannidhi and Chinmaya Mission. Max New York Life, Max and for their unwavering commitment to service quality
Healthcare and Max Speciality Products are actively and delivery. With their dedication and your consistent
involved in various CSR activities under its aegis. Max support, we will together conquer many a peak in the
India Foundation has touched around 27,000 lives across years to come.
100 locations through 2,300 volunteers and 90 NGO
partners. You can read more about our CSR interventions My special thanks to our partners New York Life and Bupa
in the chapter on Management Discussion and Analysis. for their continuing faith and support.
India has weathered the growth downturn better than all With my best wishes,
developed and most Emerging Market economies. Thanks
to the stimulus given in the first budget of the Analjit Singh
new government under Prime Minister Manmohan Singh, Chairman

BOARD OF DIRECTORS
MAX INDIA LIMITED MAX NEW YORK LIFE INSURANCE

Mr. Analjit Singh - Chairman & COMPANY LIMITED
Managing Director Mr. Analjit Singh – Chairman
Mr. Anuroop (Tony) Singh - Vice Chairman Mr. Anuroop (Tony) Singh - Vice Chairman
Mr. Aman Mehta - Non-executive Director Mr. Rajesh Sud - Chief Executive Officer
Mr. Ashwani Windlass - Non-executive Director & Managing Director
Mr. Leo Puri - Non-executive Director Mr. Rajit Mehta - Executive Director &
Mr. N.C. Singhal - Non-executive Director Chief Operating Officer
Mr. N. Rangachary - Non-executive Director Mr. John Harrison - Non-executive Director
Mr. Piyush Mankad - Non-executive Director Ms. Marielle Theron - Non-executive Director
Mr. Rajesh Khanna - Non-executive Director Dr. Omkar Goswami - Non-executive Director
Mr. S.K. Bijlani - Non-executive Director Mr. Rajesh Khanna - Non-executive Director
Dr. S.S. Baijal - Non-executive Director Mr. Richard Mucci - Non-executive Director
MAX HEALTHCARE INSTITUTE LIMITED MAX BUPA HEALTH INSURANCE

Mr. Analjit Singh – Chairman COMPANY LIMITED
Mr. Anuroop (Tony) Singh - Vice Chairman Mr. Analjit Singh - Chairman
Dr. Pervez Ahmed - Managing Director Mr. Anthony Frank Cabrelli*- Non-executive Director
Dr. Ajit Singh - Non-executive Director Mr. Anuroop (Tony) Singh - Non-executive Director
Mr. K.K. Mathur - Non-executive Director Mr. Dean Allan Holden* - Non-executive Director
Mr. Leo Puri - Non-executive Director Mr. Leo Puri - Non-executive Director
Mr. Rajesh Khanna - Non-executive Director Mr. William Stephen Ward* - Non-executive Director
Dr. R.P. Soonawala - Non-executive Director *Bupa nominees to be formally inducted

MANAGEMENT DISCUSSION
& ANALYSIS
MAX INDIA REMAINS COMMITTED

TO ITS VISION TO BE ONE OF
INDIA'S MOST ADMIRED
COMPANIES THAT IS
RECOGNISED FOR ITS SERVICE
EXCELLENCE
INTRODUCTION < Protecting Life through its life insurance subsidiary

Max New York Life, a joint venture between Max
Max India Limited ('Max India or 'the Company') is a
India and New York Life International, the global arm
multi-business corporate entity. It is driven by the
of New York Life, a Fortune 100 company
spirit of enterprise with a focus on people and service
oriented businesses. Through its different enterprises < Caring for Life through its healthcare company,
— most of which, focus on bettering and protecting life Max Healthcare Institute Limited, a subsidiary of
— Max India remains committed to its vision to be one Max India Limited
of India's most admired companies that is recognised < Enhancing Life through its health insurance
for service excellence. company, Max Bupa Health Insurance, a joint

venture between Max India and Bupa Finance Plc., UK and developing brand equity based on recognition for
which is set to launch after statutory approvals excellence.
< Improving Life through its clinical research business, In addition to these “life-centred” businesses, Max India
Max Neeman, a fully owned subsidiary of Max India. manufactures speciality products for the packaging
industry through its division - Max Speciality Products.
Each of these different ventures has a well defined
It has a leadership position in India and is poised for
strategy in place. Each operates in markets that have
further growth. Here, too, there is a strong service
significant potential for long term value generation.
excellence orientation that strives on building long
Today, these companies are in the investment and
lasting partnerships with marquee customers.
development phase of their growth cycles. Their business
objectives are centred on developing the base Some of the major developments at Max India and its
infrastructure, building long term customer relationships businesses in 2008-09 are given in Box 1.
BOX1: HIGHLIGHTS OF DEVELOPMENTS IN 2008-09
International Finance Corporation invested Government of Punjab to build hospitals in

Rs. 150 crore in Max India Bathinda and Mohali, with 200 beds each under
< 10,326,311 shares allotted at Rs. 145.26 per share public private partnership by 2011
for 4.4% stake in Max India < Max Healthcare continued implementing its plans
< IFC already holds 3.8% stake in Max Healthcare to add around 1,000 beds by 2011-12
Life Insurance Speciality Products
< Embedded Value as on 31 March 2008-09 was < Initiated plans to add another 20,000 TPA capacity,
Rs. 2,284 crore – growth of 74% over 2007-08 taking total capacity to 49,000 TPA by end of 2010
< Value of new business grew by 17% to Rs. 312 crore Max India resets its Health Insurance JV with Max
in 2008-09 Bupa
Healthcare < Max India proposes to hold 74% stake in Max Bupa
< Max Healthcare was awarded land by the
While driven by the same value systems and underlying entities. In the next sections, we review each of the
mission, each of the businesses have its own independent businesses, which is followed by a financial
operational and market dynamics. In terms of their review of Max India as a consolidated entity.
organisational structure, too, they operate as separate

www.maxnewyorklife.com
MAX NEW YORK LIFE INSURANCE COMPANY LTD.
OVERVIEW
Max India Limited's foray into the insurance sector is relationships with customers. While growth is a
through its subsidiary Max New York Life Insurance prerogative for MNYL, it remains committed to realising
Company Ltd (MNYL). This is a joint venture (JV) with New its vision to be the most admired life insurance
York Life International, the global arm of New York Life, a company in India.
Fortune 100 company.
MNYL offers both individual and group life insurance
Since its incorporation in 2000 and commencement solutions. In 2008-09, it continued to improve the span
of commercial operations in 2001, it has evolved into one and quality of its distribution network across India and
of India's leading private sector insurance companies. develop flexible product and solutions with a goal to
MNYL focuses on a positioning based on the quality create a long term value-based partnership with its
platform. This includes quality of products, quality of customers. The salient features of MYNL's performance in
service, quality of the asset base and quality of 2008-09 are given in Box 2.

BOX 2: MNYL'S PERFORMANCE HIGHLIGHTS, 2008-09
< Number of policies sold since inception crossed 36 < Gross premium increased by 42% to Rs. 3,857 crore
lakh, with sum assured of around Rs. 94,000 crore in 2008-09
< Policies sold increased by 38% to 12.1 lakh in < First year premium (individual + group) grew by
2008-09 – surpassing the 10 lakh policies - a year 15% to Rs. 1,843 crore in 2008-09
mark for the first time since its inception < Renewal premium income grew by 80% to
Rs. 2,014 crore in 2008-09.
THE INDIAN LIFE INSURANCE SECTOR – The 'sub-prime' led global financial crisis followed by the
severe global liquidity crunch in August-November 2008
FACING A SPEED BREAKER NOT A ROADBLOCK
and the sharp fall in GDP growth across the world had its
MNYL's development in 2008-09 in terms of its long term repercussions on the Indian insurance sector as well.
positioning in the Indian life insurance space is better With global financial institutions being forced to
understood by analysing its performance in light of the deleverage and re-capitalise their balance sheets, there
developments in the life insurance sector in India. was massive capital flight from financial markets in
emerging economies like India. Naturally, the Indian
Looking back, there were two major factors that
stock market witnessed a meltdown. This, coupled with
had contributed significantly to the rapid expansion
the general macro-economic uncertainty had an adverse
of the life insurance industry in India during the last
effect on investor sentiments. Indians were much more
seven to eight years. First, with several new players
cautious with their financial planning — resulting in a
entering Life Insurance industry in the private sector,
general trend to postpone financial commitments and
there was a massive expansion in distribution
hold on to cash.
networks that helped penetrate the inherent untapped
demand for insurance products in India. Second, In 2008-09, therefore, faced with a liquidity crunch and a
there was the introduction of Unit Linked Insurance Plans focus on cost management, most insurance companies
or ULIPs. These plans were hybrids of pure insurance re-evaluated their plans of rapidly growing their sales
and savings, providing the policyholders an opportunity networks — especially at the pace seen earlier. As a result,
to participate in market growth. In the milieu of a there was considerable slowdown in the expansion of
buoyant stock market, these schemes provided agency distribution. And, with the stock market crashing,
good returns and gained popularity among investors in returns from equity oriented ULIP funds became relatively
the last few years. unattractive. Consequently, life insurance prospects took

longer to decide on buying ULIPs which further
slowed down life insurance growth.
As a result, after eight years of strong growth since

the opening up of the sector to private participation
in 2000, the life insurance industry in India
witnessed negative growth for the first time in
2008-09. As Chart A shows, the total first year life
insurance premiums (including individual and
group) fell by 6.3% in 2008-09 and the number of
policies remained virtually flat — growing by only
0.1% in 2008-09.
Chart A: Total 1st Yr

Life Insurers (India)
92,989 2007-08
87,108 2008-09
Premium (Rs.crore)
MNYL HAS ALWAYS FOCUSED ON

50,874 2007-08 QUALITY. ON THE DISTRIBUTION SIDE,
50,923 2008-09 WHILE STEADILY GROWING THE
Policies ('000) NETWORK, IT HAS CONTINUOUSLY
EMPHASISED ON THE PRODUCTIVITY OF
Source: Insurance Regulatory and Development Authority of India (IRDA) ITS AGENTS
In this difficult scenario, it is worth noting that

MNYL managed to overcome the market slowdown
and actually recorded a growth of 22% in Individual

adjusted first year premium (FYP). This bears testimony to In some ways, 2008-09 has been a year of correction. The
its strategy of creating a superior positioning in the froth in the system created mainly by the aggressive
Indian life insurance market. penetration of ULIPs has partly cleared out, and the
industry is expected to grow according to its natural long
As stated earlier, MNYL has always focused on quality. On term growth trajectory.
the distribution side, while steadily growing the network,
it has continuously emphasised on the productivity of its Equally, the industry is getting increasingly competitive.
agents. So, while competitors have had to focus on costs Four new players entered the life insurance space during
of distribution and curtail their aggressive growth plans 2008-2009. With their entry, India now has 21 private life
in 2008-09, such considerations were already a part of insurance companies besides the government-owned Life
MNYL's calibrated strategy for penetrating markets. As Insurance Corporation of India. In this market, MNYL
will be discussed in detail in subsequent sections, it remains focused on its efforts to retain and further
continued to effectively execute this strategy in 2008-09. develop its competitive advantage.
Despite significant slowdown in 2008-09, the Indian life MNYL – MAINTAINING INCREASED MARKET
insurance market remains attractive in both the medium
PENETRATION AND GROWTH
and long term. There are several reasons for this.
First year premium (including individual and group
< The middle class in India is continuing to grow and so premium without adjusting for single premium)
are incomes and savings. increased by 15% from Rs. 1,598 crore in 2007-08 to
< The demographic structure is still tilted towards the Rs. 1,843 crore in 2008-09. Individual adjusted first year
younger generation, with the share of 15-30 year olds premium (adjusted for single premium at 10%) increased
in the total population continuing to grow. This by 22% from Rs. 1,308 crore in 2007-08 to Rs. 1,595 crore
generation has greater need to invest in securing in 2008-09. The group business recorded a first year
against life-related risks. premium income of Rs. 31 crore in 2008-09.
< Today, the Life Insurance sector is still just 4% of GDP.

PERFORMANCE ACROSS INDIA
Given the experience of other developed and relatively
matured emerging market countries, there continues to Chart B shows that in 2008-09, the North Zone continued
be large growth potential for insurance in India. to be the largest contributor to adjusted first year premium
of the company with a share of 37%. The West Zone was
< With no formal social security structure in place in
the second largest contributor with 32% share, followed by
India, the need for financial protection through
the South with 20% and the East with 11% share.
insurance products will continue to be even stronger
with increasing need for savings to meet various life < The North Zone: By adding 118 new offices and
stage requirements. 26,576 new agent advisors in 2008-09, MNYL now

knowledgeable people of Gujarat and Maharashtra, it
Chart B: Zone-Wise Performance remains a huge market for any life insurance company
in India. MNYL expanded its distribution in these
East states with a clear focus on developing its hub and
11% spoke model for rural markets. In 2008-09,
West MNYL opened 148 new offices, 62 of which were
32% South in Emerging Markets, and added 22,894 new
20% agent advisors. With this expansion, it now has
29,442 agent advisors in 204 offices in the West Zone.
< The South Zone: MNYL added 82 new offices, taking
the total to 120 at the end of 2008-09. 13,619 agent
North
advisors were inducted to strengthen the existing team,
37%
taking the overall agent advisor strength to 15,095 in
the south zone. MNYL also entered into four new
referral tie-ups with district central cooperative banks
has a team of 32,553 agent advisors in 202 agency for Emerging Markets in Andhra Pradesh.
offices. Within this zone, it strengthened its network < The East Zone: Here, the focus in 2008-2009 was to
with a special focus on developing the Emerging develop the base distribution infrastructure. MNYL
Markets in Haryana by opening 33 new offices. expanded its presence here. By the end of 2008-09, it
< The West Zone: With the affluent and financially had 50 offices and 7,561 agent advisors.
MNYL MANAGED TO OVERCOME

THE MARKET SLOWDOWN AND
ACTUALLY RECORDED A GROWTH
OF 22% IN INDIVIDUAL ADJUSTED
FIRST YEAR PREMIUM (FYP) THIS
BEARS TESTIMONY TO ITS
STRATEGY OF CREATING A
SUPERIOR POSITIONING IN THE
INDIAN LIFE INSURANCE MARKET

CHANNEL-WISE PERFORMANCE
MNYL has always believed that a multi-channel
distribution strategy is the right solution for succeeding
Chart C: Channel-Wise Performance
in a country as vast and diverse as India. Though the
agency channel continues to be the core distribution
Emerging
channel, there are others as well. During 2008-2009,
Markets 5% DST 5%
Agency Distribution contributed 65% to the total sales,
followed at 22% by Partnership Distribution, 3% by
Bancassurance, 5% by DST and 5% by Emerging Markets
Bancassurance
(see Chart C).
3%
MNYL significantly expanded the distribution reach by
Agency
opening 279 agency offices, 95 offices for Emerging
65%
Markets and 10 DST offices in 2008-09. In addition,
Partnership
MNYL tied up with Indian Oil Corporation and opened Distribution
124 sales offices at its Kisan Sewa Kendras in Punjab, 22%
Haryana and Uttar Pradesh, total network of offices
reached 705 as on March 31, 2009. The number of agent
advisors crossed 84,600, up by 129% over last year.
MNYL’S EMERGING MARKETS

DISTRIBUTION CHANNEL ALSO
TIED UP WITH A MULTI-STATE
SCHEDULED CO-OPERATIVE
BANK AND FOUR DISTRICT
CENTRAL COOPERATIVE BANKS.
CONSEQUENTLY, IT CAN NOW
REACH 38 LAKH CUSTOMERS
THROUGH A NETWORK OF MORE
THAN 550 BANK BRANCHES

While agency expansion is important to drive the growth central cooperative banks. Consequently, it can now
momentum by reaching out to a larger section of the reach 38 lakh customers through a network of more than
population, MNYL remains focused on continuously 550 bank branches.
increasing the productivity of its agent advisors. This has
been the case throughout the company's operation, To further penetrate the Emerging Markets, MNYL tied-
except in 2008-09. Due to depressed consumer up with Indian Oil Corporation to distribute its products
sentiment, expansion into less lucrative smaller towns through its Kisan Seva Kendras, and activated 124 such
and a minor shift in product mix towards protection outlets during 2008-09. These outlets are designed to
oriented policies, there was a marginal decline in case service various needs of rural consumers, right from
rate and case size of the agents in 2008-09. However agriculture inputs and mobile telephony to consumer
MNYL agent advisors continued to be most productive in durables and life insurance.
Indian Life Insurance industry.
PRODUCT-WISE PERFORMANCE
Training remains a critical element of MNYL's approach
Subdued consumer sentiments and the Indian stock
to effectively develop its distribution networks. It has 865
market downturn in 2008-09 resulted in a risk aversion
in-house trainers across the country. Apart from
and consequently greater demand for traditional
providing pre/post - license and induction training, the
products. The contribution of ULIPs to new business sales
trainers also help the distribution teams stay abreast with
reduced from 87% in 2007-08 to 75% in 2008-09 for
market developments and new product launches.
MNYL. MNYL, however, continued to focus on a balanced
2008-09 also witnessed a significant growth for MNYL's portfolio of ULIPs and traditional products for protection
Partnership Distribution channel. It established ten new and long term wealth creation.
relationships — two of which were with corporate agents
The new products that had been launched in 2007-08
and eight with brokers. In addition, there were tie-ups done
started generating results in 2008-09. In fact, these
with nine banks as referral partners. MNYL also entered into
products — such as Life Maker Premium, Life Invest,
an agreement with Barclays Investments and Loans India
Smart Steps and LifeLine series of health insurance
Ltd. as a corporate agent providing it access to a network of
products — were the major growth drivers for MNYL and
around 1,200 branches. The DST channel was also
contributed 37% of the annualised first year premium
strengthened by opening 10 new branches.
(AFYP) in 2008-2009.
MNYL registered a strong growth in its distribution reach
for Emerging Markets. For the first time, it entered the < Life Maker Premium, the savings cum insurance ULIP
rural markets of Maharashtra and Gujarat by opening plan, became the most popular product in the
31 offices respectively in the two states. The Emerging company's portfolio.
Markets distribution channel also tied up with a multi- < Smart Steps, the unit linked child plan, became one of
state scheduled co-operative bank and four district the leading products in MNYL portfolio in the first

THE NEW PRODUCTS THAT HAD

BEEN LAUNCHED IN 2007-08
STARTED GENERATING
RESULTS IN 2008-09. IN FACT,
THESE PRODUCTS SUCH AS LIFE
MAKER PREMIUM, LIFE INVEST,
SMART STEPS AND LIFELINE
SERIES OF HEALTH INSURANCE
PRODUCTS WERE THE MAJOR
GROWTH DRIVERS FOR MNYL
year of its launch. This is in line with conclusions from at protection and long-term wealth creation.
consumer research that indicated that around 85% of
the households in India who have children in the age < Smart Assure is a regular contribution-based ULIP. It
group 0-12 years rate children's education as one of has innovative features like dynamic fund allocation
the primary needs for savings. that adopts a life-stage based asset allocation
strategy with an in-built mechanism to beat inflation
< The LifeLine series of health insurance products also
through premium and coverage indexation. Another
received good response from the market with sales of
innovation is the dynamic opportunities fund that
almost 1,08,119 policies in 2008-09.
rebalances assets depending on market conditions,
< Retirement planning is also gaining momentum in helping stabilise and maximise return on investments
India. MNYL's product, Smart Invest, the unit linked for customers. The product has been well accepted by
retirement plan, received an encouraging response the market.
from the market.
< Unit Builder was launched for partnership
During 2008-09, MNYL launched two new products — distribution channel as a strategy to introduce more
Smart Assure and Unit Builder, both ULIP products aimed customised channel specific product solutions. It is a

regular premium unit linked product for the mid- as the number of languages used in which customers can
market segment — a customer segment where interact. After careful analysis of the customer base, the
partnership distribution has strong reach. IVR service has been launched in 10 selected languages.
The IVR is available round the clock and is supplemented
To cater to changing customer preferences and risk
by customer service executives who are available from
perceptions, MNYL is in the process of enhancing its
7.30 am to 11 pm.
product portfolio by introducing debt-based funds with
assured minimum return along with unit linked solutions MNYL has also enhanced its customer offerings by
and family floater health insurance. It will also launch an enhancing convenience and options for payments. Today,
innovative new platform, which will have assured apart from the regular option of paying by cheque or cash
minimum accumulation benefit along with the at the company's offices, policyholders have the
transparency and flexibility of a unit linked solution. convenience of paying through the internet or through
texting using mobile phones or through bank ATMs and
MNYL – FOCUSING ON CUSTOMERS multiple other means. To inform the policyholders about
these payment options, MNYL ran multiple
It is the strength of the long term relationships that MNYL
communication campaigns throughout 2008-09.
builds with its customers that has helped sustain growth
especially in times of a market slowdown like 2008-09. On the operations front, MNYL launched I-Care, which
There are four broad areas of MNYL's focus on customers. provides single-window view of the customer's details
These are: even at its branch offices. With this facility, customer
service executives can immediately resolve queries at the
< Customer relationship management
point of customer contact without having to refer them
< Brand positioning and development to the centralised customer service centre. To create one
< Special product customisation view of the customer and to manage and track all
< Asset management customer touch points, a state-of-the-art Customer
Service Management System was launched. This system
CUSTOMER RELATIONSHIP MANAGEMENT is now available at more than 320 offices across India and
to the entire customer service team at the main office.
In 2008-09, MNYL emphasised the use of technology to
improve customer relationship and service. It launched an A customer portal was also launched in 2008-09. This
Interactive Voice Recording (IVR), which is most provides policyholders with an option for managing their
comprehensive both in terms of services covered as well relationships online. The website provides online access

for service transactions, information on premium with the belief that brand building is not done through
receipts, payments and the NAV status of ULIPs. marketing communication alone, but also by reinforcing
its image and values at every customer touch point.
MNYL focuses on integrating feedback from all key
stakeholders to optimise its value proposition through It is important to periodically develop and refresh the
continuous improvements in processes and practices. brand image while maintaining the core brand value and
Emphasis is laid on utilising effective listening posts and ethos. In line with this belief, MNYL launched its new
customer surveys and operations are regularly upgraded brand positioning with the new tagline 'Karo Zyaada Ka
based on these inputs. Iraada' to provide a more dynamic and youthful image to
the brand. This positioning is in tune with an ambitious
Given the challenges facing MNYL in terms of managing and assertive India that is ready to compete for more,
scale effectively and handling channel and geographical demand more, dream more and live more to create a
diversity in the most optimum manner, it has started a better today and brighter tomorrow.
strategic multi-functional project aimed at developing
superior customer experiences. The benefits of this During 2008-09, MNYL was engaged in several
initiative should be seen in the next financial year. innovative and pioneering marketing initiatives. It was
the exclusive associate sponsor of the Indian Premier
BRAND POSITIONING AND DEVELOPMENT League (IPL) 2008, the inaugural edition of India's
In a highly competitive business like life insurance in professional cricket league. It also tied up with the Indian
India, it is important to build long lasting relationships Railways for advertising on three Rajdhani Express trains,
through a brand that the target audience spontaneously which provided a unique moving outdoor advertising
relates to. MNYL has always concentrated on this front opportunity by covering the train with MNYL's messages.
MNYL LAUNCHED ITS NEW BRAND

POSITIONING WITH THE NEW
TAGLINE 'KARO ZYAADA KA
IRAADA' TO PROVIDE A MORE
DYNAMIC AND YOUTHFUL IMAGE
TO THE BRAND RESULTING IN
BRAND AWARENESS GROWING
TO 74%

MNYL also launched five new advertising campaigns
during 2008-09. Three of these got a place in the top 10
advertisements of the year lists by NDTV Profit, Mint and
Synovate. The website of Max New York Life was rated
No. 1 in design and No. 2 in usability by Juxt Consult, an
Indian online research company. It received high share of
voice in print and television editorial space.
All these marketing efforts resulted in brand awareness

scores going up from 63% in 2007-08 to 74% in 2008-09
as per AC Nielsen brand track.
MNYL was declared a “Superbrand” by Superbrands India,

an independent brand authority, formed with the
objective of identifying and paying tribute to exceptional
brands.
SPECIAL PRODUCT CUSTOMISATION: MAX VIJAY

India is a vast country with heterogeneous markets.
Therefore, for specific markets one needs to create
specifically designed products and distribution systems.
MNYL believes there is considerable scope of penetrating
rural and semi-urban markets. Thus, in 2008-09, it MNYL BELIEVES THERE IS CONSIDERABLE
launched Max Vijay — an initiative designed specifically
SCOPE OF PENETRATING RURAL AND
to match the lifestyle, income patterns and needs of this
segment. SEMI-URBAN MARKETS. THUS, IN 2008-
09, IT LAUNCHED MAX VIJAY — AN
Max Vijay has the potential to change the way insurance
is procured, sold and serviced in the country. The product
INITIATIVE DESIGNED SPECIFICALLY TO
not only fulfils the customers' primary need of financial MATCH THE LIFESTYLE, INCOME
protection, but also facilitates long-term savings. PATTERNS AND NEEDS OF THIS SEGMENT
Specifically, its design helps to meet the unique
challenges of unpredictability in life and income flow of
the underserved segments of the Indian population. To
reach out to remotely located customers, MNYL has
placed 'Max Vijay' on a customised technology driven
distribution and service model.

INVESTMENT MANAGEMENT to 60% in equity) categories. This reflects the investment

MNYL continued to consistently outperform the management capabilities of the company to act in rapidly
benchmarks during 2008-09. This was recognised by the changing market conditions and maximise returns to the
business publication 'Outlook Money', which ranked policyholders over a long term. Table 1 compared the
MNYL as the top performer in the Slow (up to 20% in performance of various MNYL products since inception as
equity), Medium (up to 40% in equity) and Quick fund (up compared to a benchmark.
Table 1: Performance of MNYL ULIPs

Since inception
Fund Name Fund Performance Benchmark Performance Funds vs Benchmark Return
Secure 7.33% 6.63% 0.70%
Conservative 9.13% 7.14% 1.99%
Balanced 11.44% 8.38% 3.06%
Growth 15.80% 10.47% 5.33%
Growth Super -8.78% -17.49% 8.71%
Total Portfolio 10.30% 4.60% 5.70%
MNYL – FOCUSING ON ITS PEOPLE continues to focus on its 'Employee Value Proposition'
which promotes a work culture where employees see
MNYL is a diverse organisation bound together by a
value in their engagement with the organisation — enjoy
common thread of values. This value system is based
their work, deliver results, develop great relationships
around 6 cornerstones - caring, honesty, excellence,
with supervisors and colleagues, get fairly rewarded for
knowledge, integrity and teamwork. It is an open, honest their efforts and feel respected.
and ethical organisation that puts emphasis on
connecting with its employees, agent advisors and This is reflected in the Gallup Employee Engagement
customers through all touch points and continuously scores, where MNYL is the best in the financial services
communicating the strength of the organisation and its sector in India and in the top 25 percentile globally in the
continued growth plans. Gallup universe. It has also won various other awards
such as the BT Mercer award, which ranked it No.7 in the
MNYL is a people centric company. Over the years, it has “Best Companies to Work For”, and the Gallup Great Work
created a team of capable and engaged employees. MNYL Place Award 2009.

OVER THE YEARS, MNYL HAS CREATED A TEAM OF CAPABLE AND ENGAGED EMPLOYEES.
MNYL RANKED BEST IN THE FINANCIAL SERVICES SECTOR IN INDIA AND IN THE TOP 25
PERCENTILE GLOBALLY IN THE GALLUP UNIVERSE. IT CONTINUES TO FOCUS ON ITS
‘EMPLOYEE VALUE PROPOSITION’ WHICH PROMOTES A WORK CULTURE WHERE
EMPLOYEES SEE VALUE IN THEIR ENGAGEMENT WITH THE ORGANIZATION
During 2008-09, over 10,000 people were recruited Business Excellence journey — the only life insurance
taking the current employee base to 15,402. company to do so. To institutionalise process excellence,
more than 300 business processes were mapped and
MNYL – FOCUSING ON QUALITY AND measured across MNYL to promote process orientation
and data based decision making across the organisation.
BUSINESS EXCELLENCE
Findings from these will be converted into actionable
During 2008-09, MNYL initiated the CII-Exim Bank goals to further enhance the quality platform.

DURING 2008-09, MNYL

INITIATED THE CII-EXIM BANK
BUSINESS EXCELLENCE
JOURNEY — THE ONLY LIFE
INSURANCE COMPANY TO
DO SO
The company also initiated more than 100 Six Sigma operating systems, internal policies, and regulatory
Programs, which enabled it to leverage cutting edge requirements are continuously monitored to maintain
quality tools and techniques to enhance both adequacy and effectiveness.
effectiveness and efficiency of its key processes.
The ERM framework is being further strengthened to
RISKS, CONCERNS AND INTERNAL CONTROL provide sharper focus on key business risks,
SYSTEMS encompassing the internal and external landscape.
MNYL's Internal Audit and risk management function MNYL remains strongly committed towards ensuring an
follows the COSO framework and conducts periodic risk- effective internal control environment. It continuously
based reviews. The internal control environment across strives to provide assurance on the efficiency and efficacy
the various functions and the status of compliance with of internal controls and security of company assets.

www.maxhealthcare.in
MAX HEALTHCARE INSTITUTE LTD.
OVERVIEW
Through its subsidiary Max Healthcare Institute Limited of its existing facilities and also extending its footprint to
(MHC), Max India Limited provides comprehensive other cities in North India.
international-class healthcare services in India.
As a business, MHC is progressing as per plan.
With six super-speciality and multi-speciality hospitals Shareholders may recall that in 2007-08. MHC generated
and two speciality medical centres located in the operating profits (positive EBIDTA) for the first time in its
National Capital Region (NCR) and commitment to the history. This trend continued in 2008-09 and MHC in its
highest standards of medical and service excellence, network of hospitals turned Cash positive. MHC financial
patient care, scientific knowledge, research and medical highlights are given in Box 3.
education, MHC has emerged as one of the country's
leading top-of-the-line healthcare service providers. It is Some mistakenly believe that there is a dichotomy
in the process of expanding and further upgrading some between profits and social goals in the field of healthcare.

BOX 3: FINANCIAL HIGHLIGHTS – MHC (2008-09)
< Revenue from all hospitals in our network grew by year-on-year. The EBITDA Margin improved to 7%
nearly 13% to Rs. 423 crore in 2008-09 from in 2008-09 from 5% in 2007-08
Rs. 372 crore in 2007-08 < Business turned cash positive during the year
< EBITDA for 2008-09 at Rs. 29 crore, grew 46%
This is not true. Sustainable profits occur only when perspective, in MHC they will have a reliable institution,
patient needs are met — when more and more patients which they can rely on whenever there is a need for any
come to healthcare facilities driven by the reputation for service related to healthcare.
quality and affordability, and when these patients leave
satisfied by their treatment and after care. Satisfied THE MACRO ENVIRONMENT
patients are any healthcare entity's best referrals. And
The basic social and demographic characteristics in India
satisfied patients require commitment to medical quality
continue to drive demand for healthcare services in India.
and care. So, it is only when the social goal is served —
The primary drivers are:
providing people with high quality yet affordable
healthcare — can profits flow in. For Max Healthcare, the < Growing elderly population
two objectives are well aligned and accountability is
< Rise in income levels leading to greater ability to
ensured. There is a large segment of the Indian population
afford better healthcare services
that is looking towards institutions that can regularly
cater to their healthcare needs with the best of services at < Rise in incidence of lifestyle related health problems
prices that are affordable to the people. MHC is focused < Greater access to medical insurance.
on establishing itself as a 'one of its kind' healthcare
service provider — a trend setter that epitomises the The macro opportunity for healthcare in India is large.
highest standards of healthcare services in the country. On any of the key metrics, be it number of hospital beds
(India has 1 for every 1,500 people as against the World
It is this commitment to 'Excellence in Patient Care' that Health Organisation's requirement of 1 for every 300),
is at the core of a mutual relationship of trust between number of doctors or potential size of the industry- the
MHC and its patient base. From MHC's perspective, its opportunity is promising.
business growth will depend on the sustainability of long
term relations that can be developed with patients. These Given these trends, the healthcare industry in India is
relations also help create reputational value for further expected to reach over US$75 billion by 2012 and
growth of the patient base. From the patients' US$150 billion by 2017 (Technopak Advisors Report,

India Healthcare Trends 2008). Given that much of the
services are necessities, this sector will remain more or BOX 4: OPERATIONAL HIGHLIGHTS, MHC IN
less insulated from external economic developments, as 2008-09
was evident in 2008-09. < The network of hospitals performed over 450 open
heart surgeries, 2,000 angioplasties and 4,130
However, there were hurdles in making new investments.
angiographies. In addition, MHC performed over
Especially, with a virtual freeze on access to capital,
2,150 ortho-surgeries, 870 neuro-surgeries and
funding new facilities was difficult. In fact, the economic
15,390 other surgeries and procedures
slump in 2008-09 had offered opportunities for
healthcare services players to focus on developing < The average number of operational beds at
facilities at relatively lower costs. But, not many players MHC increased from 662 in 2007-08 to 712 in
could take this opportunity. MHC, on the other hand, 2008-09. Average occupancy rate at MHC hospitals
continued to implement its investments plans in existing was 65% and average length of stay maintained at
and new facilities. 3.3 days
< Number of patient episodes (measured by number of
As a result, while investments were on, the focus in this
invoices issued to patients during any period)
segment has been on developing operational efficiencies,
increased from 1.6 million in 2007-08 to over 1.9
make ventures more profitable and to stress on providing
million in 2008-09. In the last quarter of 2008-09,
better customer experience to grow the patient base.
MHC averaged around 165,000 patient episodes per
month
MHC OPERATIONS - FOCUS ON QUALITY AND
FACILITIES MHC has stressed on retaining and growing patient
The highlights of MHC's operations are given in Box 4. traffic by providing a comprehensive and seamless 'start
MHC IS COMMITTED TO THE HIGHEST

STANDARDS OF MEDICAL AND
SERVICE EXCELLENCE, PATIENT CARE,
SCIENTIFIC KNOWLEDGE, RESEARCH
AND MEDICAL EDUCATION

MHC HAS EMERGED AS ONE OF

THE COUNTRY’S LEADING TOP-
OF-THE-LINE HEALTHCARE
SERVICE PROVIDER. MHC IS IN
THE PROCESS OF EXPANDING ITS
CAPACITY TO AROUND 1,800
BEDS BY 2011
to finish healthcare services that include consultations excellence across different activities. Some of the
and diagnostics, testing, treatment and post-surgical important aspects that are covered include clinical
care. There is considerable emphasis on investing in governance, certifying credentials and clinical privileging
state-of-the-art healthcare infrastructure and of physicians and nurses, use of standardised and
equipment. Some of the cutting edge equipment used at evidenced based protocols, patient and staff safety,
MHC includes BrainSUITE (Asia's first and India's most infection control, audit culture and continuous
advanced neurosurgical operating theatre), Novalis Tx professional development.
with RapidArc technology, LINAC, DSA Lab and 64-Slice
CT Angio. MHC also lays strong emphasis on service quality. This is
maintained through a system that continuously assesses
There are three focus areas of MHC's operations. These operational efficiencies and effectiveness and is oriented
include: towards process based performance. The organisation
has processes laid down to meet customer expectations
< Excellence in patient care as per ISO standards. Various CTQs (Critical to Quality)
< Excellence in training, education and research steps from each process have been identified and these
< Development of world class facilities are regularly monitored.
EXCELLENCE IN PATIENT CARE For quality improvement, MHC has adopted Six Sigma.
The focus is to not only satisfy customer needs completely
At the core of all MHC's operations is the concept of but to also do so in the most cost efficient manner. For
'Patient Centred Care'. This has been executed primarily this purpose, it has adopted DMAIC and Lean
by a rigorous implementation of the 'Medical & Service methodology. A systematic data driven approach is used
Excellence Model'. The model promotes operational to reduce variation in process outcomes, eliminate non

FOR QUALITY IMPROVEMENT,
MHC HAS ADOPTED SIX
SIGMA. THE FOCUS IS TO NOT
ONLY SATISFY CUSTOMER
NEEDS COMPLETELY BUT TO
ALSO DO SO IN THE MOST
COST EFFICIENT MANNER
value-added activities, and to optimise process faster response time for these customer feedbacks.
deliverables.
On the quality front alone, MHC has received several
There is a comprehensive performance measurement certifications and awards. These include:
system for key processes that include medical and
services related activities. The system named 'SPARSH' < The prestigious DL Shah National Award on
has 90 key performance indicators that are tracked 'Economics of Quality' from the Quality Council of
uniformly across all hospitals. These are regularly India, conferred during the National Quality Conclave
reviewed against preset targets to see the performance held in New Delhi in February 2009. MHC is the first
trend and identify opportunities for improvement. Apart organisation in the country from the healthcare
from this, a Medical Quality Dashboard has been sector to receive this award.
introduced to monitor adverse events and clinical < Express Healthcare Excellence Awards – Max
outcomes. Recently, an innovative, first of its kind Healthcare won the Express Healthcare Excellence
“Scorecard” has been developed for key clinical awards for 'Best Managed Healthcare Program' and
departments that tracks business, service and clinical 'Innovative Marketing Practices'
outcomes on an integrated platform.
< ISO: Five of MHC's hospitals and the home office were
MHC continuously generates feedback through a re-certified for ISO 9001, i.e. QMS (Quality
customer satisfaction questionnaire, which is then Management System), and one hospital is certified
analysed for problem areas. The current patient for ISO 14001 i.e. EMS (Environment Management
satisfaction levels with the medical care and service System). Two hospitals are in process of getting IMS
deliverables range above 90%. A new electronic feedback (Integrated Management System) encompassing
system has been introduced with the expectation of QMS+EMS+OHSAS.

< National Accreditation Board for

Hospitals and Health Care
Organisations (NABH): NABH is an
autonomous body established in 2005
under the Quality Council of India for
setting benchmarks in Indian healthcare
industry.
• In 2006-07, the tertiary care
hospitals of Max Healthcare-Max
Devki Devi Heart and Vascular
Institute (MDDHVI) and the Max
Super-Speciality Hospital (MSSH)
became the first two hospitals of
North India to receive the NABH
accreditation.
• National Accreditation Board for
Laboratories (NABL): In 2006-07,
MHC acquired the NABL
accreditation for its laboratory at
MSSH.
• NABH standards for Blood Bank
Accreditation: The Blood Bank in
Saket (Delhi) is among the first few
in the country to receive this
accreditation in February 2009,
which is aimed specifically at
MHC HAS STRESSED ON RETAINING AND
accrediting for excellence and safety
GROWING PATIENT TRAFFIC BY PROVIDING in management of Blood Banks. The
COMPREHENSIVE AND SEAMLESS ‘START Blood Bank at Max Balaji Hospital
TO FINISH’ HEALTHCARE SERVICES THAT PPG has recently undergone a
successful NABH accreditation
INCLUDE CONSULTATIONS AND
assessment and the final
DIAGNOSTICS, TESTING, TREATMENT AND announcement is awaited.
POST-SURGICAL CARE

EXCELLENCE IN TRAINING, EDUCATION AND Support Training, Basic Cardiac Life Support Training,
RESEARCH Pediatric Life Support, First aid and Airway
Management.
MHC has achieved distinction in training, education and
clinical research. < Under an MOU with Hamdard University, New Delhi,
BSc in Emergency Trauma Care and Technology.
On education, Max Healthcare has established several < Residency Exchange Program with Mount Sinai
Post Graduate/Under Graduate education programmes. Medical School, USA
Some of these are:
< Several short courses /Fellowships to expose
< Post Graduate Programs (Diplomate National Board) physicians in periphery to super-speciality areas like
in Cardiology, Cardiac Surgery, Cardiac Anaesthesia, neuroradiology, spine surgery, cardiology,
Interventional Cardiology, Internal Medicine, neonatology and laparoscopic surgery
Radiology and Pathology < Simulation Based Trainings have been introduced this
year
< Post Graduate Diploma in Clinical Cardiology (IGNOU)
< Post Graduate Diploma in Neuro Nursing.
< Fellowship in Emergency Medicine in Collaboration
with George Washington University, USA On training, there were around 100 doctors/paramedics/
< Post Graduate Diploma in Critical Care Medicine nurses undergoing formal education programs in 2008-09.
under aegis of Indian Society of Critical Care On research, Several Clinical Trials are underway. The
Medicine, Fellowship in Critical Care organization has recently established a Stem Cell
< Max Healthcare is an American Heart Association Research Committee, and is exploring this new exciting
(AHA) recognized centre for Advanced Cardiac Life area of research.
MAX HEALTHCARE HAS

ESTABLISHED SEVERAL POST
GRADUATE/UNDER GRADUATE
EDUCATION PROGRAMMES
WITH AROUND 100 DOCTORS/
PARAMEDICS/NURSES UNDERGOING
FORMAL EDUCATION PROGRAMS IN
2008-09

WORLD CLASS FACILITIES technology including BrainSUITETM (Asia's first and

The details of the existing facilities are as follows: India's most advanced neurosurgical operating
theatre), Flat Panel DSA lab. It also has India's first
Max Devki Devi Heart and Vascular Institute DynaCT for treatment of stroke, aneurysm and spine
combines cutting edge technology with internationally — where an interventional neuro-radiologist can see
acclaimed professional expertise to deliver a range of live images of the brain while performing the
advanced cardiac care services. This covers all areas of procedure. BrainSUITETM is the first integrated high
non-invasive and interventional cardiology, cardio- field intra-operative MRI, which neurosurgeons can
thoracic care and include consultations and diagnostics, use to operate upon complicated brain tumours with
testing, surgeries and post - surgical care. utmost precision.
< Max Institute of Paediatrics has a team of highly
Max Super Speciality Hospital provides tertiary care
experienced paediatricians and paediatric super-
facilities with Centres of Excellence in Orthopaedics
specialists. It has fully equipped neo-natal ICUs
and joint replacement, Neurosciences, Paediatrics,
with round-the-clock neonatologists providing
Obstetrics and Gynaecology, Aesthetic and
multi-speciality care to premature babies. Our
Reconstructive surgery, Internal medicine and other
state-of-the-art paediatric ICUs (PICU) can treat
support services. The Centres of Excellence at Max Super
critically ill children suffering from life threatening
Speciality Hospital include:
conditions.
< Max Institute of Orthopaedics and Joint Replacement < Max Institute of Obstetrics and Gynaecology offers
offers comprehensive and latest treatment for joint advanced maternity and reproductive healthcare
replacement using computer navigation and ortho service even to patients in high risk groups. Other
disciplines like sports medicine, management of services range from reproductive care and mother and
arthritis and trauma, ortho-trauma, spinal surgery child healthcare to infertility.
and paediatric orthopaedics < Max Institute of Aesthetic and Reconstructive
< Max Institute of Neurosciences boasts of high-end Surgery is a Centre of Excellence for advanced

microsurgery and craniofacial surgery. It is also a endoscopy suite, sleep lab and five modular operation
pioneer in aesthetic surgery of the face and body. The theatres.
Institute has introduced the latest techniques in < Max Balaji Hospital is a world class tertiary
plastic surgery like vacuum assisted wound healthcare facility. It is equipped with high-end
healing, absorbable facial fracture plating, facial infrastructure, systems and processes. The facility and
assembly, disassembly for brain base tumours, and equipment at present offers medical and surgical
feather lift in aesthetic surgery. It is in the process of services in all major disciplines.
entering into the futuristic domain of stem cell
< Max Hospital, Pitampura provides excellent
research.
healthcare over a range of services. Well-equipped
< Max Institute of Internal Medicine offers core OTs, dialysis services and facilities for advanced
medical services, which include indoor patient care, laparoscopic surgery are some of the services
outdoor patient care and preventive health checks. available.
Max Home Care programme under the aegis of this
< Max Hospital, Noida offers speciality treatment for a
institute extends healthcare services to patients
wide range of ailments including chronic care
beyond the confines of the hospital and enables
programmes in diabetes, asthma, arthritis and
patients and caregivers to maintain continuity of
hypertension.
care.
< Max Institute of Allied Medical Sciences offers < Max Hospital, Gurgaon is a multi-speciality hospital
comprehensive services in medical, surgical and with intensive care services, an endoscopy unit,
minimal access surgery programmes with a state-of- modular OTs and advanced radiology and pathology
the-art surgical ICU, medical ICU, dedicated diagnostics.

MHC is working on increasing its capacity to around engine of economic growth. Opportunities will bring
1,800 beds by 2011.With the first phase of roll-out competition from other Indian and foreign players
already completed, the second phase of expansion is including new entrants in the healthcare sector. MHC
progressing as per plan. During this phase, MHC plans to recognises that high quality standards and strong brand
not only expand further in the NCR region but also widen recall will be the major determinants of competitive
its operations beyond the NCR of Delhi to other parts of advantage in an increasingly competitive market.
India. Some facts about the progress of the entire
expansion are: With MHC almost doubling its bed capacities,
managing the increased scale of operations and
< The new wing of the Max Balaji Hospital with 260 improving utilisation rates will be challenges. The
beds (at Patparganj, across the river Yamuna) is modern healthcare services industry is very capital
expected to start operations by October 2009 intensive and the expansion plans will require significant
< Comprehensive oncology care to start at Saket by capital expenditure. Thus, the growth strategies depend
September 2009. on the ability to fund these expenditures and build,
acquire and manage additional hospitals as well as
< Additional 90 beds at Saket will become operational
expand, improve and augment the existing hospitals.
by April 2010.
< The 100 bed Max Hospital at Dehradun will become Healthcare business is highly dependent on the ability to
operational by first quarter 2011 attract and retain leading doctors and other healthcare
professionals, particularly nurses and paramedics
< MHC has acquired land in north-west Delhi and
professionals. Given MHC's excellent facilities and best-
Greater Noida for setting up 300-bed hospitals
in-class compensation packages, it expects to continue
< MHC has been allotted land by Government of Punjab hiring doctors and nurses according to needs.
under a public-private partnership arrangement to
set up 200 bed super specialty hospitals at Bathinda On balance, MHC is confident of achieving the
and Mohali. expansions on time, meeting its growth targets, offering
greater patient care and facilities, and generating
OUTLOOK, RISKS AND CONCERNS superior shareholder returns in the future. We believe
that Max Healthcare occupies a sweet spot in a rapidly
The healthcare delivery industry is set to become an growing industry.

www.maxbupa.com
MAX BUPA HEALTH INSURANCE COMPANY LTD.
OVERVIEW
Max India Limited and Bupa Finance Plc, a leading UK business strategy and creating the management team.
based international health and care company, formed a
joint venture to enter the health insurance market in MARKETS AND OPPORTUNITIES
India in September 2008.
With a 2% penetration, health insurance usage is low in
The venture called Max Bupa Health Insurance Company India and around 70% of the population uses self-
Limited, will offer a suite of products catering to the health funding for medical treatment. While health insurance is
and wellness needs of its customers subject to regulatory a nascent industry, it has immense growth potential. This
approvals. The initial share capital of the JV will be Rs. 100 has been evident from the recent past, which suggests
crore, where Max proposes to hold a 74% stake while Bupa that the health insurance industry has grown at a CAGR
Finance Plc proposes to hold the remaining stake. During of 36% over the last eight years. The total market size was
2008-09, this business concentrated on developing its estimated at Rs. 6,604 crore in 2008-09.

www.maxbupa.com
WITH A 2% PENETRATION, HEALTH INSURANCE USAGE IS LOW IN INDIA AND

AROUND 70% OF THE POPULATION USES SELF-FUNDING FOR MEDICAL
TREATMENT. WHILE HEALTH INSURANCE IS A NASCENT INDUSTRY, IT HAS IMMENSE
POTENTIAL FOR GROWTH, EVIDENCED BY THE FACT THAT IT HAS GROWN AT A CAGR
OF 36% OVER THE LAST EIGHT YEARS. THUS, MAX BUPA IS COMMITTED TO BECOME
THE MOST ADMIRED HEALTH INSURANCE COMPANY IN INDIA
Today, the category is undifferentiated and India. The strategic focus is on evolving a consumer-centric
commoditised with both the quality and price of products model that delivers a high quality and consistent customer
being fairly low. Max Bupa views the existing low experience. The mission is to help families live healthier and
consumer awareness, experience and lack of product and more successful lives by becoming their healthcare partner
service innovation as potential areas to provide by providing expertise for life.
differentiation and gain market share as a new entrant.
The aim is to drive the above by differentiating on product
In fact, given these market realities, there is tremendous and service delivery, leveraging global expertise in health
opportunity for Max Bupa to help shape the industry in a management solutions that go beyond health funding.
positive way in India. There is need in the market for high
quality health insurance products that can add value to In order to take advantage of the timing of the start up of
the lives of the people insured. The key opportunities lie in Max Bupa and the heritage of the investors, the company
improving product and process transparency, improving is focusing their attention through 2009 on the following
customer service and creating trust. It will also be areas to help achieve the strategy:
important to differentiate on health care support as well < Build better products
as insurance funding.
< Embrace technology
THE STRATEGY < Customer service differentiation
In line with the group's vision, Max Bupa is also committed < Risk management focus
to become the most admired health insurance Company in < Provider - relations management

www.neeman-medical.com
MAX NEEMAN MEDICAL INTERNATIONAL LTD.
OVERVIEW
Extending the scope of operations in the healthcare USA is the global pharmaceuticals hub, its global
related space, Max India Limited entered the business of headquarters is at Cary, North Carolina, USA. With closer
clinical research through its subsidiary Max Neeman proximity to customers, the US operation is mainly
Medical International Limited (MNMI). responsible for business development and marketing
initiatives. The actual clinical research operations are
It is a value adding clinical research organisation (CRO)
based out of India.
that provides a broad range of clinical research services to
global pharmaceutical, device and biotechnology
INDUSTRY STRUCTURE AND DEVELOPMENT
companies. It also collaborates with other CROs in
providing a variety of services. Given the cost-cutting imperatives that large
pharmaceutical companies face, clinical research is an
MNMI operates through a dual-shoring model. As the attractive opportunity. With its talented clinicians,

www.neeman-medical.com
diverse patient pool and lower cost advantage, India is from Rs. 4.1 crore in 2007-08. During 2008-09, site
well poised to take advantage of the outsourcing monitoring grew 88%, and clinical data management by
opportunity arising from the implementation of the 164% — albeit over a low base.
Trade-Related Aspects of Intellectual Property Rights
(TRIPS) accord and World Trade Organization (WTO) OPERATIONS
norms. Estimates suggest that the Indian clinical trials With operations stabilising, MNMI now offers services
industry will reach US$1.3bn by 2012, implying a CAGR of across five segments: (i) Site Management (ii) Site
more than 40% over the next five years. Monitoring (iii) Clinical Data Management (iv) Project
However, newer entrants in this industry may have to go Management and (v) Supply Chain Management of
through longer gestation periods to develop relationships clinical trial material.
with innovators — as was the case with contract
On the clinical research front, where it provides services
manufacturing companies. There continues to be some
in Phases II, III, and IV of clinical trial studies, it now has
hurdles. For example, Phase-I trials of foreign drugs can
access to over 1,000 ICH GCP trained investigators. A
be conducted in India but only as a 'repeat' of an earlier
team of over 120 clinical research coordinators and
Phase-I trial done outside India. Applying for this requires
associates with a pan-India presence across 22 cities
submission to the regulators of the earlier Phase-I data
gives MNMI access to patients and investigator sites for
generated outside India. Although the regulation is in
various therapeutic areas.
place to avoid potential abuse, it takes away a part of the
potential revenues from Indian companies. With a wider portfolio of offerings, MNMI started getting
greater business from several of its established partners
PERFORMANCE HIGHLIGHTS in the US and Europe.
As a business, MNMI is still at a very early stage of
Since the commencement of MNMI's India operations,
development. Revenues increased from Rs. 11.1 crore in
over 5,800 subjects have been enrolled at over 200 sites.
2007-08 to Rs. 15.0 crore during 2008-09, while profits
In 2008-09 alone, MNMI enrolled more than 2,100
grew to Rs 1.2 crore in 2008-09 against a profit of
subjects. An automated workflow process ensures
Rs. 0.7 crore in 2007-08.
efficient and accurate data management. With its
MNMI is increasing its client base. It added five high quality operating standards, MNMI successfully
new clients during 2008-09 taking the total client provided services to 21 clients over 55 new studies
base to 48. during 2008-09.
The site monitoring and clinical data management unit, MNMI's patient retention rate — a critical business driver
which was set up in 2006-07, is starting to bear fruit. In in clinical trials — is 98% against an industry average of
its second full year of operations in 2008-09, revenues 65% to 70%. It caters to several prestigious customers
from the site monitoring unit increased to Rs. 7.7 crore that include large pharmaceutical companies such as

SINCE THE COMMENCEMENT
OF MNMI'S INDIA OPERATIONS,
OVER 5,800 SUBJECTS HAVE
BEEN ENROLLED AT OVER 200
SITES. IN 2008-09 ALONE,
MNMI ENROLLED MORE THAN
2,100 SUBJECTS
Merck, GlaxoSmithKline, Bristol Myers Squibb, Sanofi- expenditures of pharmaceutical and biotech companies.
Aventis, Johnson & Johnson, Novartis, Pfizer, These expenditures vary in any given year. Operating
AstraZeneca and Wyeth as well as other medium size results are also subject to volatility due to external
companies such as Achillion, Globelimmune, AP Pharma, constraints such as the commencement, completion,
ORA, KV Pharmaceuticals and Onconova. cancellation or delay of contracts. Progress of ongoing
projects, cost overruns and competitive industry
Most employees of MNMI have professional degrees in
conditions are also sources of risks. The ability to develop
medicine or pharmacology. All employees have been
and market new services on a timely basis with changes in
trained for a minimum of 50 hours in 2008-09 to improve
the service mix for various clients always remains a
skill sets. High retention rate has been maintained by
challenge. Equally, this provides an opportunity to
providing a harmonious and favourable work
increase client retention with the delivery of superior
environment. The employee count increased from 150 at
service skills and offerings.
the end of 2007-08 to over 200 at the end 2008-09.
In this business, there are potential product and
MNMI follows a robust system of quality control and all
conduct liability risks. There is also competition from
its operational activities are governed by strict adherence
in-house research departments of pharmaceutical
to ICH-GCP guidelines. It is the first CRO in India whose
companies, universities and teaching hospitals, as well
four sites have been audited successfully by USFDA.
as other CROs.
MNMI has been certified for ISO 9001:2000 for site
management, monitoring, and data management. All its Despite these risks, MNMI is confident of future growth.
activities and operations are governed by robust standard It has the requisite skill sets and infrastructure. It is
operating procedures (SOPs). developing deep relationships with many marquee
clients. It has best-in-class processes and controls.
OUTLOOK, RISKS AND CONCERNS Therefore, it expects growing revenues and profits in the
The CRO industry is highly dependent on R&D years ahead.

www.maxspecialityproducts.com
MAX SPECIALITY PRODUCTS LTD.
OVERVIEW
Max Speciality Products (MSP) – a division of Max India and abroad. Its ability to build lasting relationships with
Limited - manufactures niche and high barrier such customers has resulted in sustained growth over the
BOPP films, thermal lamination films and leather last few years. In 2008-09, MSP continued with its
finishing foils. pursuit of quality, making it one of the most recognised
and respected players in the BOPP industry. In the leather
MSP's core strength is its product technology and its finishing foil business, MSP has added capacity, which
ability to produce and sell value added products with will further enhance its product range.
focus on successfully catering to the demands of top end
quality conscious customers. PERFORMANCE HIGHLIGHTS
Today, MSP has a distinguished customer base in India The financial highlights are given in Box 5.

BOX 5: MSP'S FINANCIAL HIGHLIGHTS, 2008-09
< In 2008-09, MSP's net revenue increased by 21% to < Revenues from BOPP, the major business segment,
Rs. 370 crore, sales volume grew by 19% y-o-y. increased by 24% to Rs. 362 crore in 2008-09.
< EBIDTA increased by 4% to Rs. 51 crore in 2008-09. EBIDTA in the BOPP business increased by 13% to
Rs. 51 crore. PBT in the BOPP business increased by
< Operating margin (EBIDTA to net sales) at 14% in
21% to Rs. 25 crore.
2008-09.
INDUSTRY STRUCTURE AND DEVELOPMENT their European, American and Japanese counterparts
because of the low cost base and large growing Indian
The BOPP industry continues to witness a growth of 18%
market. Also the consumption of flexible packaging in
to 20% per annum in India and 7% per annum globally. To
India is relatively low. These factors will enable flexible
take advantage of this growth, the installed capacity of
packaging industry in India to grow at a healthy rate.
BOPP in India increased by 20% in 2008-09. This addition
in capacity got absorbed without any negative impact on
OPERATIONS
Industry. In fact, in 2009-10, one expects this capacity to
go up further. MSP's plant is located at Railmajra, near Chandigarh. It is
accredited with ISO 9001:2008 and ISO14001: 2004 and
India still has a low per capita consumption compared to also certification for OHSAS 18001:2007 for
China and other more developed regions of the world. So, environment, occupational health and safety.
even with a 6%-6.5% growth in GDP per annum, there is
expected to be a healthy growth in packaging demand in During 2008-09, the plant successfully catered to
increasing volumes. It witnessed volume growth of 18%
India. There are also other growth drivers, which are
in sales of BOPP film and 28% in thermal film sales. Much
accelerating BOPP films demand in India. These are:
of this was achieved by maintaining high production
< The retail boom efficiencies. In fact, in 2008-09 all its BOPP production
and metallisation lines achieved 100% capacity
< The strong 15% growth per annum in the Indian
utilization.
converting industry
< India emerging as the hub for supplies to
HUMAN RESOURCES
multinational companies in the converted products
space Human resources are the most valuable asset at MSP and
it continues to focus on attracting and retaining the best
Indian BOPP players have significant advantages over available talent. MSP provides an excellent and

www.maxspecialityproducts.com
TODAY, MSP HAS A DISTINGUISHED CUSTOMER BASE IN INDIA AND ABROAD.

ITS ABILITY TO BUILD LASTING RELATIONSHIPS WITH CUSTOMERS HAS RESULTED IN
SUSTAINED GROWTH OVER THE LAST FEW YEARS
professional work environment and also ensures comfort about their adequacy and adherence. Further
customised training and development programmes at all internal audit and management reviews are conducted
levels of employees. Performance is recognised and regularly and the reports are regularly submitted for
rewarded on merit and special stress is laid on innovation. review to the Audit Committee.
MSP has also initiated skill-upgradation and education
programmes for its workmen. OUTLOOK, RISKS AND CONCERNS
The total number of employees as on 31 March 2009 Large capacity additions are on the anvil in India in 2009-
was 429. 10, which may put pressure on margin. However,
it is expected to be a temporary phenomenon. After the
Relationship with workmen is cordial and MSP staff first half of 2010-11, with a higher demand-supply
continues to get awards from Government organizations equilibrium, this margin pressure should ease up.
for safety. In its endeavour to adopt world class
manufacturing as the primary initiative, MSP has There can be likely pressure on margins due to large
developed a mission that pursues ecologically capacity addition in China and Middle-East creating an
sustainable economic growth and has signed the code for initial phase of over-supply and price competition. Also,
ecologically sustainable business growth evolved by the sharp fluctuation in PP prices (PP is derivative of petroleum
Confederation of Indian Industry (CII). It is the first prices) as was seen in 2008-09 may result in inventory
company in the BOPP sector to sign this code. gains or losses. In 2008-09, MSP successfully passed on all
raw material and other cost increases to the market.
INTERNAL CONTROL SYSTEM AND ADEQUACY MSP will strive to mitigate all these risks by a sharp focus
MSP has adequate internal control system in place. It has on development of new products, enhancing sales of
well established management systems and procedures. speciality products, focusing on Blue Chip customers and
Periodic audit of these by accrediting agencies, gives further improving operational efficiencies.

MAX HEALTHSTAFF INTERNATIONAL LTD.
OVERVIEW
In the healthcare business, Max India had also entered proceedings, are subject to limits as imposed by the US
the business of sourcing, training and placing healthcare government. In the recent past and even today, the
personnel in India and abroad with a specific focus on the demand for EB-3 visas far exceeds the quota limit set by
United States. the US government. This has also led to visa retrogression.
Due to the enforcement of visa retrogression, MHS has
This was carried out through Max HealthStaff International considerably scaled down its operations till the time
Limited (MHS), a 100% subsidiary of Max India. further clarity on immigration laws emerge.
The professionals sourced by MHS have to obtain an EB-3 Accordingly, based on prudent accounting practices, the
category visa which allows healthcare professionals to management of Max India Ltd. has decided to provide for
remain and work in the US. The numbers of such visas, diminution in the value of investments and loans given to
which are provided in the usual course of US immigration MHS in the financial statements.

www.maxindiafoundation.org
CORPORATE SOCIAL RESPONSIBILITY: MAX INDIA FOUNDATION
Max India Foundation (MIF) is the social service arm of The Foundation's main focus areas are:
Max India Group. MIF spearheads the CSR initiatives of
the various Max India Group companies and also partners < Providing improved access to quality healthcare for
with several reputable NGOs such as CanSupport, SOS underprivileged sections of society, particularly
Children's Village, Manav Seva Sannidhi and Chinmaya children.
Mission. < Creating awareness on issues of concern such as
women's health, cancer, cardiovascular diseases and
Max New York Life, Max Healthcare and Max Speciality
immunisation of children.
Products are actively involved in various CSR activities
under its aegis. Max India Foundation has touched < Improving awareness of environmental issues with a
around 27,000 lives across 100 locations through view to supporting a sustainable and eco-friendly
2,300 volunteers and 90 NGO partners. environment.

Given below are some of the initiatives undertaken by the < CanSupport's East Delhi Field Centre: MIF has
MIF in association with its partner NGOs in 2008-2009: sponsored a Field Centre at East Delhi for its partner
NGO, CanSupport, a Delhi based NGO caring for
< Pan-India Immunisation Programme: MIF is people with cancer, to provide palliative care to
conducting an immunisation programme for patients and their families struggling with cancer. It
underprivileged children in locations where Max New was inaugurated on 21 May 2008, and will have two
York Life (MNYL) has offices, supported by their home-based palliative care teams. MIF is sponsoring
volunteers. Around 100 children are immunised in the entire cost of running this centre including
each location. The programme was started in July doctors' and nurses' salaries, transportation, and
2008, and every month new locations are being medicines. 178 patients have received treatment
added. Twenty locations were covered from July till under this centre up to March 2009.
31 March 2009. In the months of April-May 2009, 24
< Walk for Life - Breast Cancer Awareness Event: MIF
new locations were added. The total numbers of
has contributed to the Global Cancer Control Mission
children immunised was more than 5,000.
through sponsorship, support and participation in our
< SOS Children's Villages of India (SOS): MIF is partner NGO CanSupport's “Walk for Life: Stride
working to strengthen the existing association of Max against Breast Cancer” held on 15 February 2009 at
New York Life with SOS Children's Villages of India New Delhi. The walk was organised to raise awareness
(SOS). Since inception, MNYL has contributed over on the increasing incidence of breast cancer.
Rs. 5 million to SOS. More recently, MIF supported a
< Health Centres: MIF Health Centre at Rail Majra
fund raising programme organised by SOS through a
village, near Rupnagar, Punjab provides free medical
contribution of Rs. 500,000 to pay for a year's
consultation and medicines to the villagers. Since its
expenses on stay, food and other amenities for 100
launch on 1 February 2008, over 10,000 patients have
children of the SOS village. MIF is conducting
been treated.
immunisation camps with SOS in their outreach
program venues. · Adoption of the Government School: MIF is also
< Artificial Limbs and Polio Calipers Camp: MIF, in providing extra coaching for Class 10 students of
collaboration with partner NGO, Manav Seva Government High School at Rail Majra for
Sannidhi, organised an Artificial Limbs and Polio mathematics, science and english. It has also
Calipers camp at Mohali during 3-9 December 2008. undertaken initiatives such as free medical camps,
The camp provided artificial limbs to 380 patients. A donated ceiling fans, sweaters, books and utensils for
distinctive feature of the camp was that the patients the mid-day meal for children.
came from Himachal, Punjab, and Haryana with their < Health Care Unit, Sunlight Colony, New Delhi: MIF,
attendants and stayed there till they were in collaboration with its partner NGO, the Chinmaya
comfortable with their new limbs — bonding together Mission, has set up a Health Care Unit in Sunlight
as a family and giving each other encouragement. Colony. The community is charged a nominal amount

www.maxindiafoundation.org
for consultation, including medicines. Doctors with at Max House on 25 March, 2009. Dr. Natasha Das
experience in treating general patients, conducted the workshop discussing the method for
gynaecological, ophthalmology and dental cases are “Breast Self Examination' stressing on its importance
available for consultation. Costs incurred for running for early detection and treatment.
the clinic are shared between the Chinmaya mission < Dr. Sujeet Jha, Head, Endocrinology Department, Max
and MIF. Camps are also conducted. Healthcare, conducted an awareness talk on diabetes
< Surgical treatment for the poor: MIF facilitates and its management, 15 April 2009 at Max House.
treatment and procedures including surgery for the < MIF, through Max Speciality Products and Max
poor. In the last one year, MIF has sponsored about 60 Healthcare, conducted an eye and dental check-up on
such surgeries for the underprivileged including 17-18 April 2009 at the Government Secondary
paediatric surgeries. School, Rail Majra. Some 570 cases were checked: 12
cases were identified for cataract surgery which was
Health workshops and camps are organised regularly to
done free of cost for the patients; 30 cases were
reach out to the underprivileged and spread Health
identified for dental treatment; 43 pairs of spectacles
Awareness:
were given to the people who were identified for short
< A multi-specialty health camp was organised at vision during the camp.
Colony No. 5, Slum Cluster, Sector 50, Chandigarh on < Max India Foundation with Max Healthcare
18-19 October 2008. Some 950 patients were organised a general health camp on 29 April 2009 for
checked and given free medicines. the underprivileged community and Waste collectors
< A free health check-up camp was organised on 8 of Shahpur Jat. Dr. Pratima Kiro conducted the camp.
March 09, by Max India Foundation and Max < A cleft lip and palate camp was organised on 3 May
Healthcare at Goshala Temple, Kishangarh in 2009 at the Chinmaya Ashram's Health Centre to
association with the NGO Agragati. The camp had provide free surgeries to patients at Max Healthcare.
facilities for cardio investigation such as ECG, blood Dr. Sunil Chaudhary, Senior Consultant and Head,
pressure, blood sugar and also eye examination. Some Aesthetic and Reconstructive Plastic Surgery, Max
200 patients were served. Healthcare conducted the camp. Three
< For International Women's Day, Max India underprivileged children were identified for surgery
Foundation through Max Healthcare conducted a and operated on 14 May 2009 at Max Super-
Workshop on Women's Health Issues for the Waste Specialty Hospital.
Collectors Community in association with NGO Jamghat Health and Day Care Centre: MIF has partnered
Vatavaran at Shahpur Jat. Dr. Poonam Kirtani of Max with an NGO, 'Jamghat – a Group of Street Children', and
Healthcare discussed various health issues. 30-35 sponsored a health and day care centre in the Jama
patients were served. Masjid Area. It was inaugurated on 23 May 2008. A
< A Breast Cancer Awareness Workshop was organised paediatrician from Max Healthcare is visiting the area

MIF IS CONDUCTING AN
IMMUNISATION PROGRAMME
FOR UNDERPRIVILEGED
CHILDREN IN WHICH IT
IMMUNISED MORE THAN
5,000 CHILDREN IN 2008-09
twice a month for health check-ups and providing business environment and growth here will be as per
required medicines. This centre is a hub for rehabilitation Max India's efforts. The healthcare services businesses
of these street children, and is used to impart vocational will have some pressure on profitability due to costs
training, life skills and provide them toilet and bathing related to the starting of some new hospitals. The most
facilities. profitable business, Max Speciality Limited, will face
Environmental Awareness: MIF is committed to spread some pricing pressure with new capacities coming on
awareness of environment friendly initiatives and board in the industry. However, its product quality and
encourages sustainable practices of conservation of marquee customer base will help in growth.
energy, waste management, reduction in the use of
Our outlook, therefore, for 2009-10 is cautiously
paper, electricity and water across all the Max India
optimistic.
Group entities.
CAUTIONARY STATEMENT
OUTLOOK
Statements in this management discussion and analysis
The outlook for Max India has to do with those of its
describing the company's objectives, projections, estimates
different businesses. As mentioned earlier, most of the
and expectations may be 'forward looking statements'
businesses are in a development phase. The economic
within the meaning of applicable laws and regulations.
environment is expected to gradually improve from the
Actual results may differ substantially or materially from
lows seen in the second half of 2008-09. However,
growth will be lower than what has been witnessed in the those expressed or implied. Important developments that
last five years. Even so, there will be opportunities to tap could affect the company's operations include a downward
markets. trend in the Indian economy or the healthcare and
packaging industry, rise in input costs, exchange rate
In line with this view, the insurance business is expected fluctuations, and significant changes in political and
to grow but at a lower rate than what was seen between economic environment in India, environment standards,
2001 and 2007. The healthcare space is not affected by tax laws, litigation and labour relations.

MAX INDIA LIMITED: CONSOLIDATED FINANCIAL REVIEW
Max India Limited's abridged consolidated profit and loss statement is given in Table 2.
Table 2: Abridged Consolidated Financials, Max India Limited Rs. in crore

2008-09 2007-08
INCOME
Net Sales 401.61 321.85
Service Income 4106.07 2922.20
Income from Investment Activities 330.24 324.93
Other Income 53.52 41.57
TOTAL INCOME 4891.44 3610.55
EXPENDITURE
Increase / (Decrease) in Inventory (0.19) 5.03
Manufacturing, Trading and Direct Expenses 3414.94 2690.77
Personnel Expenses 843.76 454.84
General and Administration Expenses 841.98 399.39
PBDIT (209.43) 70.59
Financial Expenses 50.57 47.31
Depreciation 97.01 66.34
(LOSS) BEFORE TAX (357.01) (43.06)
Tax Expense (23.84) 16.72
(LOSS) AFTER TAX (333.17) (59.78)
Funds for Future Appropriations - Participating Policies 26.41 (37.09)
Minority Interest 88.38 47.98
NET (LOSS) (218.39) (48.90)

Revenues were generated from the following sources: sources including the sale of scrap in the speciality
plastic products business. Other incomes increased
< Sales revenue was generated from the speciality
by 28.7% from Rs. 41.57 crore in 2007-08 to
plastic products business and trading of consumables,
Rs. 53.52 crore in 2008-09
drugs and pharmaceuticals as a part of the healthcare
business. Net sales increased by 24.8% from Max India Limited is in a growth phase, where value is
Rs. 321.85 crore in 2007-08 to Rs. 401.61 crore in created through revenue expansion and enhanced
2008-09 operating efficiencies. It has successfully grown revenues
through all income sources. Our Consolidated revenues
< Service income was primarily from premiums
increased by 35.5% from Rs. 3,610.55 in 2007-08 to
recognised in the life insurance business, healthcare
Rs. 4,891.44 crore in 2008-09.
services revenues, income from clinical trials and
placement revenues. Service income grew by 40.5% There were costs incurred on the expansion plans of the
— from Rs. 2,922.20 crore in 2007-08 to company, particularly in the insurance businesses, which
Rs. 4,106.07 crore in 2008-09 have resulted in negative operating profits (PBDIT).
Moreover, it is worth noting that for a group, which is
< Income from investments activities was on account of
in an expansionary phase, Max India has a very low level
treasury surplus available with the group companies
of financial leverage. Total debt as a ratio to net worth
and from the investment corpus of the life insurance
has, in fact, further decreased from 0.36 in 2007-08 to
business. Income from investment activities remained
0.23 in 2008-09. In an environment of scarcity of capital,
stable at Rs. 330.24 crore in 2008-09
this provides Max India opportunity to further leverage
< Other income includes income from miscellaneous and grow.

CORPORATE
GOVERNANCE REPORT
PHILOSOPHY OF CORPORATE GOVERNANCE members with an Executive Director and ten Non-
Executive Directors of which eight are independent.
Compliance is one driver of Corporate Governance.
Mr. Analjit Singh, Chairman & Managing Director of
The Max India Group sees corporate governance as an
the Company is a Promoter Director. Mr. Anuroop
actual operating mechanism in driving its various
(Tony) Singh has been appointed as the Vice Chairman
businesses as increasingly we move towards a Board
(Non-executive) of the Company to strengthen the
managed structure across the Group. Hence, the
Governance and Strategic Planning process. No
addition of functional experts in our various Boards
Director is a member in more than ten committees, or
and an enhanced interface between Management,
the Chairman of more than five committees, across all
Sub-committees and the Boards. This almost
public companies in which he is a Director.
automatically achieves value driven leadership and
highest standards of accountability, transparency and The composition of directors and the attendance at
ethics across the Group. the Board meeting during the year 2008-09 and at the
last annual general meeting, including the details of
BOARD COMPOSITION their directorships and committee memberships are
Your Board of Directors currently comprises of eleven given herewith:

Director Board Attendance Directorships* Memberships/
meetings at last AGM Chairmanships
attended of Board
Committees**
Mr. Analjit Singh 08 ✔ 14 Nil
[Promoter Director]
Dr. S.S. Baijal 06 — 06 6 (including 3
[Non-Executive Independent Director] as Chairman)
Mr. N.C. Singhal 08 ✔ 10 5 (including 4
Mr. Ashwani Windlass 09 — 01 2 (including 1
Mr. Rajesh Khanna 03 — 07 03
[Non-Executive Director]
Mr. N. Rangachary 07 — 03 02
[Non-Executive Independent Director]
Mr. Piyush Mankad 09 ✔ 13 09 (including 1
Mr. Anuroop (Tony) Singh 05 — 05 Nil
Mr. Leo Puri 05 — 03 02
[Non-Executive Director]
(Appointed w.e.f. May 17, 2008)
Mr. S.K. Bijlani 06 — 02 01
(Appointed w.e.f. October 22, 2008)
Mr. Aman Mehta 01 — 07 7 (including 3
(Appointed w.e.f. December 12, 2008)
Mr. Bharat Sahgal 01 — 01 Nil
(Resigned w.e.f. March 31, 2009)
Mr. B. Anantharaman 01 — 01 01
Jt. Managing Director
(Resigned w.e.f. June 30, 2008)
* Excludes Directorships in Indian private limited companies, unlimited liability companies, companies incorporated under Section 25 of the
Companies Act, 1956, foreign companies, memberships of managing committees of various chambers/bodies and alternate Directorships.
** Represents Memberships/Chairmanships of Audit Committee & Shareholders/Investors Grievance Committee

Details of Board meetings held during the year ended effectively, members of the Board are briefed at every
March 31, 2009: Board meeting, on the overall performance of the
Company and it’s subsidiaries/joint ventures. Senior
Date Board No. of Management is often invited to attend the Board
Strength Directors meetings to provide detailed insight into the items being
present
discussed.
May 17, 2008 11 07
July 11, 2008 10 05 CODE OF CONDUCT FOR DIRECTORS & SENIOR
July 18. 2008 10 08 MANAGEMENT
August 28, 2008 10 09 Max India has a Code of Conduct for the Directors and
October 22, 2008 11 08 Employees of the Company to guide them on:
November 7, 2008 11 09 < Adherence to the highest standards of honesty,

integrity and avoidance of conflicts of interest.
November 28, 2008 11 04
< Carrying out their duties in an honest, fair, diligent
December 12, 2008 12 04
and ethical manner, within the ambit of authority
January 28, 2009 12 10 conferred upon them and in accordance with
February 3, 2009 12 06 applicable laws.
< Their responsibility to take decisions and implement
BOARD PROCEDURES policies in the best interests of the Company and all
The Company holds at least one Board meeting in a quarter its stakeholders.
to review financial results and business performance. The
gap between two board meetings does not exceed four The Code of Conduct is prominently displayed on the
calendar months. Apart from aforesaid four meetings, Company website.
additional board meetings are also convened, from time to
time. Some urgent matters are approved by the Board by COMMITTEES OF THE BOARD
resolutions passed by circulation. AUDIT COMMITTEE
This Committee currently comprises of Mr. N.C. Singhal
All the Agenda items are accompanied by comprehensive
(Chairman), Dr. S.S. Baijal, Mr. N. Rangachary, Mr. Leo
notes on the related subject and in certain areas such as
Puri and Mr. Ashwani Windlass. All members of the
business plans/business reviews and financial results,
Committee, except Mr. Leo Puri, are Independent
detailed presentations are made to the Board members.
Directors. The Company Secretary of the Company acts as
Additionally, the Board is free to recommend inclusion of
the Secretary of this Committee. This Committee inter
any matter for discussion in consultation with the
alia, recommends appointment of statutory auditors;
Chairman.
reviews Company’s financial reporting processes and
To enable the Board to discharge its responsibilities systems; reviews financial and risk management policies;

Company’s financial statements, including annual and Independent Directors. This Committee evaluates
quarterly financial results; and financial accounting compensations and benefits for Executive Directors
practices & policies. The scope of the audit committee has and administers the ESOP Scheme of the Company. The
been defined by the Board of Directors in accordance with remuneration policy of the Company is aimed at
Clause 49 of the Listing Agreement and Section 292A of the attracting and retaining the best talent to leverage
Companies Act, 1956. The Internal Auditors and performance in a significant manner. The strategy takes
representatives of Statutory Auditors are invited to the into account, the remuneration trends, talent market
meetings of the Committee, as required. Mr. N.C. Singhal, and competitive requirements.
the Chairman of the Audit Committee, was present at the
last Annual General Meeting. Mr. Leo Puri was inducted Meetings & attendance during the year:
into the Committee during the course of the year. Director Number of Number of
meetings held meetings
Meetings & attendance during the year: attended
Director Number of Number of Dr. S.S. Baijal 03 02
meetings held meetings Mr. Analjit Singh 03 01
attended
Mr. Ashwani Windlass 03 03
Mr. N. C. Singhal 06 06
Mr. Leo Puri 02 02
Dr. S.S. Baijal 06 05
Mr. N.C. Singhal 03 03
Mr. Ashwani Windlass 06 04
Mr. Rajesh Khanna 01 01
Mr. N. Rangachary 06 06
Mr. Leo Puri 04 04 REMUNERATION PAID TO DIRECTORS DURING
Mr. Rajesh Khanna 02 - 2008-2009
The Company has not paid any remuneration to its
REMUNERATION COMMITTEE Non-Executive Directors, except for the Sitting Fees
This Committee currently comprises of Dr. S.S. Baijal for attending meetings of the Board/Committees @
(Chairman), Mr. Analjit Singh, Mr. Ashwani Windlass, Rs. 15,000/- per meeting. Details of the remuneration
Mr. Leo Puri and Mr. N.C. Singhal, out of which, Dr. S.S. paid to the Executive Directors of the Company for the
Baijal, Mr. Ashwani Windlass and Mr. N.C. Singhal are year ended March 31, 2009 are as under:

(Amount in Rs.)
Description Mr. Analjit Singh Mr. B. Anantharaman
(from April 1, 2008 to (from April 1, 2008 to
March 31, 2009) June 30, 2008)
Salary 2,86,42,000 56,25,510
House Rent Allowance/ Housing — 7,50,000
Benefits (Perquisites) 16,66,331 1,70,659**
Bonuses/Performance Incentives 1,50,00,000 1,29,37,397
Retirals 29,16,000 4,86,000
Service contract — —
Notice period 3 months 3 months
Stock options, if any (in numbers) — 2,80,175*
* 2,80,175 Stock Options were vested and 2,80,175 equity shares of Rs. 2/- each were allotted on May 5, 2008.
** This does not include loss on sale of assets amounting to Rs. 28.79 lakhs arising out of final settlement.
Details of equity shares of Rs. 2/- each held by Directors Meetings & attendance during the year:
of the Company as on March 31, 2009 are: (a) Mr. Analjit Director Number of Number of
Singh 41,68,192 shares, (b) Dr. S.S. Baijal – 25,000 shares, meetings held meetings
(c) Mr. N.C. Singhal – 20,000 Shares, and (d) Mr. Ashwani attended
Windlass – 1,23,800 shares. Mr. Ashwani Windlass 07 07
SHAREHOLDERS/INVESTORS GRIEVANCE COMMITTEE Mr. Piyush Mankad 07 07

Dr. S.S. Baijal 05 03
This Committee was reconstituted during the year under
review. Currently, this Committee comprises of Mr. Mr. B. Anantharaman 02 01
Ashwani Windlass (Chairman), Mr. Piyush Mankad and Besides, the Company Secretary has been authorized to
Dr. S.S. Baijal. It approves the transfer and transmission effect transfer of shares upto 500 per folio. Mr. V.
of securities; issuance of duplicate certificates, redressal Krishnan, Company Secretary is the Compliance Officer
of investors’ grievances. It also suggests and monitors for the Company. The Company has normally attended to
measures to improve investor relations. the Shareholders/Investors complaints within a period of

7 working days except in cases which were under legal (B) COMPLIANCE BY THE COMPANY
proceedings/disputes. The Company received 60 The Company has complied with the requirements of
complaints from the shareholders during the financial the stock exchanges, SEBI and other statutory
year ended March 31, 2009 and the Company has authorities on all matters relating to capital markets
attended to all the complaints received. during the last three years. No penalties or strictures
have been imposed on the Company by the stock
BANKING OPERATIONS COMMITTEE
exchanges, SEBI, or any other statutory authorities
This Committee approves opening and operation of bank on any matter relating to capital markets during the
accounts and reviews its mandate, from time to time. This last three years.
Committee was reconstituted during the year under
review. Currently, the Committee comprises of Mr. GENERAL BODY MEETINGS
Analjit Singh, Mr. Piyush Mankad and Dr. S.S. Baijal. This
The Annual General Meetings (AGMs) of the Company is
Committee met once during the year under review.
held at the Registered Office of the Company. The last
three AGMs were held as under:
DISCLOSURES
(A) RELATED PARTY TRANSACTIONS Date Time
The Company has not entered into any transaction of September 15, 2006 10.30 AM
a material nature with the promoters, Directors or September 14, 2007 10.30 AM
the management, their subsidiaries or relatives, etc., September 16, 2008 10.00 AM
that may have any potential conflict with the
interest of the Company.
The following special resolutions were passed by the shareholders in the previous three AGMs:
Date of AGM Subject matter of the resolution
September 15, 2006 < Payment of managerial remuneration to Mr. Analjit Singh, Executive Chairman for a three-
year period from April 1, 2006.
< Payment of managerial remuneration to Mr. B. Anantharaman, Jt. Managing Director for a
three-year period from April 1, 2006.
< Amendment of Articles of Association of the Company.
September 14, 2007 < Approval for making further investment of Rs. 1000 crore in Max New York Life Insurance
Company Limited, a Subsidiary of the Company.
September 16, 2008 < Approval for making investment upto an amount of Rs. 100 crore in the equity share
capital of a joint venture company for Health Insurance business in collaboration with
Bupa Finance Plc., UK.

POSTAL BALLOT COMPLIANCE CERTIFICATE OF THE AUDITORS
During the year under review, no resolution was passed The statutory auditors of the Company have certified that
through postal ballot. The Company proposes to pass the Company has complied with the conditions of
special resolutions through postal ballot for (i) providing Corporate Governance as stipulated in Clause 49 of the
guarantees up to an amount of Rs. 500 crore on behalf of Listing Agreement with Stock Exchanges and the same is
Max Healthcare Institute Limited and (ii) give loan annexed to the Report.
to/make investment upto an amount of Rs. 150 crore in
NON-MANDATORY REQUIREMENTS
Max Healthcare Institute Limited, a subsidiary of the
Company. The result of the said postal ballot resolutions Details of non-mandatory requirements of clause 49 to
the extent to which the Company has adopted are given
will be declared at the ensuing Annual General Meeting.
below:
The Postal Ballot is carried out, whenever required,
The Company has set up a Remuneration Committee,
following the procedure set out in section 192A of the
with an independent director as is Chairman, to
Companies Act, 1956 read with the Companies (The determine on their behalf and on behalf of the
Passing of the Resolutions by Postal Ballot) Rules, 2001. shareholders with agreed terms of reference, the
MEANS OF COMMUNICATION Company’s policy on specific remuneration packages for
Executive Directors including pension rights and any
Timely disclosure of reliable information and corporate compensation payment. There is no audit qualification
financial performance is at the core of good Corporate in respect of financial statements of the Company. All
Governance. Towards this direction, the quarterly/annual Board members are experts in their respective fields.
results of the Company were announced within the They are well aware of the business model of the
prescribed period and published in The Economic Company as well as the risk profile of the Company.
Times/Business Standard/Desh Sewak among others. The Remaining non-mandatory requirements of clause 49 are
results can also be accessed on the Company’s website expected to be addressed in due course.
www.maxindia.com. The official news releases and the
DECLARATION BY THE CMD ON CODE OF
presentations made to the investors/analysts are also
displayed on the Company’s website. The results are not CONDUCT AS REQUIRED BY CLAUSE 49 I (D) (II)
sent individually to the shareholders. The Company made This is to declare that the Company has received
presentations to financial analysts and institutional affirmations of compliance with the provisions of
investors after the quarterly/annual financial results Company’s Code of Conduct for the financial year ended
were approved by the Board. March 31, 2009 from all Directors and Senior
Management personnel of the Company.
GENERAL SHAREHOLDER INFORMATION
A section on the ‘Shareholders' Information’ is annexed,
and forms part of this Annual Report.
For Max India Limited
MANAGEMENT DISCUSSION & ANALYSIS
A section on the ‘Management Discussion & Analysis’ is New Delhi Analjit Singh
annexed, and forms part of this Annual Report. July 30, 2009 Chairman & Managing Director

CERTIFICATION BY CHAIRMAN & MANAGING DIRECTOR AND CHIEF FINANCIAL CONTROLLER
July 30, 2009
The Board of Directors

Max India Limited
Bhai Mohan Singh Nagar,
Railmajra,
Tehsil Balachaur,
Dist. Nawanshahr
Punjab – 144 533
We, Analjit Singh, Chairman & Managing Director and internal controls and that we have evaluated the
Sujatha Ratnam, Chief Financial Controller of Max India effectiveness of the internal control systems of the
Limited certify to the Board in terms of the requirement Company pertaining to financial reporting and we
of Clause 49(V) of the listing agreement, that we have have disclosed to the Auditors and the Audit
reviewed the financial statement and the cash flow Committee, deficiencies in the design or operation
statement of the Company for the financial year ended of internal controls (if any), and further state that
March 31, 2009. the internal control systems are adequate and
commensurate with the size of business.
1. To the best of our knowledge, we certify that:
3. We do further certify that there has been:
(a) these statements do not contain any materially
untrue statement or omit any material fact or (a) no significant changes in internal controls
contain statements that are misleading; during the year
(b) these statements together present a true and
(b) no significant changes in accounting policies
fair view of the Company’s affairs and are in
during the year and
compliance with existing accounting
standards, applicable laws and regulations; and (c) no instances of fraud, of which we are aware
during the period.
(c) there are no transactions entered into by the
Company during the year which are fraudulent,
illegal or violative of the Company’s Code of
Conduct.
Analjit Singh Sujatha Ratnam
2. For the purposes of financial reporting, we accept Chairman & Chief Financial Controller
the responsibility for establishing and maintaining Managing Director

AUDITORS' CERTIFICATE REGARDING COMPLIANCE OF CONDITIONS OF CORPORATE
GOVERNANCE
To the Members of Max India Limited
We have examined the compliance of conditions of In our opinion and to the best of our information and
Corporate Governance by Max India Limited, for the year according to the explanations given to us, We certify that
ended March 31, 2009, as stipulated in Clause 49 of the the Company has complied with the conditions of
Listing Agreements of the said Company with stock Corporate Governance as stipulated in the above
exchanges in India. mentioned Listing Agreements.
The compliance of conditions of Corporate Governance is We state that such compliance is neither an assurance as
the responsibility of the Company's management. Our to the future viability of the Company nor the efficiency
examination was carried out in accordance with the or effectiveness with which the management has
Guidance Note on Certification of Corporate Governance conducted the affairs of the Company.
(as stipulated in Clause 49 of the Listing Agreement),
issued by the Institute of Chartered Accountants of India V. NIJHAWAN
and was limited to procedures and implementation Partner
thereof, adopted by the Company for ensuring the Membership No: F 87228
compliance of the conditions of Corporate Governance. It For and on behalf of
is neither an audit nor an expression of opinion on the Gurgaon Price Waterhouse
financial statements of the Company. July 30, 2009 Chartered Accountants

SHAREHOLDERS’ INFORMATION
REGISTERED OFFICE AND PLANT LOCATION BOOK CLOSURE

Bhai Mohan Singh Nagar, Railmajra, Tehsil Balachaur, Wednesday, September 16, 2009 to
District Nawanshahr, Punjab- 144533. Wednesday, September 23, 2009
(both days inclusive)
INVESTOR HELPLINE
Max House, 1, Dr. Jha Marg, Okhla, Phase III, FINANCIAL CALENDAR - 2009-10
New Delhi–110 020 1. First quarter results - July 2009
Tel: 011-42598000, Fax: 011-26324126 2. Second quarter & half yearly results - October 2009
E-mail: investorhelpline@maxindia.com
3. Third quarter results - January 2010
SHARE TRANSFER AGENT 4. Annual results - June 2010
Mas Services Limited

LISTING ON STOCK EXCHANGES
T-34, 2nd Floor, Okhla Industrial Area,
Phase II, New Delhi–110 020 The Equity Shares of the Company are listed on the
Tel: 011-26387281 / 82 / 83 Bombay Stock Exchange Limited ('BSE') and the National
Fax: 011-26387384 Stock Exchange of India Limited ('NSE'). The Company has
e-mail: info@masserv.com received in-principle approval for delisting its shares
from The Calcutta Stock Exchange. The Company
ANNUAL GENERAL MEETING confirms that it has paid annual listing fees due to BSE
and NSE for the year 2009-10.
Date and Time : Wednesday, September 23, 2009
at 10.30 a.m.
CONNECTIVITY WITH DEPOSITORIES
Venue : Registered Office of the Company
The Company's shares are in dematerialized mode
through National Securities Depository Limited (NSDL)
and Central Depository Services (India) Limited (CDSL).

STOCK CODE
Bombay Stock Exchange Limited - 500271
National Stock Exchange of India Limited - MAX
Demat ISIN No. for NSDL and CDSL - INE180A01020
Reuters Bloomberg
Bombay Stock Exchange MAXI.BO MAX:IN
National Stock Exchange MAXI.NS NMAX:IN
Monthly high and low quotation on Bombay Stock Exchange Limited (BSE) and National Stock Exchange of India
Limited (NSE)
Month BSE NSE

High (Rs.) Low(Rs.) High (Rs.) Low(Rs.)
April, 08 180.90 138.20 181.90 140.50

May, 08 179.00 148.80 178.90 148.15
June,08 188.00 147.50 187.50 147.60
July, 08 204.40 140.00 206.50 143.00
August, 08 232.00 186.20 232.90 192.55
September, 08 219.00 155.05 218.60 154.00
October, 08 185.00 81.00 184.70 80.00
November, 08 140.60 91.15 141.00 90.50
December, 08 128.40 90.10 128.80 90.30
January, 09 127.90 100.50 124.75 100.05
February, 09 128.00 101.00 127.90 101.25
March, 09 109.00 96.00 108.00 97.00

Share Price Vs. Sensex**
250.00 20000.00
18000.00
200.00 16000.00
14000.00
150.00 12000.00
Price
10000.00
Sensex
100.00 8000.00
6000.00
50.00 4000.00
2000.00
0.00 0.00
08
09
8
8
08
9
08
9
08
08
8
08
,0
,0
,0
,0
,0
r,
y,
r,
ly,
ne
r,
r,
ril
st,
ch
ry
be
ay
be
ar
be
be
Ap
Ju
ua
Ju
gu
ar
m
M
nu
em
m
to
M
br
ve
Au
ce
Ja
Oc
pt
Fe
No
De
Se
Shareholding Pattern as on March 31, 2009

Category No. of shares held % of shareholding
Promoters 77354820 34.84
Mutual Funds and UTI 5387658 2.43
Banks, Financial Institutions 19015 0.009
Insurance Companies 45750 0.021
Foreign Institutional Investors 82547353 37.18
Foreign Direct Investment 29823320 13.43
Bodies Corporate 2470670 1.11
Non-resident Indians/ Overseas Corporate Bodies 7080025 3.19
Clearing Members 223771 0.10
Resident Individuals 17077928 7.69
Total 222030310 100.00

Distribution of shareholding as on March 31, 2009
No. of Percentage Shareholdings No. of shares Percentage

Shareholders to total to total
27038 97.05 01 – 500 9455513 4.26
422 1.52 501 – 1000 1554108 0.70
167 0.60 1001 – 2000 1206560 0.54
40 0.14 2001 – 3000 484571 0.22
25 0.09 3001 – 4000 439942 0.20
25 0.09 4001 – 5000 577659 0.26
34 0.12 5001 – 10000 1213299 0.55
110 0.39 10001 - above 207098658 93.27
27861 100.00 Total 222030310 100.00
DEMATERIALISATION STATUS AS ON FOR SHAREHOLDERS HOLDING SHARES IN

MARCH 31, 2009 DEMATERIALISED MODE
(i) Shareholding in dematerialized mode 98.38% Shareholders holding shares in dematerialised mode are
(ii) Shareholding in physical mode 1.62% requested to intimate all changes with respect to bank
details, mandate, nomination, power of attorney, change
SECRETARIAL AUDIT REPORT of address, change of name etc. to their depository
participant (DP). These changes will be reflected in the
As stipulated by the Securities and Exchange Board of
Company’s records on the down loading of information
India, a qualified practicing Company Secretary carries
from Depositories, which will help the Company provide
out the Secretarial Audit, on a quarterly basis, to
better service to its shareholders.
reconcile the total admitted capital with National
Securities Depository Limited (NSDL) and Central
SHARE TRANSFER SYSTEM
Depository Services (India) Limited (CDSL) with the total
listed and paid-up capital. The audit, inter alia, confirms In respect of shares upto 500 per folio, transfers are
that the total listed and paid up capital of the Company is effected on a weekly basis. For others, the transfers are
in agreement with the aggregate of the total number of effected within limits prescribed by law. The average
shares in dematerialized form and total number of shares turnaround time for processing registration of transfers
in physical form. is 9 days from the date of receipt of requests.

The processing activities with respect to requests Times/Business Standard/Desh Sewak. The financial
received for dematerialization are completed within 8 - results are also available on the Company’s website-
10 days. www.maxindia.com
UNCLAIMED/UNPAID DIVIDEND Please visit us at www.maxindia.com for financial and

other information about your Company.
Under Section 205C of the Companies Act, 1956 the
amount of dividend remaining unclaimed for a period of
seven years from the date of payment have been
transferred to the Investor Education and Protection Fund. For Max India Limited
COMMUNICATION OF FINANCIAL RESULTS

The unaudited quarterly financial results and the audited New Delhi Analjit Singh
annual accounts are normally published in Economic July 30, 2009 Chairman & Managing Director

MAX INDIA LIMITED
COMPANY INFORMATION
BOARD OF DIRECTORS BANKERS

Mr. Analjit Singh - Chairman & Citibank N.A.
Managing Director Yes Bank Ltd
Mr. Anuroop (Tony) Singh - Vice Chairman Kotak Mahindra Bank Ltd
Mr. Aman Mehta Punjab National Bank
Mr. Ashwani Windlass Oriental Bank of Commerce
Mr. Leo Puri
Mr. N.C. Singhal CORPORATE OFFICE
Mr. N. Rangachary Max House, Okhla, New Delhi - 110 020.
Mr. Piyush Mankad
SHARE TRANSFER AGENT
Mr. Rajesh Khanna
Mas Services Limited
Mr. S.K. Bijlani
T-34, 2nd Floor,
Dr. S.S. Baijal Okhla Industrial Area Phase II
New Delhi – 110 020
COMPANY SECRETARY Tel: 011-26387281 - 83, Fax: 011-26387384
Mr. V. Krishnan E-mail: info@masserv.com
MAJOR INTERNATIONAL AFFILIATES WEBSITE

New York Life International Inc., USA www.maxindia.com
Bupa Finance Plc., UK
AUDITORS
Price Waterhouse, Chartered Accountants

MAX INDIA LIMITED
MAX INDIA LIMITED
Directors’ Report
Your Directors have pleasure in presenting the twenty-first Annual (i) Max New York Life Insurance Company Limited:
Report of your Company, with the audited Statement of Accounts, Financial Year 2008-09 was a year of continued growth for
for the financial year ended March 31, 2009. Max New York Life Insurance Company Limited (MNYL). During
the year under review, gross premium income stood at Rs.3,857
FINANCIAL RESULTS
crore, recording a growth of 42% over the previous financial
The highlights of the consolidated financial results of your Company year. First year premium income grew by 15% to Rs. 1,843
and its subsidiaries are as under: crore. With 80% increase over the previous year, renewal
premium stood at Rs.2,014 crore. MNYL sold over 12.1 lacs
(Rs. crore)
policies in 2008-09 compared to 8.7 lacs policies in the
Year ended Year ended
previous year. This achieved a cumulative sum assured of
March March
Rs. 94,000 crore.
31,2009 31,2008
Income MNYL expanded its distribution capabilities by enhancing its
Net Sales 401.6 321.9 Agency strength, adding Corporate Agents & Broking House
Service Income 4106.1 2922.2 tie-ups and consolidating its existing Bancassurance channel.
Income from investment activities 330.2 324.9 During the financial year, the number of agent advisors
Other Income 53.5 41.6 increased by 129% over last year’s 84,600. Agency sales
recorded a growth of 34%, touching Rs. 1,355 crore during
4891.4 3610.6
the year as compared to Rs. 1,012 crore in the last financial
Expenses
year. Contribution of agency distribution to total sales was
Manufacturing, Trading and Direct 3415.1 2685.8
65%, indicating success of MNYL’s multi-channel distribution
Expenses
strategy. During the calendar year 2008, 213 agent advisors
Personnel Expenses 843.8 454.8
joined the Million Dollar Round Table club (MDRT). Further, by
General and Administration Expenses 841.9 399.4
adding 511 new offices during the financial year, MNYL now
Financial Expenses 50.6 47.3
has a network of 705 offices as on March 31, 2009.
5248.4 3653.7 During 2008-09, MNYL launched two new products — Smart
(Loss) Before Tax (357.0) (43.1) Assure and Unit Builder, both ULIP products aimed at protection
Tax Expense (23.8) 16.7 and long-term wealth creation. MNYL also launched Max Vijay
— a product designed to meet the insurance needs of the rural
(Loss) After Tax (333.2) (59.8)
and semi-urban markets.
Funds for Future Appropriations 26.4 (37.1)
- Participating Policies (ii) Max Healthcare:
Minority Interest 88.4 48.0 Max Healthcare (MHC) provides comprehensive, integrated and
Net (Loss) (218.4) (48.9) world-class healthcare services with state-of-the-art
infrastructure designed in accordance with international
CONSOLIDATED BUSINESS RESULTS:
norms. MHC operates six super-speciality and multi-speciality
The year 2008-09 proved to be another year of high growth for hospitals and two speciality medical centres located in New
your Company and its subsidiaries. During financial year 2008-09, Delhi and the surrounding NCR region.
the consolidated Group revenue was Rs. 4,891.4 crore representing
Fiscal 2008-09 was a landmark year for MHC in terms of
a growth of 35% over the previous year. Net loss for 2008-09 stood
financial performance. For the first time in its short history,
at Rs. 333.2 crore against Rs. 59.8 crore in the previous year. The
MHC turned cash positive. Revenue from all hospitals in the
increase in losses was on account of significant expansion
MHC network grew by nearly 13% to Rs 423 crore in 2008-
undertaken in the Life Insurance business. Subsidiaries of your
09. During the year ended March 31, 2009, MHC’s network of
Company continued to post strong business performance for the
hospitals performed over 450 open heart surgeries, 2,000
year under review. A brief update on the business achievements of
angioplasties and 4,130 angiographies. In addition, MHC’s
your Company’s key operating subsidiaries is as below:
hospital network performed over 2,150 ortho-surgeries, 870
1 Standalone.p65 77 8/8/2009, 3:03 PM

MAX INDIA LIMITED
Directors’ Report
neuro-surgeries and 15,400 other surgeries and procedures. professionals for healthcare institutions in India and abroad
with a specific focus on the United States.
Average number of operational beds at MHC increased from
approximately 660 in 2007-08 to 720 in 2008-09. MHC The professionals sourced by MHS have to obtain an EB-3
managed 20 operation theatres and 230 critical care beds category visa which allows healthcare professionals to remain
across a completely integrated network. Average occupancy and work in the US. The number of such visas, which are
rate at MHC hospitals was approximately 65%. Number of provided in the usual course of US immigration proceedings,
patient episodes (measured by number of invoices issued to is subject to limits as imposed by the US government. In the
patients during any period) increased from 1.6 million in 2007- recent past and even today, the demand for EB-3 visas far
08 to around 1.9 million in 2008-09. In the last quarter of exceeds the quota limit set by the US government. This has
2008-09, MHC averaged around 165,000 patient episodes per also led to visa retrogression. Due to the enforcement of visa
month. retrogression, MHS has considerably scaled down its operations
till the time further clarity on immigration laws emerges.
As on March 31, 2009, MHC had manpower strength of around
1,200 physicians, including several doctors of international The highlights of the stand-alone financial results of your
repute; 1,600 nurses; 350 paramedic staff; and 1,120 other Company are as under:
support staff.
(Rs. crore)
(iii) Max Neeman Medical International Limited: Year ended Year ended
Max Neeman Medical International Limited (MNMI) is a value March March
added contract research organization (CRO) providing a broad 31,2009 31,2008
range of clinical research services to global pharmaceutical, Income
device and biotechnology companies. Gross Sales 393.5 323.0
MNMI also collaborates with other CROs in providing a variety Less: Sales returns (3.7) (4.0)
of clinical services. MNMI provides clinical research services Excise duty (36.0) (34.7)
in the space of phase II, III, & IV studies and has access to over Net Sales 353.8 284.3
850 ICH GCP trained investigators. The team of over 120 clinical Service and other income 66.2 91.1
research coordinators/clinical research associates in 22 cities 420.0 375.4
across India gives it access to patients and investigator sites Expenditure
in various therapeutic areas. Since commencement of its Indian Manufacturing and other expenses 358.6 284.1
operations, over 5,800 subjects have been enrolled at over Financial expenses 16.3 14.6
200 sites. An Impressive Operating Standard enabled MNMI Depreciation and amortization 12.1 11.4
to provide services to 21 clients over 55 contracts during fiscal 387.0 310.1
2008-09. MNMI’s automated workflow process using the SAS
Profit from operations 33.0 65.3
CDMS (PheedIT) software system ensures efficient and accurate Diminution in value of investment
data management. and doubtful advances to subsidiary 22.6 -
In fiscal 2008-09, MNMI registered revenues of Rs 15.0 crore Profit Before Tax 10.4 65.3
representing a growth of 36% over the previous year. MNMI Tax Expense (11.4) 3.4
generated a profit of Rs. 1.2 crore in 2008-09, a growth of Profit After Tax 21.8 61.9
67% over the previous year, putting the operations in positive RESULTS OF STAND-ALONE OPERATIONS:
and profitable territory. Its order book increased from Rs. 34
crore in 2007-08 to Rs. 40 crore in 2008-09. It added 5 new Fiscal 2008-09 was a year of consolidation for Max Speciality
clients during the year, taking its total client base to 48. Products (MSP), the Speciality Packaging Manufacturing division
of Max India Limited. All BOPP production lines at MSP operated at
(iv) Max HealthStaff International Limited: 100% capacity utilization. During the year, sales volume of BOPP
Max HealthStaff International (MHS) is a healthcare staffing Films improved to 28 KTA compared to 24 KTA in 2008-09. In the
and training Company. Its focus is on providing trained Indian same period, sales volume of thermal films grew by 28% over the
1 Standalone.p65 78 8/6/2009, 6:37 PM

MAX INDIA LIMITED
Directors’ Report
previous year, in line with MSP’s focus on high contribution and Proposed issuance of equity shares to Qualified Institutional Investors
high value-addition products. On an overall basis, net sales recorded
Your Company proposes to issue securities up to an amount of
a strong 24% year-on-year growth at Rs. 354 crore in 2008-09
Rs. 450 crores to Qualified Institutional Buyers (QIBs) under the
against Rs. 284 crore for 2007-08.
Qualified Institutional Placement (QIP) mechanism stipulated by
Raw material prices which had an uptrend in the first half year the Securities and Exchange Board of India (SEBI) vide Chapter
started coming down in the second half of the year due to high XIII-A of the SEBI (Disclosure and Investor Protection) Guidelines,
volatility in global crude prices. Further, the competitive landscape 2000.
became stiffer with enhanced production capacity in the domestic
RESCINDMENT OF RIGHTS ISSUE
market, raising domestic supply to 235 KTA as of March 2009
relative to 198 KTA in the previous year. The Board rescinded its earlier decision taken on February 3, 2009
for issuance of equity shares up to an amount of Rs. 650 crores, on
Your Company made a profit after tax of Rs.21.8 crore in the current
Rights basis with detachable warrants. This decision has since been
year as compared to Rs. 61.9 crore in the previous year. The reduction
changed in favour of the decision for private placement of shares
in profit was mainly on account of lower investment income
with QIBs.
resulting from deployment of treasury funds to support our
businesses and diminution in the value of investment in loans to in ADDITIONAL BUSINESS INVESTMENTS
Max HealthStaff International Limited, a subsidiary of your
The Company made a further investment of Rs.555 crore in Max
Company, which is provided for in the accounts.
New York Life Insurance Company Ltd. during the year under review,
DIVIDEND taking the total equity contribution in MNYL to Rs.1,313.50 crore
as of March 31, 2009.
Your directors do not recommend any dividend in view of their
decision to deploy internal accruals towards the growth of the FIXED DEPOSITS
Company’s Life Insurance, Healthcare and Health Insurance
There are no overdue deposits as at the end of the financial year
businesses.
under review. Your Company has not accepted/renewed any deposit
MAX BUPA JOINT VENTURE up to the date of this Report.
During the year under review, your Company entered into a joint EMPLOYEE STOCK OPTION PLANS
venture with Bupa Finance Plc, UK for its foray into the health
(i) Your Company had instituted an ‘Employee Stock Plan 2003’
insurance business. The joint venture Company, viz., Max Bupa
(‘2003 Plan’), which was approved by the Board of Directors
Health Insurance Company Limited (Max Bupa) will be a 74:26
in August 2003 and by the shareholders in September 2003.
joint venture between the Company and Bupa Finance Plc, UK. Max
The 2003 Plan provides for grant of stock options
Bupa is in the process of obtaining requisite approvals from the
aggregating not more than 5% of number of issued equity
Insurance Regulatory and Development Authority (IRDA).
shares of the Company to eligible employees and directors
FUND RAISING PROGRAMMES OF THE COMPANY of the Company. The 2003 Plan is administered by the
Remuneration Committee appointed by the Board of
Allotment of Equity Shares to International Finance Corporation,
Directors. During the year under review, 2,87,765 Options
USA, on Preferential basis
were vested and upon exercise, 2,87,765 equity shares of
The Company allotted 10,326,311 equity shares of Rs. 2/- each Rs. 2/- each for cash at par were allotted. Your Company
representing 4.44% of the present paid up equity share capital of also granted 66,320 Options to certain employees during
the Company on June 19, 2009, at a premium of Rs.143.26 per the year under review.
equity share aggregating to Rs.150 crore to International Finance
(ii) The particulars of options granted, as on the date of this report,
Corporation, Washington, USA, on preferential basis.
under the aforesaid stock option plan as required under SEBI
(Employee Stock Option Scheme and Employee Stock Purchase
Scheme) Guidelines, 1999 are given below:
1 Standalone.p65 79 8/8/2009, 3:03 PM

MAX INDIA LIMITED
Directors’ Report
Sl. No. Description 2003 Plan been recognized as compensation cost if the Company
had used fair value basis instead of adopting intrinsic
(a) Total number of options granted till 14,61,250
value basis of accounting for these stock options.
March 31, 2009
(b) The pricing formula Rs. 2/- b) On fair value basis of recognizing the employee
per share compensation cost, profit after tax for the current
(c) Number of options vested till 10,94,925 financial year would have been Rs. 21.84 crore instead of
March 31, 2009 Rs. 21.83 crore reported in the Profit and Loss account.
(d) Number of options exercised till 10,94,925 c) Basic and diluted earnings per share would have remained
March 31, 2009 unchanged at Rs. 0.98, had the Company adopted fair
(e) Total number of shares arising from 10,94,925 value basis of recognizing the employee compensation
exercise of options cost due to insignificant amount of difference in the
(f) Number of options lapsed/forfeited till 3,00,005 recognized expense and fair value of the ESOP expense.
March 31, 2009
(g) Variation in terms of options — d) The exercise price of the stock options on the grant date
(k) Money realized by exercise of options (Rs. crore) 0.22 is Rs. 2/- per existing equity share of Rs. 2/- each and the
(l) Total number of options in force as on date 66,320 fair value of each option works out to Rs. 106.58 for
(m) Number of options granted to senior December 2005 and Rs. 158.98 for June 2006 grant.
management including directors in FY 2008-09 66,320 e) The computation of fair value of stock options granted
(n) Employees holding 5% or more of the total under the 2003 Plan has been done using Black Scholes
number of options granted during the year None Option Pricing Model. The following assumptions have
(o) Employees granted options equal to or been used in applying this options pricing model:
exceeding 1% or more of the issued capital
during the year None i) Risk free interest rate of 6.48% for November 2008
grant, and 3.90% for January 2009 grant,
The diluted earning per share was Rs. 0.98 for the financial year
ended March 31, 2009. The diluted earnings per share for the ii) Expected life of 3 years of these stock options for
previous year was Rs. 2.90. November 2008 grant, and 1 year for January 2009
grant,
(iii) In respect of stock options granted till March 31, 2009 under
the 2003 Plan, the Company has calculated employee iii) Expected volatility of 51.60% for 3 year options and
compensation cost using intrinsic value of the stock options. 64.86% for 1 year options based on historical
Accordingly, an amount of Rs. 14.6 crore has been recognized volatility of the Company’s share,
as total compensation charge for grants made in October 2003, iv) No dividend expectation based on current year’s dividend
March 2005, December 2005, June 2006, November 2008 and recommendation, and
January 2009 out of which, in the current financial year,
Rs. 0.59 crore has been taken to the Profit and Loss account v) Price of Rs. 113.20 for November 2008 grant and Rs. 107.30
as expense. The additional details required to be disclosed in for January 2009 grant being the latest available closing price
accordance with SEBI (Employee Stock Option Scheme and of the Company’s share on the National Stock Exchange prior
Employee Stock Purchase Scheme) Guidelines, 1999 relating to the date of grant.
to the 2003 Plan are given below: ADDITIONAL INFORMATION
a) The employee compensation cost based on fair value of Information in accordance with the provisions of Section 217(1)(e)
stock options granted in October 2003, March 2005, of the Companies Act, 1956, read with the Companies (Disclosures
December 2005, June 2006, November 2008 and January of Particulars in the Report of Board of Directors) Rules, 1988 are
2009 under the 2003 Plan is Rs. 14.6 crore, out of which, given in the prescribed format annexed to this Report as
in the current financial year, Rs. 0.59 crore would have Annexure –A.
1 Standalone.p65 80 8/8/2009, 3:03 PM

MAX INDIA LIMITED
Directors’ Report
PARTICULARS OF EMPLOYEES GROUP FOR INTERSE TRANSFER OF SHARES
A statement giving particulars of employees under Section 217(2A) As required under Clause 3(e) of Securities and Exchange Board of
of the Companies Act, 1956 read with the Companies (Particulars India (Substantial Acquisition of Shares and Takeovers) Regulations,
of Employees) Rules, 1975 for the financial year ended March 31, 1997, persons constituting Group within the meaning as defined
2009 is annexed to this Report as Annexure-B. in the Monopolies and Restrictive Trade Practices Act, 1969 for the
purpose of Regulation 10 to 12 of aforesaid SEBI Regulations are
SUBSIDIARY COMPANIES
as follows:
Statement pursuant to Section 212 of the Companies Act, 1956,
(a) Mr. Analjit Singh, (b) Mrs. Neelu Analjit Singh, (c) Ms. Piya Singh
relating to the subsidiaries of your Company, is annexed to this
(d) Mr. Veer Singh, (e) Ms. Tara Singh, (f) Neelu Family Trust, (g)
Report.
Medicare Investment Limited, (h) Cheminvest Limited, (i) Liquid
Your Company has been exempted by the Central Government vide Investment and Trading Co., (j) Maxopp Investments Limited, (k)
their letter No. 47/364/2009-CL-III dated May 14, 2009 under Mohair Investment & Trading Co. (P) Ltd., (l) Boom Investments
Section 212 (8) of the Companies Act, 1956 from attaching a copy Private Limited, (m) PVT Investment Limited, (n) Pen Investments
of the Balance Sheet, Profit & Loss Account, Report of the Board of Limited, (o) Pivet Finances Limited, (p) Dynavest India Private
Directors and the Report of the Auditors of the subsidiary companies. Limited. (q) Maxpak Investment Limited, (r) Trophy Holdings Private
However, pursuant to Accounting Standard 21 issued by the Limited and (s) Moav Investment Limited.
Institute of Chartered Accountants of India, Consolidated Financial
DIRECTORS
Statements presented by the Company include the financial
information of the subsidiaries. Mr. Anuroop (Tony) Singh was appointed Vice Chairman of the
Company effective April 23, 2009.
Your Company will make available these documents/details upon
request by any member of the Company and its subsidiaries Mr. S.K. Bijlani and Mr. Aman Mehta have been co-opted as
interested in obtaining the same. The annual accounts of the additional directors on the Board of Directors of the Company
subsidiary companies will also be kept open for inspection by a effective October 22 and December 12, 2008, respectively. The
member at the respective registered offices of the Company and Company has received notices under Section 257 of the Companies
its subsidiary companies. Act, 1956 proposing their candidature for being appointed as
Directors of the Company at the ensuing Annual General Meeting.
AUDITORS
In accordance with the provisions of the Companies Act, 1956 and
Price Waterhouse, Statutory Auditors of your Company, retire and
the Articles of Association of the Company, Mr. N. Rangachary, Mr.
offer themselves for re-appointment. Your Company has received
Piyush Mankad, Mr. Anuroop (Tony) Singh and Mr. N.C. Singhal
from them a certificate required under Section 224(1-B) of the
retire by rotation at the ensuing Annual General Meeting and are
Companies Act, 1956 to the effect that their re-appointment, if
eligible for re-appointment.
made, would be in conformity with the limits specified in that
Section. Mr. Bharat Sahgal resigned from the Board of Directors of the
Company effective March 31, 2009. Your Directors place on record,
FINDINGS OF AGREED UPON PROCEDURES
their appreciation for the valuable contribution made by him during
Your Company engaged M/s. S.R. Batliboi & Co. to carry out certain his association with the Company.
“Agreed Upon Procedures” [AUP] on various financial parameters
CAUTIONARY STATEMENT
for the financial year ended March 31, 2009 related to Consolidated
Financial Statements of the Company. We are pleased to inform Statements in this Report, particularly those which relate to
you that there are no material adjustments to be made in the Management Discussion and Analysis describing the Company’s
Consolidated Financial Statements of the Company arising out of objectives, projections, estimates and expectations, may constitute
findings of the AUP. “forward looking statements” within the meaning of applicable laws
1 Standalone.p65 81 8/10/2009, 4:31 PM

MAX INDIA LIMITED
Directors’ Report
and regulations. Actual results might differ materially from those of Punjab to set a second Campus of ISB at Knowledge City, Mohali,
either expressed or implied in the statements depending on the Punjab. The ISB Campus, Mohali will have four specialist Institutes,
circumstances. termed as Centres of Excellence, for promoting research and offering
specializations in post graduate programmes. One such institution
DIRECTORS’ RESPONSIBILITY STATEMENT
will be named as ‘Max India Institute of Healthcare Management’.
The Board of Directors of the Company confirms that: Max India Institute of Healthcare Management will impart industry
relevant skill-sets to students in this programme to meet India’s
(i) In the preparation of annual accounts, the applicable
growing need for quality healthcare professionals. In this regard, it
accounting standards have been followed, along with proper
has been proposed to contribute a sum of Rs. 50 crores from Max
explanation relating to material departures.
India Group, which will be contributed 1/3rd from the Company, 1/
(ii) The Directors have selected such accounting policies and 3rd from its subsidiary, Max Healthcare Institute Limited and the
applied them consistently and made judgments and estimates balance 1/3rd from the Promoters of the Company, over the next
that are reasonable and prudent, so as to give a true and fair two to three years.
view of the state of affairs of the Company at the end of the
ACKNOWLEDGEMENTS
financial year and of the profit or loss of the Company for that
period. Your Directors would like to place on record their appreciation of
the contribution made by the Management and the employees who
(iii) The Directors have taken proper and sufficient care for the
through their competence and commitment have enabled the
maintenance of adequate accounting records in accordance
Company to achieve impressive growth. Your Directors acknowledge
with the provisions of the Companies Act, 1956, for
with thanks the co-operation and assistance received from various
safeguarding the assets of the Company and for preventing
agencies of the Central and State Governments, Financial
and detecting fraud and other irregularities.
Institutions and Banks, Shareholders, Joint Venture partners and
(iv) The Directors have prepared the annual accounts on a going all other business associates.
concern basis.
CONTRIBUTION FOR EDUCATIONAL CAUSE

For and on behalf of the Board of Directors
Being in the service sector, where talent is a key asset, the Max
New Delhi ANALJIT SINGH
India Group along with three other business groups have joined
JULY 30, 2009 Chairman & Managing Director
hands with Indian School of Business, Hyderabad and Government
1 Standalone.p65 82 8/8/2009, 3:04 PM

MAX INDIA LIMITED
Annexure - ‘A’
PARTICULARS PURSUANT TO COMPANIES (DISCLOSURE OF PARTICULARS IN THE REPORT OF THE BOARD OF DIRECTORS) RULES, 1988
A. CONSERVATION OF ENERGY
a) Energy Conservation measures taken
The Company has taken several steps to conserve energy. Energy conservation continues to be on high priority for existing as
well as new projects. Various steps taken to bring about savings are -
• External audit of BOPP lines from technical cell of leading European based BOPP plant manufacturer.
• To conserve energy, reduce waste & aggressively promote, reuse & recycle of materials adopted the mission pursuing
ecologically sustainable economic growth & signed code for ecologically sustainable business growth evolved by CII.
• Installation of AC drives for Die exhaust fan & cooling tower fans .
• Installation of high efficient electrical motors in plant.
• Conservation of energy by using day light in new BOPP line.
• Reduction in energy consumption by use of cooling tower water instead of chilled water in winter for new BOPP film line.
• Reduction in specific energy consumption of Metalliser by optimizing Metallization Parameters.
• Reduction in Furnace oil consumption of new BOPP line by adopting the best operational practices.
(b) Additional investments and proposals, if any, being implemented for reduction in consumption of energy
New Energy cell being created to identify and implement new Energy saving projects/measures. Highly energy efficient equipments
are being added for upcoming projects.
(c) Impact of measures at (a) and (b) above for reduction of energy consumption and consequent impact on the cost of production
of goods
Above measures will result in reduction in energy consumption and consequent savings in Specific energy consumption per
unit between 5% to 7%.
(d) Total energy consumption and energy consumption per unit of production as per Form A of the Annexure of “Particulars
pursuant to Companies (Disclosure of particulars in the Report of the Board of Directors) Rule 1988
NOT APPLICABLE
B. RESEARCH & DEVELOPMENT, TECHNOLOGY ABSORPTION, ADAPTION AND INNOVATION
I. RESEARCH AND DEVELOPMENT
(a) Research & Development

• The R&D efforts of the company are continuously directed towards development new products, new applications,
quality improvement and product innovation.
• Continuous research, in-house as well as on customer machines, is being carried out . Our constant efforts to develop
new products every year is paying dividends and usage of BOPP film is continuously increasing year after year.
(b) Process Improvement and Development

• Optimization of process parameters of BOPP film lines to enhance efficiencies/ yields.
• Improvement in efficiency of newly developed high value added products
• Process optimization of metallisers to increase production.
• Quality of reprocessed granules being continuously improved.
(c ) Benefits Derived
• Cost competitiveness, effectiveness and high quality products.
• Steady increase in efficiency of machines, productivity and reduction in waste.
• Scientific working has substantially improved the machine utilization, devices, processes, materials, systems and
services.
1 Standalone.p65 83 8/6/2009, 6:37 PM

MAX INDIA LIMITED
Annexure - ‘A’
• Products suitable to ever changing customer needs
(d) Future Plan of Action

• High value added niche products to be continuously added to existing range, every year.
• Efficiency improvement to surpass even international standards.
• To further improve product mix resulting in better value addition.
• To improve further quality and delivery index for top customers.
(e) Expenditure on R & D

• Capital : ‘Nil’
• Recurring : Rs. 16.51 lacs
• Total : Rs. 16.51 lacs
• R&D expenditure : 0.05%
as % of net sales
II. TECHNOLOGY ABSORPTION, ADAPTION AND INNOVATION
(A) EFFORTS MADE TOWARDS TECHNOLOGY ABSORPTION, ADAPTION AND INNOVATION

Company has in- house development and R & D cell which perpetually develops new products. These products are commercialized
after successful trials at customer end.
(B) BENEFITS DERIVED AS A RESULT OF ABOVE EFFORTS
New developments as per customer’s requirements further result in product mix optimization & higher margins.
(C ) INFORMATION ABOUT IMPORTED TECHNOLOGY IN LAST 5 YEARS
BOPP and Foil Business did not import any technology in the last 5 years.
C. FOREIGN EXCHANGE EARNING AND OUTGO
(a) Activities Relating to Exports

• Enhanced Focus to increase exports of high-value-added films.
• Increased presence in European market and exploring market in USA for thermal films.
• Increasing presence in Asian countries, specially Middle-East region.
• During 2008-09, exports of BOPP Including thermal films have increased by 10%
(b) TOTAL FOREIGN EXCHANGE EARNED AND USED
(Rs. lacs)
March 2009 March 2008
Earnings 6,557.51 6,273.69
Outgo 6,721.88 5,353.88
For and on behalf of Board of Directors

1 Standalone.p65 84 8/6/2009, 6:37 PM

PARTICULARS OF EMPLOYEES
INFORMATION AS PER SECTION 217 (2A) READ WITH THE COMPANIES (PARTICULARS OF EMPLOYEES) RULES, 1975 AND FORMING PART OF THE DIRECTORS’ REPORT
1 Standalone.p65
FOR THE YEAR ENDED MARCH 31, 2009
Sr. Name Age Designation Nature of duties Remuneration Qualification Date of Experience Last Employment Held
No. (Yrs.) (In Rs.) Commencement (Yrs.) Organisation Designation
of employment
A. Employed throughout the year and were in receipt of remuneration of not less than Rs. 24,00,000/- per annum
1 Dwarakanath, P. 61 Director - Group Human Capital Group Human Resources 9,015,600 B. Sc., L.L.B., 02.04.2007 40 Glaxo SmithKline Director-Human
PGDM (PM & IR) Consumer Healthcare Resources &
Administration (India/
South Asia)
85
2 Kaushik, P. K. 58 Chief Operating Officer - Leather Finishing Foil Operations 4,292,653 B. Sc., LPRI 09.10.1989 37 SRF Ltd. Senior Chemist
Annexure - ‘B’
3 Krishnan V. 45 Company Secretary Company Law Matters 2,679,311 B. Com, ACS 18.06.2003 20 Self Employed
4 Manohar K. 43 Sr. General Manager - Operations Operations 2,563,119 BE (Chemicals) 26.09.1990 23 Ester Industries Ltd. Production Engineer
5 Mathur, S. K. 56 Chief Executive - BOPP Operations 6,743,579 B.Tech, PGDBM 06.10.2005 33 Ester Industries Ltd. Vice President -
Marketing
6 Ratnam, Sujatha 45 Chief Financial Controller Corporate Finance/ 5,722,184 B. Com (Hons), 12.07.2004 20 Jubilant Orgnosys Ltd. General Manager -
Accounts & Treasury ACA Finance
7 Singh, Analjit 55 Chairman & Managing Director General Management 48,178,090 BA, BS, MBA 30.10.2001 31 Max UK Ltd. Chairman
(Boston)
8 Singh, Dalbir 50 Vice President - Finance & Commercial Finance & Commercial 3,720,283 B.Com, ACA, 26.09.1989 26 Swaraj Majda Ltd. Senior Officer Finance
ACS & Accounts
9 Talwar, Mohit 49 Director - Corporate Development Business Development 13,141,795 Post Graduate 01.11.2007 30 Standard Chartered Bank Director & Head
(Arts), Post Wholesale Bank,
Max India Limited

Graduate East India

(Hospitality
Management)
B. Employed for part of the year and were in receipt of remuneration of not less than Rs. 2,00,000/- per month
10 Anantharaman, B. 54 Jt. Managing Director General Management 27,274,672 B.Com, FCA, 07.02.2001 30 Indo Rama Synthetics President & Chief
FICWA, FCS India Ltd. Financial Officer
11 Basur, Neeraj 40 Sr. Vice President - Corporate Finance Corporate Finance & Accounts 7,110,869 M.Com, ACA, 01.05.2002 17 HCL Technologies Ltd. Sr. Manager - Corporate
ACS Finance
12 Nagar, Prabhat 53 Vice President - Legal Legal Matters 2,294,361 B. Com, L.L.B. 17.08.2004 30 EIH Ltd. Assistant Vice President -
Legal Affairs
13 Raghu C. V. 46 Director - Legal & Regulatory Affairs Legal Matters 7,962,681 Bachelor of 30.07.2008 19 American Express VP & Group Counsel
Science & Law, Banking Corp, General India & Area Countries
PGD IR & PM Counsel’s Office
14 Sharma, Rajan 44 Vice President - HR Corporate HR & Administration 3,443,849 Masters in 07.07.2004 20 Hero Corporate Vice President - HR
Personnel Service Ltd.
ANNUAL REPORT 2008-09 85

Management
& Industrial
Relations
8/6/2009, 6:37 PM
15 Sibal, Rajni Sekhri 49 Director - Health Insurance Health Insurance 4,019,724 MA in Economics 22.03.2007 23 LBS National Academy of Sr. Deputy Director
& Psychology Administration
(Govt of India)
16 Sud Kirti Madhok 54 Director - Corporate Support, Chairman’s Office Corporate Support, Chairman’s 3,744,452 B.A. (Hons), MBA 01.04.2008 28 Amway India Enterprises Independent Business
Office Owner
Notes :
1 Remuneration includes salary, allowances, value of rent free accommodation, bonus, medical reimbursement, leave travel assistance, personal accident and health insurance, Company’s contribution to Provident, Pension, Gratuity and
Superannuation fund, leave encashment and monetary value of perquisites.
2 None of the above employees is a relative of any director of the Company.
3 The services of Mr. Analjit Singh and Mr. B. Anantharaman are contractual in nature.
4 Mr. Analjit Singh holds by himself and along-with his spouse and dependent children 2.19% of the Equity Shares of the Company as of the date of this report.
On behalf of the Board of Directors
MAX INDIA LIMITED
MAX INDIA LIMITED
Auditors’ Report
TO THE MEMBERS OF MAX INDIA LIMITED (c) On the basis of our examination of the inventory
1. We have audited the attached Balance Sheet of Max India records, in our opinion, the Company is maintaining
Limited, as at March 31, 2009, and the related Profit and Loss proper records of inventory. The discrepancies
Account and Cash Flow Statement for the year ended on that noticed on physical verification of inventory as
date annexed thereto, which we have signed under reference compared to book records were not material.
to this report. These financial statements are the responsibility (iii) (a) The Company has not granted any loans, secured or
of the Company’s management. Our responsibility is to express unsecured, to companies, firms or other parties
an opinion on these financial statements based on our audit. covered in the register maintained under Section 301
2. We conducted our audit in accordance with the auditing of the Act.
standards generally accepted in India. Those Standards require (b) The Company has not taken any loans, secured or
that we plan and perform the audit to obtain reasonable unsecured, from companies, firms or other parties
assurance about whether the financial statements are free of covered in the register maintained under Section 301
material misstatement. An audit includes examining, on a test of the Act.
basis, evidence supporting the amounts and disclosures in the (iv) In our opinion and according to the information and
financial statements. An audit also includes assessing the explanations given to us, having regard to the
accounting principles used and significant estimates made by explanation that certain items purchased are of special
management, as well as evaluating the overall financial nature for which suitable alternative sources do not
statement presentation. We believe that our audit provides a exist for obtaining comparative quotations, there is
reasonable basis for our opinion. an adequate internal control system commensurate
3. As required by the Companies (Auditor’s Report) Order, 2003, with the size of the Company and the nature of its
as amended by the Companies (Auditor’s Report) (Amendment) business for the purchase of inventory, fixed assets
Order, 2004, issued by the Central Government of India in terms and for the sale of goods and services. Further, on the
of sub-section (4A) of Section 227 of ‘The Companies Act, basis of our examination of the books and records of
1956’ of India (the ‘Act’) and on the basis of such checks of the Company, and according to the information and
the books and records of the Company as we considered explanations given to us, we have neither come across
appropriate and according to the information and explanations nor have been informed of any continuing failure to
given to us, we further report that: correct major weaknesses in the aforesaid internal
(i) (a) The Company is maintaining proper records showing control system.
full particulars including quantitative details and (v) According to the information and explanations given to
situation of fixed assets. us, there have been no contracts or arrangements referred
(b) The fixed assets are physically verified by the to in Section 301 of the Act during the year to be entered
management according to a phased programme in the register required to be maintained under that Section.
designed to cover all the items over a period of three Accordingly, commenting on transactions made in
years, which in our opinion, is reasonable having pursuance of such contracts or arrangements does not arise.
regard to the size of the Company and the nature of (vi) The Company has not accepted any deposits from the
its assets. Pursuant to the programme, a portion of public within the meaning of Sections 58A and 58AA
the fixed assets has been physically verified by the of the Act and the rules framed there under.
management during the year and no material (vii) In our opinion, the Company has an internal audit system
discrepancies between the book records and the commensurate with its size and nature of its business.
physical inventory have been noticed.
(viii) The Central Government of India has not prescribed
(c) In our opinion and according to the information and the maintenance of cost records under clause (d) of
explanations given to us, a substantial part of fixed sub-section (1) of Section 209 of the Act for any of
assets has not been disposed of by the Company the products of the Company.
during the year.
(ix) (a) According to the information and explanations
(ii) (a) The inventory (excluding stocks with third parties) has given to us and the records of the Company
been physically verified by the management during examined by us, in our opinion, the Company is
the year. In respect of inventory lying with third parties, regular in depositing the undisputed statutory
these have substantially been confirmed by them. In dues including provident fund, investor
our opinion, the frequency of verification is reasonable. education and protection fund, employees’ state
(b) In our opinion, the procedures of physical verification insurance, income-tax, sales-tax, wealth tax,
of inventory followed by the management are service tax, customs duty, excise duty, cess and
reasonable and adequate in relation to the size of other material statutory dues as applicable with
the Company and the nature of its business. the appropriate authorities.
1 Standalone.p65 86 8/6/2009, 6:37 PM

MAX INDIA LIMITED
Auditors’ Report
(b) According to the information and explanations (xxi) During the course of our examination of the books
given to us and the records of the Company and records of the Company, carried out in accordance
examined by us, the particulars of dues of with the generally accepted auditing practices in India,
income-tax, sales-tax, wealth tax, service tax, and according to the information and explanations
customs duty, excise duty and cess as at March given to us, we have neither come across any instance
31, 2009 which have not been deposited on of fraud on or by the Company, noticed or reported
account of a dispute, are disclosed in Notes 1(d) during the year, nor have we been informed of such
and 4 on Schedule 22B. case by the management.
(x) The Company has no accumulated losses as at March 4. Further to our comments in paragraph 3 above, we report that:
31, 2009 and it has not incurred any cash losses in (a) We have obtained all the information and
the financial year ended on that date or in the explanations, which to the best of our knowledge and
immediately preceding financial year. belief were necessary for the purposes of our audit;
(xi) According to the records of the Company examined (b) In our opinion, proper books of account as required by
by us and the information and explanation given to law have been kept by the Company so far as appears
us, the Company has not defaulted in repayment of from our examination of those books;
dues to any financial institution or bank or debenture
holders as at the balance sheet date. (c) The Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report are in
(xii) The Company has not granted any loans and advances agreement with the books of account;
on the basis of security by way of pledge of shares,
debentures and other securities. (d) In our opinion, the Balance Sheet, Profit and Loss
Account and Cash Flow Statement dealt with by this
(xiii) The provisions of any special statute applicable to chit report comply with the accounting standards referred
fund / nidhi / mutual benefit fund/societies are not to in sub-section (3C) of Section 211 of the Act;
applicable to the Company.
(e) On the basis of written representations received from
(xiv) In our opinion, the Company has maintained proper the directors, as on March 31, 2009 and taken on
records of transactions and contracts relating to record by the Board of Directors, none of the directors
dealing or trading in shares, securities, debentures and is disqualified as on March 31, 2009 from being
other investments during the year and timely entries appointed as a director in terms of clause (g) of sub-
have been made therein. Further, such securities have section (1) of Section 274 of the Act;
been held by the Company in its own name.
(f) In our opinion and to the best of our information and
(xv) In our opinion and according to the information and according to the explanations given to us, the said
explanations given to us, the terms and conditions of financial statements together with the notes thereon
the guarantees given by the Company, for loans taken and attached thereto give in the prescribed manner
by others from banks or financial institutions during the information required by the Act and give a true
the year, are not prejudicial to the interest of the and fair view in conformity with the accounting
Company. principles generally accepted in India:
(xvi) In our opinion, and according to the information and (i) in the case of the Balance Sheet, of the state of
explanations given to us, on an overall basis, the term affairs of the Company as at March 31, 2009;
loans have been applied for the purposes for which
they were obtained. (ii) in the case of the Profit and Loss Account, of
the profit for the year ended on that date; and
(xvii) On the basis of an overall examination of the balance
sheet of the Company, in our opinion and according (iii) in the case of the Cash Flow Statement, of the
to the information and explanations given to us, there cash flows for the year ended on that date.
are no funds raised on a short-term basis which have
been used for long-term investment.
(xviii) The Company has not made any preferential allotment
of shares to parties and companies covered in the V. NIHAWAN
register maintained under Section 301 of the Act Partner
during the year. Membership Number F 87228
(xix) There are no debentures outstanding as at the year end. For and on behalf of
(xx) The Company has not raised any money by public issues Gurgaon Price Waterhouse
during the year. JUNE 26, 2009 Chartered Accountants
1 Standalone.p65 87 8/6/2009, 6:37 PM

MAX INDIA LIMITED
Balance Sheet as at March 31, 2009

(RS. LACS)
Schedule As at As at
March 31, 2009 March 31, 2008
SOURCES OF FUNDS
SHAREHOLDERS’ FUNDS
Share Capital 1 4440.61 4434.85
Reserves and Surplus 2 201794.77 199943.43
206235.38 204378.28
LOAN FUNDS
Secured Loans 3 10058.75 12133.93
Unsecured Loans 4
- Loans 82.61 85.98
- Advance from Others - 17420.55
10141.36 29640.46
Deferred Tax Liability (Net) 5 - 1200.14
216376.74 235218.88
APPLICATION OF FUNDS
FIXED ASSETS 6
Gross Block 24921.16 23754.60
Less: Depreciation 7493.83 6346.71
Net Block 17427.33 17407.89
Capital Work in Progress 2560.05 521.54
19987.38 17929.43
INVESTMENTS 7 169030.46 206453.55
CURRENT ASSETS, LOANS AND ADVANCES
Inventories 8 2804.31 2760.86
Sundry Debtors 9 5289.74 6152.47
Cash and Bank Balances 10 16633.20 757.19
Other Current Assets 11 49.93 -
Loans and Advances 12 6668.06 5750.58
31445.24 15421.10
Less: CURRENT LIABILITIES AND PROVISIONS
Current Liabilities 13 3308.49 3961.93
Provisions 14 837.88 893.96
4146.37 4855.89
NET CURRENT ASSETS 27298.87 10565.21
MISCELLANEOUS EXPENDITURE 15 60.03 270.69
(To the extent not written off or adjusted)
216376.74 235218.88
SIGNIFICANT ACCOUNTING POLICIES AND NOTES TO THE ACCOUNTS 22
The Schedules referred to above form an integral part of the Balance Sheet For and on behalf of the Board of Directors
This is the Balance Sheet referred to in our report of even date
V. NIJHAWAN ANALJIT SINGH Chairman & Managing Director
Partner N. RANGACHARY Director
Membership No. F 87228 ASHWANI WINDLASS Director
For and on behalf of SUJATHA RATNAM Chief Financial Controller
Price Waterhouse V. KRISHNAN Company Secretary
Chartered Accountants
Gurgaon New Delhi
JUNE 26, 2009 JUNE 26, 2009
1 Standalone.p65 88 8/6/2009, 6:37 PM

MAX INDIA LIMITED
Profit and Loss Account for the year ended March 31, 2009
(RS. LACS)
Schedule For the Year Ended For the Year Ended
March 31, 2009 March 31, 2008
INCOME
Sales 39349.42 32299.22
Less: Sales Return (367.72) (398.81)
Excise Duty (3606.19) (3470.99)
35375.51 28429.42
Income from Investment Activities 16 4719.98 6917.96
Other Income 17 1896.98 2188.90
41992.47 37536.28
INCREASE/(DECREASE) IN INVENTORY 18 (18.87) 503.49
41973.60 38039.77
EXPENDITURE
Manufacturing and Other Expenses 19 35839.22 28909.85
Financial Expenses 20 1624.83 1459.52
Depreciation 6 1205.99 1138.92
38670.04 31508.29
PROFIT FROM OPERATIONS 3303.56 6531.48
Diminution in value of Investments and Doubtful Advances to Subsidiary 2262.17 -
(Refer Note B32 on Schedule 22)
PROFIT BEFORE TAX 1041.39 6531.48
Tax Expense 21 (1142.08) 341.02
PROFIT AFTER TAX 2183.47 6190.46
PROFIT BROUGHT FORWARD 66533.48 60343.02
BALANCE CARRIED FORWARD TO THE BALANCE SHEET 68716.95 66533.48
Earnings Per Share (Rs. per equity share of Rs. 2/- each)
- Basic 0.98 2.90
- Diluted 0.98 2.90
Number of Shares used in computing earnings per share
- Basic 22,19,98,514 21,31,18,796
- Diluted 22,21,22,712 21,37,72,230
The Schedules referred to above form an integral part of the For and on behalf of the Board of Directors
Profit and Loss Account
This is the Profit and Loss Account referred to in our report of even date
Gurgaon New Delhi

JUNE 26, 2009 JUNE 26, 2009
1 Standalone.p65 89 8/6/2009, 6:37 PM

MAX INDIA LIMITED
Cash Flow Statement for the year ended March 31, 2009
(RS. LACS)
March 31, 2009 March 31, 2008
A. CASH FLOW FROM OPERATING ACTIVITIES:
NET PROFIT BEFORE TAX 1041.39 6531.48
Adjustment for
Miscellaneous Expenditure Written Off - 0.31
ESOP Lapsed Written Back (180.82) -
ESOP Compensation Expense 59.35 362.36
Net Loss on Sale of Fixed Assets 44.54 22.98
Net Profit on Sale of Investments (13.32) (30.37)
Fixed Assets and Spares Written Off 2.87 0.40
Debit Balances Written Off 2.81 0.11
Provision for Doubtful Debts and Advances 99.69 20.50
Diminution in value of Investments and Doubtful Advances to Subsidiary 2262.17 -
Stocks Written Off - 0.16
Provision for Leave Encashment 66.12 42.41
Provision for Gratuity 62.06 66.24
Interest Expense 1537.61 1393.51
Interest Income (800.57) (174.20)
Dividend Income From Non Trade Investments-Current (3906.09) (6713.39)
Liability/Provision no Longer Required Written Back (245.54) (15.30)
Unrealised Foreign Exchange (Gain)/Loss 8.81 25.85
TDS on Service/Other Operating Income (2.59) (7.13)
OPERATING PROFIT BEFORE WORKING CAPITAL CHANGES 1244.48 2664.84
Adjustment for
Trade and Other Receivables (1949.26) (4334.36)
Inventories (43.46) (1427.25)
Trade Payables (651.09) 1435.57
CASH GENERATED FROM/(USED IN) OPERATIONS (1399.33) (1661.20)
Income Tax Refunded/(Paid) - 21.16
Fringe Benefit Tax (Paid) (59.88) (188.04)
Wealth Tax (Paid) (1.48) (1.24)
CASH FROM/(USED IN) OPERATING ACTIVITIES (1460.69) (1829.32)
B. CASH FLOW FROM INVESTING ACTIVITIES
Investments made (Others) (228905.32) (393624.96)
Sale of Investments 265893.86 293029.58
Purchase of Fixed Assets (3066.07) (3135.60)
Sale of Fixed Assets 21.83 30.99
Interest Received (Net) 572.26 137.76
Dividend Income From Non Trade Investments-Current 3906.09 6713.39
CASH FROM/(USED IN) INVESTMENT ACTIVITIES 38422.65 (96848.84)
1 Standalone.p65 90 8/6/2009, 6:37 PM

MAX INDIA LIMITED
(RS. LACS)
March 31, 2009 March 31, 2008
C. CASH FLOW FROM FINANCING ACTIVITIES
Issue of Shares to QIBs - 99999.98
Shares Issue Expenses - (2069.59)
ESOPs Excercised 5.76 3.48
Capital Subsidy received - 50.00
Interest Paid (1592.61) (1437.34)
Proceeds from Long Term Loans 15.96 1725.33
Repayment of Long Term Loans (2205.05) (1226.88)
Proceeds/(Repayment) of Short Term Borrowings (Net) 110.54 1575.41
Refund of Other Advances Received (17420.55) -
CASH FROM/(USED IN) FINANCING ACTIVITIES (21085.95) 98620.39
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS 15876.01 (57.77)
CASH AND CASH EQUIVALENTS - OPENING BALANCE 757.19 814.96
CASH AND CASH EQUIVALENTS - CLOSING BALANCE 16633.20 757.19
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS 15876.01 (57.77)
Notes
1. The above Cash Flow statement has been prepared under the “Indirect Method” as set out in the Accounting Standard-3 on Cash
Flow Statements issued by the Institute of Chartered Accountants of India.
2. Cash and Cash Equivalents at the end of the year consist of Cash and Stamps in Hand, Fixed Deposits and Balances with Banks:
As at As at
March 31, 2009 March 31, 2008
Cash in Hand 4.61 4.25

Stamps in Hand 0.18 0.20
Cheques in Hand - 10.20
Fixed Deposits 4000.00 -
Balances with Banks * 5499.53 742.54
Remitance in Transit 7128.88 -
16633.20 757.19
* Includes Rs. 12.82 Lacs (Previous year Rs. 23.89 Lacs) not available for use by the Company.
3. Previous year’s figures have been regrouped / reclassified wherever necessary to conform to current year’s classification.
Cash Flow Statement
This is the Cash Flow Statement referred to in our report of even date
Gurgaon New Delhi

JUNE 26, 2009 JUNE 26, 2009
1 Standalone.p65 91 8/6/2009, 6:37 PM

MAX INDIA LIMITED
Schedules annexed to and forming part of the accounts

(RS. LACS)
As at As at
March 31, 2009 March 31, 2008
SCHEDULE-1
SHARE CAPITAL
AUTHORISED
46,00,00,000 Equity Shares of Rs. 2/- each
(Previous year 46,00,00,000 Equity Shares of Rs. 2/- each) 9200.00 9200.00
8,00,000 Preference Shares of Rs. 100/- each
(Previous year 8,00,000 Preference Shares of Rs. 100/- each) 800.00 800.00
10000.00 10000.00
ISSUED, SUBSCRIBED AND PAID UP
(Refer Notes A9, B6 and B9 on Schedule 22)
22,20,30,310 Equity Shares of Rs. 2/- each fully paid up
(Previous year 22,17,42,545 Equity Shares of Rs. 2/- each fully paid up) 4440.61 4434.85
4440.61 4434.85
Paid up Share Capital includes:
- 5,76,60,400 Equity Shares of Rs. 2/- each (Previous year 5,76,60,400 Equity Shares of Rs. 2/- each)
allotted as fully paid up by way of bonus shares out of Securities Premium Account; and
- 14,49,925 Equity Shares of Rs. 2/- each (Previous year 11,62,160 Equity Shares of Rs. 2/- each)
allotted under employees stock option plan
SCHEDULE-2
RESERVES AND SURPLUS
(Refer Notes A8, A9, B6, B9, B15, B24, B25 and B30 on Schedule 22)
Capital Reserve
Opening Balance 50.00 -
Additions during the year - 50.00
Closing Balance 50.00 50.00
Securities Premium Account
Opening Balance 123588.13 26241.52
Additions during the year 414.46 99416.20
Deletions/utilisations during the year - 2069.59
Employee Stock Option Outstanding
Additions during the year 73.39 -
Deletions/utilisations during the year 819.98 249.55
General Reserve
201794.77 199943.43
1 Standalone.p65 92 8/6/2009, 6:37 PM

MAX INDIA LIMITED

(RS. LACS)
As at As at
March 31, 2009 March 31, 2008
SCHEDULE-3
SECURED LOANS
Loans and Advances From Banks

- Term Loan * 7228.57 9414.29
- Fund Based Working Capital Facilities 2830.18 2719.64
10058.75 12133.93
* Amount repayable within one year Rs. 1885.71 Lacs (Previous year Rs. 3185.71 Lacs)
SCHEDULE-4
UNSECURED LOANS
Other Loans
From Banks ** 82.61 85.98
Advances from Others - 17420.55
82.61 17506.53
** Amount repayable to banks within one year Rs. 32.54 Lacs (Previous year Rs. 30.78 Lacs)
SCHEDULE-5
DEFERRED TAX LIABILITY (NET)
Deferred Tax Liability

Movement during the year 201.20 137.20
Deferred Tax (Asset)

Opening Balance (554.75) (512.80)
Impact of transitional liabililty on employee benefits - (54.16)
Movement during the year (1401.34) 12.21
Closing Balance (1956.09) (554.75)
Net Deferred Tax Liability - 1200.14
1 Standalone.p65 93 8/6/2009, 6:37 PM

MAX INDIA LIMITED

SCHEDULE-6
FIXED ASSETS
(Refer Notes A3, A4, A5 and B2 on Schedule 22) (RS. LACS)
Gross Block Depreciation Net Block
Particulars As at Additions Deletions/ As at As at Additions Deletions/ As at As at As at
April 1, Adjustments March 31, April 1, Adjustments March 31, March 31, March 31,
2008 2009 2008 2009 2009 2008
Tangible Assets
Land (Freehold) 82.62 127.26 - 209.88 - - - - 209.88 82.62
Building 2836.74 271.59 - 3108.33 480.29 94.23 - 574.52 2533.81 2356.45
Leasehold Improvements 355.51 - - 355.51 320.33 35.18 - 355.51 - 35.18
Plant and Machinery 19210.77 712.72 - 19923.49 4877.49 975.07 - 5852.56 14070.93 14333.28
Furniture, Fittings and
Equipments 761.75 73.52 45.06 790.21 486.97 49.43 31.77 504.63 285.58 274.78
Vehicles 321.68 96.65 83.05 335.28 72.26 29.38 27.10 74.54 260.74 249.42
Intangible Assets
Software 185.53 12.93 - 198.46 109.37 22.70 - 132.07 66.39 76.16
Total 23754.60 1294.67 128.11 24921.16 6346.71 1205.99 58.87 7493.83 17427.33 17407.89
Previous year 22017.07 1852.89 115.36 23754.60 5268.78 1138.92 60.99 6346.71
19987.38 17929.43
Notes :
1. Additions include:
- Interest capitalised Nil (Previous year Rs. 32.73 Lacs).
- Pre-Operative expenses capitalised Rs. 26.64 Lacs (Previous year Rs. 185.94 Lacs).
- Foreign Exchange Fluctuations Nil (Previous year Rs. 41.27 Lacs).
2. Leasehold Improvements represents civil and other improvements at Company’s leased premises.
3. Plant and Machinery includes an amount of Rs. 135.08 Lacs (Previous year Rs. 135.08 Lacs) paid to PSEB for drawing a power line representing assets not owned by the
Company. The same has been depreciated over a period of five years.
4. The above includes vehicles hypothecated amounting to Rs. 176.48 Lacs (Previous year Rs. 125.78 Lacs).
5. Capital Work in Progress includes:
- Pre-Operative expenses pending allocation and capitalisation Rs. 114.06 Lacs (Previous year Rs. 0.98 Lacs).
- Capital Advance Rs. 118.31 Lacs (Previous year Rs. 91.01 Lacs).
(RS. LACS)
As at As at
March 31, 2009 March 31, 2008
SCHEDULE-7
INVESTMENTS
(Refer Notes A6, B8, B16, B24 and B32 on Schedule 22)
a) Long Term-Trade (Unquoted), at cost
Subsidiaries
Equity Shares 157031.75 101531.75
Less: Provision for Diminution (3686.73) 153345.02 (3238.86)
Preference Shares 1505.00 1505.00
b) Long Term-Non Trade (Quoted), at cost
Equity Shares 0.65 0.65
c) Current Non Trade (Unquoted), at cost
Units in Mutual Fund
- Unutilised monies raised through placement to QIBs 2009.84 75730.39
- Others 12169.95 14179.79 30924.62
169030.46 206453.55
Aggregate value of unquoted investments 169029.81 206452.90
Aggregate value of quoted investments 0.65 0.65
Market value of quoted investments 0.83 1.92
1 Standalone.p65 94 8/6/2009, 6:37 PM

MAX INDIA LIMITED

(RS. LACS)
As at As at
March 31, 2009 March 31, 2008
SCHEDULE-8
INVENTORIES
(Refer Notes A7 and B22 on Schedule 22)
Manufacturing and Trading Activities

Raw Materials in Stores/Transit 1577.01 1582.05
Stores and Spares 455.41 388.05
Work in Process 579.29 625.19
Finished Goods 192.60 165.57
2804.31 2760.86
SCHEDULE-9
SUNDRY DEBTORS
(Unsecured)
Debts exceeding six months:
Considered Good 0.92 11.89
Considered Doubtful 268.98 194.54
Less: Provision for Doubtful Debts (268.98) (194.54)
0.92 11.89
Other Debts
Considered Doubtful 22.89 -
Less: Provision for Doubtful Debts (22.89) -
5289.74 6152.47
SCHEDULE-10
CASH AND BANK BALANCES
Cheques in Hand - 10.20
Remitance in Transit * 7128.88 -
Balances with Scheduled Banks:
In Current Accounts 5486.71 718.65
In Dividend Accounts - 9.10
In Debenture Interest Accounts 12.82 14.79
In Fixed Deposit Account 4000.00 -
16633.20 757.19
* Represents amounts receivable against redemption of units in mutual funds
SCHEDULE-11
OTHER CURRENT ASSETS
Interest Receivable
Considered Good 49.93 -
Less: Provision for Doubtful Interest (23.53) (23.53)
49.93 -
Amounts due from companies under the same management
- Pharmax Corporation Limited 49.54 -
Maximum amount outstanding during the year from companies under the same management
- Pharmax Corporation Limited 61.18 -
1 Standalone.p65 95 8/6/2009, 6:37 PM

MAX INDIA LIMITED

(RS. LACS)
As at As at
March 31, 2009 March 31, 2008
SCHEDULE-12
LOANS AND ADVANCES
(Considered good, unless otherwise stated)
Secured
Housing Loans 4.18 4.89
Unsecured
Subsidiary Companies
- Advances 1337.75 1058.89
- Loans
Less: Provision for Doubtful Loans (2479.43) 896.97 (665.14)
- Inter Corporate Deposits 1138.00 358.00
- Security Deposit 120.80 58.02
Share Application Money Pending Allotment
- Subsidiary companies 723.25 723.25
- Companies under the same management 800.00 -
Others
- Advances recoverable in cash or in kind
or for value to be received
Less: Provision for Doubtful Advances (304.35) 1192.73 (305.42)
- Loans to Employees 19.25 15.61
- Inter Corporate Deposits
Less: Provision for Doubtful Deposits (441.60) - (441.60)
- Balance with Excise Authorities 270.58 200.06
- Prepaid Expenses 34.23 34.19
- Security Deposits 130.32 116.51
6668.06 5750.58
Amount due from directors (Refer Note B11 on Schedule 22) - 622.36
Maximum amount outstanding during the year from directors 807.87 622.36
Amounts due from subsidiaries

- Max Healthcare Institute Ltd. 1225.91 962.57
- Max New York Life Insurance Co. Ltd. 10.73 3.75
- Pharmax Corporation Ltd. 1267.33 416.02
- Max Ateev Ltd. 674.06 675.40
- Max Neeman Medical International Ltd. 888.06 660.84
- Max HealthStaff International Ltd. 1814.29 1626.74
- Neeman Medical International NV 92.57 92.57
- Neeman Medical International BV 723.25 723.25
1 Standalone.p65 96 8/6/2009, 6:37 PM

MAX INDIA LIMITED

(RS. LACS)
As at As at
March 31, 2009 March 31, 2008
Maximum amount outstanding during the year from subsidiaries
- Max Healthcare Institute Ltd. 1234.05 1156.65
- Max New York Life Insurance Co. Ltd. 22.38 11.06
- Pharmax Corporation Ltd. 5703.59 416.02
- Max Ateev Ltd. 676.62 675.76
- Neeman Medical International NV 92.57 92.57
- Neeman Medical International BV 723.25 723.25
- Max BUPA Health Insurance Ltd. 985.16 -
SCHEDULE-13
CURRENT LIABILITIES
Acceptances - 26.88
Sundry Creditors
Total outstanding dues of micro enterprises and small enterprises* 79.70 -
Total outstanding dues of creditors other than micro enterprises
and small enterprises 3010.11 3718.90
Subsidiary Companies 17.06 -
Investor Education and Protection Fund
Unpaid Dividend - 9.10
Unpaid Debenture Interest 10.24 12.19
Other Liabilities 167.82 116.29
Interest Accrued but not Due 23.56 78.57
3308.49 3961.93
* As certified by the management
SCHEDULE-14
PROVISIONS
(Refer Notes A10, A11 and B15 on Schedule 22)
Leave Encashment 260.85 194.73

Gratuity 320.16 258.10
Provision for Wealth Tax 1.63 1.48
Provision for Fringe Benefit Tax * 322.84 266.41
Less: Advance Fringe Benefit Tax * (324.89) (2.05) (265.01)
Provision for Income Tax 5511.07 5511.06

Less: Advance Income Tax (5253.78) 257.29 (5072.81)
837.88 893.96
* Does not include Rs. 152.19 Lacs paid by the Company against FBT on ESOP and recovered from the employees
SCHEDULE-15
MISCELLANEOUS EXPENDITURE
Deferred Employee Compensation 60.03 270.69

60.03 270.69
1 Standalone.p65 97 8/6/2009, 6:37 PM

MAX INDIA LIMITED

(RS. LACS)
For the Year Ended For the Year Ended
March 31, 2009 March 31, 2008
SCHEDULE-16
INCOME FROM INVESTMENT ACTIVITIES
Dividend Income From Non Trade Investments-Current 3906.09 6713.39

Interest (Gross) on: *
- Inter Corporate Deposits 287.15 26.85
- Fixed Deposits 502.35 136.40
- Others 11.07 800.57 10.95
Net Profit on Sale of Non Trade Investments-Current 13.32 30.37

4719.98 6917.96
* Tax deducted at source Rs. 178.38 Lacs (Previous year Rs. 36.44 Lacs)
SCHEDULE-17
OTHER INCOME
Job Work Charges* 20.11 133.29
Liabilities/Provisions No Longer Required Written Back 245.54 15.30
Gain on Foreign Exchange Fluctuation - 207.21
Less: Loss on Foreign Exchange Fluctuation - (82.85)
Miscellaneous Income 1631.33 1915.95
1896.98 2188.90
SCHEDULE-18
INCREASE/(DECREASE) IN INVENTORY
Opening Stock
790.76 287.27
Less: Closing Stock
771.89 790.76
Net Increase/(Decrease) (18.87) 503.49
1 Standalone.p65 98 8/6/2009, 6:37 PM

MAX INDIA LIMITED

(RS. LACS)
March 31, 2009 March 31, 2008
SCHEDULE-19
MANUFACTURING AND OTHER EXPENSES
Manufacturing
Raw Materials Consumed 23338.53 19117.82
Goods Purchased for Resale 1.50 -
Excise Duty on Scrap and Others 164.49 265.01
Power and Fuel 2317.13 2055.62
Stores and Spares Consumed 469.89 386.55
Packing Material 1051.67 888.58
Freight Inward 45.08 40.63
Repairs and Maintenance-Plant and Machinery 153.12 98.54
Processing Charges 46.63 90.80
27588.04 22943.55
Personnel
Salaries, Wages and Bonus * 3333.30 2405.39
Contribution to Provident and Other Funds 221.28 207.80
Recruitment 62.36 73.58
Staff Welfare 107.99 93.12
3724.93 2779.89
* Net of employee compensation expenses written back amounting to Rs. 180.82 Lacs
(Previous year Nil) pertaining to earlier years
Administration and others

Rent 223.33 203.83
Insurance 78.01 86.22
Rates and Taxes 14.44 82.30
Repairs and Maintenance:
Building 41.66 27.70
Others 352.72 205.06
Electricity and Water 37.69 33.16
Printing and Stationery 67.43 56.16
Travelling and Conveyance 721.61 530.33
Communication 79.10 70.42
Legal and Professional 739.59 419.25
Directors’ Fee 16.44 8.90
Business Promotion 65.35 75.42
Commission 81.14 93.93
Trade Discount 476.53 324.33
Selling and Distribution 1116.40 988.07
Advertisement and Publicity 24.81 56.83
Loss on Sale/Disposal of Fixed Assets 44.60 23.00
Less: Profit on Sale/Disposal of Fixed Assets (0.06) 44.54 (0.02)
Charity and Donation 196.29 200.70
Stock Written Off - 0.16
Amortisation of Miscellaneous Expenditure - 0.31
Loss on Foreign Exchange Fluctuation 355.18 -
Less: Profit on Foreign Exchange Fluctuation (309.79) 45.39 -
Miscellaneous 349.26 55.47
Less: Overheads Recovery** (Refer Note B27 on Schedule 22) (350.85) (376.13)
4526.25 3186.41
35839.22 28909.85
** Tax Deducted at source Rs. 2.13 Lacs (Previous year Rs. 2.58 Lacs)
1 Standalone.p65 99 8/6/2009, 6:37 PM

MAX INDIA LIMITED

(RS. LACS)
March 31, 2009 March 31, 2008
SCHEDULE-20
FINANCIAL EXPENSES
Interest on:
Term Loans 1031.66 1097.19
Acceptances 32.02 41.54
Working Capital Facilities 369.02 247.06
Others 104.91 7.72
Bank Charges 63.27 58.20
Finance Charges 23.95 7.81
1624.83 1459.52
SCHEDULE-21
TAX EXPENSE
Current Year Tax

Wealth Tax 1.63 1.48
Fringe Benefit Tax 56.43 190.13
Deferred Tax (1200.14) 149.41
(1142.08) 341.02
1 Standalone.p65 100 8/6/2009, 6:37 PM

MAX INDIA LIMITED

SCHEDULE - 22
A. SIGNIFICANT ACCOUNTING POLICIES
1 Accounting Convention
The Financial Statements are prepared to comply in all material aspects with the applicable accounting principles in India, the
applicable accounting standards notified u/s 211(3C) of the Companies Act, 1956 and the relevant provisions of the Companies Act,
1956.
2 Revenue Recognition
(a) Export sales are accounted on the basis of the date of bill of lading/airways bill. Other sales are accounted for at ex-factory
prices on transfer of risks and rewards.
(b) Income from investments is credited to revenue in the year in which it accrues. Income is stated in full with the tax thereon
being accounted for under advance tax.
(c) Dividend is recognised as income as and when the right to receive such payment is established.
3 Fixed Assets
(a) Fixed Assets are stated at their original cost including freight, duties (net of CENVAT), taxes and other incidental expenses
relating to acquisition and installation.
(b) Expenses of revenue nature, which are directly related to project set-up are transferred to "Preoperative expenses pending
capitalisation". These expenses are allocated to fixed assets in the year of commencement of the related project.
(c) Intangible assets are recognised if they are separately identifiable and the Company controls the future economic benefits
arising out of them. All other expenses on intangible items are charged to the profit and loss account. Intangible assets are
stated at cost less accumulated amortisation and impairment.
4 Borrowing Costs
Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised as
part of the cost of that asset in accordance with Accounting Standard 16 notified u/s 211(3C) of the Companies Act, 1956 on
"Borrowing Costs". Other borrowing costs are recognized as an expense in the year in which they are incurred. Capitalisation of
borrowing costs ceases when substantially all activities necessary to prepare the qualifying assets for its intended use are complete.
5 Depreciation
(a) Depreciation is charged on straight-line method on a pro-rata basis at rates prescribed under Schedule XIV to the Companies
Act, 1956.
(b) Leasehold improvements are depreciated over respective lease periods.
(c) Assets costing not more than Rs. 5,000 individually are depreciated at 100%.
(d) Software in the nature of intangible assets are depreciated over a period of six years.
6 Investments
(a) Investments are either classified as current investments or long-term investments. The cost of investments includes acquisition
charges such as brokerage, fees and duties. Current investments are carried at lower of cost and fair value.
(b) Long-term investments are carried at cost and provisions are recorded to recognise any decline, other than temporary, in the
carrying value of each investment.
7 Inventories
(a) Inventories are valued at lower of cost and net realisable value. Cost for this purpose is calculated on a weighted average
method. In respect of finished goods and work in process, appropriate overheads are loaded.
(b) Stock of securities is valued at lower of cost and market value, determined category wise. Cost for this purpose is calculated
under First In First Out Method.
1 Standalone.p65 101 8/6/2009, 6:37 PM

MAX INDIA LIMITED

8 Capital Subsidy
Capital Subsidies, received under the state capital subsidy scheme are accounted for as capital reserve.
9 Employee Stock Option Scheme
(a) The value of options is equal to the aggregate of the intrinsic value of the options granted. Intrinsic value is the option
discount represented by the excess of market price on grant date over the exercise price of the option and is amortised on a
straight line method basis over the vesting period in line with the Securities and Exchange Board of India (SEBI) Guidelines.
(b) As and when the options are exercised, the same are accounted for as paid up capital to the extent of the face value and Share
Premium to the extent of excess of market price over face value on grant date.
(c) Options that lapse are reversed by a credit to employee compensation expense equal to the amortised portion of the value of
the lapsed options and a credit to deferred employee compensation expense equal to the unamortised option.
10 Taxation
Income taxes are computed using the tax effect accounting method, where taxes are accrued in the same period in which the
related revenue and expenses arise. Provision for tax consists of current tax, fringe benefit tax and deferred tax. A provision is made
for income tax annually based on the tax liability computed, after considering tax allowances and exemptions. Provisions are
recorded when it is estimated that a liability due to disallowances or other matters is probable.
The differences that result between the profit offered for income tax and the profit 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 accounting period 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 period based on prevailing enacted or substantially
enacted regulations. Deferred tax assets are recognised only if there is virtual certainty that they will be realised and are reviewed
for the appropriateness of their respective carrying values at each balance sheet date.
11 Employee Benefits
(a) Defined Contribution Plan
i) Certain employees of the Company are participants of a defined superannuation plan. The Company makes contributions
under the superannuation plan to "Max India Limited Superannuation Fund" based on a specified percentage of each
covered employee's salary.
ii) The Company makes monthly contributions to the "Max India Limited Employees' Provident Fund Trust" which is based
on a specified percentage of the covered employee's salary. This fund is administered through trustees and the Company's
contributions thereto are charged to revenue every year.
(b) Defined Benefit Plans
i) The liability in respect of Gratuity is provided for on the basis of an actuarial valuation carried out at the year-end using
Projected Unit Credit Method. Actuarial gains and losses are recognized in full in the Profit and Loss Account for the
year in which they occur. The Company has a recognised Trust for Gratuity benefits, "Max India Limited Employees'
Gratuity Fund" to administer the Gratuity funds. The Trust has taken Master policy with the Life Insurance Corporation
of India to cover its liability towards employees' Gratuity. The Gratuity obligation recognized in the Balance Sheet
represents the present value of the defined benefit obligation as adjusted for unrecognized past service cost and as
reduced by the fair value of Gratuity Fund.
ii) The liability in respect of Leave Encashment is provided for on the basis of actuarial valuation carried out at the year-
end for long term compensating absences using Projected Unit Credit Method. Actuarial gains and losses are recognized
in full in the Profit and Loss Account for the year in which they occur. Short term compensated absences are provided
for based on estimates.
12 Foreign Exchange Transactions
(a) Monetary assets and liabilities related to foreign currency transactions remaining unsettled at the end of the year are translated
at year-end rates.
(b) The difference in translation of monetary assets and liabilities and realised gains and losses on foreign exchange transactions
are recognised in the profit and loss account.
1 Standalone.p65 102 8/6/2009, 6:37 PM

MAX INDIA LIMITED

(c) Exchange difference in respect of liabilities incurred to acquire fixed assets are recognised in the profit and loss account.
13 Miscellaneous Expenditure
(a) Preliminary and Issue expenses are amortised over a period of 10 years, except cost incurred on raising of funds, which is
being amortised over the life of the respective financial instrument.
(b) Deferred employee compensation expense is amortised over the vesting period.
(c) Other deferred revenue expenditure is amortised from the year they have been incurred/related projects commence operations,
over 3 to 5 years based on the period over which future benefits are expected to be received.
14 Leases
Leases of assets under which the lessor effectively retains all the risks and benefits of ownership are classified as operating lease.
Payments made under operating lease are charged to Profit and Loss Account on a straight-line basis over the period of the lease.
15 Provision and Contingencies
A provision is recognized when there is a present obligation as a result of past event and it is probable that an outflow of a resource
will be required to settle the obligation, in respect of which a reliable estimate can be made. These are reviewed at each Balance
Sheet date and adjusted to reflect the current estimates.
Contingent liabilities are disclosed after an evaluation of the fact and legal aspects of the matter involved.
16 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.
1 Standalone.p65 103 8/6/2009, 6:37 PM

MAX INDIA LIMITED

B. NOTES TO ACCOUNTS
1 Contingent Liabilities (RS. LACS)
Current Year Previous Year
a) Corporate guarantees * 24000.00 24000.00
b) Claims against the Company not acknowledged as debts:
- Excise Duty 709.26 662.22
- Custom Duty 364.09 413.39
- Service Tax 334.83 325.90
- Income Tax --- Refer Note B4 ---
- Others - 254.31
c) Letter of Credit outstanding 202.14 284.83
d) The Company had received show cause notices from the excise department under Central Excise Act, 1944 against which it
had filed its appeals to the relevant authorities. As at year end, the Company had filed appeal to CESTAT against the following:
(RS. LACS)
Financial year to which the amount relates Current Year Previous Year
2001-2002 145.27 145.27
2004-2005 0.73 1.06
2005-2006 - 0.32
e) Also refer to Note B7 below
* Loans of Rs. 22495.80 Lacs (Previous year Rs. 23561.10 Lacs) are outstanding against the aforesaid corporate guarantees
2 Capital Commitments
(RS. LACS)
Particulars Current Year Previous Year
Estimated amount of contracts remaining to be executed on
capital account and not provided for 233.88 579.22
Less: Capital Advances 118.31 91.01
Balance Value of Contracts 115.57 488.21
3 Concession in Custom Duty availed on Capital equipment imported during the year against export obligation undertaken under
'Export Promotion Capital Goods' Scheme is Rs. 86.55 Lacs (Previous year Rs. 170.28 Lacs).
Movement of EPCG export obligation is given below: (RS. LACS)
Obligation as at April 1, 2008 19852.00 21606.00
Exports made during the year 3767.00 3327.00
Obligation as at March 31, 2009 16792.00 19852.00
4 Income Tax Cases
(a) In the case of an erstwhile subsidiary of the Company, Max Telecom Ventures Ltd. ("MTVL") (since merged with the Company
with effect from December 1, 2005), a demand of Rs. 9503.93 Lacs (Previous year Rs. 9503.93 Lacs) was raised by the income
tax authorities for the assessment year 1998-99 in connection with capital gains realized by MTVL from the sale of shares of
Hutchison Max Telecom Limited by holding that the sale transaction pertains to previous period relevant to assessment year
1998-99 and by denying exemption under section 10(23G) of the Income-tax Act, 1961. On appeal by MTVL, the CIT (Appeals)
while holding that the sale transaction pertains to previous period relevant to assessment year 1998-99, quashed the order of
the Assessing Officer regarding denial of exemption under section 10(23G) and the demand was cancelled. The tax authorities
have filed an appeal against this order with the Income-Tax Appellate Tribunal ("ITAT"), which appeal is pending as on date.
1 Standalone.p65 104 8/6/2009, 6:37 PM

MAX INDIA LIMITED

Subsequently, in the next assessment year, i.e. 1999-00, the above-mentioned transaction was once again sought to be taxed
both as capital gains and under a different head of income (i.e., business income) on a protective basis by the Assessing
Officer as MTVL had asked the tax authorities to treat the transaction as that arising in assessment year 1999-00 and not in
assessment year 1998-99. This, along with a few other additions, resulted in creation of a further demand of
Rs. 25630.03 Lacs (Previous year Rs. 25630.63 Lacs) which included the demand of Rs. 25002.53 Lacs (Rs. 25002.53 Lacs) on
protective basis. On appeal by MTVL, the CIT (Appeals) decided in favor of MTVL and the demand was cancelled. The tax
authorities have filed appeal against this order with ITAT, which appeal is pending as on date.
MTVL had also filed an appeal before ITAT for assessment year 1998-99 contending that the aforesaid sale transaction
pertains to Previous Period relevant to assessment year 1999-2000. This appeal had been disposed off by ITAT by applying a
circular of tax department applicable only to capital gains and holding, as a result, that the transaction of sale of shares
pertains to previous period relevant to assessment year 1998-99. However, the Tax authorities filed a petition before the ITAT
requesting a review of the said order of the ITAT on the ground that all the three appeals pertaining to the aforesaid sale
transaction should have been clubbed and heard together. The said petition of the Department was accepted by the ITAT
which recalled its earlier order in the Company's appeal for Assessment year 1998-99. Aggrieved, the Company filed a writ
petition to the Hon'ble High Court of Punjab and Haryana challenging the above action of ITAT on the ground that the same
was beyond jurisdiction. The Hon'ble High Court of Punjab and Haryana has admitted the writ petition and stayed the
operations of the order of ITAT accepting the petition filed by the Department. The ITAT has in the meanwhile adjourned
sinedie all the three appeals pending operation of the stay imposed by the Hon'ble High Court.
(b) The Company has received the following demands under section 156 of the Income Tax Act, 1961 relating to income tax
assessments:
(RS. LACS)
Assessment year Demand Demand
As at March 31, 2009 As at March 31, 2008
1999-2000 Nil 5.67
2000-2001 5.25 5.25
2001-2002 15.65 15.65
2002-2003 41.77 41.77
2003-2004 Nil Nil
2004-2005 0.76 0.76
2005-2006 Nil Nil
2006-2007 98.96 Nil
The above relate to certain disallowances and other matters and are in various stages of appeal with the CIT(Appeals)/ITAT.
Further, in the following cases, penalty under section 271(1)(c) of the Income Tax Act, 1961 has been levied for which the
Company is in appeal before ITAT.
(RS. LACS)
1992-1993 18.78 19.05

1993-1994 14.63 14.63
5 Loans
(a) Term loan - II from Yes Bank Ltd amounting to Rs. 428.57 Lacs (Previous year Rs. 714.29 Lacs) is secured by a first pari passu
charge on the fixed assets of the Company, both present and future.
(b) Term loan - II from Punjab National Bank amounting to Rs. 3400.00 Lacs (Previous year Rs. 4000.00 Lacs) is secured by a first pari
passu charge on the fixed assets and second pari passu charge on the current assets of the Company, both present and future.
1 Standalone.p65 105 8/6/2009, 6:37 PM

MAX INDIA LIMITED

(c) Term loan from Oriental Bank of Commerce amounting to Rs. 3400.00 Lacs (Previous year Rs. 4000.00 Lacs) is secured by a
first pari passu charge on the fixed assets and second pari passu charge on the current assets of the Company, both present
and future.
(d) Fund based working capital facilities from banks are secured by a first pari passu hypothecation charge on all current assets
and a second charge on immovable and movable fixed assets of the Company, both present and future.
6 During year ended March 31, 2008, the Company had issued 4,16,66,660 Equity Shares of Rs. 2/- each at a premium of Rs. 238/- per
share aggregating to Rs. 99999.98 Lacs to Qualified Institutional Buyers ("QIBs") under Chapter XIII-A of the Securities & Exchange
Board of India (Disclosure and Investor Protection) Guidelines, 2000.
7 During year ended March 31, 2008, the Company had given a put option to International Finance Corporation ("IFC"), in respect of
its subscription to the Company's subsidiary Max Healthcare Institute Limited's Optional Cumulative Partially Convertible Redeemable
Preference Shares aggregating Rs. 25000.00 Lacs together with an assured IRR of 11.25%. The Company's obligation on the above
put option is exercisable by IFC any time after 20th July, 2010 or in the event of non performance of certain obligations by Max
Healthcare Institute Ltd. and/or by the Company.
8 In 2003-04, the Company had signed an amendment to the Joint Venture Agreement ("JVA") with New York Life International Inc.
("NYLI"). In terms of the amended JVA, both the parties agreed that the Company shall not transfer or otherwise dispose its
shareholding to an extent of 24% of the paid up issued share capital ("Restricted Shares") of Max New York Life Insurance Company
Ltd ("MNYL") to any person other than NYLI. The parties also agreed that NYLI shall pay to the Company the aggregate par value
equal to 24% of the paid up issued share capital of MNYL from time to time. The aforesaid payment may be applied by NYLI to
purchase the Restricted Shares of MNYL from the Company, when and to the extent permitted pursuant to applicable laws by
March 2010 or become repayable thereafter. Pursuant to this amendment, the Company had received Rs. 17420.55 Lacs (Previous
year Rs. 17420.55 Lacs) in aggregate from NYLI till March 31, 2008.
Thereafter, on July 15, 2008, the Company amended the above mentioned JVA with NYLI. Under the new amended JVA, NYLI has an
option for 8 years to increase its shareholding in MNYL by 24% upto a maximum of 50%, subject to regulations. The option can be
exercised at a fair market value based formula defined as per the new amended JVA, less discount of 10%, as against a preferential
formula earlier. Also, the option deposit of Rs. 17420.55 Lacs received from NYLI in line with the terms of the amendment in 2003-
04 has been refunded on July 15, 2008.
9 Employee Stock Option Plan - 2003 ("the 2003 Plan"):
The Company had instituted the 2003 Plan, which was approved by the Board of Directors in August 2003 and by the shareholders
in September 2003. The 2003 Plan provides for grant of stock options aggregating not more than 5% of number of issued equity
shares of the Company to eligible employees and directors of the Company. The 2003 Plan is administered by the remuneration
committee appointed by the board of directors.
Details of the 2003 Plan are given below:
(NOS)
Year Ended Year Ended
March 31, 2009 March 31, 2008
Options outstanding, beginning of the year 567,935 741,765
Granted during the year 66,320 -
Exercised during the year (287,765) (173,830)
Forfeited during the year (280,170) -
Options outstanding, end of the year 66,320 567,935
1 Standalone.p65 106 8/6/2009, 6:37 PM

MAX INDIA LIMITED

10 Deferred Tax
The break up and movement of deferred tax assets and deferred tax liabilities into major components is given below:
2008-2009 (RS. LACS)
Particulars As at April 01, Movement during Closing as at
2008 the year March 31, 2009
Depreciation Expense 1754.89 201.20 1956.09
1754.89 201.20 1956.09
Deduction u/s 43B (165.87) (49.01) (214.88)
Other Provisions (388.88) (318.90) (707.78)
Unabsorbed Depreciation - (1033.43) (1033.43)
(554.75) (1401.34) (1956.09)
Net Deferred Tax Liability 1200.14 1200.14 -
2007-2008 (RS. LACS)

Particulars Opening Change in Adjustment* Movement Closing
As at April 01, Tax Rate during the year As at March 31,
2007 2008
Depreciation 1617.58 (132.64) - 269.95 1754.89
Deduction u/s 35D/35DD 0.11 (0.01) - (0.10) -
1617.69 (132.65) - 269.85 1754.89
Deduction u/s 43B (79.41) 6.51 (54.16) (38.81) (165.87)
Other Provisions (433.39) 35.54 - 8.97 (388.88)
(512.80) 42.05 (54.16) (29.84) (554.75)
Net Deferred Tax Liability /(Asset) 1104.89 (90.60) (54.16) 240.01 1200.14
Note: Deferred tax assets on timing differences and unabsorbed depreciation are created to the extent of their realisability in future.
* Impact of transitional liability as per AS15 (Refer Note B15 below)
11 Directors' Remuneration (RS. LACS)

(a) Salary, wages and allowances 1203.01 429.60
(b) Contribution to provident fund and superannuation fund 74.52 24.30
(c) Value of perquisites 18.37 27.67
Total 1295.90 481.57
The above does not include leave encashment, gratuity, ESOP.
Notes:
Remuneration for Current year includes an amount of Rs. 613.96 Lacs (Previous year Nil) relating to earlier years for which the
Company has received Central Government approval during Current year. However, this does not include loss on sale of assets
amounting to Rs. 28.79 Lacs arising out of final settlement.
The excess amounts of Nil for the Current year (Previous year Rs. 613.96 Lacs) received by the concerned directors, are held by them
in trust for the Company.
1 Standalone.p65 107 8/6/2009, 6:37 PM

MAX INDIA LIMITED

12 Earnings per Share
Calculation of EPS (Basic and Diluted)
Particulars For the Year Ended For the Year Ended
March 31, 2009 March 31, 2008
Basic
Profit after Tax (Rs. Lacs) 2,183.47 6,190.46
Weighted average number of Equity Shares 22,19,98,514 21,31,18,796
EPS (Rupees) 0.98 2.90
Equity Share Details (Nos)
Outstanding as at the beginning of the year 22,17,42,545 17,99,02,055
Issued on May 5, 2008 2,80,175 -
Issued on December 31, 2008 7,590 -
Issued on June 15, 2007 - 4,16,66,660
Issued on September 22, 2007 - 1,66,250
Issued on February 7, 2008 - 7,580
Outstanding as at the end of the year 22,20,30,310 22,17,42,545
Diluted
Profit after Tax (Rs. Lacs) 2183.47 6190.46
Weighted average number of Equity Shares 22,21,22,712 21,37,72,230
EPS (Rupees) 0.98 2.90
Outstanding as at the beginning of the year 22,23,10,480 18,06,43,820
Issued on June 15, 2007 - 4,16,66,660
ESOPs granted under the 2003 Plan 66,320 -
ESOP forfeited 2,80,170 -
Outstanding as at the end of the year 22,20,96,630 22,23,10,480
Reconciliation of denominators used for calculating basic and diluted earnings per share (NOS)
March 31, 2009 March 31, 2008
Denominator used for computing basic Earnings Per Share 22,19,98,514 21,31,18,796
Add :- Dilutive impact of -
(i) ESOPs granted/forfeited under the 2003 Plan 1,24,198 6,53,434
Denominator used for computing diluted Earnings Per Share 22,21,22,712 21,37,72,230
13 Miscellaneous Expenditure (RS. LACS)

Particulars As at April 1, Reversed Additions Amortised As at
2008 during the year during the year March 31, 2009
Preliminary and Share Issue Expenses - - - - -
(0.31) (-) (-) (0.31) (-)
Deferred Employee Compensation * 270.69 224.70 73.39 59.35 60.03
(633.05) (-) (-) (362.36) (270.69)
270.69 224.70 73.39 59.35 60.03
(633.36) (-) (-) (362.67) (270.69)
* Amortisation has been charged to salaries, wages and bonus.
Previous year figures in bracket.
1 Standalone.p65 108 8/6/2009, 6:37 PM

MAX INDIA LIMITED

14 In accordance with Accounting Standard AS-11 on the 'Effects of Changes in Foreign Exchange Rates' issued by the Institute of
Chartered Accountants of India read with "Companies (Accounting Standards) Rules, 2006", the Company had adopted the accounting
policies as shown in Note A12 above. There is no material impact on Profit and Loss Account on account of these changes.
Defined Benefit Plans
The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity
on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with an insurance
company in the form of a qualifying insurance policy.
Unavailed leaves can be encashed (on Basic Salary) at the time of separation from the company.
The Company had adopted Accounting Standard, AS-15 (revised 2005), on employee benefits with effect from April 1, 2007.
Accordingly, the transitional obligation of the Company amounting to Rs. 121.11 Lacs (Net of tax of Rs. 54.16 Lacs) towards
gratuity and leave encashment liability has been charged off to General Reserve in the previous year.
The following tables summarise the components of net benefit expense recognised in the profit and loss account and the funded
status and amounts recognised in the balance sheet for the respective plans.
(RS. LACS)
Gratuity Leave Encashment
Particulars As at As at As at As at
31.03.2009 31.03.2008 31.03.2009 31.03.2008
Net employee benefit expense (recognised in Employee Cost)
Service cost 41.92 37.13 45.96 29.19
Interest cost 28.30 22.78 15.58 12.19
Expected return on plan assets (8.76) (8.50) - -
Actuarial (gain)/loss 0.60 14.83 38.84 3.84
Net cost 62.06 66.24 100.38 45.22
Details of Provision for gratuity and Leave Encashment Benefits
Present value of the obligation 393.12 353.76 260.85 194.73
Fair value of plan assets 72.96 95.66 - -
Liability recognized at the year end 320.16 258.10 260.85 194.73
Change in present value of the defined benefits obligation are as follows:
Obligations (Opening balance) 353.76 284.76 194.73 152.32
Service Cost 41.92 37.13 45.96 29.20
Interest cost 28.30 22.78 15.58 12.19
Benefits paid (29.72) (5.49) (34.26) (2.81)
Actuarial (gain)/loss (1.14) 14.58 38.84 3.83
Obligation (Closing Balance) 393.12 353.76 260.85 194.73
Change in the fair value of plan assets are as follows:
Fair value of plan assets (Opening balance) 95.66 92.90 - -
Expected return on plan assets 8.76 8.50 - -
Actuarial gain/(loss) (1.74) (0.25) - -
Benefits paid (29.72) (5.49) - -
Fair value of plan assets (Closing balance) 72.96 95.66 - -
The Company expects to contribute NIL to gratuity in 2009-10.
1 Standalone.p65 109 8/6/2009, 6:37 PM

MAX INDIA LIMITED

Particulars As at As at As at As at
31.03.2009 31.03.2008 31.03.2009 31.03.2008
The major categories of plan assets as a percentage of the fair value of total plan assets are as follows:
Life Insurance Corporation of India 100% 100%
Assumptions
Discount rate 7.80% 8.00% 7.80% 8.00%
Interest Rate 7.80% 8.00% 7.80% 8.00%
Estimated rate of return on plan assets 9.15% 9.15% N.A. N.A.
Salary Increase 10.00% 10.00% 10.00% 10.00%
Attrition rate 1% to 5% 1% to 5% 1% to 5% 1% to 5%
(Depending (Depending (Depending (Depending
on Age) on Age) on Age) on Age)
Leave availment in the service N.A. N.A. 5.00% 20.00%
Retirement age 58 years 58 years 58 years 58 years
The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other
relevant factors, such as supply and demand in the employment market
Amounts for the current and previous year are as follows:
Defined benefit obligation 393.12 353.76 260.85 194.73
Plan assets 72.96 95.66 - -
Surplus / (deficit) (320.16) (258.10) (260.85) (194.73)
Experience adjustments on plan liabilities 8.79 (14.58) (97.56) (3.84)
Experience adjustments on plan assets (1.74) (0.25) - -
Defined Contribution Plans
During the year, the Company contributed Rs. 92.58 Lacs (Previous year Rs. 87.51 Lacs) for provident fund and Rs. 48.55 Lacs
(Previous year Rs. 44.70 Lacs) for superannuation fund which represents contribution to defined contribution plans.
16 Investments
The details of investments are given below:
Particulars Face As at March 31, 2009 As at March 31, 2008
Value Value Value
(Rs.) Numbers (Rs. Lacs) Numbers (Rs. Lacs)
LONG TERM TRADE (UNQUOTED), AT COST
Subsidiaries
Equity Shares
Max Ateev Ltd. 10 3,14,43,600 3144.36 3,14,43,600 3144.36
Provision for Diminution (3144.36) (3144.36)
Max New York Life Insurance Company Ltd. 10 131,35,00,014 131350.00 75,85,00,014 75850.00
Max Healthcare Institute Ltd. 10 16,61,00,000 16610.00 16,61,00,000 16610.00
Pharmax Corporation Ltd. 1 4,71,17,247 1420.65 4,71,17,247 1420.65
Max Neeman Medical International Ltd. 10 41,66,813 416.68 41,66,813 416.68
Max UK Ltd. GBP 1 2,99,742 213.00 2,99,742 213.00
Max Healthstaff International Ltd. 10 39,45,000 447.87 39,45,000 447.87
Provision for Diminution (447.87) -
Neeman Medical International BV Euro 500 38 3334.69 38 3334.69
Max Visions Inc. USD 30 10,000 94.50 10,000 94.50
Provision for Diminution (94.50) (94.50)
153345.02 98292.89
1 Standalone.p65 110 8/6/2009, 6:37 PM

MAX INDIA LIMITED

Particulars Face As at March 31, 2009 As at March 31, 2008
Value Value Value
(Rs.) Numbers (Rs. Lacs) Numbers (Rs. Lacs)
Preference Shares
Pharmax Corporation Ltd.-9% CRPS 100 15,00,000 1500.00 15,00,000 1500.00
Max Neeman Medical International Ltd. 10 50,000 5.00 50,000 5.00
1505.00 1505.00
LONG TERM NON TRADE (QUOTED), AT COST
Equity Shares
ICICI Bank Ltd. 10 250 0.65 250 0.65
0.65 0.65
CURRENT NON TRADE (UNQUOTED), AT COST
Birla Sun Life Liquid Plus-Instl.-Daily Dividend 10 - - 6,687,627 669.22
Birla Sun Life Interval Income Fund-Instl.
-Quarterly Series 2-Dividend 10 - - 5,03,96,318 5039.69
Birla Sun Life Interval Income Fund-Instl.
-Quarterly Series 3-Dividend 10 - - 5,03,39,408 5033.95
Birla Sun Life Short Term Fund - Growth 10 7,28,22,224 7598.35 - -
DSP Merrill Lynch Liquid Plus-Institutional Plan
-Daily Dividend 1000 - - 1,42,568 1426.22
HDFC Cash Management Fund-Savings Plus Plan
-Wholesale-Daily Dividend 10 - - 9,58,81,127 9618.32
HSBC Liquid Plus-Inst Plus - Daily Dividend 10 - - 5,26,52,320 5271.87
ICICI Prudential Flexible Income Plan-Daily Dividend 10 3,88,46,655 5046.10 8,59,01,681 9082.81
ICICI Prudential Interval Fund Quarterly
Interval Plan 1 Retail Dividend 10 - - 5,12,41,078 5124.11
ING Liquid Plus Fund-Institutional-Daily Dividend 10 - - 4,16,41,159 4165.49
Kotak Flexi Debt Scheme - Daily Dividend 10 - - 8,16,78,412 8193.24
Kotak Quarterly Interval Plan Series 6 - Dividend 10 - - 5,03,88,403 5038.85
Lotus India Liquid Plus Fund-Institutional-Daily Dividend 10 - - 5,11,87,145 5126.75
Principal Floating Rate Fund FMP - Instl. option
- Daily Dividend 10 - - 1,02,76,472 1028.91
Reliance Liquidity Plus Fund -Institutional
- Daily Dividend 1000 - - 14,91,315 14932.30
Grindlays Floating Rate Fund-LT-Inst Plan B-Daily Div. 10 - - 5,93,56,822 5937.22
SBI-SHF-Liquid Plus-Institutional Plan-Daily Dividend 10 - - 1,02,45,893 1025.10
TATA Floater Fund - Daily Dividend 10 - - 5,05,23,936 5070.38
TATA Fixed Horizon Fund Series 17 Scheme D - Inst.
Plan-Periodic Dividend 10 - - 10,07,47,776 10074.80
Templeton Floating Rate Income Fund Long Term-Super
Institutional-Daily Dividend 10 - - 4,79,11,926 4795.78
UTI Liquid Plus Fund Institutional Plan (Daily Dividend)
- Reinvest 1000 1,07,457 1535.34 - -
14179.79 106655.01
TOTAL 169030.46 206453.55
1 Standalone.p65 111 8/6/2009, 6:37 PM

MAX INDIA LIMITED

Name of the Investment Face Purchases Sales
value Shares/Units Value Shares/Units Value
(Rs.) (Numbers) (Rs. Lacs) (Numbers) (Rs. Lacs)
Movement in Investments in Subsidiaries during the year
Max New York Life Insurance Company Ltd. 10 55,50,00,000 55500.00 - -
Movement in Current Non Trade Investments (Unquoted):
Birla Cash Plus-Instl. Prem.-Daily Dividend 10 7,98,96,638 8005.24 7,98,96,638 8005.24
Birla Sun Life Liquid Plus-Instl.-Daily Dividend 10 10,55,92,051 10566.39 11,22,79,679 11235.60
Birla Sun Life Interval Income Fund-Instl.-Quarterly
Series 2-Dividend 10 14,51,605 145.19 5,18,47,923 5184.88
Birla Sun Life Interval Income Fund-Instl.-Quarterly
Series 3-Dividend 10 15,67,192 156.74 5,19,06,600 5190.69
Birla Sun Life Short Term Fund Daily Dividend - IP 1000 8,09,38,920 8098.34 8,09,38,920 8098.34
Birla Sun Life Short Term Fund - Growth 10 7,28,22,224 7598.34 - -
DSP Merrill Lynch FMP 1M Series 1 10 5,03,49,651 5034.97 5,03,49,651 5034.97
DSP Merrill Lynch FMP 1M Series 3 IPDR 10 3,52,69,558 3526.96 3,52,69,558 3526.96
DSP Merrill Lynch Liquid Plus-Institutional
Plan-Daily Dividend 1000 21,28,558 21430.91 22,71,126 22857.13
HDFC Cash Management Fund-Savings Plus
Plan-Wholesale-Daily Dividend 10 13,90,854 139.52 9,72,71,981 9757.84
HSBC Liquid Plus-Inst Plus - Daily Dividend 10 13,95,054 139.68 5,40,47,374 5411.55
ICICI Prudential Institutional Liquid Plan-Super
Institutional-Daily Dividend 10 5,00,05,550 5000.80 5,00,05,550 5000.80
ICICI Prudential Flexible Income Plan-Daily Dividend 10 23,21,15,927 25848.20 27,91,70,953 29884.91
ICICI Prudentail Interval Fund Quarterly Interval
Plan 1 Retail Dividend 10 14,66,251 146.64 5,27,07,330 5270.75
ING Liquid Plus Fund-Institutional-Daily Dividend 10 15,15,608 151.61 4,31,56,766 4317.10
JP Morgan India Liquid Fund - Dividend Plan
-Reinvest - 2/7/2008-3/7/2008 10 4,69,70,055 4700.72 4,69,70,055 4700.72
JP Morgan India Liquid Plus Fund - Dividend
Plan -Reinvest-3/7/2008 10 4,80,78,000 4812.08 4,80,78,000 4812.08
Kotak Liquid (Institutional Premium) - Daily Dividend 10 2,04,48,311 2500.44 2,04,48,311 2500.44
Kotak Flexi Debt Scheme - Daily Dividend 10 15,51,093 155.59 8,32,29,506 8348.83
Kotak Flexi Debt Scheme Institutional - Daily Dividend 10 9,52,09,155 10273.84 9,52,09,155 10273.84
Kotak Quarterly Interval Plan Series 6 - Dividend 10 14,31,308 143.18 5,18,19,711 5182.03
Lotus India Liquid Plus Fund-Institutional-Daily Dividend 10 7,30,863 73.20 5,19,18,008 5199.95
Principal Floating Rate Fund FMP - Instl. option
- Daily Dividend 10 1,94,491 19.47 1,04,70,963 1048.38
Reliance Liquidity Fund - Daily Dividend 10 5,60,29,681 9578.55 5,60,29,681 9578.55
Reliance Liquidity Plus Fund -Institutional - Daily Dividend 1000 52,191 522.50 15,43,506 15454.80
IDFC Floating Rate Fund-LT-Inst Plan B-Daily Div. 10 11,17,603 111.82 6,04,74,425 6049.04
SBI Debt Fund Series - 90 Days-18-(27-Nov-07)-Dividend 10 34,89,253 350.06 34,89,253 350.06
SBI-SHF-Liquid Plus-Institutional Plan-Daily Dividend 10 38,80,896 388.28 1,41,26,789 1413.39
TATA Liquid Super High Investment Fund - Daily Dividend 1000 3,58,971 4000.80 3,58,971 4000.80
TATA Floater Fund - Daily Dividend 10 24,74,65,597 24834.66 29,79,89,533 29905.04
TATA Fixed Horizon Fund Series 17 Scheme D - Inst.
Plan-Periodic Dividend 10 12,19,836 122.01 10,19,67,612 10196.81
TATA Income Plus Fund Dividend 10 9,69,36,637 10178.94 9,69,36,637 10178.94
Templeton Floating Rate Income Fund Long Term-Super
Institutional-Daily Dividend 10 7,85,877 78.67 4,86,97,803 4874.45
UTI Liquid Cash Plan Institutional - Daily Income Option
- Re-investment 1000 1,47,164 1500.26 1,47,164 1500.26
UTI Liquid Plus Fund Institutional Plan
(Daily Dividend Option) - Re-investment 1000 2,60,958 3070.68 153,501 1535.34
1 Standalone.p65 112 8/7/2009, 11:06 AM

MAX INDIA LIMITED

17 As per information received from the suppliers, a few suppliers are identified as micro and small enterprises as defined under the
Micro, Small and Medium Enterprises Development Act, 2006. During the year, there is no instance of late payment or overdue and
remaining unpaid to these suppliers. Accordingly, no interest is paid or accrued and remaining unpaid to these suppliers.
18 Segment Reporting
(a) Business Segments
The Company has considered business segment as the primary segment for disclosure. The products/ services included in each
of the reported business segments are as follows:
• Speciality Plastic Products - The manufacturing facility located at Railmajra, Nawanshahr (Punjab), produces packaging
films supported with polymers of propylene, leather finishing transfer foils and related products.
• Business Investments - The Company has business investments in companies operating in the areas of Life Insurance,
Healthcare, Clinical Research and Healthcare Staffing businesses. These investments along with its treasury investments
have been combined to form Business Investment Segments.
The above business segments have been identified considering:
(i) The nature of products and services
(ii) The differing risks and returns
(iii) Organisational structure of the group, and
(iv) The internal financial reporting systems.
Segment Revenue consists of revenue from external customers only since there are no significant inter segment transfers.
Segment Result is the difference of segment revenue and segment operating expenses.
Unallocated Assets include assets pertaining to the corporate office such as loans, advance and deposits.
Unallocated Liabilities include tax provisions and interest bearing loans not directly related to any business segment.
Unallocated Expenses - Expenses incurred at corporate office relate to various business segments. As there is no
reasonable basis of allocating this expenditure to various segments, the same are shown as unallocated reconciling
expenses. Interest expense is not treated as part of a segment expense and is reflected as a separate line item, except
interest on loans allocated to business segment.
(b) Geographical Segments
The Company has considered geographical segment as secondary reporting segment for disclosure. For this purpose, the
revenues are bifurcated based on location of customers in India and outside India (primarily Europe and North America).
Primary Segments (RS. LACS)
Particulars Specialty Plastic Business Total
Products Investments
a) Segment Revenue from:
Sales to External Customers 37003.51 - 37003.51
(30343.88) (-) (30343.88)
Income from Investment Activities - 4708.91 4708.91
(-) (6907.01) (6907.01)
Other Income 21.79 - 21.79
(251.83) (-) (251.83)
Total Segment Revenue 37025.30 4708.91 41734.21
(30595.71) (6907.01) (37502.72)
Interest Income 11.07
(10.95)
Unallocated Income 247.19
(22.61)
Total Revenue 41992.47
(37536.28)
1 Standalone.p65 113 8/6/2009, 6:37 PM

MAX INDIA LIMITED

Primary Segments (Rs. Lacs)
b) Segment Results 4003.67 4708.91 8712.58

(3912.75) (6906.85) (10819.60)
(10.95)
Less:-
Unallocated Expenses 3795.26
(2839.55)
Interest Expense 1624.83
(1459.52)
Profit from Operations 3303.56
(6531.48)
Diminution in Value of Investments and 2262.17
Doubtful Advances (-)
Profit before Tax 1041.39
(6531.48)
Provision for Taxation (Includes Provision (1142.08)
for Deferred Tax Liabilities) (341.02)
Profit after Tax 2183.47
(6190.46)
c) Carrying Amount of Segment Assets 28929.50 174034.34 202963.84
(26959.19) (210916.59) (237875.78)
Unallocated Assets 17559.27
(2198.99)
Total Assets 220523.11
(240074.77)
d) Segment Liabilities 2890.94 17.06 2908.00
(3175.14) (-) (3175.14)
Unallocated Liabilities 11379.73
(32521.35)
Total Liabilities 14287.73
(35696.49)
e) Cost to Acquire Tangible and Intangible Fixed Assets 1199.96 - 1199.96

(1745.54) (-) (1745.54)
Unallocated 94.71
(107.35)
Total Addition 1294.67
(1852.89)
f) Depreciation and Amortisation Expense 1134.15 - 1134.15
(1056.15) (-) (1056.15)
Unallocated Depreciation and Amortization 71.84
(83.08)
Total Depreciation and Amortization 1205.99
(1139.23)
1 Standalone.p65 114 8/6/2009, 6:37 PM

MAX INDIA LIMITED

Primary Segments (RS. LACS)
g) Non-cash Expenses Other than Depreciation 152.64 2219.07 2371.71

and Amortization (32.74) (0.16) (32.90)
Unallocated Non cash Expenses 40.37
(11.26)
Total 2412.08
(44.16)
Secondary Segments (RS. LACS)

Particulars India Outside India Total
a) Revenue from External Customers 34817.66 6916.55 41734.21
(30971.59) (6531.13) (37502.72)
b) Carrying Amount of Segment
Assets by Location of Assets 197446.61 5517.23 202963.84
(231286.50) (6589.28) (237875.78)
c) Cost to Acquire Tangible and Intangible
Fixed Assets by Location of Assets 1199.96 - 1199.96
(1745.54) (-) (1745.54)
Note: Figures in brackets are for previous year.
19 Related Parties (as identified by the management) are classified as:
Subsidiaries Max New York Life Insurance Company Ltd., Max Ateev Ltd., Neeman Medical International BV, Neeman
Medical International NV, Max Neeman Medical International Inc., USA, Max Medical Services Ltd., Max
Healthcare Institute Ltd., Alps Hospital Ltd., Max UK Ltd., Pharmax Corporation Ltd., Max Neeman Medical
International Ltd., Max HealthStaff International Ltd.
Key Management Mr. Analjit Singh, Mr. B Anantharaman (till June 30, 2008)
Personnel (Directors)
Relatives of Key
Management Personnel Mr. Veer Singh
Enterprises over which Liquid Investments & Trading Company, New Delhi House Services Ltd., Medicare Investments Ltd.,
Key Management Maxopp Investments Ltd., Cheminvest Ltd., Pivet Finances Ltd., Lakeview Enterprises, Delhi Guest House
Personnel have Pvt Ltd., Trophy Holdings Pvt. Ltd., M.V. Healthcare Services Pvt. Ltd., ND Callus Info Services Pvt. Ltd.,
Significant Influence Boom Investments Pvt. Ltd., Malsi Holdings Ltd., Dynavest India Pvt. Ltd., Scorpio Beverages Pvt. Ltd.,
Trophy Guest Houses & Resorts Pvt. Ltd., Trophy Estates Pvt. Ltd., Gaylord Impex Ltd., Pen Investments
Ltd., Mohair Investment, PVT Investment Ltd., Malsi Estates Ltd, TVP Investments Pvt. Ltd., BAS Investments
Pvt. Ltd., Vitasta Estate Pvt. Ltd., Terra Planet Estate Pvt. Ltd., Doon Holiday Resorts Pvt. Ltd., Urban Space
Consultants Pvt. Ltd., Max India Foundation, Capricorn Health Services Private Ltd., Leo Retailing and
Health Services Private Ltd., Nurture Health Services Pvt. Ltd., Capricorn Retailing and Services Pvt. Ltd.,
Veer Health Services Pvt. Ltd., Wegmans Business Park Pvt. Ltd., Synergy Infracon Pvt. Ltd., Max Speciality
Products Ltd., Max Bupa Health Insurance Ltd. (Effective September 5, 2008), Malsi Hotels Ltd. (Effective
March 20, 2009), Bhai Mohan Singh Foundation
Employee benefit funds Max India Ltd. Employees' Provident Fund Trust, Max India Ltd. Superannuation Fund
1 Standalone.p65 115 8/6/2009, 6:37 PM

MAX INDIA LIMITED

Summary of significant related party transactions (as identified by the management) carried out in ordinary course of business
are as follows:
Particulars Subsidiaries Key Relatives of Enterprises Employee

Management Key Over which Benefit
Personnel Management Key Funds
Personnel Management
Personnel
have
Significant
Influence
1 Fixed Assets Transferred - - - - -
(-) (-) (-) (16.75) (-)
2 Fixed Assets Purchased 45.54 - - 6.32 -
(-) (-) (-) (-) (-)
3 Deposits and Advances given 62.77 - - - -
(-) (387.87) (-) (-) (-)
4 Loans Given 5928.50 - - - -
(704.53) (-) (-) (-) (-)
5 Income and Reimbursement
- Interest Income 287.15 - - - -
(26.85) (-) (-) (-) (-)
- Reimbursement of Expenses 381.51 - - 236.79 -
(392.72) (-) (-) (14.74) (-)
6 Expense
- Services / Other Expenses Received 444.74 - 9.08 235.46 -
(311.68) (-) (9.08) (271.87) (-)
- Directors' Remuneration - 1295.90* - - -
(-) (481.57) (-) (-) (-)
- Company's Contribution to Trust - - - - 115.85
(-) (-) (-) (-) (97.55)
7 Investments
- Made 55500.00 - - - -
(22200.00) (-) (-) (-) (-)
- Advance against Equity - - - 800.00 -
(-) (-) (-) (-) (-)
8 Amount outstanding
- Corporate Guarantee 24000.00 - - - -
(24000.00) (-) (-) (-) (-)
- Against Loan Given 4514.40 - - - -
(3320.98) (-) (-) (-) (-)
- Interest Receivable 49.54 - - - -
(-) (-) (-) (-) (-)
- Other Receivable 1458.55 - - 204.73 -
(1116.91) (622.36) (-) (1.21) (-)
- Other Payable 17.06 - - 9.33 -
(-) (-) (-) (12.05) (-)
Other relevant information -
i) The above excludes sitting fees Rs. 16.44 Lacs (Previous year Rs. 8.90 Lacs) paid to non-executive directors.
ii) Figures in brackets are for previous year.
* Refer note B11 above.
1 Standalone.p65 116 8/6/2009, 6:37 PM

MAX INDIA LIMITED

20 Leases
Accounting for leases has been done in accordance with Accounting Standard-19 issued by the ICAI. Following are the details of
lease transactions for the year:
(a) Finance Lease
The Company does not have any finance lease arrangement.
(b) Operating Lease
(i) Lease rentals recognised in the profit and loss account for the year is Rs. 223.33 Lacs (Previous year Rs. 203.83 Lacs).
(ii) The Company has entered into operating leases for its office and for employees' residence that are renewable on a
periodic basis and cancellable at Company's option. The Company has not entered into sublease agreements in respect
of these leases. Further, the Company has not entered into any non-cancellable leases.
Additional information pursuant to the provisions of paragraph 3, 4C and 4D of Part II of Schedule VI to the Companies Act,1956:
21 Details of Stock of Securities:
Equity Shares
Numbers Value (Rs. Lacs) Numbers Value (Rs. Lacs)
Opening Balance 8,27,166 - 8,27,466 0.16
Write Off - - 300 0.16
Closing Stock 8,27,166 - 8,27,166 -
22 A. (i) Installed Capacity and Actual Production

Product Unit Installed Capacity * Actual Production
(Annual)
BOPP Film Tonnes 29,150 28,504.10
(29,150) (24,051.81)
Soft Leather Finishing Foil Lacs (SFT) 555 84.97
(320) (164.49)
Figures in brackets are for Previous year
Notes:
Licensed capacity is not applicable.
*Annual installed capacities are certified by the management.
(ii) Stock of Finished Goods

Opening Stock Closing Stock
Product Unit Quantity Value Quantity Value
(Rs. Lacs) (Rs. Lacs)
Manufactured
BOPP Film Tonnes 148.89 153.43 150.20 181.42
(25.59) (46.47) (148.89) (153.43)
Soft Leather Finishing Foil Lacs (SFT) 1.51 5.88 1.25 5.14
(0.89) (3.10) (1.51) (5.88)
Traded
Soft Leather Finishing Foil Lacs (SFT) 0.58 6.26 0.56 6.04
(0.61) (6.43) (0.58) (6.26)
Total 165.57 192.60
(56.00) (165.57)
Figures in brackets are for previous year
1 Standalone.p65 117 8/6/2009, 6:37 PM

MAX INDIA LIMITED

(iii) Turnover
Product Unit Quantity Value
(Rs. Lacs)
a) Manufactured Goods
BOPP Film Tonnes 28,501.99 38432.22
(23,928.51) (30724.57)
Soft Leather Finishing Foil Lacs (SFT) 85.23 914.56
(163.87) (1574.38)
b) Traded Goods
Soft Leather Finishing Foil Lacs (SFT) 0.15 2.64
(0.03) (0.27)
Total 39349.42
(32299.22)
(iv) Purchase of Finished Goods

Product Quantity Value Quantity Value
Soft Leather Finishing Foil Lacs (SFT) 0.13 1.50 - -
Total 0.13 1.50 - -
(v) Raw Materials Consumed
Product Quantity Value Quantity Value#
Polypropylene Tonnes 28,917.20 20074.88 25,840.77 16140.73
Polypropylene Compounds Tonnes 1,848.34 2131.77 1,739.37 1709.93
Others * - 1131.88 1267.16
Total 23338.53 19117.82
Note:
* It is not practicable to furnish quantitative information in view of large number of items, each being less than ten percent in value of total.
# Excludes Rs. 51.90 Lacs relating to consumption during trial run.
(vi) Consumption of Raw Materials, Stores and Spares

Materials Value % of Value % of
(Rs. Lacs) Consumption (Rs. Lacs) Consumption
Raw Materials
- Imported 4635.46 19.86 4427.41 23.16
- Indigenous 18703.07 80.14 14690.41 76.84
Total 23338.53 100.00 19117.82 100.00
Store and Spares
- Imported 157.74 33.57 116.63 30.17
- Indigenous 312.15 66.43 269.92 69.83
Total 469.89 100.00 386.55 100.00
1 Standalone.p65 118 8/6/2009, 6:37 PM

MAX INDIA LIMITED

B. Value of Imports calculated on CIF Basis
(RS. LACS)
Raw Materials 5140.03 4094.02
Components and Spare Parts 264.29 240.60
Capital Goods 1075.09 811.72
Trading Goods 1.15 -
Total 6480.56 5146.34
C. Expenditure in Foreign Currency
(RS. LACS)
Technical - 4.96
Others 154.08 91.94
Total 241.32 207.54
D. Earnings in Foreign Currency
(RS. LACS)
Exports on FOB basis 6557.51 6273.69
Total 6557.51 6273.69
23 Auditors' Remuneration
(RS. LACS)
Audit fees (including service tax) 16.55 16.85
Out of pocket expenses 0.68 0.62
Total 17.23 17.47
24 Preferential / QIP Issue Proceeds
Details of additions:
(RS. LACS)
Addition:
On allotment of shares to QIBs - 99999.98
Total 75730.39 99999.98
Utilizations:
Investment in subsidiary company 55500.00 22200.00
Advance against Investment in subsidiary company 800.00 -
Refund of Option Deposit to New York Life International 17420.55 -
Share issue expenses - 2069.59
Total 73720.55 24269.59
Balance invested in units of mutual fund 2009.84 75730.39
1 Standalone.p65 119 8/6/2009, 6:37 PM

MAX INDIA LIMITED

25 Securities Premium Account
(i) Details of additions:
(RS. LACS)
1. On allotment of shares to QIBs (Refer note 6 above) - 99166.65
2. Exercise of Stock Option 414.46 249.55
Total 414.46 99416.20
(ii) Details of utilization:
(RS. LACS)
1. Expenses on issuance of shares to QIBs - 2069.59
26 During the year, Rs. 16.51 Lacs (Previous year Rs. 14.13 Lacs) has been charged to the profit and loss account relating to Research
and Development expenditure under the heads Raw Material - Consumed and Power & Fuel.
27 During the year, the Company shared the services of some of its employees and facilities with group companies. Consequently, the
share of costs attributable to these companies has been charged out to the relevant group company.
28 On September 03, 2008, the Company signed a tripartite JVA with BUPA Finance Plc., UK and Mr. Analjit Singh for its proposed
health insurance business. Subsequently, Max Bupa Health Insurance Limited ("MBHIL") has been incorporated on September 5,
2008 to operate the said business. In line with the guidelines issued by Insurance Regulatory and Development Authority, the initial
share capital of MBHIL will be Rs.100 Crore. This will be contributed 50% by the Company, 24% by Mr. Analjit Singh and his
associates and 26% by BUPA Finance Plc., UK through its Indian subsidiary and other entities.
On January 13, 2009, the Company has contributed share application money amounting to Rs. 800.00 Lacs to MBHIL. Also, during
the year, the Company incurred expenses amounting to Rs. 185.16 Lacs on behalf of MBHIL which are recoverable in terms of the
aforesaid JVA.
Consequently, the Board of Directors in their meeting held on June 26, 2009 have decided to invest upto 74% of equity shareholding
of MBHIL, subject to shareholder's approval.
29 During the year, a Memorandum of Understanding (MOU) dated November 12, 2008 has been entered into amongst Government of
Punjab ("GOP"), Max India Group and Others ("the Founder Supporters"), together with Indian School of Business, Hyderabad
("ISB"). As per the MOU, a second campus of ISB is purposed to be established in the Knowledge city at Mohali, with an equal
contribution from each of the Founder Supporters. The Board of Directors has recommended a contribution for an amount not
exceeding Rs. 1666.67 Lacs from the Company to this initiative over a period of 3-4 years, subject to the shareholders approval, out
of the total commitment of Rs. 5000.00 Lacs from Max India Group. Of the above, a sum of Rs. 130.00 Lacs has been contributed
by the Company during the year and included under the head Charity and Donation.
30 During the previous year, the Company received Rs. 50 Lacs as capital subsidy from the Director of Industries, Government of
Punjab under "Punjab Industrial Incentives Code under the Industrial Policy, 1996" for substantial expansion during financial year
1996-97. The same has been accounted for as capital reserve.
31 Subsequent to the year end, the Board of Directors in their meeting held on May 15, 2009, approved the issuance of 10,326,311
equity shares of Rs 2/- each at a premium of Rs 143.26 per equity share, aggregating to Rs. 15000.00 Lacs to International Finance
Corporation, Washington USA on a preferential basis. The same has been approved by the shareholders in an Extra-ordinary General
Meeting held on Friday, June 12, 2009.
Consequently, the Company in the meeting of Allotment Committee of Directors held on June 19, 2009 allotted the said shares.
1 Standalone.p65 120 8/6/2009, 6:37 PM

MAX INDIA LIMITED

32 The Company invested Rs. 447.87 Lacs in the form of 39,45,000 equity shares of Rs. 10/- each and extended loans of Rs. 1814.29
Lacs to its wholly owned subsidiary Max HealthStaff International Limited (MHS) till March 31, 2009. MHS is in the business of
sourcing, training and placing healthcare personnel in India and abroad more particularly in the United States. The placement of
healthcare personnel in United States is subject to availability of immigrant visas, which is currently unavailable given the visa
retrogression in force. Consequently, MHS has considerably scaled down its operations till the time further clarity on immigration
laws emerges. Accordingly, based on prudent accounting practices, the management has decided to provide for diminution in the
value of investments and loans given to MHS.
33 Previous year’s figures have been regrouped / reclassified wherever necessary to conform to current year's classification.
For and on behalf of the Board of Director

ANALJIT SINGH Chairman & Managing Director
N. RANGACHARY Director
ASHWANI WINDLASS Director
New Delhi SUJATHA RATNAM Chief Financial Controller
JUNE 26, 2009 V. KRISHNAN Company Secretary
1 Standalone.p65 121 8/6/2009, 6:37 PM

MAX INDIA LIMITED
Balance Sheet Abstract and company’s general business profile

I REGISTRATION DETAILS :
Registration No. 0 8 0 3 1 State Code 1 6
Balance Sheet Date 3 1 0 3 2 0 0 9
Date Month Year
II CAPITAL RAISED DURING THE YEAR (Amount in Rs. Thousand)
Public Issue Rights Issue
N I L N I L
Bonus Issue Others
N I L 5 7 6
III POSITION OF MOBILISATION AND DEPLOYMENT OF FUNDS (Amount in Rs. Thousand)
Total Liabilities Total Assets
2 1 6 3 7 6 7 4 2 1 6 3 7 6 7 4
SOURCES OF FUND
Paid-up Capital Reserve and Surplus
4 4 4 0 6 1 2 0 1 7 9 4 7 7
Secured Loans Unsecured Loans
1 0 0 5 8 7 5 8 2 6 1
Deferred Tax Liability (Net)
N I L
Net Fixed Assets Investments
1 9 9 8 7 3 8 1 6 9 0 3 0 4 6
Net Current assets Misc. Expenditure
2 7 2 9 8 8 7 6 0 0 3
Accumulated Losses
N I L
IV PERFORMANCE OF COMPANY (Amount in Rs. Thousand)
Turnover (Total Income) Total Expenditure
4 1 9 7 3 6 0 4 0 9 3 2 2 1
+ - Profit before Tax + - Profit after Tax
√ 1 0 4 1 3 9 √ 2 1 8 3 4 7
+ - Basic Earning per Share in Rs. Dividend Rate (%)
√ 0 . 9 8 N I L
+ - Diluted Earning per Share in Rs.
√ 0 . 9 8
V NAME OF THREE PRINCIPAL PRODUCTS/SERVICE OF COMPANY
Item Code No. (ITC code) 3 9 2 0 . 2 0
Product Description F I L M S S U P P O R T E D
W I T H P O L Y M E R S
O F P R O P Y L E N E
1 Standalone.p65 122 8/7/2009, 9:50 AM

MAX INDIA LIMITED
Disclosure of Loans/Advances and Investments

AS REQUIRED UNDER CLAUSE 32 OF THE LISTING AGREEMENT
FOR THE FINANCIAL YEAR ENDED MARCH 31, 2009
(RS. LACS)
S.N. Name Amount Outstanding
As of Maximum amount
March 31, 2009 during the year
I. Loans and advances in the nature of loans
A. To Subsidiaries
A.1 Max Ateev Ltd. 674.06 676.62
A.2 Pharmax Corporation Ltd. 1138.00 5558.00
A.3 Max HealthStaff International Ltd. 1814.29 1820.53
A.4 Max Neeman Medical International Ltd. 888.06 888.06
B. To Associates Nil Nil
C. Where there is no repayment schedule or repayment beyond seven years Nil Nil
D Where there is no interest or interest below Section 372A of Companies Act Nil Nil
E To firms/Companies in which directors are interested Nil Nil
II. Investments by the loanee in the shares of parent company and subsidiary
company when the company has made loan or advance in the nature of loan Nil Nil
1 Standalone.p65 123 8/7/2009, 9:50 AM

STATEMENT REGARDING SUBSIDIARY COMPANIES PURSUANT TO SECTION 212(3) AND 212(5) OF THE COMPANIES ACT,1956
1 Standalone.p65
Name of the Subsidiary Company Financial Year Holding Company’s interest as at close of Net aggregate amount of Net aggregate amount of Holding
to which Financial Year of Subsidiary Company Subsidiary Company’s profits Subsidiary Company’s profits Company’s
Accounts after deducting its losses or vice- after deducting its losses or interest as at
relate versa, so far as it concerns vice-versa, so far as it 31.03.2009
Members of Holding Company concerns Members of Holding incorporating
which are not dealt within the Company which are dealt changes since
Company’s Account within the Company’s Account close of
MAX INDIA LIMITED
Financial
i) Shareholding ii) Extent of For the For the For the For the Year/Period of
Holding Current Previous Current Previous Subsidiary
Financial Year Financial Year Financial Year Financial Year Company
124
(Rs. Lacs) (Rs. Lacs) (Rs. Lacs) (Rs. Lacs)
Domestic:
Max New York Life Insurance Company Ltd. 31.03.2009 131,35,00,014 Equity Shares of Rs. 10 each 73.69% (28961.32) (44931.66) NIL NIL Not Applicable
Max Healthcare Institute Ltd. 31.03.2009 16,61,00,000 Equity Shares of Rs. 10 each 70.04% 3334.70 (10857.39) NIL NIL Not Applicable
Max Medical Services Ltd. (Note 1) 31.03.2009 1,41,42,535 Equity Shares of Rs. 10 each 70.04% 175.08 (630.81) NIL NIL Not Applicable
Alps Hospital Ltd. (Note 2) 31.03.2009 50,000 Equity Shares of Rs. 10 each 70.04% (398.48) (449.95) NIL NIL Not Applicable
Max Neeman Medical International Ltd. 31.03.2009 41,66,813 Equity Shares of Rs. 10 each 100.00% 121.98 (730.20) NIL NIL Not Applicable
Pharmax Corporation Ltd. 31.03.2009 4,71,17,247 Equity Shares of Re. 1 each 85.20% 156.09 (771.15) NIL NIL Not Applicable
Max Ateev Ltd. 31.03.2009 3,14,43,600 Equity Shares of Rs. 10 each 100.00% (3.32) (3801.48) NIL NIL Not Applicable
Max Healthstaff International Ltd. 31.03.2009 3,945,000 Equity Shares of Rs. 10 each 100.00% (270.49) (1892.26) NIL NIL Not Applicable
Overseas:
Max India Limited

Neeman Medical International B.V. 31.03.2009 38 Ordinary Shares of Euro 500 each 100.00% (11.36) (5393.97) NIL NIL Not Applicable

Neeman Medical International N.V. (Note 3) 31.03.2009 125 Ordinary Shares of Euro 500 each 100.00% 5.18 (8626.80) NIL NIL Not Applicable
Max Neeman Medical International Inc., USA (Note 4) 31.03.2009 325 Shares (Note 5) 100.00% (4.04) (3670.45) NIL NIL Not Applicable
Max UK Ltd., UK 31.03.2009 2,99,742 Ordinary Shares of GBP 1 each 100.00% 3.36 (145.52) NIL NIL Not Applicable
Notes:
1. Held through Max Healthcare Institute Ltd.
2. Held through Max Medical Services Ltd.
3. Held through Neeman Medical International B.V., Netherlands
4. Held through Neeman Medical International N.V., Netherlands
5. Paid value of 325 shares is US$ 750,000 equivalent Rs. 366.08 Lacs.
6. Figures in brackets indicate loss.

8/7/2009, 9:51 AM
MAX INDIA LIMITED
CONSOLIDATED
STATEMENT OF ACCOUNTS
MAX INDIA LIMITED
CONSOLIDATED STATEMENT OF ACCOUNTS
Auditors’ Report
TO THE BOARD OF DIRECTORS OF MAX INDIA LIMITED 4. We report that the consolidated financial statements have
been prepared by the company in accordance with the
1. We have audited the attached Consolidated Balance Sheet of
requirements of Accounting Standard 21, Consolidated
Max India Limited and its subsidiaries as at March 31, 2009,
Financial Statements, issued by the Institute of Chartered
the Consolidated Profit and Loss Account for the year ended
Accountants of India and on the basis of the separate audited
on that date annexed thereto, and the Consolidated Cash Flow
financial statements of Max India Limited and its subsidiaries
Statement for the year ended on that date, which we have
included in the consolidated financial statements.
signed under reference to this report. These consolidated
financial statements are the responsibility of the Company’s 5. On the basis of the information and explanations given to us
management. Our responsibility is to express an opinion on and on consideration of the separate audit reports on individual
these consolidated financial statements based on our audit. audited financial statements of Max India Limited and its
aforesaid subsidiaries, in our opinion, the consolidated financial
2. We conducted our audit in accordance with auditing standards
statements give a true and fair view in conformity with the
generally accepted in India. Those Standards require that we
accounting principles generally accepted in India:
plan and perform the audit to obtain reasonable assurance
about whether the financial statements are prepared, in all (a) in the case of the Consolidated Balance Sheet, of the
material respects, in accordance with an identified financial consolidated state of affairs of Max India Limited and its
reporting framework and are free of material misstatement. subsidiaries as at March 31, 2009;
An audit includes examining, on a test basis, evidence
(b) in the case of the Consolidated Profit and Loss Account,
supporting the amounts and disclosures in the financial
of the consolidated results of operations of Max India
statements. An audit also includes assessing the accounting
Limited and its subsidiaries for the year ended on that
principles used and significant estimates made by
date; and
management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a (c) in the case of the Consolidated Cash Flow Statement, of
reasonable basis for our opinion. the consolidated cash flows of Max India Limited and its
subsidiaries for the year ended on that date.
3. We did not audit the financial statements of certain
subsidiaries, whose financial statements reflect total assets V. NIHAWAN
of Rs. 41.0 crores as at March 31, 2009 and total revenues of Partner
Rs. 9.4 crores for the year ended on that date. These financial Membership Number F 87228
statements have been audited by other auditors whose reports
have been furnished to us, and our opinion, insofar as it relates For and on behalf of
to the amounts included in respect of these subsidiaries, is Gurgaon Price Waterhouse
based solely on the report of the other auditors. JUNE 26, 2009 Chartered Accountants
2 Consolidated.p65 127 8/6/2009, 6:37 PM

MAX INDIA LIMITED
Consolidated Balance Sheet as at March 31, 2009

(RS. LACS)
March 31, 2009 March 31, 2008
SOURCES OF FUNDS
Share Capital 1 4440.61 4434.85
151117.69 154375.34
Preference Shares 3 25000.00 25000.00
LOAN FUNDS
Secured Loans 4 34415.38 37480.31
Unsecured Loans 5
- Loans 326.56 289.24
- Advances from Others - 17420.55
34741.94 55190.10
Deferred Tax Liability (Net) 6 20.07 3421.71
Policyholders’ Liabilities 498538.50 322742.74
Funds for Future Appropriations - Participating Policies 1694.32 4335.11
Minority Interest (Refer Note B3 on Schedule 26) 27637.93 17263.31
738750.45 582328.31
FIXED ASSETS 7
Gross Block 121743.06 91717.81
Net Block 88119.75 67260.05
93030.13 71822.61
INVESTMENTS 8 563788.84 484027.82
Inventories 9 4063.23 3866.45
Sundry Debtors 10 27347.75 24119.94
Cash and Bank Balances 11 22836.87 3197.56
Other Current Assets 12 6816.14 4750.44
Loans and Advances 13 71221.65 52458.30
132285.64 88392.69
Provisions 15 2273.50 890.85
70227.77 62560.64
Profit and Loss Account 19488.37 -
738750.45 582328.31
Gurgaon New Delhi
JUNE 26, 2009 JUNE 26, 2009

MAX INDIA LIMITED
Consolidated Profit and Loss Account for the year ended March 31, 2009
(RS. LACS)
March 31, 2009 March 31, 2008
INCOME
Sales 44134.41 36054.34
Less: Sales Returns (367.72) (398.81)
Excise Duty (3606.19) (3470.99)
40160.50 32184.54
Service Income 17 410606.87 292220.03
Income from Investment Activities 18 33024.49 32492.84
Other Income 19 5352.28 4157.38
489144.14 361054.79
INCREASE / (DECREASE) IN INVENTORY 20 (18.87) 503.49
489125.27 361558.28
EXPENDITURE
Manufacturing, Trading and Direct Expenses 21 341493.83 269077.14
Personnel Expenses 22 84375.93 45483.79
General and Administration Expenses 23 84198.22 39938.56
524826.30 365864.62
(LOSS) BEFORE TAX (35701.03) (4306.34)
Tax Expense 25 (2383.56) 1672.13
(LOSS) AFTER TAX (33317.47) (5978.47)
Funds for Future Appropriations - Participating Policies 2640.79 (3709.44)
Minority Interest 8838.07 4798.19
NET (LOSS) (21838.61) (4889.72)
PROFIT BROUGHT FORWARD 3038.36 7928.08
PROFIT/(LOSS) AVAILABLE FOR APPROPRIATION (18800.25) 3038.36
APPROPRIATIONS
(Refer Notes B3 & B11 on Schedule 26)
Dividend on Preference Shares (839.73) -
Corporate Dividend Tax (142.71) -
(982.44)
Share of Minority Interest 294.32 (688.12) -
PROFIT/(LOSS) CARRIED FORWARD TO THE BALANCE SHEET (19488.37) 3038.36
Earnings Per Share (Rs. per equity share of Rs. 2/- each)
Basic (10.15) (2.29)
Diluted (10.15) (2.29)
Basic 221,998,514 213,118,796
Diluted 222,122,712 213,772,230
Gurgaon New Delhi
JUNE 26, 2009 JUNE 26, 2009

MAX INDIA LIMITED
Consolidated Cash Flow Statement for the year ended March 31, 2009
(RS. LACS)
March 31, 2009 March 31, 2008
A. CASH FLOW FROM OPERATING ACTIVITIES:
NET PROFIT/(LOSS) BEFORE TAX (35701.03) (4306.34)
Adjustments for:
Interest Income (24481.06) (14211.93)
Amortisation of Discount/(Premium) on Non Trade Investments (1232.09) (57.72)
Dividend Income from Non Trade Investments (5284.92) (6974.16)
Net (Profit) / Loss on Sale of Fixed Assets 85.52 188.14
Net (Profit) / Loss on Sale of Investments 27435.00 (9407.67)
Unrealised (Gain)/Loss on Investments 14410.79 (1736.42)
Amortisation of Miscellaneous Expenditure 0.59 19.50
Fixed Assets and Spares Written off 14.77 53.46
Debts and Debit Balances Written Off 8.63 4.45
Goodwill Written off 403.63 -
Liability/ Provisions No Longer Required Written Back (453.81) (178.25)
Provision for Diminution in Value of Investment - Long Term 422.49 51.38
ESOP Lapsed Written Back (180.82) -
TDS on Service and Other Income (275.41) (333.31)
Other Provisions 67.35 10.29
ESOP Compensation Expense 238.39 433.17
Change in Policyholder Reserves 175795.76 166033.55
Operating Profit Before Working Capital Changes 165541.85 140655.59
Adjustments for:
Trade and Other Receivables (21740.46) (18254.03)
Inventories (196.78) (1675.62)
Trade and Other Payables 8918.63 20096.16
Provisions for Retirement Benefits 400.20 151.62
Cash Generated From Operations 152923.44 140973.72
Direct Taxes Refunded / (Paid) (Net) (512.55) (953.64)
Cash From / (Used in) Operating Activities 152410.89 140020.08
Sale of Fixed Assets 209.53 124.30
Investments Made (Others) (1586529.64) (1141812.30)
Sale of Investments 1463870.64 868659.14
Interest Received 23899.88 12440.15
Dividend Received on Non Trade Investments 3922.95 6733.41
Proceeds from Sale of Business - 105.10
Other Loans (3131.60) (898.12)
Cash and Cash Equivalents Released on De-Subsidiarisation - (0.26)
Cash From / (Used In) Investing Activities (127871.97) (273455.20)

MAX INDIA LIMITED
(RS. LACS)
March 31, 2009 March 31, 2008
Issue of Shares to QIBs - 99999.98
Increase in Share Capital (Minority Share in Subsidiaries) 19505.00 12800.00
Issue of Preference Shares - 25000.00
(by Max Healthcare Institute Limited, a Subsidiary Company)
ESOPs Exercised 5.76 3.48
Capital Subsidy Received - 50.00
Shares Issue Expenses - (2164.20)
Proceeds from Long Term Loans 70.96 1771.01
Proceeds/(Repayment) of Short Term Borrowings (Net) 355.10 (570.67)
Refund of Other Advances (17420.55) -
Interest Paid (3999.71) (4194.97)
Cash From / (Used In) Financing Activities (4937.13) 130816.61
Net Increase / (Decrease) in Cash and Cash Equivalents 19601.79 (2618.51)
Impact of Foreign Exchange Fluctuations 37.52 (7.80)
Cash and Cash Equivalents - Opening Balance 3197.56 5823.87
Cash and Cash Equivalents - Closing Balance 22836.87 3197.56
Notes
1 The above Cash Flow Statement has been prepared under the “Indirect Method” as set out in the Accounting Standard-3 on Cash
2 Cash and Cash Equivalents at the end of the year consist of Cash, Cheques in Hand and Balances with Banks:
(RS. LACS)
As at As at
March 31, 2009 March 31, 2008
Cheques in Hand 106.07 44.32
Fixed Deposits* 6553.28 36.60
Remittance in Transit 7128.88 -
Balances with Banks ** 8320.92 3081.74
Total 22836.87 3197.56
* held under lien by various authorities Rs. 38.28 Lacs (Previous year Rs. 35.60 Lacs)
** Includes Rs. 12.82 Lacs (Previous year Rs. 23.89 Lacs) not available for use by the Company.
3 Previous year’s figures have been regrouped wherever necessary to conform to current years’ classification.
Cash Flow Statement
Gurgaon New Delhi

JUNE 26, 2009 JUNE 26, 2009

MAX INDIA LIMITED
Schedules annexed to and forming part of the consolidated accounts

(RS. LACS)
As at As at
March 31, 2009 March 31, 2008
SCHEDULE-1
SHARE CAPITAL
AUTHORISED
46,00,00,000 Equity Shares of Rs. 2/- each 9200.00 9200.00
(Previous year 46,00,00,000 Equity Shares of Rs. 2/- each)
8,00,000 Preference Shares of Rs. 100/- each 800.00 800.00
(Previous year 8,00,000 Preference Shares of Rs. 100/- each)
10000.00 10000.00
22,20,30,310 Equity Shares of Rs. 2/- each fully paid up
(Previous year 22,17,42,545 Equity Shares of Rs. 2/- each fully paid up) 4440.61 4434.85
4440.61 4434.85
Paid up Share Capital includes:
- 5,76,60,400 Equity Shares of Rs. 2/- each (Previous year 5,76,60,400 Equity Shares of Rs. 2/- each)
allotted as fully paid up by way of bonus shares out of Securities Premium Account; and
- 14,49,925 Equity Shares of Rs. 2/- each (Previous year 11,62,160 Equity Shares of Rs. 2/- each)
allotted under employees stock option plan
SCHEDULE-2
(Refer Notes A9, A10, B2, B9, B11, B13, B18, B27, B29 and B33 on Schedule 26)
Capital Reserve
Securities Premium Account
Employee Stock Option Outstanding
Additions during the year 245.59 -
Revaluation Reserve
Opening Balance - 117.21
Closing Balance - -
Foreign Currency Translation Reserve
General Reserve
Closing Balance - 3038.36
146677.08 149940.49

MAX INDIA LIMITED

(RS. LACS)
As at As at
March 31, 2009 March 31, 2008
SCHEDULE-3
PREFERENCE SHARES
(Refer Notes B4 and B11 on Schedule 26)
250,000,000 (Previous year 250,000,000), 2% Cumulative

Partially Convertible Preference Shares of Rs.10/- each 25000.00 25000.00
(issued by Max Healthcare Institute Limited, a Subsidiary Company)
25000.00 25000.00
SCHEDULE-4
SECURED LOANS
Loans and Advances from Banks

Term Loan 8076.60 10445.65
Fund Based Working Capital Facilities 3842.98 3473.56
Term Loans from Financial Institutions 22495.80 23561.10
34415.38 37480.31
Amount repayable within one year Rs. 4793.40 Lacs (Previous year Rs. 4434.18 Lacs)
SCHEDULE-5
UNSECURED LOANS
Short Term Loans
From Others - 100.00
Other Loans
From Banks 171.56 189.24
From Others 155.00 -
326.56 289.24
Advances from Others - 17420.55
326.56 17709.79
Amount repayable within one year Rs. 72.02 Lacs (Previous year Rs. 169.35 Lacs)
SCHEDULE-6
DEFERRED TAX LIABILITY

Movement during the year (255.25) 1004.98
Deferred Tax Asset
Impact of transitional liabililty on employee benefits - (53.99)
Movement during the year (3146.39) (174.04)
Net Deferred Tax Liability 20.07 3421.71

MAX INDIA LIMITED

SCHEDULE-7
FIXED ASSETS
(Refer Notes A4, A5, A6, A13, A15, B2, B5 and B36 on Schedule 26) (RS. LACS)
Particulars As at Additions Deletions/ Translation As at As at For the Deletions/ Translation As at As at As at
April 1, Adjustments Reserve March 31, April 1, Year Adjustments Reserve March 31, March 31, March 31,
2008 2009 2008 2009 2009 2008
Tangible Assets
Land (Freehold) 83.46 127.26 - - 210.72 - - - - - 210.72 83.46
Land (Leasehold) 1741.92 4515.70 - - 6257.62 - - - - - 6257.62 1741.92
Building 12878.16 365.50 - - 13243.66 846.16 259.11 - - 1105.27 12138.39 12032.00
Leasehold Improvements 9956.54 11552.70 103.95 - 21405.29 4044.60 2132.80 60.02 - 6117.38 15287.91 5911.94
Plant and Machinery 36459.36 1217.88 13.54 - 37663.70 8212.87 2113.15 5.22 - 10320.80 27342.90 28246.49
Vehicles 1288.71 198.36 351.40 1.03 1136.70 482.61 155.46 240.50 0.53 398.10 738.60 806.10
Furniture, Fittings and
Equipments 16465.10 10630.28 324.17 8.91 26780.12 7634.51 3606.99 237.26 7.10 11011.34 15768.78 8830.59
Intangible Assets
Software 4599.23 2604.32 - - 7203.55 2440.17 1404.38 - - 3844.55 3359.00 2159.06
Goodwill* 7389.82 - 403.63 - 6986.19 - - - - - 6986.19 7389.82
Technical Know-how 855.51 - - - 855.51 796.84 29.03 - - 825.87 29.64 58.67
Total 91717.81 31212.00 1196.69 9.94 121743.06 24457.76 9700.92 543.00 7.63 33623.31 88119.75 67260.05
Previous year 78476.19 15220.79 1895.74 (83.43) 91717.81 18870.52 6634.09 1013.45 (33.40) 24457.76
93030.13 71822.61
* arising on consolidation
Notes:-
a) Additions include:
- Interest capitalised Nil (Previous year Rs. 32.73 Lacs).
- Pre-Operative expenses capitalised Rs. 26.64 Lacs (Previous year Rs. 185.94).
- Foreign Exchange Fluctuations Nil (Previous year Rs. 41.27 Lacs).
b) Plant and Machinery includes an amount of Rs. 135.08 Lacs (Previous year Rs. 135.08 Lacs) paid to PSEB for drawing a power line representing assets not owned by the
Company. The same has been depreciated over a period of five years.
c) Vehicles includes vehicles hypothecated amounting to Rs. 306.15 Lacs (Previous year Rs. 302.38 Lacs).
d) Capital work in progress includes:
- Capital Advances Rs. 1373.48 Lacs (Previous year Rs. 3712.21 Lacs)
- Pre-Operative expenses pending allocation and capitalisation Rs. 125.45 Lacs (Previous year Rs. 0.98 Lacs).
e) Leasehold Improvements represents civil and other improvements at Group’s leased premises.

MAX INDIA LIMITED

(RS. LACS)
As at As at
March 31, 2009 March 31, 2008
SCHEDULE-8
INVESTMENTS
(Refer Notes A7, B1, B25 and B26 on Schedule 26)
Life Insurance Business:

a) Long Term-Non Trade, at cost
(Quoted)
Government Securities1 208170.77 114510.36
Equity Shares2 142779.59 98284.55
Bonds3 137888.58 93833.94
Others - 132.05
(Unquoted)
Term Deposit 1113.54 3053.79
b) Current-Non Trade, at cost
(Quoted)
Government Securities 2731.98 1159.09
Bonds 4099.42 10324.59
(Unquoted)
Units in Mutual Fund4 3600.00 12608.96
Commercial Paper/Certificate of Deposit 25862.98 21167.82
Term Deposit 14284.21 2413.23
540531.07 357488.38
Other Business:
a) Long Term-Trade, at cost
(Unquoted)
b) Long Term-Non Trade, at cost
(Quoted)
c) Current-Non Trade, at cost
(Unquoted)
- Unutilised monies raised through placement to QIBs 2009.84 75730.39
- Unutilised monies raised through preferential issue 8355.81 19156.04
- Others 12435.72 31251.61
23257.77 126539.44
563788.84 484027.82
Aggregate value of quoted investments 495670.99 318245.23
Market value of quoted investments 520684.99 333624.45
1 Includes Rs. 186278.37 Lacs (Previous year Rs. 101253.46 Lacs) earmarked for Life Insurance Policyholders
2 Net of credit in fair value change account amounting to Rs. (-) 78.49 Lacs (Previous year Rs. 856.04 Lacs)
3 Includes Rs. 129490.76 Lacs (Previous year Rs. 95214.43 Lacs) earmarked for Life Insurance Policyholders
4 Net of credit in fair value change account amounting to Nil (Previous year Rs. 69.41 Lacs)

MAX INDIA LIMITED

(RS. LACS)
As at As at
March 31, 2009 March 31, 2008
SCHEDULE-9
INVENTORIES
(Refer Note A8 on Schedule 26)
Manufacturing Activities
Raw Materials in Stores/Transit 1577.01 1582.05
Stores and Spares 455.41 388.03
Trading Activities
Stock-in-trade 1258.62 1105.60
Construction Activities
Work in Process 0.30 -
4063.23 3866.45
SCHEDULE-10
SUNDRY DEBTORS
(Unsecured)
Debts exceeding six months
Less: Provision for Doubtful Debts (806.19) 11168.79 (484.66)
Other Debts
Considered Doubtful 22.89 -
Less: Provision for Doubtful Debts (22.89) 16178.96 -
27347.75 24119.94
Amount due from directors during the year Nil (Previous year Rs. 0.11 Lacs)
Maximum amount outstanding from directors during the year Rs. 0.11 lacs (Previous year Rs. 0.11 Lacs)
SCHEDULE-11

Remittance in Transit * 7128.88 -
Balances with Scheduled Banks
In Dividend Accounts - 9.10
In Debenture Interest Accounts 12.82 14.79
In Fixed Deposit Accounts** 6553.28 36.60
Balances with Non-Scheduled Banks
22836.87 3197.56
* Represents amounts receivable against redemption of units in mutual funds
** held under lien by various authorities Rs. 38.28 Lacs (Previous year Rs. 35.60 Lacs)

MAX INDIA LIMITED

(RS. LACS)
As at As at
March 31, 2009 March 31, 2008
SCHEDULE-12
Interest Receivable***
Less: Provision for Doubtful Interest (23.53) 6816.14 (23.53)
6816.14 4750.44
*** Includes interest accrued on investments Rs. 5609.91 Lacs (Previous year Rs. 4316.52 Lacs)
SCHEDULE-13
LOANS AND ADVANCES
Secured
Housing Loans 4.18 4.89
Loans to Policyholders 482.67 287.72
Unsecured
Advances recoverable in cash or in
kind or for value to be received
Loans to Employees 19.25 16.54
Other Loans 7986.56 4877.89
Inter Corporate Deposits
Considered Good 800.00 -
Balance with Excise Authorities 10928.35 9728.27
Prepaid Expenses 11407.44 3599.91
Security Deposits
Less: Provision for Doubtful Deposits (36.00) 8027.00 (36.00)
Share Application Money Pending Allotment
- Companies under the same management 800.00 -
Advance Tax
Income Tax 5505.80 7483.31
7912.28
Less: Provision for Tax
Income Tax (3937.78) (5718.76)
Wealth Tax (8.36) (7.41)
Fringe Benefit Tax (2412.04) (905.21)
(6358.18) 1554.10
Other Current Assets - Unit Linked 16280.04 18237.98
71221.65 52458.30

MAX INDIA LIMITED

(RS. LACS)
As at As at
March 31, 2009 March 31, 2008
Amount due from directors 0.54 622.36
Maximum amount outstanding during the year from directors 807.87 622.36
SCHEDULE-14
CURRENT LIABILITIES
Acceptances - 26.88
Sundry Creditors
Total outstanding dues of micro enterprises and small enterprises 79.70 -
and small enterprises 48574.96 36707.93
Advances From Policyholders 11133.04 13555.15
Claims Outstanding (Includes Claims Pending Investigation) 1320.37 842.40
Advance from Customers 1357.97 1268.49
Investor Education and Protection Fund
Unpaid Dividend - 9.10
Unpaid Debenture Interest 10.24 12.19
Interest Accrued But Not Due 113.10 129.20
Other Current Liabilities - Unit Linked 1228.75 5040.79
67954.27 61669.79
SCHEDULE-15
PROVISIONS
(Refer Notes A12, A20, B11 and B18 on Schedule 26)
Leave Encashment 647.67 517.20

Gratuity 643.39 373.65
Dividend on Preference Shares 839.73 -
Corporate Dividend Tax 142.71 -
2273.50 890.85
SCHEDULE-16
- Preliminary, Share and Debenture Issue Expenses 0.07 0.66

- Deferred Employee Compensation 385.17 645.17
385.24 645.83

MAX INDIA LIMITED

(RS. LACS)
March 31, 2009 March 31, 2008
SCHEDULE-17
SERVICE INCOME
Life Insurance Premium 385725.90 271460.45

Less: Premium on Reinsurance Ceded (3822.54) (2205.17)
381903.36 269255.28
Healthcare Business 1 26455.88 21549.76
Construction Activities 715.94 -
Clinical Research Business 2 1397.02 1029.92
Placement Revenue 114.56 240.56
Other Services 3 20.11 144.51
410606.87 292220.03
1 Tax deducted at source Rs. 251.48 Lacs (Previous year Rs. 201.78 Lacs) and excludes discounts given.
2 Tax deducted at source Rs. 50.32 Lacs (Previous year Rs. 24.72 Lacs)
3 Tax deducted at source Rs. 0.46 Lacs (Previous year Rs. 4.55 Lacs)
SCHEDULE-18
INCOME FROM INVESTMENT ACTIVITIES
Dividend Income from

Non Trade Investments-Long term 1361.97 240.75
Non Trade Investments-Current 3922.95 5284.92 6733.41
Interest on Loans and Non Trade Investments (Gross) 4
Government Securities 16268.82 9149.82
Bonds 5708.07 3883.12
Loans 1018.19 494.10
Fixed Deposits 1335.24 611.36
Others 150.74 24481.06 73.53
Amortisation of Discount/(Premium) on Non Trade Investments 1232.09 57.72
Profit on Sale of Investments-Long term - 8942.95
Profit on Sale of Investments-Current 2026.42 569.66
Unrealised Gain on Investments - 1736.42
33024.49 32492.84
4 Tax Deducted at Source Rs. 197.42 Lacs (Previous year Rs. 85.81 Lacs)
SCHEDULE-19
OTHER INCOME
Net Gain on Foreign Exchange Fluctuation - 180.02
Miscellaneous Income * 4898.47 3799.11
5352.28 4157.38
*Tax deducted at source Rs. 42.07 Lacs (Previous year Rs. 99.07 Lacs)

MAX INDIA LIMITED

(RS. LACS)
March 31, 2009 March 31, 2008
SCHEDULE-20
INCREASE/(DECREASE) IN INVENTORY
Opening Stock
790.76 287.27
Less: Closing Stock
771.89 790.76
Net Increase / (Decrease) (18.87) 503.49
SCHEDULE-21
MANUFACTURING, TRADING AND DIRECT EXPENSES
Manufacturing and Trading Expenses
Raw Materials Consumed 23338.53 19117.82

Goods Purchased for Resale 1.50 -
Excise Duty on Scrap 164.49 265.01
Stores and Spares Consumed 469.89 386.55
Packing Material 1051.67 888.59
Freight Inward 45.08 41.05
Repairs and Maintenance-Plant and Machinery 153.12 98.54
Processing Charges 46.63 90.80
27588.04 22943.98
Direct Expenses
Life Insurance Business
Agents’ Commission 39157.67 38558.87
Increase in Policy Reserves 175795.76 166033.55
Unrealised loss on Investments 14410.79 -
Loss on Sale of Investments-Long term (net) 29461.42 -
Claims/other benefits 22082.06 13600.80
Policy Issuance Costs 13209.47 14045.22
Agency Training and Recruitment Expenses 3056.65 1647.04
297173.82 233885.48
Healthcare Business
Consumption of Medical Consumables 4909.41 3838.10
Cost of Goods Sold 4567.08 3605.54
Professional and Consultancy Fee 5038.17 3709.49
Outside Lab Investigation 262.08 160.17
Repairs and Maintenance-Medical Equipments 492.86 341.68
Patient Catering Expenses 316.66 244.64
15586.26 11899.62
Healthcare Staffing Business
Candidate Related Expenses 28.56 81.17
Sub-Contracting Expenses 715.94 -
Clinical Research Business
Clinical Trial Expenses (Refer Note B30 on Schedule 26) 401.21 266.89
341493.83 269077.14

MAX INDIA LIMITED

(RS. LACS)
March 31, 2009 March 31, 2008
SCHEDULE-22
PERSONNEL EXPENSES
Salaries, Wages and Bonus * 70740.97 38995.74

Recruitment and Training Expenses 8561.31 3809.10
84375.93 45483.79
* Net of Employee Compensation Expenses written back amounting to Rs. 180.82 Lacs
(Previous year Nil) pertaining to earlier years
SCHEDULE-23
GENERAL AND ADMINISTRATION EXPENSES
(Refer Notes B22, B32, B35, B36 and B37 on Schedule 26)
Rent 8766.07 4921.96

Insurance 638.34 463.52
Building 354.31 205.48
Others 9686.58 6271.69
Electricity and Water 3667.99 2338.99
Business Promotion 146.04 134.50
Trade Discount 476.52 324.33
Selling and Distribution 2836.10 2366.51
Branding, Advertisement and Publicity 16053.17 5400.74
Net Loss on Sale/Disposal of Fixed Assets 85.52 188.14
Loss on Sale of Investments-Long term (net) - 104.94
Provision for Diminution in Investments 422.49 51.38
Goodwill written off 403.63 -
Debts Written Off 5.82 3.70
Amortisation of Miscellaneous Expenditure 0.59 19.50
Net Loss on Foreign Exchange Fluctuation 64.81 -
Miscellaneous 3575.36 1797.73
Less: Overheads Recovered * (76.73) (33.62)
84198.22 39938.56

MAX INDIA LIMITED

(RS. LACS)
March 31, 2009 March 31, 2008
SCHEDULE-24
FINANCIAL EXPENSES
Interest on:
Short Term Loan 19.48 1.57
Acceptances 32.02 41.54
Term Loans 3371.07 3762.13
Working Capital Facilities 439.15 313.46
Others 114.21 40.23
Finance Charges 24.00 10.71
5057.40 4731.04
SCHEDULE-25
TAX EXPENSE
Current Year Tax

Income Tax 79.86 106.39
Fringe Benefits Tax 930.61 727.21
Add:-
Deferred Tax (3401.64) 830.94
(2383.56) 1672.13

MAX INDIA LIMITED

SCHEDULE – 26
The consolidated financial statements are prepared to comply in material aspects, except as disclosed in the accounting policies
given below with all the applicable accounting principles in India, the applicable accounting standards notified u/s 211(3C) of the
Companies Act, 1956 and the relevant provisions of the Companies Act, 1956 in so far as applicable to the consolidated financial
statements.
The financial statements of Max New York Life Insurance Company Limited, a subsidiary company, which are included in these
Consolidated Financial Statements, are prepared in accordance with the accounting principles prescribed by the Insurance Regulatory
and Development Authority (Preparation of Financial Statement and Auditor’s Report of Insurance Companies) Regulations, 2002,
the accounting standards issued by the Institute of Chartered Accountants of India and the requirements of the Insurance Act
1938, Insurance Regulatory and Development Authority Act, 1999, and the regulations framed thereunder and the Companies Act,
1956, to the extent applicable and the practices prevailing within the insurance industry in India.
2 Basis of Consolidation
The consolidated financial statements are prepared in accordance with the principles and procedures laid down by the accounting
standard on Consolidated Financial Statements issued by the ICAI.
The subsidiaries of Max India Ltd. (“Company”) have been defined as those entities in which the Company owns directly or indirectly
more than one half of the voting power or otherwise has power to exercise control over the composition of the Board of Directors
of such entities. Max India Ltd. and its subsidiaries are herein after referred to as Group Companies or Group.
The financial statements of subsidiaries are consolidated from the date on which the control is transferred to a Group Company and
are excluded from consolidation from the date such control ceases. The financial statements of all Group Companies have been
combined on a line-by-line basis by adding together the book values of like items of assets, liabilities, income and expenses after
eliminating all intra-group balances and transactions and resulting unrealised gains/losses. The consolidated financial statements
are prepared applying uniform accounting policies in use by the Company.
(a) Life Insurance Business: Premium is recognised as income when due. Uncollected premium on lapsed policies is not recognised
as income until reinstated. For linked business, premium income is recognized when the associated units are allotted. In case
of linked business, top-up premiums (i.e. premium paid in excess of annual target premium as per policy contract) are
recognised as single premium. Fees on linked policies including fund charges, etc are recovered from the linked fund in
accordance with the terms and conditions of the policies.
Reinsurance premium ceded is accounted at the time of recognition of premium income in accordance with the treaty or in-
principle arrangement with the re-insurers.
(b) Clinical Research Business: Revenue from services is recognised by reference to the stage of completion of clinical study
projects subscribed with pharmaceutical companies.
Revenue from services is recognised with reference to the stage of completion of clinical data management service projects
subscribed with pharmaceutical companies.
(c) Healthcare Business: Revenue from healthcare services is recognised on the performance of related service and includes
pharmacy services on patients undergoing treatment and pending billing.
Revenue from pharmacy sale is recognised on delivery of goods.
Income from Healthcare Service Providers is recognised on the performance of related services as per terms of contracts.
Income from Educational Programmes is recognised on accrual basis.

MAX INDIA LIMITED

(d) Healthcare Staffing Business:
(i) Revenue from overseas placement of healthcare staff is recognized on the basis of time sheets received from customers
on accrual basis.
(ii) Revenue from training is recognized at the time of enrolment on accrual basis.
(iii) Interest Income is recognized on a time proportion basis taking into account the amounts invested and the rate of
interest. Income is stated in full with the tax thereon being accounted for under advance tax.
(e) Lease Rentals
In respect of lease rentals on operating leases, revenue is recognised proportionately over the period of the related agreements.
(f) Export sales are accounted for on the basis of the date of bill of lading/airway bill. Other sales are accounted for at ex-
factory prices on transfer of risks and rewards.
(g) Income from investments is credited to revenue in the year in which it accrues. Income is stated in full with the tax thereon
being accounted for under advance tax.
(h) Dividend is recognised as and when the right to receive such payment is established.
4 Fixed Assets
(a) Fixed Assets are stated at their original cost including freight, duties (net of CENVAT), taxes and other incidental expenses
(b) Expenses of revenue nature, which can be regarded as incidental and related to project set-up are transferred to “Pre-
operative Expenses Pending Capitalisation”. These expenses are allocated to fixed assets/deferred revenue in the year of
commencement of the related project.
(c) Assets, which are revalued, are stated at the revalued amounts. The resultant increase in carrying amounts is credited to the
revaluation reserve. Depreciation relating to the revalued amounts is adjusted against the revaluation reserve.
5 Borrowing Costs
Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised as
part of the cost of that asset in accordance with Accounting Standard 16 notified u/s 211(3C) of the Companies Act, 1956 on
“Borrowing Costs”. Other borrowing costs are recognized as an expense in the period in which they are incurred. Capitalisation of
borrowing costs ceases when substantially all activities necessary to prepare the qualifying assets for its intended use or sale are
complete.
6 Depreciation
(a) Depreciation is charged on straight-line method on a pro-rata basis at rates estimated by the management based on the
economic useful life of the assets, which are not lower than the rates prescribed under Schedule XIV to the Companies Act,
1956. In life insurance business, depreciation is provided for the full month in the month of acquisition of the related asset
and no depreciation is provided in the month of sale/disposal of the asset.
(b) Leasehold improvements are depreciated over respective lease periods.
(c) Assets costing not more than Rs. 5,000 each individually are depreciated at 100%.
(d) Intangible assets are amortised over a period of 3-6 years based on management’s estimate of economic useful life of the assets.
7 Investments
(a) Investments are classified into current investments and long-term investments. The cost of investments includes acquisition
(b) Long-term investments are valued at cost. Provision for diminution is made to recognise a decline, other than temporary, in
the carrying value of each investment.
(c) Life insurance business:
Investments are made in accordance with the Insurance Act, 1938 and the Insurance Regulatory and Development Authority
(Investment) Regulations, 2000.
Investments are recorded at cost on date of purchase, which includes brokerage and statutory levies, if any and excludes
interest paid, if any, on purchase. Diminution in the value of investment, other than temporary decline, is charged to revenue
and profit and loss account as applicable.

MAX INDIA LIMITED

i) Classification
Investments intended to be held for a period less than twelve months or maturing within twelve months from the
balance sheet date are classified as short term investments. All other investments are classified as long-term investments.
ii) Valuation - shareholders’ investments and non-linked policyholders’ investments
Debt securities, which include government securities, are considered as ‘held to maturity’ and measured at historical
cost. The premium/discount, if any, on purchase of debt securities is recognised and amortised in the profit and loss
account, as the case may be, over the remaining period to maturity on the basis of their intrinsic yield.
Policy loans are valued at historical cost net of repayments, capitalised interest and are subject to impairment, if any.
Listed equity shares, as at balance sheet date, are valued at fair value, being the last quoted closing price on the
National Stock Exchange (NSE) and in case the same is not available, then on the Stock Exchange, Mumbai (BSE).
Unlisted Equity shares are valued at historical cost subject to provision for diminution. Investments in mutual fund units
are valued at net asset value of the respective funds as at balance sheet date.
iii) Valuation – Linked Investments
Government securities are valued at the prices obtained from CRISIL (Credit Rating Information Services of India Limited).
Debt securities other than Government Securities are valued on the basis of Bond Valuer (CRISIL). Listed equity shares
are valued at fair value, being the last quoted closing price on NSE and in case the same is not available, then on the
BSE. Mutual fund units are taken at the previous day’s net asset values.
iv) Transfer of Investments
Investments in debt securities are transferred from shareholders to policyholders at net amortised cost. Investments
other than debt securities are transferred from shareholders to policyholders at lower of book value or market value.
Transfer of investments between unit linked funds are effected at market price on date of transfer.
8 Inventories
(a) Inventories are valued at lower of cost and net realisable value. Cost for this purpose is calculated on a weighted average
method except in the case of medical supplies where cost is calculated on First In First Out basis. In respect of finished goods
and work in process, appropriate overheads are loaded.
(b) Stock of securities is valued at lower of cost and market value, determined category wise. Cost for this purpose is calculated
under First In First Out Method.
9 Capital Subsidy
Capital Subsidies, received under the state capital subsidy scheme, are accounted for as capital reserve.
10 Employee Stock Option Scheme
Max India Limited
(a) The value of options is equal to the aggregate of the intrinsic value of the options granted. Intrinsic value is the option
discount represented by the excess of market price on grant date over the exercise price of the option and is amortised on a
straight line method basis over the vesting period in line with the Securities and Exchange Board of India (SEBI) Guidelines.
(b) As and when the options are exercised, the same will be accounted for as paid up capital to the extent of the face value and
Share Premium to the extent of excess of market price over face value on grant date.
(c) Options that lapse are reversed by a credit to employee compensation expense equal to the amortised portion of the value of
Max New York Life Insurance Company Limited
The value of options is equal to the aggregate of the intrinsic value of the options granted. Intrinsic value is the option discount
represented by excess of market price, which is determined by the independent valuer, over the exercise price. The intrinsic value of
the options is amortised on a straight line basis over the vesting period. As and when the options are exercised, the same are
accounted for as paid up capital to the extent of the face value. Options that lapse are reversed by a credit to employee compensation
expense equal to the amortised portion of the value of the lapsed options and a credit to deferred employee compensation expense
equal to the unamortised option.

MAX INDIA LIMITED

Max Healthcare Institute Limited
The value of options is equal to the aggregate of the fair value of the options granted. Fair value is the face value of the paid up
equity shares at which the share capital was introduced last by the Company or the net asset value, which ever is higher. As and
when the options are exercised, the same are accounted for as paid up capital to the extent of the face value. Options that last are
reversed by a credit to employee compensation expense equal to the amortised portion of the value of the lapsed options and a
credit to deferred employee compensation expense equal to the unamortised options.
11 Taxation
related revenue and expenses arise. Provision for tax consists of current tax, fringe benefits tax and deferred tax. A provision is
made for income taxes annually based on the tax liability computed at rates as per local laws of the country in which each Group
Company is incorporated after considering applicable tax allowances and exemptions. Provisions are recorded when it is estimated
that a liability due to disallowances or other matters is probable.
The differences that result between the profit offered for income taxes and the profit as per 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 accounting period and reverse in another, based on the tax effect of the aggregate amount being considered. Deferred tax
assets are recognised only if there is virtual certainty that they will be realized and are reviewed for the appropriateness of their
respective carrying values at each balance sheet date.
(a) Defined Contribution Plan
i) Certain employees of the Company are participants of a defined superannuation plan. The Company makes contributions
under the superannuation plan to “Max India Limited Superannuation Fund” based on a specified percentage of each
covered employee’s salary.
ii) The Company makes monthly contributions to the “Max India Limited Employees’ Providend Fund Trust” which is based
on a specified percentage of the covered employee’s salary. This fund is administered through trustees and the Company’s
contributions thereto are charged to revenue every year.
(b) Defined Benefit Plans
i) The liability in respect of Gratuity is provided for on the basis of an actuarial valuation carried out at the year-end using
Projected Unit Credit Method. Actuarial gains and losses are recognized in full in the Profit and Loss Account for the
year in which they occur. The Company has a recognised Trust for Gratuity benefits, “Max India Limited Employees’
Gratuity Fund” to administer the Gratuity funds. The Trust has taken Master policy with the Life Insurance Corporation
of India to cover its liability towards employees’ Gratuity. The Gratuity obligation recognized in the Balance Sheet
represents the present value of the defined benefit obligation as adjusted for unrecognized past service cost and as
reduced by the fair value of Gratuity Fund.
ii) The liability in respect of Leave Encashment is provided for on the basis of actuarial valuation carried out at the year-
end for long term compensating absences using Projected Unit Credit Method. Actuarial gains and losses are recognized
in full in the Profit and Loss Account for the year in which they occur. Short term compensated absences are provided
for based on estimates.
Other Group Companies within India have various schemes of retirement benefits namely provident fund, superannuation
and gratuity. Contributions made to these benefit plans are charged to revenue every year. Accruals for gratuity and leave
encashment are made on the basis of actuarial valuation done at the year end.
Group Companies situated outside India have employee benefit schemes as per their respective local laws.
(a) Monetary assets and liabilities related to foreign currency transactions remaining unsettled at the end of the year are translated
at year end rates.

MAX INDIA LIMITED

(b) The difference in translation of monetary assets and liabilities and realised gains and losses on foreign exchange transactions
(c) Exchange difference in respect of liabilities incurred to acquire fixed assets are recognised in the profit and loss account.
(d) For consolidation of accounts, in respect of Group Companies situated outside India, the assets and liabilities are translated
at closing rate whereas the revenue and expenses are translated using the average rate during the year. The resultant gain or
loss arising out of such translation is recognised in a separate reserve “Foreign Currency Translation Reserve” as required
under Accounting Standard-11 revised.
(a) Preliminary and share issue expenses are amortised over a period of 5 to 10 years, except cost incurred on raising of funds,
which is being amortised over the life of the respective financial instrument.
(b) Deferred employee compensation expense is amortised over the vesting period.
(c) Other deferred revenue expenditure is amortised from the year they have been incurred/related projects commence operations,
over 3 to 5 years based on the period over which future benefits are expected to be received.
15 Leases
Assets given under operating lease are shown in the balance sheet under fixed assets and are depreciated on a basis consistent with
the depreciation policy of the company. Lease income is recognised in the profit and loss account on accrual basis.
Assets acquired on finance lease are recognised in the financial statements at an amount equal to the fair value of the leased asset
at the inception of the lease. The depreciation policy for such assets is consistent with that for depreciable assets that are owned
by the Group.
Operating lease expense is recognised in the profit and loss account on a straight-line basis over the lease term.
16 Benefits for Life Insurance Policy Holders
Benefits paid consist of the policy benefit amount and claim settlement costs, if any. Maturity claims are accounted when due for
payment. Surrender, death and other claims are recognised for, when intimated. An additional provision is made, on the basis of
actuarial estimate, for the benefits which are incurred but not reported. Repudiated claims disputed before judicial authorities are
provided for based on management prudence considering the facts and evidences available in respect of such claims. Reinsurance
recoverable, where applicable, are accounted in the same period. Withdrawals under linked policies are accounted in respective
schemes along with cancellation of associated units.
17 Policy Holders’ Acquisition Cost
Acquisition costs are expenses incurred to solicit and underwrite insurance contracts such as commission, medical fee etc. and are
expensed in the year in which they are incurred.
18 Liability for Life Insurance Policies in Force
The estimated liability for life policies in force is determined by the appointed actuary of Max New York Life Insurance Company
Ltd. (“MNYL”), pursuant to his annual investigation of the life insurance business, using appropriate methods and assumptions that
conform with regulations issued by Insurance Regulatory and Development Authority (Actuarial Report and Abstract) Regulations,
2000 and Professional Guidance notes issued by the Actuarial Society of India (ASI). The liability is so calculated that together with
future premium payments and investment income, all future claims (including bonus entitlements to policyholders) and expenses
are met. Liabilities, if any, as determined by appointed actuary, in respect of Linked policies which have lapsed are maintained till
the expiry of the revival period and shown under funds for future appropriation. Liabilities under linked policies comprise of fund
value and non unit liability for meeting mortality and morbidity risk, which is based on actuarial valuation done by appointed
actuary.
19 Contributions to Policyholders’ Account (Technical Account)
Contribution to Policyholders’ Account (Technical Account) is made as decided by the board of directors of MNYL and approved by
the Shareholders.

MAX INDIA LIMITED

20 Provision and Contingencies
A provision is recognized when there is a present obligation as a result of past event and it is probable that an outflow of a resource
will be required to settle the obligation, in respect of which a reliable estimate can be made. These are reviewed at each Balance
Sheet date and adjusted to reflect the current estimates.
Contingent liabilities are disclosed after an evaluation of the fact and legal aspects of the matter involved.
21 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.

MAX INDIA LIMITED

B. NOTES TO THE ACCOUNTS
1 The consolidated financial statements have been prepared in accordance with Accounting Standard 21, Consolidated Financial
Statements, issued by the ICAI. The consolidated financial statements comprises the financial statements of Max India Ltd. and its
subsidiaries, listed below:
Name of the Subsidiary Country of Proportion of Proportion of
Incorporation ownership as at ownership as at
March 31, 2009 March 31, 2008
Indian Subsidiaries
1 Max New York Life Insurance Company Ltd. India 73.69% 73.47%
2 Max Healthcare Institute Ltd. India 70.04% 70.06%
3 Max Medical Services Ltd. 1 India 100% 100%
4 Alps Hospital Ltd. 2 India 100% 100%
5 Max Neeman Medical International Ltd. 5 India 100% 100%
6 Pharmax Corporation Ltd. India 85.20% 85.20%
7 Max Ateev Ltd. India 100% 100%
8 Max HealthStaff International Ltd. India 100% 100%
Foreign Subsidiaries
1 Neeman Medical International BV Netherlands 100% 100%
2 Neeman Medical International NV 3 Netherlands 100% 100%
3 Max Neeman Medical International Inc. 4 United States of America 100% 100%
4 Max UK Ltd. United Kingdom 100% 100%
Notes:
1 Held through Max Healthcare Institute Ltd.
2 Formerly Alps Hospital Pvt. Ltd.
Held through Max Medical Services Ltd.
3 Held through Neeman Medical International BV, Netherlands
4 Formerly Neeman Medical International Inc.
Held through Neeman Medical International NV, Netherlands
5 Formerly Neeman Medical International (Asia) Ltd.
2 Reserves shown in the consolidated balance sheet represent the Group’s share in the respective reserves of the Group Companies.
Goodwill arising on consolidation is shown under fixed assets (Refer Schedule 7).
3 The movement in share of minority interests is as follows:
(RS. LACS)
Name of the Subsidiary Balance as on Increase in Profit/(Loss) Adjustment* Balance as on
April 1, 2008 Capital for the year March 31, 2009
Max New York Life Insurance Co. Ltd. 11215.25 19500.00 (10339.67) 136.67 20512.25
Max Healthcare Institute Ltd. 6048.06 5.00 1367.46 (294.84) 7125.68
Total 17263.31 19505.00 (8972.21) (158.17) 27637.93
* The adjustments in minority interest consist of:
(i) Changes in the shareholding pattern during the year.
(ii) Impact of dividend on preference shares and corporate dividend tax. (refer note B11 below)

MAX INDIA LIMITED

4 Contingent Liabilities
(RS. LACS)
a) Corporate guarantees * 11500.00 11500.00
b) Claims not acknowledged as debts:
- Excise Duty 855.26 808.87
- Customs 364.09 413.39
- Income Tax —— Refer Note B7 ——-
- Service Tax 4166.81 325.90
- VAT - 109.01
- Other 1160.91 1192.37
- Potential liability in respect of repudiated policyholders claims 283.14 61.31
c) Bank Guarantees 41.00 37.00
d) Letter of Credit outstanding 205.38 284.83
e) Arrears of Dividend on Preference Shares 41.82 379.98
f) Corporate Dividend Tax on arrears of Dividend on Preference Shares 7.11 64.58
g) Liability on assumed IRR (Also refer Note B11 below) 4053.42 1594.31
* Loans of Rs. 2195.00 Lacs (Previous year Rs. 595.00 Lacs) are outstanding against the aforesaid corporate guarantees
5 Capital Commitments
(RS. LACS)
Estimated amount of contracts remaining to be executed on capital 5761.48 8912.43
account and not provided for
Balance value of contracts 4388.00 5200.22
6 Concession in Custom Duty availed on Capital equipment imported during the year against export obligation undertaken under
‘Export Promotion Capital Goods’ Scheme is Rs. 86.55 Lacs (Previous year Rs. 170.28 Lacs).
Movement of EPCG export obligation is given below: (RS. LACS)
Obligation as at April 1, 2008 19852.00 21606.00
Exports made during the year 3767.00 3327.00
Obligation as at March 31, 2009 16792.00 19852.00
7 Income Tax Cases

Max India Ltd.
(a) In the case of an erstwhile subsidiary of the Company, Max Telecom Ventures Ltd. (“MTVL”) (since merged with the Company
with effect from December 1, 2005), a demand of Rs. 9503.93 Lacs (Previous year Rs. 9503.93 Lacs) was raised by the income
tax authorities for the assessment year 1998-99 in connection with capital gains realized by MTVL from the sale of shares of
Hutchison Max Telecom Limited by holding that the sale transaction pertains to previous period relevant to assessment year
1998-99 and by denying exemption under section 10(23G) of the Income-tax Act, 1961. On appeal by MTVL, the CIT (Appeals)
while holding that the sale transaction pertains to previous period relevant to assessment year 1998-99, quashed the order of
the Assessing Officer regarding denial of exemption under section 10(23G) and the demand was cancelled. The tax authorities
have filed an appeal against this order with the Income-Tax Appellate Tribunal (“ITAT”), which appeal is pending as on date.
Subsequently, in the next assessment year, i.e. 1999-00, the above-mentioned transaction was once again sought to be taxed

MAX INDIA LIMITED

both as capital gains and under a different head of income (i.e., business income) on a protective basis by the Assessing
Officer as MTVL had asked the tax authorities to treat the transaction as that arising in assessment year 1999-00 and not in
assessment year 1998-99. This, along with a few other additions, resulted in creation of a further demand of Rs. 25630.03
Lacs (Previous year Rs. 25630.63 Lacs) which included the demand of Rs. 25002.53 Lacs (Rs. 25002.53 Lacs) on protective
basis. On appeal by MTVL, the CIT (Appeals) decided in favor of MTVL and the demand was cancelled. The tax authorities have
filed appeal against this order with ITAT, which appeal is pending as on date.
MTVL had also filed an appeal before ITAT for assessment year 1998-99 contending that the aforesaid sale transaction
pertains to Previous Period relevant to assessment year 1999-2000. This appeal had been disposed off by ITAT by applying a
circular of tax department applicable only to capital gains and holding, as a result, that the transaction of sale of shares
pertains to previous period relevant to assessment year 1998-99. However, the Tax authorities filed a petition before the ITAT
requesting a review of the said order of the ITAT on the ground that all the three appeals pertaining to the aforesaid sale
transaction should have been clubbed and heard together. The said petition of the Department was accepted by the ITAT
which recalled its earlier order in the Company’s appeal for Assessment year 1998-99. Aggrieved, the Company filed a writ
petition to the Hon’ble High Court of Punjab and Haryana challenging the above action of ITAT on the ground that the same
was beyond jurisdiction. The Hon’ble High Court of Punjab and Haryana has admitted the writ petition and stayed the
operations of the order of ITAT accepting the petition filed by the Department. The ITAT has in the meanwhile adjourned sine-
die all the three appeals pending operation of the stay imposed by the Hon’ble High Court.
(b) The Company has received the following demands under section 156 of the Income Tax Act, 1961 relating to income tax assessments:
1999-2000 Nil 5.67
2000-2001 5.25 5.25
2001-2002 15.65 15.65
2002-2003 41.77 41.77
2003-2004 Nil Nil
2004-2005 0.76 0.76
2005-2006 Nil Nil
2006-2007 98.96 Nil
The above relate to certain disallowances and other matters and are in various stages of appeal with the CIT(Appeals)/ITAT.
Further, in the following cases, penalty under section 271(1)(c) of the Income Tax Act, 1961 has been levied for which the
Company is in appeal before ITAT.
1992-1993 18.78 19.05
1993-1994 14.63 14.63
Max Ateev Ltd. (“Max Ateev”)

There are certain income-tax proceedings pending against the Company at various stages of appeal, as per the detailed given below:
Assessment year Appeal Pending Before

2003-2004 CIT(Appeals)
The company is hopeful that the above appeals will be disposed off in its favour.

MAX INDIA LIMITED

Max Healthcare Institute Ltd.
Certain income-tax proceedings are pending against the Company as detailed below:-
(RS. LACS)
Assessment Year 2003-04 2004-05 2005-06 2006-07
Disallowances made by the Assessing Officer 1157.72 641.01 649.14 462.42
(1157.72) - (649.14) -
Appeal against the disallowance pending Before CIT (Appeals) CIT (Appeals) CIT (Appeals) CIT (Appeals)
Demand (if any) - - - -
Previous year’s figures are given in brackets.
The Company is hopeful that the above appeals would be disposed off in its favour.
Max New York Life Insurance Company Ltd. (“MNYL”)
For the assessment year 2002-2003, the Assessing Officer has reduced the returned loss of Rs. 6684.09 Lacs (Previous year
Rs. 6684.09 Lacs) to Rs. 6482.08 Lacs (Previous year Rs. 6482.08 Lacs) by making disallowance of Rs. 202.01 Lacs (Previous year
Rs. 202.01 Lacs) u/s 92CA(3) of the Income-tax Act, 1961 relating to Transfer Pricing. Similarly, for the Assessment years 2003-04
& 2004-05, the returned losses have been reduced from Rs. 7408.37 Lacs (Previous year Rs. 7408.37 Lacs) to Rs. 7331.92 Lacs
(Previous year Rs. 7331.92 Lacs) and from Rs. 7563.42 Lacs (Previous year Rs. 7563.42 Lacs) to Rs. 7285.17 Lacs (Previous year Rs.
7285.17 Lacs) respectively by the assessing officer by making similar disallowances Appeals against the above orders have been
filed to the CIT (Appeals), which is pending disposal. Further, for the assessment year 2005-06, the returned loss has been reduced
from Rs. 9427.20 Lacs to Rs. 8999.80 Lacs by making disallowance of Rs. 121.70 Lacs u/s 92CA(3) of the Income Tax Act, 1961
relating to Transfer Pricing and Rs. 105.70 Lacs due to disallowance of Income on sale of Investment. Appeal against the order has
been filed to CIT(Appeals). Further , in this order there was a mistake apparent from record in respect of returned loss of Rs. 200.00
Lacs against which rectification application u/s 154 of the Act has been filed.
Appeals against the above orders have been filed to the CIT (Appeals), which are pending disposal.
8 Loans
Max India Ltd.
a) Term loan - II from Yes Bank Ltd amounting to Rs. 428.57 Lacs (Previous year Rs. 714.29 Lacs) is secured by a first pari passu
charge on the fixed assets of the Company, both present and future.
b) Term loan - II from Punjab National Bank amounting to Rs. 3400.00 Lacs (Previous year Rs. 4000.00 Lacs) is secured by a first
pari passu charge on the fixed assets and second pari passu charge on the current assets of the Company, both present and
future.
c) Term loan from Oriental Bank of Commerce amounting to Rs. 3400.00 Lacs (Previous year Rs. 4000.00 Lacs) is secured by a
first pari passu charge on the fixed assets and second pari passu charge on the current assets of the Company, both present
and future.
d) Fund based working capital facilities from banks are secured by a first pari passu hypothecation charge on all current assets
and a second charge on immovable and movable fixed assets of the Company, both present and future.
Max Healthcare Institute Ltd. (“MHIL”)
(a) MHIL has availed term loans to finance its hospital projects and details of loans outstanding as on date are as follows:
(i) Rs. 9183.30 Lacs (Previous year Rs. 10061.10 Lacs) from Housing Developing Finance Corporation Ltd.
(ii) Rs. 6000.00 Lacs (Previous year Rs. 6000.00 Lacs) from Infrastructure Development Finance Co. Ltd.
(iii) Rs. 7312.50 Lacs (Previous year Rs. 7500.00 Lacs) from Export Import Bank of India
The above loans from financial institution are secured by way of:
- Equitable mortgage of the immovable properties of the company and a party having business arrangements with that company
- Hypothecation of movable fixed assets of the company and its subsidiary
- Corporate guarantees by the Company

MAX INDIA LIMITED

(b) Fund based working capital facility from Yes Bank for Rs. 1012.80 Lacs (Previous year Rs. 753.92 Lacs) is secured by way of
hypothecation of all current assets of the company and a party having business arrangements with that company.
Pharmax Corporation Limited (“Pharmax”)
Term loan from Canara Bank amounting to Rs. 848.03 Lacs (Previous year Rs. 1031.36 Lacs) availed by Pharmax is secured against
charge of monthly lease rentals receivable from various lessee and equitable mortgage of undivided share of freehold property at
Okhla, New Delhi.
9 During year ended March 31, 2008, the Company had issued 4,16,66,660 Equity Shares of Rs. 2/- each at a premium of Rs. 238/- per
share aggregating to Rs. 99999.98 Lacs to Qualified Institutional Buyers (“QIBs”) under Chapter XIII-A of the Securities & Exchange
Board of India (Disclosure and Investor Protection) Guidelines, 2000.
10 In 2003-04, the Company had signed an amendment to the Joint Venture Agreement (“JVA”) with New York Life International Inc.
(“NYLI”). In terms of the amended JVA, both the parties agreed that the Company shall not transfer or otherwise dispose its
shareholding to an extent of 24% of the paid up issued share capital (“Restricted Shares”) of Max New York Life Insurance Company
Ltd (“MNYL”) to any person other than NYLI. The parties also agreed that NYLI shall pay to the Company the aggregate par value
equal to 24% of the paid up issued share capital of MNYL from time to time. The aforesaid payment may be applied by NYLI to
purchase the Restricted Shares of MNYL from the Company, when and to the extent permitted pursuant to applicable laws by
March 2010 or become repayable thereafter. Pursuant to this amendment, the Company had received Rs. 17420.55 Lacs (Previous
year Rs. 17420.55 Lacs) in aggregate from NYLI till March 31, 2008.
Thereafter, on July 15, 2008, the Company amended the above mentioned JVA with NYLI. Under the new amended JVA, NYLI has an
option for 8 years to increase its shareholding in MNYL by 24% upto a maximum of 50%, subject to regulations. The option can be
exercised at a fair market value based formula defined as per the new amended JVA, less discount of 10%, as against a preferential
formula earlier. Also, the option deposit of Rs. 17420.55 Lacs received from NYLI in line with the terms of the amendment in 2003-
04 has been refunded on July 15, 2008.
11 During the previous year, Max Healthcare Institute Limited (MHIL) together with the Company had entered into a tripartite subscription
agreement dated June 29, 2007, for issue of equity and preference share capital, with International Finance Corporation, USA (IFC).
As per the agreement, IFC has subscribed to the share capital of MHIL amounting to Rs. 30,000.00 Lacs on July 28, 2007, as detailed below:
a. 90,90,909 Equity Shares of face value of Rs. 10/- each at a premium of Rs. 45/- each aggregating to Rs. 5000.00 Lacs.
b. 250,000,000, 8 years 2% Cumulative Partially Convertible Preference Shares of Rs. 10/- each aggregating to Rs. 25000.00 Lacs.
The Preference Shares carry a dividend rate of 2% which is cumulative in nature, payable until date of redemption or date of
purchase or conversion into equity shares, whichever is earlier. The earliest date of redemption or conversion or purchase is 3 years
from the date of issue of the said shares.
Also, the Preference Shares have been issued with a guaranteed internal rate of return (GIRR) of 11.25%. The said GIRR is inclusive
of 2% dividend rate, premium on redemption and discount to any initial public offering (IPO) price. The Preference Shareholders
also have an option to convert a portion of Preference Shares into Equity Shares at a discount to a future IPO price of MHIL, subject
to a maximum of 7.5% equity stake in MHIL upon such conversion.
The Preference Shares which have not been converted into equity shares shall be redeemable at the expiry of eight years from the
date of issue. The said redemption of Preference Shares will be at a GIRR of 11.25% p.a. inclusive of payment of 2% annual dividend
and premium on redemption of Preference Shares.
MHIL also has a right to redemption of the aforesaid preference shares at any time provided IFC is paid the redemption amount at
the GIRR.
Subsequent to the above mentioned agreement, MHIL has entered into another tripartite “put option” agreement together with the
Company and IFC. As per the said agreement IFC has a right to exercise the put option in respect of the said preference shares as
under:-
i) At any time after 3 years from date of subscription; or

MAX INDIA LIMITED

ii) At any time after giving due notice, in the event of non-performance of certain obligation by MHIL and/or the Company.
Also, the price to be determined as per the ‘put option’ would be equivalent to the amount paid to redeem the Preference Shares so
as to generate GIRR of 11.25% as adjusted with the following:-
i) Payment of 2% preference dividend;
ii) Discount on IPO Price on such portion of Preference Shares which have been converted to Equity Shares; and
iii) Premium paid on Preference Shares already redeemed or to be redeemed.
The premium payable and the applicable discount on any future IPO price on redemption of the preference shares are dependent on
future events and accordingly cannot be individually ascertained. However, the company has provided for dividend payable on
these preference shares amounting to Rs. 500.00 Lacs for the current year and Rs. 339.73 Lacs for the previous year along with
corporate dividend tax thereon.
12 Actuarial Assumptions – Life Insurance Business
MNYL’s Appointed Actuary has determined valuation assumptions that conform with Regulations issued by the IRDA and professional
guidance notes issued by the Actuarial Society of India (ASI). Details of assumptions are given below:
(a) Interest: It is based upon the current and projected yields on the fund and the current and projected yields on G-sec. A
valuation rate of interest of 7.5% (Previous year - 7.5%) for participating business, non-participating, health business and
riders has been used. The valuation rate of interest rate was reduced by margins for adverse deviations of 0.75% (Previous
year - 0.75%) for participating business and 1.75% (Previous year - 1.75%) for non-participating business. Gross unit growth
rate of 7.5% pa (Previous year - 7.5% pa) has been used which was further reduced by a margin of adverse deviation of 1.25%
(Previous year - 1.25%) per annum.
(b) Mortality: It is based on experience (where credible) and on assumptions used in the previous annual valuation (to avoid
arbitrary discontinuities). The assumptions are based on the base table IALM (94-96). For participating Life products 75% of
the base table is used in year 1 and beyond year 1 70% is used. In general, the assumptions in the initial years have been
increased to reflect anti-selection and those in the later years have been lightened in line with experience. The assumptions
have been increased by a margin for adverse deviation of 10% (Previous year - 10%) for participating business and 25%
(Previous year - 25%) for non-participating, unit linked and health business.
(c) Morbidity: The IAI has recommended the CIBT93 study of UK for morbidity incident rates due to lack of any published Indian
experience. Proportions of 95% to 300% (Previous year - 95% to 300%) of these tables have been used which were further
increased by a margin for adverse deviation of 25% (Previous year – 25%).
(d) Expenses: The per policy maintenance expenses used are based on projected expenses for the year. These are further increased
by margins for adverse deviation of 10% (Previous year - 5%) for participating policies and 10% (Previous year - 10%) for
non-participating policies and health.
(e) Inflation: An assumption of 6% pa (Previous year - 6% pa) for expense inflation has been used.
(f) Commission: It is based on the actual commission rates paid. There has been no change in these assumptions from those used
last year.
(g) Lapses: The lapse rates are based on experience (where credible). In general the lapses have been lightened compared to the
assumptions used last year. The rates were further reduced by margins for adverse deviation of 20% (Previous year: 20%) for
participating policies 50% (Previous year: 50%) for non-participating policies and 20% (Previous year: 20%) for health plans.
(h) Future bonuses: Provision is made for future bonuses based on estimated expected bonus payouts consistent with valuation
assumptions and policyholders’ reasonable expectations.
Overall, the valuation assumptions provide a conservative set of bases.
13 Employee Stock Option plans
Max India Limited
Employee Stock Option Plan – 2003 (“the 2003 Plan”):
The Company had instituted the 2003 Plan, which was approved by the Board of Directors in August 2003 and by the shareholders
in September 2003. The 2003 Plan provides for grant of stock options aggregating not more than 5% of number of issued equity

MAX INDIA LIMITED

shares of the Company to eligible employees and directors of the Company. The 2003 Plan is administered by the remuneration
committee appointed by the board of directors.
Details of the 2003 Plan are given below: (NOS.)
Particulars Year Ended Year Ended
March 31, 2009 March 31, 2008
Options outstanding, beginning of the year 567,935 741,765
Granted during the year 66,320 -
Exercised during the year (287,765) (173,830)
Forfeited during the year (280,170) -
Options outstanding, end of the year 66,320 567,935
Max New York Life Insurance Company Limited

The company currently has following employee stock option plans:
Employee Share Based Payment Plans
(a) Employee Stock Option Plan 2004 (“the 2004 plan”):
The 2004 plan was approved by the board in its meeting held on 28th September, 2004 and is proposed to be implemented by
the management adopting the Trust route. Under the plan 5,900,000 options were granted at an exercise price of Re. 1/- per
1,000 equity shares of the Insurer. The options were granted with effect from July 1, 2004 and are to vest on July 1, 2009. The
employees covered under the plan can exercise the options only if they are in service with the Insurer as on the vesting date.
Under the plan, 4,975,000 shares were outstanding at the beginning of the year out of which 175,000 got lapsed due to
attrition during the year. Cost of options under the plan is accounted using the Intrinsic Value method. During the year Rs
170.28 Lacs (Previous year - Rs 70.81 Lacs) has been accrued as ESOP cost in the revenue and profit and loss account as
applicable.
(b) Employee Stock Option Plan 2006 (“the 2006 plan”):
The 2006 plan was approved by the board on 9th March 2007. Under this plan, 2,500,000 options in aggregate were granted
to certain employees at an exercise price of Rs. 10/- per share. The options were granted with effect from July 1, 2006 and
75% of the options are to vest on July 1, 2009 and balance 25% on July 1, 2010 if the employee is in service with the Insurer
as on the vesting date. Under the plan, 2,500,000 shares were outstanding at the beginning of the year out of which 250,000
got lapsed due to attrition during the year. Cost of options under the plan is accounted using Intrinsic Value method. During
the year Rs 1.94 Lacs (Previous year - Nil) has been accrued as ESOP cost in the revenue and profit and loss account as
applicable.
A summary of status of Employee Stock Based Plans is given below: (NOS.)
March 31, 2009 March 31, 2008
Outstanding at the beginning of the year 7,475,000 8,000,000
Add: granted during the year - -
Exercised during the year - -
Forfeited/lapsed during the year (425,000) (525,000)
Outstanding at the end of the year 7,050,000 7,475,000

Employee Stock Option Plan – 2006 (“the 2006 Plan”):
The Company has instituted the 2006 Plan, which was approved by the Board of Directors on July 31, 2006 and subsequently by the
shareholders on August 10, 2006. The 2006 Plan provides for grant of stock options aggregating not more than 5% of number of
issued equity shares of the Company to eligible employees of the Company. The 2006 Plan is administered by the remuneration

MAX INDIA LIMITED

committee appointed by the board of directors. The options can be exercised during two to four years from the vesting date.
Details of the 2006 Plan are given below: (NOS.)
March 31, 2009 March 31, 2008
Options outstanding, beginning of the year 1,620,000 1,670,000
Options granted during the year 535,000 100,000
Options forfeited/lapsed during the year (1,200,000) (150,000)
Exercised during the year (50,000) -
Options outstanding, end of the year 905,000 1,620,000
14 Deferred Tax
The movement of deferred tax is given below:
2008-09 (RS. LACS)
Particulars As at April 01, Provision As at March 31,
2008 during the year 2009
Depreciation Expense 4309.80 (206.35) 4103.45
Deferred Revenue Expenses and preoperative expenditure 93.19 (48.73) 44.46
Deduction u/s 35D/35DD 0.17 (0.17) -
Liability for increase in surcharge (14.90) - (14.90)
Total 4388.26 (255.25) 4133.01
Deferred Tax (Assets)
Deduction u/s 43B (287.07) (91.78) (378.85)
Other Provisions (679.48) (405.94) (1085.42)
Unabsorbed Depreciation - (2648.67) (2648.67)
Total (966.55) (3146.39) (4112.94)
Net Deferred Tax Liability/(Asset) 3421.71 (3401.64) 20.07
2007-08 (RS. LACS)

Particulars As at Change in Provision Adjustment * As at
April Tax Rate during March
01, 2007 the year 31, 2008
Depreciation 3238.15 (227.58) 1299.23 - 4309.80
Deferred Revenue Expenses and preoperative expenditure 156.64 (0.01) (63.44) - 93.19
Deduction u/s 35D/35DD 3.39 (0.01) (3.21) - 0.17
Liability for increase in surcharge (14.90) - - - (14.90)
Total 3383.28 (227.60) 1232.58 - 4388.26
Deferred Tax (Assets)
Deduction u/s 43B (151.61) 12.15 (93.62) (53.99) (287.07)
Other Provisions (586.91) 46.63 (139.20) - (679.48)
Total (738.52) 58.78 (232.82) (53.99) (966.55)
Net Deferred Tax Liability/(Asset) 2644.76 (168.82) 999.76 (53.99) 3421.71
Note: Deferred tax assets on timing differences and unabsorbed depreciation are created to the extent of their realisability in future.
* Impact of transitional liability as per AS15 (Refer Note B18 below)

MAX INDIA LIMITED

15 Directors’ Remuneration (RS. LACS)
(a) Salary, wages and allowances 1203.01 429.60
(b) Contribution to provident fund and superannuation fund 74.52 24.30
(c) Value of perquisites 18.37 27.67
Total 1295.90 481.57
The above does not include leave encashment, gratuity, ESOP.
Notes:
Remuneration for Current year includes an amount of Rs. 613.96 Lacs (Previous year Nil) relating to earlier years for which the
Company has received Central Government approval during Current year. However this does not include loss on sale of assets
amounting to Rs. 28.79 Lacs arising out of final settlement.
The excess amounts of Nil for the Current year (Previous year Rs. 613.96 Lacs) received by the concerned directors, are held by them
in trust for the Company.
March 31, 2009 March 31, 2008
Basic
Net (Loss) after tax (Rs. Lacs) (21838.61) (4889.72)
Less: Dividend on Preference Shares 688.12 -
Net (Loss) for EPS (22526.73) (4889.72)
Weighted average number of Equity Shares 221998514 213118796
EPS (Rupees) (10.15) (2.29)
Outstanding as at the beginning of the year 221742545 179902055
Issued on May 5, 2008 280175 -
Issued on December 31, 2008 7590 -
Issued on June 15, 2007 - 41666660
Issued on September 22, 2007 - 166250
Issued on February 7, 2008 - 7,580
Outstanding as at the end of the year 222030310 221742545
Diluted
Net (Loss) after tax (Rs. Lacs) (21838.61) (4889.72)
Less: Dividend on Preference Shares 688.12 -
Net (Loss) for EPS (22526.73) (4889.72)
EPS (Rupees) (10.15) (2.29)
Issued on June 15, 2007 - 41666660
ESOPs granted under the 2003 Plan 66320 -
ESOP forfeited 280170 -

MAX INDIA LIMITED

Reconciliation of denominators used for calculating basic and diluted earnings per share

March 31, 2009 March 31, 2008
Denominator used for computing basic Earnings Per Share 22,19,98,514 21,31,18,796
Add :- Dilutive impact of -
- ESOPs granted/forfeited under the 2003 Plan 1,24,198 6,53,434
Denominator used for computing diluted Earnings Per Share 22,21,22,712 21,37,72,230
(RS. LACS)
Particulars As at Additions Adjustment Amortised As at
April 1, during March 31,
2008 the year 2009
Preliminary and Issue Expenses 0.66 - - 0.59 0.07
(14.16) (-) (-) (13.50) (0.66)
Deferred Revenue Expenditure - - - - -
(6.00) (-) (-) (6.00) (-)
Deferred Employee Compensation * 645.17 245.59 (267.20) 238.39 385.17
(1130.85) (-) ((52.50)) (433.18) (645.17)
645.83 245.59 (267.20) 238.98 385.24
(1151.01) (-) ((52.50)) (452.68) (645.83)
* Amortisation has been charged to Salaries, Wages and Bonus.
The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity
on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with an insurance
company in the form of a qualifying insurance policy.
Unavailed leaves can be encashed (on Basic Salary) at the time of separation from the company.
The Company had adopted Accounting Standard, AS-15 (revised 2005), on employee benefits with effect from April 1, 2007.
Accordingly, the transitional obligation of the Company amounting to Rs. 187.13 Lacs (Net of tax of Rs. 53.99 Lacs) towards
gratuity and leave encashment liability has been charged off to General Reserve in the previous year.
The following tables summarise the components of net benefit expense recognised in the profit and loss account and the funded
status and amounts recognised in the balance sheet for the respective plans.
(RS. LACS)
Particulars Gratuity Leave Encashment
As at As at As at As at
31.03.2009 31.03.2008 31.03.2009 31.03.2008
Service cost 316.78 196.55 183.48 148.28
Interest cost 73.28 48.20 41.38 31.20
Actuarial (gain)/loss 227.91 90.29 (16.54) (15.26)
Net cost 572.67 300.45 208.32 164.22

MAX INDIA LIMITED

(RS. LACS)
Particulars Gratuity Leave Encashment
As at As at As at As at
31.03.2009 31.03.2008 31.03.2009 31.03.2008
Present value of the obligation 1372.87 916.27 647.67 517.20
Liability recognized at the year end 643.39 373.65 647.67 517.20
Change in present value of the defined benefits obligation are as follow:

Obligations (Opening balance) 916.26 610.36 517.20 390.01
Service Cost 316.78 196.55 183.48 148.28
Interest cost 73.28 48.20 41.38 31.20
Benefits paid (104.63) (42.19) (77.85) (37.58)
Actuarial (gain)/loss 171.18 103.34 (16.54) (14.71)
Obligation (Closing Balance) 1372.87 916.26 647.67 517.20
Change in the fair value of plan assets are as follow:

Fair value of plans assets (Opening balance) 542.62 419.62 - -
Expected return on plan assets 45.43 34.59 - -
Actuarial gain/(loss) (56.86) 13.05 - -
Contribution 302.54 117.56 - -
Benefits paid (104.25) (42.19) - -
Fair value of plan assets (Closing balance) 729.48 542.62 - -
The Company expects to contribute NIL to gratuity in 2009-10.

The major categories of plan assets as a percentage of the fair value of total plan assets are as follows
Life Insurance Corporation of India (For all subsidiaries except
Max New York Life Insurance Company Ltd (MNYL) who has
taken a policy from MNYL only) 100% 100% - -
Assumptions
Discount rate 7.80-8.00% 8.00% 7.80-8.00% 8.00%
Interest Rate 5.00-8.00% 8.00% 5.00-8.00% 8.00%
Estimated rate of return on plan assets 8.00-9.15% 9.15% N.A. N.A.
Salary Increase 5.00-15.00% 10.00% 5.00-15.00% 10.00%
Attrition rate 1% to 40% 1% to 5% 1% to 40% 1% to 5%
(Depending (Depending (Depending (Depending
on Age) on Age) on Age) on Age)
Leave availment in the service N.A. N.A. 5.00-10.00% 20.00%
Retirement age 58 years 58 years 58 years 58 years
The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other
relevant factors, such as supply and demand in the employment market

Plan assets 729.48 542.63 - -
Surplus / (deficit) (643.38) (373.63) (647.67) (517.20)
Experience adjustments on plan liabilities 50.22 2.42 (205.24) (24.84)

MAX INDIA LIMITED

During the year, the Company contributed Rs. 2099.54 Lacs (Previous year Rs. 1099.84 Lacs) for provident fund and Rs. 70.62 Lacs
(Previous year Rs. 69.76 Lacs) for superannuation fund which represents contribution to defined contribution plans.
Other Long Term Benefits
During the year, consequent to the adoption of AS-15 (revised 2005), the company recognized in the Profit and Loss account
Rs. 6.14 Lacs (previous year Rs 5.00 Lacs) for non-vesting compensated leaves and Rs. 7288.60 Lacs (Previous year Rs 4621.84 Lacs)
for deferred compensation for employees. Transitional liability towards deferred compensation amounting to Rs 994.11 Lacs has
been charged off in General Reserve in previous year.
19 Detail of Balances with Non-scheduled Banks
(RS. LACS)
Name of the Bank Balance as on Maximum Balance Maximum
March 31, 2009 Balance as on March Balance
Outstanding 31, 2008 Outstanding
during April 01, during April 01,
2008 to March 2007 to March
31, 2009 31, 2008
In Current Accounts
Wachovia Bank 9.88 47.06 7.39 31.95
Barclay Bank Plc 11.81 38.98 5.19 44.48
Rabo Bank 87.21 113.86 87.42 124.98
Total 108.90 100.00
(a) Business Segments
The Company has considered business segment as the primary segment for disclosure. The products/ services included in each
of the reported business segments are as follows:
• Speciality Plastic Products - The holding company’s manufacturing facility located at Railmajra, Nawanshar (Punjab),
produces packaging films supported with polymers of propylene, leather finishing transfer foils and related products.
• Life Insurance – This segment relates to the nation wide life insurance business carried out by one of the Company’s
subsidiaries.
• Healthcare Business – One of the Company’s subsidiaries is engaged in the delivery of healthcare services in the
national capital territory of Delhi through its primary and tertiary health care delivery centers. This also includes revenue
from leasing of medical and other equipments.
• Clinical Research – Consists of business activities relating to conduct of ethical medical research involved in drug
development process as a Clinical Research Service provider. The group of subsidiaries involved in this business segment
offer study management services, project management services, data base management services, monitoring services
and clinical trial pharmacy supply chain management services to the pharmaceutical, medical device, biotechnology
and Contact Research Organizations worldwide.
• Business Investments – This segment is represented by treasury investments.
• Healthcare Staffing – Includes business activities relating to sourcing, training and placing healthcare personnel in
India and abroad.
• Others – The leasing activities undertaken by one of the Company’s subsidiary are classified under this segment.
The above business segments have been identified considering:
(i) The nature of products and services
(ii) The differing risks and returns
(iii) Organisational structure of the group, and
(iv) The internal financial reporting systems.

MAX INDIA LIMITED

Segment Revenue consists of revenue from external customers and revenue from other segments.
Segment Result is the difference of segment revenue and segment operating expenses.
Unallocated Assets include assets pertaining to the holding company’s corporate office such as, loans, advance and deposits.
Unallocated Liabilities include tax provisions and interest bearing loans not directly related to any business segment.
Unallocated Expenses - Expenses incurred at corporate office of the holding company relate to various business segments. As
there is no reasonable basis of allocating this expenditure to various segments, the same are shown as unallocated reconciling
expenses. Interest expense is not treated as part of a segment expense and is reflected as a separate line item, except interest
on loans allocated to business segment.
The segment information has been prepared in conformity with the accounting policies adopted for preparing and presenting
these financial statements.
(b) Geographical Segments
The Company has considered geographical segment as secondary reporting segment for disclosure. For this purpose, the
revenues are bifurcated based on location of customers in India and outside India.
SEGMENT INFORMATION
PRIMARY SEGMENT (RS. LACS)
Particulars Speciality Healthcare Business Life Healthcare Clinical Others Total
Plastic Business Investment Insurance Staffing Research
Products Services Services
a. Segment Revenue from
Sales to External Customers 37003.51 4784.99 - - - - - 41788.50
(30343.88) (3755.12) (-) (-) (-) (-) (-) (34099.00)
Service Income 20.11 27171.81 - 381903.36 114.56 1397.03 - 410606.87
(133.30) (21549.76) (-) (269255.28) (251.77) (1029.92) (-) (292220.03)
Service/Interest Income from Inter Segments - 3040.83 287.15 - - 266.94 340.41 3935.33
(-) (2436.74) (26.85) (-) (-) (273.50) (328.72) (3065.81)
Income from Investment Activities - 2761.06 4421.76 25409.41 0.75 2.21 290.54 32885.73
(-) (984.40) (6880.16) (24561.25) (0.71) (2.93) (22.72) (32452.17)
Other Income 1.69 260.49 - 3001.64 35.86 25.20 152.21 3477.09
(118.53) (140.20) (-) (1596.97) ((3.23)) (101.93) (265.90) (2220.30)
Total Segment Revenue 37025.31 38019.18 4708.91 410314.41 151.17 1691.38 783.16 492693.52
(30595.71) (28866.22) (6907.01) (295413.50) (249.25) (1428.08) (597.54) (364057.31)
Less: Inter Segment Revenue 3935.33
(3065.81)
Segment Revenue from External Customers 488758.19
(360991.50)
Add: Unallocated Revenue 247.19
(22.63)
Add: Interest Income 138.76
(40.66)
Total Revenue 489144.14
(361054.79)

MAX INDIA LIMITED

(RS. LACS)
b. Segments Results 4003.66 4754.38 4421.76 (40247.85) (267.54) 95.89 369.05 (26870.65)
(3912.75) (2676.02) (6880.00) ((10167.92)) ((441.88)) (62.87) (275.81) (3197.65)
(40.66)
Sub-total (26731.89)
(3238.31)
Less:
Unallocated Expenses 3911.74
(2813.61)
Interest Expenses 5057.40
(4731.04)
(Loss) before tax (35701.03)
((4306.34))
Provision for Taxation (Includes
Provision for Deferred Tax) (2383.56)
(1672.13)
(Loss) after Tax (33317.47)
((5978.47))
c. Carrying Amount of Segment Assets 28929.84 77547.68 14980.44 636948.14 98.87 1319.30 3628.75 763453.02
(26926.24) (74081.69) (106655.66) (421983.00) (243.86) (873.30) (2803.25) (633567.00)
Add: Unallocated Assets 19050.64
(3932.13)
Cost of Control 6986.19
(7389.82)
Total Assets 789489.85
(644888.95)
d. Segment Liabilities 2890.94 7461.17 - 558183.70 51.02 687.75 202.27 569476.85

(3175.14) (5429.32) (-) (378957.68) (112.04) (474.72) (265.11) (388414.01)
Add: Unallocated Liabilities 35745.75
(59836.29)
Total Liabilities 605222.60
(448250.30)
e. Cost to Acquire Tangible and

intangible Fixed Assets 1199.97 5382.71 - 24551.60 0.45 30.42 - 31165.15
(1745.54) (5129.86) (-) (8149.64) (33.05) (42.06) (13.30) (15113.45)
Unallocated 46.85
(107.34)
Total Addition 31212.00
(15220.79)
f. Depreciation and Amortisation Expenses 1134.14 1815.09 - 6515.98 39.84 57.96 66.65 9629.66
(1056.15) (1871.58) (-) (3438.88) (68.63) (66.29) (68.99) (6570.52)
Unallocated Depreciation and Amortization 71.85
(83.07)
Total Depreciation and Amortization 9701.51
(6653.59)

MAX INDIA LIMITED

(RS. LACS)
g. Non-cash Expenses other Than

Depreciation and Amortisation 109.54 302.00 - 537.43 55.25 72.78 5.26 1082.26
(32.74) (372.93) (0.16) (135.64) (0.40) (105.19) (18.47) (665.53)
Unallocated Non Cash Expenses 40.37
(11.26)
Total 1122.63
(676.79)
SECONDARY SEGMENT (RS. LACS)

Particulars India North Europe South Asia Total
America Canada America
Australia
a. Revenue from External Customers 480807.99 909.34 4142.57 808.81 2089.48 488758.19
(353420.97) (1049.11) (3167.99) (578.22) (2775.21) (360991.50)
b. Carrying Amount of Segment Assets by Location of Assets 757256.74 534.73 5426.33 - 235.22 763453.02
(626580.06) (321.80) (5245.98) (207.22) (1211.94) (633567.00)
c. Cost to Acquirer Tangible and Intangible Fixed Assets by Location of Assets 31164.51 0.64 - - - 31165.15
(15113.45) (-) (-) (-) (-) (15113.45)
Key Management Personnel (Directors) Mr. Analjit Singh, Mr. B Anantharaman (till June 30, 2008)
Relatives of Key Management Personnel Mr. Veer Singh
Enterprises over Which Key Management Liquid Investments & Trading Company, New Delhi House Services Ltd., Medicare
Personnel have Significant Influence Investments Ltd., Maxopp Investments Ltd., Cheminvest Ltd., Pivet Finances Ltd.,
Lakeview Enterprises, Delhi Guest House Pvt Ltd., Trophy Holdings Pvt. Ltd., M.V.
Healthcare Services Pvt. Ltd., ND Callus Info Services Pvt. Ltd., Boom Investments Pvt.
Ltd., Malsi Holdings Ltd., Dynavest India Pvt. Ltd., Scorpio Beverages Pvt. Ltd., Trophy
Guest Houses & Resorts Pvt. Ltd., Trophy Estates Pvt. Ltd., Gaylord Impex Ltd., Pen
Investments Ltd., Mohair Investment, PVT Investment Ltd., Malsi Estates Ltd, TVP
Investments Pvt. Ltd., BAS Investments Pvt. Ltd., Vitasta Estate Pvt. Ltd., Terra Planet
Estate Pvt. Ltd., Doon Holiday Resorts Pvt. Ltd., Urban Space Consultants Pvt. Ltd.,
Max India Foundation, Capricorn Health Services Private Ltd., Leo Retailing and Health
Services Private Ltd., Nurture Health Services Pvt. Ltd., Capricorn Retailing and Services
Pvt. Ltd., Veer Health Services Pvt. Ltd., Wegmans Business Park Pvt. Ltd., Synergy
Infracon Pvt. Ltd., Max Speciality Products Ltd., Max Bupa Health Insurance Ltd.
(Effective September 5, 2008), Malsi Hotels Ltd. (Effective March 20, 2009), Bhai
Mohan Singh Foundation
Employee Benefit Funds Max India Ltd. Employees’ Provident Fund Trust, Max India Ltd. Superannuation Fund

MAX INDIA LIMITED

Summary of significant related party transactions (as identified by the management) carried out in ordinary course of business are
as follows:
(RS. LACS)
Particulars Key Relatives of key Enterprises Employee
Management Management over Which Key Benefit Funds
Personnel Personnel Management
Personnel have
Significant
Influence
1 Fixed Assets Purchased - - 88.99 -
(-) (-) (-) (-)
2 Fixed Assets Sold - - 0.06 -
(-) (-) (16.75) (-)
3 Deposits and Advances Accepted / Given - - - -
(387.87) (-) (-) (-)
4 Loans Taken - - 55.00 -
(-) (-) (100.00) (-)
5 Loan Given - - 5550.00 -
(-) (-) (-) (-)
6 Incomes and Reimbursement
- Interest Income - - 270.30 -
(-) (-) (-) (-)
- Reimbursement of Expenses 21.73 1.49 309.95 -
(9.84) (0.62) (24.23) (-)
7 Expense
- Services / Other Expenses Received 1295.90 13.70 734.52 -
(481.57) (11.49) (448.64) (-)
- Interest Paid - - 19.48 -
(-) (-) (1.57) (-)
- Company’s Contribution to Trust - - - 115.85
(-) (-) (-) (97.59)
8 Amount Outstanding
- Against Loan Taken - - 155.00 -
(-) (-) (100.00) (-)
- Interest Payable - 7.68 -
(-) (-) (-) (-)
- Against Loan Given - - 800.00 -
(-) (-) (-) (-)
- Interest Receivable - - 53.55 -
(-) (-) (-) (-)
- Other Receivable 0.54 1.50 226.38 -
(622.47) (0.55) (4.08) (-)
- Other Payable - 0.33 23.20 -
(-) (-) (23.78) (-)
Other relevant information -
i) The above excludes sitting fees Rs. 16.44 Lacs (Previous year Rs. 8.90 Lacs) paid to non-executive diectors.
ii) Previous year’s figures are given in brackets.

MAX INDIA LIMITED

22 Leases
(a) Finance Lease
The Company does not have any finance lease agreement.
(b) Operating Lease
(i) Lease rentals recognised in the profit and loss account for the year is Rs. 8766.07 Lacs (Previous year Rs. 4921.96 Lacs).
(ii) The Company has entered into operating leases for its office and for employees’ residence, vehicles for transportation,
furniture that are renewable on a periodic basis. The total of future minimum lease payments under non-cancellable
leases are as follows:
(RS. LACS)
March 31, 2009 March 31, 2008
Not later than one year 2738.99 748.18
Later than one year and not later than five year 3587.17 876.79
Later than five year - 228.81
Total 6326.16 1853.78
23 Movement in Policyholders’ Liability

(RS. LACS)
Add: Transfer to reserve 163914.63 156664.14
Add: Bonus payable to policyholders 11881.13 9369.41
24 Max Medical Services Limited

(a) As at December 10, 2001 the company had entered into an agreement with a healthcare service provider to construct a
hospital building. The construction, as aforesaid had been completed and the building handed over as on March 31, 2005 to
the healthcare service provider for a consideration of Rs. 2431.00 Lacs. The said consideration is repayable in equal installments
over 26.5 years from the handover date. In addition, since the receipt of the consideration is spread over a long period, an
income amounting to Rs. 234.70 Lacs (Previous year Rs. 245.60 Lacs) which is based on a fixed percentage of the turnover of
the healthcare service provider has been accrued in these accounts and disclosed under Loans and Advances.
(b) The company had entered into an agreement with a healthcare service provider on December 10, 2001 for supply of medical,
other equipments and fixtures for an initial term of 30 years. Under the terms of the lease, the company is responsible for:
(i) Acquisition of equipment including its repair and servicing;
(ii) Ensuring adequate insurance coverage for the assets; and
(iii) Replacement of any existing equipment or suitable equipment in lieu thereof.
As per terms, lease rentals based on a fixed percentage of the turnover of the healthcare service provider are due to the
company on a monthly basis. Accordingly, as at March 31, 2009 an amount of Rs. 971.52 Lacs (Previous year Rs. 1228.02 Lacs)
has been accrued as lease rentals. The lease rent being contingent on turnover, hence cannot be quantified for any future
periods and disclosed under Sundry Debtors.

MAX INDIA LIMITED

25 QIP Issue Proceeds
Details of additions:
(RS. LACS)
Addition:
On allotment of shares to QIBs - 99999.98
Total 75730.39 99999.98
Utilizations:
Investment in subsidiary company 55500.00 22200.00
Advance against Investment in subsidiary company 800.00 -
Refund of Option Deposit to New York Life International 17420.55 -
Share issue expenses - 2069.59
Total 73720.55 24269.59
26 Preferential Issue Proceeds
Details of additions: (RS. LACS)

Addition:
On preferential allotment of share - 30000.00
Total 19156.04 30000.00
Utilizations:
Repayment of Loans 614.09 8393.40
Advance for purchase of Land 4992.42 1080.00
Loan to Subsidiaries 945.82 682.02
Loan to other healthcare service provider 3042.10 688.54
Total 9594.43 10843.96
Deposit with Scheduled Bank 1205.80 -
27 Securities Premium Account
(i) Details of additions:
(RS. LACS)
1. On preferential allotment of shares* - 2596.73
2. On allotment of shares to QIBs - 99166.65
3. Exercise of Stock Option 414.46 249.55
Total 414.46 102012.93
* Net of amount transfer to minority Nil (Previous year Rs. 1494.19 lacs)

MAX INDIA LIMITED

(ii) Details of utilization:
(RS. LACS)
1. Expenses on issuance of shares to QIBs - 2069.59
2. Fees for increase in authorized capital and other expenses 2.01 66.28
in connection with share issue*
Total 2.01 2135.87
* Adjusted for transfer to minority Rs. 2.01 Lacs (Previous year Rs. 28.33 Lacs)
28 During the year, Rs. 16.51 Lacs (Previous year Rs. 14.13 Lacs) has been charged to the profit and loss account relating to Research
and Development expenditure under the heads Raw Material – Consumed and Power & Fuel.
29 Additions/deletions in the schedule of Reserves and Surplus (Schedule 2) include adjustments in respect of consolidation level
accounting in accordance with Accounting Standard 21.
30 Clinical Trial Expenses related to Clinical Research Business (Refer Schedule 21) includes:
(RS. LACS)
1. Salaries, Wages and Bonus 384.36 257.12
2. Contribution to Provident and Other Fund 16.85 9.53
Total Personnel Expenses 401.21 266.89
31 On September 03, 2008, the Company signed a tripartite JVA with BUPA Finance Plc., UK and Mr. Analjit Singh for its proposed
health insurance business. Subsequently, Max Bupa Health Insurance Limited (“MBHIL”) has been incorporated on September 5,
2008 to operate the said business. In line with the guidelines issued by Insurance Regulatory and Development Authority, the initial
share capital of MBHIL will be Rs. 100 Crore. This will be contributed 50% by the Company, 24% by Mr. Analjit Singh and his
associates and 26% by BUPA Finance Plc., UK through its Indian subsidiary and other entities.
On January 13, 2009, the Company has contributed share application money amounting to Rs. 800.00 Lacs to MBHIL Also, during
the year, the Company incurred expenses amounting to Rs. 185.16 Lacs on behalf of MBHIL which are recoverable in terms of the
aforesaid JVA.
Consequently, the Board of Directors in their meeting held on June 26, 2009 have decided to invest upto 74% of equity shareholding
of MBHIL, subject to shareholders’ approval.
32 During the year, a Memorandum of Understanding (MOU) dated November 12, 2008 has been entered into amongst Government of
Punjab (“GOP”), Max India Group and Others (“the Founder Supporters”), together with Indian School of Business, Hyderabad
(“ISB”). As per the MOU, a second campus of ISB is purposed to be established in the Knowledge city at Mohali, with an equal
contribution from each of the Founder Supporters. The Board of Directors of Max India Limited and Max Healthcare Institute
Limited has recommended a contribution for an amount not exceeding Rs. 1666.67 Lacs each to this initiative over a period of 3-
4 years, subject to the shareholders approval, out of the total commitment of Rs. 5000.00 Lacs from Max India Group. Of the above,
a sum of Rs. 275.00 Lacs has been contributed during the year and included under the head Charity and Donation.
33 During the previous year, the Company received Rs. 50.00 lacs as capital subsidy from the Director of Industries, Government of
Punjab under “Punjab Industrial Incentives Code under the Industrial Policy, 1996” for substantial expansion during financial year
1996-97. The same has been accounted for as capital reserve.
34 Subsequent to the year end, the Board of Directors in their meeting held on May 15, 2009, approved the issuance of 10,326,311
equity shares of Rs 2/- each at a premium of Rs. 143.26 per equity share, aggregating to Rs. 15000.00 Lacs to International Finance
Corporation, Washington USA on a preferential basis. The same has been approved by the shareholders in an Extra-ordinary General
Meeting held on Friday, June 12, 2009.

MAX INDIA LIMITED

Consequently, the Company in the meeting of Allotment Committee of Directors held on June 19, 2009 allotted the said shares.
35 During previous year, Neeman Medical International N.V. (“Neeman NV”) sold 494,699 Common and Nominative Shares, representing
its entire 74.25% stake in Neeman Medical International Latin America, S.A. (“Neeman LA”), to Dr. Guillermo Rodriguez Gomez for
Rs. 105.10 Lacs. The loss on sale amounting to Rs. 104.94 Lacs being the difference between the proceeds from the disposal of
investment in Neeman LA and the carrying amount of the investment, net of provision against the said investment and accumulated
losses, had been charged to Profit and Loss account.
36 Max HealthStaff International Limited (MHS), a 100% subsidiary of the Company, is in the business of sourcing, training and
placing healthcare personnel in India and abroad more particularly in the United States. The placement of healthcare personnel in
United States is subject to availability of immigrant visas, which is currently unavailable given the visa retrogression in force.
Consequently, MHS has considerably scaled down its operations till the time further clarity on immigration laws emerges.
Accordingly, based on prudent accounting practices, the management has to write off the goodwill of Rs. 403.63 Lacs.
37 The Company’s subsidiary MNYL has entered into an agreement called “The Brand License and Technical Services Agreement (Brand
Agreement)” with New York Life Insurance Company and New York Life International, LLC for a duration of five years. The agreement
states total consideration of Rs. 36972.63 Lacs for grant of license and provision of technical services to MNYL over the tenure of
the agreement. During the current year, MNYL has recognised an expense of Rs. 5084.72 Lacs in Profit and Loss Account under the
head of “Branding, Advertisement & Publicity”, considering amortization of total consideration on straight line basis over the
tenure of the agreement.
38 Previous year’s figures have been regrouped/reclassified wherever necessary to conform to current year’s classification.
For and on behalf of the Board of Director
ANALJIT SINGH Chairman & Managing Director

N. RANGACHARY Director
ASHWANI WINDLASS Director
New Delhi SUJATHA RATNAM Chief Financial Controller
JUNE 26, 2009 V. KRISHNAN Company Secretary

Statement pursuant to exemption received under Section 212 (8) of the Companies Act, 1956 relating to subsidiary Companies for the year ended March 31, 2009
2 Consolidated.p65
Indian Subsidiaries (Rs. Lacs) Foreign Subsidiaries (Rs. Lacs)
Particulars Max New York Max Max Alps Max Neeman Pharmax Max Max Neeman Neeman Max Max UK
Life Insurance Healthcare Medical Hospital Medical Corporation Ateev Healthstaff Medical Medical Medical Ltd., UK
Company Ltd. Institute Ltd. Services Ltd. Ltd. International Ltd. Ltd. International International International International
Ltd. Ltd. B.V. N.V. Inc., USA
1 Share Capital 178,243.26 48,714.45 1,414.25 5.00 421.68 2,055.77 3,144.36 394.50 8.26 26.81 366.08 213.00
2 Reserves and Surplus 400,835.57 2,972.57 (620.68) (1,211.35) (608.21) (721.90) (3,804.80) (2,162.75) 5,723.35 3,224.68 (4,207.56) (125.61)
169
3 Miscellaneous Expenditure to the extent 254.17 71.02 86.88 - - - - - - - - -
not written off
4 Total Assets 635,596.45 81,852.35 19,144.87 4,811.49 1,318.11 3,894.84 20.77 107.51 5,742.53 3,428.39 103.20 97.64
5 Total Liabilities 56,771.79 30,236.35 18,438.18 6,017.84 1,504.64 2,560.97 681.21 1,875.76 10.92 176.90 3,944.68 10.25
6 Details of Investments 556,143.51 8,355.81 - - - 721.52 - - - - - -
(Other than investment in subsidiaries)
7 Turnover and Other Income 401,810.67 31,748.51 3,302.78 3,082.07 1,498.73 717.61 4.99 156.74 1.17 40.41 268.06 60.61
8 Profit Before Taxation (39,301.56) 3,186.02 (273.26) (563.02) 99.63 253.60 (3.32) (267.84) (11.36) 5.18 (4.04) 4.07
9 Provision for Taxation - (1,575.12) (523.22) 5.91 (22.35) 70.40 - 2.65 - - - 0.71
Max India Limited

10 Profit After Taxation (39,301.56) 4,761.14 249.96 (568.93) 121.98 183.20 (3.32) (270.49) (11.36) 5.18 (4.04) 3.36

11 Proposed Dividend - - - - - - - - - - - -
Note - In respect of foreign subsidiaries:

a) Item Nos. 1 to 6 and 11 are translated at exchange rates as on 31st March, 2009 as follows: Pound Sterling = Rs.74.1579 and US Dollars = Rs. 52.1743
b) Item Nos. 7 to 10 are translated at annual average exchange rates as follows: Pound Sterling = Rs.79.5601 and US Dollars = Rs. 46.5739
The above details have been annexed in terms of Letter No.47/364/2009-CL-III dated May 14, 2009 issued by Government of India, Ministry of Company Affairs under Section 212(8) of the Companies Act, 1956.
8/8/2009, 3:00 PM
MAX INDIA LIMITED
MAX INDIA LIMITED

MAX NEW YORK LIFE INSURANCE COMPANY LIMITED
REGISTRATION NO: 104; DATE OF REGISTRATION WITH IRDA : NOVEMBER 15, 2000
Directors’ Report
Your directors have pleasure in presenting the Ninth Annual Report During the financial year 2008-09, your Company significantly
of your Company with the audited accounts for the financial year expanded the distribution reach by opening 279 agency offices, 95
ended March 31, 2009. offices for emerging markets and 10 DST offices. In addition, your
Company tied up with Indian Oil Corporation and opened 124 sales
PERFORMANCE HIGHLIGHTS
offices at its Kisan Sewa Kendras in Punjab, Haryana and Uttar
Highlights for the year ended March 31, 2009 are as under: Pradesh. The number of agent advisors reached 84,651, up by 129%
over last year. The emerging markets channel also grew stronger
(RS. IN CRORE)
with 95 offices and recorded a new business growth of 81%. Your
Particulars Current Year Previous Year Company signed up 10 new partnership distribution relationships,
(March 31, 2009) (March 31, 2008) and 10 new bancassurance relationships with urban and rural
Income cooperative banks.
Premium Income (net) 3819.0 2692.6 Your Company now has a network of 705 offices as on March 31,
Income from Investments 2009.
- Policyholder (218.3) 224.1
- Shareholder 29.6 21.2 COMPREHENSIVE PRODUCT PORTFOLIO
Other Income 1.0 0.4 Your Company further strengthened its product portfolio by
Total Income 3631.3 2938.3 launching two new products and making its portfolio competitive
Less: Expense and comprehensive. The Company now offers a complete range of
Commission 391.6 384.5 protection and savings plans including in the high potential areas
Operating expenses 1615.2 843.5 of health and retirement. The new products launched in the previous
(excl. depreciation) financial year also grew rapidly and contributed to 37% of your
Depreciation 65.2 34.4 Company’s annualised first year premium.
Benefits Paid 220.8 136.0
With customers getting more aware and looking for best value
Provision for Reserves 1758.0 1660.3
propositions with features and options to maximize benefits and
Total Expenses 4050.8 3058.7
offer best in class investment fund choices, your Company launched
The Financial Year 2008-09 was a year of continued growth for SMART Assure. It is a regular contribution unit linked plan with
your Company. The total premium income for the year at Rs. 3857 innovative features like Dynamic Fund Allocation for life stage based
crores grew at 42% over the previous year. Your Company sold asset allocation and the Dynamic Opportunities Fund, which
12,07,062 policies in 2008-09, which is 38% more than last year. rebalances the assets depending on market conditions thereby
The cumulative sum assured crossed Rs. 93,500 crores growing at stabilizing and maximizing the investment returns. The product
40% over the corresponding period last year. The assets under has been well accepted by the market.
management rose to Rs. 5561 Crores, a growth of 50% over last
With the need of more customized product solutions for partnership
year. Renewal income grew by 80 % to Rs. 2014 crores.
distribution, your Company launched Unit Builder, a regular
GROWING DISTRIBUTION REACH premium Unit Linked product for the mid market segment.
In a vast and diverse market like India, multi-channel distribution Need for capital protection and guaranteed return is another
is the key to any life insurance Company’s ability to reach its industry trend which is visible in savings oriented products. We
customers across the length and breadth of the country. Your believe return and capital guarantees should be backed by
Company has systematically pursued this strategy of growing reach. appropriate asset class. Keeping the need for capital preservation
Agency distribution is our core distribution channel which is, and growth in mind your Company plans to launch Smart Express,
complemented by partnership distribution, bancassurance, direct a flexible unit-linked plan that has been specially designed to
selling teams and a dedicated channel for emerging markets. A address these needs of consumers. The product allows the
decision to increase the width and depth of distribution was taken, policyholders to move to high growth equity oriented funds when
based on mapping of top 500 cities in the country basis their there is better market visibility and participate in India’s growth
business potential and our existing reach. story. Your Company also plans to launch a new product platform
3 MNYL 1.p65 173 8/19/2009, 12:31 PM

Directors’ Report
with guaranteed accumulation benefit along with the transparency BUILDING SUPERIOR CUSTOMER EXPERIENCES
and flexibility of a Unit Linked solution.
Providing superior customer experience is one of cornerstones of
MAX VIJAY – A BUSINESS MODEL FOR UNDERSERVED MARKETS your Company’s vision of becoming the most admired life insurance
Company in India. In addition, the growth in renewal premium
Your Company seeks to revolutionize the way life insurance is
clearly indicated that your Company has been successful in building
procured, sold and serviced through its new and innovative business
a long term relationship with its customers.
model called – ‘MAX VIJAY’. It not only fulfills the customers’ primary
need of protection, but also facilitates long-term savings. It has Leveraging technology to provide customers with convenient and
been designed specifically for the underserved segment of the seamless access to information at all times was a theme pursued
society to meet the unique challenges of unpredictability in life aggressively in 2008-2009. A slew of new customer technologies
and their income flow. Max Vijay, available in three premium paying were launched to strengthen customer experiences.
options of ‘Rajat’, ‘Swarna’ and ‘Heera’ enables the customer to
In addition, several initiatives were commenced to bolster renewal
enter the plan at a minimal initial premium amount of Rs. 1000,
collections - regionalization of customer communication, SMS alerts
Rs. 1500 and Rs. 2500 respectively. Max Vijay provides customers
for payment reminders, auto-debit facility, internet payment
the flexibility in financial planning by offering a choice to invest
options, dedicated Business Recovery Unit, tie up with India Post
any amount, anytime, anywhere. A unique technology driven
for payment options etc.
distribution and service model ensures reach of Max Vijay to the
customers even in the remotest of places. 25 distribution Your Company further improved its reputation of best-in-class
relationships were entered into for Max Vijay Products. claims processing, through claims process reengineering, set-up of
regional claims support unit, jet processing for accident claims,
STRENGTHENING THE BRAND
availability of claims’ forms on channel partners’ intranet,
In a market with over 20 players, a strong brand is a definite asset. regionalization of claims communication, changes to the
To provide a more dynamic and youthful image to the brand, your investigation grid etc.
Company launched its new brand positioning with the new tagline
BONUS PAYMENT
‘Karo Zyaada Ka Iraada’. It represents an ambitious and assertive
India that is ready to compete for more, demand more, dream more The Company declared bonuses (dividends) based on the underlying
and live more to create a better today and brighter tomorrow. performance of the participating fund for the year 2008-09. The
bonus is payable in respect of eligible policies on third and greater
A series of new campaigns were rolled out in multiple mediums
policy anniversaries falling due in the 12 months period commencing
and languages. Brand awareness rose from 63% to 74% in the
1st July, 2009.
period of one year. The advertising campaigns received a lot of
acclaim and were adjudged among the Top 10 advertisements in BUILDING STRONG HUMAN RESOURCES
the year.
Your Company further strengthened its human capital. It has built
The focus of marketing campaign execution was on innovation. a large, strong and engaged talent pool. Gallup employee
Taking a proactive stance, your Company was the Associate Sponsor engagement survey 2008 shows that MNYL has the highest
for inaugural Indian Premier League cricket tournament, which employee satisfaction, advocacy and loyalty scores amongst the
received high television ratings and was one of most efficient media Insurance and Financial banking services sectors in India and is
buys. A tie-up with Indian Railways ensured that your Company’s amongst top 25 percent highly Engaged Companies worldwide.
message traveled across the length of the country from Delhi to
The total employee strength of your Company rose to 15,402 spread
Chennai, Trivandrum and Bangalore The updated website of the
over 705 offices across 414 cities and grew at 101%. Your Company
Company was also rated the best for design and the second-best
has won great industry recognitions by being ranked the 7th best
for usability.
place to work in India by Business Today-Mercer Survey 2008 and
All these efforts culminated in your Company being recognized as by winning Gallup Great Workplace Award 2009, a global award
a “Superbrand” for the year 2009-10. recognizing MNYL as an organization with highly engaged
employees. It has invested in attracting and developing its human
3 MNYL 1.p65 174 8/19/2009, 12:31 PM

Directors’ Report
capital by focusing on domain knowledge and leadership skills, of the ensuing Annual General Meeting. The Company has received
values and performance culture. a notice from a member proposing the candidature of Dr. Goswami
for appointment as Director.
CORPORATE SOCIAL REPONSIBILITY (CSR)
The Board appointed Mr. Rajesh Sud as additional director and Chief
Your Company initiated its CSR program to make a difference to the Executive Officer & Managing Director with effect from November
society it operates in and to secure the future of the country. Since 1, 2008. Mr. Rajesh Sud is a founder team member of the Company
inception, MNYL has been working with the SOS Children’s Villages and has been instrumental in establishing the distribution footprint
of India to help protect the future of underprivileged children. In the across India. Pursuant to Section 260 of the Companies Act, 1956,
Financial year 2008-09 your Company worked closely with Max India Mr. Sud holds office as additional director only up to the date of
Foundation, the newly set up CSR arm of Max India group contributing the ensuing Annual General Meeting. The Company has received a
Rs 2,50,00,000/- for multiple immunization and other health camps. notice from a member proposing the candidature of Mr. Sud for
appointment as Director.
SHARE CAPITAL
The Board appointed Mr. Rajit Mehta as additional director and
During the year, the paid up share capital of the Company has
Executive Director & Chief Operating Officer with effect from
increased to Rs. 1782 Crore. Your Company continues to be one of
November 1, 2008. Mr. Rajit Mehta is a founder member of the
the well capitalized private life insurance companies in India.
Company and has helped the Company put in place sound HR
SOLVENCY practices and has also contributed to business through strategic
initiatives like Growth Leadership and Project - Vijay. Pursuant to
Your Company has met the solvency margin requirements as per Section 260 of the Companies Act, 1956, Mr. Mehta holds office as
IRDA norms. additional director only up to the date of the ensuing Annual General
DIRECTORS Meeting. The Company has received a notice from a member
proposing the candidature of Mr. Mehta for appointment as Director.
During the year, Messrs B. Anantharaman, Ravi Akhoury, N. C.
Singhal, Sunil Sharma and S. S. Baijal resigned from the Board w.e.f The Board appointed Ms. Marielle Theron as additional director
May 17, 2008, September 29, 2008, November 11, 2008, December with effect from May 5, 2009. Ms. Theron is an actuary and a
Principal of Erlen Street Corporation, which specializes in strategic
31, 2008 and March 12, 2009, respectively.
investment and management consulting solutions. She has over
Mr. Gary Bennett ceased to hold office of Chief Executive Officer 25 years’ experience in the financial services industry across Europe,
and Managing Director w.e.f. October 31, 2008. Asia, Australia, and New Zealand. Pursuant to Section 260 of the
Companies Act, 1956, Ms. Theron holds office only up to the date
Your Directors place on record their appreciation for the valuable
of the ensuing Annual General Meeting. The Company has received
contribution made by Messrs B. Anantharaman, Ravi Akhoury, Gary
a notice from a member proposing the candidature of Ms. Theron
Bennett, N. C. Singhal, Sunil Sharma and S. S. Baijal during their
for appointment as Director.
association with the Company as directors.
The Board appointed Mr. Richard Mucci as additional director with the Articles of Association of the Company, Mr. Rajesh Khanna and
effect from September 29, 2008. Mr. Richard Mucci is the chairman Mr. Anuroop Singh retire by rotation, and being eligible have offered
and CEO of New York Life International, LLC. Pursuant to Section themselves for reappointment.
260 of the Companies Act, 1956, Mr. Mucci holds office only up to
the date of the ensuing Annual General Meeting. The Company has BOARD COMMITTEES
received a notice from a member proposing the candidature of Mr. The Board has constituted the following Committees :
Mucci for appointment as Director.
1. Audit Committee, comprising of :
The Board appointed Dr. Omkar Goswami as additional director - Mr. John Harrison – Non executive director
with effect from December 3, 2008. Dr. Goswami is founder and - Mr. Rajesh Khanna – Non executive director
Chairman of CERG Advisory Private Limited, which is a corporate - Mr. Rajesh Sud – Chief Executive Officer and Managing
advisory and consulting firm. Pursuant to Section 260 of the Director
Companies Act, 1956, Dr. Goswami holds office only up to the date - Ms. Marielle Theron – Non executive director
3 MNYL 1.p65 175 8/19/2009, 12:31 PM

Directors’ Report
Mr. John Harrison is the Chairman of the Committee. The Committee Mr. Analjit Singh is the Chairman of the Committee. The Committee
met four times in the last financial year. The Committee exercises is responsible for review of the compensation philosophy, bonus
review and oversight of statutory and external audits and criteria and equity based compensation plans and recommend the
inspections, internal audit function, compliance with legal & same for the approval of the board.
regulatory procedures, internal control systems and financial
AUDITORS
controls.
The Joint Auditors M/s. Thakur Vaidyanath Aiyar & Co., Chartered
2. Investment Committee, comprising of :
Accountants retire at the conclusion of the ensuing Annual General
- Mr. Rajesh Sud - Chief Executive Officer and Managing
Meeting and have expressed their willingness to be re-appointed
Director
at the forthcoming Annual General Meeting. The Company has
- Dr. Omkar Goswami – Non executive Director
received certificate from M/s Thakur Vaidyanathan Aiyar & Co. that
- Mr. John Harrison - Non executive Director
their appointment as auditors, if made, will be in accordance with
- Ms. Marielle Theron – Non executive Director
the limits specified under Section 224 (1B) of the Companies Act,
- Mr. John Poole – Appointed Actuary
1956.
- Mr. Sunil Kakar – Chief Financial Officer
- Mr. Prashant Sharma – Chief Investment Officer The Joint Auditors M/s. Ray & Ray, Chartered Accountants retire at
- Mr. Mohit Talwar – Director Corporate Development, Max the conclusion of the ensuing Annual General Meeting and have
India Limited expressed their unwillingness to be re-appointed at the Annual
- Mr. Stanley Tai – Chief Investment Officer, New York Life General Meeting.
International
M/s Price Waterhouse & Co., Chennai, Chartered Accountants are
Ms. Marielle Theron is the chairperson of the Investment Committee. proposed to be appointed as joint auditors of the Company at the
The Investment Committee met four times last financial year. The ensuing Annual General Meeting. The Company has received
Committee reviews the investment policy of the Company and certificates from M/s Price Waterhouse & Co., Chennai that their
recommends the same to the board and carries out a quarterly appointment as auditors, if made, will be in accordance with the
review of the investment function and fund performance of the limits specified under Section 224 (1B) of the Companies Act, 1956.
Company.
PARTICULARS OF DEPOSITS
3. Product Approval and Actuarial Committee, comprising of :
The Company has not accepted any deposits under Section 58A of
- Mr. Richard Mucci – Non executive Director
the Companies Act, 1956.
- Ms. Marielle Theron – Non executive director
- Mr. Rajesh Sud – Chief Executive Officer and Managing PARTICULARS OF EMPLOYEES
Director
The information required under section 217(2A) of the Companies
- Mr. Craig Merdian – Chief Financial Officer, New York
Act, 1956, read with Companies (Particular of Employees) Rules,
Life International
1975, forms part of this report as Annexure A. However, as permitted
- Mr. John Poole – Appointed Actuary
by Companies Act, 1956, this Annual Report is being sent to all
Mr. Richard Mucci is the Chairman of the Committee. The shareholders excluding the said Annexure. Any shareholder
Committee is responsible for reviewing various actuarial reports to interested in obtaining the particulars may obtain it by writing to
be submitted to IRDA, recommending levels of dividend to be paid the Company Secretary at the registered office of the Company.
to participating policyholders and is in charge of product
introduction, variation and withdrawal.
Pursuant to Section 217(2AA) of the Companies Act, 1956, your
4. HR Compensation and Organisation Committee, comprising
Directors hereby confirm that:
of:
- Mr. Analjit Singh – Non executive director 1. In the preparation of the Annual Accounts for the year ended
- Mr. Richard Mucci – Non executive director March 31, 2009, the applicable accounting standards have
- Mr. P. Dwarkanath – Director Group, Human Capital – been followed along with proper explanation, relating to any
Max India Ltd. material departures.
3 MNYL 1.p65 176 8/19/2009, 12:31 PM

Directors’ Report
2. Your Directors had selected such accounting policies and (RS. IN CRORES)
applied them consistently and made judgments and estimates
Year ended 31.03.2009
that are reasonable and prudent, so as to give a true and fair
Earnings (including equity infusion) 201
Outgo 116
financial year and of the Profit or Loss of the Company for
that period. Activities relating to Exports, initiatives taken to NA
increase exports, develop New Export markets,
3. Your Directors had taken proper and sufficient care for the
Export Plan etc.
with provisions of the Companies Act, 1956 for safeguarding ACKNOWLEDGMENTS
the assets of the Company and for preventing and detecting
The directors wish to place on record their deep appreciation for
fraud and other irregularities.
the hard work, dedicated efforts, teamwork and professionalism
4. Your Directors have prepared the Annual Accounts on a going shown by the employees and the Agents Advisors, which has enabled
concern basis. the Company to successfully establish itself amongst the leading
private life insurance companies in India. Your directors also express
ADDITIONAL INFORMATION
gratitude to the Insurance Regulatory and Development Authority
Information in accordance with the provisions of Section 217(1)(e) of India, the Reserve Bank of India, Central and State Governments
of the Companies Act, 1956 read with the Companies (Disclosure and the joint venture partners, Max India Limited and New York
of Particulars in the Report of Board of Directors) Rules, 1988, are Life International, LLC for their continued cooperation, support and
as follows: assistance.
A. Conservation of Energy : NA
B. Technology Absorption : NA For and on behalf of the Board of Directors
C. Foreign Exchange Earnings and Outgo : MAY 27, 2009 ANALJIT SINGH Chairman
3 MNYL 1.p65 177 8/19/2009, 12:31 PM

Auditors’ Report
TO THE MEMBERS OF MAX NEW YORK LIFE INSURANCE COMPANY concurrence with the Authority. We have relied upon the
LIMITED appointed actuary’s certificate in this regard for forming
our opinion on the financial statements of the Company.
1. We have audited the attached Balance Sheet of Max New
York Life Insurance Company Limited (‘Company’) as at March (e) On the basis of written representations received from the
31, 2009, the related Revenue Account, the Profit and Loss Directors and taken on record by the Board of Directors
Account and the Receipts and Payments Account of the of the Company, no Director is disqualified, as at March
Company for the year ended on that date (hereinafter referred 31, 2009, from being appointed as a Director in terms of
to as “financial statements”), annexed thereto which we have clause (g) of sub-section (1) of Section 274 of the
signed under reference to this report. These financial Companies Act, 1956;
statements are the responsibility of the management of the
(f) In our opinion, and to the best of our information and
Company. Our responsibility is to express an opinion on these
according to the explanations given to us, proper books
financial statements based on our audit.
of account as required by law have been maintained by
2. We conducted our audit in accordance with auditing standards the Company so far as appears from our examination of
generally accepted in India. Those standards require that we those books;
plan and perform the audit to obtain reasonable assurance as
(g) In our opinion, and to the best of our information and
to whether the financial statements are free of material
according to the explanations given to us, the investments
misstatement. An audit includes examining, on a test basis,
have been valued in accordance with the provisions of
evidence supporting the amounts and disclosures in the
the Insurance Act, 1938 and the Insurance Regulatory
financial statements. An audit also includes assessing the
and Development Authority (Preparation of Financial
accounting principles used and significant estimates made by
Statements and Auditors’ Report of Insurance Companies)
management, as well as evaluating the overall financial
Regulations, 2002 (‘the Regulations’) and orders /
statements presentation. We believe that our audit provides a
directions issued by Insurance Regulatory and
reasonable basis for our opinion.
Development Authority in this behalf;
3. We report that:
(h) In our opinion, and to the best of our information and
(a) We have obtained all the information and explanations, according to the explanations given to us, the accounting
which, to the best of our knowledge and belief were policies selected by the Company are appropriate and are
necessary for the purposes of our audit and have found in compliance with applicable accounting standards
them to be satisfactory; referred to under sub-section (3C) of Section 211 of the
Companies Act, 1956 to the extent applicable and with
(b) As the Company’s accounting system is centralized, no
accounting principles as prescribed in the Insurance
returns for the purposes of our audit are prepared at the
Regulatory and Development Authority (Preparation of
branches of the Company;
Financial Statements and Auditors’ Report of Insurance
(c) The Balance Sheet, Revenue Account, Profit and Loss Companies) Regulations, 2002 and orders/directions
Account and the Receipts and Payments Account referred issued by Insurance Regulatory and Development
to in this report are in agreement with the books of Authority in this behalf.
account;
(i) In our opinion and to the best of our information and
(d) The actuarial valuation of liabilities for life policies in according to the explanations given to us, the Balance
force is the responsibility of the Company’s Appointed Sheet, Revenue Account, Profit and Loss Account and the
Actuary. The actuarial valuation of these liabilities as at Receipts and Payments Account together with the notes
March 31, 2009 has been certified by the Appointed thereon and attached thereto are prepared in accordance
Actuary, and in his opinion, the assumptions for such with the provisions of the Insurance Regulatory and
valuation are in accordance with the guidelines and norms Development Authority (Preparation of Financial
issued by the Insurance Regulatory and Development Statements and Auditor’s Report of Insurance Companies)
Authority (IRDA) and the Actuarial Society of India in Regulations 2002, Insurance Act, 1938, the Insurance
3 MNYL 1.p65 178 8/19/2009, 12:31 PM

Auditors’ Report
Regulatory and Development Act, 1999 and the explanations given to us, we have reviewed the
Companies Act, 1956, to the extent applicable and in the management report and have found no apparent mistake
manner so required and give a true and fair view in or material inconsistencies with the financial statements;
conformity with accounting principles generally accepted
(ii) On the basis of our examination of books and records of
in India:
the Company and according to the information and
(i) of the state of affairs of the Company in so far as it explanations given to us, and based upon management
relates to the Balance Sheet as at March 31, 2009; representations and compliance certificates noted by the
audit committee, nothing has come to our attention which
(ii) of the results of activities in so far as it relates to the
causes us to believe that the Company has not complied
Revenue Account for the year ended March 31, 2009;
with the terms and conditions of registration stipulated
(iii) of the loss in so far as it relates to the Profit and Loss by the Insurance Regulatory and Development Authority.
Account for the year ended March 31, 2009; and
R.N. ROY K.N. GUPTA
(iv) of the receipts and payments in so far as it relates to Partner Partner
the Receipts and Payments Account for the year Membership No. 8608 Membership No.9169
ended March 31, 2009.
For and on behalf of For and on behalf of
4. Further, we certify to the best of our knowledge and belief Ray & Ray Thakur, Vaidyanath Aiyar & Co
that: Chartered Accountants Chartered Accountants
New Delhi
(i) On the basis of our examination of books and records of
MAY 27, 2009
the Company and according to the information and
3 MNYL 1.p65 179 8/19/2009, 12:31 PM

Auditors’ Certificate
In accordance with the information and explanations given to us and to the best of our knowledge and belief and based on our examination
of the books of account and other records maintained by Max New York Life Insurance Company Limited (‘Company’) for the year ended
March 31, 2009, we certify that:
1. We have verified the Company’s Cash balances and investments on the basis of certificates/confirmations received from the Company/
Custodians appointed by the Company and there are no securities relating to the Company’s loans. As at March 31, 2009, the
Company had no reversions and life interests;
2. The Company does not act as a trustee of any trust; and
3. No part of the assets of the policyholders’ funds has been directly or indirectly applied in contravention to the provisions of the
Insurance Act, 1938, relating to the application and investments of the policyholders funds.
This certificate is issued to comply with Schedule C of Insurance Regulatory and Development Authority (Preparation of Financial
Statements and Auditor’s Report of Insurance Companies) Regulations 2002, (‘the Regulations’), read with Regulation 3 of such Regulations
and may not be suitable for any other purpose.
R.N. ROY K.N. GUPTA

Partner Partner
Membership No. 8608 Membership No.9169
For and on behalf of For and on behalf of

Ray & Ray Thakur, Vaidyanath Aiyar & Co
Chartered Accountants Chartered Accountants
New Delhi
MAY 27, 2009
3 MNYL 1.p65 180 8/19/2009, 12:31 PM

Balance Sheet as at March 31, 2009 FORM A-BS
(All Amounts in Thousands of Indian Rupees)

Particulars Schedule As at As at
March 31, 2009 March 31, 2008
SOURCES OF FUNDS
SHAREHOLDERS’ FUNDS:
Share Capital 5 17,824,326 10,324,326
17,824,326 10,324,326
EMPLOYEE STOCK OPTION PLAN OUTSTANDING 79,941 74,750
[Refer to Note II (j) on Schedule 16]
RESERVES AND SURPLUS 6 - -
Credit/(Debit) fair value change account 7,850 92,545
Sub-Total 17,912,117 10,491,621
BORROWINGS 7 - -
POLICYHOLDERS’ FUNDS:
Credit/ (Debit) fair value change account - -
POLICY LIABILITIES
(Refer to Note II (r) & (s) on Schedule 16)
- Participating Individual Life Policies 17,673,319 12,480,763
- Participating Pension Policies 320,457 258,833
- Non-Participating Individual Life Policies 917,116 524,440
- Non-Participating Health Insurance Policies 18,128 -
- Non-Participating Group Policies 203,052 229,361
- Non-Participating Individual Linked Policies 370,006 187,317
- Non-Participating Linked Pension Policies 2,926 5,298
- Non-Participating Group Linked Policies - -
INSURANCE RESERVES - -
PROVISION FOR LINKED LIABILITIES
- Non - Participating Individual Linked Policies
- Linked Liabilities 29,534,268 17,155,679
- Fair Value Change (818,429) 28,715,839 510,457 17,666,136
- Non -Participating Linked Pension Policies
- Linked Liabilities 1,567,617 863,381
- Fair Value Change (130,306) 1,437,311 (23,090) 840,291
- Non - Participating Linked Group Policies
- Linked Liabilities 200,205 81,367
- Fair Value Change (4,508) 195,697 470 81,837
Sub-Total 49,853,851 32,274,276
FUNDS FOR FUTURE APPROPRIATIONS 169,460 433,523
TOTAL 67,935,428 43,199,420
INVESTMENTS
Shareholders’ Investments 8 5,229,050 4,167,294
Policyholders’ Investments 8A 20,036,454 14,434,318
ASSETS HELD TO COVER LINKED LIABILITIES 8B 30,348,847 18,588,264
3 MNYL 1.p65 181 8/19/2009, 12:31 PM

Balance Sheet as at March 31, 2009 FORM A-BS

Particulars Schedule As at As at
March 31, 2009 March 31, 2008
LOANS 9 - -
FIXED ASSETS 10 3,248,733 1,576,069
CURRENT ASSETS
Cash and Bank Balances 11 246,596 193,707
Advances and Other Assets 12 4,449,965 2,791,227
Sub-Total (A) 4,696,561 2,984,934
CURRENT LIABILITIES 13 5,650,221 4,676,754
PROVISIONS 14 26,958 9,542
Sub-Total (B) 5,677,179 4,686,296

NET CURRENT ASSETS (C) = (A) – (B) (980,618) (1,701,362)
(to the extent not written off or adjusted) 15 25,417 37,448
DEBIT BALANCE IN PROFIT AND LOSS ACCOUNT
(SHAREHOLDERS’ ACCOUNT) 10,027,545 6,097,389
Total 67,935,428 43,199,420
SIGNIFICANT ACCOUNTING POLICIES 16
AND NOTES TO THE ACCOUNTS
The Schedules referred to above form an integral For and on behalf of the Board of Directors
part of the Balance Sheet
As per our report of even date attached
R.N. ROY K.N GUPTA ANALJIT SINGH Chairman
Partner Partner JOHN HARRISON Director
Membership no. 8608 Membership no. 9169 RICHARD MUCCI Director
For and on behalf of For and on behalf of RAJESH SUD Managing Director & Chief Executive Officer
Ray and Ray Thakur, Vaidyanath Aiyar & Co. RAJIT MEHTA Chief Operating and Principal Officer
Chartered Accountants Chartered Accountants JOHN POOLE Chief Actuary (Appointed Actuary)
SUNIL KAKAR Chief Financial Officer
AJAY SETH Sr. Director -Legal & Compliance &
Company Secretary
New Delhi New Delhi Gurgaon
MAY 27, 2009 MAY 27, 2009 MAY 27, 2009
3 MNYL 1.p65 182 8/19/2009, 12:31 PM

Profit and Loss Account for the year ended March 31, 2009 FORM A-PL
SHAREHOLDERS’ ACCOUNT (Non-technical Account)

Particulars Schedule Year Ended Year Ended
March 31, 2009 March 31, 2008
TRANSFER FROM THE POLICYHOLDERS’ ACCOUNT
- Participating Individual Life Policies (Technical Account) 108,726 77,754
- Participating Pension Policies (Technical Account) 1,393 1,369
- Non-participating Individual Life Policies (Technical Account) - -
- Non-participating Health Insurance Policies (Technical Account) - -
- Non-participating Group Policies - -
- Non-participating Individual Linked Policies - -
- Non-participating Linked Pension Policies - -
INCOME FROM INVESTMENTS
(a) Interest, Dividends & Rent - Gross 262,367 158,222
[Gross of tax deducted at source Rs. Nil (2008: Rs Nil)]
(b) Profit on sale/redemption of investments 65,354 63,502
(c) (Loss) on sale/ redemption of investments (55,014) (7,829)
(d) Amortisation of discount/(premium) 65,541 2,743
OTHER INCOME
- Miscellaneous income 301 119
Total ( A ) 448,668 295,880
EXPENSES OTHER THAN THOSE DIRECTLY RELATED
TO THE INSURANCE BUSINESS
Employees remuneration and welfare benefits
[Refer to Notes II (i), (j), (p) and (y) on Schedule 16] 47,179 35,387
Filing fees, rates and taxes 19,605 21,531
Donations 24,151 888
Others
- Interest and bank charges 20,345 9,284
- Advertisement and publicity (Refer to Note II (o) on Schedule 16) 508,469 -
- Other miscellaneous expenses 861 1,471
- Depreciation 163 192
Bad debts written off - -
Contribution to the Policyholders Account (Technical Account)
(Refer to Note II (q) on Schedule 16)
- Participating Individual Life Policies - -
- Participating Pension Policies - -
- Non-participating Individual Life Policies 643,362 6,609
- Non-participating Health insurance Policies 310,115 37,472
- Non-participating Group Policies 5,709 7,234
- Non-participating Individual Linked Policies 2,470,055 1,640,284
- Non-participating Linked Pension Policies 195,992 96,274
- Non-participating Linked Group Policies 90,569 3,433
3 MNYL 1.p65 183 8/19/2009, 12:31 PM

Profit and Loss Account for the year ended March 31, 2009 FORM A-PL
SHAREHOLDER’S ACCOUNT (Non-technical Account)

Particulars Schedule Year Ended Year Ended
March 31, 2009 March 31, 2008
PROVISIONS (OTHER THAN TAXATION)

(a) For diminution in the value of investments( Net) 42,249 5,138
(Refer to Note I (e) on Schedule 16)
(b) Provision for doubtful debts - -
(c) Others - -
Total (B) 4,378,824 1,865,197
Profit/(Loss) before tax (C)=(A)-(B) (3,930,156) (1,569,317)
Provision for Taxation - -
Profit/ (loss) after tax (3,930,156) (1,569,317)
Appropriations
(a) Balance at the beginning of the year (6,097,389) (4,528,072)

(b) Interim dividends paid during the year - -
(c) Proposed final dividend - -
(d) Dividend distribution on tax - -
(e) Transfer to reserves/ other accounts - -
Profit/(Loss) carried forward to the Balance Sheet (10,027,545) (6,097,389)
Earning per Share (Basic and Diluted) (2.76) (1.95)

[(Refer to Note II (x) on Schedule 16)]
The Schedules referred to above form an integral For and on behalf of the Board of Directors
part of the Profit and Loss Account
Company Secretary
MAY 27, 2009 MAY 27, 2009 MAY 27, 2009
3 MNYL 1.p65 184 8/19/2009, 12:31 PM

Revenue Account for the year ended March 31, 2009 FORM A-RA
POLICY HOLDERS’ ACCOUNT (Technical Account)

YEAR ENDED MARCH 31, 2009

Particulars Schedule Participating Policies Non-Participating Linked Policies Total
(Non-Linked) Policies (Non-Linked) (Refer Annexure to the Revenue Account)
Individual Pension Individual Health Group Linked Linked Linked

Life Life Insurance Individual Pension Group
Premiums earned-net 1 10,886,717 85,463 376,217 254,652 204,627 25,319,058 1,271,215 174,642 38,572,591
Less : Reinsurance Ceded 118,248 - 49,097 36,243 59,730 118,936 - - 382,254
Add : Reinsurance Accepted - - - - - - - - -
10,768,469 85,463 327,120 218,409 144,897 25,200,122 1,271,215 174,642 38,190,337
Income from Investments
(a) Interest, Dividends & Rent - Gross 1,190,219 34,471 54,804 138 27,863 768,160 34,826 7,358 2,117,839
(b) Profit on sale/ redemption of investments 12,887 - - - - 1,146,370 32,229 8,556 1,200,042
(c) (Loss) on sale/ redemption of investments (2,925) - - - - (3,949,957) (149,712) (15,077) (4,117,671)
(d) Transfer/ Gain on revaluation/change in fair value * - - - - - (1,328,886) (107,215) (4,978) (1,441,079)
(e) Amortisation of discount/(premium) 58,454 (191) (430) - (193) 13 14 - 57,667
Other Income
Contribution from the Shareholders’ Account - - 643,362 310,115 5,709 2,470,055 195,992 90,569 3,715,802
Miscellaneous Income 2,960 5 284 270 47 5,389 463 44 9,462
Total (A) 12,030,064 119,748 1,025,140 528,932 178,323 24,311,266 1,277,812 261,114 39,732,399
Commission 2 1,054,781 922 51,459 50,958 4,175 2,705,514 47,589 367 3,915,765
Operating Expenses related to Insurance Business 3 4,502,777 7,929 521,086 449,137 155,815 9,727,788 625,075 99,964 16,089,571
Provision for doubtful debts 4,013 8 468 400 106 7,635 487 99 13,216
Bad debts written off 177 - 21 18 5 336 21 4 582
Provision for Tax - Fringe Benefit Tax 24,120 46 2,813 2,401 635 45,895 2,924 596 79,430
Provision (other than taxation)
(a) For diminution in the value of investments (Net) - - - - - - - - -
(b) Others - - - - - - - - -
Total (B) 5,585,868 8,905 575,847 502,914 160,736 12,487,168 676,096 101,030 20,098,564
Benefits Paid (Net) 4 1,432,747 22,056 56,617 7,890 43,896 591,706 7,068 46,224 2,208,204
Interim Bonuses Paid - - - - - - - - -
Change in valuation of liability against life policies in force:
(a) Gross ** 5,200,704 61,624 407,469 38,028 (21,116) 11,232,392 594,648 113,860 17,627,609
(b) (Amount ceded in Reinsurance) (8,148) - (14,793) (19,900) (5,193) - - - (48,034)
(c) Amount accepted in Reinsurance - - - - - - - - -
Total (C) 6,625,303 83,680 449,293 26,018 17,587 11,824,098 601,716 160,084 19,787,779
SURPLUS/ (DEFICIT) (D)= (A) - ( B ) - (C) (181,107) 27,163 - - - - - - (153,944)
Opening balance of Funds available for Future Appropriation 345,102 88,409 - - - - - - 433,511
SURPLUS / (DEFICIT) AVAILABLE FOR APPROPRIATION 163,995 115,572 - - - - - - 279,567
APPROPRIATIONS
Transfer to Shareholders’ Account 108,726 1,393 - - - - - - 110,119
Transfer to Other Reserves - - - - - - - - -
Funds available for Future Appropriations 55,269 114,179 - - - - - - 169,448
Insurance reserve carried to the Balance Sheet - - - - - - - - -
Details of Surplus
(a) Interim Bonus Paid - - - - - - - - -
(b) Allocation of Bonus to Policyholders [Refer to Note II (r) on Schedule 16] 1,174,106 14,007 - - - - - - 1,188,113
(c) Surplus Shown in the Revenue Account 163,995 115,572 - - - - - - 279,567
(d) Total Surplus : [(a)+(b)+(c)] 1,338,101 129,579 - - - - - - 1,467,680

* Represents the deemed realised gain/(loss) as per norms specified by the Authority
** Represents Mathematical Reserve considering allocation of Bonus
As required by Section 40 B(4) of the Insurance Act, 1938 we certify that all expenses of management in respect of life insurance business in India by the Insurer have been fully debited to Policyholders’ Revenue Account
as expenses.
The Schedules referred to above form an integral part of the Revenue Account For and on behalf of the Board of Directors
Company Secretary
MAY 27, 2009 MAY 27, 2009 MAY 27, 2009
3 MNYL 1.p65 185 8/19/2009, 12:31 PM

Revenue Account for the year ended March 31, 2008 FORM A-RA
POLICY HOLDERS’ ACCOUNT (Technical Account)


Particulars Schedule Participating Policies Non-Participating Linked Policies Total

Life Life Insurance Individual Pension Group
Premiums earned - net
Premiums 1 9,023,253 87,192 230,579 40,936 437,544 16,519,333 748,278 58,931 27,146,046
Less : Reinsurance Ceded 82,721 - 23,824 - 53,248 60,724 - - 220,517
Add : Reinsurance Accepted - - - - - - - - -
8,940,532 87,192 206,755 40,936 384,296 16,458,609 748,278 58,931 26,925,529
(a) Interest, Dividends & Rent - Gross 818,767 18,231 40,428 - 16,168 292,063 12,591 2,536 1,200,784
(b) Profit on sale/ redemption of investments 3,724 - - - 16 1,097,247 40,693 3,492 1,145,172
(c) (Loss) on sale/ redemption of investments - - - - - (266,159) (14,561) (833) (281,553)
(d) Transfer/ Gain on revaluation/change in fair value * - - - - - 200,340 (27,207) 510 173,643
(e) Amortisation of discount/(premium) 3,581 (118) (668) - 160 61 14 - 3,030
Other Income
Contribution from the Shareholders’ Account - - 6,609 37,472 7,234 1,640,284 96,274 3,433 1,791,306
Miscellaneous Income 1,010 4 53 22 47 2,317 109 2 3,564
Total (A) 9,767,614 105,309 253,177 78,430 407,921 19,424,762 856,191 68,071 30,961,475
Commission 2 1,049,238 1,015 32,080 11,808 2,360 2,712,410 35,686 10 3,844,607
Operating Expenses related to Insurance Business 3 3,045,008 6,213 38,163 66,115 193,172 5,084,069 212,568 8,001 8,653,309
Provision for doubtful debts 3,727 9 1 89 287 5,583 293 13 10,002
Bad debts written off 39 - - 1 3 58 3 - 104
Provision for Tax - Fringe Benefit Tax 17,471 43 7 417 1,348 26,175 1,372 58 46,891
Provision (other than taxation)
(a) For diminution in the value of investments( Net) - - - - - - - - -
(b) Others - - - - - - - - -
Total (B) 4,115,483 7,280 70,251 78,430 197,170 7,828,295 249,922 8,082 12,554,913
Benefits Paid (Net) 4 1,056,961 20,009 43,297 - 37,498 198,933 269 3,112 1,360,079
Interim Bonuses Paid - - - - - - - - -
Change in valuation of liability against life policies in force:
(a) Gross ** 4,200,423 57,756 149,930 - 187,158 11,397,534 606,000 56,877 16,655,678
(b) (Amount ceded in Reinsurance ) (28,117) - (10,301) - (13,905) - - - (52,323)
(c) Amount accepted in Reinsurance - - - - - - - - -
Total ( C ) 5,229,267 77,765 182,926 - 210,751 11,596,467 606,269 59,989 17,963,434
SURPLUS/ (DEFICIT) ( D )= ( A) - ( B ) - ( C ) 422,864 20,264 - - - - - - 443,128
Deficit at the beginning of the year - - - - - - - - -
SURPLUS / (DEFICIT) AVAILABLE FOR APPROPRIATION 422,864 20,264 - - - - - - 443,128
APPROPRIATIONS
Transfer to Shareholders’ Account 77,754 1,369 - - - - - - 79,123
Transfer to Other Reserves - - - - - - - - -
Funds available for Future Appropriations 345,110 18,895 - - - - - - 364,005
Insurance reserve carried to the Balance Sheet - - - - - - - - -
Details of Surplus
(a) Interim Bonus Paid - - - - - - - - -
(b) Allocation of Bonus to Policyholders [Refer to Note II (r) on Schedule 16] 923,740 13,201 - - - - - - 936,941
(c) Surplus Shown in the Revenue Account 422,864 20,264 - - - - - - 443,128
(d) Total Surplus : [(a)+(b)+(c)] 1,346,604 33,465 - - - - - - 1,380,069
* Represents the deemed realised gain/(loss) as per norms specified by the Authority
** Represents Mathematical Reserve considering allocation of Bonus
As required by Section 40 B(4) of the Insurance Act, 1938 we certify that all expenses of management in respect of life insurance business in India by the Insurer have been fully debited to Policyholders’ Revenue Account
as expenses.
The Schedules referred to above form an integral part of the Revenue Account For and on behalf of the Board of Directors
Company Secretary
MAY 27, 2009 MAY 27, 2009 MAY 27, 2009
3 MNYL 1.p65 186 8/19/2009, 12:31 PM

Receipts and Payments Account for the year ended March 31, 2009
March 31, 2009 March 31, 2008
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 38,447,726 27,214,919
Amount received in Advance from customers (250,744) 718,658
Commission paid to agents (3,564,321) (3,974,264)
Claims Paid to policyholders (2,298,846) (1,487,568)
Claims Recovered from Reinsurers 86,191 18,384
Reinsurance Premium Paid (259,792) (89,670)
Payments/advances to suppliers/employees (16,774,552) (8,110,575)
Deposit recovered / given from / to RBI - -
Cash deployed in operations 15,385,662 14,289,884
Wealth tax paid (484) (496)
Fringe Benefit Tax Paid (81,389) (46,558)
Gratuity Paid (29,759) (11,473)
Net cash deployed in operating activities 15,274,030 14,231,358
Cash flows from investing activities
Purchase of fixed assets (2,206,903) (1,016,465)
Proceed from sale of fixed assets 12,200 8,323
Purchase of Investments (including policy loans) (139,402,094) (70,594,741)
Proceeds from sale/maturity of investments 116,644,238 53,020,828
Interest received 2,231,418 1,147,549
Tax deducted at Source - -
Net cash from investing activities (22,721,141) (17,434,504)
Cash flows from financing activities
Proceeds from issuance of share capital 7,500,000 3,000,000
Interest paid - -
Net cash generated from financing activities 7,500,000 3,000,000
Net increase/ (decrease) in cash and cash equivalents 52,889 (203,146)
Cash and cash equivalents at beginning of year 193,707 396,853
Cash and cash equivalents at end of year 246,596 193,707
Notes :
1. The above Receipts and Payments Account has been prepared under the “Direct Method” as set out in the Accounting Standard-3 on Cash Flow Statement issued by The
Institute of Chartered Accountants of India , as prescribed by Insurance Regulatory & Development Authority (Preparation of Financial Statements and Auditors Report of
Insurance Companies ) Regulations, 2002.
2. Figures in parenthesis represent cash outflows.
3. Previous year’s amounts have been reclassified wherever necessary to conform to current year’s classification.
4. Cash and cash equivalents at the end of the year consist of cash, cheques in hand, stamps in hand and balance with banks.
As at As at
March 31, 2009 March 31, 2008
Cash in hand 65,865 -
Stamps in hand 1,986 -
Cheques in hand - -
Balance with banks
- Current Account (including Remittances in Transit) 178,745 193,707
Total 246,596 193,707
As per our report of even date attached For and on behalf of the Board of Directors
Company Secretary
MAY 27, 2009 MAY 27, 2009 MAY 27, 2009
3 MNYL 1.p65 187 8/19/2009, 12:31 PM

Schedules annexed to and forming part of the financial statements

SCHEDULE - 1
PREMIUM
(Refer to Note I (a) on Schedule 16)
Particulars Participating Policies Non-Participating Linked Policies Total

Life Life Individual Pension Group
First year premiums 2,498,401 510 198,394 217,623 60,620 12,027,688 762,492 171,447 15,937,175
Renewal premiums 7,491,897 72,313 172,527 37,029 66,890 11,876,331 423,324 3,195 20,143,506
Single premiums 896,419 12,640 5,296 - 77,117 1,415,039 85,399 - 2,491,910
Total premium 10,886,717 85,463 376,217 254,652 204,627 25,319,058 1,271,215 174,642 38,572,591
Business % 28.22% 0.22% 0.98% 0.66% 0.53% 65.64% 3.30% 0.45% 100%
Total premium in India 10,886,717 85,463 376,217 254,652 204,627 25,319,058 1,271,215 174,642 38,572,591
Total Premium outside India - - - - - - - - -
PREMIUM
(Refer to Note I (a) on Schedule 16)

First year premiums 2,485,743 730 107,764 40,936 357,802 9,791,449 417,409 58,855 13,260,688
Renewal premiums 5,868,288 73,439 116,604 - 79,742 4,876,857 152,789 76 11,167,795
Single premiums 669,222 13,023 6,211 - - 1,851,027 178,080 - 2,717,563
Total premium 9,023,253 87,192 230,579 40,936 437,544 16,519,333 748,278 58,931 27,146,046
Business % 33.24% 0.32% 0.85% 0.15% 1.61% 60.85% 2.76% 0.22% 100%
Total premium in India 9,023,253 87,192 230,579 40,936 437,544 16,519,333 748,278 58,931 27,146,046
Total Premium outside India - - - - - - - - -
SCHEDULE - 2
COMMISSION
(Refer to Note I (c) on Schedule 16)


Commission paid
Direct first year premiums 760,960 16 44,190 48,907 2,481 2,306,453 40,905 355 3,204,267
Direct renewal premiums 293,056 904 7,190 2,051 1,694 386,044 6,042 12 696,993
Direct single premiums 765 2 79 - - 13,017 642 - 14,505
Total (A) 1,054,781 922 51,459 50,958 4,175 2,705,514 47,589 367 3,915,765
Add : Commission on Re-insurance Accepted - - - - - - - - -
Less : Commission on Re-insurance Ceded - - - - - - - - -
Net Commission 1,054,781 922 51,459 50,958 4,175 2,705,514 47,589 367 3,915,765
3 MNYL 1.p65 188 8/19/2009, 12:31 PM


SCHEDULE - 2 (Contd.)
Break-up of commission expenses (gross) incurred to procure business is as per details below:

Agents 750,981 897 42,537 46,327 3,826 1,373,193 41,703 364 2,259,828
Brokers 3,805 5 344 25 - 11,836 301 - 16,316
Corporate Agency 247,283 13 6,258 2,451 - 1,166,229 4,247 - 1,426,481
Referral Fees 6,546 - 426 108 - 13,260 319 - 20,659
Others - - - - - - - - -
Bancassurance 46,118 7 1,814 1,787 - 140,953 1,018 - 191,697
Direct Selling 48 - 80 260 349 43 1 3 784
Total (B) 1,054,781 922 51,459 50,958 4,175 2,705,514 47,589 367 3,915,765
COMMISSION
(Refer to Note I (c) on Schedule 16)

Commission paid
Direct first year premiums 829,055 50 27,469 11,808 1,958 2,429,633 31,720 10 3,331,703
Direct renewal premiums 219,165 951 4,510 - 402 261,259 2,261 - 488,548
Direct single premiums 1,018 14 101 - - 21,518 1,705 - 24,356
Total (A) 1,049,238 1,015 32,080 11,808 2,360 2,712,410 35,686 10 3,844,607
Add : Commission on Re-insurance Accepted - - - - - - - - -
Less : Commission on Re-insurance Ceded - - - - - - - - -
Net Commission 1,049,238 1,015 32,080 11,808 2,360 2,712,410 35,686 10 3,844,607
Break-up of commission expenses (gross) incurred to procure business is as per details below:

Agents 576,843 893 25,020 10,260 2,119 1,450,492 28,585 8 2,094,220

Brokers 3,407 5 320 20 1 26,018 169 - 29,940
Corporate Agency 374,723 83 3,908 810 134 942,515 4,552 1 1,326,726
Referral Fees 2,490 - 147 13 1 7,333 111 - 10,095
Others
Bancassurance 91,478 33 2,679 705 105 286,047 2,269 1 383,317
Direct Selling 297 1 6 - - 5 - - 309
Total (B) 1,049,238 1,015 32,080 11,808 2,360 2,712,410 35,686 10 3,844,607
3 MNYL 1.p65 189 8/19/2009, 12:31 PM


SCHEDULE - 3
OPERATING EXPENSES RELATED TO INSURANCE BUSINESS
(Refer to Note I (k) on Schedule 16)

Employee remuneration and welfare benefits 1,963,075 3,578 221,383 192,818 64,147 3,878,867 232,283 46,309 6,602,460
[Refer to Notes II (i), (j), (p) and (y) on Schedule 16]
Travel, conveyance and vehicle running expenses 144,687 277 16,873 14,404 6,954 275,324 17,536 3,574 479,629
Training expenses (including Agent advisors) 227,935 438 26,579 22,697 6,974 433,729 27,628 5,629 751,609
Rent, rates & taxes 282,359 544 32,928 28,114 7,544 537,287 34,225 6,974 929,975
Repairs & Maintenance 101,200 195 11,804 10,074 2,697 192,562 12,265 2,499 333,296
Printing and stationery 85,676 164 9,991 8,531 2,339 163,027 10,385 2,115 282,228
Communication expenses 198,845 533 21,357 17,949 5,530 372,165 22,837 4,438 643,654
Legal, professional and consultancy charges
[Refer to Notes II (p) on Schedule 16] 206,404 394 23,997 20,507 7,782 394,156 24,935 5,068 683,243
Medical fees 18,708 36 2,182 1,863 784 35,599 2,268 462 61,902
Auditors’ fees, expenses etc :
(a) as auditor 728 1 85 73 19 1,388 88 18 2,400
(b) as advisor or in any other capacity, in respect of :
(i) Taxation matters 20 - 2 2 1 39 2 1 67
(ii) Insurance matters - - - - - - - - -
(iii) Management services; and - - - - - - - - -
(c) in any other capacity
- Certification 33 - 4 3 1 61 4 1 107
- Out of pocket expenses 364 1 42 36 23 692 44 9 1,211
Advertisement and publicity
[Refer to Notes II (p) on Schedule 16] 320,770 545 35,140 30,571 7,703 719,433 124,316 6,985 1,245,463
Interest and bank charges 21,382 41 2,494 2,129 623 40,686 2,592 529 70,476
Service Tax Expenditure 127,888 123 37,523 28,433 - 868,096 33,545 136 1,095,744
Information technology maintenance expenses 76,647 146 8,940 7,630 2,044 145,847 9,291 1,894 252,439
Recruitment (including Agent advisors) 105,076 116 9,603 8,863 2,038 251,012 9,682 1,497 387,887
Electricity ,water and utilities 84,911 163 9,903 8,454 2,294 161,574 10,292 2,097 279,688
Insurance 7,670 14 894 765 6,181 14,595 930 1,751 32,800
Policy issuance and servicing costs 317,975 215 24,824 24,270 23,318 841,248 24,419 2,780 1,259,049
(Profit)/Loss on fluctuation in foreign exchange 4,079 8 476 406 107 7,762 494 101 13,433
Other miscellaneous expenses 8,915 17 1,039 888 250 16,962 1,081 221 29,373
Depreciation 197,430 380 23,023 19,657 6,462 375,677 23,933 4,876 651,438
Total 4,502,777 7,929 521,086 449,137 155,815 9,727,788 625,075 99,964 16,089,571
SCHEDULE - 3
OPERATING EXPENSES RELATED TO INSURANCE BUSINESS

Employees remuneration and welfare benefits
[Refer to Notes II (i), (j), (p) and (y) on Schedule 16] 1,239,395 2,733 4,439 28,745 86,640 2,029,436 92,476 3,423 3,487,287
Travel, conveyance and vehicle running expenses 148,328 361 60 3,543 11,446 222,222 11,647 495 398,102
Training expenses (including Agent advisors) 148,459 362 59 3,543 11,459 222,421 11,658 497 398,458
Rent, rates & taxes 175,379 427 70 4,187 13,535 262,753 13,772 586 470,709
Repairs & Maintenance 55,781 135 20 1,332 4,305 83,571 4,380 187 149,711
Printing and stationery 56,606 139 21 1,351 4,369 84,807 4,446 188 151,927
Communication expenses 112,582 274 44 2,688 8,689 168,670 8,840 374 302,161
Legal, professional and consultancy charges
[Refer to Notes II (p) on Schedule 16] 56,944 138 22 1,359 4,394 85,314 4,471 190 152,832
Medical fees 21,389 52 9 511 1,651 32,046 1,680 71 57,409
Auditors’ fees, expenses etc :
(a) as auditor 894 2 - 21 69 1,341 70 3 2,400
(b) as advisor or in any other capacity, in respect of :
(i) Taxation matters 21 - - - 2 31 2 - 56
(ii) Insurance matters - - - - - - - - -
(iii) Management services; and - - - - - - - - -
(c) in any other capacity
- Certification 7 - - - 1 11 1 - 20
- Out of pocket expenses 193 - - 5 15 289 15 1 518
Advertisement and publicity [Refer to Notes II (p) on Schedule 16] 230,783 493 1,051 5,230 15,615 387,850 16,939 673 658,634
Interest and bank charges 12,667 31 5 303 978 18,979 995 43 34,001
Service Tax Expenditure 109,122 124 22,381 - - 45,705 - - 177,332
Information technology maintenance expenses 74,024 182 28 1,768 5,712 110,902 5,814 246 198,676
Recruitment (including Agent advisors) 43,389 55 691 838 1,807 94,510 2,578 75 143,943
Electricity ,water and utilities 55,177 133 22 1,318 4,259 82,666 4,333 184 148,092
Insurance 7,000 17 2 168 539 10,488 548 22 18,784
Policy issuance and servicing costs 364,557 233 9,187 6,043 7,471 941,818 17,506 300 1,347,115
(Profit)/Loss on fluctuation in foreign exchange (2,070) (5) (1) (49) (160) (3,101) (162) (7) (5,555)
Other miscellaneous expenses 6,326 15 3 150 494 9,487 504 22 17,001
Depreciation 128,055 312 50 3,061 9,882 191,853 10,055 428 343,696
Total 3,045,008 6,213 38,163 66,115 193,172 5,084,069 212,568 8,001 8,653,309
3 MNYL 1.p65 190 8/19/2009, 12:31 PM


SCHEDULE - 4
BENEFITS PAID [NET] IN INDIA
(Refer to Note I (d) on Schedule 16)

Insurance Claims *
(a) By death 319,865 946 58,428 10,090 76,472 374,897 1,850 43 842,591
(b) By Maturity 836 - - - 638 - - 20,494 21,968
(c) Annuities/ Pension payment, - - - - - - - - -
(d) Other benefits
— Surrenders 187,024 8,570 2,345 - - 244,928 5,218 25,687 473,772
— Bonus to Policyholders
[Refer to Note II (r) on Schedule 16] 978,531 12,540 - - - - - - 991,071
— Others 12,080 - 1,516 - 100 3,545 - - 17,241
Total paid 1,498,336 22,056 62,289 10,090 77,210 623,370 7,068 46,224 2,346,643
(Amount ceded in re-insurance) :
(a) By death (65,589) - (5,672) (2,200) (33,314) (31,664) - - (138,439)
(b) By Maturity - - - - - - - - -
(d) Other benefits - - - - - - - - -
Total ceded (65,589) - (5,672) (2,200) (33,314) (31,664) - - (138,439)
Amount accepted in re-insurance :
(a) By death - - - - - - - - -
(b) By Maturity - - - - - - - - -
(d) Other benefits - - - - - - - - -
Total accepted - - - - - - - - -
Net Paid 1,432,747 22,056 56,617 7,890 43,896 591,706 7,068 46,224 2,208,204
* Including claim investigation expenses amounting to Rs. 1,510


Insurance Claims *
(a) By death 191,081 - 46,046 - 49,582 149,742 145 3,106 439,702
(b) By Maturity (60) - - - 9,452 - - - 9,392
(d) Other benefits
— Surrenders 176,582 7,687 6,237 - - 63,347 124 6 253,983
— Bonus to Policyholders
[Refer to Note II (r) on Schedule 16] 699,785 12,322 - - - - - - 712,107
— Others 9,960 - 500 - - 500 - - 10,960
Total paid 1,077,348 20,009 52,783 - 59,034 213,589 269 3,112 1,426,144
(Amount ceded in re-insurance) :
(a) By death (20,387) - (9,486) - (21,536) (14,656) - - (66,065)
(b) By Maturity - - - - - - - - -
(d) Other benefits - - - - - - - - -
Total ceded (20,387) - (9,486) - (21,536) (14,656) - - (66,065)
Amount accepted in re-insurance :
(a) By death - - - - - - - - -
(b) By Maturity - - - - - - - - -
(d) Other benefits - - - - - - - - -
Total accepted - - - - - - - - -
Net Paid 1,056,961 20,009 43,297 - 37,498 198,933 269 3,112 1,360,079
* Including claim investigation expenses amounting to Rs. 2,638
3 MNYL 1.p65 191 8/19/2009, 12:31 PM


SCHEDULE - 5
SHARE CAPITAL
Particulars As at As at
March 31, 2009 March 31, 2008
Authorised Capital
3,000,000,000 Equity Shares of Rs 10 each
(Previous Year: 3,000,000,000 Equity Shares) 30,000,000 30,000,000
Issued and Subscribed Capital
Called up Capital
Less: Calls unpaid - -
Add : Shares forfeited (Amount originally paid up) - -
Less: Par value of equity shares bought back - -
Less: Preliminary Expenses (to the extent not written off or adjusted) - -
Total 17,824,326 10,324,326
Of the above 1,313,500,014 equity shares of Rs 10 each fully paid up

(2008:758,500,014 equity shares of Rs 10 each fully paid up) are held
by Max India Limited (the holding company) and its nominees.
SCHEDULE - 5A
PATTERN OF SHAREHOLDING (as certified by Management)
Particulars As at March 31, 2009 As at March 31, 2008
Shareholder Shares of Rs 10 % of Holding Shares of Rs 10 % of Holding
each fully paid up each fully paid up
Promoters
- Indian 1,313,500,014 73.69% 758,500,014 73.47%
- Foreign 463,432,586 26.00% 268,432,586 26.00%
Others 5,500,000 0.31% 5,500,000 0.53%
Total 1,782,432,600 100% 1,032,432,600 100%
SCHEDULE - 6
March 31, 2009 March 31, 2008
Capital Reserve - -
Capital Redemption Reserve - -
Share Premium - -
Revaluation Reserve - -
General Reserve - -
Less: Debit balance in Profit and Loss Account, if any - -
Less: Amount utilised for Buy-back - -
Catastrophe Reserve - -
Other Reserves - -
Balance of profit/ (loss) in Profit and Loss Account - -
Total - -
3 MNYL 1.p65 192 8/19/2009, 12:31 PM


SCHEDULE - 7
BORROWINGS
March 31, 2009 March 31, 2008
Debentures/ Bonds - -
Banks - -
Financial Institutions - -
Others - -
Total - -
SCHEDULE - 8
INVESTMENTS SHAREHOLDERS (IN INDIA)
(Refer to Note I (e), II (g) and (h) on Schedule 16)
March 31, 2009 March 31, 2008
LONG TERM INVESTMENTS
Government securities and Government guaranteed bonds including Treasury Bills
[Market Value Rs 2,306,364 (2008: Rs. 1,370,656)] 2,314,361 1,441,598
Other Approved Securities - -
Other investments
(a) Shares
(aa) Equity [Historical Cost Rs 170,426 ( 2008: Rs. 158,274)] 144,068 213,027
(ab) Preference - -
(b) Mutual Funds - -
(c) Derivative Instruments - -
(d) Debentures/ Bonds [Market Value Rs 145,741 (2008: Rs. 118,024)] 150,000 123,719
(e) Other Securities
(ea) Commercial Paper / Certificate of Deposits - -
(eb) Deposits with Bank 61,354 55,379
(f) Subsidiaries - -
Investment Properties-Real Estate - -
Investments in Infrastructure and Social Sector [Market Value Rs 789,696 ( 2008: Rs. 595,821)] 808,893 650,938
Application Monies
Other than Approved Investments - -
(i) Debentures/ Bonds [Market Value Rs 117,553 ( 2008: Rs. 113,342)] 119,791 119,774
(ii) Equity Shares [Historical Cost Rs 50,599 ( 2008: Rs. 71,974)] 37,415 97,688
(iii) Pass Through Certificates [Market Value Rs. Nil (2008: Rs 12,959)] - 13,205
SHORT TERM INVESTMENTS
Government securities and Government guaranteed bonds including Treasury Bills
[Market Value Rs 100,719 ( 2008: Rs. Nil)] 98,322 -
Other Approved Securities - -
Other Investments
(a) Shares - -
(aa) Equity - -
(ab) Preference Shares [Market Value Rs 401 ( 2008: Rs. Nil)] 506 -
(b) Mutual Funds - -
(c) Derivative Instruments - -
(d) Debentures/ Bonds [Market value Rs 8,998 ( 2008: Rs. NIL)] 9,002 -
(ea) Commercial Paper / Certificate of Deposits [Market Value Rs 492,534 (2008: Rs. 198,527)] 492,725 198,584
(eb) Deposits with Bank 928,421 140,954
(f) Subsidiaries - -
Investment Properties-Real Estate - -
Investments in Infrastructure and Social Sector [Market value Rs 49,616 (2008: Rs. Nil)] 49,972 -
Other than Approved Investments
(i) Pass Through Certificates [Market Value Rs 14,188 (2008: Rs. NIL)] 14,220 -
(ii) Mutual Funds [Historical Cost Rs Nil (2008: Rs. 1,105,895)] - 1,112,428
Total 5,229,050 4,167,294
Aggregate Amount of Investments other than listed equity securities and derivative instruments 5,047,567 3,856,579
Aggregate Market Value of Investments other than listed equity securities and derivative instruments 5,015,584 3,718,090
3 MNYL 1.p65 193 8/19/2009, 12:31 PM


SCHEDULE - 8A
INVESTMENTS POLICYHOLDERS (IN INDIA)
As at March 31, 2009
Particulars Participating Policies Non-Participating Policies Total
Individual Pension Individual Health Group Individual Pension
Life Life Linked Linked
Government securities and Government
guaranteed bonds including Treasury Bills *
(Market Value Rs 13,389,665) 12,127,086 373,388 563,041 21,096 237,415 180,039 - 13,502,065
Other Approved Securities
(a) Shares
(aa) Equity (Historical Cost 464) - - 468 - - - - 468
(ab) Preference - - - - - - - -
(b) Mutual Funds - - - - - - - -
(c) Derivative Instruments - - - - - - - -
(d) Debentures/ Bonds
(Market Value Rs 1,254,740) 1,023,589 11,095 87,240 - 41,020 70,000 11,871 1,244,815
(ea) Commercial Paper / Certificate of Deposits - - - - - - - -
(eb) Deposits with Bank - - - - - - - -
(f) Subsidiaries - - - - - - - -
(g) Investment Properties-Real Estate - - - - - - - -
(h) Policy Loans (Market Value Rs 48,267) 48,267 - - - - - - 48,267
Application Monies - - - - - - - -
Investments in Infrastructure and Social Sector
(Market Value Rs 4,118,294) 3,623,024 73,603 220,137 - 42,081 118,385 - 4,077,230
(i) Debentures/ Bonds
(Market Value Rs 169,173) 149,669 - 18,037 - - 1,963 - 169,669
(ii) Equity Shares (Historical Cost Rs 38) - - 38 - - - - 38
guaranteed bonds including Treasury Bills
(Market Value Rs 193,087) 190,540 - - - - - - 190,540
(a) Shares
(aa) Equity - - - - - - - -
(ab) Preference - - - - - - - -
(b) Mutual Funds - - - - - - - -
(Market Value Rs 141,124) 137,352 782 1,484 - 1,579 - - 141,197
(e) Others Securities
(ea) Commercial Paper / Certificate of Deposits
[Market Value Rs 475,528] 471,522 - 4,737 - - - - 476,259
(eb) Deposits with Bank [Market Value Rs ] - - - - - - - -
(Market Value Rs 185,288) 155,919 - 29,987 - - - - 185,906
Other than Approved Investments - - - - - - - -
Total 17,926,968 458,868 925,169 21,096 322,095 370,387 11,871 20,036,454
Aggregate Market Value of
Investments - Policyholders 17,834,445 461,184 937,114 21,833 333,265 375,863 11,968 19,975,672
* Includes Rs 106,605 of securities under section 7 of Insurance Act, 1938 (Refer to Note II (g) on Schedule 16)
3 MNYL 1.p65 194 8/19/2009, 12:31 PM


SCHEDULE - 8A
INVESTMENTS POLICYHOLDERS (IN INDIA)
As at March 31, 2008
Particulars Participating Policies Non-Participating Policies Total
Individual Pension Individual Health Group Individual Pension
Life Life Linked Linked
guaranteed bonds including Treasury Bills*
(Market Value Rs 8,814,223) 8,390,976 324,260 261,988 504 237,690 42,800 - 9,258,218
(a) Shares
(aa) Equity - - - - - - - -
(ab) Preference - - - - - - - -
(b) Mutual Funds - - - - - - - -
(Market Value Rs 1,113,911) 896,426 12,456 89,847 - 42,634 70,000 11,856 1,123,219
(h) Policy Loans (Market Value Rs 28,772) 28,767 - 5 - - - - 28,772
(Market Value Rs 3,651,391) 3,314,637 33,698 210,128 - 42,072 118,395 - 3,718,930
Debentures/ Bonds (Market Value Rs 164,294) 149,559 - 18,037 - - 1,963 - 169,559
guaranteed bonds including Treasury Bills - - - - - - - -
(a) Shares
(aa) Equity - - - - - - - -
(ab) Preference - - - - - - - -
(b) Mutual Funds - - - - - - - -
(Market Value Rs 50,004) 44,208 1,932 3,665 - 196 - - 50,001
(e) Others Securities
Investments in Infrastructure and Social Sector - - - - - - - -
Mutual Funds (Historical Cost Rs 85,211) 85,619 - - - - - - 85,619
Total 12,910,192 372,346 583,670 504 322,592 233,158 11,856 14,434,318
Aggregate Market Value of Investments -
Policyholders 12,426,620 356,077 562,903 502 318,397 232,167 11,549 13,908,215
* Includes Rs 106,761 of securities under section 7 of Insurance Act, 1938 (Refer to Note II (g) on Schedule 16)
3 MNYL 1.p65 195 8/19/2009, 12:31 PM


SCHEDULE 8B
ASSETS HELD TO COVER LINKED LIABILITIES
Particulars Individual Pension Group Total Individual Pension Group Total
Linked Linked Linked Linked Linked Linked
guaranteed bonds including Treasury Bills 4,498,537 127,780 35,718 4,662,035 689,768 45,145 16,307 751,220
[Historical Cost of Rs.4,733,881
(2008: Rs. 756,252)]
Other Approved Securities - - - - - - - -
Other investments
(a) Shares
(aa) Equity [Historical Cost Rs.11,647,086
(2008: Rs. 6,932,140)] 10,590,059 540,844 15,482 11,146,385 7,040,855 349,877 17,691 7,408,423
(ab) Preference - - - - - - - -
(b) Mutual Funds - - - - - - - -
[Historical Cost of Rs.3,483,254
(2008: Rs.881,177)] 3,459,657 129,952 36,049 3,625,658 847,278 40,354 1,000 888,632
(e) Other Securities -Fixed Deposits
[Historical Cost of Rs 50,000
(2008: Rs. 250,000)] 50,000 - - 50,000 247,500 2,500 - 250,000
Investments in Infrastructure and
Social Sector [Historical Cost Rs.2,338,694
(2008: Rs. 1,364,372)] 2,246,258 168,332 12,056 2,426,646 1,319,904 51,007 2,271 1,373,182
(a) Debentures/ Bonds
[Historical Cost Rs. NIL (2008: Rs. 1,213,443)] - - - - 1,189,334 17,070 9,038 1,215,442
(b) Equity [Historical Cost Rs. 3,612,502
(2008: Rs. 2,256,821)] 2,781,653 127,837 3,210 2,912,700 2,086,352 103,837 4,732 2,194,921
guaranteed bonds including Treasury Bills 204,342 52,842 16,014 273,198 91,783 14,286 9,839 115,908
[Historical Cost of Rs. 269,535
(2008: Rs. 119,756)]
Other Approved Securities - - - - - - - -
Other Investments
(a) Shares
(aa) Equity - - - - - - - -
(ab) Preference - - - - - - - -
(b) Mutual Funds Units - - - - - - - -
(d) Debentures/ Bonds [Historical Cost
Rs. 410,578 (2008: Rs. 284,557)] 393,968 15,974 - 409,942 248,535 29,038 8,498 286,071
(e) Others
(i) Commercial Paper, and Certificate of Deposit
[Historical Cost Rs.1,756,867
(2008: Rs. 1,878,800)] 1,612,163 179,414 17,564 1,809,141 1,845,626 68,188 4,384 1,918,198
(ii) Fixed Deposits [Historical
Cost Rs.500,000 (2008: Rs. 100,369)] 487,500 12,500 - 500,000 100,369 - - 100,369
Investments in Infrastructure and
Social Sector [Historical Cost Rs.594,455
(2008: Rs. 431,888)] 592,989 24,615 - 617,604 376,654 57,662 5,998 440,314
(a) Debentures/ Bonds [Historical Cost
Rs.40,111 (2008: Rs. 241,919)] 50,239 81 89 50,409 256,075 - - 256,075
(b) Mutual Funds [Historical Cost Rs.360,000
(2008: Rs. 69,216)] 350,000 10,000 - 360,000 60,059 9,731 - 69,790
NET CURRENT ASSETS 1,398,474 47,140 59,515 1,505,129 1,266,045 51,595 2,079 1,319,719
Total 28,715,839 1,437,311 195,697 30,348,847 17,666,137 840,290 81,837 18,588,264
3 MNYL 1.p65 196 8/19/2009, 12:31 PM


SCHEDULE - 9
LOANS
March 31, 2009 March 31, 2008
SECURITY -WISE CLASSIFICATION

Secured
(a) On mortgage of property
(aa) In India - -
(bb) Outside India - -
(b) On Shares, Bonds, Govt. Securities, etc. - -
(c) Loans against policies - -
(d) Others - -
Unsecured - -
Total - -
BORROWER-WISE CLASSIFICATION
(a) Central and State Governments - -
(b) Banks and Financial Institutions - -
(c) Subsidiaries - -
(d) Companies - -
(e) Loans against policies - -
(f) Others - -
Total - -
PERFORMANCE-WISE CLASSIFICATION
(a) Loans classified as standard
(aa) In India - -
(b) Non-standard loans less provisions
(aa) In India - -
Total - -
MATURITY- WISE CLASSIFICATION

(a) Short Term - -
(b) Long Term - -
Total - -
3 MNYL 1.p65 197 8/19/2009, 12:31 PM


SCHEDULE - 10
FIXED ASSETS
(Refer to Note I (f) on Schedule 16)
Particulars Gross Block Depreciation Net Block
April 1, 2008 Additions Sale/ March 31, April 1, For The On Sales/ March 31, March 31, March 31,
Disposal 2009 2008 Year Disposal 2009 2009 2008
Goodwill - - - - - - - - - -
Intangibles - Software 365,712 258,769 - 624,481 205,118 127,274 - 332,392 292,089 160,594
Land-Freehold - - - - - - - - - -
Leasehold improvements 707,466 1,152,143 4,879 1,854,730 237,371 187,607 3,784 421,194 1,433,536 470,095
Buildings - - - - - - - - - -
Furniture and fixtures 247,041 229,565 7,691 468,915 73,695 41,596 5,339 109,952 358,963 173,346
Information Technology equipment
(Including communication
networks and servers ) 645,029 535,964 2,308 1,178,685 362,047 200,004 2,036 560,015 618,670 282,982
Vehicles 67,470 11,506 23,731 55,245 35,446 10,161 19,297 26,310 28,935 32,024
Office equipment 308,509 267,214 9,681 566,042 132,144 84,953 7,935 209,162 356,880 176,365
Others - - - - - - - - - -
Total 2,341,227 2,455,161 48,290 4,748,098 1,045,821 651,595 38,391 1,659,025 3,089,073 1,295,406
Capital Work in Progress
(including Capital advances) 159,660 280,663
Grand Total 2,341,227 2,455,161 48,290 4,748,098 1,045,821 651,595 38,391 1,659,025 3,248,733 1,576,069
Previous year 1,572,103 814,966 45,842 2,341,227 741,133 343,888 39,200 1,045,821 1,576,069
SCHEDULE - 11
March 31, 2009 March 31, 2008
Cash [Including Insurance Stamp Rs 1,986 (Previous Year : Rs Nil] 67,851 -

Balances with banks in India*
(a) Deposit Accounts
(aa) Short-term fixed deposit (i.e maturing in 12 months) - -
(ab) Others - -
(b) Current accounts 178,745 193,707
(c) Others - -
Money at Call and Short Notice
(a) With Banks - -
(b) With other Institutions - -
Others - -
Total 246,596 193,707
*Balances with non-scheduled bank included in (b) above
3 MNYL 1.p65 198 8/19/2009, 12:31 PM


SCHEDULE - 12
ADVANCES AND OTHER ASSETS
March 31, 2009 March 31, 2008
ADVANCES
Reserve deposit with ceding companies - -
Application money for investments - 827
Prepayments 1,111,043 335,668
Advances to Directors / Officers - -
Advance tax paid and taxes deducted at source
(Net of provision for taxation) 5,351 1,559
Others
-Advances to suppliers 391,799 191,749
Less : Provision for doubtful expenses 5,551 386,248 2,487 189,262
-Advances to employees for travel, etc. 71,046 49,119
Total (A) 1,554,021 565,035
OTHER ASSETS
Income accrued on investments 560,991 432,170
Outstanding Premiums 533,917 409,899
Agents’ Balances 7,751 3,649
Foreign Agencies Balances - -
Due from other entities carrying on insurance business
(including reinsurers) 135,276 83,028
Due from subsidiaries / holding company - -
Deposits with Reserve Bank of India
(Pursuant to Section 7 of Insurance Act, 1938) * - -
Others:
- Service Tax Unutilised Credit 1,062,786 944,927
- Security and other deposits 598,255 354,339
Total (B) 2,895,944 2,226,192
Total (C) = (A) + (B) 4,449,965 2,791,227
* (Refer to Note II (g) on Schedule 16)
SCHEDULE - 13
CURRENT LIABILITIES
March 31, 2009 March 31, 2008
Agents’ balances 477,128 117,933
Balance due to other insurance companies 337,652 215,190
Deposits held on reinsurance companies - -
Premium received in advance 60,495 69,028
Unallocated premium 526,099 944,971
Sundry creditors 3,233,233 2,511,588
Due to holding company 1,063 375
Claims Outstanding ( includes pending investigation ) * 132,037 84,240
Annuities Due - -
Due to Officers/ Directors - -
Others:
-Proposal / Policyholder deposits 587,205 410,544
-Withholding Tax Deducted at Source 258,914 291,354
-Service Tax Liability 619 13,541
-Other Statutory liabilities 35,776 17,990
Total 5,650,221 4,676,754
*Includes Claims incured but not reported Rs. 81,873 (2008 : Rs 52,929)
3 MNYL 1.p65 199 8/19/2009, 12:31 PM


SCHEDULE - 14
PROVISIONS
(Refer to Note II (aa) on Schedule 16)
March 31, 2009 March 31, 2008
For taxation (less payments and taxes deducted at source) - -

For proposed dividends - -
For dividend distribution tax - -
Others :
- Provision for gratuity 25,376 7,385
- Provision for fringe benefit tax 57 1,285
- Provision for non compensated leaves 1,114 500
- Provision for wealth tax 411 372
Total 26,958 9,542
SCHEDULE - 15
(Refer to Note II (j) on Schedule 16)
March 31, 2009 March 31, 2008
Discount Allowed in issue of shares/ debentures - -

Others
- Deferred Employee Compensation 25,417 37,448
Total 25,417 37,448
3 MNYL 1.p65 200 8/19/2009, 12:31 PM

Annexure to Revenue Account-break Up Of Unit Linked Business (UL)
Revenue Account for the year ended March 31, 2009

Policyholders’ Account (Technical Account)
Linked Life Linked Pension Linked Group Total
Particulars Schedule Non-Unit Unit Total Non-Unit Unit Total Non-Unit Unit Total Unit Linked
(1) (2) (3)=(1) + (2) (4) (5) (6)=(4) + (5) (7) (8) (9)= (7) + (8) (10)=(3)+ (6)+(9)
Premiums earned – net
(a) Premium 4,911,922 20,407,136 25,319,058 267,918 1,003,297 1,271,215 414 174,228 174,642 26,764,915
(b) Reinsurance ceded (118,936) - (118,936) - - - - - - (118,936)
(a) Interest, Dividend & Rent - Gross 24,456 743,704 768,160 1,033 33,793 34,826 - 7,358 7,358 810,344
(b) Profit on sale/redemption of investments - 1,146,370 1,146,370 - 32,229 32,229 - 8,556 8,556 1,187,155
(c) Loss on sale/redemption of investments - (3,949,957) (3,949,957) - (149,712) (149,712) - (15,077) (15,077) (4,114,746)
(d) Unrealised gain/(loss) - (1,328,886) (1,328,886) - (107,215) (107,215) - (4,978) (4,978) (1,441,079)
(e) Amortisation of discount/(premium) 13 - 13 14 - 14 - - - 27
Other income:
(a) Linked Income UL1 5,279,440 (5,279,440) - 202,080 (202,080) - 9,866 (9,866) - -
(b) Contribution from the Shareholders’ Account 2,470,055 - 2,470,055 195,992 - 195,992 90,569 - 90,569 2,756,616
(c) Others 4,882 507 5,389 443 20 463 44 - 44 5,896
TOTAL (A) 12,571,832 11,739,434 24,311,266 667,480 610,332 1,277,812 100,893 160,221 261,114 25,850,192
Commission Paid 2,705,514 - 2,705,514 47,589 - 47,589 367 - 367 2,753,470
Operating Expenses related to Insurance Business 9,303,462 424,326 9,727,788 618,294 6,781 625,075 99,827 137 99,964 10,452,827
Provision for Tax - Fringe Benefit Tax 45,895 - 45,895 2,924 - 2,924 596 - 596 49,415
Provision for doubtful debts 7,635 - 7,635 487 - 487 99 - 99 8,221
Bad debts written off 336 - 336 21 - 21 4 - 4 361
TOTAL (B) 12,062,842 424,326 12,487,168 669,315 6,781 676,096 100,893 137 101,030 13,264,294
Benefits Paid (Net) UL2 326,301 265,405 591,706 537 6,531 7,068 - 46,224 46,224 644,998
Interim Bonus Paid - - - - - - - - - -
Change in Valuation Liability 182,689 11,049,703 11,232,392 (2,372) 597,020 594,648 - 113,860 113,860 11,940,900
TOTAL (C) 508,990 11,315,108 11,824,098 (1,835) 603,551 601,716 - 160,084 160,084 12,585,898
SURPLUS/ (DEFICIT) (D) =(A)-(B)-(C) - - - - - - - - - -
APPROPRIATIONS
Transfer to Shareholders’ Account - - - - - - - - - -
Funds available for future appropriations - - - - - - - - - -
Total (D) - - - - - - - - - -
Revenue Account for the year ended March 31, 2008

Policyholders’ Account (Technical Account)
Linked Life Linked Pension Linked Group Total
Particulars Schedule Non-Unit Unit Total Non-Unit Unit Total Non-Unit Unit Total Unit Linked
(1) (2) (3)=(1) + (2) (4) (5) (6)=(4) + (5) (7) (8) (9)= (7) + (8)(10)=(3)+ (6)+(9)
Premiums earned – net
(a) Premium 3,463,828 13,055,505 16,519,333 133,912 614,366 748,278 - 58,931 58,931 17,326,542
(b) Reinsurance ceded (60,724) - (60,724) - - - - - - (60,724)
(a) Interest, Dividend & Rent - Gross 20,360 271,703 292,063 1,037 11,554 12,591 - 2,536 2,536 307,190
(b) Profit on sale/redemption of investments - 1,097,247 1,097,247 - 40,693 40,693 - 3,492 3,492 1,141,432
(c) Loss on sale/redemption of investments - (266,159) (266,159) - (14,561) (14,561) - (833) (833) (281,553)
(d) Unrealised gain/(loss) - 200,340 200,340 - (27,207) (27,207) - 510 510 173,643
(e) Amortisation of discount/(premium) 61 - 61 14 - 14 - - - 75
Other income:
(a) Linked Income UL1 2,896,813 (2,896,813) - 23,872 (23,872) - 4,647 (4,647) - -
(b) Contribution from the Shareholders’ Account 1,640,284 - 1,640,284 96,274 - 96,274 3,433 - 3,433 1,739,991
(c ) Others 2,317 - 2,317 109 - 109 2 - 2 2,428
TOTAL (A) 7,962,939 11,461,823 19,424,762 255,218 600,973 856,191 8,082 59,989 68,071 20,349,024
Commission Paid 2,712,410 - 2,712,410 35,686 - 35,686 10 - 10 2,748,106
Operating Expenses related to Insurance Business 5,084,069 - 5,084,069 212,568 - 212,568 8,001 - 8,001 5,304,638
Provision for Tax - Fringe Benefit Tax 26,175 - 26,175 1,372 - 1,372 58 - 58 27,605
Provision for doubtful debts 5,583 - 5,583 293 - 293 13 - 13 5,889
Bad debts written off 58 - 58 3 - 3 - - - 61
TOTAL (B) 7,828,295 - 7,828,295 249,922 - 249,922 8,082 - 8,082 8,086,299
Benefits Paid (Net) UL2 121,833 77,100 198,933 - 269 269 - 3,112 3,112 202,314
Interim Bonus Paid - - - - - - - - - -
Change in Valuation Liability 12,811 11,384,723 11,397,534 5,296 600,704 606,000 - 56,877 56,877 12,060,411
TOTAL (C) 134,644 11,461,823 11,596,467 5,296 600,973 606,269 - 59,989 59,989 12,262,725
SURPLUS/ (DEFICIT) (D) =(A)-(B)-(C) - - - - - - - - - -
APPROPRIATIONS
Transfer to Shareholders’ Account - - - - - - - - - -
Funds available for future appropriations - - - - - - - - - -
Total (D) - - - - - - - - - -
3 MNYL 1.p65 201 8/19/2009, 12:31 PM

Schedules Annexed to Revenue Account (UL) forming part of Financial Statements

Schedule-UL1
Linked Income (recovered from linked funds)* YEAR ENDED MARCH 31, 2009
Particulars Life Linked Unit Pension Linked Unit Linked Group Unit Total
(1) (2) (3) (4)= (1)+(2)+(3)
Fund Administration charges - - - -
Fund Management charge 268,460 13,095 1,260 282,815
Policy Administration charge 2,672,061 38,558 8,606 2,719,225
Surrender charge 1,340,778 150,419 - 1,491,197
Switching charge 41 8 - 49
Mortality charge 998,100 - - 998,100
Rider Premium charge - - - -
Partial withdrawal charge - - - -
Miscellaneous charge - - - -
TOTAL (UL-1) 5,279,440 202,080 9,866 5,491,386
* (net of service tax, if any)
Schedule-UL1
Linked Income (recovered from linked funds)* YEAR ENDED MARCH 31, 2008
Particulars Life Linked Unit Pension Linked Unit Linked Group Unit Total
(1) (2) (3) (4)= (1)+(2)+(3)
Fund Administration charges - - - -
Fund Management charge 145,672 5,968 500 152,140
Policy Administration charge 2,050,398 16,409 4,147 2,070,954
Surrender charge 106,893 1,495 - 108,388
Switching charge 23 - - 23
Mortality charge 593,827 - - 593,827
Rider Premium charge - - - -
Partial withdrawal charge - - - -
Miscellaneous charge - - - -
TOTAL (UL-1) 2,896,813 23,872 4,647 2,925,332
* (net of service tax, if any)
3 MNYL 1.p65 202 8/19/2009, 12:31 PM


SCHEDULE–UL2
BENEFITS PAID [NET]
Linked Life Linked Pension Linked Group
Non-Unit Unit Total Non- Unit Total Non- Unit Total Total
Unit Unit Unit Linked
Sl No. Particulars (1) (2) (3)=(1) + (2) (4) (5) (6)=(4) + (5) (7) (8)(9)= (7) + (8) (10)=(3)+ (6)+(9)
1 Insurance Claims
(a) Claims by Death 354,420 20,477 374,897 537 1,313 1,850 - 43 43 376,790
(b) Claims by Maturity - - - - - - - 20,494 20,494 20,494
(c) Annuities / Pension payment - - - - - - - - - -
(d) Other benefits
- Surrender - 244,928 244,928 - 5,218 5,218 - 25,687 25,687 275,833
- Survival - - - - - - - - - -
- Others 3,545 - 3,545 - - - - - - 3,545
Sub Total (A) 357,965 265,405 623,370 537 6,531 7,068 - 46,224 46,224 676,662
2 Amount Ceded in reinsurance
(a) Claims by Death 31,664 - 31,664 - - - - - - 31,664
(b) Claims by Maturity - - - - - - - - - -
(d) Other benefits
- Surrender - - - - - - - - - -
- Survival - - - - - - - - - -
Sub Total (B) 31,664 - 31,664 - - - - - - 31,664
TOTAL (A) - (B) 326,301 265,405 591,706 537 6,531 7,068 - 46,224 46,224 644,998
Benefits paid to claimants:
In India 357,965 265,405 623,370 537 6,531 7,068 - 46,224 46,224 676,662
Outside India - - - - - - - - - -
TOTAL (UL2) 357,965 265,405 623,370 537 6,531 7,068 - 46,224 46,224 676,662
SCHEDULE–UL2
BENEFITS PAID [NET]
Linked Life Linked Pension Linked Group
Non-Unit Unit Total Non- Unit Total Non- Unit Total Total
Unit Unit Unit Linked
Sl No. Particulars (1) (2) (3)=(1) + (2) (4) (5) (6)=(4) + (5) (7) (8)(9)= (7) + (8) (10)=(3)+ (6)+(9)
1 Insurance Claims
(a) Claims by Death 136,489 13,253 149,742 - 145 145 - 3,106 3,106 152,993
(d) Other benefits
- Surrender - 63,347 63,347 - 124 124 - 6 6 63,477
- Survival - - - - - - - - - -
- Others - 500 500 - - - - - - 500
Sub Total (A) 136,489 77,100 213,589 - 269 269 - 3,112 3,112 216,970
2 Amount Ceded in reinsurance
(a) Claims by Death 14,656 - 14,656 - - - - - - 14,656
(d) Other benefits
- Surrender - - - - - - - - - -
- Survival - - - - - - - - - -
Sub Total (B) 14,656 - 14,656 - - - - - - 14,656
TOTAL (A) - (B) 121,833 77,100 198,933 - 269 269 - 3,112 3,112 202,314
Benefits paid to claimants:
In India 136,489 77,100 213,589 - 269 269 - 3,112 3,112 216,970
Outside India - - - - - - - - - -
TOTAL (UL2) 136,489 77,100 213,589 - 269 269 - 3,112 3,112 216,970
3 MNYL 1.p65 203 8/19/2009, 12:31 PM


Form A-BS(UL)
Fund Balance Sheet as at March 31, 2009
Particulars Schedule Funds
Balanced Conservative Debt Growth Growth High Dynamic Guaranteed Guaranteed Pension Pension Pension
Super Growth Opportuinities Fund Fund Balanced Conservative Debt
Fund Dynamic Income
Sources of Funds
Policyholders’ Funds:
Policyholder contribution F-1 1,548,058 230,212 356,540 21,377,786 6,741,318 91,314 301,264 12,085 1,771 117,777 28,985 52,789
Revenue Account 88,814 33,277 42,143 (935,452) (1,139,864) (24,255) (9,631) 398 61 647 1,598 1,543
Total 1,636,872 263,489 398,683 20,442,334 5,601,454 67,059 291,633 12,483 1,832 118,424 30,583 54,332
Application of Funds
Investments F-2 1,517,359 248,803 361,729 19,408,859 5,431,405 63,052 273,100 11,430 1,628 111,055 29,056 51,029
Current Assets F-3 128,102 56,697 47,151 1,153,921 216,024 12,697 18,533 1,345 227 9,145 1,527 3,303
Less: Current Liabilities and Provisions F-4 8,589 42,011 10,197 120,446 45,975 8,690 - 292 23 1,776 - -
Net current assets 119,513 14,686 36,954 1,033,475 170,049 4,007 18,533 1,053 204 7,369 1,527 3,303
Total 1,636,872 263,489 398,683 20,442,334 5,601,454 67,059 291,633 12,483 1,832 118,424 30,583 54,332
Net Asset Value (NAV) per Unit: 16.33 14.85 13.78 19.43 8.45 6.71 8.94 11.48 11.11 12.18 12.41 12.21
(a) Net Asset as per Balance Sheet
(Total Assets less Current Liabilities and
Provisions) (Rs. In ‘000) 1,636,872 263,489 398,683 20,442,334 5,601,454 67,059 291,633 12,483 1,832 118,424 30,583 54,332
(b) Number of Units outstanding 100,231,892 17,738,229 28,939,096 1,052,157,795 662,927,618 9,994,386 32,606,290 1,087,528 164,877 9,721,255 2,465,301 4,449,602
(c) NAV per Unit (a)/(b) (Rs.) 16.33 14.85 13.78 19.43 8.45 6.71 8.94 11.48 11.11 12.18 12.41 12.21
Significant accounting policies and notes to the accounts 16
The Schedules referred to above form an integral part of the Fund Balance Sheet.
Form A-BS(UL)
Pension Pension Growth Growth Group Group Group Group Total
Growth Growth Balanced Conservative Growth Superannuation Superannuation Superannuation
Super Balanced Conservative Growth
Sources of Funds
Policyholder contribution F-1 757,822 671,393 36,209 107,375 47,299 419 4,382 175 32,484,973
Revenue Account (51,725) (143,518) 935 5,129 (6,234) 8 - - (2,136,126)
Total 706,097 527,875 37,144 112,504 41,065 427 4,382 175 30,348,847
Investments F-2 678,610 520,421 35,987 59,686 40,433 76 - - 28,843,718
Current Assets F-3 33,634 28,741 2,720 52,818 1,340 351 4,382 175 1,772,833
Less: Current Liabilities and Provisions F-4 6,147 21,287 1,563 - 708 - - - 267,704
Net current assets 27,487 7,454 1,157 52,818 632 351 4,382 175 1,505,129
Total 706,097 527,875 37,144 112,504 41,065 427 4,382 175 30,348,847
Net Asset Value (NAV) per Unit: 11.58 5.54 11.96 12.36 10.59 11.78 10.00 10.00
Provisions) (Rs. In ‘000) 706,097 527,875 37,144 112,504 41,065 427 4,382 175 30,348,847
(b) Number of Units outstanding 60,989,919 95,292,215 3,105,698 9,101,679 3,877,133 36,227 438,151 17,465
(c) NAV per Unit (a)/(b) (Rs.) 11.58 5.54 11.96 12.36 10.59 11.79 10.00 10.02
3 MNYL 1.p65 204 8/19/2009, 12:31 PM


Form A-BS(UL)
Fund Dynamic Income
Sources of Funds
Policyholder contribution F-1 814,819 137,078 133,944 12,122,851 2,669,765 38,221 - 7,304 905 37,670 6,517 11,845
Revenue Account 144,884 25,220 11,944 1,687,323 (128,645) 42 - 435 45 2,035 (8) 210
Total 959,703 162,298 145,888 13,810,174 2,541,120 38,263 - 7,739 950 39,705 6,509 12,055
Investments F-2 910,120 149,443 140,291 12,827,916 2,343,829 20,663 - 7,031 796 38,074 7,184 10,267
Current Assets F-3 68,244 18,629 13,859 1,392,473 258,924 30,084 - 820 155 3,669 350 2,814
Less: Current Liabilities and Provisions F-4 18,661 5,774 8,262 410,215 61,633 12,484 - 112 1 2,038 1,025 1,026
Net current assets 49,583 12,855 5,597 982,258 197,291 17,600 - 708 154 1,631 (675) 1,788
Total 959,703 162,298 145,888 13,810,174 2,541,120 38,263 - 7,739 950 39,705 6,509 12,055
Net Asset Value (NAV) per Unit: 17.37 14.35 12.12 23.02 11.70 10.02 - 11.51 10.97 12.74 11.90 11.34
Provisions) (Rs. In ‘000) 959,703 162,298 145,888 13,810,174 2,541,120 38,263 - 7,739 950 39,705 6,509 12,055
(b) Number of Units outstanding 55,254,618 11,312,248 12,035,444 599,799,322 217,159,822 3,817,659 - 672,376 86,569 3,116,469 547,217 1,062,762
(c) NAV per Unit (a)/(b) (Rs.) 17.37 14.35 12.12 23.02 11.70 10.02 - 11.51 10.98 12.74 11.90 11.34

Form A-BS(UL)
Sources of Funds
Policyholder contribution F-1 488,414 281,901 42,466 2,860 31,089 49 - - 16,827,698
Revenue Account 51,378 (39,671) 3,034 128 2,212 - - - 1,760,566
Total 539,792 242,230 45,500 2,988 33,301 49 - - 18,588,264
Investments F-2 519,311 213,862 44,135 2,905 32,669 49 - - 17,268,545
Current Assets F-3 25,241 33,579 6,427 85 659 - - - 1,856,012
Less: Current Liabilities and Provisions F-4 4,760 5,211 5,062 2 27 - - - 536,293
Net current assets 20,481 28,368 1,365 83 632 - - - 1,319,719
Total 539,792 242,230 45,500 2,988 33,301 49 - - 18,588,264
Net Asset Value (NAV) per Unit: 13.89 7.94 12.14 11.02 12.29 - - -
Provisions) (Rs. In ‘000) 539,792 242,230 45,500 2,988 33,301 49 - - 18,588,264
(b) Number of Units outstanding 38,862,555 30,491,605 3,749,253 271,102 2,710,311 - - - -
(c) NAV per Unit (a)/(b) (Rs.) 13.89 7.94 12.14 11.02 12.29 - - - -
3 MNYL 1.p65 205 8/19/2009, 12:31 PM


Form A-RA(UL)
Fund Revenue Account Year Ended March 31, 2009
Fund Dynamic Income
Income from investments
Interest income 59,223 13,231 15,013 487,479 38,108 656 2,600 453 70 3,290 577 1,598
Dividend income 3,151 209 - 91,244 31,206 360 689 11 1 128 8 -
Profit on sale of investment 35,576 7,550 24,075 846,848 187,562 611 3,677 241 1 1,845 771 1,206
Loss on sale of investment (75,643) (11,011) (7,043) (2,549,699) (1,252,562) (14,437) (13,739) (407) (29) (5,372) (505) (48)
Profit on inter fund transfer/
Sale of investment 1,164 1,784 6,019 22,325 7,561 247 1,085 43 1 124 403 334
Loss on inter fund transfer/
Sale of investment (263) (3,032) (8,687) (3,607) (9,685) (66) - (38) (9) (12) (109) (427)
Miscellaneous Income 7 - - 354 144 - 2 - - - - -
Unrealised Gain/loss* (65,422) 1,268 3,033 (1,295,409) 40,191 (10,864) (1,505) (179) 1 (590) 626 (1,055)
Total (A) (42,207) 9,999 32,410 (2,400,465) (957,475) (23,493) (7,191) 124 36 (587) 1,771 1,608
Fund management expenses 12,513 1,752 1,991 200,702 48,432 726 2,180 146 18 721 148 247
Service tax on FMC 1,350 190 220 21,608 5,312 79 261 16 2 80 17 28
Fund administration expenses - - - - - - - - - - - -
Other charges F-5 - - - - - - - - - - - -
Total (B) 13,863 1,942 2,211 222,310 53,744 805 2,441 162 20 801 165 275
Net Income for the year (A-B) (56,070) 8,057 30,199 (2,622,775) (1,011,219) (24,297) (9,631) (37) 16 (1,388) 1,606 1,333
Add: Fund revenue account at the
beginning of the period 144,884 25,220 11,944 1,687,323 (128,645) 42 - 435 45 2,035 (8) 210
Fund revenue account at the end
of the year Mar 31, 2009 88,814 33,277 42,143 (935,452) (1,139,864) (24,255) (9,631) 398 61 647 1,598 1,543
* Net change in mark to market value of investments
The Schedules referred to above form an integral part of the Fund Revenue Account.

Form A-RA(UL)

Interest income 17,669 4,695 3,403 2,007 1,487 4 - - 651,563
Dividend income 3,099 2,729 228 - 229 - - - 133,292
Profit on sale of investment 19,682 4,044 3,238 2,434 759 1 - - 1,140,121
Loss on sale of investment (74,989) (67,986) (6,901) (452) (6,154) - - - (4,086,977)
Profit on inter fund transfer/sale of investment 3,101 719 1,089 232 803 - - - 47,034
Loss on inter fund transfer/sale of investment (5) (259) (1,331) (104) (135) - - - (27,769)
Miscellaneous Income 7 13 - - - - - - 527
Unrealised Gain/loss* (63,295) (42,901) (1,213) 1,176 (4,944) 3 - - (1,441,079)
Total (A) (94,731) (98,946) (1,487) 5,293 (7,955) 8 - - (3,583,288)
Fund management expenses 7,561 4,419 555 262 442 - - - 282,815
Service tax on FMC 811 482 57 30 49 - - - 30,592
Fund administration expenses - - - - - - - - -
Other charges F-5 - - - - - - - - -
Total (B) 8,372 4,901 612 292 491 - - - 313,407
Net Income for the year (A-B) (103,103) (103,847) (2,099) 5,001 (8,446) 8 - - (3,896,695)
beginning of the period 51,378 (39,671) 3,034 128 2,212 - - - 1,760,566
Fund revenue account at the end
of the year Mar 31, 2009 (51,725) (143,518) 935 5,129 (6,234) 8 - - (2,136,129)
3 MNYL 1.p65 206 8/19/2009, 12:31 PM


Form A-RA(UL)
Fund Dynamic Income
Interest income 33,178 8,766 8,098 194,693 4,847 2 - 300 46 1,115 171 233
Dividend income 810 67 - 18,350 2,541 - - 4 - 24 1 -
Profit on sale of investment 54,529 9,662 679 831,826 146,941 - - 301 15 1,520 29 12
Loss on sale of investment (9,607) (2,142) (1,232) (185,911) (56,902) - - (60) (6) (500) (70) (28)
Profit on inter fund transfer/ sale of investment 2,699 566 1,005 36,811 12,203 6 - 6 1 81 1 16
Loss on inter fund transfer/ sale of investment (136) (236) (335) (9,249) (339) - - (4) - (103) (12) (39)
Miscellaneous Income - - - - 2 - - - - - - -
Unrealised Gain/loss* 18,904 (385) 1,139 403,618 (222,931) 39 - (41) (4) (195) (128) 3
Total (A) 100,377 16,298 9,354 1,290,138 (113,638) 47 - 506 52 1,942 (8) 197
Fund management expenses 8,191 1,197 988 120,193 15,007 5 - 82 9 248 22 29
Fund administration expenses -
Other charges F-5 - - - - - - - - - - - -
Total (B) 8,191 1,197 988 120,193 15,007 5 - 82 9 248 22 29
Net Income for the year (A-B) 92,186 15,101 8,366 1,169,945 (128,645) 42 - 424 43 1,694 (30) 168
beginning of the period 52,698 10,119 3,578 517,378 - - - 11 2 341 22 42
Fund revenue account at the
end of the year Mar 31, 2008 144,884 25,220 11,944 1,687,323 (128,645) 42 - 435 45 2,035 (8) 210
* Net change in mark to market value of investments

The Schedules referred to above form an integral part of the Fund Revenue Account.

Form A-RA(UL)

Interest income 8,623 470 1,715 143 602 - - - 263,002
Dividend income 858 58 37 - 40 - - - 22,790
Profit on sale of investment 37,299 515 1,549 10 1,704 - - - 1,086,591
Loss on sale of investment (10,281) (3,030) (376) (16) (379) - - - (270,540)
Profit on inter fund transfer/ sale of investment 975 250 172 3 51 - - - 54,846
loss on inter fund transfer/ sale of investment (331) (166) (48) (11) (3) - - - (11,012)
Miscellaneous Income - - - - - - - - 2
Unrealised Gain/loss* 10,262 (37,150) 137 (2) 375 - - - 173,641
Total (A) 47,405 (39,053) 3,186 127 2,390 - - - 1,319,320
Fund management expenses 5,054 618 279 13 205 - - - 152,140
Fund administration expenses -
Other charges F-5 - - - - - - - - -
Total (B) 5,054 618 279 13 205 - - - 152,140
Net Income for the year (A-B) 42,351 (39,671) 2,907 114 2,185 - - - 1,167,180
beginning of the period 9,027 - 127 14 27 - - - 593,386
Fund revenue account at the
end of the year Mar 31, 2008 51,378 (39,671) 3,034 128 2,212 - - - 1,760,566
3 MNYL 1.p65 207 8/19/2009, 12:31 PM

Schedules to Fund Balance Sheet and Fund Revenue Account

SCHEDULE: F-1
POLICYHOLDERS’ CONTRIBUTION FOR THE YEAR ENDED MARCH 31, 2009
Particulars Funds
Fund Dynamic Income
Opening balance 814,819 137,078 133,944 12,122,851 2,669,765 38,221 - 7,304 905 37,670 6,517 11,845
Add: Additions during the year* 748,395 102,757 232,069 9,696,783 4,301,223 58,179 307,755 6,640 1,277 82,319 23,943 54,778
Less: Deductions during the year* 15,156 9,623 9,473 441,848 229,670 5,086 6,491 1,859 411 2,212 1,475 13,834
Closing balance 1,548,058 230,212 356,540 21,377,786 6,741,318 91,314 301,264 12,085 1,771 117,777 28,985 52,789
* Additions represents units creation and deductions represent units cancellation

Particulars Funds
Opening balance 488,414 281,901 42,466 2,860 31,089 49 - - 16,827,698

Add: Additions during the year* 359,618 408,894 60,999 106,649 36,459 832 4,382 175 16,594,126
Less: Deductions during the year* 90,210 19,402 67,256 2,134 20,249 462 - - 936,851
Closing balance 757,822 671,393 36,209 107,375 47,299 419 4,382 175 32,484,973

Particulars Funds
Fund Dynamic Income *
Opening balance 472,588 97,647 77,344 5,046,052 - - - 3,534 460 12,176 695 2,106
Add: Additions during the year* 349,299 54,645 89,765 7,089,771 2,705,722 38,221 - 5,177 741 25,781 6,308 11,819
Less: Deductions during the year* 7,068 15,214 33,165 12,972 35,957 - - 1,407 296 287 486 2,080
Closing balance 814,819 137,078 133,944 12,122,851 2,669,765 38,221 - 7,304 905 37,670 6,517 11,845

Particulars Funds
Opening balance 215,177 - 18,989 574 5,231 - - - 5,952,573

Add: Additions during the year* 281,401 281,921 27,082 2,310 27,585 50 - - 10,997,598
Less: Deductions during the year* 8,164 20 3,605 24 1,727 1 - - 122,473
Closing balance 488,414 281,901 42,466 2,860 31,089 49 - - 16,827,698
3 MNYL 1.p65 208 8/19/2009, 12:31 PM


SCHEDULE: F-2
INVESTMENTS AS AT MARCH 31, 2009
Particulars Funds
Approved Investments
Government Bonds 537,090 137,303 205,649 3,501,314 296,190 2,273 14,571 7,133 1,357 22,732 17,192 28,331
Corporate Bonds 380,406 45,727 70,300 2,926,388 386,050 - 44,755 - - 21,493 - 6,436
Infrastructure Bonds 175,213 32,185 52,149 2,269,315 196,985 10,222 56,688 2,078 - 21,278 4,336 6,377
Equity 162,344 12,728 - 7,009,233 3,285,684 40,252 122,849 1,251 131 11,257 1,674
Money Market 176,405 12,170 32,631 1,129,798 247,406 2,223 10,775 660 94 31,789 5,638 9,839
Mutual Funds - - - - - - - - - - - -
Deposit with Bank 24,000 1,000 1,000 441,500 70,000 - - - - - - -
Total 1,455,458 241,113 361,729 17,277,548 4,482,315 54,970 249,638 11,122 1,582 108,549 28,840 50,983
Other Investments
Corporate Bonds - 5,118 - 44,976 - - - 121 23 35 - 46
Infrastructure Bonds - - - - - - - - - - - -
Equity 51,901 2,572 - 1,846,335 849,090 8,082 23,462 187 23 2,471 216
Money Market - - - - - - - - - - - -
Mutual Funds 10,000 - - 240,000 100,000 - - - - - - -
Total 61,901 7,690 - 2,131,311 949,090 8,082 23,462 308 46 2,506 216 46
GRAND TOTAL 1,517,359 248,803 361,729 19,408,859 5,431,405 63,052 273,100 11,430 1,628 111,055 29,056 51,029
% of Approved Investments to Total 96 97 100 89 83 87 91 97 97 98 99 100
% of Other Investments to Total 4 3 - 11 17 13 9 3 3 2 1 0
SCHEDULE: F-2
Particulars Funds
Government Bonds 99,802 12,566 10,765 31,079 9,814 76 - - 4,935,237
Corporate Bonds 94,456 23,541 9,518 16,048 10,483 - - - 4,035,601
Infrastructure Bonds 95,538 65,105 4,419 6,517 1,121 - - - 2,999,526
Equity 217,493 310,731 4,940 - 10,541 - - - 11,191,108
Money Market 102,753 29,396 5,545 5,953 6,065 - - - 1,809,140
Mutual Funds - - - - - - - - -
Deposit with Bank 12,500 - - - - - - - 550,000
Total 622,542 441,339 35,187 59,597 38,024 76 - - 25,520,612
Other Investments
Corporate Bonds - - - 89 - - - - 50,408
Infrastructure Bonds - - - - - - - - -
Equity 56,068 69,082 800 - 2,409 - - - 2,912,698
Money Market - - - - - - - - -
Mutual Funds - 10,000 - - - - - - 360,000
Total 56,068 79,082 800 89 2,409 - - - 3,323,106
GRAND TOTAL 678,610 520,421 35,987 59,686 40,433 76 - - 28,843,718
% of Approved Investments to Total 92 85 98 100 94 100 - - 88

% of Other Investments to Total 8 15 2 0 6 - - - 12
3 MNYL 1.p65 209 8/19/2009, 12:31 PM


SCHEDULE: F-2
Particulars Funds
Government Bonds 208,590 85,925 78,537 389,131 9,906 3,962 - 4,783 717 12,338 4,604 5,751
Corporate Bonds 158,751 8,927 20,463 812,251 94,421 1,000 - - - 4,016 1,000 1,000
Infrastructure Bonds 110,849 13,938 20,071 1,390,563 155,308 5,829 - - - 8,981 1,016 2,982
Equity 206,115 12,557 - 5,322,055 1,492,344 6,827 - 910 44 6,179 466 -
Money Market 89,641 9,964 4,372 1,992,279 94,875 1,374 - 989 - 4,782 - 492
Mutual Funds - - - - - - - - - - - -
Total 773,946 131,311 123,443 9,906,279 1,846,854 18,992 - 6,682 761 36,296 7,086 10,225
Other Investments
Corporate Bonds 76,598 14,617 16,848 1,337,214 - - - 111 21 32 - 42
Infrastructure Bonds - - - - - - - - - - - -
Equity 59,576 3,515 - 1,584,423 436,916 1,671 - 238 14 1,746 98 -
Money Market - - - - - - - - - - - -
Mutual Funds - - - - 60,059 - - - - - - -
Total 136,174 18,132 16,848 2,921,637 496,975 1,671 - 349 35 1,778 98 42
GRAND TOTAL 910,120 149,443 140,291 12,827,916 2,343,829 20,663 - 7,031 796 38,074 7,184 10,267
% of Approved Investments to Total 85 88 88 77 79 92 - 95 96 95 99 100
% of Other Investments to Total 15 12 12 23 21 8 - 5 4 5 1 0
SCHEDULE: F-2
Particulars Funds
Government Bonds 34,942 1,798 15,772 1,827 8,498 49 - - 867,130
Corporate Bonds 50,466 12,911 4,985 500 4,013 - - - 1,174,704
Infrastructure Bonds 77,049 18,641 4,230 - 4,038 - - - 1,813,495
Equity 215,487 127,745 8,472 - 9,218 - - - 7,408,419
Money Market 52,491 12,922 393 495 3,496 - - - 2,268,565
Mutual Funds - - - - - - - - -
Total 430,435 174,017 33,852 2,822 29,263 49 - - 13,532,313
Other Investments
Corporate Bonds 12,976 4,021 7,983 83 973 - - - 1,471,519
Infrastructure Bonds - - - - - - - - -
Equity 66,169 35,824 2,300 - 2,433 - - - 2,194,923
Money Market - - - - - - - - -
Mutual Funds 9,731 - - - - - - - 69,790
Total 88,876 39,845 10,283 83 3,406 - - - 3,736,232
GRAND TOTAL 519,311 213,862 44,135 2,905 32,669 49 - - 17,268,545
% of Approved Investments to Total 83 81 77 97 90 100 - - 78
% of Other Investments to Total 17 19 23 3 10 - - - 22
3 MNYL 1.p65 210 8/19/2009, 12:31 PM


Schedule: F-3
CURRENT ASSETS
AS AT MARCH 31, 2009
Funds
Particulars Balanced Conservative Debt Growth Growth High Dynamic Guaranteed Guaranteed Pension Pension Pension
Fund Dynamic Income
Accrued Interest 33,750 5,474 7,292 283,899 26,926 491 3,949 254 36 2,165 734 1,053
Bank Balance 82,390 8,099 29,578 823,278 180,501 8,685 8,390 1,058 189 5,953 792 2,250
Dividend Recievable - - - - 9 - - - - - - -
Receivable for Sale of Investments 11,962 43,124 10,281 46,744 8,588 3,521 6,194 33 2 1,027 1 -
Unit Collection A/c# - - - - - - - - - - -
Other Current Assets (for Investments) - - - - - - - - - - - -
Total 128,102 56,697 47,151 1,153,921 216,024 12,697 18,533 1,345 227 9,145 1,527 3,303
# Represents inter fund receivables or payables, if any
Schedule: F-3
CURRENT ASSETS
Funds
Particulars Pension Pension Growth Growth Group Group Group Group Total
Accrued Interest 9,833 3,363 832 2,054 771 2 - - 382,878

Bank Balance 19,400 19,334 269 50,764 (705) 349 4,382 175 1,245,131
Dividend Recievable - - - - - - - - 9
Receivable for Sale of Investments 4,401 6,044 1,619 - 1,274 - - - 144,815
Unit Collection A/c# - - - - - - - - -
Other Current Assets (for Investments) - - - - - - - - -
Total 33,634 28,741 2,720 52,818 1,340 351 4,382 175 1,772,833

Funds
Fund Dynamic Income
Accrued Interest 19,915 3,143 3,986 142,863 9,132 79 - 130 24 748 223 260
Cash &Bank Balance 48,321 15,486 9,873 1,221,127 245,723 30,005 - 690 131 2,921 127 2,554
Dividend Receivable 8 - - 214 127 - - - - - - -
Receivable for Sale of Investments - - - 28,269 3,942 - - - - - - -
Unit Collection A/c# - - - - - - - - - - - -
Other Current Assets (for Investments) - - - - - - - - - - - -
Total 68,244 18,629 13,859 1,392,473 258,924 30,084 - 820 155 3,669 350 2,814
CURRENT ASSETS
Funds
Accrued Interest 6,579 984 1,240 83 417 - - - 189,806
Cash &Bank Balance 18,662 32,590 5,187 2 242 - - - 1,633,641
Dividend Receivable - 5 - - - - - - 354
Receivable for Sale of Investments - - - - - - - - 32,211
Unit Collection A/c# - - - - - - - - -
Other Current Assets (for Investments) - - - - - - - - -
- - - - - - - - -
Total 25,241 33,579 6,427 85 659 - - - 1,856,012
3 MNYL 1.p65 211 8/19/2009, 12:31 PM


SCHEDULE: F-4
CURRENT LIABILITIES
Funds
Fund Dynamic Income
Payable for Purchase of Investments 8,588 42,010 10,196 120,378 45,974 8,690 - 292 23 1,776 - -
Other Current Liabilities (for Investments) 1 1 1 68 1 - - - - - - -
Unit Payable A/c# - - - - - - - - - - - -
Total 8,589 42,011 10,197 120,446 45,975 8,690 - 292 23 1,776 - -

Funds
Payable for Purchase of Investments 6,146 21,287 1,563 - 708 - - - 267,631
Other Current Liabilities (for Investments) 1 - - - - - - - 73
Unit Payable A/c# - - - - - - - - -
Total 6,147 21,287 1,563 - 708 - - - 267,704

Funds
Fund Dynamic Income
Payable for Purchase of Investments 17,813 5,660 8,156 396,855 59,100 12,479 - 102 - 2,005 1,020 1,020
Other Current Liabilities (for Investments) 848 114 106 13,360 2,533 5 - 10 1 33 5 6
Unit Payable A/c# - - - - - - - - - - - -
Total 18,661 5,774 8,262 410,215 61,633 12,484 - 112 1 2,038 1,025 1,026

Funds
Payable for Purchase of Investments 4,218 4,986 5,029 - - - - - 518,443

Other Current Liabilities (for Investments) 542 225 33 2 27 - - - 17,850
Unit Payable A/c# - - - - - - - - -
Total 4,760 5,211 5,062 2 27 - - - 536,293
3 MNYL 1.p65 212 8/19/2009, 12:31 PM


SCHEDULE: F-5
OTHER EXPENSES*
Funds
Fund Dynamic Income
Policy Administration charge - - - - - - - - - - - -
Surrender charge - - - - - - - - - - - -
Switching charge - - - - - - - - - - - -
Mortality charge - - - - - - - - - - - -
Rider Premium charge - - - - - - - - - - - -
Partial withdrawal charge - - - - - - - - - - - -
Miscellaneous charge - - - - - - - - - - - -
Total - - - - - - - - - - - -

Funds
Policy Administration charge - - - - - - - - -

Surrender charge - - - - - - - - -
Switching charge - - - - - - - - -
Mortality charge - - - - - - - - -
Rider Premium charge - - - - - - - - -
Partial withdrawal charge - - - - - - - - -
Miscellaneous charge - - - - - - - - -
Total - - - - - - - - -
OTHER EXPENSES*
Funds
Fund Dynamic Income
Policy Administration charge - - - - - - - - - - - -
Surrender charge - - - - - - - - - - -
Switching charge - - - - - - - - - - - -
Mortality charge - - - - - - - - - - - -
Rider Premium charge - - - - - - - - - - - -
Partial withdrawal charge - - - - - - - - - - - -
Miscellaneous charge - - - - - - - - - - - -
Total - - - - - - - - - - - -
*Any expense which is 1% of the total expenses incurred should be disclosed as a separate line item.
SCHEDULE: F-5
OTHER EXPENSES*
Funds
Policy Administration charge - - - - - - - - -

Surrender charge - - - - - - - - -
Switching charge - - - - - - - - -
Mortality charge - - - - - - - - -
Rider Premium charge - - - - - - - - -
Partial withdrawal charge - - - - - - - - -
Miscellaneous charge - - - - - - - - -
Total - - - - - - - - -
3 MNYL 1.p65 213 8/19/2009, 12:31 PM

Schedules Annexed to and forming part of financial statements for the year ended March 31, 2009
(All Amounts in Thousands of Indian Rupees, unless otherwise stated)
SCHEDULE-16
SIGNIFICANT ACCOUNTING POLICIES AND NOTES TO ACCOUNTS
BACKGROUND
Max New York Life Insurance Company Limited (‘the Insurer’) was incorporated on July 11, 2000 as a public limited company under the
Companies Act,1956 to undertake and carry on the business of life insurance and annuity. The Insurer has obtained a license from the
Insurance Regulatory and Development Authority (‘IRDA’) dated November 15, 2000 for carrying on life insurance business.
The insurer offers for individual and group, a range of participating, non participating and linked products covering life insurance,
pension and health benefits including riders.
These products are distributed by individual agents, corporate agents, banks, brokers and other intermediaries.
I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of preparation
The financial statements are prepared under the historical cost convention on the accrual basis of accounting, in accordance with
the accounting principles and framework prescribed by the Insurance Regulatory and Development Authority (Preparation of
Financial Statements and Auditor’s Report of Insurance Companies) Regulations, 2002, the accounting standards issued by The
Institute of Chartered Accountants of India (ICAI) and the requirements of the Insurance Act 1938, Insurance Regulatory and
Development Authority Act, 1999, and various circulars issued there under and the Companies Act, 1956, to the extent applicable
and the practices prevailing within the insurance industry in India.
Use of estimates
The preparation of the financial statements in conformity with the generally accepted accounting principles requires that the
management makes estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent
liabilities as at the date of the financial statements, and the reported amounts of revenue and expenses during the year. Actual
results could differ from those estimates. Any revision to accounting estimates is recognised prospectively in the current and future
periods.
(a) Revenue Recognition

Premium Income
Premium is recognized as income when due. Premium on lapsed policies is recognised as income when such policies are
reinstated.
For linked business, premium income is recognised when the associated units are allotted. Top-up premiums (i.e. premium
paid in excess of annual target premium as per policy contract) are recognised as single premium.
Income from linked fund

Fees on linked policies including fund management charges, policy administration charges, mortality charges, etc., are recovered
from the linked fund and recognised in accordance with the terms and conditions of the policies.
Income earned on investments and loans

Interest on investments and policy loan is recognised on accrual basis and taken to the Revenue and Profit and Loss Account,
as appropriate. Dividend income is recognised when the right to receive is established.
Realised gains/loss on debt securities for other than linked business is the difference between the sale consideration and the
amortised cost, which is computed on weighted average basis, as on the date of sale. Sale consideration for the purpose of
realised gain/loss is net of brokerage and taxes, if any and excludes interest accrued till transaction settlement date. In case
of listed equity shares /mutual fund units, the profit/loss on actual sale of investment includes the accumulated changes in
the fair value, previously recognised under “Fair Value Change Account”, revenue/profit and loss account, as applicable.
Unrealised gains due to changes in fair value of listed equity shares and mutual fund units are credited to the ‘Fair Value
Change Account’. Unrealised losses due to changes in fair value of listed equity shares are debited to the revenue and profit
3 MNYL 1.p65 214 8/19/2009, 12:31 PM

and loss account as applicable.

For linked business realised gain/loss on securities is the difference between the sale consideration and the book value, which
is computed on weighted average basis, as on the date of sale. Sale consideration for the purpose of realised gain/loss is net
of brokerage and taxes, if any and excludes interest accrued till transaction settlement date. Unrealised gains and losses are
recognised in the respective fund’s revenue account.
(b) Reinsurance premium

Cost of reinsurance ceded is accounted for at the time of recognition of premium income in accordance with the treaty or in-
principle arrangement with the reinsurer.
(c) Acquisition Costs

Acquisition costs are expenses incurred to solicit and underwrite insurance contracts such as commission, medical fee etc.
and are expensed in the year in which they are incurred.
(d) Benefits Paid

Benefits paid consist of the policy benefit amount and claim settlement costs, if any. Maturity claims are accounted when
due for payment. Surrender, death and other claims are recognised for, when intimated. An additional provision is made, on
the basis of actuarial estimate, for the benefits which are incurred but not reported. Repudiated claims disputed before
judicial authorities are provided for based on management prudence considering the facts and evidences available in respect
of such claims. Reinsurance recoverable , where applicable, are accounted in the same period. Withdrawals under linked
policies are accounted in respective schemes along with cancellation of associated units.
(e) Investments
Investments are made in accordance with the Insurance Act, 1938 and the Insurance Regulatory & Development Authority
(Investment) Regulations, 2008. Investments are recorded at cost on date of purchase, which includes brokerage and statutory
levies, if any and excludes interest paid, if any, on purchase. Diminution in the value of investment, other than temporary
decline, is charged to revenue and profit and loss account as applicable.
Classification
Investments intended to be held for a period less than twelve months or maturing within twelve months from the balance
sheet date are classified as short term investments. All other investments are classified as long-term investments.
Valuation - shareholders’ investments and non-linked policyholders’ investments

Debt securities, which include government securities, are considered as ‘held to maturity’ and measured at historical cost. The
premium/discount, if any, on purchase of debt securities is recognised and amortised in the revenue account and profit and
loss account, as the case may be, over the remaining period to maturity on the basis of their intrinsic yield.
Debt securities with a residual maturity upto 182 days are valued at amortised cost (till the beginning of the day), spread
uniformly over the remaining maturity period of the instrument.
Policy loans are valued at historical cost net of repayments, capitalised interest and are subject to impairment, if any. Listed
equity shares, as at balance sheet date, are valued at fair value, being the last quoted closing price on the National Stock
Exchange (NSE) and in case the same is not available, then on the Bombay Stock Exchange (BSE) Ltd. Unlisted Equity shares
are valued at historical cost subject to provision for diminution. Investments in Mutual fund units are valued at net asset
value of the respective funds as at balance sheet date.
Valuation - linked investments

Government securities are valued at the prices obtained from CRISIL (Credit Rating Information Services of India Limited).
Debt securities other than Government Securities are valued on the basis of Bond Valuer (CRISIL). Listed equity shares are
valued at fair value, being the last quoted closing price on NSE and in case the same is not available, then on the BSE. Mutual
3 MNYL 1.p65 215 8/19/2009, 12:31 PM

fund units are taken at the previous day’s net asset values.
Debt securities with a residual maturity upto 182 days are valued at amortised cost (till the beginning of the day), spread
uniformly over the remaining maturity period of the instrument.
Transfer of Investments
Investments in debt securities are transferred from shareholders to policyholders at net amortised cost.
Investments other than debt securities are transferred from shareholders to policyholders at lower of book value or market
value.
Transfer of investments between unit linked funds are effected at market price as at previous day closing.
(f) Fixed Assets, Depreciation and Impairment

Fixed Assets are stated at cost less accumulated depreciation. Cost includes acquisition, installation and other incidental
expenses, including freight and taxes incurred to bring the asset to its present location and working condition for its intended
use. Any additions to the original fixed assets are depreciated over the remaining useful life of the original asset. Intangible
assets comprising software are stated at cost less amortisation.
All significant improvements to software are capitalised while the insignificant improvements are charged as software
maintenance expenses. Assets individually costing upto rupees five thousand and not as part of composite contract are fully
depreciated in the year of acquisition.
Fixed assets at third party locations and not under direct physical control of the Insurer are fully depreciated in the year of
purchase.
Depreciation on assets is charged on straight-line method at the following rates over their economic useful lives as estimated
by the Management.
Depreciation is provided for the full month in the month of acquisition of the related asset. No depreciation is provided in the
month of sale/disposal of asset.
Assets Estimated Useful life

Software (excluding Policy Administration System and Satellite systems) 4 years
Policy Administration & Satellite systems (hardware and software) 6 years
Leasehold Improvements Renewable period of respective leases
subject to a maximum of 10 years
Furniture and Fixtures 10 years
Information Technology equipment, communication networks and servers 4 years
Vehicles 5 years
Office Equipment 5 years
Hand Held Data Devices 1 year
Impairment
Management periodically assesses, using external and internal sources, whether there is an indication that an asset may be
impaired. Impairment occurs where the carrying value exceeds the present value of future cash flows expected to arise from
the continuing use of the asset and its eventual disposal. The impairment loss to be expensed is determined as the excess of
the carrying amount over the higher of the asset’s net sales price or present value, as determined above.
(g) Liability for Life Policies

The estimated liability for life policies in force is determined by the Insurer’s appointed actuary, pursuant to his annual
investigation of life insurance business, using appropriate methods and assumptions that conform with regulations issued by
the IRDA and Guidance notes issued by the Institute of Actuaries of India. The liability is so calculated that together with
future premium payments and investment income, the Insurer meets all future claims (including bonus entitlements to
policyholders, if applicable,) and expenses.
3 MNYL 1.p65 216 8/19/2009, 12:31 PM

Liabilities, if any, as determined by appointed actuary, in respect of Linked policies which have lapsed are maintained by
appropriation from the Revenue account till the expiry of the revival period and shown under funds for future appropriation.
Liabilities under linked policies comprise of fund value and non unit liability for meeting mortality and morbidity risk, which
is based on actuarial valuation done by appointed actuary.
(h) Employees’ Benefits

Employees’ Benefits have been recognised in accordance with the relevant provisions of the Accounting Standard 15 (revised
2005).
All short term employee benefits are accounted on undiscounted basis during the accounting period and charged to the
revenue account and profit and loss account, as applicable based on services rendered by employees.
Deferred compensation, which is a long term employee benefit is provided for based on the independent actuarial valuation
carried out as at the balance sheet date and charged to the revenue account and profit and loss account, as applicable.
Charge for non-vesting compensating leaves is calculated considering past experience, attrition rate and discount rate for
determining the liability as at the balance sheet date.
Insurer’s contributions towards Provident Fund, a defined contribution plan, which is administered through a trust, is at the
rate as specified under the trust deed and charged to the revenue account and profit and loss account, as applicable.
Gratuity, is administered through a trust. The trust has taken a group policy from the Insurer to cover the liability towards
gratuity.
Insurer’s liability towards gratuity, a defined benefit plan, is accounted on the basis of independent actuarial valuation
carried out as at the balance sheet date and charged to the revenue account and profit and loss account, as applicable.
(i) Employee Stock Options Plans

The value of options is equal to the aggregate of the intrinsic value of the options granted. Intrinsic value is the option
discount represented by excess of market price, which is determined by the independent valuer, over the exercise price. The
intrinsic value of the options is amortised on a straight line basis over the vesting period. As and when the options are
exercised, the same are accounted for as paid up capital to the extent of the face value.
Options that lapse are reversed by a credit to employee compensation expense equal to the amortised portion of the value of
(j) Foreign Exchange Transactions

Transactions in foreign currency are recorded at the rates of exchange prevailing on the date of transaction. Monetary assets
and liabilities denominated in foreign currencies are translated at year end rates. The difference in translation of monetary
assets and liabilities and realised gains and losses on foreign exchange transactions, are recognised in the revenue account
and profit and loss account, as applicable.
(k) Segmental Reporting

The Insurer’s business is organised on a national basis and having following segments : Individual Life Participating business,
Participating Pension business, Individual Life Non-participating business , Group business, Health, Linked Individual, Linked
Pension, Linked Group and Shareholders’ Funds. Non-participating businesses include policies with committed cash flows,
with no rights to the surplus in the business. Participating business include policies other than those of non-participating
businesses. Investment of shareholder funds constitute investible funds relating to shareholders. Accordingly, the Insurer has
provided primary segment information for these segments as per the Accounting Standard 17 on ‘ Segment Reporting’, issued
by the ICAI, read with the relevant IRDA Regulations.
Allocation of assets, liabilities, revenues and expenses

Assets, liabilities, revenues and expenses directly identifiable to the business segments are allocated on an actual basis.
Assets, liabilities, revenues and expenses, which are not directly identifiable, are apportioned to the business segment by
adopting one or more of the following basis, which is considered as most appropriate :
3 MNYL 1.p65 217 8/19/2009, 12:31 PM

- total number of policies in-force

- annualised first year premium ,
- subsequent year premium ,
- total premium ,
- weighted combination of sum assured, first year premium, renewal premium income and total number of policies in force,
- sum assured and
- first year commission.
(l) Contribution to Policyholders’ Account (Technical Account)

Contribution to Policyholders’ Account (Technical Account) is made as decided by the Board of Directors and approved by the
Shareholders.
(m) Taxation
Provision for current income tax, wealth tax and fringe benefit tax , if any, is made on accrual basis after considering relevant
credit allowances, exemptions and valuation rules as determined under the Income Tax Act, 1961. The difference that results
between the taxable profit and the profit as per financial statements are identified and thereafter deferred tax assets or
deferred tax liabilities are recorded as timing differences that originate in one accounting period and reverse in another,
based on the tax effect of aggregate amount. The tax effect is calculated on the accumulated timing differences at the end
of an accounting period based on prevailing enacted regulations.
In case of unabsorbed depreciation or carried forward loss deferred tax assets are recognised only if there is virtual certainty
of realisation of such assets.
Deferred tax assets are revalued at each balance sheet date and written up / down to reflect the amount that is reasonably/
virtually certain (as the case may be) to be realised.
Service tax liability on risk premium is set off against the service tax credits available from service tax paid on input services.
Unutilised credit are carried forward for future set off in subsequent periods. Relevant provision is created, if required, based
on estimated realisation of the unutilised credit.
(n) Operating Lease

Lease of assets under which all the risks and benefits of ownership are effectively retained by the lessor is classified as
operating leases. Operating lease rentals including escalations are recognised in the revenue account and profit and loss
account, as the case may be, on a straight line basis over the period of the lease.
(o) Loans
Loans are stated at historical cost, subject to provision for impairment, if any.
(p) Provisions and Contingencies

The insurer creates a provision for litigation, assessment, fines, penalties, claims (other than insurance claims), etc when there
is present obligation as a result of a past event that would probably result in an outflow of resources and a reliable estimate
can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation
or a present obligation that may, but probably will not, require an outflow of resources. However, contingent assets are not
recongnised on prudent basis.
(q) 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.
3 MNYL 1.p65 218 8/19/2009, 12:31 PM

II NOTES TO ACCOUNTS
(a) Contingent Liability

March 31, 2009 March 31, 2008
Partly paid-up investment - -
Underwriting commitments outstanding (in respect of shares and securities) - -
Claims, other than against policies, not acknowledged as debts by the Insurer 14,254 15,681
Guarantees given by or on behalf of the Insurer - -
Statutory demands/ liabilities in dispute, not provided for 389,844 -
Reinsurance obligations to the extent not provided for in accounts - -
Others * 28,315 6,131
Total 432,413 21,812
* Represents potential liability in respect of repudiated Policyholders claims
(b) Actuarial assumptions

The Insurer’s Appointed Actuary has determined valuation assumptions that conform with Regulations issued by the IRDA
and professional guidance notes issued by the Institute of Actuaries of India. Details of assumptions are given below:
Interest:
It is based upon the current and projected yields on the fund and the current and projected yields on G-sec.
A valuation rate of interest of 7.5% (2008: 7.5%) for participating business, non-participating, health business and riders has
been used. The valuation rate of interest rate was reduced by margins for adverse deviations of 0.75% (2008: 0.75%) for
participating business and 1.75% (2008: 1.75%) for non-participating business. Gross unit growth rate of 7.5% pa (2008:
7.5% pa) has been used which was further reduced by a margin of adverse deviation of 1.25% (2008: 1.25%) per annum.
Mortality:
It is based on experience (where credible) and on assumptions used in the previous annual valuation (to avoid arbitrary
discontinuities). The assumptions are based on the base table IALM (94-96). For participating Life products 75% of the base
table is used in year 1 and beyond year 1 70% is used. In general, the assumptions in the initial years have been increased to
reflect anti-selection and those in the later years have been lightened in line with experience.
The assumptions have been increased by a margin for adverse deviation of 10% (2008: 10%) for participating business and
25% (2008:25%) for non-participating, unit linked and health business.
Morbidity:
The IAI has recommended the CIBT93 study of UK for morbidity incident rates, due to lack of any published Indian experience.
Proportions of 95% to 300% (2008: 95% to 300%) of these tables have been used which were further increased by a margin
for adverse deviation of 25% (2008: 25%).
Expenses:
The maintenance expenses per policy are based on expenses projected for the calendar year 2009.
These were further increased by margins for adverse deviation of 10% (2008: 5%) for participating policies and 10% (2008:
10%) for non-participating and health policies.
Inflation:
An assumption of 6% pa (2008: 6% pa) for expense inflation has been used.
3 MNYL 1.p65 219 8/19/2009, 12:31 PM

Commission :
It is based on the actual commission rates paid. There has been no change in these assumptions from those used last year.
Lapses:
The lapse rates are based on experience (where credible). In general the lapses have been lightened compared to the assumptions
used last year. The rates were further reduced by margins for adverse deviation of 20% (2008: 20%) for participating policies
50% (2008: 50%) for non-participating policies and 20% (2008: 20%) for health plans.
Future bonuses:
Provision is made for future bonuses based on estimated expected bonus payouts consistent with the valuation assumptions
and policyholders’ reasonable expectations
(c) Restructured Assets
The total of loan assets, standard assets, sub-standard assets and doubtful assets which are subject to restructuring is Rs Nil
(2008:Rs. Nil).
(d) Encumbrances
The assets of the Insurer are free from all encumbrances.
(e) Commitments
Estimated amount of contracts remaining to be executed on fixed assets (net of advances) is Rs 140,294 (2008 Rs 147,116)
Commitments made and outstanding for investments and loans is Rs Nil (2008 Rs Nil)
(f) Taxation
The Insurer carries the business of Life Insurance, therefore the provisions of section 44 and the first schedule of Income tax
Act 1961, are applicable for computation of profit and gains of business. In the opinion of the management, provision for
income tax is not required as Insurer does not have any taxable income during the current financial year.
As per Accounting Standard 22 on “Accounting for taxes on income” issued by ICAI, virtual certainty supported by conclusive
evidence is necessary to create deferred tax asset on unabsorbed losses. Life Insurance is a long gestation business and hence,
deferred tax asset on unabsorbed carried forward losses has not been created.
(g) Investments
The investments are effected from the respective funds of the policyholders and shareholders and income thereon has been
accounted accordingly.
All the investments are performing in nature.
The Insurer does not have any investment property.
There are no assets require to be deposited by the insurer under any local laws or otherwise encumbered in or outside India
other than investments under Section 7 of the Insurance Act 1938 as below:
Statutory Deposit Details As At As At

March 31, 2009 March 31, 2008
10.18% Government of India Security 2026 (Face value Rs. 100,000)
in lieu of deposit with Reserve Bank of India* 106,605 106,761
Total 106,605 106,761
* This is in the constituent subsidiary general ledger account maintained with HSBC Bank, Mumbai, India under intimation to IRDA.
(h) Value of unsettled contracts relating to investments

Value of contracts in relation to investments, for:
(a) Purchases where deliveries are pending- Rs 735,465 (2008 Rs Nil)
(b) Sales where payments are overdue- Rs Nil (2008 Rs Nil)
3 MNYL 1.p65 220 8/19/2009, 12:31 PM

(i) Managerial Remuneration

Managerial remuneration details are as below:
Particulars 2008-09 2007-08
Salary & Allowances 81,886 40,391
Contribution to Provident Fund 965 459
Value of Perquisites 10,009 11,737
Total 92,860 52,587
Note :
(i) The above figures do not include provision for employee benefits, which are actuarially determined for the Insurer as a whole.
(ii) The above remuneration is in accordance with the requirements of Section 34A of the Insurance Act, 1938 and as
approved by IRDA.
(iii) All Perquisites have been computed in accordance with Income Tax Act, 1961.
(j) Employee Stock Option Plans (ESOP)

a) Employee Stock Option Plan 2004
The ESOP 2004 plan was approved by the board in its meeting held on 28th September, 2004 and is proposed to be
implemented by the management adopting the Trust route. Under the plan 5,900,000 options were granted at an
exercise price of Re. 1/- per 1,000 equity shares of the Insurer. The options were granted with effect from July 1, 2004
and are to vest on July 1, 2009. The employees covered under the plan can exercise the options only if they are in service
with the Insurer as on the vesting date. Under the plan, 4,975,000 shares were outstanding at the beginning of the year
out of which 175,000 got lapsed due to attrition during the year. Cost of options under the plan is accounted using the
Intrinsic Value method. During the year Rs 17,028 (2008 : Rs 7,081) has been accrued as ESOP cost in the revenue and
profit and loss account as applicable.
b) Employee Stock Option Plan 2006

The ESOP 2006 plan was approved by the board on 9th March 2007. Under this plan, 2,500,000 options in aggregate
were granted to certain employees at an exercise price of Rs. 10 per share. The options were granted with effect from
July 1, 2006 and 75% of the options are to vest on July 1, 2009 and balance 25% on July 1, 2010 if the employee is in
service with the Insurer as on the vesting date. Under the plan, 2,500,000 shares were outstanding at the beginning of
the year out of which 250,000 got lapsed due to attrition during the year. Cost of options under the plan is accounted
using Intrinsic Value method. During the year Rs 194 (2008 : Rs NIL) has been accrued as ESOP cost in the revenue and
profit and loss account as applicable.
A summary of status of Insurer’s Employee Stock Option Plans is as given below:

Particulars As At As At
March 31, 2009 March 31, 2008
(No.) in’000 (No.) in’000
Outstanding at the beginning of the year 7,475 8,000
Add: granted during the year - -
Less: Forfeited/lapsed during the year 425 525
Exercised during the year - -
Outstanding at the end of the year 7,050 7,475
Had the company used the fair value of the options to values its Employee Stock Option Plans the loss in profit and loss
account (Shareholders’ Account) would have been higher by Rs 9,098 (2008: Rs Nil) and basic and dilutive loss per share
would have been Rs 2.77 (2008: Rs Nil).
3 MNYL 1.p65 221 8/19/2009, 12:31 PM

(k) Percentage of Business sector-wise

Percentage of policies written business sector - wise is as below:
Particulars 2008-09
First year Premium
Policy Nos. Income* No of Lives covered
Total Business 1,207,062 18,437,115 442,785
Rural Sector 301,774 3,420,285
As % of Total Business 25.00% 18.55%
Social Sector 4,153 58,391
* excluding premium due & unpaid Rs. -8,031
Particulars 2007-08
First year Premium
Policy Nos. Income** No of Lives covered
Total Business 873,613 15,942,079 1,362,834
Rural Sector 189,088 2,015,941
Social Sector 15,228 82,037
** excluding premium due & unpaid Rs. 36,171
(l) Percentage of risk-retained and risk-reinsured

The extent of risk retained and reinsured is given below :
Particulars Premium Sum Assured
2008-09 2007-08 2008-09 2007-08
Individual Business :
Risk retained 99.25% 99.37% 80.28% 80.62%
Risk reinsured 0.75% 0.63% 19.72% 19.38%
Group Business :
Risk retained 84.25% 89.27% 55.96% 45.87%
Risk reinsured 15.75% 10.73% 44.04% 54.13%
(m) Operating lease commitments

The Insurer has leased office premises under various agreements with various expiration dates extending upto 10 years. Lease
payments made under operating lease agreements have been fully recognised in the books of accounts.
The lease rental charged under non cancelable operating leases during the current period and maximum obligation on such
leases payable at the balance sheet date are as follows :
2009 2008
Lease rentals for non-cancelable leases paid during the year 203,471 33,282
Lease obligations for non-cancelable lease
Within one year of the balance sheet date 234,432 36,552
Due in a period between one year and five years 299,913 38,690
Due after five years - -
3 MNYL 1.p65 222 8/19/2009, 12:31 PM

(n) Claims outstanding

Claims, which are settled and unpaid for more than 6 months as on Balance Sheet date amount to Rs Nil (2008-Rs Nil)
(o) The Insurer has entered into an agreement called “The Brand License and Technical Services Agreement (Brand Agreement)”
with New York Life Insurance Company and New York Life International, LLC for a duration of five years. The agreement states
total consideration of Rs. 3,697,263 for grant of license and provision of technical services to MNYL over the tenure of the
agreement.
During the current year, the Insurer has recognised expense of Rs. 508,469 in Profit and Loss Account (Non-Technical Account),
considering amortization of the total consideration on straight line basis over the tenure of the agreement.
(p) During the year the Insurer has received an innovation grant of Rs 10,000 (2008: Rs Nil) from International Labour Organisation
(ILO) for the development of its ‘Max Vijay products’, which caters to low income class people. The grant amount has been
entirely utilised and reduced from the gross expenditures under the following heads in the Revenue Account (Technical
Account) and Profit and Loss Account (Non- Technical Account) as applicable :
a) Employees remuneration and welfare benefits
b) Legal, professional and consultancy charges
c) Advertisement and publicity
(q) Contributions from Shareholders’ Fund to Non Participating Policyholders’ Funds
The Insurer has transferred amount aggregating to Rs 3,715,802 (2008: Rs 1,791,306) from the Shareholder’s Account (Non-
technical) to the non participating business segments, in Policyholder’s Account (Technical), to fund the deficits in respective
segments.
(r) Policyholders’ Bonus
The Bonus to participating policyholders, for current year as recommended by Appointed Actuary has been included in
Change in valuation against policies in force.
(s) Policy Liabilities
The movement of policy liabilities (forming part of Policyholders funds) is as follows :
Particulars Participating Policies Non-Participating Policies Linked Policies Total
Individual Life Pension Individual Life Health Group Individual Linked Linked Pension Linked Group
At start of Year 12,480,763 258,833 524,440 - 229,361 17,853,453 845,589 81,837 32,274,276
Add : Change in valuation
of liability against life
policies in force, Net 4,018,450 47,617 392,676 18,128 (26,309) 11,232,392 594,648 113,860 16,391,462
Add : Policyholder
Bonus provided 1,174,106 14,007 - - - - - - 1,188,113
At end of Year 17,673,319 320,457 917,116 18,128 203,052 29,085,845 1,440,237 195,697 49,853,851
(t) (i) Segmental Reporting

1. Business Segments
The Insurer’s business is organised on a national basis and having following segments : Individual Life Participating
business, Participating Pension business, Individual Life Non-participating business , Group business, Health, Linked
Individual, Linked Pension, Linked Group and Shareholders’ Funds. Non-participating businesses include policies with
committed cash flows, with no rights to the surplus in the business. Participating business include policies other than
those of non-participating businesses. Investment of shareholder funds constitute investible funds relating to shareholders.
Accordingly, the Insurer has provided primary segment information for these segments as per the Accounting Standard
17 on ‘ Segment Reporting’, issued by the ICAI, read with the relevant IRDA Regulations.
3 MNYL 1.p65 223 8/19/2009, 12:31 PM

2. Geographical Segments
Since the business operation of the Insurer is in India only, the same is considered as single geographical segment.
The segmental report for the year ended March 31, 2009 is given below :
Particulars Participating Policies Non-Participating Policies Linked Policies
Individual Pension Individual Health Group Individual Linked Linked Shareholders Total
Life Life Linked Pension Group Funds
SEGMENTAL SHAREHOLDERS’ / POLICYHOLDERS’ ACCOUNT

Revenue
Premium earned - net 10,768,469 85,463 327,120 218,409 144,897 25,200,122 1,271,215 174,642 - 38,190,337
Income from Investments 1,258,635 34,280 54,374 138 27,670 (3,364,300) (189,858) (4,141) 338,248 (1,844,954)
Other Income 2,960 5 643,646 310,385 5,756 2,475,444 196,455 90,613 301 3,725,565
Unallocated Revenue - - - - - - - - - -
Total Revenue (net) 12,030,064 119,748 1,025,140 528,932 178,323 24,311,266 1,277,812 261,114 338,549 40,070,948
Expenses
Commission 1,054,781 922 51,459 50,958 4,175 2,705,514 47,589 367 - 3,915,765
Operating Expenses including provision for doubtful
debts and bad debts written off 4,506,967 7,937 521,575 449,555 155,926 9,735,759 625,583 100,067 47,179 16,150,548
Provision for Tax - Fringe Benefit Tax 24,120 46 2,813 2,401 635 45,895 2,924 596 - 79,430
Benefits Paid (Net) 1,432,747 22,056 56,617 7,890 43,896 591,706 7,068 46,224 - 2,208,204
Interim Bonus - - - - - - - - - -
Change in valuation of liability against life policies in
force (Net) 5,192,556 61,624 392,676 18,128 (26,309) 11,232,392 594,648 113,860 - 17,579,575
Net Contribution to policyholders fund - - - - - - - - 3,715,802 3,715,802
Provisions (other than taxation) for diminution in the
value of investments( Net) - - - - - - - - 42,249 42,249
Total Expenses 12,211,171 92,585 1,025,140 528,932 178,323 24,311,266 1,277,812 261,114 3,805,230 43,691,573
SEGMENT OPERATING RESULTS (181,107) 27,163 - - - - - - (3,466,681) (3,620,625)
Transfer (to Shareholder) / from Policyholders (108,726) (1,393) - - - - - - 110,119 -
Unallocated other income - - - - - - - - - -
Shareholder expenses - - - - - - - - (573,594) (573,594)
Net Operating Profit/(Loss) (4,194,219)
SEGMENTAL BALANCE SHEET
Segment assets
Investments 17,926,968 458,868 925,169 21,096 322,095 29,086,226 1,449,182 195,697 5,229,050 55,614,351
Loan - - - - - - - - - -
Net Fixed Assets 986,411 1,901 115,033 98,216 26,250 1,876,992 119,567 24,363 - 3,248,733
Advances and Other Assets 1,357,684 7,662 131,056 102,871 69,074 2,495,384 148,643 28,115 52,746 4,393,235
Total Segment Assets 20,271,063 468,431 1,171,258 222,183 417,419 33,458,602 1,717,392 248,175 5,281,796 63,256,319
Debit Balance In Profit and Loss Account
(Shareholders’ Account) - - - - - - - - 10,027,545 10,027,545
Deficit In The Revenue Account
(Policyholders’ Account) - - - - - - - - - -
Unallocated Assets
Cash and Bank Balances - - - - - - - - - 246,596
Advances and Other Assets - - - - - - - - - 56,730
Total Assets 73,587,190
Segment Liabilities
Policy Liabilities 17,673,319 320,457 917,116 18,128 203,052 29,085,845 1,440,237 195,697 - 49,853,851
Current Liabilities 1,600,918 4,559 154,991 132,032 37,238 3,244,548 182,976 34,045 - 5,391,307
Fair Value Change Account - - - - - - - - 7,850 7,850
Total Segment Liabilities 19,274,237 325,016 1,072,107 150,160 240,290 32,330,393 1,623,213 229,742 7,850 55,253,008
Segment Reserves - - - - - - - - - -
Reserves and Surplus - - - - - - - - - -
Equity Capital - - - - - - - - - 17,824,326
Employee Share Based Payment Plan Outstanding - - - - - - - - - 79,941
Funds For Future Appropriations 55,269 114,190 - - - - - - - 169,460
Unallocated Liabilities
Current Liabilities - - - - - - - - - 258,914
Provisions - - - - - - - - - 26,958
Deferred Expenditure - - - - - - - - - (25,417)
Total Liabilities 73,587,190
3 MNYL 1.p65 224 8/19/2009, 12:31 PM


Other Information
Capital Expenditure during the year 708,778 1,365 82,656 70,571 18,673 1,348,695 85,913 17,506 - 2,334,157
Depreciation for the year 197,430 380 23,023 19,657 6,462 375,677 23,933 4,876 163 651,601
Non-cash expenditure other than depreciation
Liabilities to Policyholders 5,192,556 61,624 392,676 18,128 (26,309) 11,232,392 594,648 113,860 - 17,579,575
Unallocated preliminary expenses - - - - - - - - - -
The segmental report for the year ended March 31, 2008 is given below :
SEGMENTAL SHAREHOLDERS’ / POLICYHOLDERS’ ACCOUNT

Revenue
Premium earned - net 8,940,532 87,192 206,755 40,936 384,296 16,458,609 748,278 58,931 - 26,925,529
Income from Investments 826,072 18,113 39,760 - 16,344 1,323,552 11,530 5,705 216,638 2,457,714
Other Income 1,010 4 6,662 37,494 7,281 1,788,272 102,351 3,934 152,258 2,099,266
Unallocated Revenue - - - - - - - - - -
Total Revenue (net) 9,767,614 105,309 253,177 78,430 407,921 19,570,433 862,159 68,570 368,896 31,482,509
Expenses
Commission 1,049,238 1,015 32,080 11,808 2,360 2,712,410 35,686 10 - 3,844,607
Operating Expenses including provision
for doubtful debts and bad debts written off 3,048,774 6,222 38,164 66,205 193,462 5,235,381 218,832 8,513 35,387 8,850,940
Provision for Tax - Fringe Benefit Tax 17,471 43 7 417 1,348 26,175 1,372 58 - 46,891
Benefits Paid (Net) 1,056,961 20,009 43,297 - 37,498 198,933 269 3,112 - 1,360,079
Interim Bonus - - - - - - - - - -
Change in valuation of liability against
life policies in force (Net) 4,172,306 57,756 139,629 - 173,253 11,397,534 606,000 56,877 - 16,603,355
Net Contribution to policyholders fund - - - - - - - - 1,943,444 1,943,444
Provisions (other than taxation) for diminution
in the value of investments( Net) - - - - - - - - 5,138 5,138
Total Expenses 9,344,750 85,045 253,177 78,430 407,921 19,570,433 862,159 68,570 1,983,969 32,654,454
SEGMENT OPERATING RESULTS 422,864 20,264 - - - - - - (1,615,073) (1,171,945)
Transfer (to Shareholder) / from Policyholders (77,754) (1,369) - - - - - - 79,123 -
Unallocated other income - - - - - - - - - -
Shareholder expenses - - - - - - - - (33,367) (33,367)
Net Operating Profit/(Loss) (1,205,312)
SEGMENTAL BALANCE SHEET
Segment assets
Investments 12,910,192 372,346 583,670 504 322,592 17,899,295 852,146 81,837 4,167,294 37,189,876
Loan - - - - - - - - - -
Net Fixed Assets 587,122 1,427 236 14,021 45,575 879,621 46,104 1,961 2 1,576,069
Advances and Other Assets 998,793 7,305 22,193 16,907 86,640 1,496,292 74,754 4,119 49,254 2,756,257
Total Segment Assets 14,496,107 381,078 606,099 31,432 454,807 20,275,208 973,004 87,917 4,216,550 41,522,202
Debit Balance In Profit And Loss Account
(Shareholders’ Account) - - - - - - - - 6,097,389 6,097,389
Deficit In The Revenue Account
(Policyholders’ Account) - - - - - - - - - -
Unallocated Assets
Cash and Bank Balances - - - - - - - - - 193,707
Advances and Other Assets - - - - - - - - - 50,678
Segment Liabilities
Policy Liabilities 12,480,763 258,833 524,440 - 229,361 17,853,453 845,589 81,837 - 32,274,276
Current Liabilities 1,596,507 5,425 7,108 33,464 114,494 2,498,130 124,850 5,922 - 4,385,900
Fair Value Change Account - - - - - - - - 92,545 92,545
Total Segment Liabilities 14,077,270 264,258 531,548 33,464 343,855 20,351,583 970,439 87,759 92,545 36,752,721
Segment Reserves - - - - - - - - - -
Reserves and Surplus - - - - - - - - - 74,750
Equity Capital - - - - - - - - - 10,324,326
Unallocated Liabilities
Current Liabilities - - - - - - - - - 291,354
Provisions - - - - - - - - - 24,750
Funds For Future Appropriations - - - - - - - - - 433,523
Deferred Expenditure - - - - - - - - - (37,448)
Other Information
Capital Expenditure during the year 382,068 930 153 9,123 29,487 572,413 30,003 1,276 - 1,025,453
Depreciation for the year 128,055 312 50 3,061 9,882 191,853 10,055 428 192 343,888
Non-cash expenditure other than depreciation
Liabilities to Policyholders 4,172,306 57,756 139,629 - 173,253 11,397,534 606,000 56,877 - 16,603,355
Unallocated preliminary expenses -
3 MNYL 1.p65 225 8/19/2009, 12:31 PM

(u) The ratios as prescribed by IRDA are given below :

Ratios Year ended Year ended
March 31, 2009 March 31, 2008
(a) New Business Premium Income Growth (segment wise)
(Current Year New Business Premium as a % of Previous Year New Business Premium)
Individual Life - Participating 107.60% 113.17%
Pension - Participating 95.62% 266.89%
Individual Life - Non Participating 178.71% 164.62%
Health Insurance 531.62% 0.00%
Group 38.50% 1053.44%
Individual Linked 115.46% 195.00%
Linked Pension 142.39% 259.84%
Linked Group 291.30% 233.88%
(b) Net Retention Ratio 99.01% 99.19%
(Net premium as a % of gross premium)
(c) Ratio of Expenses of Management 52.11% 46.81%
(Expenses of Management as a % of Gross Premium)
(d) Commission Ratio 10.15% 14.16%
(Gross Commission as a % of Gross Premium)
(e) Ratio of Policy holders’ liabilities to shareholders’ funds 248.18% 314.13%
(Policyholders’ Liability as a % of Shareholders’ Fund)
(f) Growth rate of Shareholders’ Fund 80.39% 52.27%
(Increase/ (Decrease) in Shareholders’ Fund over previous year as
a % of Shareholders’ Funds of Previous year)
(g) Ratio of Policyholders’ Surplus to Policy holders’ liability 1.43% 3.24%
(Policyholders’ Surplus as a % of Policyholders’ Liability)
(Refer to Note II on Schedule 16)
(h) Change in net worth (over previous year) 80.39% 52.27%
(Increase/ (Decrease) in Net Worth over previous year as a % of Net Worth of Previous year)
(i) Profit after tax / Total Income (875.96)% (350.28)%
(Refer to Note II on Schedule 16)
(j) (Total Real Estate+Loans)/ Cash & Invested assets NA NA
(k) Total Investments/(Capital + Total Surplus) 314.69% 388.32%
(l) Total Affiliated Investments/(Capital + Total Surplus) NA NA
Notes for calculation of above Ratios
1) Expenses of Management include operating expenses and commission.
2) Shareholders funds = Share Capital (net of Preliminary Expenses to the extent not written off /adjusted) + Reserve and
Surplus/ Deficit in Profit and Loss Account (Non-Technical).
3) Policyholders’ surplus is the amount available for Appropriation, in Revenue Account (Technical).
4) Total Surplus = Insurance Reserves + Debit balance in Profit and Loss Account (Non-Technical) as appearing in Balance Sheet
+Deficit in the Revenue Account (Technical) as appearing in Balance Sheet+Funds for Future Appropriation.
5) Net Worth = Shareholders Funds + Insurance Reserves+Deficit in the Revenue Account (Technical) as appearing in Balance
Sheet.
6) Profit After Tax and total income are as disclosed in the Profit and Loss Account (Non-Technical ).
3 MNYL 1.p65 226 8/19/2009, 12:31 PM

(v) Related parties Disclosures

The details of significant related party transactions as per Accounting Standard 18 issued by ICAI is given below :
Summary of Related Parties Transactions for the year ended March 31, 2009
Holding Fellow Shareholders Key Enterprises over which Total
Company Subsidiaries with Management key management
Significant Personnel personnel have
Influence significant influence
(a) (b) (c) (d) (e)
Equity Share Capital 5,550,000 - 1,950,000 - - 7,500,000

Purchase of Fixed Assets - - - - - -
Purchase of Goods/Services - - - - - -
Premium received - - - - - -
Rendering Services - - - - - -
Receiving of Services - 4,700 937,466 92,860 4,533 946,699
Reimbursement of Expenses 1,180 16,532 19,962 - 93 37,767
Voluntary Contribution - - - - 25,000 25,000
Balance receivable/(payable)
as at March 31, 2009 (1,063) (3,515) (38,996) - (485) -
Notes:
1) All the above transactions have been conducted at arm’s length basis.
2) In accordance with the requirements of Accounting Standards (AS) - 18, “Related Party Disclosures”, the names of the related party where
control exists/able to exercise significant influence along with the aggregate transactions and year end balances with them as identified and
certified by the management are given below:
Description of relationship Name of Party
(a) Holding Company Max India Ltd.
(b) Fellow Subsidiaries Pharmax Corporation Ltd.
Max Medical Services Ltd.
Alps Hospital Ltd.
Neeman Medical International BV, Netherlands
Neeman Medical International NV, Netherlands
Max Neeman Medical International Inc, USA
Max Neeman Medical International Ltd.
Max Ateev Ltd.
Max UK Ltd, UK
Max Healthstaff International Ltd .
(c) Shareholder with significant influence New York Life International LLC
New York Life Insurance Company
(d) Key Management Personnel Analjit Singh (Chairman) / Gary Bennett (CEO & Managing Director, till 31-10-2008)
/ Sunil Sharma (Executive Director & COO, till 31-12-2008)/ Rajit Mehta ( Executive
Director & COO, w.e.f 01-11-2008)/ Rajesh Sud ( CEO & Managing Director, w.e.f
01-11-2008 )
(e) Enterprises related to Liquid Investments & Trading Company, New Delhi House Services Ltd., Medicare
Key Management Personnel Investments Ltd., Maxopp Investments Ltd., Cheminvest Ltd., Pivet Finances Ltd.,
Lakeview Enterprises, Delhi Guest Houses Pvt. Ltd., Trophy Holdings Pvt. Ltd., M.V.
Healthcare Services Pvt. Ltd., ND Callus Info Services Pvt. Ltd., Boom Investments Pvt.
Ltd., Malsi Holdings Ltd., Dynavest India Pvt. Ltd., Scorpios Beverages Pvt. Ltd., Trophy
Resorts & Guest Houses Pvt. Ltd., Trophy Estates Pvt. Ltd., Gaylord Impex Ltd., Pen
Investments Ltd., Mohair Investment & Trading Co. Pvt. Ltd., PVT Investments Ltd.,
Malsi Estates Ltd., TVP Investments Pvt. Ltd., BAS Investments Pvt. Ltd., Vitasta Estate
Pvt. Ltd., Terra Planet Estates Pvt. Ltd., Doon Holiday Resorts Pvt. Ltd., Urban Space
Consultants Pvt. Ltd., Capricorn Health Services Pvt. Ltd., Leo Retailing and Health
Services Pvt. Ltd., Nurture Health Services Pvt. Ltd., Capricorn Retailing and Services
Pvt. Ltd., Veer Health Services Pvt. Ltd., Wegmans Business Park Pvt. Ltd., Synergy
Infracon Pvt Ltd., Max Speciality Products Ltd., Max India Foundation, Max Bupa
Health Insurance Ltd.
3 MNYL 1.p65 227 8/19/2009, 12:31 PM

Summary of Related Parties Transactions for the year ended March 31, 2008
Holding Fellow Shareholders Key Enterprises over which Total
Company Subsidiaries with Management key management
Significant Personnel personnel have
Influence significant influence
(a) (b) (c) (d) (e)
Equity Share Capital 2,220,000 - 780,000 - - 3,000,000

Purchase of Fixed Assets - - - - - -
Purchase of Goods/Services - - - - - -
Premium received - - - - - -
Rendering Services - - - - - -
Receiving of Services - 1,581 - 52,587 2,931 57,099
Reimbursement of Expenses 1,709 10,586 7,668 - 293 20,256
Balance receivable/(payable)
as at March 31, 2008 (375) (357) (36,335) - (40) -
Notes:
1) All the above transactions have been conducted at arm’s length basis.
2) In accordance with the requirements of Accounting Standards (AS) - 18, “Related Party Disclosures”, the names of the related party where
control exists/able to exercise significant influence along with the aggregate transactions and year end balances with them as identified and
certified by the management are given below:
Description of relationship Name of Party
(a) Holding Company Max India Ltd.
(b) Fellow Subsidiaries Pharmax Corporation Ltd.
Max Medical Services Ltd.
Alps Hospital Ltd.
Neeman Medical International BV, Netherlands
Neeman Medical International NV, Netherlands
Max Neeman Medical International Inc, USA
Neeman Medical International, Latin America(till October 26, 2007)
Max Neeman Medical International Ltd.
Max Ateev Ltd.
Max Uk Ltd, Uk
Max Healthstaff International Ltd.
(c) Shareholder with significant influence New York Life International LLC
(d) Key Management Personnel Analjit Singh (Chairman) / Gary Bennett (CEO & Managing Director) / Sunil Sharma (Executive
Director & COO)
(e) Enterprises related to Key Management Personnel Liquid Investments & Trading Company, New Delhi House Services Ltd., Medicare Investments
Ltd., Maxopp Investments Ltd., Cheminvest Ltd., Pivet Finances Ltd., Lakeview Enterprises, Delhi
Guest Houses Pvt. Ltd., Trophy Holdings Pvt. Ltd., M.V. Healthcare Services Pvt. Ltd., ND Callus
Info Services Pvt. Ltd., Boom Investments Pvt. Ltd., Malsi Holdings Ltd., Dynavest India Pvt.
Ltd., Scorpios Beverages Pvt. Ltd., Trophy Resorts & Guest Houses Pvt. Ltd., Trophy Estates Pvt.
Ltd., Gaylord Impex Ltd., Pen Investments Ltd., Mohair Investment & Trading Co. Pvt. Ltd., PVT
Investments Ltd., Malsi Estates Ltd., TVP Investments Pvt. Ltd., BAS Investments Pvt. Ltd., Vitasta
Estate Pvt. Ltd., Terra Planet Estates Pvt. Ltd., Doon Holiday Resorts Pvt. Ltd., Urban Space
Consultants Pvt. Ltd., Max India Foundation
Other relevant information:
i) Fixed assets are purchased from holding Company, fellow subsidiary and Shareholders with significant influence at book value and normal commercial terms
respectively.
ii) Payment for services received from the holding Company are at actual cost incurred by them; those received from fellow subsidiary and shareholder with
significant influence are at agreed terms.
iii) Payments for management contract, including for deputation of employees is at actual cost incurred by them.
iv) Payments for services received from Key Management Personnel represent remuneration as computed under the Income Tax Act, 1961 and do not include
provision for gratuity payable to them as the same is actuarially determined for the Insurer as a whole.
3 MNYL 1.p65 228 8/19/2009, 12:31 PM

(w) Summary of Financial Statements forming part of Notes to Accounts (Rs in lakhs) is given below:
Particulars 2008-2009 2007-2008 2006-2007 2005-2006 2004-2005
POLICYHOLDERS’ A/C
1 Gross Premium Income 385,726 271,460 150,028 78,813 41,343
2 Net Premium Income (Net of Re-insurance ceded) 381,903 269,255 148,542 77,972 40,872
3 Income from Investments (Net of losses) (21,832) 22,411 9,308 6,245 2,087
4 Other Income (Miscellaneous Income) 95 36 99 123 15
5 Contribution from the Shareholders’ a/c 37,158 17,913 7,419 6,516 10,267
6 Total Income (2+3+4+5) 397,324 309,615 165,368 90,856 53,241
7 Commission 39,158 38,446 22,852 13,447 6,509
8 Brokerage - - - - -
9 Operating Expenses related to Insurance Business 161,034 86,634 51,429 33,946 24,662
10 Provision for Tax - Fringe Benefit Tax 794 469 311 256 -
11 Total Expenses (7+8+9+10) 200,986 125,549 74,592 47,649 31,171
12 Payments to Policyholders (includes Bonus to Policyholders) 22,082 13,601 8,337 4,254 1,242
13 Increase in Actuarial Liability 175,796 166,034 82,285 38,393 20,827
14 Surplus/Deficit from Operations (1,540) 4,431 154 560 -
SHAREHOLDERS’ A/C
15 Total Income under Shareholders’ Account 3,385 2,168 1,819 776 472
16 Profit/(loss) before Tax (39,302) (15,693) (6,047) (6,006) (9,966)
17 Provision for Tax - - - - -
18 Profit/loss after tax (39,302) (15,693) (6,047) (6,006) (9,966)
19 Profit/loss carried to Balance Sheet (100,275) (60,973) (45,280) (39,233) (33,227)
MISCELLANEOUS
20 Policyholders’ account:
Total Funds 498,539 322,743 156,709 74,424 36,031
Total Investments (Including Linked) 503,853 330,226 157,396 75,180 36,923
Yield on Investments (%) (Controlled Funds) 8.31% 7.92% 7.86% 7.92% 8.40%
Yield on Investments (%) (Unit Linked Funds) (13.56)% 11.27% 9.20% 31.29% 5.23%
Shareholders’ account:
Total Funds 78,592 43,568 28,611 17,087 14,078
Total Investments 52,291 41,673 27,097 13,432 11,379
Yield on Investments (%) 7.47% 6.51% 7.22% 6.45% 5.29%
21 Yield on Total Investments (3.90)% 9.24% 9.03% 10.81% 7.52%
22 Paid up Equity capital 178,243 103,243 73,243 55,743 46,608
23 Weighted Average Number of Shares 1,423,255 802,924 611,693 504,642 385,529
24 Net Worth 78,592 43,568 28,611 16,717 13,556
25 Total Assets 578,825 370,646 186,016 91,696 49,583
26 Earning per share - Basic & Diluted (Face Value : Rs 10 each) in Rs. (2.76) (1.95) (0.99) (1.19) (2.59)
27 Book Value per Share: Rs 10 Paid up 4.41 4.22 3.97 3.07 3.02
3 MNYL 1.p65 229 8/19/2009, 12:31 PM

(x) Earnings per equity share :

March 31, 2009 March 31, 2008
1 Net Profit/(Loss) as per Profit & Loss Account available
for equity shareholders for both basic and diluted earnings
per equity share of Rs 10 (3,930,156) (1,569,317)
2 Weighted average number of equity shares for earnings per equity share
a) For basic earnings per equity share 1,423,254,518 802,924,403
b) For diluted earnings per equity share (as per 2a) 1,423,254,518 802,924,403
Weighted average number of equity shares for
diluted earnings equity share 1,423,254,518 802,924,403
3 Earning per equity share
a) Basic (in Rs.) (2.76) (1.95)
b) Diluted (in Rs.) (2.76) (1.95)
(y) Employee Benefits - Disclosures as per revised AS 15
(Refer to Note I (g) on Schedule 16)
During the previous year the Insurer implemented Accounting Standard 15 (revised 2005) dealing with ‘Employee Benefits’, issued
by the Institute of Chartered Accountants of India Adoption of AS 15 (revised 2005) had resulted in changes in accounting policies
followed by Insurer in respect of short term , post employment and other long term benefits.
i Defined Contribution Plans - Provident Fund
During the year the Company has recognised the following amounts in the Revenue/ Profit and Loss account :
Provident Fund 2008-2009 2007-2008
Employers Contribution to Provident Fund* 179,171 82,605
* Included in employees remuneration and welfare benefits in schedule 3 of Revenue account and salaries and allowances in Profit and Loss account
ii Defined Benefit Plans - Gratuity
Actuarial valuation was carried out as at the balance sheet date in respect of the defined benefit plans based on the following assumptions.
Change in Defined Benefit Obligation Amounts
Present value obligation as at March 31, 2008 45,106
Impact of Transition provision of AS-15 -
Interest cost 3,608
Past Service cost -
Current service cost 23,387
Benefits Paid (6,790)
Actuarial (gain)/ loss on Obligations 18,271
Changes in the Fair value of Plan Assets
Fair value of Plan Assets as at March 31, 2008 37,721
Expected return on Plan Assets 3,018
Contributions 29,759
Benefits Paid (6,790)
Actuarial gain/ (loss) on Obligations (5,502)
Expenses Recognised in Profit & Loss Account
Current service cost 23,387
Past Service cost -
Interest cost 3,608
Expected return on Plan Assets (3,018)
Net Actuarial (gain)/ loss recognised during the year 23,773
Total Expense recognised in Profit & Loss Account 47,750
3 MNYL 1.p65 230 8/19/2009, 12:31 PM

Reconciliation of Present value of Defined Benefit Obligation and Fair value of Assets
Net asset/ (liability) as at March 31, 2009 recognised in Balance Sheet (25,376)
Assumptions
Discount Rate (per annum) 8%
Rate of increase in compensation levels 5%
Rate of return on plan assets 8%
Expected Average remaining working lives of employees (years) 24
iii Other long term benefits
During the year Insurer has recognised the following expenses in the Revenue and Profit and Loss account :
(a) non-vesting compensated leaves : Rs. 614 (2008 - Rs. 500)
(b) deferred compensation for employees : Rs. 728,860 (2008 - Rs. 561,595)
(z) Disclosures For ULIP Business

1 Performance of the Fund (Absolute Growth % )
Fund Name Year of Year Since
inception 2008-2009 2007-2008 2006-2007 Inception
Balanced 2004-05 -5.98% 17.29% 8.73% 63.31%
Conservative 2004-05 3.53% 12.96% 6.87% 48.54%
Growth 2004-05 -15.62% 24.18% 11.24% 94.29%
Secured 2004-05 13.66% 8.30% 5.28% 37.77%
Pension Balanced 2005-06 -4.38% 17.19% 5.99% 21.82%
Pension Conservative 2005-06 4.29% 10.24% 7.15% 24.05%
Pension Growth 2005-06 -16.65% 20.92% 9.88% 15.77%
Pension Secured 2005-06 7.65% 7.20% 5.37% 22.11%
Group Gratuity Balanced 2006-07 -1.44% 15.44% 5.12% 19.60%
Group Gratuity Conservative 2006-07 12.20% 7.60% 2.39% 23.61%
Group Gratuity Growth 2006-07 -13.79% 22.23% 0.52% 5.92%
Guaranteed Fund Dynamic 2006-07 -0.28% 12.28% 2.51% 14.79%
Guaranteed Fund Income 2006-07 1.29% 8.29% 1.26% 11.07%
High Growth 2007-08 -33.06% 0.23% - -32.90%
Growth Super 2007-08 -27.79% 17.02% - -15.50%
Pension Growth Super 2007-08 -30.27% -20.56% - -44.60%
Group Superannuation Balanced 2007-08 14.60% 2.76% - 17.77%
Group Superannuation Conservative 2007-08 0.00% - - -
Group Superannuation Growth 2007-08 0.00% - - -
Dynamic Opportunities 2008-09 -10.56% - - -
2 Investment Management
• Activities outsourced : None
• Fee paid for various activities charged to Policyholders’ Account : Nil
• Basis of payment of fees : Nil
3 MNYL 1.p65 231 8/19/2009, 12:31 PM

3 Related party transactions – Fund wise details

• Brokerage, custodial fee or any other payments and receipts
made to/from related parties (as defined in AS 18 issued by ICAI) : Nil
• Company-wise details of investments held in the Promoter Group
along with its percentage to funds under management. This information
is required to be given fund-wise and also for total funds under ULIPs. : Nil
4 Provision for doubtful debts on assets of the respective Fund : Nil
5 Unclaimed redemptions of units : Rs Nil (2008: Rs Nil)
6 Net Asset Value (NAV) : Highest, Lowest and Closing at the end of the March 31, 2009
Fund Name Highest NAV Lowest NAV Closing NAV
Balanced 17.953 15.156 16.331
Conservative 15.310 13.870 14.854
Secured 14.132 12.091 13.777
Growth 24.319 17.575 19.429
Growth Super 12.742 7.219 8.450
High Growth 11.251 5.825 6.710
Guaranteed Fund Dynamic 11.738 10.756 11.479
Guaranteed Fund Income 11.232 10.724 11.107
Pension Balanced 13.060 11.373 12.182
Pension Conservative 12.463 11.494 12.405
Pension Secured 12.756 11.288 12.211
Pension Growth 14.657 10.486 11.577
Pension Growth Super 8.553 4.859 5.540
Group Gratuity Balanced 12.439 11.062 11.960
Group Gratuity Conservative 12.544 11.018 12.361
Group Gratuity Growth 12.908 9.848 10.592
Group Superannuation Balanced 12.334 10.278 11.777
Group Superannuation Conservative 10.000 10.000 10.000
Group Superannuation Growth 10.000 10.000 10.000
Dynamic Opportunities 10.156 7.969 8.944
Net Asset Value (NAV) : Highest, Lowest and Closing at the end of the March 31, 2008
Fund Name Highest NAV Lowest NAV Closing NAV
Balanced 19.285 14.618 17.369
Conservative 14.730 12.643 14.347
Secured 12.139 11.189 12.121
Growth 28.424 18.075 23.025
Growth Super 15.887 9.883 11.702
High Growth 10.031 9.994 10.023
Guaranteed Fund Dynamic 12.321 10.185 11.510
Guaranteed Fund Income 11.361 10.070 10.966
Pension Balanced 13.925 10.718 12.740
Pension Conservative 12.245 10.731 11.895
Pension Secured 11.397 10.583 11.342
Pension Growth 17.192 11.215 13.890
Pension Growth Super 10.524 7.524 7.944
Group Gratuity Balanced 13.250 10.379 12.135
Group Gratuity Conservative 11.017 10.238 11.017
Group Gratuity Growth 14.634 9.830 12.287
Group Superannuation Balanced 10.280 9.995 10.276
Group Superannuation Conservative 10.000 10.000 10.000
Group Superannuation Growth 10.000 10.000 10.000
3 MNYL 1.p65 232 8/19/2009, 12:31 PM

7 Expenses Charges to Fund %

Annualized expense ratio to average daily assets of the Fund
Fund Name Ratios as at Ratios as at
March 31, 2009 March 31, 2008
Balanced 1.22% 1.10%
Conservative 1.00% 0.90%
Secured 1.00% 0.90%
Growth 1.38% 1.25%
Growth Super 1.50% 1.35%
High Growth 1.50% 1.35%
Guaranteed Fund Dynamic 1.88% 1.70%
Guaranteed Fund Income 1.66% 1.50%
Pension Balanced 1.22% 1.10%
Pension Conservative 1.00% 0.90%
Pension Secured 1.00% 0.90%
Pension Growth 1.38% 1.25%
Pension Growth Super 1.50% 1.35%
Group Gratuity Balanced 0.94% 0.85%
Group Gratuity Conservative 0.83% 0.75%
Group Gratuity Growth 1.06% 0.95%
Group Superannuation Balanced 0.94% 0.85%
Group Superannuation Conservative - -
Group Superannuation Growth - -
Dynamic Opportunities 1.79% -
8 Ratio of gross income (including unrealized gains) to average daily net assets
Fund Name Ratios as at Ratios as at
March 31, 2009 March 31, 2008
Balanced -3.71% 13.52%
Conservative 5.13% 12.29%
Secured 14.65% 8.55%
Growth -14.95% 13.46%
Growth Super -26.69% -8.82%
High Growth -43.68% 0.75%
Guaranteed Fund Dynamic 1.46% 10.65%
Guaranteed Fund Income 3.00% 8.53%
Pension Balanced -0.90% 8.68%
Pension Conservative 10.79% -0.40%
Pension Secured 5.86% 6.36%
Pension Growth -15.66% 11.76%
Pension Growth Super -30.23% -31.72%
Group Gratuity Balanced -2.28% 9.70%
Group Gratuity Conservative 15.14% 7.55%
Group Gratuity Growth -17.10% 11.02%
Group Superannuation Balanced 11.85% -
Group Superannuation Conservative - -
Dynamic Opportunities -4.71% -
3 MNYL 1.p65 233 8/19/2009, 12:31 PM

9 Fund-wise disclosure of appreciation and/or (depreciation) in value of investments segregated class-wise

Fund Name Bonds Equity Government Money Total
Securities Market
Balanced 15,640 (80,536) (4,877) 4,350 (65,422)
Conservative 2,799 (2,272) 680 61 1,268
Secured 3,626 - (868) 275 3,033
Growth 155,523 (1,396,640) (56,529) 2,237 (1,295,409)
Growth Super 25,497 14,047 (1,251) 1,898 40,191
High Growth 396 (11,414) 19 135 (10,864)
Guaranteed Fund Dynamic 83 (323) 69 (8) (179)
Guaranteed Fund Income 2 (28) 24 2 1
Pension Balanced 1,169 (2,564) 142 664 (590)
Pension Conservative 204 3 257 162 626
Pension Secured 468 - (1,709) 186 (1,055)
Pension Growth 5,590 (74,923) 2,313 3,725 (63,295)
Pension Growth Super 2,822 (47,005) 64 1,218 (42,901)
Group Gratuity Balanced 482 (1,506) (317) 128 (1,213)
Group Gratuity Conservative 1,257 - (267) 187 1,176
Group Gratuity Growth 208 (5,234) (5) 86 (4,945)
Group Superannuation Balanced - - 3 (0) 3
Group Superannuation Conservative - - - - -
Group Superannuation Growth - - - - -
Dynamic Opportunities 2,436 (4,461) (134) 654 (1,505)
3 MNYL 1.p65 234 8/19/2009, 12:31 PM

3 MNYL 2.p65
10 Statement of Industry Wise Disclosure of Investments (with exposure of 10% and above)
S. Sector Security Details Pension Life Balanced Fund Pension Life Growth Fund Pension Life Conservation Fund Pension Life Secured Fund
No. Investments Total % age Investments Total % age Investments Total % age Investments Total % age
Investment Investment Investment Investment
in Industry in Industry in Industry in Industry
1 AXIS BANK LTD 768.07 11,203.65 72.20 -
235
HOUSING DEVELOPMENT FINANCE CORP BANK 793.32 12,716.50 24.34 -
ICICI BANK LTD 831.00 13,459.43 4.99 -
JAMMU & KASHMIR BANK LTD 118.36 2,020.07 - -
PUNJAB NATIONAL BANK 205.73 1,234.35 - -
STATE BANK OF INDIA 499.40 12,975.94 226.23 -
AXIS BANK CD 20JUL2009 6,306.25 3,880.78 - -
BANK OF BARODA CD 11AUG2009 1,736.08 29,609.76 - 385.80
ICICI BANK CD 5JAN2010 1,872.46 - - 3,744.92
JAMMU & KASHMIR BANK CD 2DEC2009 753.96 - 848.04 1,601.85
PUNJAB NATIONAL BANK CD 29JUL2009 16,067.53 43,556.56 1,935.85 387.17
ST BK OF BIKANER & JAIPUR CD 17NOV2009 944.60 4,723.02 - 472.30
ST BK OF BIKANER & JAIPUR CD 28SEP2009 476.93 11,446.36 - -
STATE BANK OF INDORE CD 28APR2009 2,680.79 - - 297.87
Max India Limited

STATE OF TRAVANCORE CD 24NOV2009 950.02 - 1,900.03 1,900.03

BANK OF BARODA LTD - 1,359.23 - -
FEDERAL BANK LTD - 27.58 - -
ORIENTAL BANK OF COMMERCE - 1,784.17 - -
UNION BANK OF INDIA LTD - 176.22 - -
Banking VIJAYA BANK LTD - 35,004.52 32% 3,852.75 177,048.67 26% - 5,965.29 21% - 9,838.92 19%
services STATE BANK OF INDIA STEP CPN 12SEP2021 - 986.09 - -
PUNJAB NATIONAL BANK CD 5NOV2009 - 9,536.21 953.62 1,048.98
KARNATAKA BANK CD 29MAY2009 - - - -
ORIENTAL BANK OF COMMERCE CD 8SEP2009 - - - -
PUNJAB NATIONAL BANK 10.4%PERP 20JUL2017 - - - -
BANK OF INDIA - - - -
FEDERAL BANK CD 1DEC2009 - - - -
KOTAK MAHINDRA BANK CD 22SEP2009 - - - -

STATE BANK OF BIKANER AND JAIPUR CD 0202 - - - -
UCO BANK CD 19-MAR-10 - - - -
STATE BANK OF INDIA STEP CPN 12SEP2022 - - - -
BANK OF INDIA CD 23-MAR-10 - - - -
8/19/2009, 12:31 PM
FIX YES BANK LTD, MUMBAI 366D 8.9% 30DEC09 - 12,500.00 - -
FIX ICICI BANK LIMITED, NEW DELHI 999D 10.35% 22FEB12 - - - -
FIX UTIBINBA 366D 9.2% 27DEC09 - - - -
FIX ICICI BANK LIMITED, NEW DELHI 999D 9.25% 18OCT09 - - - -
FIX YESBINMU 366D 11% 13DEC09 - - - -
2 INDIAN RAILWAY FIN CORP 8.75% 07JAN2013 4,057.14 11,157.12 - 1,014.28
11.25% PFC NCD 28-NOV-2018 3,388.73 - - 1,129.58
11% IDFC LTD 21-JUL-2010 1,036.85 5,184.24 - -
11% POWER FINANCE CORPORATION 15SEP18 3,336.96 - - -
INDIAN RAILWAY FIN CORP 8.69% 07JAN2011 - 12,194.53 - 3,048.63
9.22% POWER FINANCE CORP(28-DEC-2012) - 1,023.58 - -
INFRA DEV FINANCE CO LTD 10% 22MAY2012 - 2,092.20 - -
INDIAN RAILWAY FIN CORP 9.43% 23MAY2018 - 10,293.24 - -
3 MNYL 2.p65
INDIAN RAILWAY FINANCE CO 9.68% 3JUL2012 - 11,819.67 11% 1,044.89 42,989.80 6% - - 0% - 5,192.49 10%
POWER FINANCE CORP 7% 24DEC2011-SER 22 - - - -
236
9.3% PFC MD:12-MAR-2011 - - - -
9.79% IDFC 11-SEP-09 - - - -
Financial 11.40% PFC 28-NOV-2013 - - - -
institutions INDIAN RAILWAY FIN CORP 8.83% 29OCT2012 - - - -
INFRA DEV FINANCE CO LTD 8.6% 24NOV2011 - - - -
POWER FINANCE CORP LTD 9.8% 20SEP2012 - - - -
8.94% PFC 15JAN2013 - - - -
9.4% PFC 25-MAR-2013 - - - -
3 INDIA TREASURY BILLS 364 DAYS(25-SEP-09) 1,153.20 12,493.00 547.77 -
INDIA, GOVERNMENT OF 11.5% 15MAY2009 44.31 - - 125.87
INDIA, GOVERNMENT OF 6.65% 5APR2009 7,336.43 1,500.29 100.02 5,284.53
INDIA, GOVERNMENT OF 7.27% 3SEP2013 1,024.90 13,528.68 - -
Max India Limited

INDIA, GOVERNMENT OF 7.5% 12MAY2010 565.71 - - 154.28

INDIA, GOVERNMENT OF 8.33% 7JUN2036 848.32 413.56 - 8,695.29
INDIA, GOVT OF 7.49% 16APR2017 274.48 5,113.50 172.82 -
INDIA, GOVT OF 7.99% 9JUL2017 1,049.50 - 419.80 6,401.95

5.48% GOI 2009 (MD 12/06/2009) 1,000.40 7,202.88 2,000.80 2,501.00
7.46% GOI 28AUG2017 7,620.00 45,720.00 - -
7.95% GOI 28AUG2032 1,014.00 4,056.00 - 1,014.00
7.95% INDIA GOVERNMENT 18-FEB-2026 800.80 - - 700.70
8.24% GOI 22APR2018 - 9,774.00 - -
Government INDIA, GOVERNMENT OF 11.5% 11JUN2010 - 22,732.05 20% - 99,801.90 15% 62.21 17,191.87 59% 15.02 28,330.93 56%
INDIA, GOVERNMENT OF 11.83% 12 NOV 2014 - - 10,158.84 73.00
6.05% GOI 02-FEB-19 - - 3,729.60 1,398.60
INDIA, GOVERNMENT OF 7.38% 3SEP2015 - - - 1,032.50
7.56% GOI 03NOV2014 - - - 934.20
INDIA, GOVERNMENT OF 9.4% 11SEP2012 - - - -
7.59% GOI 12APR2016 - - - -

8.35% GOI 14MAY2022 - - - -
INDIA TREASURY BILLS 364 DAYS 20NOV09 - - - -
INDIA, GOVERNMENT OF 7.4% 3MAY2012 - - - -
INDIA, GOVT OF 8.2% 15FEB2022 SPB - - - -
8/19/2009, 12:31 PM
6.83% GOI 19JAN2039 - - - -
8.24% INDIA GOVERNMENT 15/02/2027 - - - -
INDIA, GOVERNMENT OF 7.37% 16APR2014 - - - -
6.72% GOI 24-FEB-14 - - - -
4 HDFC LTD 9.1% 19MAY2009 997.63 2,992.90 - -
LIC HOUSING FINANCE LTD 9.15% 22OCT2010 4,070.34 - - -
HDFC LTD 8.55% 1DEC2009 1,002.55 1,002.55 - -
HOUSING DEV FIN CORP 9.7% 19JUL2017 1,029.81 5,149.05 - -
HOUSING DEV FINANCE CORP 10.1% 13SEP2017 1,052.86 10,528.63 - -
11.15% HDFC NCD 06-AUG-18 3,362.12 11,207.08 2,241.42 -
HOUSING DEV FINANCE CORP 10.35% 6JUN2017 - - 1,066.05 -
HOUSING DEVELOPMENT FINANCE 8.5% 29AUG09 - - - -
11.65% HDFC LTD 09-SEP-2010 - 7,342.66 - 1,048.95
11.95% HDFC LTD 26-NOV-2018 - - - -
3 MNYL 2.p65
POWER FINANCE CORP 8.49% 9OCT2011 - 2,008.88 - -

9.5% HDFC MD:28-FEB-2013 - 11,515.32 10% 5,148.59 46,309.73 7% - 3,307.47 11% - 1,048.95 2%
237
HOUSING DEVELOPMENT FINANCE 0% 12MAR2010 - 929.40 - -
11.25% HDFC LTD (04-SEP-2018) - - - -
Housing 9.5% HDFC MD:27-FEB-2013 - - - -
finance HOUSING DEV FIN CORP 9.25% 26DEC09 - - - -
services HOUSING DEV FIN CORP 9.32% 17DEC2012 - - - -
HOUSING DEV FINANCE CORP 10.25% 29MAY12 - - - -
HOUSING DEV FINANCE CORP 6.95% 13DEC2009 - - - -
HOUSING DEV FINANCE CORP 8.95% 29OCT2010 - - - -
LIC HOUSING FINANCE LTD 9.35% 23NOV2014 - - - -
9.90% HDFC LTD NCD (23-DEC-2018) - - - -
LIC HOUSING FINANCE LTD - - - -
5 RELIANCE INDUSTRIES LTD 1,196.93 34,535.59 359.84 -
Max India Limited

Petroleum RELIANCE PETROLEUM LTD 90.63 4,127.34 12.08 -

products 10.75% RELIANCE IND LTD NCD 08-DEC-2018 - 8,902.44 8% 10,986.63 60,709.74 9% - 371.92 1% - - 0%
(Refineries) 10.10% RELIANCE INDUSTRIES LTD NCD121211 2,084.79 - - -
11.45% RELIANCE INDUSTRIES LTD NCD251113 5,530.09 11,060.18 - -
HINDUSTAN PETROLEUM CORP LTD - - - -
6 Others 21,081.22 21,081.22 19% 251,749.78 251,749.78 37% 2,219.34 2,219.34 8% 6,618.20 6,618.20 13%
(less than
10%)
Total 111,055 111,055 100% 678,610 678,610 100% 29,056 29,056 100% 51,029 51,029 100%
8/19/2009, 12:31 PM
3 MNYL 2.p65
S. Sector Security Details Group Gratuity Balanced Fund Group Gratuity Growth Fund Group Gratuity Conservative Fund Group Superannuation Balanced Fund
1 AXIS BANK LTD 141.08 493.79 - -

HOUSING DEVELOPMENT FINANCE CORP BANK 369.89 689.17 - -
238
ICICI BANK LTD 68.22 325.48 - -
JAMMU & KASHMIR BANK LTD - 47.22 - -
PUNJAB NATIONAL BANK 166.64 144.01 - -
STATE BANK OF INDIA 149.39 399.10 - -
AXIS BANK CD 20JUL2009 - - - -
BANK OF BARODA CD 11AUG2009 385.79 - - -
ICICI BANK CD 5JAN2010 - 2,808.69 - -
JAMMU & KASHMIR BANK CD 2DEC2009 3,581.06 1,320.68 1,321.29 -
PUNJAB NATIONAL BANK CD 29JUL2009 387.17 1,935.85 4,065.28 -
ST BK OF BIKANER & JAIPUR CD 17NOV2009 - - 566.76 -
ST BK OF BIKANER & JAIPUR CD 28SEP2009 - - - -
STATE BANK OF INDORE CD 28APR2009 1,191.46 - - -
Max India Limited

STATE OF TRAVANCORE CD 24NOV2009 - - - -

BANK OF BARODA LTD 222.63 - - -
FEDERAL BANK LTD - - - -
ORIENTAL BANK OF COMMERCE 44.04 104.60 - -

UNION BANK OF INDIA LTD 88.11 - - -
Banking VIJAYA BANK LTD - 6,795.50 19% - 8,268.57 20% - 5,953.33 10% - - 0%
services STATE BANK OF INDIA STEP CPN 12SEP2021 - - - -
PUNJAB NATIONAL BANK CD 5NOV2009 - - - -
KARNATAKA BANK CD 29MAY2009 - - - -

STATE BANK OF BIKANER AND JAIPUR CD 0202 - - - -
8/19/2009, 12:31 PM
FIX YES BANK LTD, MUMBAI 366D 8.9% 30DEC09 - - - -
FIX UTIBINBA 366D 9.2% 27DEC09 - - - -
FIX YESBINMU 366D 11% 13DEC09 - - - -
2 INDIAN RAILWAY FIN CORP 8.75% 07JAN2013 - - - -
11.25% PFC NCD 28-NOV-2018 1,129.58 5,647.88 - -
11% IDFC LTD 21-JUL-2010 1,036.85 - 1,036.85 -
11% POWER FINANCE CORPORATION 15SEP18 1,112.32 - 4,449.28 -
INDIAN RAILWAY FIN CORP 8.69% 07JAN2011 - - 1,016.21 -
9.22%POWER FINANCE CORP(28-DEC-2012) 1,023.58 - - -
INFRA DEV FINANCE CO LTD 10% 22MAY2012 - 4,302.32 12% - 5,647.88 14% 4,184.40 10,686.73 18% - - 0%
INDIAN RAILWAY FIN CORP 9.43% 23MAY2018 - - - -
3 MNYL 2.p65
INDIAN RAILWAY FINANCE CO 9.68% 3JUL2012 - - - -
239
9.3%PFC MD:12-MAR-2011 - - - -
9.79% IDFC 11-SEP-09 - - - -
Financial 11.40% PFC 28-NOV-2013 - - - -
8.94% PFC 15JAN2013 - - - -
9.4% PFC 25-MAR-2013 - - - -
3 INDIA TREASURY BILLS 364 DAYS(25-SEP-09) - - - 2.88
INDIA, GOVERNMENT OF 11.5% 15MAY2009 2,315.95 - 594.09 -
INDIA, GOVERNMENT OF 6.65% 5APR2009 179.03 2,255.44 9,264.31 1.30
INDIA, GOVERNMENT OF 7.27% 3SEP2013 204.98 - - -
Max India Limited


INDIA, GOVERNMENT OF 8.33% 7JUN2036 3,181.20 - - -
INDIA, GOVT OF 7.49% 16APR2017 508.30 1,189.42 - -
INDIA, GOVT OF 7.99% 9JUL2017 314.85 997.03 7,346.50 5.25
5.48% GOI 2009 (MD 12/06/2009) 1,400.56 - - -
7.46% GOI 28AUG2017 - - - -
7.95% GOI 28AUG2032 - - - -
7.95% INDIA GOVERNMENT 18-FEB-2026 - 700.70 700.70 20.02
8.24% GOI 22APR2018 - - - -
Government INDIA, GOVERNMENT OF 11.5% 11JUN2010 13.94 10,764.62 30% - 9,813.59 24% 17.16 31,077.79 52% - 75.68 100%
INDIA, GOVERNMENT OF 11.83% 12 NOV 2014 - - 24.33 46.23
6.05% GOI 02-FEB-19 - - - -
INDIA, GOVERNMENT OF 7.38% 3SEP2015 206.50 - - -
7.56% GOI 03NOV2014 2,439.30 4,671.00 13,130.70 -
7.59% GOI 12APR2016 - - - -

8.35% GOI 14MAY2022 - - - -
8/19/2009, 12:31 PM
6.83% GOI 19JAN2039 - - - -
6.72% GOI 24-FEB-14 - - - -
4 HDFC LTD 9.1% 19MAY2009
LIC HOUSING FINANCE LTD 9.15% 22OCT2010 - - 1,017.59 -
HDFC LTD 8.55% 1DEC2009 - - - -
HOUSING DEV FIN CORP 9.7% 19JUL2017 - - - -
HOUSING DEV FINANCE CORP 10.1% 13SEP2017 - - - -
11.15% HDFC NCD 06-AUG-18 - 1,120.71 4,482.83 -
HOUSING DEV FINANCE CORP 10.35% 6JUN2017 - - - -
HOUSING DEVELOPMENT FINANCE 8.5% 29AUG09 - - - -
11.65% HDFC LTD 09-SEP-2010 - - - -
11.95% HDFC LTD 26-NOV-2018 - - - -
3 MNYL 2.p65
POWER FINANCE CORP 8.49% 9OCT2011 - - - -

9.5% HDFC MD:28-FEB-2013 - - - -
240
HOUSING DEVELOPMENT FINANCE 0% 12MAR2010 - - - -
11.25% HDFC LTD (04-SEP-2018) - - - -
Housing 9.5% HDFC MD:27-FEB-2013 - 0% - 1,120.71 3% - 5,500.42 9% - 0%
finance HOUSING DEV FIN CORP 9.25% 26DEC09 - - - -
HOUSING DEV FINANCE CORP 6.95% 13DEC2009 - - - -
9.90% HDFC LTD NCD (23-DEC-2018) - - - -
5 Petroleum RELIANCE INDUSTRIES LTD 777.62 2,992.60 8% 1,829.70 2,066.69 5% - - 0% - - 0%
Max India Limited

products RELIANCE PETROLEUM LTD 66.57 236.99 - -

(Refineries) 10.75% RELIANCE IND LTD NCD 08-DEC-2018 - - - -
10.10% RELIANCE INDUSTRIES LTD NCD121211 1,042.39 - - -
11.45% RELIANCE INDUSTRIES LTD NCD251113 1,106.02 - - -

6 Others 11,131.87 11,131.87 31% 13,516.06 13,516.06 33% 6,467.50 6,467.50 11% - - 0%
(less than
10%)
Total 35,987 35,987 100% 40,433 40,433 100% 59,686 59,686 100% 76 76 100%
8/19/2009, 12:31 PM
3 MNYL 2.p65
S. Sector Security Details Balanced Fund Growth Fund Conservation Fund Secured Fund
1 AXIS BANK LTD 8,257.51 368,651.12 - -
HOUSING DEVELOPMENT FINANCE CORP BANK 9,247.30 256,926.98 - -
241
ICICI BANK LTD 9,152.00 296,036.25 - -
JAMMU & KASHMIR BANK LTD 2,319.45 74,189.55 104.20 -
PUNJAB NATIONAL BANK 2,468.70 386,820.19 82.29 -
STATE BANK OF INDIA 5,024.97 416,952.25 - -
AXIS BANK CD 20JUL2009 1,940.39 83,436.71 - -
BANK OF BARODA CD 11AUG2009 5,786.92 49,394.61 - -
ICICI BANK CD 5JAN2010 9,362.30 65,536.07 1,872.46 -
JAMMU & KASHMIR BANK CD 2DEC2009 26,882.51 120,441.77 8,390.64 15,170.51
PUNJAB NATIONAL BANK CD 29JUL2009 14,518.85 - - -
ST BK OF BIKANER & JAIPUR CD 17NOV2009 30,699.65 6,045.47 - 3,778.42
ST BK OF BIKANER & JAIPUR CD 28SEP2009 35,769.87 - - -
STATE BANK OF INDORE CD 28APR2009 9,928.87 82,211.04 - -
STATE OF TRAVANCORE CD 24NOV2009 - 40,296.31 - -
Max India Limited

BANK OF BARODA LTD - 109,790.63 620.09 -

FEDERAL BANK LTD - 92,743.40 896.35 -
ORIENTAL BANK OF COMMERCE 2,870.53 21,624.30 1,896.25 -
UNION BANK OF INDIA LTD - 217,411.87 - -
Banking VIJAYA BANK LTD - 264,410.12 17% 87,912.75 3,867,139.32 20% - 17,755.62 7% - 33,631.12 9%
services STATE BANK OF INDIA STEP CPN 12SEP2021 11,833.09 5,916.55 986.09 -
PUNJAB NATIONAL BANK CD 5NOV2009 17,069.82 3,814.49 1,907.24 3,814.48
KARNATAKA BANK CD 29MAY2009 14,801.57 71,047.53 - 9,867.71
ORIENTAL BANK OF COMMERCE CD 8SEP2009 9,644.65 38,578.58 - -
PUNJAB NATIONAL BANK 10.4%PERP 20JUL2017 12,831.19 72,710.08 - -
BANK OF INDIA - 7,844.87 - -
FEDERAL BANK CD 1DEC2009 - 93,645.02 - -
FEDERAL BANK CD 31DEC2009 - 94,081.90 - -
KOTAK MAHINDRA BANK CD 22SEP2009 - 95,871.62 - -
STATE BANK OF BIKANER AND JAIPUR CD 0202 - 47,128.85 - -

UCO BANK CD 19-MAR-10 - 92,857.54 - -
STATE BANK OF INDIA STEP CPN 12SEP2022 - 25,721.00 - -
FIX YES BANK LTD, MUMBAI 366D 8.9% 30DEC09 4,000.00 41,500.00 1,000.00 1,000.00
8/19/2009, 12:31 PM
FIX ICICI BANK LIMITED, NEW DELHI 999D 10.35% 22FEB12 10,000.00 40,000.00 - -
FIX UTIBINBA 366D 9.2% 27DEC09 10,000.00 160,000.00 - -
FIX ICICI BANK LIMITED, NEW DELHI 999D 9.25% 18OCT09 - 50,000.00 - -
FIX ICICI BANK LIMITED, NEW DELHI 999D 9.25% 19OCT09 - 100,000.00 - -
FIX YESBINMU 366D 11% 13DEC09 - 50,000.00 - -
2 INDIAN RAILWAY FIN CORP 8.75% 07JAN2013 12,171.41 170,399.70 3,042.85 1,014.28
11.25% PFC NCD 28-NOV-2018 24,850.68 279,005.40 - 13,554.92
11% IDFC LTD 21-JUL-2010 12,442.17 23,847.49 2,073.70 3,110.54
11% POWER FINANCE CORPORATION 15SEP18 5,561.60 33,369.58 1,112.32 6,673.92
INDIAN RAILWAY FIN CORP 8.69% 07JAN2011 3,048.63 11,178.32 2,032.42 1,016.21
9.22%POWER FINANCE CORP(28-DEC-2012) 2,047.15 96,216.13 - -
INFRA DEV FINANCE CO LTD 10% 22MAY2012 10,461.00 27,198.59 1,046.10 5,230.50
INDIAN RAILWAY FIN CORP 9.43% 23MAY2018 - 41,172.97 - -
INDIAN RAILWAY FINANCE CO 9.68% 3JUL2012 5,224.47 108,039.42 7% 148,375.06 1,184,488.33 6% 1,044.89 10,352.28 4% 1,044.89 31,645.26 9%
3 MNYL 2.p65
POWER FINANCE CORP 7% 24DEC2011-SER 22 11,908.84 11,908.84 - -

9.3%PFC MD:12-MAR-2011 10,251.13 41,004.53 - -
242
9.79% IDFC 11-SEP-09 10,072.34 40,289.35 - -
Financial 11.40% PFC 28-NOV-2013 - 55,216.63 - -
institutions INDIAN RAILWAY FIN CORP 8.83% 29OCT2012 - 8,177.31 - -
INFRA DEV FINANCE CO LTD 8.6% 24NOV2011 - 30,218.21 - -
POWER FINANCE CORP LTD 9.8% 20SEP2012 - 13,573.00 - -
8.94% PFC 15JAN2013 - 50,624.46 - -
9.4% PFC 25-MAR-2013 - 102,712.75 - -
3 INDIA TREASURY BILLS 364 DAYS(25-SEP-09) 6,729.79 59,546.04 - -
INDIA, GOVERNMENT OF 11.5% 15MAY2009 15,396.04 2,921.12 - -
INDIA, GOVERNMENT OF 6.65% 5APR2009 46,760.12 428.08 - -
INDIA, GOVERNMENT OF 7.27% 3SEP2013 30,747.00 58,778.02 - 51,245.00
INDIA, GOVERNMENT OF 7.5% 12MAY2010 - 1,337.13 514.28 -
Max India Limited

INDIA, GOVERNMENT OF 8.33% 7JUN2036 - 22,385.07 - -

INDIA, GOVT OF 7.49% 16APR2017 670.96 1,502.53 559.13 -
INDIA, GOVT OF 7.99% 9JUL2017 51,320.55 512,744.77 15,952.40 15,742.50
5.48% GOI 2009 (MD 12/06/2009) - 6,452.58 - -

7.46% GOI 28AUG2017 143,764.00 923,036.00 48,260.00 50,800.00
7.95% GOI 28AUG2032 - - - -
7.95% INDIA GOVERNMENT 18-FEB-2026 - 91,721.63 - -
8.24% GOI 22APR2018 - 1,086.00 - -
Government INDIA, GOVERNMENT OF 11.5% 11JUN2010 268.16 537,090.48 35% 6,541.01 3,501,313.51 18% 1,019.02 137,301.92 55% - 205,649.12 57%
INDIA, GOVERNMENT OF 11.83% 12 NOV 2014 24,332.56 7,877.67 18,249.42 -
6.05% GOI 02-FEB-19 124,009.20 563,635.80 19,580.40 9,324.00
INDIA, GOVERNMENT OF 7.38% 3SEP2015 23,231.25 27,154.75 - -
7.56% GOI 03NOV2014 - - - 1,868.40
INDIA, GOVERNMENT OF 9.4% 11SEP2012 7,070.86 543.91 7,614.78 543.91
7.59% GOI 12APR2016 15,315.00 342,035.00 - 622.81

8.35% GOI 14MAY2022 47,475.00 321,775.00 - -
INDIA TREASURY BILLS 364 DAYS 20NOV09 - 48,419.16 - -
INDIA, GOVERNMENT OF 7.4% 3MAY2012 - 51,750.00 - -
INDIA, GOVT OF 8.2% 15FEB2022 SPB - 263,625.00 - -
6.83% GOI 19JAN2039 - 133,470.00 - -
8/19/2009, 12:31 PM
8.24% INDIA GOVERNMENT 15/02/2027 - 52,547.25 - -
INDIA, GOVERNMENT OF 7.37% 16APR2014 - - 25,552.50 25,552.50
6.72% GOI 24-FEB-14 - - - 49,950.00
4 HDFC LTD 9.1% 19MAY2009 22,945.60 - - -
LIC HOUSING FINANCE LTD 9.15% 22OCT2010 - 21,369.29 - -
HDFC LTD 8.55% 1DEC2009 6,015.28 61,155.33 - -
HOUSING DEV FIN CORP 9.7% 19JUL2017 - 45,311.64 - -
HOUSING DEV FINANCE CORP 10.1% 13SEP2017 4,211.45 89,493.35 - -
11.15% HDFC NCD 06-AUG-18 11,207.08 47,069.72 - -
HOUSING DEV FINANCE CORP 10.35% 6JUN2017 - 52,236.48 - -
HOUSING DEVELOPMENT FINANCE 8.5% 29AUG09 - 60,062.26 2,002.08 3,003.11
11.65% HDFC LTD 09-SEP-2010 10,489.51 65,034.97 4,195.80 10,489.51
11.95% HDFC LTD 26-NOV-2018 14,077.21 117,310.09 - 9,384.81
POWER FINANCE CORP 8.49% 9OCT2011 2,008.88 45,199.84 1,004.44 -
3 MNYL 2.p65
9.5% HDFC MD:28-FEB-2013 5,148.59 88,555.75 1,029.72 1,029.72
HOUSING DEVELOPMENT FINANCE 0% 12MAR2010 1,858.80 43,681.71 - -
243
11.25% HDFC LTD (04-SEP-2018) 15,783.97 90,194.09 2,254.85 4,509.70
Housing 9.5% HDFC MD:27-FEB-2013 10,296.91 104,043.27 7% 36,039.20 1,380,546.20 7% - 10,486.89 4% 5,148.46 34,557.63 10%
finance HOUSING DEV FIN CORP 9.25% 26DEC09 - 100,775.38 - -
services HOUSING DEV FIN CORP 9.32% 17DEC2012 - 102,794.54 - -
HOUSING DEV FINANCE CORP 10.25% 29MAY12 - 52,650.09 - -
HOUSING DEV FINANCE CORP 6.95% 13DEC2009 - 3,969.30 - 992.32
HOUSING DEV FINANCE CORP 8.95% 29OCT2010 - 101,495.74 - -
LIC HOUSING FINANCE LTD 9.35% 23NOV2014 - 51,564.74 - -
9.90% HDFC LTD NCD (23-DEC-2018) - 104,582.72 - -
5 RELIANCE INDUSTRIES LTD 22,897.17 879,989.64 1,422.59 -
Petroleum RELIANCE PETROLEUM LTD 2,695.13 129,063.23 9% 101,881.11 1,518,791.14 8% 261.62 16,277.72 7% - 29,250.63 8%
Max India Limited

products 10.75% RELIANCE IND LTD NCD 08-DEC-2018 24,170.58 32,959.88 - -

(Refineries) 10.10% RELIANCE INDUSTRIES LTD NCD121211 41,695.73 173,037.27 14,593.50 28,144.62
11.45% RELIANCE INDUSTRIES LTD NCD251113 37,604.63 330,699.50 - 1,106.02
HINDUSTAN PETROLEUM CORP LTD - 223.75 - -
6 Others 374,712.29 374,712.29 25% 7,956,580.81 7,956,580.81 41% 56,628.53 56,628.53 23% 26,995.01 26,995.01 7%
(less than
10%)
Total 1,517,358.82 1,517,358.82 100% 19,408,859.31 19,408,859.31 100% 248,803 248,803 100% 361,729 361,729 100%
8/19/2009, 12:31 PM
3 MNYL 2.p65
S. Sector Security Details Guaranteed Fund-Income Guaranteed Fund- Dynamic Super Growth Fund Pension Growth Super Fund
1 AXIS BANK LTD 7.05 56.43 174,970.72 10,757.58

HOUSING DEVELOPMENT FINANCE CORP BANK 12.65 65.22 103,702.14 22,570.23
244
ICICI BANK LTD 10.32 51.58 124,499.15 16,333.82
JAMMU & KASHMIR BANK LTD - - 31,337.08 2,259.00
PUNJAB NATIONAL BANK 4.11 10.29 112,305.28 5,143.13
STATE BANK OF INDIA 8.54 58.69 172,863.80 17,105.61
AXIS BANK CD 20JUL2009 - - 485.10 -
BANK OF BARODA CD 11AUG2009 - - - 2,507.67
ICICI BANK CD 5JAN2010 - - 4,681.15 3,744.92
JAMMU & KASHMIR BANK CD 2DEC2009 94.23 659.59 7,538.13 -
PUNJAB NATIONAL BANK CD 29JUL2009 - - - 10,647.16
ST BK OF BIKANER & JAIPUR CD 17NOV2009 - - - -
ST BK OF BIKANER & JAIPUR CD 28SEP2009 - - - -
STATE BANK OF INDORE CD 28APR2009 - - 992.89 -
Max India Limited

STATE OF TRAVANCORE CD 24NOV2009 - - - -

BANK OF BARODA LTD - - 65,438.02 3,749.60
FEDERAL BANK LTD - - 73,356.87 854.98
ORIENTAL BANK OF COMMERCE - - 31,929.77 1,805.20

UNION BANK OF INDIA LTD - - 98,614.62 961.87
Banking VIJAYA BANK LTD - 136.90 8% - 901.80 8% 17,279.00 1,277,285.52 24% 1,167.50 112,104.79 22%
services STATE BANK OF INDIA STEP CPN 12SEP2021 - - - -
PUNJAB NATIONAL BANK CD 5NOV2009 - - - 9,536.21
KARNATAKA BANK CD 29MAY2009 - - - 2,960.31

STATE BANK OF BIKANER AND JAIPUR CD 0202 - - 94,257.70 -
BANK OF INDIA CD 23-MAR-10 - - 93,034.11 -
8/19/2009, 12:31 PM
FIX YES BANK LTD, MUMBAI 366D 8.9% 30DEC09 - - - -
FIX UTIBINBA 366D 9.2% 27DEC09 - - 20,000.00 -
FIX YESBINMU 366D 11% 13DEC09 - - 50,000.00 -
2 INDIAN RAILWAY FIN CORP 8.75% 07JAN2013 - - - -
11.25% PFC NCD 28-NOV-2018 - - 112,957.65 -
11% IDFC LTD 21-JUL-2010 - - - -
11% POWER FINANCE CORPORATION 15SEP18 - - - -
INDIAN RAILWAY FIN CORP 8.69% 07JAN2011 - - 11,178.32 1,016.21
9.22%POWER FINANCE CORP(28-DEC-2012) - - - 2,047.15
INFRA DEV FINANCE CO LTD 10% 22MAY2012 - - - 2,092.20
INDIAN RAILWAY FIN CORP 9.43% 23MAY2018 - - - -
3 MNYL 2.p65
INDIAN RAILWAY FINANCE CO 9.68% 3JUL2012 - - - -

245
9.3%PFC MD:12-MAR-2011 - - - -
9.79% IDFC 11-SEP-09 - - - -
Financial 11.40% PFC 28-NOV-2013 - - 0% - - 0% 55,216.63 179,352.60 3% - 5,155.56 1%
8.94% PFC 15JAN2013 - - - -
9.4% PFC 25-MAR-2013 - - - -
3 INDIA TREASURY BILLS 364 DAYS(25-SEP-09) 59.10 - - 11,051.50
INDIA, GOVERNMENT OF 11.5% 15MAY2009 - 654.51 - -
INDIA, GOVERNMENT OF 6.65% 5APR2009 817.36 874.67 - 500.10
INDIA, GOVERNMENT OF 7.27% 3SEP2013 - - 28,697.20 -
Max India Limited


INDIA, GOVERNMENT OF 8.33% 7JUN2036 - - - -
INDIA, GOVT OF 7.49% 16APR2017 101.66 73.20 - -
INDIA, GOVT OF 7.99% 9JUL2017 4.20 - 2,036.03 -
5.48% GOI 2009 (MD 12/06/2009) 200.08 3,501.40 - -
7.46% GOI 28AUG2017 - - - -
7.95% GOI 28AUG2032 - - - 1,014.00
7.95% INDIA GOVERNMENT 18-FEB-2026 50.05 400.40 - -
8.24% GOI 22APR2018 - - - -
Government INDIA, GOVERNMENT OF 11.5% 11JUN2010 1.07 1,357.18 83% 107.26 7,133.45 62% - 296,189.71 5% - 12,565.60 2%
INDIA, GOVERNMENT OF 11.83% 12 NOV 2014 30.42 38.93 - -
6.05% GOI 02-FEB-19 93.24 652.68 163,356.48 -
7.56% GOI 03NOV2014 - 830.40 - -
7.59% GOI 12APR2016 - - 102,100.00 -

8.35% GOI 14MAY2022 - - - -
8/19/2009, 12:31 PM
6.83% GOI 19JAN2039 - - - -
6.72% GOI 24-FEB-14 - - - -
4 HDFC LTD 9.1% 19MAY2009 - - 21,947.97 997.63
LIC HOUSING FINANCE LTD 9.15% 22OCT2010 - - 20,351.70 -
HDFC LTD 8.55% 1DEC2009 - - - -
HOUSING DEV FIN CORP 9.7% 19JUL2017 - - - -
HOUSING DEV FINANCE CORP 10.1% 13SEP2017 - - - -
11.15% HDFC NCD 06-AUG-18 - - 56,035.38 22,414.15
HOUSING DEV FINANCE CORP 10.35% 6JUN2017 - - - -
HOUSING DEVELOPMENT FINANCE 8.5% 29AUG09 - - 3,003.11 -
11.65% HDFC LTD 09-SEP-2010 - 1,048.95 - -
11.95% HDFC LTD 26-NOV-2018 - - 58,655.05 11,731.01
3 MNYL 2.p65
POWER FINANCE CORP 8.49% 9OCT2011 - - - -

9.5% HDFC MD:28-FEB-2013 - - - 2,059.44
246
HOUSING DEVELOPMENT FINANCE 0% 12MAR2010 - - - -
Housing 11.25% HDFC LTD (04-SEP-2018) - - 0% - 1,048.95 9% - 192,869.56 4% - 42,163.85 8%
finance 9.5% HDFC MD:27-FEB-2013 - - - -
HOUSING DEV FIN CORP 9.32% 17DEC2012 - - - -
HOUSING DEV FINANCE CORP 6.95% 13DEC2009 - - 6,946.27 4,961.62
9.90% HDFC LTD NCD (23-DEC-2018) - - - -
LIC HOUSING FINANCE LTD - - 25,930.09 -
5 RELIANCE INDUSTRIES LTD 16.77 214.99 411,581.87 42,807.36
Max India Limited

Petroleum RELIANCE PETROLEUM LTD 1.90 18.67 1% 6.56 221.55 2% 68,676.94 513,218.68 9% 2,634.27 54,230.93 10%

products 10.75% RELIANCE IND LTD NCD 08-DEC-2018 - - 32,959.88 8,789.30
(Refineries) 10.10% RELIANCE INDUSTRIES LTD NCD121211 - - - -
11.45% RELIANCE INDUSTRIES LTD NCD251113 - - - -

6 Others 115.33 115.33 7% 2,123.80 2,123.80 19% 2,972,488.63 2,972,488.63 55% 294,199.81 294,199.81 57%
(less than
10%)
Total 1,628 1,628 100% 11,430 11,430 100% 5,431,405 5,431,405 100% 520,421 520,421 100%
8/19/2009, 12:31 PM
3 MNYL 2.p65
1 AXIS BANK LTD 1,659.80 5,238.74

HOUSING DEVELOPMENT FINANCE CORP BANK 2,579.51 9,330.04
247
ICICI BANK LTD 2,013.44 5,163.39
JAMMU & KASHMIR BANK LTD 787.00 912.92
PUNJAB NATIONAL BANK 2,468.70 2,057.25
STATE BANK OF INDIA 1,601.72 5,148.76
AXIS BANK CD 20JUL2009 - 970.19
BANK OF BARODA CD 11AUG2009 868.04 5,883.37
ICICI BANK CD 5JAN2010 - -
JAMMU & KASHMIR BANK CD 2DEC2009 - -
PUNJAB NATIONAL BANK CD 29JUL2009 1,355.09 1,935.85
ST BK OF BIKANER & JAIPUR CD 17NOV2009 - -
ST BK OF BIKANER & JAIPUR CD 28SEP2009 - -
STATE BANK OF INDORE CD 28APR2009 - 1,985.77
Max India Limited

STATE OF TRAVANCORE CD 24NOV2009 - -

BANK OF BARODA LTD 234.35 843.66
FEDERAL BANK LTD - 330.96
ORIENTAL BANK OF COMMERCE - 506.46
UNION BANK OF INDIA LTD 22.03 411.18
Banking VIJAYA BANK LTD - 13,589.68 22% - 40,718.55 15%
services STATE BANK OF INDIA STEP CPN 12SEP2021 - -
PUNJAB NATIONAL BANK CD 5NOV2009 - -
KARNATAKA BANK CD 29MAY2009 - -
ORIENTAL BANK OF COMMERCE CD 8SEP2009 - -
PUNJAB NATIONAL BANK 10.4%PERP 20JUL2017 - -
BANK OF INDIA - -
FEDERAL BANK CD 1DEC2009 - -
FEDERAL BANK CD 31DEC2009 - -
KOTAK MAHINDRA BANK CD 22SEP2009 - -

STATE BANK OF BIKANER AND JAIPUR CD 0202 - -
UCO BANK CD 19-MAR-10 - -
STATE BANK OF INDIA STEP CPN 12SEP2022 - -
BANK OF INDIA CD 23-MAR-10 - -
8/19/2009, 12:31 PM
FIX YES BANK LTD, MUMBAI 366D 8.9% 30DEC09 - -
FIX ICICI BANK LIMITED, NEW DELHI 999D 10.35% 22FEB12 - -
FIX UTIBINBA 366D 9.2% 27DEC09 - -
FIX ICICI BANK LIMITED, NEW DELHI 999D 9.25% 18OCT09 - -
FIX ICICI BANK LIMITED, NEW DELHI 999D 9.25% 19OCT09 - -
FIX YESBINMU 366D 11% 13DEC09 - -
2 INDIAN RAILWAY FIN CORP 8.75% 07JAN2013 - -
11.25% PFC NCD 28-NOV-2018 - 10,166.19
11% IDFC LTD 21-JUL-2010 - 2,073.70
11% POWER FINANCE CORPORATION 15SEP18 - -
INDIAN RAILWAY FIN CORP 8.69% 07JAN2011 - 5,081.05
9.22%POWER FINANCE CORP(28-DEC-2012) - -
INFRA DEV FINANCE CO LTD 10% 22MAY2012 - -
INDIAN RAILWAY FIN CORP 9.43% 23MAY2018 - -
3 MNYL 2.p65
INDIAN RAILWAY FINANCE CO 9.68% 3JUL2012 - -
POWER FINANCE CORP 7% 24DEC2011-SER 22 - -
248
9.3%PFC MD:12-MAR-2011 - -
9.79% IDFC 11-SEP-09 - -
Financial 11.40% PFC 28-NOV-2013 - -
institutions INDIAN RAILWAY FIN CORP 8.83% 29OCT2012 - - 0% - 17,320.94 6%
INFRA DEV FINANCE CO LTD 8.6% 24NOV2011 - -
POWER FINANCE CORP LTD 9.8% 20SEP2012 - -
8.94% PFC 15JAN2013 - -
9.4% PFC 25-MAR-2013 - -
3 INDIA TREASURY BILLS 364 DAYS(25-SEP-09) 1,153.20 2,272.59 4% 3,363.50 14,570.67 5%
INDIA, GOVERNMENT OF 11.5% 15MAY2009 - -
INDIA, GOVERNMENT OF 6.65% 5APR2009 863.17 1,500.29
INDIA, GOVERNMENT OF 7.27% 3SEP2013 256.23 -
Max India Limited


INDIA, GOVERNMENT OF 8.33% 7JUN2036 - -
INDIA, GOVT OF 7.49% 16APR2017 - -
INDIA, GOVT OF 7.99% 9JUL2017 - -

5.48% GOI 2009 (MD 12/06/2009) - 4,701.88
7.46% GOI 28AUG2017 - -
7.95% GOI 28AUG2032 - -
7.95% INDIA GOVERNMENT 18-FEB-2026 - 5,005.00
8.24% GOI 22APR2018 - -
Government INDIA, GOVERNMENT OF 11.5% 11JUN2010 -
INDIA, GOVERNMENT OF 11.83% 12 NOV 2014 - -
6.05% GOI 02-FEB-19 - -
INDIA, GOVERNMENT OF 7.38% 3SEP2015 - -
7.56% GOI 03NOV2014 - -
INDIA, GOVERNMENT OF 9.4% 11SEP2012 - -
7.59% GOI 12APR2016 - -

8.35% GOI 14MAY2022 - -
INDIA TREASURY BILLS 364 DAYS 20NOV09 - -
INDIA, GOVT OF 8.2% 15FEB2022 SPB - -
8/19/2009, 12:31 PM
6.83% GOI 19JAN2039 - -
8.24% INDIA GOVERNMENT 15/02/2027 - -
INDIA, GOVERNMENT OF 7.37% 16APR2014 - -
6.72% GOI 24-FEB-14 - -
4 HDFC LTD 9.1% 19MAY2009 - -
LIC HOUSING FINANCE LTD 9.15% 22OCT2010 - 4,070.34
HDFC LTD 8.55% 1DEC2009 - -
HOUSING DEV FIN CORP 9.7% 19JUL2017 - -
HOUSING DEV FINANCE CORP 10.1% 13SEP2017 - -
11.15% HDFC NCD 06-AUG-18 4,482.83 4,482.83
HOUSING DEV FINANCE CORP 10.35% 6JUN2017 - -
HOUSING DEVELOPMENT FINANCE 8.5% 29AUG09 - 2,002.08
11.65% HDFC LTD 09-SEP-2010 - 5,244.76
11.95% HDFC LTD 26-NOV-2018 - 23,462.02
3 MNYL 2.p65
POWER FINANCE CORP 8.49% 9OCT2011 - -

9.5% HDFC MD:28-FEB-2013 - -
249
HOUSING DEVELOPMENT FINANCE 0% 12MAR2010 - -
11.25% HDFC LTD (04-SEP-2018) - -
Housing 9.5% HDFC MD:27-FEB-2013 - 4,482.83 7% - 39,262.02 14%
finance HOUSING DEV FIN CORP 9.25% 26DEC09 - -
services HOUSING DEV FIN CORP 9.32% 17DEC2012 - -
HOUSING DEV FINANCE CORP 10.25% 29MAY12 - -
HOUSING DEV FINANCE CORP 6.95% 13DEC2009 - -
HOUSING DEV FINANCE CORP 8.95% 29OCT2010 - -
LIC HOUSING FINANCE LTD 9.35% 23NOV2014 - -
9.90% HDFC LTD NCD (23-DEC-2018) - -
LIC HOUSING FINANCE LTD - -
5 RELIANCE INDUSTRIES LTD 5,313.75 17,610.86
Max India Limited

Petroleum RELIANCE PETROLEUM LTD 784.58 6,098.33 10% 1,198.26 18,809.12 7%

products 10.75% RELIANCE IND LTD NCD 08-DEC-2018 - -
(Refineries) 10.10% RELIANCE INDUSTRIES LTD NCD121211 - -
11.45% RELIANCE INDUSTRIES LTD NCD251113 - -
HINDUSTAN PETROLEUM CORP LTD - -
6 Others 36,608.45 36,608.45 58% 142,419.02 142,419.02 52%
(less than
10%)
Total 63,052 63,052 100% 273,100 273,100 100%
8/19/2009, 12:31 PM
(aa) Additional information in respect of Provisions in Schedule 14 pursuant to Accounting Standard-29 issued by ICAI
Nature of Obligation As at Additions made Paid/written As at
March 31, 2008 during the year back/ used March 31, 2009
during the year
Provision for Gratuity 7,385 47,750 29,759 25,376
Provision for Fringe Benefit Tax 1,285 80,161 81,389 57
Provision for non compensated leaves 500 614 - 1,114
Provision for Wealth tax 372 523 484 411
Total 9,542 129,048 111,632 26,958
(ab) Additional information related to expenses incurred under following activities included under respective heads in Schedule-3:
Heads Year Ended Year Ended
March 31, 2009 March 31, 2008
Outsourcing Expenses 844,290 298,140
Business Development 3,450 3,467
Marketing Support 2,096 266
(ac) Additional information on Remuneration

Information under section 217(2A) of the Companies Act, 1956 read with Companies (employees) rules, 1975, as amended, are
annexed in the Director’s Report.
(ad) Comparatives
Previous year figures, under following heads, have been re-classified wherever necessary and significant, to conform to current
year’s presentation.
Previous year Schedule number/ Line Item Amount Reclassed Current year Schedule number/ Line Item
Schedule-6 Reserves and Surplus
- Employee Share Based Payment Plan Outstanding 74,750 Balance Sheet
- Employee Stock Option Plan Outstanding
Profit and Loss account - Miscellaneous Income 152,138 Schedule 3 -Interest and Bank Charges and
Schedule-UL1 -Linked Income (recovered from
linked funds) -Fund Management charge
Schedule 3- Investment related expenses 152,138 Schedule 3 -Interest and Bank Charges
Schedule 14- Provision for doubtful debts 15,708 Schedule 12 -Advances and Other Assets
Signatures to Schedules 1 to 16 For and on behalf of the Board of Directors
ANALJIT SINGH Chairman

JOHN HARRISON Director
RICHARD MUCCI Director
RAJESH SUD Managing Director & Chief Executive Officer
RAJIT MEHTA Chief Operating and Principal Officer
JOHN POOLE Chief Actuary (Appointed Actuary)
Gurgaon AJAY SETH Sr. Director -Legal & Compliance &
MAY 27, 2009 Company Secretary
3 MNYL 2.p65 250 8/19/2009, 12:31 PM

Management Report
With respect to the operations of the Company for the financial year April 1, 2008 to March 31, 2009 and results thereof, the Management
of the Company confirms, certifies and declares:
1. The Company is doing business on the basis of certificate of registration granted and duly renewed by IRDA.
2. The Company has duly paid all dues payable to the statutory authorities.
3. There has been no change in the Indian and Foreign shareholding pattern of the Company and the same are in conformity with the
statutory or regulatory requirements for the same.
4. The Company has not directly or indirectly invested outside India the funds of the holders of policies issued in India.
5. The Company is maintaining the required solvency margins as undertaken to the Insurance Regulatory and Development Authority.
6. The Company certifies that the values of all the assets have been reviewed on the date of the Balance Sheet and that the assets set
forth in the Balance Sheet are shown in the aggregate at amounts not exceeding their realisable or market value under the several
headings - “Loans”, “Investments (wherever applicable)”, “Agents’ balances”, “Outstanding Premiums”, “Interest, Dividends and
Rents outstanding”, “Interest, Dividends and Rents accruing but not due”, “Amounts due from other persons or Bodies carrying on
insurance business”, “Sundry Debtors”, “Bills Receivable”, “Cash” and the several items specified under “Other Accounts”.
7. No part of the life insurance fund has been directly or indirectly applied in contravention of the provisions of the Insurance Act,
1938 (4 of 1938) relating to the application and investment of the life insurance funds.
8. The Company recognises the risks associated with the life insurance business and manages it by adopting prudent policies
commensurate with the needs of the life insurance business. The key risks affecting the operations of the Company are underwriting
risks and investment risks.
The underwriting risk is managed by the robust underwriting function and by further establishing reinsurance treaties with various
reinsurance companies. All risks, which are above the pre-determined retention limits are automatically reinsured.
The investment risk is managed by creating a portfolio of different asset classes and of varied maturities so as to spread the risk
across a wide category of investee companies. The Company has constituted an Investment Committee, which acts as the policy
making body for the investment operations. The Investment Committee lays down various internal policies and norms governing
the functioning of the Investment Department. The Investment Committee periodically discusses the investment strategy, portfolio
structures, performance of the portfolio and related issues. The investment policy is reviewed regularly in order to align the same
with the Company’s business plans.
9. The Company does not have operations in any other country other than India.
10. Average claim settlement time for last five years along with ageing of outstanding claims as at balance sheet date is disclosed
below.
2008-09 2007-08 2006-07 2005-06 2004-05
Average Claim Settlement time (in days) 5 9 14 16 11
Details regarding Claims registered and not settled (Rs. in lakhs)
Linked Business Traditional Business Total
Period No. of claims Amounts No. of claims Amount No. of claims Amount
30 Days 51 103 52 110 103 213
30 Days to 6 months - - - - - -
6 months to 1 year - - - - - -
1 year to 5 years - - - - - -
5 years & above - - - - - -
Grand Total 51 103 52 110 103 213
11. The value of investments as shown in Balance Sheet have been arrived as follows :
(i) Valuation - shareholders’ investments and non-linked policyholders’ investments have been ascertained on the basis of
quotes received from market participants. Debt securities, which include government securities, are considered as held to
maturity’ and measured at historical cost subject to amortisation.
Listed equity shares, as at balance sheet date, are valued at fair value, being the last quoted closing price on the National
Stock Exchange (NSE) and in case the same is not available, then on the Stock Exchange, Mumbai (BSE). Equity shares,
awaiting listing, are valued at historical cost subject to provision for diminution. Investments in Mutual fund units are valued
at fair value as at balance sheet date.
3 MNYL 2.p65 251 8/19/2009, 12:31 PM

Management Report
(ii)
Valuation - linked investments
In case of Linked business - Government securities are valued at the rate obtained from CRISIL (Credit Rating Information
Services of India Ltd.). Debt securities other than Government Securities are valued on the basis of Bond Valuer (CRISIL).
Listed equity shares are valued at fair value, being the last quoted closing price on NSE and in case the same is not available,
then on the BSE. Mutual fund units are taken at the previous day’s net asset values.
12. The Company has invested its controlled funds only in rated securities, primarily in Central Government, Treasury Bills and securities
and highly rated bonds/mutual funds. All Investments in Debt securities are made with the clear intent of being held to maturity.
Accordingly, the Management is confident of the quality of the investments.
13. The financial statements of Max New York Life Insurance Company Limited and all information in this annual report are the
responsibility of the Management and have been reviewed by the Audit Committee and approved by the Board of Directors.
(a) The financial statements have been prepared in accordance with generally accepted accounting standards and principles and
policies have been followed with no material departures.
(b) The financial statements have been prepared in accordance with the accounting policies adopted by the Management and
stated therein and the same have been followed consistently. These financial statements contain some items which reflect
the best estimates and judgment of the Management.
When alternative accounting methods exist, Management has chosen those it deems most appropriate in the circumstances
to ensure the financial statements are presented fairly, in all material respects. The choice of estimates and judgment have
been made are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at the end
of the financial year and the operating loss of the Company for the year.
(c) The Management of the Company has taken proper and sufficient care for the maintenance of adequate accounting records
in accordance with the applicable provisions of the Insurance Act 1938 (4 of 1938) and Companies Act 1956 (1 of 1956), for
safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities.
(d) The financial statements have been prepared on a going concern basis.
(e) The Company has set up an internal audit system commensurate with the size and nature of the business and the same is
operating effectively.
14. Schedule of payments, which have been made to the individuals, firms, companies and organisations in which Directors are
interested.
S.No. Name of the Director Entity in which Interested as Amount of Amount of
Director is interested payment during payment during
the year 2008-09 the year 2007-08
(Rs. in lakh) (Rs. in lakh)
1 Analjit Singh Max Healthcare Institute Limited Chairman 0.22 5.18
Max India Foundation Relative of interested Party 249.88 -
New Delhi House Services Ltd Relative of interested Party 46.38 32.24
Max India Limited Chairman & Managing Director 11.80 17.09
Pharmax Corporation Limited Relative of interested Party 212.10 116.48
2 John Harrison New york Life International , LLC Director 199.62 76.68
3 Richard L. Mucci New york Life International , LLC Director 199.62 76.68
ANALJIT SINGH Chairman
JOHN HARRISON Director
RICHARD MUCCI Director
RAJESH SUD Managing Director & Chief Executive Officer
RAJIT MEHTA Chief Operating and Principal Officer
JOHN POOLE Chief Actuary (Appointed Actuary)
Gurgaon SUNIL KAKAR Chief Financial Officer
MAY 27, 2009 AJAY SETH Sr. Director -Legal & Compliance & Company Secretary
3 MNYL 2.p65 252 8/19/2009, 12:31 PM

Balance Sheet Abstract and company’s business profile

Registration No. 1 0 6 7 2 3 State Code 5 5
Date Month Year
N I L N I L
Bonus Issue Others
N I L 7 5 0 0 0 0 0
6 7 9 3 5 4 2 8 6 7 9 3 5 4 2 8
Sources of Funds Application of Funds
Paid-up Capital Net Fixed Assets
1 7 8 2 4 3 2 6 3 2 4 8 7 3 3
Reserves & Surplus Investments
7 9 9 4 1 5 5 6 1 4 3 5 1
Secured Loans Net Current Assets
N I L – 9 8 0 6 1 8
Unsecured Loans Misc. Expenditure
N I L 2 5 4 1 7
Policyholders Funds Accumulated Losses
4 9 8 5 3 8 5 1 1 0 0 2 7 5 4 5
Others*
1 7 7 3 1 0

Total Income Total Expenditure
3 6 3 5 5 1 4 6 4 0 5 0 7 1 1 6
Profit/(Loss) before tax Profit/(Loss) after tax
- 4 1 9 4 2 1 9 - 4 1 9 4 2 1 9
V GENERIC NAME OF THE PRINCIPAL PRODUCT OF THE COMPANY

Product Description L I F E I N S U R A N C E P R O D U C T S
Notes
Since Schedule VI of the Companies Act, 1956 does not apply to a Life Insurance company and in view of the requirement under
Insurance Act, 1938 to split the accounts between policyholders and shareholders funds, it is not possible to give the information
required in Part 3 and 4 of the schedule
*Other Sources of Fund includes Funds for Future Appropriation and Fair Value Change Account.
3 MNYL 2.p65 253 8/19/2009, 12:31 PM

3 MNYL 2.p65 254 8/19/2009, 12:31 PM

MAX HEALTHCARE INSTITUTE LIMITED
Directors’ Report
Your Directors are pleased to present the Eighth Annual Report, • Additional 90 beds at Saket will become operational by April
along with Audited Accounts for the year ended March 31, 2009. 2010.
PERFORMANCE 2008-09 • The 100 bed Max Hospital at Dehradun will become
operational by first quarter of 2011.
The financial highlights for 2008-09 are furnished below:
• MHC has acquired land in north-west Delhi and Greater Noida
• Income from healthcare services increased by 21% from
for setting up 300-bed hospitals
Rs.221 crore in 2007-08 to Rs.267 crore in 2008-09
• MHC has been allotted land by Government of Punjab under
• Operating profits or profit before depreciation, interest and
a public-private partnership arrangement to set up 200 beds
tax (PBDIT) increased by 56% from Rs.44 crore in 2007-08 to
each, super specialty hospitals at Bathinda and Mohali.
Rs.69 crore in 2008-09
EXCELLENCE IN PATIENT CARE
• Profit before tax (PBT) increased over nine times to Rs.32
crore in 2008-09, over 2007-08 At the core of all MHC's operations is the concept of 'Patient
Centered Care'. This has been executed primarily by a rigorous
• Profit after tax (PAT) was Rs.48 crore in 2008-09, against a
implementation of the 'Medical & Service Excellence Model'.
net loss of Rs.4 crore in 2007-08
The organization has processes laid down to meet customer
The highlights of Max Healthcare (MHC) operations, along with its
expectations as per ISO standards. Various CTQs (Critical to Quality)
network of hospitals, in 2008-09 are given below:
steps from each process have been identified and these are regularly
• MHC has performed over 450 open heart surgeries, 2,000 monitored. For quality improvement, MHC has adopted Six Sigma.
angioplasties and 4,130 angiographies. In addition, MHC It has also adopted DMAIC and Lean methodology. A systematic
performed over 2,150 ortho-surgeries, 870 neuro-surgeries data driven approach is used to reduce variation in process
and 15,390 other surgeries and procedures outcomes, eliminate non value added activities, and to optimize
process deliverables.
• The average number of operational beds increased to 712
in 2008-09 from 662 in 2007-08. Average occupancy rate There is a comprehensive performance measurement system for
at MHC hospitals was 65% key processes that include medical and services related activities.
The system named 'SPARSH' has 90 key performance indicators
• Number of patient episodes (measured by number of invoices
that are tracked uniformly across all hospitals. These are regularly
issued to a patient during any period) increased to over 1.9
reviewed against preset targets to see the performance trend and
million in 2008-09 from 1.6 million in 2007-08. In the last
identify opportunities for improvement. Apart from this, a Medical
quarter of 2008-09, MHC averaged around 165,000 patient
Quality Dashboard has been introduced to monitor adverse events
episodes per month.
and clinical outcomes.
MHC, along with its network of hospitals, is working on
EXCELLENCE IN TRAINING, EDUCATION AND RESEARCH
increasing its capacity to around 1,800 beds by 2011. With
the first phase of roll-out already completed, the second phase MHC has achieved distinction in training, education and clinical
of expansion is progressing as per plan. During this phase, research.
MHC plans to not only expand further in the NCR region but
• On education, Max Healthcare has established several Post
also widen its operations beyond the NCR of Delhi to other
Graduate/Under Graduate education programmes. Some of
parts of India. Some facts about the progress of the entire
these are:
expansions are:
• Post Graduate Programs (Diplomate National Board) in
• The new wing of the Max Balaji Hospital with 260 beds (at
Cardiology, Cardiac Surgery, Cardiac Anesthesia,
Patparganj, East Delhi) is expected to start operations by
Interventional Cardiology, Internal Medicine, Radiology and
October 2009
Pathology
• The comprehensive oncology care is to start at Saket by
• Post Graduate Diploma in Clinical Cardiology (IGNOU)
September 2009.
4 Healthcare.p65 257 8/19/2009, 12:31 PM

Directors’ Report
• Fellowship in Emergency Medicine in Collaboration with Dr. Pervez Ahmed was appointed as the Managing Director of the
George Washington University, USA Company effective February 1, 2009. Mr. Analjit Singh was re-
designated as the Chairman of the Company effective January 28,
• Post Graduate Diploma in Critical Care Medicine under aegis
2009.
of Indian Society of Critical Care Medicine, Fellowship in
Critical Care Dr. Ashok Seth and Mr. Aman Mehta resigned from the Board of
Directors of the Company effective July 31, 2008 and December
• Max Healthcare is an American Heart Association (AHA)
12, 2008, respectively. The Board places on record, its appreciation
recognized centre for Advanced Cardiac Life Support Training,
for the valuable contribution made by Dr. Ashok Seth and Mr. Aman
Basic Cardiac Life Support Training, Pediatric Life Support,
Mehta during their association with the Company.
First aid and Airway Management.
AUDIT COMMITTEE
• BSc in Emergency Trauma Care and Technology, under a MoU
with Hamdard University, New Delhi. During the year under review, the Audit Committee of your Company
was reconstituted and the Committee currently comprises of Mr.
• Residency Exchange Program with Mount Sinai Medical
K.K. Mathur (Chairman), Mr. Leo Puri and Dr. Pervez Ahmed. The
School, USA
role and terms of reference of the Audit Committee covers the
• Several short courses /Fellowships to provide exposure to areas mentioned under Section 292A of the Companies Act, 1956
physicians in periphery to super-speciality areas like besides other terms, as may be referred to it by the Board of Directors
neuroradiology, spine surgery, cardiology, neonatology and of the Company.
laparoscopic surgery
REMUNERATION COMMITTEE
• Simulation Based Trainings have been introduced this year
During the year under review, the Remuneration Committee was
• Post Graduate Diploma in Neuro Nursing. reconstituted and the Committee currently comprises of Mr. Analjit
Singh (Chairman), Mr.K.K. Mathur, Mr. Leo Puri and Dr. R.P.
On training, there were around 100 doctors/paramedics/nurses
Soonawala. This Committee has the mandate for finalizing the terms
undergoing formal education programs in 2008-09.
of compensation for the Executive Directors and Senior Executives
On research, several Clinical Trials are underway. The organization of the Company and to administer the Employee Stock Option Plan–
has recently established a Stem Cell Research Committee, and is 2006 of the Company.
exploring this new exciting area of research.
EMPLOYEE STOCK PLAN - 2006
DIVIDEND
In order to attract and retain talented key employees and induce
Healthcare is a long gestation business. In view of the Company's them to remain with the Company, and encourage them to
carried forward losses, your Directors are unable to recommend increase their efforts to make the Company’s business more
any dividend for the year under review successful, your Company implemented Employee stock option
plan in 2006. During the year under review, the Company granted
DIRECTORS
5,35,000 Stock Options to an Employee of the Company. As of
In accordance with the provisions of the Companies Act, 1956 and March 31, 2009, 9,05,000 stock options are outstanding under
the Company’s Articles of Association, Mr. Anuroop Singh, Mr. the Employees Stock Plan.
Analjit Singh and Dr. R.P. Soonawala are due to retire by rotation
ALLOTMENT OF SHARES ON EXERCISE OF EMPLOYEE STOCK
and are eligible for re-appointment.
OPTIONS
Dr. Ajit Singh and Dr. Pervez Ahmed were appointed as Additional
During the year under review, your Company allotted 50,000 Equity
Directors effective January 28 and February 1, 2009, respectively
shares arising from exercise of Stock Options by an eligible
to hold office up to the ensuing Annual General Meeting. The
employee. With this, the paid-up capital of the Company stood
Company has received notices under Section 257 of the Companies
increased to Rs. 487.14 Crores as of March 31, 2009.
Act, 1956, from members proposing their candidature for being
appointed as Directors of the Company.
4 Healthcare.p65 258 8/19/2009, 12:31 PM

Directors’ Report
DIRECTOR’S RESPONSIBILITY STATEMENT d. FOREIGN EXCHANGE EARNINGS AND OUTGO
In terms of provisions of Section 217(2AA) of the Companies Act, Activities relating to exports, initiatives taken to
1956, your Directors confirms that: increase exports, develop new export markets,
export plan, etc. : NA
accounting standards have been followed, along with proper (Rs. in crore)
explanation relating to material departures. For the For the
(ii) The Directors had selected such accounting policies and applied year ended year ended
them consistently and made judgments and estimates that March 31, 2009 March 31, 2008
are reasonable and prudent, so as to give a true and fair view i) Foreign Exchange Earnings 0.62 0.66
of the state of affairs of the Company at the end of the ii) Foreign Exchange Outgo
financial year and of the profit or loss of the Company for CIF Value of Imports
that period. - Capital Goods 0.64 2.99
- Trading Goods - -
(iii) The Directors had taken proper and sufficient care for the Others 1.00 1.64 0.67 3.66
with the provisions of the Companies Act, 1956 for HUMAN CAPITAL
safeguarding the assets of the Company and for preventing The Company continues to attract eminent physicians from the
and detecting fraud and other irregularities. NCR of Delhi as well as from abroad. As on 31 March 2009, MHC
(iv) The Directors had prepared the annual accounts on a going had a base of around 1,200 physicians, including several doctors of
concern basis. international repute, 1,600 nurses, 350 paramedic staff and 1,120
other support staff.
The particulars of employees as required under Section 217 (2A) of
Information in accordance with the provisions of Section 217 (1)(e) the Companies Act, 1956 are given in a separate annexure to this
of the Companies Act, 1956 read with the Companies (Disclosure report. This Annexure is not being sent along with this Report to
of Particulars in the Report of Board of Directors) Rules, 1988, are the members of the Company in line with the provisions of Section
furnished hereunder: 219 (b) (iv) of the Companies Act. Members who are interested in
a. CONSERVATION OF ENERGY: obtaining these particulars may write to the Company Secretary at
the Registered Office of the Company. None of the employees listed
The Company has taken measures to reduce the energy in the said Annexure is a relative of any Director of the Company.
consumption, by using energy efficient equipment, None of the employees hold (by himself or along with his spouse
incorporating latest technology and regular and dependent children) more than 2% of the equity shares of the
maintenance. Company.
b. RESEARCH AND DEVELOPMENT (R&D) : Nil SUBSIDIARY COMPANIES
c. TECHNOLOGY ABSORPTION: Statement pursuant to Section 212 of the Companies Act, 1956,
- Specific areas in which R & D was carried relating to subsidiaries of the Company as of March 31, 2009 are
out by the Company : Nil annexed to this Report as Annexure–A.
- Benefit derived as a result of above : NA PARTICULARS OF DEPOSITS
- Future plan of action : NA Your Company has not accepted any deposits from the public during
the year under review.
- Expenditure on R & D : NA
4 Healthcare.p65 259 8/19/2009, 12:31 PM

Directors’ Report
AUDITORS institutions and shareholders for their support and confidence in
the Company. Your Directors also place on record their sincere
M/s Price Waterhouse, Chartered Accountants, the Statutory
gratitude to Singapore General Hospital for their cooperation and
Auditors of the Company, retires at the conclusion of the ensuing
guidance.
Annual General Meeting and is eligible for re-appointment. The
Company has received from them a certificate to the effect, that
their re-appointment, if made, will be in conformity with the limits
specified under Section 224 (1B) of the Companies Act, 1956. On Behalf of the Board of Directors
ACKNOWLEDGEMENTS
Your Directors place on record their appreciation to all the New Delhi Analjit Singh
employees of the Company, valued customers, bankers, financial JULY 29, 2009 Chairman
4 Healthcare.p65 260 8/19/2009, 12:31 PM

4 Healthcare.p65
Annexure - ‘A’
STATEMENT REGARDING SUBSIDARY COMPANIES PURSUANT TO SECTION 212(3) AND 212(5) OF THE COMPANIES ACT, 1956
Name of the Subsidary Company Financial Year Holding Companie’s interest at the Net Aggregate amount of Net Aggregate amount Holding Company’s
to which close of Financial year of Subsidary Company’s profits of Subsidary Company’s Interest as at
Accounts Subsidary Company after deducting, its losses or vice- profits after deducting, 31.03.2009
relate versa, so far as it concerns its losses or vice-versa, incorporating
Members of Holding Company so far as it concerns changes since
which are not dealt within Members of Holding close of financial
261
the Company’s Account Company which are dealt year/period of
within the Subsidary
Company’s Account Company
(i) Shareholding (ii) Extent of For the For the For the For the
Holding Current Previous Current Previous
Financial Financial Financial Financial
Year Year Year Year
Max Medical Services Ltd 31.03.2009 141,42,535 100% 249.97 106.30 NIL NIL 100%
Max India Limited

Equity Shares of
Rs. 10 each
Alps Hospital Limited # 31.03.2009 50,000 100% (568.93) (636.81) NIL NIL 100%
Equity Share of
Rs. 10 each
# holding through subsidary Max Medical Services Limited
Figures in brackets indicate loss.


JULY 29, 2009 Chairman
8/19/2009, 12:31 PM
Auditors’ Report
TO THE MEMBERS OF MAX HEALTHCARE INSTITUTE LIMITED of fixed assets have not been disposed of by the
company during the year.
1. We have audited the attached Balance Sheet of Max
Healthcare Institute Limited, as at March 31, 2009, and the ii. (a) The inventory has been physically verified by the
related Profit and Loss Account and Cash Flow Statement for management during the year. In our opinion, the
the year ended on that date annexed thereto, which we have frequency of verification is reasonable.
signed under reference to this report. These financial
(b) In our opinion, the procedures of physical
statements are the responsibility of the company’s
verification of inventory followed by the
management. Our responsibility is to express an opinion on
management are reasonable and adequate in
these financial statements based on our audit.
relation to the size of the company and the nature
2. We conducted our audit in accordance with the auditing of its business.
standards generally accepted in India. Those Standards require
(c) On the basis of our examination of the inventory
that we plan and perform the audit to obtain reasonable
records, in our opinion, the company is
assurance about whether the financial statements are free of
maintaining proper records of inventory. The
material misstatement. An audit includes examining, on a
discrepancies noticed on physical verification of
test basis, evidence supporting the amounts and disclosures
inventory as compared to book records were not
in the financial statements. An audit also includes assessing
material.
the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial iii. (a) The company has not granted any loans, secured
statement presentation. We believe that our audit provides a or unsecured, to companies, firms or other parties
reasonable basis for our opinion. covered in the register maintained under Section
301 of the Act.
3. As required by the Companies (Auditor’s Report) Order, 2003,
as amended by the Companies (Auditor’s Report) (Amendment) (b) The company has not taken any loans, secured or
Order, 2004, issued by the Central Government of India in unsecured, from companies, firms or other parties
terms of sub-section (4A) of Section 227 of ‘The Companies covered in the register maintained under Section
Act, 1956’ of India (the ‘Act’) and on the basis of such checks 301 of the Act.
of the books and records of the company as we considered
iv. In our opinion and according to the information and
appropriate and according to the information and
explanations given to us, having regard to the
explanations given to us, we further report that:
explanation that certain items purchased are of special
i. (a) The company is maintaining proper records nature for which suitable alternative sources do not exist
showing full particulars including quantitative for obtaining comparative quotations, there is an
details and situation of fixed assets. adequate internal control system commensurate with
the size of the company and the nature of its business
(b) The fixed assets are physically verified by the
for the purchase of fixed assets and for the sale of goods
management according to a phased programme
and services. Further, on the basis of our examination
designed to cover all the items over a period of
of the books and records of the company, and according
three years, which in our opinion, is reasonable
to the information and explanations given to us, we
having regard to the size of the company and the
have neither come across nor have been informed of
nature of its assets. Pursuant to the programme,
any continuing failure to correct major weaknesses in
a portion of the fixed assets has been physically
the aforesaid internal control system.
verified by the management during the year and
no material discrepancies between the book v. In our opinion and according to the information and
records and the physical count have been noticed. explanations given to us, the Company has not entered
into any contracts or arrangements referred to in Section
(c) In our opinion and according to the information
301 of the Act.
and explanations given to us, a substantial part
4 Healthcare.p65 262 8/19/2009, 12:31 PM

Auditors’ Report
vi. The company has not accepted any deposits from the investments during the year and timely entries have been
public within the meaning of Sections 58A and 58AA made therein. Further, such securities have been held
of the Act and the rules framed there under. by the company in its own name.
vii. In our opinion, the company has an internal audit system xv. In our opinion, and according to the information and
commensurate with its size and nature of its business. explanations given to us, the company has given
guarantee for loans taken by other healthcare services
viii. The Central Government of India has not prescribed the
provider. However, this is not considered prejudicial by
maintenance of cost records under clause (d) of sub-
the company to its interests.
section (1) of Section 209 of the Act for any of the
products of the company. xvi. In our opinion, and according to the information and
explanations given to us, on an overall basis, the term
ix. (a) According to the information and explanations
loans have been applied for the purposes for which they
given to us and the records of the company
were obtained.
examined by us, in our opinion, the company is
generally regular in depositing the undisputed xvii. On the basis of an overall examination of the balance
statutory dues including provident fund, investor sheet of the company, in our opinion and according to
education and protection fund, income-tax, sales- the information and explanations given to us, there are
tax, wealth tax, service tax, customs duty, excise no funds raised on a short-term basis which have been
duty, cess and other material statutory dues as used for long-term investment.
applicable with the appropriate authorities.
xviii. The company has not made any preferential allotment
(b) According to the information and explanations of shares to parties and companies covered in the
given to us and the records of the company register maintained under Section 301 of the Act during
examined by us, there are no dues of income-tax, the year.
sales tax, wealth tax, service tax, customs duty,
xix. The company has not issued any debentures during the
excise duty and cess which have not been
year.
deposited on account of any dispute.
xx. The company has not raised any money by public issues
x. The company has accumulated losses, as at March 31,
during the year.
2009. It has not incurred cash losses during the current
financial year ended on that date or in the immediately xxi. During the course of our examination of the books and
preceding financial year. records of the company, carried out in accordance with
the generally accepted auditing practices in India, and
xi. According to the records of the company examined by
according to the information and explanations given to
us and the information and explanation given to us,
us, we have neither come across any instance of fraud
the company has not defaulted in repayment of dues to
on or by the company, noticed or reported during the
any financial institution or bank as at the balance sheet
year, nor have we been informed of such case by the
date.
management.
xii. The company has not granted any loans and advances
4. Further to our comments in paragraph 3 above, we report
that:
debentures and other securities.
(a) We have obtained all the information and explanations,
xiii. The provisions of any special statute applicable to chit
which to the best of our knowledge and belief were
fund / nidhi / mutual benefit fund/societies are not
necessary for the purposes of our audit;
applicable to the company.
(b) In our opinion, proper books of account as required by
xiv. In our opinion, the company has maintained proper
law have been kept by the company so far as appears
records of transactions and contracts relating to dealing
from our examination of those books;
or trading in shares, securities, debentures and other
4 Healthcare.p65 263 8/19/2009, 12:31 PM

Auditors’ Report
(c) The Balance Sheet, Profit and Loss Account and Cash view in conformity with the accounting principles
Flow Statement dealt with by this report are in generally accepted in India:
agreement with the books of account;
(i) in the case of the Balance Sheet, of the state of
(d) In our opinion, the Balance Sheet, Profit and Loss affairs of the company as at March 31, 2009;
(ii) in the case of the Profit and Loss Account, of the
report comply with the accounting standards referred
profit for the year ended on that date; and
to in sub-section (3C) of Section 211 of the Act;
(iii) in the case of the Cash Flow Statement, of the
cash flows for the year ended on that date.
the directors, as on March 31, 2009 and taken on record
by the Board of Directors, none of the directors is
disqualified as on March 31, 2009 from being appointed
as a director in terms of clause (g) of sub-section (1) of
Section 274 of the Act; V.NIJHAWAN
Partner
Membership Number F-87228
according to the explanations given to us, the said
financial statements together with the notes thereon For and on behalf of
and attached thereto give in the prescribed manner the Gurgaon Price Waterhouse
information required by the Act and give a true and fair JUNE 25, 2009 Chartered Accountants
4 Healthcare.p65 264 8/19/2009, 12:31 PM


(RS. LACS)
March 31, 2009 March 31, 2008
SOURCES OF FUNDS
Share Capital 1 48714.45 48709.45
62427.59 62344.80
LOAN FUNDS 3
Secured Loans 23508.60 24315.01
Unsecured Loans 88.95 103.26
23597.55 24418.27
Deferred Tax Liability (Net) 4 - 1638.19
86025.14 88401.26
FIXED ASSETS 5
Gross Block 29613.79 24516.52
Net Block 23401.01 19581.37
24011.98 20760.07
INVESTMENTS 6 10450.06 21250.29
CURRENT ASSETS, LOANS AND ADVANCES 7
Inventories 1055.58 927.48
Sundry Debtors 10983.60 9678.51
Cash and Bank Balances 3202.83 170.24
Other Current Assets 86.21 0.12
Loans and Advances 32062.09 25968.59
47390.31 36744.94
Provisions 9 393.13 345.19
6638.80 5855.82
PROFIT AND LOSS ACCOUNT 10740.57 15501.70
86025.14 88401.26
V. NIJHAWAN DR. PERVEZ AHMED CEO & Managing Director
Partner K.K. MATHUR Director
Membership No. F 87228 ARVIND KAKAR Vice President-Finance
LALJI KUMAR Company Secretary
For and on behalf of
Price Waterhouse
Gurgoan New Delhi
JUNE 25, 2009 JUNE 25, 2009
4 Healthcare.p65 265 8/19/2009, 12:31 PM

(RS. LACS)
March 31, 2009 March 31, 2008
INCOME
Income from Healthcare Services 11 26718.32 22143.78
Other Income 12 5030.19 2863.22
31748.51 25007.00
EXPENDITURE
Medical Supplies Consumed/Traded 13 9008.17 7544.18
Personnel, Operating and Administrative Expenses 14 15876.30 13056.04
28562.49 24660.77
PROFIT BEFORE TAX 3186.02 346.23
Tax Expense 16 (1575.12) 737.24
PROFIT/(LOSS) AFTER TAX 4761.14 (391.01)
(LOSS) BROUGHT FORWARD (15501.71) (15044.18)
Transitional liability recognized pursuant to adoption of
Accounting Standard-15 (Revised) “Employee Benefits” - 66.52
Loss carried forward to the Balance Sheet (10740.57) (15501.71)
Earnings Per Share (Rs. Per equity share of Rs. 10/- each)
(Refer Note C15 on Schedule 17)
- Basic 2.01 (0.17)
- Diluted 1.79 (0.31)
Number of shares used in computing earnings per share:
- Basic 237,106,740 234,163,599
- Diluted 238,577,179 235,758,189
Price Waterhouse
Gurgoan New Delhi
JUNE 25, 2009 JUNE 25, 2009
4 Healthcare.p65 266 8/19/2009, 12:31 PM

(RS. LACS)
March 31, 2009 March 31, 2008
A. CASH FLOW FROM OPERATING ACTIVITIES
Net Profit before Tax 3186.02 346.24
Adjustments for:
Interest Income (2989.11) (2287.49)
Net (Profit)/Loss on Sale of Fixed Assets 6.74 169.13
Net (Profit)/Loss on Sale of Investments (1624.55) (289.40)
Miscellaneous Expenditure Written Off 6.85 0.03
Deferred Revenue Expenditure Written Off - 6.01
Fixed Assets Written off - 47.25
Bad Debts - 2.65
Provision for Bad and Doubtful Debts 208.12 132.69
Liabilities No Longer Required Written Back (155.47) (63.98)
Provision for Gratuity and Leave Encashment 48.46 65.16
Provision for Doubtful Advances 61.47 21.21
TDS on Technical/Service/Other operating income (147.80) (220.71)
Operating Profit Before Working Capital Changes 2210.51 1928.95
Adjustments for:
Trade Receivables (1513.22) (3688.74)
Other Receivables (604.54) (1016.48)
Inventories (128.10) (94.37)
Trade Payables 897.96 452.37
Other Current Assets (86.10) -
Cash Generated From Operations 776.51 (2418.27)
Direct Taxes (Paid)/Refunded (Net) (63.57) (47.89)
Cash From/(Used in) Operating Activities 712.94 (2466.16)
Capital Work in Progress (162.14) 555.93
Increase Pre-operative Expenses - 28.26
Proceeds from Sale of Fixed Assets 45.15 41.76
Proceeds from Sale of Investments 30489.62 44937.35
Purchase of Investments (Others) (18064.84) (63804.00)
Advances to Group Companies (1171.81) (2524.50)
Loan given to other Healthcare Service providers (3131.60) (898.00)
Interest Received (Revenue) 1889.89 1334.08
Cash From/(Used In) Investing Activities 5415.46 (22759.73)
4 Healthcare.p65 267 8/19/2009, 12:31 PM

(RS. LACS)
March 31, 2009 March 31, 2008
Share Capital 5.00 30000.00
Share Issue Expenses - (94.61)
Working Capital Funding (net) 258.89 753.91
Repayment of Bridge Loan - (3000.00)
Proceeds from Short Term Loans - 45.68
Repayment of Short Term Loans (14.30) (49.72)
Interest Paid (2280.11) (2652.71)
Cash From/(Used In) Financing Activities (3095.82) 24563.65
Net Increase/(Decrease) in Cash and Cash Equivalents 3032.59 (662.24)
Cash and Cash Equivalents - Opening Balance 170.24 832.48
Cash and Cash Equivalents - Closing Balance 3202.83 170.24
Net Increase/(Decrease) in Cash and Cash Equivalents 3032.59 (662.24)
Notes:
1 The above Cash Flow statement has been prepared under the “Indirect Method” as set out in the Accounting Standard-3 on Cash
Flow Statements notified u/s 211 (3C) of the Companies Act, 1956.
2 Figures in brackets indicate cash outgo.
3 Cash and Cash Equivalents at the end of the year consist of Cash, Cheques in hand and Balances with Scheduled Banks:
(RS. LACS)
As at As at
March 31, 2009 March 31, 2008
Balance with Scheduled Bank
- In Margin Accounts* 10.25 10.60
- In Deposit Accounts 2500.00 -
- In Current Accounts 571.84 119.43
Total 3202.83 170.24
* Not available for use by the Company since under lien.
Cash Flow Statement
Price Waterhouse
Gurgoan New Delhi
JUNE 25, 2009 JUNE 25, 2009
4 Healthcare.p65 268 8/19/2009, 12:31 PM


(RS. LACS)
As at As at
March 31, 2009 March 31, 2008
SCHEDULE-1
SHARE CAPITAL
AUTHORISED
350,000,000 Equity Shares of Rs. 10/- each 35000.00 35000.00
(Previous year 350,000,000 Equity Shares of Rs. 10/- each)
250,000,000 Cumulative Preference Shares of Rs. 10/- each 25000.00 25000.00
(Previous year 250,000,000 Cumulative Preference Shares of Rs. 10/- each)
60000.00 60000.00
(Refer Notes C4 & C5 on Schedule 17)
237,144,548 Equity Shares of Rs. 10/- each 23714.45 23709.45
250,000,000, 2% Cumulative Convertible Preference Shares of Rs. 10/- each 25000.00 25000.00
(Previous year 250,000,000, 2% Cumulative Convertible Preference Shares of Rs.10/- each)
48714.45 48709.45
Note:
1. As at March 31, 2009, 166,100,000 (Previous year 166,100,000) equity shares are held by
Max India Limited, the holding Company along with its nominees of which 103,779,127
(Previous year 103,779,127) equity shares were issued for consideration other than cash.
2. 50,000 Equity Shares of Rs. 10/- each (Previous Year Nil) allotted under Employee Stock Option Plan
SCHEDULE-2
a) Securities Premium Account

Movement during the year
Additions - 4090.91
Utilisation - 94.61
b) Capital Reserve
Movement during the year - -
c) Employee Stock Option Outstanding
Opening Balance - -
Movement during the year
Additions 77.79 -
Utilisation - -
Closing Balance 77.79 -
13713.14 13635.35
4 Healthcare.p65 269 8/19/2009, 12:31 PM


(RS. LACS)
As at As at
March 31, 2009 March 31, 2008
SCHEDULE-3
LOAN FUNDS
SECURED LOANS
Term Loans from Financial Institutions* 22495.80 23561.10

Fund based Working Capital Facility 1012.80 753.91
23508.60 24315.01
* Amount repayable within one year Rs. 1687.50 Lacs (Previous year Rs.1065.30 Lacs)
UNSECURED LOANS
Other loans from Banks ** 88.95 103.26
88.95 103.26
** Amount repayable within one year Rs. 39.48 Lacs (Previous year Rs. 38.57 Lacs)
SCHEDULE-4
a) Deferred Tax Liability

- Opening Balance 1928.99 1157.85
- Movement during the year
Additions 458.41 866.09
Utilisation (294.51) (94.95)
- Closing Balance 2092.89 1928.99
b) Deferred Tax Asset
- Opening Balance (290.80) (203.97)
- Movement during the year
Additions (1802.09) (103.55)
Utilisation - (16.72)
- Closing Balance (2092.89) (290.80)
Net Deferred Tax Liability - 1638.19
4 Healthcare.p65 270 8/19/2009, 12:31 PM


SCHEDULE-5
FIXED ASSETS
(Refer Notes C2 & C14(B) on Schedule 17) (RS. LACS)
Particulars As at Additions Deletions/ As at As at Additions Deletions/ As at As at As at
April 1, Adjustments March 31, April 1, Adjustments March 31, March 31, March 31,
2008 2009 2008 2009 2009 2008
Tangible Assets
Land 1740.10 4515.70 - 6255.80 - - - - 6255.80 1740.10
Building 6425.79 8.22 - 6434.01 195.13 104.84 - 299.97 6134.04 6230.66
Building (Leasehold 2441.66 29.08 - 2470.74 1316.87 209.22 - 1526.09 944.65 1124.79
Improvement)
Plant and Machinery 2450.94 13.70 - 2464.64 375.61 117.53 - 493.14 1971.50 2075.33
Furniture and Fixture 863.12 16.36 - 879.48 277.43 51.74 - 329.17 550.31 585.69
Office Equipment and 1524.77 150.50 7.54 1667.73 717.17 126.93 6.87 837.23 830.50 807.60
Computers
Medical Equipment 8237.66 398.96 - 8636.62 1780.57 592.09 - 2372.66 6263.96 6457.09
Motor Vehicles 267.39 34.52 65.17 236.74 50.00 22.56 13.95 58.61 178.13 217.39
Intangible Assets
Software 565.09 2.94 - 568.03 222.37 73.54 - 295.91 272.12 342.72
TOTAL 24516.52 5169.98 72.71 29613.79 4935.15 1298.45 20.82 6212.78 23401.01 19581.37
Previous Year 24232.76 729.19 445.44 24516.51 3758.69 1363.76 187.30 4935.15
Capital Work in Progress including Capital Advances Rs. 428.75 Lacs (Previous year Rs. 1158.62 Lacs) 610.97 1178.70
24011.98 20760.07
Notes :
1. Capital Work in Progress includes preoperative expenditure pending allocation Rs Nil (Previous year Rs 0.14 Lacs).
2. Of the above, motor vehicles hypothecated amount to Rs. 129.66 Lacs (Previous year Rs. 176.60 Lacs).
3. Land is under perpetual Lease.
4. Leasehold improvements consists of civil and other improvements at premises taken on long term lease by the Company.
5. Capital Advances includes an amount of Rs. 365.42 Lacs (Previous year Rs Nil) paid to Greater Noida Development Authority as Earnest Money against allotment of a hospital
plot in Greater Noida (UP).
(RS. LACS)
As at As at
March 31, 2009 March 31, 2008
SCHEDULE-6
INVESTMENTS (Non Trade)
a) Subsidiary, at cost
(Unquoted)
Equity Shares
Max Medical Services Limited
14,142,535 (Previous year 14,142,535) Equity Shares of Rs. 10/- each 2094.25 2094.25
b) Current Investments
(Unquoted), at cost
Units in Mutual Funds 8355.81 19156.04
10450.06 21250.29
4 Healthcare.p65 271 8/19/2009, 12:31 PM


(RS. LACS)
As at As at
March 31, 2009 March 31, 2008
SCHEDULE-7
INVENTORIES
Stock of Medicines and Consumables 745.47 641.31
Medical and Surgical Instruments 310.11 1055.58 286.17 927.48
1055.58 927.48
SUNDRY DEBTORS
(Unsecured)
Debts Exceeding Six Months
- Considered Good 7023.47 5487.40
- Considered Doubtful 505.69 284.21
Less: Provision for Doubtful Debts (505.69) 7023.47 (284.21) 5487.40
Other Debts
Less: Provision for Doubtful Debts (0.14) 3960.13 (13.51) 4191.11
10983.60 9678.51
Amounts outstanding from companies under the same management:
- Max India Ltd. 3.88 9.33
- Max New York Life Insurance Company Ltd. 3.58 3.56
- Alps Hospital Ltd. 725.11 415.49
736.69 434.74
Amount outstanding from Directors - 0.45

Maximum amount outstanding during the year from companies under
the same management:
- Max India Ltd. 5.44 9.33
- Max New York Life Insurance Company Ltd. 3.68 4.31
748.48 435.49
Maximum amount outstanding from Directors during the year 0.85 0.54
- In Current Accounts 571.84 119.43
- In Deposit Accounts 2500.00 -
- In Margin Accounts 10.25 10.60
3202.83 170.24
Interest Accrued on Deposit and Margin Accounts 86.21 0.12
86.21 0.12
4 Healthcare.p65 272 8/19/2009, 12:31 PM


(RS. LACS)
As at As at
March 31, 2009 March 31, 2008
SCHEDULE-7 (Continued)
LOANS AND ADVANCES
(Refer Note C14A on Schedule 17)
UNSECURED
Due from Subsidiary Companies:
Inter Corporate Deposit 13113.46 11941.65
Advances
- Pre-operative expenses recoverable 1565.65 1565.65
- Interest Recoverable 3599.61 3113.94
- Others 33.98 6.50
Lease Rent Receivable 2802.03 2994.47
Less: Unearned Income (1745.90) 1056.13 (1810.53) 1183.94
Due from Other Healthcare Service Providers:
- Loan 7690.09 4558.49
- Interest Recoverable 1025.80 424.05
- Others 392.32 501.88
Due from Others:
Advances Recoverable in Cash or kind or Value to be Received
Less: Provision for Doubtful Advances (100.82) 1164.61 (39.34) 279.09
Prepaid Expenses 169.80 137.27
Security Deposits 636.08 596.92
Advance Income Tax 1267.31 1406.23
Income Accrued 347.25 252.98
32062.09 25968.59
Amount due from Directors 141.21 135.73
Amounts due from companies under the same management:
- Max Medical Services Ltd. 17612.34 15929.51
Maximum amount outstanding from Directors during the year 141.21 135.73
Maximum amount outstanding during the year from companies under the same management:
- Max Medical Services Ltd. 17578.37 16007.91
4 Healthcare.p65 273 8/19/2009, 12:31 PM


(RS. LACS)
As at As at
March 31, 2009 March 31, 2008
SCHEDULE-8
CURRENT LIABILITIES
Sundry Creditors:
- Total outstanding dues of micro enterprises and small enterprises - -
- Total outstanding dues of creditors other than micro enterprises and small enterprises 5336.38 4805.84
Advance from Customers 289.93 238.54
Advance Income Received 15.51 -
Interest accrued but not due on:
- Term Loan 80.94 49.12
- Other Loan 0.92 1.52
6245.67 5510.63
SCHEDULE-9
PROVISIONS
Provision for Leave Encashment 323.46 300.04

Provision for Gratuity 60.94 35.90
Provision for Wealth Tax 1.12 0.98
Provision for Fringe Benefit Tax 208.74 97.06
Less: Advance Fringe Benefit Tax (201.13) 7.61 (88.79) 8.27
393.13 345.19
SCHEDULE-10
- Preliminary Expenses 0.05 0.08
- Deferred Employee Compensation 70.97 -
71.02 0.08
(RS. LACS)
March 31, 2009 March 31, 2008
SCHEDULE-11
INCOME FROM HEALTHCARE SERVICES
(Refer Note C18(d) on Schedule 17)
Revenue from Healthcare Facilities* 20475.54 16706.33

Less: Discount (275.99) 20199.55 (270.58) 16435.75
Trading Sales:
- Drugs, Pharmaceuticals and Medical Supplies 4736.96 4080.43
Income earned from Other Healthcare Service Providers** 1721.50 1625.00
Sponsorships and Educational Income 60.31 2.60
26718.32 22143.78
* Includes tax deducted at source Rs. 224.57 Lacs (Previous year Rs. 201.78 Lacs)
** Includes tax deducted at source Rs. 26.91 Lacs (Previous year Rs. 16.30 Lacs)
4 Healthcare.p65 274 8/19/2009, 12:31 PM


(RS. LACS)
March 31, 2009 March 31, 2008
SCHEDULE-12
OTHER INCOME
(Refer Notes C14(A) & C14(B) on Schedule 17)
Interest on:
- Bank Deposits* 392.20 205.48
- Loans Given to Subsidiaries** 1753.21 1577.77
- Assets given on Finance Lease to Subsidiary 64.64 14.78
- Loans Given to Other Healthcare Service Providers*** 706.73 489.41
- Income Tax Refund 72.33 -
- Loans/Advances - 0.05
Lease Rentals 48.00 36.00
Profit on Sale of Non Trade Investments-Current 1624.55 289.40
Income from Laundry Services**** 114.06 91.34
Gain on Foreign Exchange Fluctuation 0.12 14.81
Less: Loss on Foreign Exchange Fluctuation - (1.64)
Net Gain on Foreign Exchange Fluctuation 0.12 13.17
Miscellaneous Income 98.88 81.84
5030.19 2863.22
* Includes tax deducted at source Rs 83.09 Lacs (Previous year Rs. 46.53 Lacs)
** Includes tax deducted at source Rs 1.96 Lacs (Previous year Rs.13.81 Lacs)
*** Includes tax deducted at source Rs.Nil (Previous year Rs. 7.12 Lacs)
**** Includes tax deducted at source Rs. 2.24 Lacs (Previous year Rs. 2.63 Lacs)
SCHEDULE-13
MEDICAL SUPPLIES CONSUMED/TRADED
Consumption of Medical Consumables 4441.85 3595.35
Cost of Traded Goods Sold:
- Drugs, Pharmaceuticals and Medical Supplies 4566.32 3948.83
9008.17 7544.18
4 Healthcare.p65 275 8/19/2009, 12:31 PM


(RS. LACS)
March 31, 2009 March 31, 2008
SCHEDULE-14
PERSONNEL, OPERATING AND ADMINISTRATIVE EXPENSES
(Refer Notes C8,C9, C11, C14(C),C14(D),C18(a) & C18(c) on Schedule 17)
Personnel
Salaries, Wages and Bonus 4832.53 3948.31
Recruitment Expenses 41.53 22.70
5284.12 4285.97
Other Operating and Administration Expenses
Professional and Consultation Fees 4329.28 3357.20
Outside Lab Investigations 248.69 153.28
Patient Catering Expenses 268.47 244.64
Rent 917.71 908.97
Insurance 181.66 150.64
Facility Maintenance Expenses 1037.88 909.20
- Building 223.58 124.77
- Plant and Machinery 230.30 133.86
- Others 316.85 319.18
Watch and Ward 129.91 128.79
Advertisement and Publicity 263.76 155.88
Software Expenses 51.90 128.00
Equipment Hiring Charges 10.75 25.63
Bad Debts - 2.65
Provision for Doubtful Debts 208.12 132.69
Provision for Doubtful Advances 61.47 21.21
Loss on Sale/Disposal of Fixed Assets 6.74 169.17
Less: (Gain) on Sale/Disposal of Fixed Assets - (0.04)
Net Loss on Sale/Disposal of Fixed Assets 6.74 169.13
Fixed Assets Written Off - 47.25
Miscellaneous Expenses 49.90 30.22
Amortization of Miscellaneous Expenditure 0.03 6.04
10592.18 8770.07
15876.30 13056.04
4 Healthcare.p65 276 8/19/2009, 12:31 PM


(RS. LACS)
As at As at
March 31, 2009 March 31, 2008
SCHEDULE-15
FINANCIAL EXPENSES
Interest on:
Term Loans
- Banks - 240.48
- Financial Institutions 2231.89 2297.06
Working Capital Loan 70.14 66.40
Others 9.30 32.46
2379.57 2696.79
SCHEDULE-16
TAX EXPENSE
Current Year
Deferred Tax (1638.19) 684.31
(1575.12) 737.24
SCHEDULE – 17
A. NATURE OF BUSINESS
The Company has completed Phase-I of its plans which included setting up of a network of healthcare facilities in the National
Capital Region, comprising of primary care clinics, secondary care hospitals/med centers and tertiary care facilities. Subsequent
phases, currently underway, are for expanding these facilities and setting up other healthcare facilities.
The financials of the Company include the performance of hospitals and centres, which are operational and the central support
team, which is meant to support the current operations and on going expansion. Healthcare facilities have long gestation periods
from the commencement of its operations and accordingly require significant cash outlay.
Also, as part of the plan, the Company had entered into long term service contracts either directly or through its subsidiaries with
other Healthcare Service Providers and a down stream subsidiary to provide support/services to them in their hospital operations.
Accordingly, amounts recoverable against these contracts are disclosed under sundry debtors and loans and advances.
B. SIGNIFICANT ACCOUNTING POLICIES
1. Accounting Convention
The Financial Statements are prepared on an accrual basis to comply in all material aspects with all the applicable accounting
principles in India, the applicable accounting standards notified under section 211(3C) of the Companies Act, 1956 and the
relevant provisions of the Companies Act, 1956.
2. Revenue Recognition
a. Revenue from Healthcare facilities is recognised on the performance of related services and includes services for patients
undergoing treatment and pending for billing, which is shown as income accrued under loans & advances.
b. Income from Healthcare Service Providers is recognised on the performance of related services as per terms of contracts.
c. Income from Educational Programmes is recognised on accrual basis.
4 Healthcare.p65 277 8/19/2009, 12:31 PM


3. Fixed Assets
a. Fixed Assets are stated at their original cost including freight, duties, taxes and other incidental expenses relating to
acquisition and installation.
b. Assets acquired under the business transfer agreement are stated at amounts based on a valuation report.
c. Intangible assets are recognised if they are separately identifiable and the Company controls the future economic
benefits arising out of them. All other expenses on intangible items are charged to the profit and loss account. Intangible
assets are stated at cost less accumulated depreciation.
d. Expenses of revenue nature, which can be regarded as incidental and related to project setup are transferred to
“Preoperative expenses pending Capitalisation”. These expenses are allocated to fixed assets in the year of commencement
of the related project.
4. Borrowing Costs
Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised
as part of the cost of that asset in accordance with Accounting Standard 16 on “Borrowing Costs”. Interest on working capital
is charged to the Profit & Loss Account.
5. Depreciation
a. Depreciation is charged on straight-line method on a pro-rata basis at rates prescribed under Schedule XIV to the
Companies Act, 1956
b. Leasehold improvements are depreciated over respective Lease Periods.
c. Assets costing not more than Rs. 5,000/- individually have been depreciated at 100%.
d. Softwares in the nature of intangible assets are depreciated over a period of six years.
6. Investments
a. Investments are classified into current investments and long-term investments. The cost of investments includes
acquisition charges such as brokerage, fees and duties.
b. Long-term investments are valued at cost. Provision for diminution is made to recognise a decline, other than temporary
in nature.
c. Current investments are carried at lower of cost or fair value.
7. Inventories
Inventories are valued at lower of cost or net realisable value. Cost for this purpose is calculated on a ‘First In First Out’
method.
8. Taxation
related revenue and expenses arise. Provision for tax consists of current tax and deferred tax. A provision is made for income
tax annually based on the tax liability computed, after considering tax allowances and exemptions. Provisions are recorded
when it is estimated that a liability due to disallowances or other matters is probable.
The differences that result between the profit offered for income tax and the profit 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 accounting period 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 period based on
prevailing enacted or substantially enacted regulations. Deferred tax assets are recognized only if there is virtual certainty
that they will be realized and are reviewed for the appropriateness of their respective carrying value at each balance sheet
date.
9. Employee Benefits
a. Gratuity
In accordance with the Payment of Gratuity Act, 1972, the Company provides gratuity, a benefit plan (the “Gratuity
Plan”) covering eligible employees. The Gratuity Plan provides a lump sum payment to vested employees at retirement,
death, incapacitation or termination of employment, of an amount based on the respective employee’s salary and the
tenure of employment. Liabilities with regard to the Gratuity Plan are determined by an actuarial valuation, based upon
which, the Company contributes to a Master policy with Life Insurance Corporation of India.
4 Healthcare.p65 278 8/19/2009, 12:31 PM


b. Superannuation
Certain employees of the Company are participants of a defined benefit superannuation contribution plan. The Company
makes contributions under the superannuation plan to “Max Healthcare Institute Limited Superannuation Fund” based
on a specified percentage of each covered employee’s salary.
c. Provident Fund
Eligible employees receive benefits from a provident fund, which is a defined contribution plan. The Company makes
contributions under Provident Fund to “Max India Limited Employees Provident Fund Trust”. The Company and the
employees make monthly contributions to the provident fund trust equal to a specified percentage of the covered
employee’s salary.
d. Leave Encashment
Accrual for leave encashment is made on the basis of actuarial valuation done at the year end.
10. Employee Stock Option Scheme
The value of options is equal to the aggregate of the fair value of the options granted. Fair value is the face value of the paid
up equity shares at which the share capital was introduced last by the Company or the net asset value, which ever is higher.
As and when the options are exercised, the same are accounted for as paid up capital to the extent of the face value. Options
that last are reversed by a credit to employee compensation expense equal to the amortised portion of the value of the lapsed
options and a credit to deferred employee compensation expense equal to the unamortised options.
11. Foreign Exchange Transactions
a. Monetary assets and liabilities related to foreign currency transactions remaining unsettled at the end of the year are
translated at year-end rates.
b. The difference in translation of monetary assets and liabilities and realised gains and losses on foreign exchange
transactions are recognised in the profit and loss account.
c. Exchange differences in respect of liabilities incurred to acquire fixed assets are recognised in the profit and loss
account.
12. Miscellaneous Expenditure
a. Preliminary expenses are amortised over a period of 10 years.
b. Deferred employee compensation expense is amortised over the vesting period.
c. Other Deferred Revenue Expenditure is amortised from the year it is incurred/ related projects commence operations,
over 3 to 5 years based on the period over which future benefit are expected to be received.
13. Leases
Where the Company is Lessor
a. Finance Lease
Assets given under finance lease are recognised as receivables at an amount equal to the net investment in lease. Lease
rentals are apportioned between principal and the interest on the basis of computed internal rate of return. The principal
amount received is reduced from the net investment in the lease while lease income is recognised over the period of the
lease so as to yield a constant rate of return on the net investment in the lease.
b. Operating Lease
The assets given under operating lease are shown in the Balance Sheet under fixed assets and depreciated on a basis
consistent with the depreciation policy of the Company. The lease income is recognised in the Profit and Loss Account
on an accrual basis. The initial direct cost incurred for finalising the lease arrangement is recognised as expense immediately
in the Profit and Loss Account.
Where the Company is Lessee
c. Finance Lease
Assets acquired under finance leases are recognised as an Asset and a Liability at the lower of the fair value of the
leased assets at inception of the lease and the present value of minimum lease payments. Lease payments are apportioned
between the finance charge and the reduction of the outstanding liability. The finance charge is allocated to periods
4 Healthcare.p65 279 8/19/2009, 12:31 PM


during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability and
the charge to the Profit and Loss Account.
d. Operating Lease
Payment made under Operating Leases is charged to Profit and Loss Account on a straight line basis over the period of
the lease.
14. Provisions and Contingencies
A provision is recognized when there is a present obligation as a result of past event, it is probable that an outflow of a
resource will be required to settle the obligation, in respect of which a reliable estimate can be made. These are reviewed at
each Balance Sheet date and adjusted to reflect the current estimates.
Contingent liabilities are disclosed after an evaluation of the fact and legal aspect of the matter involved.
C. NOTES TO THE ACCOUNTS
1. Contingent Liabilities (RS. LACS)
a) Corporate guarantees* 8000.00 8000.00
b) Claims against the Company not acknowledged as debts 834.78 626.77
c) Letter of Credit outstanding 3.24 -
d) Arrears of dividend on 2% Cumulative Convertible Preference Shares 839.73 338.80
e) Corporate Dividend tax thereon 142.71 57.58
f) Liability on assumed IRR (Also refer Note 4 below) 4053.42 1594.31
g) Income Tax (Refer Note 3 below)
* Guarantees given on behalf of another healthcare services provider is not considered prejudicial to the Company’s interest
as it provides opportunities for growth and increase in operations.
2. Capital Commitments (RS. LACS)

Estimated amount of contracts remaining to be executed on capital
account and not provided for 1595.47 4367.01
Balance Value of Contracts 1166.72 3208.39
3. Income Tax Cases

Certain income-tax proceedings are pending against the Company as detailed below:-
(RS. LACS)
Assessment Year 2003-04 2004-05 2005-06 2006-07
Disallowances made by the Assessing Officer 1157.72 641.01 649.14 462.42
Appeal against the disallowance pending Before CIT (Appeals) CIT (Appeals) CIT (Appeals) CIT (Appeals)
Demand (if any) NIL NIL NIL NIL
The Company is hopeful that the above appeals would be disposed off in its favour.
4. During the previous year, the Company together with Max India Limited (the Holding Company) had entered into a tripartite
subscription agreement dated June 29, 2007, for issue of equity and preference share capital, with International Finance
Corporation, USA (IFC).
As per the agreement, IFC had subscribed to the share capital of the Company amounting to Rs. 30,000 Lacs on July 28, 2007,
as detailed below:
4 Healthcare.p65 280 8/19/2009, 12:31 PM


a. 90,90,909 Equity Shares of face value of Rs. 10/- each at a premium of Rs. 45/- each aggregating to Rs. 5000.00 Lacs.
b. 250,000,000, 8 years 2% Cumulative Partially Convertible Preference Shares of Rs. 10/- each aggregating to Rs.25000.00 Lacs.
The Preference Shares carry a dividend rate of 2% which is cumulative in nature, payable until date of redemption or date of
purchase or conversion into equity shares, whichever is earlier. The earliest date of redemption or conversion or purchase is 3
years from the date of issue of the said shares.
Also, the Preference Shares have been issued with a guaranteed internal rate of return (GIRR) of 11.25%. The said GIRR is
inclusive of 2% dividend rate, premium on redemption and discount to any initial public offering (IPO) price. The Preference
Shareholders also have an option to convert a portion of Preference Shares into Equity Shares at a discount to a future IPO
price of the Company, subject to a maximum of 7.5% equity stake in the Company upon such conversion.
The Preference Shares which have not been converted into equity shares shall be redeemable at the expiry of eight years from
the date of issue. The said redemption of Preference Shares will be at a GIRR of 11.25% p.a. inclusive of payment of 2%
annual dividend and premium on redemption of Preference Shares.
The Company also has a right to redemption of the aforesaid preference shares at any time provided IFC is paid the redemption
amount at the GIRR.
Subsequent to the above mentioned agreement, the Company had entered into another tripartite “put option” agreement
together with Max India Limited (the Holding Company) and International Finance Corporation, USA. As per the said agreement
IFC has a right to exercise the put option in respect of the said preference shares on Max India Limited as under:-
i) At any time after 3 years from date of subscription; or
ii) At any time after giving due notice, in the event of non-performance of certain obligation by the Company and/or Max
India Limited.
Also, the price to be determined as per the ‘put option’ would be equivalent to the amount paid to redeem the Preference
Shares so as to generate GIRR of 11.25% as adjusted with the following:-
i) Payment of 2% preference dividend;
ii) Discount on IPO Price on such portion of Preference Shares which have been converted to Equity Shares; and
iii) Premium paid on Preference Shares already redeemed or to be redeemed.
The premium payable and the applicable discount on any future IPO price on redemption of the preference shares are dependent
on future events and accordingly cannot be individually ascertained at present, hence the provision for the said liability has
not been made.
5. Employee Stock Option Plan
Employee Stock Option Plan – 2006 (“the 2006 Plan”)
The Company has instituted the 2006 Plan, which was approved by the Board of Directors on July 31, 2006 and subsequently
by the shareholders on August 10, 2006. The 2006 Plan provides for grant of stock options aggregating not more than 5% of
number of issued equity shares of the Company to eligible employees of the Company. The 2006 Plan is administered by the
Remuneration Committee appointed by the Board of Directors. The options can be exercised during two to four years from the
vesting date.
Details of the 2006 Plan are given below
March 31, 2009 March 31, 2008
Options outstanding, beginning of the year 1,620,000 1,670,000
Options granted during the year 5,35,000 100,000
Options forfeited/lapsed during the year (12,00,000) (150,000)
Exercised during the year (50,000) -
Options outstanding, end of the year 9,05,000 1,620,000
4 Healthcare.p65 281 8/19/2009, 12:31 PM


6. Loans
(a) The Company has availed term loans from financial institutions to finance its hospital project. The details of loans
outstanding till date are as follows:
• Rs. 9183.30 Lacs (Previous year Rs.10061.10 Lacs) from Housing Developing Finance Corporation Ltd.
• Rs.6000.00 Lacs (Previous year Rs.6000.00 Lacs) from Infrastructure Development Finance Company Limited
• Rs.7312.50 Lacs (Previous year Rs.7500.00 Lacs) from Export Import Bank of India
The above loans from financial institutions are secured by way of:
• Equitable mortgage of the immovable properties of the Company and a Society
• Hypothecation of moveable fixed assets of the Company and its subsidiary
• Corporate guarantees by the Holding Company
(b) Fund based working capital facility from Yes Bank for Rs. 1012.80 Lacs (Previous year Rs.753.91 Lacs) (sanctioned amount
Rs. 1500 Lacs) (Previous year Rs.800 Lacs) is secured by way of hypothecation of all current assets of the Company.
7. Micro, Small and Medium Enterprises
The Company has initiated the process of identifying the Micro, Small and Medium Enterprises as defined under the “Micro,
Small and Medium Enterprises Development Act, 2006”. However, as per the information received from creditors, there is no
creditor covered under the said act.
8. Miscellaneous Expenditure represents:
(RS. LACS)
Particulars As at Addition Amortised As at
April during during March
1, 2008 the year the Year 31,2009
Preliminary and Issue Expenses 0.08 - 0.03 0.05
Deferred Employee Compensation - 77.79 6.82 70.97
0.08 77.79 6.85 71.02
9. Directors’ Remuneration
(RS. LACS)
Current Year* Previous Year
a) Directors’ remuneration paid/provided in the accounts:
(i) Salary and Allowances 71.27 42.93
(ii) Perquisites 21.15 5.07
(iii) Contribution to Provident Fund and Superannuation Fund 3.60 4.86
96.02 52.86
#
b) Professional Fees paid to Directors 14.23 65.83
Total 110.25 118.69
The above includes leave encashment for Rs.1.98 Lacs (Previous year Rs.Nil) and does not include gratuity.
*During the year, the Company paid remuneration to Executive Directors in accordance with the resolution passed by Board
of Directors and shareholders. With regard to Directors an amount of Rs. 64.96 Lacs (Previous year Rs. 70.17 Lacs) is paid in
excess of limits prescribed under Section II of Part II of Schedule XIII of Companies Act, 1956. The Company is in the process
of taking approval from Central Government for this excess amount.
In view of aforesaid, the excess amount of Rs. 64.96 Lacs (Previous year Rs. 70.17 Lacs) received by the concerned Directors
is held in trust for the Company.
Remuneration for current year also includes an amount of Rs. 65.45 Lacs (Previous year Nil) relating to earlier years for which
the Company has received Central Government Approval during the year.
#Includes an amount of Rs. Nil (Previous year Rs. 21.08 Lacs) relating to services rendered in the previous year for which an
agreement has been entered in the current year.
4 Healthcare.p65 282 8/19/2009, 12:31 PM


10. Investments
The details of Investments in the nature of Current Non Trade (Unquoted), at cost are given below
Name of the Investment Face value As at As at

per unit March 31, 2009 March 31, 2008
Units Value Units Value
(Rupees) (Numbers) (Rs. Lacs) (Numbers) (Rs. Lacs)
a) DSP Black Rock Strategic Bond Fund 1000 182270 1854.40 - -
- Institutional Plan Growth
b) ICICI Prudential Floating Rate Plan D Growth 10 15546303 2000.42 - -
c) IDFC Liquid Plus Fund - Treasury Plan 10 19744159 2000.48 - -
- Super Inst Plan C – Growth
d) Kotak Floater Long Term Growth 10 18207380 2500.51 - -
e) Birla Sun Life Liquid Plus Inst. – Growth 10 - - 20479195 3000.65
f) DSP Merrill Lynch Cash Plus – Institutional – Growth 1000 - - 505068 5158.82
g) HSBC Liquid Plus – Inst. - Plus – Growth 10 - - 39771183 4237.48
h) ICICI Prudential Institutional Liquid Plan 10 - - 4986950 571.29
- Super Institutional Growth
i) Reliance Liquid Plus Fund Institutional Option 1000 - - 193806 2045.00
-Growth Plan
j) TATA Floater Fund-Growth 10 - - 36573556 4142.80
8355.81 19156.04
Details of movement of Current Non Trade Investments (Unquoted) during the year:
Name of the Investment Face value Purchases Sales

per unit Units Value Units Value
(Rupees) (Numbers) (Rs. Lacs) (Numbers) (Rs. Lacs)
a) Birla Sun Life Liquid Plus-Instl. – Growth 10 - - 20479195 3000.65
b) DSP ML Cash Plus-Institutional-Growth 1000 6043 63.00 511112 5221.82
c) DSP Black Rock Cash Plus Fund 1000 224255 2500.00 224255 2500.00
- Institutional Plan-Growth
d) DSP Black Rock Strategic Bond Fund 1000 245768 2500.43 63499 646.03
- Institutional Plan Growth
e) HSBC CF Liq Plus-Inst 10 - - 39771183 4237.49
f) ICICI Prudential Institutional Liquid Plan 10 15575596 2000.00 20562546 2571.29
- Super Institutional Growth
g) ICICI Prudential Floating Rate Plan D Growth 10 15546303 2000.42 - -
h) IDFC Cash Fund - Super Inst Plan C – Growth 10 19126127 2000.00 19126127 2000.00
i) IDFC Liquid Plus Fund - Treasury Plan 10 19744159 2000.48 - -
- Super Inst Plan C - Growth
j) Kotak Liquid (Institutional Premium) – Growth 10 14182627 2500.00 14182627 2500.00
k) Kotak Floater Long Term Growth 10 18207380 2500.51 - -
l) Reliance Liquid Plus Fund-Institutional Option 1000 - - 193806 2045.00
-Growth Plan
m) Tata Floater Fund-Growth 10 - - 36573556 4142.80
4 Healthcare.p65 283 8/19/2009, 12:31 PM


11. Employees Benefit
Gratuity and Leave Encashment plans:
The following tables sets out disclosure in respect of define benefit plans.
Profit and Loss account
Net employee benefit expense (recognized in Employee Cost)
(RS. LACS)
Current Previous Current Previous
Year Year Year Year
Current service cost 32.33 27.12 100.43 105.16
Interest cost on benefit obligation 7.74 5.31 24.00 18.21
Net actuarial( gain) / loss recognized in the year (9.46) 2.70 (68.47) (20.05)
Past service cost - - - -
Net benefit expense 25.04 29.88 55.96 103.32
Actual return on plan assets
Balance sheet
(RS. LACS)
Year Year Year Year
(60.94) (35.90) (323.46) (300.04)
Less: Unrecognized past service cost - - - -
Plan asset / (liability) (60.94) (35.90) (323.46) (300.04)
Changes in the present value of the defined benefit obligation are as follows
(RS. LACS)
Year Year Year Year
Opening defined benefit obligation 96.86 66.33 300.04 227.66
Interest cost 7.74 5.31 24.00 18.21
Current service cost 32.33 27.12 100.43 105.16
Benefits paid (3.05) (4.67) (32.54) (30.94)
Actuarial (gains) / losses on obligation (9.56) 2.77 (68.47) (20.05)
Closing defined benefit obligation 124.32 96.86 323.46 300.04
4 Healthcare.p65 284 8/19/2009, 12:31 PM


Changes in the fair value of plan assets are as follows:
(RS. LACS)
Year Year Year Year
Opening fair value of plan assets 60.96 58.96 - -
Expected return 5.57 5.25 - -
Contributions by employer - 1.35 - -
Benefits paid (3.05) (4.67) - -
Actuarial gains / (losses) (0.10) 0.07 - -
Closing fair value of plan assets 63.38 60.96 - -
The Company expects to contribute Rs. NIL to gratuity in 2009-10.


Year Year Year Year
% % % %
Life Insurance Corporation of India 100 100 - -
The principal assumptions used in determining benefit obligations for the Company’s plans are shown below:
Year Year Year Year
% % % %
Discount rate 7.80 8.00 7.80 8.00
Expected rate of return on assets 9.15 9.15 - -
Employee turnover 40.00 40.00 40.00 40.00
The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion
and other relevant factors, such as supply and demand in the employment market.
(RS. LACS)
Year Year Year Year
Plan assets 63.38 60.96 - -
Surplus / (deficit) (60.94) (35.90) (323.45) (300.04)
Experience adjustments on plan liabilities 10.18 (2.77) (69.27) (20.05)

During the year, the Company contributed Rs. 181.04 Lacs (Previous year Rs. 151.52 Lacs) for provident fund and Rs. 22.07
Lacs (Previous year Rs. 25.06 Lacs) for superannuation fund which represent contribution to defined contribution plans.
4 Healthcare.p65 285 8/19/2009, 12:31 PM


12. Segment Reporting
As the Company operates in a single business and geographical segment of Healthcare services, the provisions of Accounting
Standard 17 on “Segment Reporting” notified under section 211(3C) of the Companies Act 1956 are not applicable to the
Company.
13. Related Parties (as identified by the Management) are classified as:
Holding Company Max India Ltd.
Subsidiaries Max Medical Services Ltd., Alps Hospital Ltd.
Fellow Subsidiaries Max New York Life Insurance Company Ltd., Max Ateev Ltd., Neeman Medical
International BV Netherlands, Neeman Medical International NV Netherlands, Max
Neeman Medical International Inc., USA, Max UK Ltd. UK, Pharmax Corporation
Ltd., Max Neeman Medical International Ltd., Max HealthStaff International Ltd.
Key Management Personnel (Directors) Mr. Analjit Singh, Mr. B Anantharaman (till June 30, 2008), Dr. Ashok Seth (till
August 23,2008), Dr. R.P. Soonawala, Dr. Pervez Ahmed(Effective February 1,2009).
Relatives of Key Management Personnel Mrs. Neelu Analjit Singh (Wife of Mr. Analjit Singh), Ms. Piya Singh (Daughter of Mr.
Analjit Singh), Ms. Tara Singh (Daughter of Mr. Analjit Singh), Mr. Veer Singh (Son
of Mr. Analijit Singh).
Enterprises over which key New Delhi House Services Ltd., Malsi Estates Ltd., Max India Foundation, Max Bupa
Management Personnel have Health Insurance Ltd.( Effective September 5, 2008).
Significant Influence
Employee benefit funds Max India Ltd. Employees Provident Fund Trust, Max Healthcare Institute Ltd.
Superannuation Fund.
Summary of significant related party transactions (as identified by management) carried out in ordinary course of business are as follows:
(RS. LACS)
S. Particulars Holding Subsidiaries Fellow Key Relatives Of Key Enterprise over Employee
No. Company Subsidiaries Management Management which Key Benefit
Personnel Personnel Management Funds
Personnel
have Significant
Influence
1 Fixed assets transferred/sold 45.54 - - - - - -
(-) (-) (-) (-) (-) (-) (-)
2 Fixed Assets Purchased - 15.43 - - - 82.69 -
(-) (-) (-) (-) (-) (-) (-)
3 Loans given - 1,171.81 - - - - -
(-) (2,524.50) (-) (-) (-) (-) (-)
4 Income and Reimbursements
Interest income - 1,817.85 - - - - -
(-) (1,592.55) (-) (-) (-) (-) (-)
Sale of Goods - 517.66 6.64 - - - -
(-) (406.66) (3.06) (-) (-) (-) (-)
Services rendered 15.98 348.69 6.43 0.35 1.49 15.51 -
(29.68) (149.09) (7.32) (0.19) (0.62) (8.81) (-)
Reimbursement of Expenses - 128.63 - - - - -
(-) (145.01) (-) (-) (-) (-) (-)
4 Healthcare.p65 286 8/19/2009, 12:31 PM


(RS. LACS)
S. Particulars Holding Subsidiaries Fellow Key Relatives Of Key Enterprise over Employee
No. Company Subsidiaries Management Management which Key Benefit
Personnel Personnel Management Funds
Personnel
have Significant
Influence
5 Expenses
Service received 293.53 0.54 350.00 - - 107.22 -
(306.94) (12.84) (244.40) (-) (-) (96.77) (-)
Other Expenses 30.95 1.79 13.95 - 4.62 48.09 -
(including reimbursement expenses) (70.35) (-) (-) (-) (2.40) (-) (-)
Director's Remuneration - - - 110.25 - - -
(-) (-) (-) (118.69) (-) (-) (-)
Co's contribution to Superannuation - - - - - - 22.07
(-) (-) (-) (-) (-) (-) (25.06)
Company's contribution to PF trust - - - - - - 212.71
(-) (-) (-) (-) (-) (-) (151.52)
6 Amount Outstanding
Corporate Guarantee 24,000.00 - - - - - -
(24,000.00) (-) (-) (-) (-) (-) (-)
Against Loan given - 14,679.11 - - - - -
(-) (13,507.30) (-) (-) (-) (-) (-)
Interest Receivable - 3,599.61 - - - - -
(-) (3,113.94) (-) (-) (-) (-) (-)
Other Receivable - 1,090.12 - 141.21 - - -
(-) (6.50) - (135.62) - (2.86) (-)
Other Payable 1,229.80 3.67 77.30 - 0.33 15.37 51.48
(971.90) (-) (28.63) (-) (-) (7.27) (29.77)
Debtors 3.88 725.11 7.70 0.08 1.50 7.16 -
(9.33) (415.49) (9.92) (0.19) (0.55) (-) (-)
14. Leases
Accounting for leases has been made in accordance with Accounting Standard-19 issued by the Institute of Chartered
Accountants of India. Following are the details of lease transactions for the year:
A. Finance Lease (As a Lessor)
i) Description of significant leasing arrangements
The Company has entered into a finance lease agreement for medical equipments with a down stream subsidiary
the period July 01, 2007 to March 31, 2017. The contract is renewable on mutual agreement.
ii) Reconciliation between the total gross investment in the lease and the present value of minimum lease payments
receivable as at the balance sheet date
(RS. LACS)
Total Gross Investment in Lease 2802.03 2994.47
Less:
Residual Value 53.62 12.96
Gross Investment in Lease 2748.41 2981.51
Less:
Unearned Income 1745.90 1810.53
Present value of minimum lease payments 1002.51 1170.98
4 Healthcare.p65 287 8/19/2009, 12:31 PM


iii) Present value of minimum lease payments receivable are as follows:
(RS. LACS)
Particulars Gross Investment Present value of
in Lease minimum lease
payments receivable
(233.10) (168.47)
Later than one year and not later than five years 1385.02 573.02
(1317.89) (636.73)
Later than five years 1072.89 251.01
(1430.52) (365.78)
Total 2748.41 1002.51
(2981.51) (1170.98)
B. Operating Lease (As a Lessor)

i) Description of significant leasing arrangements
The Company has given certain medical equipments on operating lease to a down stream subsidiary at lease rental
of Rs. 4.00 Lacs p.m. for the period July 01, 2007 to June 30, 2009, the contract is renewal on mutual agreement.
ii) Details of Assets given under operating lease are as under:
(RS. LACS)
Particulars Gross Carrying Depreciation Accumulated
Amount for the year Depreciation
Medical Equipments 660.44 46.69 (324.42)
(660.44) (45.12) (277.73)
iii) The total of future minimum lease payments under non-cancellable leases is as follows:
(RS. LACS)
March 31, 2009 March 31, 2008
Later than one year and not later than five years - 12.00
Later than five years - -
Total 12.00 60.00
C. Operating Lease (As a Lessee)
The Company has acquired vehicles on operating leases. The total minimum lease payments and maturity profile of
operating leases at the Balance Sheet date, and the present value of the minimum lease payments as of March 31, 2009
are as follows:
(RS. LACS)
March 31, 2009 March 31, 2008
Not later than one year 3.22 -
Later than one year and not later than five years 4.57 -
Later than five years - -
Total 7.79 -
4 Healthcare.p65 288 8/19/2009, 12:31 PM


D. Operating Lease (As a Lessee)
The Company leases office spaces and accommodation for its employees under operating lease agreements. The lease
rental expense recognized in the Profit and Loss account for the year is Rs. 917.71 Lacs (Previous Year Rs.908.97 Lacs)
Future minimum lease payments and the payment profile of non-cancellable operating leases are as follows:
(RS. LACS)
March 31, 2009 March 31, 2008
Later than one year and not later than five years 588.04 456.06
Later than five years - 228.81
Total 967.61 1003.08
15. Earnings Per Share

March 31, 2009 March 31, 2008
Basic
Profit/(Loss) after tax (Rs. Lacs) 4761.14 (391.00)
Weighted average number of equity shares 237106740 234163599
Earnings Per Share (Rs.) 2.01 (0.17)
Equity Share Details (Nos.)
Issued on Jan 2, 2009 50000 -
Issued on July 28, 2007 - 9090909
Diluted
Profit/(Loss) after tax (Rs. Lacs) 4761.14 (391.00)
Less: Dividend on Cumulative Preference Shares (Rs. Lacs) 500.00 338.80
Net Profit/(Loss) after adjustment (Rs. Lacs) 4261.14 (729.80)
Weighted average number of equity shares 238577179 235758189
Earning Per Share (Rs.) 1.79 (0.31)
Equity Share Details (Nos.)*
ESOPs granted under the 2006 Plan 535000 100000
ESOPs forfeited/lapsed during the year (1200000) (150000)
ESOPs Exercise during the year (50000) -
Issued on Jan 2, 2009 50000 -
Issued on July 28, 2007 - 9090909
* Since the rate at which the Preference Shares will be converted is not presently determinable, the same has not been considered.
Reconciliation of denominators used for calculating basic and diluted earnings per share
March 31, 2009 March 31, 2008
Denominator used for computing basic Earnings Per Share 237106740 234163599
Dilutive impact of ESOPs granted under the 2006 Plan 2054659 1956328
Dilutive impact of ESOPs lapsed under the 2006 Plan (584220) (331410)
Denominator used for computing diluted Earnings Per Share 238577179 235788517
4 Healthcare.p65 289 8/19/2009, 12:31 PM


16. The movement of provision for deferred tax is given below:
(RS. LACS)
Opening as at Addition Deletion/ Closing as at
April 1, 2008 Adjustment March 31, 2009
Depreciation related 1928.96 458.41 (294.50) 2092.87
Preliminary expense 0.03 - (0.01) 0.02
1928.99 458.41 (294.51) 2092.89
Deferred Tax Asset
Deduction u/s 43B of the Income Tax Act (108.85) (39.24) - (148.09)
Other Provisions (181.95) (147.61) - (329.56)
B/F Unabsorbed depreciation carried forward - (1615.24) - (1615.24)
(290.80) (1802.09) - (2092.89)
Net Deferred Tax Liability 1638.19 (1343.68) (294.51) -
Deferred Tax Assets are created to the extent of deferred tax liability.
17. During the year, a Memorandum of Understanding (MOU) dated November 12, 2008 has been entered into amongst Government
of Punjab (“GOP”), Max India Group and Others (“the Founder Supporters”), together with Indian School of Business, Hyderabad
(“ISB”). As per the MOU, a second campus of ISB is purposed to be established in the Knowledge city at Mohali, with an equal
contribution from each of the Founder Supporters. The Board of Directors recommended a contribution an amount not
exceeding Rs. 16.67 crores to this initiative over a period of 3-4 years, subject to the shareholders approval, out of the total
commitment of Rs.50 crores from Max India Group. Of the above, a sum of Rs. 1.45 Crores has been contributed by the
company during the year and included under the head Charity & Donation.
ADDITIONAL INFORMATION PURSUANT TO THE PROVISIONS OF PARAGRAPH 3, 4C AND 4D OF PART II OF SCHEDULE VI TO
THE COMPANIES ACT, 1956:
18. a. Material consumed consists of items of varied nature. Accordingly it is not feasible to give details as required under part
II of Schedule VI to the Companies Act, 1956.
(RS. LACS)
b. Value of Imports calculated on CIF Basis
- Capital Goods 64.55 299.31
- Trading Goods - -
Total : 64.55 299.31
c. Expenditure in Foreign Currency
- Professional Fee 73.58 38.17
- Others 26.65 28.06
Total : 100.23 66.23
d. Income in Foreign Currency
- Consultation fees 61.69 66.35
- Sponsorship received - 0.12
Total : 61.69 66.47
4 Healthcare.p65 290 8/19/2009, 12:31 PM


19. Auditors Remuneration
(RS. LACS)
Audit fees (including service tax) 18.75 19.10
Reimbursement of out of pocket expenses 1.10 0.90
Total : 19.85 20.00
20. Details of utilisation of Preferential Issue Proceeds is as follows:

(RS. LACS)
(Cumulative)
Amount received on preferential allotment of shares 30000.00 30000.00
Utilisation:
Repayment of Loans 8000.68 7538.90
Working capital 1006.81 854.50
Purchase of land (including Advances) 4818.48 1080.00
New Projects 1253.94 (-)
Loan to subsidiaries 1627.84 682.02
Loan to other healthcare services provider 3730.64 688.54
Sub-total 20438.39 10843.96
Invested in Units of Mutual Fund 8355.81 19156.04
Deposit with Scheduled Bank 1205.80 -
21. Utilisation of Securities Premium account is as follows:

(RS. LACS)
Add: Premium received during the year on preferential allotment of shares - 4090.91
Less: Expenses incurred on issue of share capital - 94.61
22. Comparative Figures

Previous year’s figures have been regrouped / reclassified, wherever considered necessary, to conform to current year’s
classification.
DR. PERVEZ AHMED CEO & Managing Director

K.K. MATHUR Director
New Delhi ARVIND KAKAR Vice President-Finance
JUNE 25, 2009 LALJI KUMAR Company Secretary
4 Healthcare.p65 291 8/19/2009, 12:31 PM



Date Month Year
N I L N I L
Bonus Issue Others
N I L 5 0 0
8 6 0 2 5 1 4 8 6 0 2 5 1 4
SOURCES OF FUND
Paid-up Capital Reserve & Surplus
4 8 7 1 4 4 5 1 3 7 1 3 1 4
Secured Loans Deferred Tax Liability
2 3 5 0 8 6 0 0
Unsecured Loans
8 8 9 5
2 4 0 1 1 9 8 1 0 4 5 0 0 6
4 0 7 5 1 5 1 7 1 0 2
Accumulated Losses
1 0 7 4 0 5 7
3 1 7 4 8 5 1 2 8 5 6 2 4 9
+ - Profit /Loss before tax + - Profit /Loss after tax
3 1 8 6 0 2 4 7 6 1 1 4
Earning per share in Rs.
+ - Basic Dividend Rate (%)
2 . 0 1 N I L
+ - Diluted
1 . 7 9
Product Description H E A L T H C A R E
R E L A T E D
S E R V I C E S
4 Healthcare.p65 292 8/19/2009, 12:31 PM

MAX MEDICAL SERVICES LIMITED
(Previously MAX MEDICAL SERVICES PRIVATE LIMITED)
Directors’ Report
Your Directors are pleased to present their Fifteenth Annual Report, (iv) The Directors had prepared the annual accounts on a going
along with the Audited Accounts for the financial year ended March concern basis.
31, 2009. PARTICULARS OF EMPLOYEES
OPERATIONS The Company does not have any employee who is covered under
The Company recorded an operational income of Rs. 33.03 crore the provisions of Section 217 (2A) of the Companies Act, 1956,
during the year 2008-09, 34% up from its previous year income of read with the Companies (Particulars of Employees) Rules, 1975.
Rs. 24.69 crore. Besides leasing of assets, this income also includes DIRECTORS
the earnings from its construction & trading activities.
In accordance with the provisions of the Companies Act, 1956,
During the year under review, your Company registered a profit of Mr. Arvind Kakar and Mr. Mukesh Shivdasani are liable to retire by
Rs. 1.42 crore as against a last year profit of Rs. 3.91 crore. rotation at the ensuing Annual General Meeting and being eligible
DIVIDEND offer themselves for re-appointment.
In view of the carry forward losses, your Directors do not recommend Mr. Mohit Talwar and Mrs. Sujatha Ratnam were appointed as
any dividend for the year under review. Additional Directors of the Company on January 14, 2009 to hold
INVESTMENT office up to the ensuing Annual General Meeting. The Company has
received notices under Section 257 of the Companies Act, 1956 from
During the year under review, your Company has subscribed to members proposing the candidature of Mr. Mohit Talwar and Mrs.
9,300 equity shares of Rs.10/- each of its 100% subsidiary, Alps Sujatha Ratnam for being appointed as Directors of the Company.
Hospital Limited, aggregating to Rs.93,000/-.
Mr. Analjit Singh resigned from the Board of Directors of the
PARTICULARS OF DEPOSITS Company effective January 14, 2009. The Board places on record,
During the year under review, your Company has not accepted any its appreciation for the valuable contribution made by Mr. Analjit
deposits from the public. Singh during his association with the Company.
ADDITIONAL INFORMATION AUDIT COMMITTEE
As your Company does not carry on any manufacturing activity, During the year under review, the Audit Committee of your Company
information in accordance with the provisions of Section 217(1)(e) was reconstituted and the Committee currently comprises of Mr.
of the Companies Act, 1956 read with the Companies (Disclosure Arvind Kakar, Mr. Mukesh Shivdasani and Mr. Neeraj Basur. The
of Particulars in the Report of Board of Directors) Rules, 1988 is role and terms of reference of the Audit Committee covers the
not furnished herewith. areas mentioned under Section 292A of the Companies Act, 1956
besides other terms, as may be referred to it by the Board of Directors
DIRECTOR’S RESPONSIBILITY STATEMENT
of the Company.
As per the provisions of Section 217(2AA) of the Companies Act,
SUBSIDIARY COMPANY
1956, the Directors confirm that:
Statement pursuant to Section 212 of the Companies Act, 1956,
relating to Alps Hospital Limited, the subsidiary of your Company,
accounting standards have been followed, along with proper
is annexed to this Report as Annexure–A.
explanation relating to material departures;
AUDITORS
(ii) The Directors had selected such accounting policies and applied
them consistently and made judgments and estimates that M/s Price Waterhouse, Chartered Accountants, the Statutory
are reasonable and prudent, so as to give a true and fair view Auditors of the Company, retires at the conclusion of the ensuing
of the state of affairs of the Company at the end of the financial Annual General Meeting and is eligible for re-appointment. The
year and of the profit or loss of the Company for that period; Company has obtained from them a Certificate to the effect that
their re-appointment if made, will be in conformity with the limits
(iii) The Directors had taken proper and sufficient care for the
specified under Section 224 (1B) of the Companies Act, 1956.
with the provisions of the Companies Act, 1956 for For and on Behalf of the Board of Directors
New Delhi ARVIND KAKAR Director
and detecting fraud and other irregularities; and
July 23, 2009 SUJATHA RATNAM Director
5 MMSL.p65 295 8/24/2009, 5:24 PM

5 MMSL.p65
Annexure - A
STATEMENT REGARDING SUBSIDARY COMPANIES PURSUANT TO SECTION 212(3) AND 212(5) OF THE COMPANIES ACT, 1956
Name of the Subsidary Company Financial Year Holding Companie’s interest at the close of Net Aggregate amount of Net Aggregate amount of Holding
to which Financial year of Subsidary Company Subsidary Company’s profits Subsidary Company’s profits Company’s
Accounts after deducting, its losses or vice- after deducting, its losses or Interest as at
relate versa, so far as it concerns vice-versa, so far as it concerns 31.03.2009
Members of Holding Company Members of Holding Company incorporating
which are not dealt within the which are dealt within the changes since
Company’s Account Company’s Account close of financial
296
year/period of
(i) Shareholding (ii) Extent of For the For the For the For the Subsidary
Holding Current Previous Current Previous Company
Financial Year Financial Year Financial Year Financial Year

Alps Hospital Limited 31.03.2009 50,000 Equity 100% (568.93) (636.81) NIL NIL 100%
Share of
Rs. 10 each
Figures in brackets indicate loss. For and on behalf of the Board of Directors
Max India Limited

New Delhi ARVIND KAKAR SUJATHA RATNAM
JULY 23, 2009 Director Director
8/24/2009, 5:24 PM
Auditors’ Report
TO THE MEMBERS OF MAX MEDICAL SERVICES LIMITED and explanations given to us, a substantial part
of fixed assets have not been disposed of by the
1. We have audited the attached Balance Sheet of Max Medical
company during the year.
Services Limited, as at March 31, 2009, and the related Profit
and Loss Account and Cash Flow Statement for the year ended ii. (a) The inventory has been physically verified by the
on that date annexed thereto, which we have signed under management during the year. In our opinion, the
reference to this report. These financial statements are the frequency of verification is reasonable.
responsibility of the company’s management. Our
(b) In our opinion, the procedures of physical
responsibility is to express an opinion on these financial
verification of inventory followed by the
statements based on our audit.
management are reasonable and adequate in
2. We conducted our audit in accordance with the auditing relation to the size of the company and the nature
standards generally accepted in India. Those Standards require of its business.
(c) On the basis of our examination of the inventory
records, in our opinion, the company is
maintaining proper records of inventory. The
discrepancies noticed on physical verification of
inventory as compared to book records were not
material.
by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a iii. (a) The company has not granted any loans, secured
reasonable basis for our opinion. or unsecured, to companies, firms or other parties
covered in the register maintained under Section
as amended by the Companies (Auditor’s Report) (Amendment) 301 of the Act.
Order, 2004, issued by the Central Government of India in (b) The company has not taken any loans, secured or
terms of sub-section (4A) of Section 227 of ‘The Companies unsecured, from companies, firms or other parties
Act, 1956’ of India (the ‘Act’) and on the basis of such checks covered in the register maintained under Section
of the books and records of the company as we considered 301 of the Act.
iv. In our opinion and according to the information
and explanations given to us, having regard to
i. (a) The company is maintaining proper records the explanation that certain items purchased are
showing full particulars including quantitative of special nature for which suitable alternative
details and situation of fixed assets. sources do not exist for obtaining comparative
(b) The fixed assets are physically verified by the quotations, there is an adequate internal control
management according to a phased programme system commensurate with the size of the
designed to cover all the items over a period of company and the nature of its business for the
three years, which in our opinion, is reasonable purchase of fixed assets and for the sale of goods
having regard to the size of the company and and services. Further, on the basis of our
the nature of its assets. Pursuant to the examination of the books and records of the
programme, a portion of the fixed assets has been company, and according to the information and
physically verified by the management during the explanations given to us, we have neither come
year and no material discrepancies between the across nor have been informed of any continuing
book records and the physical count have been failure to correct major weaknesses in the
noticed. aforesaid internal control system.
(c) In our opinion and according to the information v. In our opinion and according to the information
5 MMSL.p65 297 8/19/2009, 12:31 PM

Auditors’ Report
and explanations given to us, the Company has xiii. The provisions of any special statute applicable to chit
not entered into any contracts or arrangements fund / nidhi / mutual benefit fund/societies are not
referred to in Section 301 of the Act. applicable to the company.
vi. The company has not accepted any deposits from xiv. In our opinion, the company is not a dealer in shares,
the public within the meaning of Sections 58A securities, debentures and other investments.
and 58AA of the Act and the rules framed there
xv. In our opinion, and according to the information and
under.
explanations given to us, the company has not given
vii. In our opinion, the company has an internal audit any guarantee for loans taken by others from bank of
system commensurate with its size and nature of financial institutions during the year.
its business.
xvi. The Company has not taken any term loans.
viii. The Central Government of India has not
xvii. On the basis of an overall examination of the balance
prescribed the maintenance of cost records under
sheet of the company, in our opinion and according to
clause (d) of sub-section (1) of Section 209 of the
the information and explanations given to us, there are
Act for any of the products of the company.
no funds raised on a short-term basis which have been
ix. (a) According to the information and explanations used for long-term investment.
xviii. The company has not made any preferential allotment of
examined by us, in our opinion, the company is
shares to parties and companies covered in the register
generally regular in depositing the undisputed
maintained under Section 301 of the Act during the year.
statutory dues including provident fund, investor
education and protection fund, income-tax, sales- xix. The company has not issued any debentures during the
tax, wealth tax, service tax, customs duty, excise year.
duty, cess and other material statutory dues as
xx. The company has not raised any money by public issues
applicable with the appropriate authorities.
during the year.
(b) According to the information and explanations
xxi. During the course of our examination of the books and
records of the company, carried out in accordance with
examined by us, there are no dues of income-tax,
x. The company has accumulated losses, as at March 31, year, nor have we been informed of such case by the
2009 more than fifty percent of its net worth and has management.
not incurred any cash losses in the financial year ended
4. Further to our comments in paragraph 3 above, we report that:
on that date. The Company has not incurred cash losses
in the immediately preceding financial year. (a) We have obtained all the information and explanations,
xi. According to the records of the company examined by
the company has not defaulted in repayment of dues to (b) In our opinion, proper books of account as required by
any financial institution or bank as at the balance sheet law have been kept by the company so far as appears
date. from our examination of those books;
xii. The company has not granted any loans and advances (c) The Balance Sheet, Profit and Loss Account and Cash
on the basis of security by way of pledge of shares, Flow Statement dealt with by this report are in
debentures and other securities. agreement with the books of account;
5 MMSL.p65 298 8/19/2009, 12:31 PM

Auditors’ Report
(d) In our opinion, the Balance Sheet, Profit and Loss (i) in the case of the Balance Sheet, of the state of
Account and Cash Flow Statement dealt with by this affairs of the company as at March 31, 2009;
V.NIJHAWAN
Section 274 of the Act;
Partner
(f) In our opinion and to the best of our information and Membership Number F-87228
financial statements together with the notes thereon
Gurgaon Price Waterhouse
and attached thereto give in the prescribed manner the
JUNE 24, 2009 Chartered Accountants
information required by the Act and give a true and fair
view in conformity with the accounting principles
generally accepted in India:
5 MMSL.p65 299 8/19/2009, 12:31 PM


RUPEES
March 31, 2009 March 31, 2008
SOURCES OF FUNDS
Share Capital 1 141,425,350 141,425,350

Share Premium 2,999,650 2,999,650
LOAN FUNDS
Unsecured Loan 2 1,402,634,889 1,286,270,476
DEFERRED TAX LIABILITY (NET) 3 5,912,661 58,234,799
1,552,972,550 1,488,930,275
FIXED ASSETS 4
Gross Block 438,080,074 438,080,074
Less : Accumulated Depreciation 124,596,536 95,558,413
Net Block 313,483,538 342,521,661
Capital Work in Progress 13,923,525 1,190,000
327,407,063 343,711,661
INVESTMENTS 5 134,758,781 134,665,781
Inventories 6 30,000 -
Sundry Debtors 7 547,923,097 417,188,519
Cash and Bank Balances 8 5,050,319 3,132,413
Other Current Assets 9 58,100,007 24,911,696
Loans & Advances 10 841,218,166 786,886,867
1,452,321,589 1,232,119,495
Less : CURRENT LIABILITIES AND PROVISIONS 11
Current Liabilities 433,393,149 330,682,455
Provisions 1,876,994 1,876,994
435,270,143 332,559,449
NET CURRENT ASSETS 1,017,051,446 899,560,046
MISCELLANEOUS EXPENDITURE 12 8,687,526 20,928,602
PROFIT AND LOSS ACCOUNT 65,067,734 90,064,185
1,552,972,550 1,488,930,275
V. NIJHAWAN SUJATHA RATNAM Director
Partner ARVIND KAKAR Director
Membership No. F 87228 ROHIT GANDHI Company Secretary
Price Waterhouse
Gurgaon New Delhi
JUNE 24, 2009 JUNE 24, 2009
5 MMSL.p65 300 8/19/2009, 12:31 PM

RUPEES
March 31, 2009 March 31, 2008
INCOME
Income from Lease and Maintenance Activities 13 155,765,013 196,482,773
Income from construction and Trading Activities 14 110,401,049 2,412,204
Other Income 15 64,111,472 47,968,312
330,277,534 246,863,289
EXPENDITURE
Stores and Spares Consumed 16 110,401,703 2,412,204
Personnel, Administrative and Other expenses 17 51,279,532 49,395,247
Financial Expenses 18 166,883,863 151,688,257
Depreciation 4 29,038,123 29,117,682
357,603,221 232,613,390
PROFIT/(LOSS) BEFORE TAX (27,325,687) 14,249,899
Provision for Taxation
- Income Tax - 1,614,514
- Deferred Tax (Refer Note C7 on Schedule 19) (52,322,138) 2,005,850
PROFIT/(LOSS) FOR THE YEAR AFTER TAX 24,996,451 10,629,535

(LOSS) BROUGHT FORWARD FROM THE PREVIOUS YEAR (90,064,185) (100,693,720)
BALANCE CARRIED FORWARD TO THE BALANCE SHEET (65,067,734) (90,064,185)

Earning Per Share (Rs per equity share of Rs 10 each)
- Basic 1.77 0.75
- Diluted 1.77 0.75
Number of Shares used in computing Earning per Share
- Basic 14,142,535 14,142,535
- Diluted 14,142,535 14,142,535
Price Waterhouse
Gurgaon New Delhi
JUNE 24, 2009 JUNE 24, 2009
5 MMSL.p65 301 8/19/2009, 12:31 PM

RUPEES
March 31, 2009 March 31, 2008
Net Loss before tax and extraordinary items (27,325,687) 14,249,899
Adjustments for:
Depreciation 29,038,123 29,117,682
Interest Expense 166,832,965 151,681,834
Interest Income (39,574,569) (22,723,978)
Miscellaneous Expenditure written off 1,076 1,076
Deferred revenue expenditure written off 12,240,000 12,240,000
Operating Profit Before Working Capital Changes 141,211,908 184,566,513
Adjustments for:
Trade receivables (130,734,579) (143,768,680)
Other receivables (72,935,638) 13,271,752
Inventories (30,000) 2,412,204
Trade payables 57,587,075 (18,528,839)
Cash Generated from Operations (4,901,234) 37,952,950
Direct taxes refunded/(paid) - Net 35,831,746 (18,425,557)
Cash From/(Used in) Operating Activities 30,930,512 19,527,393

Purchase of fixed assets - (35,010,653)
Capital Work in Progress (12,733,525) 7,582,046
Loan given (17,227,407) -
Interest on Inter company deposits - (129,852,051)
Interest Received (Revenue) 6,386,258 5,388,695
Purchase of Investment (93,000) -
Cash From/(Used In) Investing Activities (23,667,674) (151,891,963)

Proceeds from Long term borrowings 116,364,413 187,990,529
Interest Paid (121,709,345) (55,842,141)
Cash from/(used in) Financing Activities (5,344,932) 132,148,388
Net Increase/(Decrease) in Cash and Cash Equivalents 1,917,906 (216,181)
Cash and Cash Equivalents - Opening Balance 3,132,413 3,348,595
Cash and Cash Equivalents - Closing Balance 5,050,319 3,132,413
(1,917,906) 216,181
5 MMSL.p65 302 8/19/2009, 12:31 PM

Notes:
1 The above Cash Flow statement has been prepared under the “Indirect Method” as set out in the Accounting Standard-3 on
Cash Flow Statements notified U/S 211(3C) of Companies Act 1956.
2 Cash and Cash Equivalents at the end of the year consist of Cash, Cheques in hand and balances with banks:
3 Figures in bracket indicate cash outgo.
RUPEES
As at As at
March 31, 2009 March 31, 2008
Cash in Hand 15,075 20,592
Balance with banks 5,035,244 3,111,821
Total 5,050,319 3,132,413
Cash Flow Statement
Price Waterhouse
Gurgaon New Delhi
JUNE 24, 2009 JUNE 24, 2009
5 MMSL.p65 303 8/19/2009, 12:31 PM


RUPEES
As at As at
March 31, 2009 March 31, 2008
SCHEDULE-1
SHARE CAPITAL
AUTHORISED
35,000,000 (Previous year 35,000,000) Equity Shares of Rs 10/- each 350,000,000 350,000,000
350,000,000 350,000,000
ISSUED , SUBSCRIBED AND PAID UP
14,142,535 (Previous year 14,142,535) Equity Share of Rs 10/- each 141,425,350 141,425,350
held by Max Healthcare Institute Limited (The Holding Company) and it’s nominees
141,425,350 141,425,350
SCHEDULE-2
UNSECURED LOANS
-From Max Healthcare Institute Ltd. (The Holding Company) 1,402,634,889 1,286,270,476
(Repayable on Demand)
1,402,634,889 1,286,270,476
SCHEDULE 3
Opening Balance 58,234,799 56,228,949
Movement during the Year (52,322,138) 2,005,850
5,912,661 58,234,799
SCHEDULE-4
FIXED ASSETS
(Refer Notes B3, B4, B5 & C6 on Schedule 19) RUPEES
Particulars As at Additions Deletions/ As at As at For the Deletions/ As at As at As at
April 1, Adjustments March 31, April 1, year Adjustments March 31, March 31, March 31,
2008 during the year 2009 2008 during the year 2009 2009 2008
TANGIBLE ASSETS
Plant & Machinery (PM) 124,485,581 - - 124,485,581 18,922,816 5,913,065 - 24,835,881 99,649,700 105,562,765
Medical Equipments 256,808,665 - - 256,808,665 56,942,358 18,129,179 - 75,071,537 181,737,128 199,866,307
Office Equipments 22,646,532 - - 22,646,532 8,552,173 2,506,543 - 11,058,716 11,587,816 14,094,359
Furniture & Fixtures 28,344,569 - - 28,344,569 8,879,118 1,550,011 - 10,429,129 17,915,440 19,465,451
INTANGIBLE ASSETS
Computer Software 5,794,727 - - 5,794,727 2,261,948 939,325 - 3,201,273 2,593,454 3,532,779
TOTAL 438,080,074 - - 438,080,074 95,558,413 29,038,123 - 124,596,536 313,483,538 342,521,661
CAPITAL WORK IN PROGRESS 13,923,525 1,190,000
GRAND TOTAL 438,080,074 - - 438,080,074 95,558,413 29,038,123 - 124,596,536 327,407,063 343,711,661
Previous Year 428,189,584 9,890,490 - 438,080,074 66,440,731 29,117,682 - 95,558,413 343,711,661 371,951,689
Notes :
1. Capital work in progress includes Capital Advances of Rs. 4,440,212/- (Previous year Rs. 1,190,000/-)
2 Capital work in progress includes interest capitalised of Rs. 330,566/- (Previous Year Rs. Nil) .
5 MMSL.p65 304 8/19/2009, 12:31 PM


RUPEES
As at As at
March 31, 2009 March 31, 2008
SCHEDULE-5
INVESTMENTS
Subsidiary, at cost
(Unquoted)
Alps Hospital Limited, a Subsidiary Company
50,000 (Previous year 40,700) Equity Shares of Rs. 10/- each 134,758,781 134,665,781
134,758,781 134,665,781
Aggregate value of unquoted investments 134,758,781 134,665,781

SCHEDULE-6
INVENTORIES
- Stock of Medical Supplies (in Transit) 30,000 -
30,000 -
SCHEDULE-7
SUNDRY DEBTORS
(Unsecured)
Debtors exceeding six months
-Considered Good 447,040,370 314,112,513
Other Debts
-Considered Good 100,882,727 103,076,006
547,923,097 417,188,519
SCHEDULE-8
Cash-in-hand 15,075 20,592
Balance with Banks
-In Current Accounts 5,035,244 3,111,821
5,050,319 3,132,413
SCHEDULE-9
Interest Receivable * 58,100,007 24,911,696
58,100,007 24,911,696
* Amounts due from subsidiary company Rs. 54,457,103/- (Previous Year Rs. 24,911,696)
5 MMSL.p65 305 8/19/2009, 12:31 PM


RUPEES
As at As at
March 31, 2009 March 31, 2008
SCHEDULE-10
LOANS AND ADVANCES
(Refer Notes C3, C4, C5 & C13 on Schedule 19)
Unsecured
Advances Recoverable in Cash or kind or value to be received 5,000 104,852
Recoverable from Subsidiary Company
- Loan 257,056,446 239,829,039
- Others 1,127,513 1,127,513
Recoverable from other Healthcare services provider
-Loan 29,646,937 31,750,701
-Deferred Credit 50,349,172 42,287,318
-Construction Cost Recoverable 268,262,388 202,105,704
-Expenses Recoverable 111,488,795 117,866,017
-Security Deposits 78,300,000 78,300,000
Advances to suppliers 7,294,305 -
Prepaid Expenses 3,243,793 3,240,160
Tax Receivable 34,443,817 70,275,563
841,218,166 786,886,867
* Amounts due from subsidiary company:
For Loan Rs. 257,056,446 (Previous Year Rs. 239,829,039)
For Others Rs. 1,127,513 (Previous Year Rs. 1,127,513)
SCHEDULE-11
CURRENT LIABILITIES AND PROVISONS
CURRENT LIABILITIES
Sundry Creditors
-Total outstanding dues of Micro Enterprise & Small Enterprise - -
-Total outstanding dues other than Micro Enterprise & Small Enterprise* 44,934,184 7,031,505
- Acceptances 7,775,725 -
-Interest Accrued (to The Holding Company) 351,803,455 306,679,835
-Other Liabilities 28,879,785 16,971,115
433,393,149 330,682,455
PROVISIONS
Provisions for Taxation 1,876,994 1,876,994
Provision for current year Income Tax - -
1,876,994 1,876,994
435,270,143 332,559,449
* Payable to Holding Company is Rs. 3,398,190/- (Previous Year Rs. Nil)
SCHEDULE-12
a) Deferred Revenue Expenditure 8,685,370 20,925,370
b) Preliminary Expenses 2,156 3,232
8,687,526 20,928,602
5 MMSL.p65 306 8/19/2009, 12:31 PM


RUPEES
March 31, 2009 March 31, 2008
SCHEDULE-13
INCOME FROM LEASE AND MAINTENANCE ACTIVITIES
(Refer Notes C3, C4 & C10 on Schedule 19)
Income from Lease* 97,151,867 122,801,730
Income from Maintainence of Healthcare facility ** 58,613,146 73,681,043
155,765,013 196,482,773
* Tax Deducted at Source Rs. 2,985,790/- (Previous year Rs 16,051,355/-)
** Tax Deducted at Source Rs. 1,159,703/- (Previous year Rs 1,866,499/-)
‘
SCHEDULE-14
INCOME FROM CONSTRUCTION AND TRADING ACTIVITIES
Income from Construction Activities* 71,593,539 -
Income from Trading Activities 38,807,510 2,412,204
110,401,049 2,412,204
* Tax Deducted at Source Rs.1,774,401 /- (Previous year Rs Nil)
SCHEDULE-15
OTHER INCOME
Income from Deffered Credit * 23,470,009 24,560,347
Interest
-On Loans ** 35,403,265 22,723,978
-On Tax Refund 4,171,304 683,987
Provision no longer required written back 1,066,894 -
64,111,472 47,968,312
* Tax Deducted at Source Rs. 398,755/- (Previous year Rs 3,246,681/-)
** Tax Deducted at Source Rs. 2,214,952/- (Previous year Rs 2,960,934/-)
SCHEDULE-16
CONSTRUCTION COST AND STORES CONSUMED
Cost of Trading Goods Sold 38,808,164 2,412,204
Cost of Construction Activities 71,593,539 -
110,401,703 2,412,204
5 MMSL.p65 307 8/19/2009, 12:31 PM


RUPEES
March 31, 2009 March 31, 2008
SCHEDULE-17
PERSONNEL, ADMINISTRATIVE AND OTHER EXPENSES
Personnel Expenses
Salaries Wages and Bonus 2,645,792 2,432,535
Contribution to Provident and other funds 97,390 70,792
Administrative and Other Expenses
Legal and Professional 107,591 68,382
Rates and Taxes 306,064 461,111
Insurance 1,437,183 1,453,020
Donation 442,000 -
Repair and Maintenance
- Building 5,623,603 3,855,218
- Plant and Machinery 15,526,396 17,847,756
- Others 10,746,204 10,483,189
Lease Rentals 21,865 -
Foreign Exchange Fluctuation Exp. 416,530 -
Audit Fees 466,508 466,294
Advances Written off 1,190,000 -
Miscellaneous Expenditure 11,330 15,874
Deffered Revenue Expenditure Written Off 12,241,076 12,241,076
51,279,532 49,395,247
SCHEDULE-18
FINANCIAL EXPENSES
Interest on Inter Corporate Loans 166,832,965 151,681,834
Bank Charges 50,898 6,423
166,883,863 151,688,257
5 MMSL.p65 308 8/19/2009, 12:31 PM


SCHEDULE-19
The Company is in the business of construction of hospitals, leasing of medical & other equipment and trading of goods to
customers.
1. Accounting Conventions
The financial statements are prepared to comply in all material aspects with all the applicable accounting principles in India,
the applicable accounting standards notified under section 211(3C) of the Companies Act, 1956 and the relevant provisions
of the Companies Act, 1956.
a) The Company is in the business of constructing and leasing of medical and other equipments. Income from leasing
activity is recognized on straight line basis over the period of contract. Contingent lease rent is recognized based on the
occurrence of the contingency.
b) Revenue on sales of goods is recognized on the transfer of all the risk and reward of the property to purchaser subject
to reasonable certainty of sales consideration.
3. Fixed Assets
a) Fixed Assets are stated at their original cost including freight, duties, taxes and other incidental expenses relating to
b) Expenses of revenue nature, which can be regarded as incidental and related to the fixed assets are transferred to
“Preoperative Expenditure Pending Capitalisation”. These expenses are allocated to fixed assets in the year of
commencement of the related project.
4. Depreciation
a) Depreciation is charged on the straight line method at the rates specified in schedule XIV of the Companies Act, 1956
on a prorata basis.
b) Assets costing not more than Rs 5,000/- each individually have been depreciated at 100%.
5. Borrowing Cost
Borrowing cost that are directly attributable to the acquisition, installation of the fixed assets have been capitalized in
accordance with the Accounting Standard 16 “Borrowing Cost”. Other borrowing costs are recognized as an expense in the
period in which they are incurred. Capitalization of the borrowing costs ceases when substantially all activities necessary to
prepare the qualifying assets for its intended use or sale are complete.
6. Taxation
that they will be realized and are reviewed for the appropriateness of their respective carrying value at each balance sheet
date.
5 MMSL.p65 309 8/19/2009, 12:31 PM


7. Inventories
Inventories are valued at lower of cost or net realizable value. Cost for this purpose is calculated on a “First In First Out”
method.
8. Investments
a) Investments are classified into current investments and long-term investments. The cost of investments includes
b) Long-term investments are valued at cost. Provision for diminution is made to recognize a decline, other than temporary
in nature.
c) Current Investments are carried at lower of cost or fair value.
9. Leases
Operating Lease
The assets given under Operating lease are shown in Balance Sheet under fixed assets and depreciated on a basis consistent
with the depreciation policy of the Company. The lease income is recognized in the Profit & Loss Account on accrual basis. The
initial direct cost incurred for finalizing the lease arrangement is recognized as expense immediately in the Profit & Loss
Account.
10. Miscellaneous Expenditure
a) Preliminary expenses are amortised over a period of 10 years.
b) Deferred Revenue Expenditure includes consultancy charges for structuring the business and is being amortised over a
period of 5 years.
11. Provision and Contingencies
A provision is recognized when there is a present obligation as a result of past events and it is probable that an outflow of a
each Balance Sheet date and adjusted to reflect the current estimates.
Contingent liabilities are disclosed after an evaluation of facts and legal aspects of the matter involved.
C. NOTES TO ACCOUNTS
1. Capital Contracts
RUPEES
Estimated value of Contracts remaining to be executed 174,716,868 1,700,000
Less: Capital Advances 4,440,212 1,190,000
Net Amount 170,276,656 510,000
2. In the Financial year 2001-02, the Company had paid Non Compete fees as per the agreement, amounting to Rs. 61,200,000/-.
In accordance with the stated accounting policy, the same is being amortized over a period of five years.
3. As at December 10, 2001 the Company had entered into an agreement with a healthcare service provider to construct a
hospital building. The construction, as aforesaid had been completed and the building handed over as on March 31, 2005 to
the healthcare service provider for a consideration of Rs. 243,100,018/-. The said consideration is repayable in equal installments
over 26.5 years from the handover date.
As of March 31, 2009, out of the aforesaid consideration an amount of Rs. 35,232,962/- (Previous year Rs. 26,424,722/-) has
fallen due for payment. Of which the unpaid amount has been shown under the head sundry debtors. The balance amount not
due amounting to Rs. 193,297,464/- (Previous year Rs. 202,105,704/-) has been disclosed under Loans and Advances. In
addition, since the receipt of the consideration of Rs. 243,100,018/- is spread over 26.5 years, an income amounting to
Rs. 23,470,009/- (Previous year Rs. 24,560,347/-), which is receivable based on a fixed percentage of the turnover of the
healthcare service provider has been accrued and disclosed under Loans and Advances as deferred credit.
The Company has started to construct new building in current financial year, and progress billing for the said building has
been made amount to Rs. 74,964,924/- up to 31st March’2009.
5 MMSL.p65 310 8/19/2009, 12:31 PM


4. The Company had entered into a lease with a healthcare service provider on December 10, 2001 for supply of medical, other
equipments and fixtures for an initial term of 30 years. Under the terms of the lease, the company is responsible for:
i. Acquisition of equipment including its repair and servicing;
ii. Ensuring adequate insurance coverage for the assets; and
iii. Replacement of any existing equipment or suitable equipment in lieu thereof.
As per terms, lease rentals based on a fixed percentage of the turnover of the healthcare service provider are due to the
Company on a monthly basis. Accordingly, as at March 31, 2009 an amount of Rs. 97,151,867/- (Previous year
Rs. 122,801,730/-) has been accrued as lease rentals for the current year. The lease rent is contingent on turnover, and
therefore cannot be quantified for any future periods. The amount outstanding as at March 31, 2009 amounting to
Rs. 292,245,736/- (Previous year Rs. 232,180,445/-) has been disclosed under Sundry Debtors.
5. Performance Guarantee of Rs. 78,300,000/- had been deposited with the healthcare service provider, in earlier years, as per
the agreements mentioned in point 3 and 4 above and disclosed under Loans & Advances.
6. The Movable Fixed Assets of the company are hypothecated by way of a first charge against loan taken by the holding
company, Max Healthcare Institute Limited.
7. The movement of provision for deferred taxes is given below:
(RUPEES)
Particulars Opening as at Addition Deletion/ Closing as at
Depreciation related 51,124,158 1,749,894 - 52,874,052
Preliminary & Deferred Revenue Expenses 8,600,856 - (4,160,741) 4,440,115
Unabsorbed Depreciation - - (49,911,291) (49,911,291)
Reversal due to Tax Rate (1,490,215) - - (1,490,215)
Total 58,234,799 1,749,894 54,072,032 5,912,661
Deferred Tax assets are created to the extent of their realisability.
8. Earning Per Share:
a) Profit after tax (Rs.) 24,996,451 10,629,535
b) Weighted Average Number of Equity Shares 14,142,535 14,142,535
c) Earning Per Share (Rs.) 1.77 0.75
d) Number of Shares Outstanding at the beginning of the Year 14,142,535 14,142,535
e) Number of Shares Outstanding at the end of the Year 14,142,535 14,142,535
9. Related Parties (as identified by the Management) are classified as under

Ultimate Holding Company Max India Limited
Holding Company Max Healthcare Institute Limited
Subsidiary ALPS Hospital Limited
Neeman Medical International Inc., USA, Max UK Ltd. UK, Pharmax Corporation Ltd.,
Max Neeman Medical International Ltd., Max HealthStaff International Ltd.
5 MMSL.p65 311 8/19/2009, 12:31 PM


Summary of significant related party transactions (as identified by management) carried out in ordinary course of
business are as follows:
RUPEES
S.No Particulars Max Healthcare ALPS Hospital
Institute Limited Private Limited
(Holding Company) (Subsidiary Company)
1. Loan Taken 116,364,413 -
(187,990,529) (-)
2. Purchase of Investment - 93,000
(-) (-)
3. Expenses : Services Received 3,398,190 -
(2,323,094) (-)
4. Sales 1,500,315 -
(-) (-)
5. Loan Given - 17,227,407
(-) (129,901,380)
6. Interest Expenses/Capitalised* 167,163,531 -
(151,681,834) (-)
7. Interest Income - 31,697,398
(-) (22,723,978)
8. Amount Outstanding
a. Against Loan taken 1,402,634,889 -
(1,286,270,476) (-)
b. Sundry Creditors Balance 3,398,190 -
(-) (-)
c. Interest Payable 351,803,455 -
(306,679,835) (-)
d. Against Loan Given - 257,056,446
(-) (239,829,039)
e. Interest Receivable - 54,457,103
(-) (24,911,696)
f. Other Receivable 367,203 1,127,513
(-) (1,127,513)
* Of which the interest capitalized amount of Rs. 330,566/-(Previous Year Rs. Nil) payable to Max Healthcare Institute Ltd.
10. Leases
Accounting for leases has been made in accordance with Accounting Standard-19 issued by the Institute of Chartered
Accountants of India. Following are the details of lease transactions for the year:
Finance Lease
The Company has not entered into any finance lease agreement.
Operating Lease
Income from lease rentals recognized for the year is Rs. 97,151,867/- (Previous Year Rs. 122,801,730/-) As mentioned above,
the company has entered into an agreement for supply of equipment on lease. The lease rent is entirely contingent on
turnover, hence cannot be quantified for any future periods (Refer point C 4 above).
Details of Assets given under operating Lease are as under:
(RUPEES)
Particulars Gross Carrying Depreciation Accumulated
Amount for the Year Depreciation
Assets 438,080,074 29,038,124 124,596,537
(438,080,074) (29,117,682) (95,558,413)
5 MMSL.p65 312 8/19/2009, 12:31 PM


11. As the Company operates in a single business segment of construction of hospitals and leasing of medical & other equipment,
the provisions of Accounting Standard 17 on Segment Reporting is not applicable to the Company.
The Company operates in single geographical segment.
12. Auditors Remuneration:
(RUPEES)
Particulars Current Year Previous year
Audit Fees* 441,200 449,440
Out of Pocket Exp.* 16,854 16,854
Total 458,054 466,294
* Including Service Tax and Education Cess
13. During the previous year, ALPS Hospital Private Limited (the subsidiary company) has set up a multi specialty healthcare
facility at Gurgaon on July 2, 2007. To fund the said project, an amount of Rs. 17,227,407/- has been given to the subsidiary
as unsecured loan.
14. The Company has initiated the process of identifying the Micro, Small and Medium Enterprises as defined under the “Micro,
such creditor covered under the said act.
The previous year figures in relation to disclosures for small scale industrial (SSI) undertakings have been reclassified and
grouped with other creditors.
15. Additional Information pursuant to the provisions of paragraphs 3 of Part – II of Schedule VI of the Companies Act, 1956.
Purchase, Sales and Stock of Goods Purchased for Sale
(As certified by the Management)
Sl. No Description Opening Stock Purchases Sales Closing Stock
Qty. Rs. Qty. Rs. Qty. Rs. Qty. Rs.
1 Stunt - - 329 20,653,792 328 20,623,792 1 30,000
(-) (-) (-) (-) (-) (-) (-) (-)
2 Medical Equipment - - 23 9,633,891 23 9,633,237 - -
(-) (-) (-) (-) (-) (-) (-) (-)
3 IT Equipment - - 1 8,550,481 1 8,550,481 - -
(-) (-) (-) (-) (-) (-) (-) (-)
4 Others - - - - - - - -
(-) (2,412,204) (-) (-) (-) (2,412,204) (-) (-)
16. Previous year’s figures have been regrouped/reclassified, wherever considered necessary, to conform to current year’s classification.
17. Other disclosure requirements of Schedule VI to the Companies Act, 1956 are not applicable to the Company.
SUJATHA RATNAM Director

JUNE 24, 2009 ROHIT GANDHI Company Secretary
5 MMSL.p65 313 8/19/2009, 12:31 PM


Date Month Year
N I L N I L
Bonus Issue Others
N I L N I L
1 5 5 2 9 7 3 1 5 5 2 9 7 3
SOURCES OF FUND
1 4 1 4 2 5 3 0 0 0
N I L 1 4 0 2 6 3 5
5 9 1 3
3 2 7 4 0 7 1 3 4 7 5 9
1 0 1 7 0 5 1 8 6 8 8
Accumulated Losses
6 5 0 6 8
3 3 0 2 7 8 3 5 7 6 0 3
+ - Profit/Loss before Tax + - Profit/Loss after Tax
√ 2 7 3 2 6 √ 2 4 9 9 6
+ - Earning per Share in Rs. Dividend Rate (%)
Basic and Diluted N I L
√ 1 . 7 7
Product Description C O N S T R U C T I O N
L E A S I N G &
T R A D I N G
5 MMSL.p65 314 8/19/2009, 12:31 PM

ALPS HOSPITAL LIMITED
(Previously ALPS HOSPITAL PRIVATE LIMITED)
Directors’ Report
Your Directors are pleased to present their Twentieth Annual Report ADDITIONAL INFORMATION
along with the Audited Accounts for the financial year ended March
Information in accordance with the provisions of Section 217(1)(e)
31, 2009.
of the Companies Act, 1956 read with the Companies (Disclosure
OPERATIONS of Particulars in the Report of Board of Directors) Rules, 1988, are
as follows:
During the second year of operations of your Company, the income
from healthcare services increased by 120% from Rs.14 crore in A. Conservation of Energy :
2007-08 to Rs.31 crore in 2008-09. The Company has witnessed a
The Company has taken measures to reduce the energy
turn around in Operating profits or profit before depreciation,
consumption, by using energy efficient equipment,
interest and tax (PBDIT), from a loss of Rs.1.50 crore in 2007-08 to
incorporating latest technology and regular maintenance.
a profit of Rs.1.4 crore in 2008-09.
B. Research & Development and Technology Absorption : Nil
The highlights of operations in 2008-09 are given below:
C. Foreign Exchange Earnings and Outgo :
• The Company performed over 180 Ortho-surgeries, over 700
Obstetrics & Gynaecology surgeries and over 1070 other (Rs)
surgeries and procedures.
For the For the
• The average number of operational beds at hospital increased year ended year ended
from 53 in 2007-08 to 74 in 2008-09, with an average March 31, 2009 March 31, 2008
occupancy gone up from 41% to 45%. i) Foreign Exchange Earnings Nil Nil
ii) Foreign Exchange Outgo
• Number of patient episodes (measured by number of invoices
CIF Value of Imports
issued to a patient during any period) recorded over 2.45 lacs
- Capital Goods Nil Nil
in 2008-09.
- Trading Goods Nil Nil
DIVIDEND Others Nil Nil Nil Nil
In view of accumulated losses, your Directors do not recommend DIRECTOR’S RESPONSIBILITY STATEMENT
any dividend for the year under review.
ISSUANCE OF FURTHER SHARES 1956, the Directors confirm that:
During the year under review, your Company issued and allotted (i) In the preparation of annual accounts, the applicable
9,300 Equity Shares of Rs. 10/- each to Max Medical Services accounting standards have been followed, along with proper
Limited, on Right basis. With the aforesaid allotment, the paid up explanation relating to material departures;
Share Capital of your Company stood increased to Rs. 5,00,000/-.
(ii) The Directors had selected such accounting policies and applied
CONVERSION OF THE COMPANY INTO A PUBLIC LIMITED them consistently and made judgments and estimates that
COMPANY are reasonable and prudent, so as to give a true and fair view
As informed last year, your Company was converted into a public of the state of affairs of the Company at the end of the financial
Company. The Registrar of Companies, National Capital Territory year and of the profit or loss of the Company for that period;
of Delhi and Haryana had issued a fresh Certificate of Incorporation (iii) The Directors had taken proper and sufficient care for the
on February 23, 2009 reflecting the change of name of the Company maintenance of adequate accounting records in accordance
as Alps Hospital Limited. with the provisions of the Companies Act, 1956 for
PARTICULARS OF DEPOSITS safeguarding the assets of the Company and for preventing
During the year under review, your Company has not accepted any
deposits from the public. (iv) The Directors had prepared the annual accounts on a going
concern basis.
6 ALPS.p65 317 8/19/2009, 12:31 PM

Directors’ Report
PARTICULARS OF EMPLOYEES Annual General Meeting and is eligible for re-appointment. The
Company has obtained from them a Certificate to the effect, that
The Company does not have any employee who is covered under
their re-appointment, if made, will be in conformity with the limits
the provisions of Section 217 (2A) of the Companies Act, 1956,
read with the Companies (Particulars of Employees) Rules, 1975.
DIRECTORS
For and on Behalf of the Board of Directors
In accordance with the provisions of the Companies Act, 1956,
Mr. Arvind Kakar is liable to retire by rotation at the ensuing Annual New Delhi ARVIND KAKAR Director
General Meeting and being eligible, offers himself for July 23, 2009 NEERAJ BASUR Director
re-appointment.
AUDITORS

Auditors of the Company, retires at the conclusion of the ensuing
6 ALPS.p65 318 8/19/2009, 12:31 PM

Auditors’ Report
TO THE MEMBERS OF ALPS HOSPITAL LIMITED ii. (a) The inventory has been physically verified by the
management during the year. In our opinion, the
1. We have audited the attached Balance Sheet of Alps Hospital
frequency of verification is reasonable.
Limited as at March 31, 2009, and the related Profit and Loss
Account and Cash Flow Statement for the year ended on that (b) In our opinion, the procedures of physical
date annexed thereto, which we have signed under reference verification of inventory followed by the
to this report. These financial statements are the responsibility management are reasonable and adequate in
of the company’s management. Our responsibility is to express relation to the size of the company and the nature
an opinion on these financial statements based on our audit. of its business.
2. We conducted our audit in accordance with the auditing (c) On the basis of our examination of the inventory
standards generally accepted in India. Those Standards require records, in our opinion, the company is
that we plan and perform the audit to obtain reasonable maintaining proper records of inventory. The
assurance about whether the financial statements are free of discrepancies noticed on physical verification of
material misstatement. An audit includes examining, on a inventory as compared to book records were not
test basis, evidence supporting the amounts and disclosures material.
iii. (a) The company has not granted any loans, secured
or unsecured, to companies, firms or other parties
by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a
301 of the Act.
(b) The company has not taken any loans, secured or
as amended by the Companies (Auditor’s Report) (Amendment) unsecured, from companies, firms or other parties
Order, 2004, issued by the Central Government of India in covered in the register maintained under Section
terms of sub-section (4A) of Section 227 of ‘The Companies 301 of the Act.
Act, 1956’ of India (the ‘Act’) and on the basis of such checks iv. In our opinion and according to the information and
of the books and records of the company as we considered explanations given to us, having regard to the
appropriate and according to the information and explanation that certain items purchased are of special
explanations given to us, we further report that: nature for which suitable alternative sources do not exist
i. (a) The company is maintaining proper records for obtaining comparative quotations, there is an
showing full particulars including quantitative adequate internal control system commensurate with
details and situation of fixed assets. the size of the company and the nature of its business
for the purchase of fixed assets and for the sale of goods
(b) The fixed assets are physically verified by the and services. Further, on the basis of our examination
management according to a phased programme of the books and records of the company, and according
designed to cover all the items over a period of to the information and explanations given to us, we
three years, which in our opinion, is reasonable have neither come across nor have been informed of
having regard to the size of the company and the any continuing failure to correct major weaknesses in
nature of its assets. Pursuant to the programme, the aforesaid internal control system.
a portion of the fixed assets has been physically
verified by the management during the year and v. In our opinion and according to the information and
no material discrepancies between the book explanations given to us, the Company has not entered
records and the physical count have been noticed. into any contracts or arrangements referred to in Section
301 of the Act.
and explanations given to us, a substantial part vi. The company has not accepted any deposits from the
of fixed assets have not been disposed of by the public within the meaning of Sections 58A and 58AA
company during the year. of the Act and the rules framed there under.
6 ALPS.p65 319 8/19/2009, 12:31 PM

Auditors’ Report
vii. In our opinion, the company has an internal audit system xvi. In our opinion, and according to the information and
commensurate with its size and nature of its business. explanations given to us, the company has not given
any guarantee for loans taken by others from bank of
financial institutions during the year
section (1) of Section 209 of the Act for any of the xvii. On the basis of an overall examination of the balance
products of the company. sheet of the company, in our opinion and according to
ix. (a) According to the information and explanations
given to us and the records of the company no funds raised on a short-term basis which have been
examined by us, in our opinion, the company is used for long-term investment.
generally regular in depositing the undisputed xviii. The company has not made any preferential allotment
statutory dues including provident fund, investor of shares to parties and companies covered in the
education and protection fund, income-tax, sales- register maintained under Section 301 of the Act during
tax, wealth tax, service tax, customs duty, excise the year.
duty, cess and other material statutory dues as
applicable with the appropriate authorities. xix. The company has not issued any debentures during the
year.
(b) According to the information and explanations
given to us and the records of the company xx. The company has not raised any money by public issues
examined by us, there are no dues of income-tax, during the year.
sales tax, wealth tax, service tax, customs duty, xxi. During the course of our examination of the books and
excise duty and cess which have not been records of the company, carried out in accordance with
deposited on account of any dispute. the generally accepted auditing practices in India, and
x. The company has accumulated losses, as at March 31, according to the information and explanations given to
2009 more than fifty percent of its net worth and has us, we have neither come across any instance of fraud
incurred cash losses in the financial year ended on that on or by the company, noticed or reported during the
date and in the immediately preceding financial year. year, nor have we been informed of such case by the
management.
xi. According to the records of the company examined by us
and the information and explanation given to us, the 4. Further to our comments in paragraph 3 above, we report that:
company has not defaulted in repayment of dues to any
financial institution or bank as at the balance sheet date.
xii. The company has not granted any loans and advances necessary for the purposes of our audit;
xiii. The provisions of any special statute applicable to chit from our examination of those books;
applicable to the company. (c) The Balance Sheet, Profit and Loss Account and Cash
xiv. In our opinion, the company is not a dealer in shares, agreement with the books of account;
securities, debentures and other investments
(d) In our opinion, the Balance Sheet, Profit and Loss
explanations given to us, the company has given
guarantee for loans taken by other healthcare services
provider. However, this is not considered prejudicial by
the company to its interests. (e) On the basis of written representations received from
6 ALPS.p65 320 8/19/2009, 12:31 PM

Auditors’ Report
the directors, as on March 31, 2009 and taken on record (ii) in the case of the Profit and Loss Account, of the
by the Board of Directors, none of the directors is loss for the year ended on that date; and

according to the explanations given to us, the said V.NIJHAWAN
financial statements together with the notes thereon Partner
and attached thereto give in the prescribed manner the Membership Number F-87228
generally accepted in India:
affairs of the company as at March 31, 2009;
6 ALPS.p65 321 8/19/2009, 12:31 PM


RUPEES
March 31, 2009 March 31, 2008
SOURCES OF FUNDS
Share Capital 1 500,000 407,000
LOAN FUNDS
Unsecured Loan 2 427,946,000 422,682,307
428,446,000 423,089,307
FIXED ASSETS 3
Gross Block 462,235,202 440,961,118
Less: Depreciation 44,108,990 21,253,596
Net Block 418,126,212 419,707,522
Capital Work In Progress 682,554 4,380,245
418,808,766 424,087,767
Inventories 20,304,192 17,811,635
Sundry Debtors 19,992,469 11,715,687
Cash and Bank Balances 13,664,314 7,613,933
Loans and Advances 8,379,378 4,499,756
62,340,353 41,641,011
Less : CURRENT LIABILITIES AND PROVISIONS 5
Provisions 1,364,257 661,903
173,837,921 106,880,897
NET CURRENT ASSETS (111,497,568) (65,239,886)

428,446,000 423,089,307
V. NIJHAWAN ARVIND KAKAR Director
Partner NEERAJ BASUR Director
Membership No. F 87228
Price Waterhouse
Gurgaon New Delhi
JUNE 24, 2009 JUNE 24, 2009
6 ALPS.p65 322 8/19/2009, 12:31 PM

RUPEES
March 31, 2009 March 31, 2008
INCOME
Income from Healthcare Services 6 306,915,563 139,262,936
Other Income 7 1,291,007 479,031
308,206,570 139,741,967
EXPENDITURE
Stores and Spares Consumed 8 61,928,506 30,612,196
Personnel, Operating and Administrative 9 231,784,948 124,238,961
Depreciation 3 22,855,394 21,253,596
364,508,467 203,032,576
(LOSS) BEFORE TAXATION (56,301,897) (63,290,609)

Tax Expense 11 591,479 390,534
(LOSS) AFTER TAXATION (56,893,376) (63,681,143)

(LOSS) BROUGHT FORWARD (64,241,426) (560,283)
BALANCE CARRIED FORWARD TO BALANCE SHEET (121,134,802) (64,241,426)

Earning Per Share (Rs per equity share of Rs 10/- each)
- Basic and Diluted (1,307.81) (1,564.65)
No. of Shares used in computing earning per share

- Basic and Diluted 43,503 40,700
Price Waterhouse
Gurgaon New Delhi
JUNE 24, 2009 JUNE 24, 2009
6 ALPS.p65 323 8/19/2009, 12:31 PM

RUPEES
Schedule For the year ended For the year ended
March 31, 2009 March 31, 2008
Net (Loss) before tax and extraordinary items (56,301,897) (63,290,609)
Adjustments for:
Depreciation 22,855,394 21,253,596
Interest Income (51,843) (6,518)
Provision for Doubtful Debts 1,377,115 -
Provision for Leave encashment and Gratuity 739,630 605,149
Operating Profit Before Working Capital Changes 14,937,254 (15,287,211)
Adjustments for:
Trade receivables (9,653,896) (11,715,687)
Other receivables (3,797,488) (3,053,940)
Inventories (2,492,557) (17,811,635)
Trade payables 33,265,737 58,153,319
Other payables - 6,541,437
Cash Generated From Operations 32,259,050 16,826,283
Direct taxes refunded/(paid) - Net (710,890) -
FBT( Paid) - (333,000)
Direct taxes refunded/(paid) - Net - (64,341)
Cash From / (Used in) Operating Activities 31,548,160 16,428,942
Purchase of fixed assets (21,140,283) (310,082,013)
Capital Work in Progress 4,380,245 80,895,851
Increase in Preoperative expense - 25,612,867
Interest Received (Revenue) 51,843 6,500
Finance Lease Rent Payment (12,780,068) -
Cash From/ (Used In) Investing Activities (29,488,263) (203,566,795)
Proceeds from Long term borrowings 17,320,407 194,299,659
Interest Paid (6,866,283) -
Interest on Finance Lease (6,463,640) -
Cash From/ (Used In) Financing Activities 3,990,484 194,299,659
Net Increase/(Decrease) in Cash and Cash Equivalents 6,050,381 7,161,806
Cash and Cash Equivalents - Opening Balance 7,613,933 452,127
Cash and Cash Equivalents - Closing Balance 13,664,314 7,613,933
Notes:
1 The above Cash Flow statement has been prepared under the “Indirect Method” as set out in the Accounting Standard-3 on
Cash Flow Statements notified U/S 211(3C) of Companies Act 1956.
2 Cash and Cash Equivalents at the end of the year consist of Cash, Cheques in hand and balances with banks.
RUPEES
As at As at
March 31, 2009 March 31, 2008
Cash in Hand 539,719 641,785
Fixed Deposits 1,500,000 100,000
Balance with banks 11,624,595 6,872,148
Total 13,664,314 7,613,933
Cash Flow Statement
Price Waterhouse
Gurgaon New Delhi
JUNE 24, 2009 JUNE 24, 2009
6 ALPS.p65 324 8/19/2009, 12:31 PM


RUPEES
As at As at
March 31, 2009 March 31, 2008
SCHEDULE-1
SHARE CAPITAL
AUTHORISED
1,250,000 (Previous year 1,250,000) Equity Shares of Rs 10/- each 12,500,000 12,500,000
12,500,000 12,500,000
50,000 (Previous year 40,700) Equity Share of Rs 10/- each 500,000 407,000
- 50,000 Equity Shares (Previous year 40,700 Equity Shares) are
held by Max Medical Services Limiited, the holding company and it’s nominees.
500,000 407,000
SCHEDULE-2
LOAN FUNDS
UNSECURED LOANS
-From Max Medical Services Limited, Holding Company * 257,056,446 239,829,039
-From Max Healthcare Institute Limited, 65,275,962 64,459,608
Holding company of Max Medical Services Limited *
Finance Leased Assets Obligation 105,613,592 118,393,660
427,946,000 422,682,307
* Repayable on Demand
SCHEDULE-3
FIXED ASSETS
(Refer Notes B3, B4, B5,B9, C2 & C11 on Schedule 12) RUPEES
Particulars As at Additions Deletions/ As at As at For the Deletions/ As at As at As at
April 1, Adjustments March 31, April 1, years Adjustments March 31, March 31, March 31,
2008 2009 2008 2009 2009 2008
Building 196,250,612 8,568,648 - 204,819,260 2,243,352 3,310,038 - 5,553,390 199,265,870 194,007,260
Plant & Machinery 91,032,647 3,003,373 - 94,036,020 2,945,332 4,590,299 - 7,535,631 86,500,389 88,087,315
Furniture & Fixtures 14,638,894 2,561,438 - 17,200,332 4,201,209 1,092,182 - 5,293,391 11,906,941 10,437,685
Office Equipments & Computers 4,212,640 480,519 - 4,693,159 369,402 560,746 - 930,148 3,763,011 3,843,238
Medical Equipments 8,047,900 2,593,813 - 10,641,713 408,521 658,384 - 1,066,905 9,574,808 7,639,379
SUB TOTAL (A) 314,182,693 17,207,791 - 331,390,484 10,167,816 10,211,649 - 20,379,465 311,011,019 304,014,877
LEASED ASSETS
Tangible Assets
Plant & Machinery 13,152,056 1,400,000 - 14,552,056 927,988 1,317,949 - 2,245,937 12,306,119 12,224,068
Furniture & Fixtures 9,955,915 451,984 - 10,407,899 2,989,109 752,852 - 3,741,961 6,665,938 6,966,806
Office Equipments & Computers 10,201,270 - - 10,201,270 1,074,511 1,431,732 - 2,506,243 7,695,027 9,126,759
Medical Equipments 91,336,924 2,214,308 - 93,551,232 5,911,959 8,877,510 - 14,789,469 78,761,763 85,424,965
Vehicles 1,221,133 - - 1,221,133 72,710 116,008 - 188,718 1,032,415 1,148,423
Intangible Assets
Computer Software 911,128 - - 911,128 109,503 147,694 - 257,197 653,931 801,625
SUB TOTAL (B) 126,778,426 4,066,292 - 130,844,718 11,085,780 12,643,745 - 23,729,525 107,115,193 115,692,646
TOTAL ( A) + ( B) 440,961,119 21,274,083 - 462,235,202 21,253,596 22,855,394 - 44,108,990 418,126,212 419,707,523
Capital WIP 682,554 4,380,245
GRAND TOTAL 418,808,766 424,087,768
Notes :
1. Capital work in progress includes Capital Advances of Rs. 6,82,554 (Previous year Rs. 1,646,848)
2 Additions include interest capitalised of Rs. Nil (Previous year Rs. 10,784,866) and other preoperative expenses capitalised Rs. Nil (Previous year Rs. 25,259,234)
6 ALPS.p65 325 8/19/2009, 12:31 PM


RUPEES
As at As at
March 31, 2009 March 31, 2008
SCHEDULE-4
A. CURRENT ASSETS
INVENTORIES
(Refer Notes B6 on Schedule 12)
Stock of Medicines and Consumables 10,933,025 7,812,050
Medical and Surgical Instruments 9,371,167 9,999,585
20,304,192 17,811,635
Sundry Debtors
(Unsecured)
Debtors exceeding Six Months
-Considered Good 1,503,278 383,095
-Considered Doubtful 1,377,115 -
Less : -
Provision for Doubtful Debts (1,377,115) -
Other Debts
-Considered Good 18,489,191 11,332,592
19,992,469 11,715,687
Cash and Bank Balances
Cash-in-hand 539,719 641,785
Balance with Scheduled Banks
-In Margin Accounts 100,000 100,000
-In FDR Accounts 1,500,000 -
13,664,314 7,613,933
B. LOANS AND ADVANCES
Unsecured
Tax Deducted at Source 774,451 63,561
Interest Accured but not Due 36,678 695
Security Deposit 1,955,876 2,015,124
Staff Advances 44,214 75,170
Prepaid Expenses 2,259,765 624,263
Income Accrued 2,624,933 477,115
Other Advances 683,461 1,243,828
8,379,378 4,499,756
6 ALPS.p65 326 8/19/2009, 12:31 PM


RUPEES
As at As at
March 31, 2009 March 31, 2008
SCHEDULE-5
CURRENT LIABILITIES AND PROVISIONS
A. CURRENT LIABILITIES
(Refer Notes B10 & C8 on Schedule 12)
Sundry Creditors
-Total outstanding dues of Micro & Small Enterprises - -
-Total outstanding dues of other than Micro Enterprise & Small Enterprises* 102,571,719 67,344,240
Advance from Customers 2,169,033 856,032
Interest Accured but not Due** 62,614,920 29,625,988
Other Liabilities 5,117,992 8,392,734
172,473,664 106,218,994
B. PROVISIONS
(Refer Notes B7, B8 & C8 on Schedule 12)
Leave encashment 1,132,424 542,485
Gratuity 212,355 62,664
Provision for Fringe Benefit Tax 981,233 389,754
Less : Advance Fringe Benefit Tax (961,755) 19,478 (333,000) 56,754
1,364,257 661,903
* Payable to
Max Medical Services Limited , Holding Company , Rs. 11,27,513/- ( Previous year Rs. 11,27,513/-)
Max Healthcare Institute Limited, Holding Company of Max Medical Service Limited Rs. 72,511,421/-
(Previous year Rs. 40,232,208/-)
** Payable to
Max Medical Services Limited , Holding Company , Rs. 29,545,407/- ( Previous year Rs. 24,911,695/-)
Max Healthcare Institute Limited, Holding Company of Max Medical Service Limited Rs. 8,157,818/-
(Previous year Rs. 4,714,293/-)
RUPEES
For the year ended For the year ended
March 31, 2009 March 31, 2008
SCHEDULE-6
INCOME FROM HEALTHCARE SERVICES
Revenue From Hospital 291,275,873 132,915,615
Less : Discount (4,260,969) 287,014,904 (1,788,053) 131,127,562
Trading Sales :
- Drugs, Pharmaceuticals and Medical Supplies 19,900,659 8,135,374
306,915,563 139,262,936
6 ALPS.p65 327 8/19/2009, 12:31 PM


RUPEES
March 31, 2009 March 31, 2008
SCHEDULE - 7
OTHER INCOME
Interest on Bank Deposits 51,843 6,518
Miscellaneous Income 1,160,000 472,513
Provision no longer required written back 79,164 -
1,291,007 479,031
SCHEDULE-8
STORES AND SPARES CONSUMED
Consumption of Medical Consumables 46,755,447 24,275,137
Cost of Traded goods sold
- Drugs, Medicines and Consumables 15,173,059 6,337,059
61,928,506 30,612,196
SCHEDULE-9
A. PERSONNEL
Salaries 51,477,073 28,094,381
Contribution to Provident and Other Funds 2,140,425 1,180,006
Recruitment 150,074 246,890
Staff Welfare 4,210,281 3,106,845
57,977,853 32,628,122
B. OPERATING AND ADMINISTRATIVE EXPENSES
(Refer Note C10(b) on Schedule 12)
Professional and Consultancy Fees 71,448,232 36,416,565
Outside Lab Investigations 14,399,861 4,838,193
Patient Catering Expenses 4,818,556 1,753,143
Rent 282,679 145,788
Lease Rentals 4,800,000 3,744,000
Insurance 1,147,147 850,883
Rates and Taxes 1,215,262 705,352
Repairs and Maintenance
- Building 1,819,248 314,320
- Plant and Machinery 10,729,047 2,933,717
- Others 1,259,259 637,491
Facility Maintenance Expenses 18,100,653 14,376,230
Watch and Ward 3,355,448 1,927,322
Power and Fuel 14,544,000 10,681,389
Printing and Stationery 3,293,475 2,513,626
Travelling and Conveyance 1,562,540 1,182,804
Communication 1,747,382 1,213,686
Provision for Doubtful Debts 1,377,115 -
6 ALPS.p65 328 8/19/2009, 12:31 PM


RUPEES
March 31, 2009 March 31, 2008
SCHEDULE-9 (Contd.)
Legal and Professional Charges 742,505 519,544
Service Charge 15,182,365 5,061,800
Advertisement and Publicity 1,468,753 761,876
Equipment Hiring Charges 165,191 544,040
Charity and Donation 278,000 -
Miscellaneous Expenses 70,377 489,070
Total 173,807,095 91,610,839
TOTAL ((A) + (B)) 231,784,948 124,238,961
SCHEDULE-10
FINANCIAL EXPENSES
(Refer Notes B9(a) & C10(a) on Schedule 12)
Interest on:
Inter Corporate Loan 39,855,215 24,672,937
On Finance Lease 6,463,640 1,478,234
Bank Charges 1,620,764 776,652
47,939,619 26,927,823
SCHEDULE - 11
TAX EXPENSE
Fringe Benefit Tax 591,479 389,754
Income tax for earlier year - 780
591,479 390,534
6 ALPS.p65 329 8/19/2009, 12:31 PM


SCHEDULE – 12
The financials of the Company include the performance of a hospital launched in the previous year. Healthcare facilities have long
gestation periods, ranging from three to five years from the commencement of its operations and accordingly require significant
cash outlay.
1. Accounting Convention
The financial statements are prepared on an accrual basis to comply in all material aspects with all the applicable accounting
principles in India, the applicable accounting standards notified under section 211(3C) of the Companies Act, 1956 and the
relevant provisions of the Companies Act, 1956.
a. Revenue from Hospital is recognised on the performance of related services and includes services for patients undergoing
treatment and pending for billing.
b. Revenue from trading sales is recognised on delivery of goods.
3. Fixed Assets
a. Fixed Assets are stated at their original cost including freight, duties, taxes and other incidental expenses relating to
b. Intangible assets are recognised if they are separately identifiable and the Company controls the future economic
benefits arising out of them. All other expenses on intangible items are charged to the Profit and Loss Account. Intangible
assets are stated at cost less accumulated depreciation.
c. The assets taken on Finance Lease has been capitalised in accordance with the Accounting Standard 19 on “Accounting
for Leases”.
4. Borrowing Costs
Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised
as part of the cost of that asset in accordance with Accounting Standard 16 on “Borrowing Cost”,. Interest on working capital
is charged to Profit and Loss Account.
5. Depreciation
a) Depreciation is charged on straight-line method on a pro-rata basis at rates prescribed under Schedule XIV to the
Companies Act, 1956.
b) Assets acquired on Finance Lease are depreciated over the period of Lease term or at rates prescribed under Schedule
XIV to the Companies Act, 1956, whichever is higher.
c) Assets costing not more than Rs. 5,000/- each individually have been depreciated at 100%.
6. Inventories
Inventories are valued at lower of cost or net realisable value. Cost for this purpose is calculated on a ‘First In First Out’ method.
7. Taxation
that they will be realized and are reviewed for the appropriateness of their respective carrying value at each balance sheet date.
6 ALPS.p65 330 8/19/2009, 12:31 PM


8. Employee Benefits
a) Gratuity
In accordance with the Payment of Gratuity Act, 1972, the Company provides gratuity, a benefit plan (the “Gratuity
Plan”) covering eligible employees. The Gratuity Plan provides a lump sum payment to vested employees at retirement,
death, incapacitation or termination of employment, of an amount based on the respective employee’s salary and the
tenure of employment. The Company has made a provision of Gratuity for its employees, based on the actuarial valuation
made by an independent actuary as at the Balance Sheet date.
b) Provident Fund
Eligible employees receive benefit from Provident Fund, which is a defined contribution plan. The Company and the
employees make monthly contribution equal to a specified percentage of the covered employee salary. The Company
makes contribution to the Government’s Provident Fund.
c) Leave Encashment
Liability in respect for Leave encashment is made based on the actuarial valuation made by an independent actuary as
at the Balance Sheet date.
9. Leases
a) Finance Lease
The Assets acquired under Finance Lease are recognised as an assets and a liability at the lower of the fair value of the
leased assets at the inception of the lease and the present value of minimum lease payments. Lease payments are
apportioned between the finance charge and the reduction of the outstanding liability. The finance charge is allocated
to periods during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the
liability and the charge to Profit and Loss Account.
b) Operating Lease
Lease Rentals accrued under Operating Lease arrangement are charged to Profit and Loss Account on a straight line
basis over the period of the lease.
10. Provisions and Contingencies
A provision is recognized when there is a present obligation as a result of past event, it is probable that an outflow of a
each Balance Sheet date and adjusted to reflect the current tax estimate.
C. NOTES TO THE ACCOUNTS
1. Contingent Liabilities
RUPEES
Bank Guarantees 16,00,000 100,000
2. Capital Commitments
RUPEES
Estimated amount of contracts remaining to be executed on
capital account and not provided for 682,554 4,382,915
Less: Capital Advances 682,554 1,646,848
Balance Value of Contracts NIL 2,736,067
3. The company has in its favour a sub lease for a plot of land in Gurgaon, for an initial period of 97 years, which can be further
renewed for two terms of 97 years each. The plot of land measures 1.23 acres, and the designated usage is for healthcare
facility.
4. During the previous year, the company has entered into a long term service agreement with Max Healthcare Institute Limited,
for availing services in the nature of medical operations & non medical operations.
6 ALPS.p65 331 8/19/2009, 12:31 PM


5. The movement of provision for deferred tax is given below:
RUPEES
Particulars Opening as at Addition Deletion/ Closing as at
Depreciation related 7,967,559 7,522,370 - 15,489,929
Grand Total (A) 7,967,559 7,522,370 - 15,489,929
Deferred Tax Asset
Leased Assets related (35,749,029) 7,855,958 (36,183,169) (64,076,240)
Deduction u/s 43B of the Income Tax Act (203,857) (637,208) - (841,065)
Grand Total (B) (35,952,886) 7,218,750 (36,183,169) (64,917,305)
Net Deferred Tax Liability/ (Assets)(A+B) (27,985,325) 14,741,120 (36,183,169) (49,427,374)
Less: Valuation Allowance (49,427,374)
Net Deferred Tax Liability/ (Assets) NIL
In view of no virtual certainty, the above Deferred Tax Asset is not recognised. Deferred Tax Asset are created to the extent
of their realisability.
6. Earning Per Share:
(Loss) after tax (Rs.) (56,893,376) (63,681,143)
Weighted Average number of Equity Shares 43,503 40,700
Earning Per Share (Rs.) (1,307.81) (1,564.65)
Equity Shares Outstanding at the beginning of the year (No.) 40,700 40,700
Equity Shares Outstanding at the end of the year (No.) 50,000 40,700
7. Micro, Small and Medium Enterprises
The Company has initiated the process of identifying the Micro, Small and Medium Enterprise as defined under the “Micro,
creditor covered under the said act.
The previous year figures in relation to disclosures for small scale industrial (SSI) undertakings have been reclassified and
grouped with other creditors.
8. Gratuity and other post-employment benefit plans:
The following tables summaries the components of net benefit expense recognised in the profit and loss account and the
funded status and amounts recognised in the balance sheet for the respective plans.
Profit and Loss account
RUPEES
Current Year Previous Year Current Year Previous Year
Current service cost 147,161 62,664 810,185 542,485
Interest cost on benefit obligation 5,013 — 43,399 —
Expected return on plan assets — — — —
Benefit Paid — — (3,55,740) (54,582)
Net actuarial( gain) / loss recognised in the year (2,483) — 92,095 54,582
Past service cost 62,664 — 542,485 —
Net benefit expense 212,355 62,664 1,132,424 542,485
6 ALPS.p65 332 8/19/2009, 12:31 PM


Balance sheet
Details of Provision for gratuity and Leave Encashment Benefits.
RUPEES
Defined benefit obligation 212,355 62,664 1,132,424 542,485
Fair value of plan assets — — — —
Less: Unrecognised past service cost — — — —
Plan asset / (liability) (212,355) (62,664) (1,132,424) (542,485)
Changes in the present value of the defined benefit obligation are as follows:
RUPEES
Opening defined benefit obligation 62,664 — 542,485 —
Interest cost 5,013 — 43,399 —
Current service cost 147,161 62,664 810,185 5,42,485
Benefits paid — — (355,740) (54,582)
Actuarial (gains) / losses on obligation (2,483) — 92,095 54,582
Closing defined benefit obligation 212,355 62,664 1,132,424 5,42,485

% % % %
Investments with insurer — — — —
The principal assumptions used in determining gratuity and leave encashment benefit obligations for the Company’s plans are
shown below:

% % % %
Discount rate 7.8 8 7.8 8
Expected rate of return on assets — — — —
Employee turnover — — — —
Healthcare cost increase rate — — — —
The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and
other relevant factors, such as supply and demand in the employment market.
6 ALPS.p65 333 8/19/2009, 12:31 PM


RUPEES
Defined benefit obligation 212,388 62,664 1,132,424 542,485
Plan assets — — — —
Surplus / (deficit) — — — —
Experience adjustments on plan liabilities — — — —
Experience adjustments on plan assets — — — —
9. Segment Reporting
As the Company operates in a single business segment of Healthcare services, the provisions of Accounting Standard 17 on
“Segment Reporting” are not applicable to the Company.
10 Leases
a) Finance Lease
The company has taken on Finance Lease assets, having an aggregate value of Rs. 130,844,718 which has been reflected
in the financial statements in compliance with Accounting Standard 19 on “Accounting for Leases”. The same have been
depreciated at rates prescribed under Schedule XIV to the Companies Act, 1956, whichever is higher. The total minimum
lease payments and maturity profile of finance leases at the Balance Sheet date, the element of interest included in
such payments , and the present value of the minimum lease payments as of March 31,2009 are as follows :
RUPEES
Particulars Total Minimum Interest included Present Value of
Lease Payments in Minimum Minimum Lease
outstanding Lease Payments Payment
Not Later than One Year 29,050,000 11,201,906 17,848,094
(23,310,000) (6,463,640) (16,846,360)
Later than One Year but not later than Five Years 138,502,000 81,200,381 57,301,619
(131,789,000) (68,115,729) (63,673,271)
Later than Five Years 107,289,000 82,187,439 25,101,561
(143,052,000) (106,473,997) (36,578,003)
Total 274,841,000 174,589,726 100,251,274
(298,151,000) (181,053,366) (117,097,634)
b) Operating Lease
During the accounting year 2007-08 the company has taken on Operating Lease, Medical Equipments having an aggregate
value of Rs. 66,044,164. Lease rental of Rs 4,800,000 has been charged to revenue and the future obligation for lease
rental for the same, amounts to Rs. 1,200,000.
Future minimum lease payments and the payment profile of non cancelable operating leases are as follows :
RUPEES
March 31, 2009 March 31,2008
Not later than One Year 1,200,000 4,800,000
Later than One Year not later than Five years — 1,200,000
Later than Five Years — —
Total 1,200,000 6,000,000
6 ALPS.p65 334 8/19/2009, 12:31 PM


11 Related Parties (as identified by the Management) are classified as:
Ultimate Holding Company Max India Limited
Holding Company Max Medical Services Limited, Max Healthcare Institute Limited (Holding Company
for Max Medical Services Limited) .
Neeman Medical International Inc., USA, Max UK Ltd. UK, Pharmax Corporation Ltd.,
Max Neeman Medical International Ltd., Max HealthStaff International Ltd.
Enterprises over which key New Delhi House Services Ltd., Trophy Resorts & Guest Houses Pvt. Ltd., Malsi Estates
management personnel have Ltd., Max India Foundation
significant influence
Summary of significant related party transactions (as identified by management) carried out in ordinary course of
business are as follows:
RUPEES
S. Particulars Max Medical Max Healthcare
No Services Limited Institute Limited
(Holding Company) (Holding Company
of Max Medical
Services Limited)
1. Loan Taken 17,227,407 816,354
(129,901,380) (64,459,608)
2 (a) Finance Lease liability undertaken - 4,066,292
(-) (126,778,424)
(b) Finance Lease Instalment * - 16,846,360
(-) (8,384,766)
(c) Operating Lease Instalment ** - 4,800,000
(-) (3,600,000)
3 (a) Expenses:
For Services Received - 24,532,928
(-) (18,499,539)
(b) For Management Services Received - 15,182,365
(-) (5,061,800)
(c) Purchases of Medicines and Consumables - 52,879,691
(-) (41,886,004)
(d) Interest Expensed/Capitalized *** 31,697,398 14,621,458
(22,723,978) (7,573,777)
4. Income:
Services Rendered - 54,496
(-) (1,284,042)
5. Amount Outstanding-Against Loan taken 257,056,446 65,275,962
(239,829,039) (64,459,608)
6 Finance Leased Assets Obligation - 105,613,592
(-) (118,393,660)
7 Interest accrued but not due 54,457,102 8,157,818
(24,911,695) (4,714,293)
8 Payable for Goods/ Services 1,127,513 31,166,708
(1,127,513) (28,097,564)
9 Payable for Lease Rent - 41,344,713
(-) (12,134,644)
Previous years figures are given in brackets
6 ALPS.p65 335 8/19/2009, 12:31 PM


* Excluding applicable taxes on Finance Lease instalments amounting to Rs. 908,069/-, (Previous year Rs. 493,512/-) and
interest shown separately Rs. 6,463,640/- ( Previous year Rs. 1,478,234/-)
** Excluding applicable taxes on Operating Lease instalments amounting to Rs.192,000/- (Previous year Rs. 144,000/-)
*** Of which the interest capitalized amount of Rs. Nil (Previous year Rs. 3,848,903) and Rs. Nil (Previous year Rs. 297,681/-)
paid/payable to Max Medical Services Ltd. and Max Healthcare Institute Ltd. respectively.
12 Material consumed consists of items of varied nature. Accordingly it is not feasible to give details as required under part II of
Schedule VI to the Companies Act, 1956.
13 Auditors Remuneration
RUPEES
Audit fees * 220,600 224,720
Out of pocket expenses * 22,472 22,472
Total 243,072 247,192
* Including Service Tax
14 Comparative Figures
Previous year’s figures have been regrouped / reclassified, wherever considered necessary, to conform to current year’s
classification.

JUNE 24, 2009 NEERAJ BASUR Director
6 ALPS.p65 336 8/19/2009, 12:31 PM


Date Month Year
N I L N I L
Bonus Issue Others
N I L 9 3
4 2 8 4 4 6 4 2 8 4 4 6
SOURCES OF FUND
5 0 0 N I L
N I L 4 2 7 9 4 6
N I L
4 1 8 8 0 9 N I L
( 1 1 1 4 9 8 ) N I L
Accumulated Losses
1 2 1 1 3 5
3 0 8 2 0 7 3 6 4 5 0 8
√ 5 6 3 0 2 √ 5 6 8 9 3
√ 1 3 0 7 . 8 1 N I L
Product Description H O S P I T A L
6 ALPS.p65 337 8/19/2009, 12:31 PM

6 ALPS.p65 338 8/19/2009, 12:31 PM

MAX HEALTHSTAFF INTERNATIONAL LIMITED
Directors’ Report
Your Directors have pleasure in presenting their Sixth Annual Report C. Foreign Exchange Earnings and Outgo :
along with the Audited Accounts for the year ended March 31,
(Rs. In crore)
2009.
For the For the
OPERATIONS year ended year ended
March 31, 2009 March 31, 2008
To work in US, nurses have to obtain an immigration visas (EB-3
i) Foreign Exchange Earnings 0.79 2.40
visa) which allows them to migrate and work in a healthcare
institute in US. The numbers of such visas, which are provided in
the usual course of US immigration proceedings, are subject to
limits as imposed by the US government. In the recent past and
- Trading Goods Nil Nil
even today, the demand for EB-3 visas far exceeds the quota limit
Others 0.17 0.53
set by the US government. This has led to visa retrogression. Due to
the enforcement of visa retrogression, Company has considerably PARTICULARS OF EMPLOYEES
scaled down its operations till the clarity on immigration laws
The Company does not have any employee, who is covered under
emerges and thus, it is totally dependent on Max India Ltd (holding
the provisions of Section 217 (2A) of the Companies Act, 1956,
company) for financial support to sustain its operations.
read with the Companies (Particulars of Employees) Rules, 1975.
FINANCIAL RESULTS
DIRECTORS
Gross revenue for the year under review was Rs. 156.73 lacs against
Rs. 256.46 lacs in the previous year. The Company incurred a net
the Company’s Articles of Association, Mr. Mukesh Shivdasani is
loss after tax of Rs. 270.49 lacs during the current year against a
due to retire by rotation and is eligible for re-appointment.
loss of Rs. 423.11 lacs in the previous year.
Mrs. Sujatha Ratnam was appointed as an Additional Director of
DIVIDEND
the Company on October 24, 2008 to hold office up to the ensuing
In view of the accumulated losses, your Directors are unable to Annual General Meeting. The Company has received a notice under
recommend any dividend for the year under review. Section 257 of the Companies Act, 1956, from a member proposing
PARTICULARS OF DEPOSITS the candidature of Mrs. Sujatha Ratnam for being appointed as a
Director of the Company.
Your Company has not accepted any deposits from the public during
the year under review. Mr. Analjit Singh resigned from the Board of Directors of the
Company effective October 24, 2008. The Board places on record,
ADDITIONAL INFORMATION its appreciation for the valuable contribution made by Mr. Analjit
Information in accordance with the provisions of Section 217(1)(e) Singh during his association as a Director of the Company.
of the Companies Act, 1956 read with the Companies (Disclosure DIRECTORS’ RESPONSIBILITY STATEMENT
of Particulars in the Report of Board of Directors) Rules, 1988, are
as follows: As per the provisions of Section 217(2AA) of the Companies Act,
A. Conservation of Energy :
i in the preparation of annual accounts, the applicable
The Company has taken measures to reduce the energy accounting standards have been followed along with proper
consumption, by using energy efficient equipment, explanation relating to material departures;
incorporating latest technology and regular maintenance.
ii the Directors had selected such accounting policies and applied
B. Research & Development and Technology Absorption : Nil them consistently and made judgments and estimates that
7 Health Staff.p65 341 8/19/2009, 12:31 PM

Directors’ Report
are reasonable and prudent so as to give a true and fair view AUDITORS
of the state of affairs of the Company at the end of the financial
M/s Nangia & Co., Chartered Accountants, Auditors of the Company
year and of the profit or loss of the Company for that period;
retires at the conclusion of the ensuing Annual General Meeting
iii the Directors had taken proper and sufficient care for the and is eligible for re-appointment. The Company has received from
maintenance of adequate accounting records in accordance them a Certificate to the effect that their re-appointment, if made,
with the provisions of the Companies Act, 1956 for will be in accordance with the limits specified under Section 224(1B)
safeguarding the assets of the Company and for preventing of the Companies Act, 1956.
iv the Directors had prepared the annual accounts, on a going

For and on Behalf of the Board of Directors
concern basis.
New Delhi P. Dwarakanath Director
July 24, 2009 Sujatha Ratnam Director
7 Health Staff.p65 342 8/19/2009, 12:31 PM

Auditors’ Report
1 We have audited the attached Balance Sheet of Max (b) In our opinion, proper books of accounts as required by
HealthStaff International Limited, New Delhi as at March 31, law have been kept by the Company, so far as appears
2009 and the related Profit and Loss Account and Cash Flow from our examination of the books;
Statement for the year ended on that date annexed thereto,
(c) The Balance Sheet, Profit and Loss Account and Cash
which we have signed under reference to this report. These
financial statements are the responsibility of the Company’s
these financial statements based on our audit. (d) In our opinion, the Balance Sheet, Profit and Loss
2 We conducted our audit in accordance with auditing standards
report comply with the requirements of Accounting
generally accepted in India. Those standards require that we
Standards referred to in sub-section (3C) of Section 211
plan and perform the audit to obtain reasonable assurance
of the Act, to the extent applicable.
about whether the financial statements are free of material
misstatement. An audit includes examining on a test basis, (e) On the basis of written representations received from
evidence supporting the amounts and disclosures in the the Directors of the Company and taken on record by
financial statements. An audit also includes assessing the the Board of Directors, none of the Directors is
accounting principles used and significant estimates by disqualified as on March 31, 2009 from being appointed
management, as well as evaluating the overall financial as a Director of the Company in terms of clause (g) of
presentation. We believe that our audit provides a reasonable sub-section (1) of Section 274 of the Act.
basis for our opinion.
3 We draw your attention to Note II(a) on Schedule ‘13’ of Notes according to the explanations given to us, the said
to Accounts, regarding the appropriateness of the “going financial statements read together with ‘Significant
concern” basis used for preparation of these accounts, because Accounting Policies & Notes to Accounts’ in Schedule
the cumulative losses of the company are more than 50% of ‘13’, give the information required by the Act, in the
its “net worth” and the validity of the “going concern” basis manner so required and give a true and fair view in
would depend upon the continuance of the existing financial conformity with the accounting principles generally
support by the Holding Company. These accounts do not accepted in India:
include any adjustments that would result from the
(i). in the case of the Balance Sheet, of the state of
discontinuance of the existing financial support by the Holding
affairs of the Company as at March 31, 2009;
Company.
(ii). in the case of the Profit and Loss Account, of the
4 As required by the Companies (Auditors’ Report) (Amendment)
loss of the Company for the year ended on that
Order, 2004, issued by the Central Government in terms of
date; and
sub-section 4A of section 227 of the Companies Act, 1956,
(hereinafter referred to as the ‘Act’) we give in an annexure, a (iii). In the case of Cash Flow Statement, of the cash
statement on the matters specified in paragraphs 4 and 5 of flows for the year ended on that date.
the said order, to the extent applicable.
RAKESH NANGIA
5 Further to our comments in the annexure referred to in FCA, Partner
paragraph (3) above, we report that: Membership No. 70776
(a) We have obtained all the information and explanations For & on behalf of
which to the best of our knowledge and belief were Nangia & Company
necessary for the purpose of our audit; New Delhi Chartered Accountants
JUNE 15, 2009
7 Health Staff.p65 343 8/19/2009, 12:31 PM

Auditors’ Report
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF AUDITORS’ 4. In our opinion and according to the information and
REPORT OF EVEN DATE ON THE FINANCIAL STATEMENTS FOR explanations given to us, there are adequate internal control
THE YEAR ENDED MARCH 31, 2009. procedures commensurate with the size of the Company and
the nature of its business for purchase of fixed assets and for
On the basis of such checks as we considered appropriate and
sales of services. Further, on the basis of our examination
according to the information and explanation given to us during
and according to the explanations given to us, we have neither
the course of audit, we report that: -
come across nor have we been informed of any instance of
1. (a) The Company is maintaining proper records showing major weaknesses in the aforesaid internal control system of
full particulars, including quantitative details and the Company.
situation of fixed assets.
5. Based on the information and explanations given to us, there
(b) As explained to us, all the fixed assets have been are no transactions that need to be entered into the register
physically verified by the management according to a in pursuance of Section 301 of the Act.
regular program of verification which in our opinion is
6. In our opinion and according to information given to us, the
reasonable having regard to the size of the Company
Company has not accepted deposits from the public within
and the nature of its assets. No material discrepancies
the meaning of Section 58A and 58AA of the Companies Act,
between book records and the physical inventory have
1956 and rules framed there under.
been noticed on such verification.
7. In our opinion, the Company has an internal audit system,
(c) In our opinion and according to the information and
which is commensurate with the size and nature of its
explanations given to us, a substantial part of fixed
business.
assets has not been disposed off/sold during the year
covered by our report and the validity of the “going 8. The Central Government of India has not prescribed the
concern” basis would depend upon the continuance of maintenance of cost records under Section 209(1)(d) of the
the existing financial support by the holding company. Act, for any of the products of the Company.
2. The Company being a service company engaged in the field 9. (a) In our opinion and according to the information and
of health-care staffing, carries no inventories, hence the explanations given to us and according to the books
provisions of Clause 4(ii)(a) to 4(ii)(c) of the Companies and records as produced and examined by us, the
(Auditors’ Report) (Amendment) Order, 2004 are not Company is regular in depositing undisputed statutory
applicable. dues including Provident Fund, Employees’ State
Insurance, Income-Tax, Wealth Tax, Service Tax, Cess
3. (a) In our opinion and according to the information and
and any other statutory dues as applicable with the
explanations given to us, the Company has not granted
appropriate authorities.
any loans, secured or unsecured, to companies, firms or
other parties listed in the register maintained under According to the information and explanations given
Section 301 of the Act. to us, there were no undisputed amounts payable in
respect of Provident Fund, Employees’ State Insurance,
(b) As the Company has not granted any loans, secured or
Income-Tax, Wealth Tax, Service Tax, Cess and any other
unsecured, to companies, firms or other parties listed
statutory dues as applicable, outstanding as at the last
in the register maintained under Section 301 of the Act,
day of the financial year concerned for a period of more
the provisions of clause 4(iii)(b), 4(iii)(c) & 4(iii)(d) are
than six months from the date they became payable.
not applicable.
(b) According to the records of the Company, there are no
dues of Provident Fund, Employees’ State Insurance,
explanations given to us, the Company has not taken
Income-tax, Service Tax, Cess and any other statutory
any loans, secured or unsecured, from companies, firms
dues as applicable to it, which have not been deposited
or other parties listed in the Register maintained under
on account of any dispute.
Section 301 of the Companies Act, 1956.
7 Health Staff.p65 344 8/19/2009, 12:31 PM

Auditors’ Report
10. In our opinion the accumulated losses of the Company are 16. The Company has not obtained any term loans that were not
more than fifty percent of its net worth. The Company has applied for the purposes for which these were raised.
incurred cash losses during the financial year covered by our
17. Based on the information and according to the information
audit and during the immediately preceding financial year.
and explanations given to us and on an overall examination
11. Based on our audit procedures and according to the of the balance sheet of the Company, in our opinion, there
information and explanations given by the management, we are no funds raised on a short term basis which have been
are of the opinion that the Company has not defaulted in used for long term investment or vice versa.
repayment of its dues of any financial institution or bank
18. The Company has not made any preferential allotment of
during the year.
shares to parties and companies covered in the Register
12. The Company has not granted any loans and advances on the maintained under section 301 of the Companies Act, 1956
basis of security by way of pledge of shares and other during the year.
securities.
19. The Company has not issued any debentures during the year.
13. The provisions of any special statute applicable to chit fund/
20. The Company has not raised any money by public issue during
nidhi/mutual benefit fund/societies are not applicable to the
the year.
Company.
21. Based upon audit procedures performed and information and
14. Based on our examination of the records and documents of
explanations given by the management of the Company, we
the Company, and according to the information and
report no fraud on or by the Company has been noticed or
explanation given to us, we are of the opinion that the
reported during the course of our audit.
Company is not dealing or trading in shares, securities,
debentures and other investments, and therefore clause (xiv) RAKESH NANGIA
of The Companies (Auditors’ Report) (Amendment) Order, 2004 FCA, Partner
is not applicable to the Company. Membership No. 70776
15. Based on our examination of the records of the Company and For and on behalf of
according to the information and explanation given to us, we Nangia and Company
are of the opinion that the Company has not given guarantee New Delhi Chartered Accountants
for loans taken by others from banks or financial institutions. JUNE 15, 2009
7 Health Staff.p65 345 8/19/2009, 12:31 PM


RUPEES
March 31, 2009 March 31, 2008
SOURCES OF FUNDS
Share Capital 1 39,450,000 39,450,000
LOAN FUNDS
Unsecured Loans 2 181,428,704 162,674,013
Total 220,878,704 202,124,013
FIXED ASSETS 3
Gross Block 19,114,155 32,550,586
Net Block 3,402,990 13,812,635

Interest Accrued on Investment 237,888 178,008
Sundry Debtors 3,891,834 4,709,823
7,255,458 10,726,640
LESS : CURRENT LIABILITIES AND PROVISIONS 5
Provisions 142,113 304,040
6,054,834 11,695,919
NET CURRENT ASSETS 1,200,624 (969,279)
MISCELLANEOUS EXPENDITURE 6 - 54,786
Profit and Loss Account 216,275,090 189,225,871

Total 220,878,704 202,124,013
Schedule 1 to 13 form an integral part of Accounts. For and on behalf of the Board of Directors
RAKESH NANGIA P DWARAKANATH Director

FCA, Partner SUJATHA RATNAM Director
Membership No. 70776 ABHISHEK ANAND Company Secretary
For Nangia and Company
Chartered Accounants
New Delhi
JUNE 15, 2009
7 Health Staff.p65 346 8/19/2009, 12:31 PM

RUPEES
March 31, 2009 March 31, 2008
INCOME
Income From Operations 7 11,448,379 25,177,194
Other Income 8 4,225,486 468,618
Total 15,673,865 25,645,812
EXPENDITURE
Candidate Related Expenses 9 2,903,185 8,116,942
Personnel Expenses 10 16,356,223 26,665,294
General and Administrative Expenses 11 19,184,825 28,187,979
Financial Expenses 12 29,787 56,520
Depreciation 3 3,929,243 5,548,506
Amortization of Preliminary Expenses 54,786 1,314,885
(Refer Note II (d) on Schedule 13)
Total 42,458,049 69,890,126
LOSS BEFORE TAX 26,784,184 44,244,314

Tax Expense
-Fringe Benefits Tax 265,035 493,149
-Deferred tax for the year - (2,426,024)
265,035 (1,932,875)
LOSS AFTER TAX 27,049,219 42,311,439
Loss Brought Forward 189,225,871 147,038,405
Less: Transitional Liability Reversed pursuant
to adaption of AS-15 (Revised) on “Employee Benefits” - (123,973)
LOSS CARRIED FORWARD TO THE BALANCE SHEET 216,275,090 189,225,871

Earning Per Share (Rs. per equity share of Rs. 10 each)
(Refer Note II (g) on Schedule 13)
-Basic and Diluted (6.86) (10.73)
Number of Shares used in computing earning per share
-Basic and Diluted 3,945,000 3,945,000

New Delhi
JUNE 15, 2009
7 Health Staff.p65 347 8/19/2009, 12:31 PM

RUPEES
March 31, 2009 March 31, 2008
CASH FLOW FROM OPERATING ACTIVITIES
Loss before Tax (26,784,184) (44,244,314)
Adjustments for:
Depreciation 3,929,243 5,548,506
Amortization of Preliminary Expenses 54,786 1,314,885
Provision for Gratuity (337,963) (164,296)
Provision for Leave Encashment (161,927) 53,050
Provision for Doubtful Debt 248,432 -
Net Loss on Sale of Fixed Assets 5,276,891 40,225
Liability/Provision no Longer Required Written Back (3,586,179) (291,428)
Unrealised Foreign Exchange Loss/(Gain) (286,576) (7,556)
Operating Loss Before Working Capital Changes (21,722,893) (37,821,746)
Adjustments for:
Accounts Receivable 1,055,592 543,609
Other Current Assets 3,147,061 363,881
Accounts Payable and Accrued Expenses (2,092,438) (1,462,639)
Cash Used In Operations (19,612,678) (38,376,894)
Direct Taxes Paid (376,483) (575,682)
Cash Used In Operating Activities (19,989,161) (38,952,576)
CASH FLOW FROM INVESTING ACTIVITIES
Purchase of Fixed Assets (45,362) (2,739,781)
Sale of Fixed Assets 1,248,874 20,000
Cash Used In Investing Activities 1,203,512 (2,719,781)
CASH FLOW FROM FINANCING ACTIVITIES
Loan from Parent Company 18,754,692 41,011,834
Cash From Financing Activities 18,754,692 41,011,834
Increase in Cash and Cash Equivalents (30,957) (660,523)
Cash and Cash Equivalents at the Beginning of the Year 495,317 1,155,840
Cash and Cash Equivalents at the End of the Year 464,360 495,317
Notes
1) The above Cash Flow statement has been prepared under the “Indirect Method” as set out in the Accounting Standard-3 on Cash
2) Cash and Cash Equivalents at the end of the year consist of Cash and Balances with Banks (Refer Schedule-4).
New Delhi
JUNE 15, 2009
7 Health Staff.p65 348 8/19/2009, 12:31 PM


RUPEES
March 31, 2009 March 31, 2008
SCHEDULE-1
SHARE CAPITAL
AUTHORISED CAPITAL
5,000,000 Equity Shares of Rs. 10/- each 50,000,000 50,000,000
ISSUED, SUBSCRIBED AND PAID UP:

3,945,000 Equity Shares of Rs. 10/- each fully paid up 39,450,000 39,450,000
(Previous year 3,945,000 Equity Shares of Rs. 10/- fully paid up)
(Of the above, 3,945,000 (Previous year 3,945,000) equity shares are held by Max India Limited,
the holding company)
Total 39,450,000 39,450,000
SCHEDULE-2
UNSECURED LOANS
Loan from Max India Limited (the holding company) 181,428,704 162,674,013
(Repayable on demand)
Total 181,428,704 162,674,013
SCHEDULE-3
FIXED ASSETS RUPEES
Particulars As at Additions Deletions As at As at Additions Deletions As at As at As at
April 1, 2008 March 31, 2009 April 1, 2008 March 31, 2009 March 31, 2009 March 31, 2008
Tangible assets
Leasehold Improvements 5,476,464 40,032 5,516,496 - 1,330,754 887,070 2,217,824 - - 4,145,710
Computers 6,627,615 - 4,372,653 2,254,962 2,562,993 891,185 2,535,448 918,730 1,336,232 4,064,622
Furniture and Fixtures 2,093,911 - 1,751,348 342,563 1,825,929 16,872 1,613,052 229,749 112,814 267,982
Office Equipments 2,527,852 5,330 1,189,696 1,343,486 519,719 101,901 347,355 274,265 1,069,221 2,008,133
Vehicles 651,600 - 651,600 - 200,969 41,381 242,350 - - 450,631
Intangible Assets
Business Development 13,773,144 - - 13,773,144 12,015,643 1,757,501 - 13,773,144 - 1,757,501
Software 1,400,000 - - 1,400,000 281,944 233,333 - 515,277 884,723 1,118,056
TOTAL 32,550,586 45,362 13,481,793 19,114,155 18,737,951 3,929,243 6,956,029 15,711,165 3,402,990 13,812,635
Previous year 29,320,400 3,305,186 75,000 32,550,586 13,204,221 5,548,506 14,776 18,737,951
7 Health Staff.p65 349 8/19/2009, 12:31 PM


RUPEES
As at As at
March 31, 2009 March 31, 2008
SCHEDULE-4
Interest Accrued on Investment 237,888 178,008
Sundry Debtors
(Unsecured)
- Considered good 1,851,876 405,471
Other Debts
- Considered good 2,288,390 4,304,352
4,140,266 4,709,823
Less : Provision for Doubtful Debt 248,432 -
3,891,834 4,709,823
Cash in Hand 34,746 12,531
- In Current Accounts 429,614 482,786
- In Fixed Deposit Accounts* 1,000,000 1,000,000
1,464,360 1,495,317
Loans and Advances
(Considered Good, unless otherwise stated)
Unsecured
Advances recoverable in cash or in kind or for value to be received 773,554 2,199,576
Income Tax 180,763 53,778
Prepaid Expenses 70,322 386,479
Gratuity Fund Value (Net) 544,071 153,581
(Refer Note II (k) on Schedule 13)
Security Deposits 92,666 1,550,078
1,661,376 4,343,,492
Total 7,255,458 10,726,640
Note:
* Fixed Deposits are held under lien by Canara Bank against guarantees given to The President of India,
acting through the Protector General of Emigrants, Ministry of Overseas Indian Affairs, New Delhi.

Malsi Estates Limited 33,775 -
Malsi Estates Limited 216,204 -
Max Neeman Medical International Ltd - 16,000
7 Health Staff.p65 350 8/19/2009, 12:31 PM


RUPEES
As at As at
March 31, 2009 March 31, 2008
SCHEDULE-5
Current Liabilities
Sundry Creditors
- Total outstanding dues of Micro Enterprises and Small Enterprises - -
- Total outstanding dues of creditors other than Micro Enterprises and Small Enterprises 2,000,493 3,474,962
5,912,721 11,391,879
Provisions
(Refer Note II (k) on Schedule 13)
Leave Encashment 142,113 304,040
142,113 304,040
Total 6,054,834 11,695,919
SCHEDULE-6
(Refer Note I(j) on Schedule 13)
- Preliminary Expenses - 54,786
Total - 54,786

March 31, 2009 March 31, 2008
SCHEDULE-7
INCOME FROM OPERATIONS
Placement Revenue 7,914,295 24,055,579
Training & Coaching Fee 2,395,865 1,121,615
HR Solution 1,138,219 -
Total 11,448,379 25,177,194
SCHEDULE-8
OTHER INCOME
Interest on Fixed Deposits with Bank 75,416 70,817
(Tax Deducted at Source Rs.15,536 (Previous Year Rs 7,294))
Liabilities/Provisions No Longer Required Written Back 3,586,179 291,428
Gain on Foreign Exchange Fluctuation 556,366 106,373
Miscellaneous Income 7,525 -
Total 4,225,486 468,618
7 Health Staff.p65 351 8/19/2009, 12:31 PM


RUPEES
March 31, 2009 March 31, 2008
SCHEDULE-9
CANDIDATE RELATED EXPENSES
Training Costs 162,068 624,463
Examination Fees 1,095,045 3,452,017
Immigration Costs 1,529,707 2,282,894
Lodging Charges 45,538 1,089,000
Library Books 7,002 395,397
Candidate Travelling 56,825 252,771
Other Expenses 7,000 20,400
Total 2,903,185 8,116,942
SCHEDULE-10
PERSONNEL EXPENSES
Salaries, Wages and Bonus 15,333,072 23,126,209
Contribution to Provident and Other Funds 588,224 1,072,932
Recruitment Expenses 118,049 1,224,637
Training & Management Development 7,400 575,926
Staff Welfare 309,478 665,590
Total 16,356,223 26,665,294
SCHEDULE-11
GENERAL AND ADMINISTRATIVE EXPENSES
Rent 5,601,674 7,888,509
Repairs and Maintenance - Others 2,552,609 5,273,030
Insurance 31,595 29,037
Electricity and Water Charges 1,248,559 2,129,978
Printing and Stationery 271,446 705,029
Traveling and Conveyance 1,478,717 3,257,588
Communication Expenses 875,420 1,619,180
Legal and Professional Expenses 688,582 2,827,869
Business Promotion 108,344 105,446
Conference Expenses - 449,790
Advertisement and Publicity 363,396 2,856,534
Books and Periodicals 53,257 84,932
Membership and Subscription 23,435 26,334
Website Development Charges 48,708 71,888
Loss on Foreign Exchange Fluctuation 253,142 720,643
Loss on sale/disposal of Fixed Assets 5,276,891 40,225
Provision for Doubtfull Debts & Advances (Expense) 248,432 -
Total 19,184,825 28,187,979
SCHEDULE-12
FINANCIAL EXPENSES
Total 29,787 56,520
7 Health Staff.p65 352 8/19/2009, 12:31 PM


SCHEDULE-13
SIGNIFICANT ACCOUNTING POLICIES AND NOTES TO THE ACCOUNTS
I. SIGNIFICANT ACCOUNTING POLICIES:

a) Accounting basis and convention
The accompanying financial statements are prepared in accordance with Generally Accepted Accounting Principles in India
(“GAAP”), under the historical cost convention, on the accrual basis. GAAP comprises mandatory accounting standards issued
by the Institute of Chartered Accountants of India (“ICAI”) and the provisions of the Companies Act, 1956, as adopted
consistently by the Company.
b) Revenue Recognition
a) Revenue from overseas placement of Healthcare staff is recognized on the basis of time sheets received from Alliance
Partners on accrual basis.
b) Revenue from Training is recognized at the time of enrolment on accrual basis.
c) Interest Income is recognized on a time proportion basis taking into account the amounts invested and the rate of
interest. Income is stated in full with the tax thereon being accounted for under advance tax.
c) Fixed Assets
a) Fixed Assets are stated at their original cost including freight, duties (net of CENVAT), taxes and other incidental
expenses relating to acquisition and installation.
b) Expenses of revenue nature, which can be regarded as incidental and related to project set-up, are transferred to
“Preoperative expenses pending capitalization”. These expenses are allocated to fixed assets in the year of commencement
of the related project.
d) Intangible Assets
Intangible assets are recognized as per the criteria specified in Accounting Standard (AS) 26 issued by the Institute of
Chartered Accountants of India and are amortized as follows –
(a) The expenses incurred for purposes of business development including consultancy (commercial, legal and technical)
and overseas traveling (market related) is capitalized under the Head “Business Development” as an intangible asset, to
be amortized proportionately over a period of five years.
(b) Costs relating to acquisition of computer software are capitalized as Intangible Asset and amortized on a straight line
basis over a period of six years.
e) Borrowing Costs
Borrowing costs, other than those that are directly attributable to the acquisition, construction or production of a qualifying
asset, are recognized as an expense in the period in which they are incurred.
f) Depreciation
a) Depreciation is charged on straight-line method on a pro-rata basis at rates prescribed under Schedule XIV to the
Companies Act, 1956.
b) Leasehold improvements are depreciated over the respective lease periods.
c) Assets costing not more than Rs. 5,000/- each are depreciated at hundred percent in the year of capitalization.
g) Taxation
7 Health Staff.p65 353 8/19/2009, 12:31 PM


prevailing enacted or substantially enacted regulations. Deferred tax assets are recognized only if there is virtual certainty that
they will be realized and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.
h) Employee benefits
a) Provident Fund
contributions under Provident Fund to “Max India Limited Employees Provident Fund Trust”. Both the employee and the
Company make monthly contributions to the provident fund trust equal to a specified percentage of the covered
employee’s salary.
b) Gratuity
In accordance with the Payment of Gratuity Act 1972, the Company provides gratuity, a defined benefit plan (the
“Gratuity Plan”) covering eligible employees. The Gratuity Plan provides a lump sum payment to vested employees at
retirement, death, incapacitation or termination of employment, of an amount based on the respective employee’s
salary and the tenure of employment. Liabilities with regard to the Gratuity Plan are determined by actuarial valuation,
based upon which, the Company contributes to a Master policy with Life Insurance Corporation of India.
c) Leave Encashment
Accrual for leave encashment is made on the basis of actuarial valuation done at the year end.
The company recognises actuarial gains and losses as and when the same arise. The charge in respect of the same is
taken to the Profit and Loss account.
i) Foreign Exchange Transactions
a) Monetary assets and liabilities related to foreign currency transactions remaining unsettled at the end of the year are
translated at year-end rates.
b) The difference in translation of monetary assets and liabilities and realized gains and losses on foreign exchange
transactions are recognized in the Profit and Loss account.
j) Miscellaneous Expenditure
Preliminary expenses are amortized over a period of 5 years.
k) Leases
Leases of assets under which the lessor effectively retains all the risks and benefits of ownership are classified as operating
lease. Payments made under operating lease are charged to Profit and Loss Account on a straight-line basis over the period of
lease.
II. NOTES TO ACCOUNTS
a) Going Concern
Max HealthStaff International Ltd, a wholly owned subsidiary of Max India Ltd is engaged in healthcare staffing in India and
abroad, more particularly in USA. The placement of healthcare personnel in USA is subject to availability of immigrant visas
which are currently unavailable given the visa retrogression in force. Accordingly the Company has scaled down its operations
and its cumulative losses are greater than 50% of its net worth. Thus the Company is dependent on financial support from its
holding company for sustenance of its operations. The holding company has confirmed its commitment to continue to fund
the operations and liabilities of the Company in the future and accordingly, the financial statements have been prepared
using the Going Concern assumption.
b) Contingent Liabilities not provided for in respect of
RUPEES
Bank Guarantees 1,000,000 1,000,000
Claims against the Company not acknowledged as Debts# 18,116,000 13,965,000
#(USD 350,000 @ Rs 51.76)
c) Estimated amount of contracts remaining to be executed on Capital Account and not provided for Nil (Previous Year: Nil).
7 Health Staff.p65 354 8/19/2009, 12:31 PM


d) Preliminary Expenses
RUPEES
Balance at beginning of the year 54,786 1,369,671
Add: Additions - -
Less: Amount Amortized 54,786 1,314,885
Balance at end of the year - 54,786
e) Leases
Accounting for leases has been done in accordance with the Accounting Standard 19 issued by the Institute of Chartered
Accountants of India. Following are the details of lease transactions for the year.
a. Financial Lease
The company does not have any Finance Lease arrangement.
b. Operating Lease
RUPEES
Lease rentals recognized in the Profit and Loss Account 5,601,674 7,888,509
The total of future minimum lease payments under non-cancellable leases is Nil.
f) No deferred tax assets has been created on account of the carry-forward business losses as there is no reasonable certainty
of utilizing them at a future date
g) Earnings per Share
RUPEES
Basic and Diluted
- Loss After Tax (Rs.) 27,049,219 42,311,439
- Weighted average number of equity shares 3,945,000 3,945,000
- EPS (Rs.) (6.86) (10.73)
Outstanding as at the beginning of the year 3,945,000 3,945,000
Outstanding as at the end of the year 3,945,000 3,945,000
h) There are no sums payable to Micro Enterprises and Small Enterprises which are overdue. Payments against supplies from
Micro Enterprises and Small Enterprises, if any, are made in accordance with agreed terms. Accordingly, no interest is paid or
accrued and remaining unpaid to these suppliers.
i) Related Parties (as identified by the management) are classified as
Holding company Max India Ltd.
Fellow subsidiaries Max New York Life Insurance Co. Ltd., Max Healthcare Institute Ltd., Max Medical Services Ltd.,
Neeman Medical International BV, Netherlands, Neeman Medical International NV, Netherlands,
Max Neeman Medical International Inc, USA, Neeman Medical International, Latin America (till
October 26, 2007), Max Neeman Medical International Ltd., Pharmax Corporation Ltd., Max
Ateev Ltd., Max UK Ltd., UK, ALPS Hospital Ltd.
Employee Benefit Fund Max India Ltd. Employees Provident Fund Trust
7 Health Staff.p65 355 8/19/2009, 12:31 PM


Summary of significant related party transactions (as identified by the management) carried out in ordinary course of business:
RUPEES
S. No. Particulars Holding Company Fellow Subsidiaries Employee
Benefit fund
1 Fixed Assets Purchased - - -

(2400) (-) (-)
2 Fixed Asset Sold 262,216 11,100 -
(-) (-) (-)
3 Loans taken 17,700,000 - -
(37,200,000) (-) (-)
4 Incomes and reimbursement
- Reimbursement of expenses 19,196 - -
(-) (31,341) (-)
5 - Other expenses 1,542,103 3,088,330 -
(4,080,754) (5,378,955) (-)
- Company’s contribution to PF Trust - - 325,599
(-) (-) (511,986)
- Against loan taken 181,428,704 - -
(162,674,013) (-) (-)
- Other payable - 4,14,001 -
(-) (340,807) (-)
Figures in bracket are for previous year.
j) Additional information pursuant to the provisions of paragraph 3, 4C and 4D of Part II of Schedule VI of the Companies Act, 1956,
together with notes thereon:
a. Expenditure in Foreign Currency:
RUPEES
Other matters:
Examination Fees 611,424 2,198,197
Traveling and Conveyance - 540,477
Immigration Expenses 1,076,467 2,182,510
Communication Expenses 52,363 44,970
Conference Expenses - 276,640
Business Promotion - 3,613
Membership and Subscription - 40,000
Total 1,740,254 5,286,407
b. Earnings in Foreign Currency:

RUPEES
Placement Revenue 7,914,295 24,055,579
7 Health Staff.p65 356 8/19/2009, 12:31 PM


c. Amount paid / payable to Auditors:
RUPEES
Audit Fees 45,000 39,326
Tax Audit Fee 10,000 11,236
k) Employee Benefits
The Company has adopted Accounting Standard, AS-15 (revised 2005), on employee benefits with effect from April 1, 2007. The
following table sets out disclosures in respect of defined benefit plans:
RUPEES
Reconciliation of present value of the defined benefits obligation :
Obligations as at April 1, 2008 430,053 304,040
Service Cost 36,486 59,549
Interest cost 34,404 24,323
Benefits settled (37,762) (263,871)
Actuarial (gain)/loss (371,091) 18,072
Obligations as at March 31, 2009 92,090 142,113
Change in plan assets
Fair value of plans assets as at April 1, 2008 583,634 -
Expected return on plan assets 52,527 -
Actuarial gain/(loss) - -
Contribution - -
Benefits paid - -
Fair value of plan assets as at March 31, 2009 636,161 -
Reconciliation of present value of the obligation and fair value of the plan assets:
Fair value of plan assets as at March 31, 2009 636,161 -
Present value of the obligation as at March 31, 2009 92,090 142,113
(Asset)/Liability recognized as at March 31, 2009 (544,071) 142,113
Cost for the year
Service cost 36,486 59,549
Expected return on plan assets (52,527) -
Actuarial (gain)/loss (371,091) 18,072
Net cost (352,728) 101,944
Assumptions
Interest rate 8% 8%
Discount rate 8% 8%
Estimated rate of return on plan assets 9% 9%
Salary Increase 10% 10%
Leave availment in the service - 40%
Retirement age 58 58
7 Health Staff.p65 357 8/19/2009, 12:31 PM


Defined Contribution Plan
During the year, the Company contributed Rs. 570,200 (Previous year Rs. 934,897) for provident fund which represents contribution
to defined contribution plan.
l) Other disclosure requirements of schedule VI to the Companies Act, 1956 are not applicable to the Company.
m) Previous year figures have been regrouped/reclassified wherever necessary to conform to current year’s classification.

New Delhi
JUNE 15, 2009
7 Health Staff.p65 358 8/19/2009, 12:31 PM



Date Month Year
N I L N I L
Bonus Issue Others
N I L N I L
Total Liabilities (including share capital) Total Assets
2 2 0 8 7 9 2 2 0 8 7 9
SOURCES OF FUND
3 9 4 5 0 N I L
N I L 1 8 1 4 2 9
3 4 0 3 N I L
+ - Net Current assets Misc. Expenditure
1 2 0 1 N I L
Accumulated Losses
2 1 6 2 7 5
1 5 6 7 4 4 2 4 5 8
+ - Profit /Loss before Tax + - Profit /Loss after Tax
2 6 7 8 4 2 7 0 4 9
Earning per Share in Rs.
+ - Basic Dividend Rate (%)
6 . 8 6 NI L
+ - Diluted
6 . 8 6
Product Description 8 5 1 9 9
Product Description H E A L T H C A R E S T A F F I N G
7 Health Staff.p65 359 8/19/2009, 12:31 PM

7 Health Staff.p65 360 8/19/2009, 12:31 PM

NEEMAN MEDICAL INTERNATIONAL B.V.
Directors’ Report
Your Directors have pleasure in presenting their Annual Report along (ii) the Directors had selected such accounting policies and applied
with the Audited Accounts for the financial year ended March 31, them consistently and made judgments and estimates that
2009. are reasonable and prudent so as to give a true and fair view
OPERATIONS
The principal activity of the Company was that of an intermediate
(iii) the Directors had taken proper and sufficient care for the
holding company for a group that provides clinical research services
to various pharmaceutical companies around the world. During the
with the provisions of the Companies Act, 1956 for
year under review, the Company reported a net loss of Rs.11.35
lacs (previous year net loss was Rs. 12.11 lacs).
DIVIDEND
(iv) the Directors had prepared the annual accounts, on a going
Your Directors do not recommend any dividend for the year under concern basis.
review.
OTHER PARTICULARS
DIRECTORS
Information pertaining to Section 217 (1) (e) and 217 (2A) of the
The Board currently comprises of Mr. Analjit Singh, Mr. Neeraj Basur Companies Act, 1956 are not applicable.
and Maprima Management BV.
AUDITORS
Particulars of Deposits
M/s Price Waterhouse, Chartered Accountants, Auditors of the
Your Company has not accepted any deposits from the public during Company retires at the conclusion of the ensuing Annual General
the year under review. Meeting and is eligible for re-appointment.
As per the provisions of Section 217(2AA) of the Companies For and on behalf of the Board of Directors
Act,1956, the Directors confirm that:
New Delhi NEERAJ BASUR Director
(i) in the preparation of annual accounts, the applicable June 18, 2009 ANALJIT SINGH Director
accounting standards have been followed along with proper
8 NMI BV.p65 363 8/19/2009, 12:31 PM

Auditors’ Report
TO THE MEMBERS OF NEEMAN MEDICAL INTERNATIONAL B.V. adequate internal control system commensurate with
1. We have audited the attached Balance Sheet of Neeman
for the sale of services. Further, on the basis of our
Medical International B.V., as at March 31, 2009, and the
examination of the books and records of the company,
related Profit and Loss Account and Cash Flow Statement for
and according to the information and explanations given
the year ended on that date annexed thereto, which we have
to us, we have neither come across nor have been
informed of any continuing failure to correct major
management. Our responsibility is to express an opinion on weaknesses in the aforesaid internal control system.
these financial statements based on our audit. v According to the information and explanations given
2. We conducted our audit in accordance with the auditing to us, there have been no contracts or arrangements
standards generally accepted in India. Those Standards require referred to in Section 301 of the Act during the year to
that we plan and perform the audit to obtain reasonable be entered in the register required to be maintained
assurance about whether the financial statements are free of under that Section. Accordingly, commenting on
material misstatement. An audit includes examining, on a transactions made in pursuance of such contracts or
test basis, evidence supporting the amounts and disclosures arrangements does not arise.
in the financial statements. An audit also includes assessing vi The company has not accepted any deposits from the
the accounting principles used and significant estimates made public within the meaning of Sections 58A and 58AA
by management, as well as evaluating the overall financial of the Act and the rules framed there under.
statement presentation. We believe that our audit provides a
reasonable basis for our opinion. vii In our opinion, the company has an internal audit system
commensurate with its size and nature of its business.
as amended by the Companies (Auditor’s Report) (Amendment) viii The Central Government of India has not prescribed the
Order, 2004, issued by the Central Government of India in maintenance of cost records under clause (d) of sub-
terms of sub-section (4A) of Section 227 of ‘The Companies section (1) of Section 209 of the Act for any of the
Act, 1956’ of India (the ‘Act’) and on the basis of such checks products of the company.
of the books and records of the company as we considered ix (a) According to the information and explanations
appropriate and according to the information and given to us and the records of the company
explanations given to us, we further report that: examined by us, in our opinion, the company is
i The Company does not have fixed assets. generally regular in depositing the undisputed
statutory dues including provident fund, investor
ii There are no stocks with the Company and third parties education and protection fund, employees’ state
iii (a) The company has not granted any loans, secured insurance, income-tax, sales-tax, wealth tax,
or unsecured, to companies, firms or other parties service tax, customs duty, excise duty, cess and
covered in the register maintained under Section other material statutory dues as applicable with
301 of the Act. the appropriate authorities.
(b) The company has not taken any loans, secured or (b) According to the information and explanations
unsecured, from companies, firms or other parties given to us and the records of the company
covered in the register maintained under Section examined by us, there are no dues of income-tax,
301 of the Act. sales tax, wealth tax, service tax, customs duty,
iv In our opinion and according to the information and
explanations given to us, having regard to the
explanation that certain items purchased are of special x. The company has accumulated losses, as at March 31,
nature for which suitable alternative sources do not exist 2009 more than fifty percent of its net worth and has
for obtaining comparative quotations, there is an incurred cash loss in the financial year ended on that
8 NMI BV.p65 364 8/19/2009, 12:31 PM

Auditors’ Report
date and in immediately preceding financial year. 4. Further to our comments in paragraph 3 above, we report that:
xi According to the records of the company examined by (a) We have obtained all the information and explanations,
us and the information and explanation given to us, which to the best of our knowledge and belief were
the company has not defaulted in repayment of dues to necessary for the purposes of our audit;
any financial institution or bank or debenture holders
as at the balance sheet date.
xii The company has not granted any loans and advances from our examination of those books;
xiii The provisions of any special statute applicable to chit agreement with the books of account;
(d) In our opinion, the Balance Sheet, Profit and Loss
xiv In our opinion, the company is not a dealer in shares, report comply with the accounting standards referred
securities, debentures and other investments. to in sub-section (3C) of Section 211 of the Act;
xv In our opinion, and according to the information and (e) On the basis of written representations received from
explanations given to us, the company has not given the directors, as on March 31, 2009 and taken on record
any guarantee for loans taken by others from banks or by the Board of Directors, none of the directors is
financial institutions during the year. disqualified as on March 31, 2009 from being appointed
xvi The company has not taken any term loans.
xvii On the basis of an overall examination of the balance
used for long-term investment.
xviii The company has not made any preferential allotment view in conformity with the accounting principles
of shares to parties and companies covered in the generally accepted in India:
register maintained under Section 301 of the Act during
the year.
xix The company has not issued any debentures during the
year.
loss for the year ended on that date; and
xx The company has not raised any money by public issues
during the year.
xxi During the course of our examination of the books and
the generally accepted auditing practices in India, and V.NIJHAWAN
according to the information and explanations given to Partner
us, we have neither come across any instance of fraud Membership Number F-87228
year, nor have we been informed of such case by the
management.
8 NMI BV.p65 365 8/19/2009, 12:31 PM


RUPEES
March 31, 2009 March 31, 2008
SOURCES OF FUNDS
Share Capital 1 825,994 825,994
Share Application Money Pending Allotment 72,324,900 72,324,900
Reserves and Surplus 2 1,040,542,676 905,540,571
1,113,693,570 978,691,465
INVESTMENTS 3 492,203,992 376,410,211

Bank Balances 403,933 407,608
82,048,467 63,866,993
LESS: CURRENT LIABILITIES AND PROVISIONS 5 1,091,577 982,623
NET CURRENT ASSETS 80,956,890 62,884,370

1,113,693,570 978,691,465
V. NIJHAWAN ANALJIT SINGH Directori
Price Waterhouse
Gurgaon New Delhi
JUNE 18, 2009 JUNE 18, 2009
8 NMI BV.p65 366 8/19/2009, 12:31 PM

RUPEES
March 31, 2009 March 31, 2008
INCOME
Interest Income 772 17,459
Miscellaneous Income - 17,678
Profit on Foreign Exchange Fluctuation 116,306 3,060
117,078 38,197
EXPENDITURE
Administrative and Other Expenses 6 1,246,152 1,238,797
Finance Charges 7 6,730 10,751
1,252,882 1,249,548
(LOSS) FOR THE YEAR (1,135,804) (1,211,351)
(LOSS) BROUGHT FORWARD (539,396,884) (538,185,533)
Earnings per Share

- Basic and Diluted (29,890) (31,878)
Number of ordinary shares used in computing earnings per share

- Basic and Diluted 38 38
Price Waterhouse
Gurgaon New Delhi
JUNE 18, 2009 JUNE 18, 2009
8 NMI BV.p65 367 8/19/2009, 12:31 PM

RUPEES
Schedule March 31, 2009 March 31, 2008
Profit/(Loss) Before Exceptional Items (1,135,804) (1,211,351)
Adjustments for:
Interest Income (772) (17,459)
Unrealised Foreign Exchange (Gain)/Loss (116,306) (3,060)
Operating (Loss) Before Working Capital Changes (1,252,882) (1,231,870)
Adjustments for:
Other Receivables (14,014) (150,509)
Trade Payables 108,954 885,922
Cash From/(Used in) Operating Activities (1,157,942) (496,457)

Interest Income 772 17,459
Sale of Investments 1,164,348 -
Purchase of Investments - (28,644)
Cash From/(Used in) Investing Activities 1,165,120 (11,185)

Cash From Financing Activities - -
Increase/(Decrease) in Cash and Cash Equivalents 7,178 (507,642)
Impact of Foreign Exchange Fluctuations (10,853) (51,888)
Net Increase/(Decrease) in Cash and Cash Equivalents (3,675) (559,530)
Cash and Cash Equivalents As At March 31, 2008 407,608 967,138
Cash and Cash Equivalents As At March 31, 2009 403,933 407,608
Net Increase/(Decrease) in Cash and Cash Equivalents (3,675) (559,530)
Notes
1 The above Cash Flow statement has been prepared under the “Indirect Method” as set out in the Accounting Standard-3 on ‘Cash
Flow Statements’ issued by The Institute of Chartered Accountants of India.
2 Cash and Cash Equivalents at the end of the year consist of Balance with Bank:
RUPEES
As at As at
March 31, 2009 March 31, 2008
Balance with Bank Rabo Bank NV (The Netherlands) 403,933 407,608
Cash Flow Statement
V. NIJHAWAN ANALJIT SINGH Director
Price Waterhouse
Gurgaon New Delhi
JUNE 18, 2009 JUNE 18, 2009
8 NMI BV.p65 368 8/19/2009, 12:31 PM


RUPEES
As at As at
March 31, 2009 March 31, 2008
SCHEDULE-1
SHARE CAPITAL
Authorised
180 (Previous year 180) Ordinary Shares of Euro 500 each 3,837,376 3,837,376
Issued, Subscribed and Paid Up

38 (Previous year 38) Ordinary Shares of Euro 500 each
(Held by Max India Limited, the Holding Company) 825,994 825,994
SCHEDULE-2
As at Additions Delitions/ As at
April 1, 2008 Utilisations March 31, 2009
Share Premium 1,000,896,148 - - 1,000,896,148
Foreign Currency Transalation Reserve (95,355,577) 135,002,105 - 39,646,528
905,540,571 135,002,105 - 1,040,542,676
As at As at
March 31, 2009 March 31, 2008
SCHEDULE-3
INVESTMENTS
Long Term-Trade (Unquoted)
Subsidiaries, at cost
125 (Previous year 125) Ordinary Shares of Euro 500 each
in Neeman Medical International NV 1,234,283,545 943,911,340
Less : Provision For Diminution (742,079,553) 492,203,992 (567,501,129)
492,203,992 376,410,211
SCHEDULE-4
Bank Balances
With Non-Scheduled Bank in Current Accounts - Rabo Bank NV* 403,933 407,608
403,933 407,608
Loans and Advances
(Unsecured, Considered good, Unless Otherwise Stated)
81,644,534 63,459,385
82,048,467 63,866,993
* Maximum amount outstanding during the year Rs 526,846/- (Previous year Rs. 945115/-)
8 NMI BV.p65 369 8/19/2009, 12:31 PM


RUPEES
As at As at
March 31, 2009 March 31, 2008
SCHEDULE - 5
Sundry Creditors**
-Total Outstanding Dues of Creditors Other Than Micro Enterprises
& Small Enterprises 1,091,577 982,623
1,091,577 982,623
** There are no dues to creditors under the definition of Micro
Enterprises & Small Enterprises as at March 31, 2009 and March 31, 2008

March 31, 2009 March 31, 2008
SCHEDULE - 6
ADMINISTRATIVE AND OTHER EXPENSES
Legal and Professional 1,220,443 1,216,080
Auditor’s Remuneration 25,709 22,717
1,246,152 1,238,797
SCHEDULE - 7
FINANCE CHARGES
6,730 10,751
8 NMI BV.p65 370 8/19/2009, 12:31 PM


SCHEDULE - 8
1 The Financial Statements are prepared to comply in all material aspects with all the applicable accounting principles in India, the
1956.
(i) Revenue represents amounts invoiced during the year, exclusive of value added tax.
(ii) Dividend is recognized as income as and when the right to receive such payment is established.
3 Expenditure
Expenses are accounted for on the accrual basis and provisions are made for all known losses and liabilities.
4 Borrowing Costs
Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized as
part of the cost of that asset in accordance with Accounting Standard 16 issued by ICAI on “Borrowing Costs”. Other borrowing
costs are recognized as an expense in the year in which they are incurred. Capitalization of borrowing costs ceases when substantially
all activities necessary to prepare the qualifying asset for its intended use or sale are complete.
5 Investments
(i) Investments are either classified as current investments or long-term investments. The cost of investments includes acquisition
charges such as brokerage, fee and duties. Current investments are carried at lower of cost and fair value.
(ii) Long-term investments are carried out at cost and provisions are recorded to recognize any decline, other than temporary, in
6 Taxation
Provision for tax consists of current tax and deferred tax. Current tax provision is computed on current income based on the tax
liability after considering allowances and exemptions. Deferred tax assets and liabilities are computed on the timing differences at
the balance sheet date between the carrying amount of assets and liabilities and their respective tax bases. Deferred tax assets are
recognized based on management estimates of available future taxable income and assessing its certainty.

(i) Monetary assets and liabilities related to foreign currency transactions remaining unsettled at the end of the year are translated
at year-end rates.
(ii) The difference in translation of monetary assets and liabilities and realized gains and losses on foreign exchange transactions,
are recognized in the profit and loss account.
1 Country of Incorporation
Neeman Medical International B.V. (“Neeman B.V.”) is incorporated and operates under the applicable laws of The Netherlands.
2 Basis of Preparation and Translation into Indian Rupees

(i) These financial statements have been prepared for the purpose of compliance with the provisions of Section 211 and Section
212 of the Indian Companies Act, 1956 and have been translated to Indian Rupees (Rs.) in accordance with Accounting
8 NMI BV.p65 371 8/19/2009, 12:31 PM


Standard-11 issued by ICAI on ‘The Effects of Changes in Foreign Exchange Rates’. The functional currency of the Company is
United States Dollar (US$).
(ii) The translation of foreign currency into Rs. has been carried out:
a) For assets and liabilities (both monetary and non-monetary items) using the rate of exchange prevailing on the balance
sheet date (1US$ = Rs.52.1743 as at March 31, 2009 and 1US$ = Rs. 39.9000 as at March 31, 2008).
b) For revenues and expenses using average exchange rates prevailing during the reporting period (1US$ = 46.5739 for the
year April 1, 2008 to March 31, 2009 and 1US$ = 40.4221 for the year April 1, 2007 to March 31, 2008).
c) Resulting exchange differences are taken into foreign currency translation reserve as required under Accounting Standard-
11.
3 Contingent Liabilities – Rs. Nil
4 The Company operates in a single business segment, viz. Clinical Research. In view of the general clarification issued by the
Institute of Chartered Accountants of India for companies in single segment, the disclosure requirements as per Accounting Standard
– 17 on “Segment Reporting” are not applicable.
5 Deferred Tax:
Deferred tax liability/asset is not recognized since there are no timing differences between the carrying amount of assets and
liabilities and their respective tax bases.

(i) Holding Company Max India Limited, India
(ii) Subsidiaries Neeman Medical International NV, Max Neeman Medical International Inc., USA.
(iii) Fellow Subsidiaries Max New York Life Insurance Company Ltd., Max Healthcare Institute Ltd., Max Medical Services Ltd.,
Alps Hospital Ltd., Max Neeman Medical International Ltd., Pharmax Corporation Ltd., Max Ateev Ltd.,
Max UK Ltd., Max HealthStaff International Ltd, .
are as follows:
RUPEES
Holding Company Subsidiaries
(i) Share application money paid - -
(-) (28,644)
(ii) Received against share application money pending allotment - 1,164,348
(-) (-)
(iii) Amount Outstanding
Against share application money paid - 81,480,011
(-) (63,380,876)
Against share application money received 72,324,900 -
(72,324,900) (-)
8 NMI BV.p65 372 8/19/2009, 12:31 PM


March 31, 2009 March 31, 2008
Basic and Diluted
Profit/(Loss) after tax (1,135,804) (1,211,351)
EPS (Rupees) (29,890) (31,878)
8 The Company does not have any finance/operating lease arrangement.
9 Other disclosure requirements of Schedule VI to the Companies Act, 1956 are not applicable to the Company.
New Delhi ANALJIT SINGH Director

8 NMI BV.p65 373 8/19/2009, 12:31 PM


Registration No. 8 1 0 7 . 3 3 . 8 8 2 State Code N A
Date Month Year
N I L N I L
Bonus Issue Private Placement/Others
N I L N I L
1 1 1 3 6 9 4 1 1 1 3 6 9 4
SOURCES OF FUND
Paid-up Capital Share Application Money
8 2 6 7 2 3 2 5
Reserve and Surplus Unsecured Loans
1 0 4 0 5 4 3 N I L
N I L 4 9 2 2 0 4
8 0 9 5 7 N I L
Accumulated Losses Foreign Currency Translation Reserve
5 4 0 5 3 3 N I L
1 1 7 1 2 5 3
+ - Profit /Loss for the year - Exceptional Item
√ 1 1 3 6 √ N I L
Basic + - Earning per Share in Rs. Dividend Rate (%)
√ 2 9 8 9 0 N I L
Diluted + -
√ 2 9 8 9 0
Product Description C L I N I C A L R E S E A R C H
8 NMI BV.p65 374 8/19/2009, 12:31 PM

NEEMAN MEDICAL INTERNATIONAL N.V.
Directors’ Report
Your Directors have pleasure in presenting their Annual Report along (ii) the Directors had selected such accounting policies and applied
with the Audited Accounts for the financial year ended March 31, them consistently and made judgments and estimates that
2009. are reasonable and prudent so as to give a true and fair view
OPERATIONS
Your Company’s principal activity is that of an intermediate holding
(iii) the Directors had taken proper and sufficient care for the
company for a group that provides clinical research services to
various pharmaceutical companies around the world. During the
year under review, your Company posted a net profit of Rs.5.17 lacs
(previous year loss was Rs. 896.88 lacs).
DIVIDEND
In view of the carry forward losses, your Directors do not recommend concern basis.
any dividend for the year under review.
OTHER PARTICULARS
DIRECTORS
The Board currently comprises of Mr. Analjit Singh, Mr. Neeraj Basur Companies Act, 1956 are not applicable to your Company.
and Maprima Management BV.
AUDITORS
Your Company has not accepted any deposits from the public during Company retires at the conclusion of the ensuing Annual General
the year under review. Meeting and is eligible for re-appointment.
As per the provisions of Section 217(2AA) of the Indian Companies For and on behalf of the Board of Directors
Act, 1956, the Directors confirm that:
(i) in the preparation of annual accounts, the applicable June 18, 2009 ANALJIT SINGH Director
9 Neeman NV.p65 377 8/19/2009, 12:31 PM

Auditors’ Report
TO THE MEMBERS OF NEEMAN MEDICAL INTERNATIONAL N.V. obtaining comparative quotations, there is an adequate
internal control system commensurate with the size of
1. We have audited the attached Balance Sheet of Neeman
the company and the nature of its business for the sale
Medical International N.V., as at March 31, 2009, and the
of services. Further, on the basis of our examination of
the books and records of the company, and according to
the year ended on that date annexed thereto, which we have
the information and explanations given to us, we have
neither come across nor have been informed of any
continuing failure to correct major weaknesses in the
aforesaid internal control system.
v According to the information and explanations given to
2. We conducted our audit in accordance with the auditing
us, there have been no contracts or arrangements referred
to in Section 301 of the Act during the year to be entered
in the register required to be maintained under that
Section. Accordingly, commenting on transactions made
material misstatement. An audit includes examining, on a test
in pursuance of such contracts or arrangements does not
basis, evidence supporting the amounts and disclosures in the
arise.
accounting principles used and significant estimates made by vi The company has not accepted any deposits from the
management, as well as evaluating the overall financial public within the meaning of Sections 58A and 58AA of
statement presentation. We believe that our audit provides a the Act and the rules framed there under.
vii In our opinion, the company has an internal audit system
3. As required by the Companies (Auditor’s Report) Order, 2003, commensurate with its size and nature of its business.
as amended by the Companies (Auditor’s Report) (Amendment)
viii The Central Government of India has not prescribed the
Order, 2004, issued by the Central Government of India in terms
of sub-section (4A) of Section 227 of ‘The Companies Act, section (1) of Section 209 of the Act for any of the
1956’ of India (the ‘Act’) and on the basis of such checks of products of the company.
the books and records of the company as we considered
appropriate and according to the information and explanations ix (a) According to the information and explanations given
given to us, we further report that: to us and the records of the company examined by
us, in our opinion, the company is generally regular
i The Company does not have fixed assets. in depositing the undisputed statutory dues including
ii There are no stocks with the Company and third parties provident fund, investor education and protection
fund, employees’ state insurance, income-tax, sales-
iii (a) The company has not granted any loans, secured or tax, wealth tax, service tax, customs duty, excise
unsecured, to companies, firms or other parties duty, cess and other material statutory dues as
covered in the register maintained under Section 301 applicable with the appropriate authorities.
of the Act.
(b) According to the information and explanations given
(b) The company has not taken any loans, secured or to us and the records of the company examined by
unsecured, from companies, firms or other parties us, there are no dues of income-tax, sales tax, wealth
covered in the register maintained under Section 301 tax, service tax, customs duty, excise duty and cess
of the Act. which have not been deposited on account of any
iv In our opinion and according to the information and dispute.
explanations given to us, having regard to the explanation x The company has accumulated losses, as at March 31,
that certain items purchased are of special nature for 2009 more than fifty percent of its net worth and has
which suitable alternative sources do not exist for not incurred cash loss in the financial year ended on that
9 Neeman NV.p65 378 8/19/2009, 12:31 PM

Auditors’ Report
date. The Company has incurred cash losses in the 4. Further to our comments in paragraph 3 above, we report that:
immediately preceding financial year.
xi According to the records of the company examined by us which to the best of our knowledge and belief were
and the information and explanation given to us, the necessary for the purposes of our audit;
company has not defaulted in repayment of dues to any
financial institution or bank or debenture holders as at
the balance sheet date.
xii The company has not granted any loans and advances on
(c) The Balance Sheet, Profit and Loss Account and Cash Flow
the basis of security by way of pledge of shares,
Statement dealt with by this report are in agreement with
the books of account;
xiii The provisions of any special statute applicable to chit
(d) In our opinion, the Balance Sheet, Profit and Loss Account
and Cash Flow Statement dealt with by this report comply
with the accounting standards referred to in sub-section
xiv In our opinion, the company is not a dealer in shares, (3C) of Section 211 of the Act;
securities, debentures and other investments.
(e) On the basis of written representations received from the
xv In our opinion, and according to the information and directors, as on March 31, 2009 and taken on record by
explanations given to us, the company has not given any the Board of Directors, none of the directors is disqualified
guarantee for loans taken by others from banks or as on March 31, 2009 from being appointed as a director
financial institutions during the year. in terms of clause (g) of sub-section (1) of Section 274 of
the Act;
xvi The company has not taken any term loans.
xvii On the basis of an overall examination of the balance
financial statements together with the notes thereon and
attached thereto give in the prescribed manner the
used for long-term investment.
xviii The company has not made any preferential allotment of generally accepted in India:
(i) in the case of the Balance Sheet, of the state of affairs
of the company as at March 31, 2009;
xix The company has not issued any debentures during the
year.
xx The company has not raised any money by public issues
(iii) in the case of the Cash Flow Statement, of the cash
during the year.
flows for the year ended on that date.
xxi During the course of our examination of the books and
the generally accepted auditing practices in India, and V.NIJHAWAN
according to the information and explanations given to Partner
us, we have neither come across any instance of fraud on Membership Number F-87228
or by the company, noticed or reported during the year,
nor have we been informed of such case by the
management.
9 Neeman NV.p65 379 8/19/2009, 12:31 PM


RUPEES
March 31, 2009 March 31, 2008
SOURCES OF FUNDS
Share Capital 1 2,680,703 2,680,703
Reserves and Surplus 2 1,114,041,439 1,037,366,452
1,187,311,424 1,111,889,982
INVESTMENTS 3 39,130,725 29,925,000

Loans and Advances 5 295,391,789 225,923,886
303,708,666 234,259,027
LESS: CURRENT LIABILITIES AND PROVISIONS 6 17,690,397 14,974,303

1,187,311,424 1,111,889,982
V. NIJHAWAN i
Partner ANALJIT SINGH Director
Membership No. F 87228 NEERAJ BASUR Director
Price Waterhouse
Gurgaon New Delhi
JUNE 18, 2009 JUNE 18, 2009
9 Neeman NV.p65 380 8/19/2009, 12:31 PM

RUPEES
March 31, 2009 March 31, 2008
INCOME
Other Income 7 4,040,980 2,892,146
4,040,980 2,892,146
EXPENDITURE
Administration and Other Expenses 8 3,504,066 92,551,744
Finance Charges 9 19,086 29,013
3,523,152 92,580,757
PROFIT/(LOSS) FOR THE YEAR 517,828 (89,688,611)
BALANCE TRANSFERRED TO THE BALANCE SHEET (862,162,430) (862,680,258)
Earnings per Share

- Basic and Diluted 4,143 (717,509)
Number of ordinary shares used in computing earnings per share

V. NIJHAWAN i
Price Waterhouse
Gurgaon New Delhi
JUNE 18, 2009 JUNE 18, 2009
9 Neeman NV.p65 381 8/19/2009, 12:31 PM

RUPEES
March 31, 2009 March 31, 2008
Profit/(Loss) for the year 517,828 (89,688,611)
Adjustments for:
Interest Income (31,007) (2,892,146)
Debit Balances Written Off - 65,857,744
Loss on Sale of Investments - 20,404,801
Unrealised Foreign Exchange (Gain)/Loss (4,009,973) 792,991
Operating (Loss) Before Working Capital Changes (3,523,152) (5,525,221)
Adjustments for:
Other Receivables (69,467,903) 23,170,536
Trade Payables 6,732,500 107,651
Cash From/(Used in) Operating Activities (66,258,555) 17,752,966
Sale of Investments - 10,509,746
Interest Received 31,007 140,088
Cash From investing Activities 31,007 10,649,834
Share Application Money Received/(Refunded) (1,253,545) 28,280
Cash From/(Used in) Financing Activities (1,253,545) 28,280
Increase/(Decrease) in Cash and Cash Equivalents (67,481,093) 28,431,080
Impact of Foreign Exchange Fluctuations 67,462,829 (23,855,574)
Net Increase/(Decrease) in Cash and Cash Equivalents (18,264) 4,575,506
Cash and Cash Equivalents As At March 31, 2008 8,335,141 3,759,635
Net Increase/(Decrease) in Cash and Cash Equivalents (18,264) 4,575,506
Notes
2 Cash and Cash Equivalents at the end of the year consist of Balance with Bank: RUPEES
As at As at
March 31, 2009 March 31, 2008
Balance with Bank-Rabo Bank NV (The Netherlands) 8,316,877 8,335,141
Cash Flow Statement
V. NIJHAWAN i
Price Waterhouse
Gurgaon New Delhi
JUNE 18, 2009 JUNE 18, 2009
9 Neeman NV.p65 382 8/19/2009, 12:31 PM


RUPEES
As at As at
March 31, 2009 March 31, 2008
SCHEDULE-1
SHARE CAPITAL
Authorised

Of the above 125 (Previous year 125) Ordinary Shares of Euro 500 each
are held by Neeman Medical International BV, the Holding Company
(Ultimate Holding Company, Max India Limited)
SCHEDULE-2
As at Additions Delitions/ As at
April 1, 2008 Utilisations March 31, 2009
Share Premium 1,097,542,697 - - 1,097,542,697
Foreign Currency Translation Reserve (60,176,245) 76,674,987 - 16,498,742
1,037,366,452 76,674,987 - 1,114,041,439
As at As at
March 31, 2009 March 31, 2008
SCHEDULE-3
INVESTMENTS
Long Term-Trade (Unquoted)
Subsidiaries, at cost
325 (Previous year 325 ) shares having no par value in Max Neeman
Medical International Inc. 39,130,725 29,925,000
39,130,725 29,925,000
SCHEDULE - 4
Balance with Non-Scheduled Banks in Current Accounts
Rabo Bank NV* 8,316,877 8,335,141
8,316,877 8,335,141
* Maximum amount outstanding during the year Rs. 10,859,308/- (Previous year Rs. 11,553,067/-)
9 Neeman NV.p65 383 8/19/2009, 12:31 PM


(RS. LACS)
As at As at
March 31, 2009 March 31, 2008
SCHEDULE-5
LOANS AND ADVANCES
(Considered Good, Unless Otherwise Stated)
Unsecured
Advances to Subsidiary
- Max Neeman Medical International Inc.** 384,832,020 294,298,104
Less: Provision for Diminution (89,604,754) 295,227,266 (68,524,727)
295,391,789 225,923,886
** Maximum amount outstanding during the year Rs. 384,832,020/- (Previous year Rs. 294,298,104/-)
SCHEDULE-6
Sundry Creditors***
-Total Outstanding Dues of Creditors Other Than Micro Enterprises
& Small Enterprises 4,935,447 5,081,845
Utlimate Holding Company - Max India Limited 9,256,986 9,256,986
Other Liabilities 3,497,964 635,472
17,690,397 14,974,303
*** There are no dues to creditors under the definition of Micro Enterprises &
Small Enterprises as at March 31, 2009 and March 31, 2008

March 31, 2009 March 31, 2008
SCHEDULE-7
OTHER INCOME
Interest
- Loan - 2,752,058
- Others 31,007 140,088
Profit on Foreign Exchange Fluctuation 4,009,973 -
4,040,980 2,892,146
SCHEDULE-8
ADMINISTRATION AND OTHER EXPENSES
Auditors’ Remuneration 25,709 22,717
Rates and Taxes 2,358,002 -
Debit Balances Written Off - 65,857,744
Loss on Sale of Investment - 20,404,801
Loss on Foreign Exchange Fluctuation - 792,991
3,504,066 92,551,744
SCHEDULE-9
FINANCE CHARGES
19,086 29,013
9 Neeman NV.p65 384 8/19/2009, 12:31 PM


SCHEDULE-10

1956.
3 Expenditure
4 Borrowing Costs
all activities necessary to prepare the qualifying asset for its intended use or sale are complete.
5 Investments
(i) Investments are either classified as current investments or long-term investments. The cost of investments includes acquisition
charges such as brokerage, fee and duties. Current investments are carried at lower of cost and fair value.
(ii) Long-term investments are carried out at cost and provisions are recorded to recognize any decline, other than temporary, in
6 Taxation
Provision for tax consists of current tax and deferred tax. Current tax provision is computed on current income based on the tax
the balance sheet date between the carrying amount of assets and liabilities and their respective tax bases. Deferred tax assets are
at year-end rates.
Neeman Medical International N.V. is incorporated and operates under the applicable laws of The Netherlands.
sheet date (1US$ = Rs. 52.1743 as at March 31, 2009 and 1US$ = Rs. 39.9000 as at March 31, 2008).
9 Neeman NV.p65 385 8/19/2009, 12:31 PM


b) For revenues and expenses using average exchange rates prevailing during the reporting period (1US$ = Rs. 46.5739 for
the year April 1, 2008 to March 31, 2009 and 1US$ = Rs. 40.4221 for the year April 1, 2007 to March 31, 2008).
c) Resulting exchange differences are taken into foreign currency translation reserve as required under Accounting
Standard-11.
3 Consequent to an audit conducted by VAT authorities of Netherlands for the period between December 6, 2001 and December 31,
2005, an assessment report raising a demand of Rs. 10,900,529/- had been earlier raised on the company for which objection was
filed. During the financial year an amount of Rs. 2,660,515/- was paid as full and final settlement and the matter in dispute has
been resolved.
4 Segment Reporting:
Business Segments (Primary)
The Company operates only in one business segment viz. Clinical Trial Services. Accordingly there are no reportable business
segments.
Geographical Segments (Secondary)
Netherlands North America Total

(i) Revenue from external customers - - -
(-) (-) (-)
(ii) Carrying amount of segment assets by location of assets 8,481,400 334,357,991 342,839,391
(8,485,650) (255,698,377) (264,184,027)
(iii) Cost to acquire tangible and intangible fixed assets by
location of assets - - -
(-) (-) (-)
5 Deferred Tax:
Deferred tax liability/asset is not recognized since there are no timing differences between the carrying amount of assets and
liabilities and their respective tax bases.
(i) Holding Company Neeman Medical International BV, Netherlands
(ii) Ultimate Holding Company Max India Limited, India
(iii) Subsidiary Max Neeman Medical International Inc., USA
(iv) Fellow Subsidiaries Max New York Life Insurance Company Ltd., Max Healthcare Institute Ltd., Max Medical
Services Ltd., Alps Hospital Ltd, Max Neeman Medical International Ltd., Pharmax Corporation
Ltd., Max Ateev Ltd., Max UK Ltd., Max HealthStaff International Ltd.,
9 Neeman NV.p65 386 8/19/2009, 12:31 PM


are as follows:
RUPEES
Holding Ultimate Subsidiaries Fellow
Company Holding Company Subsidiaries
(i) Interest Income - - - -
(-) (-) (2,752,058) (-)
(ii) Reimbursement of Expenses - - - -
(-) (503,996) (1,758) (-)
(iii) Share Application Money Received - - - -
(28,280) (-) (-) (-)
(iv) Share Application Money Refunded 1,253,545 - - -
(-) (-) (-) (-)
(v) Loan Given - - - -
(-) (-) (1,657,306) (-)
(vi) Amount Outstanding
- Other Receivables - - 384,832,020 -
(-) (-) (294,298,104) (-)
- Other Payables - 9,256,986 - 3,796,933
(-) (9,256,986) (-) (4,075,800)
- Against share application money received 70,589,282 - - -
(71,842,827) (-) (-) (-)

March 31, 2009 March 31, 2008
Basic and Diluted
Profit/(Loss) after tax (Rupee) 517,828 (89,688,611)
EPS (Rupees) 4,143 (717,509)
8 The Company does not have any Finance/Operating Lease arrangement.


9 Neeman NV.p65 387 8/19/2009, 12:31 PM


Registration No. 1 . 1 8 4 . 3 6 3 State Code N A
Date Month Year
N I L N I L
N I L 2 8
1 1 8 7 3 1 1 1 1 8 7 3 1 1
SOURCES OF FUND
Paid-up Capital Share Application Money
2 6 8 1 7 0 5 8 9
Reserve and Surplus Unsecured Loans
1 1 1 4 0 4 1 N I L
N I L 3 9 1 3 1
2 8 6 0 1 8 N I L
Accumulated Losses
8 6 2 1 6 2
4 0 4 1 3 5 2 3
+ - Profit for the Year
√ 5 1 8
Basic + - Earning per Share in Rs. Dividend Rate (%)
√ 4 1 4 3 N I L
Diluted + - Earning per Share in Rs.
√ 4 1 4 3
Product Description C L I N I C A L R E S E A R C H
9 Neeman NV.p65 388 8/19/2009, 12:31 PM

MAX NEEMAN MEDICAL INTERNATIONAL INC.
(formerly Neeman Medical International INC.)
Directors’ Report
Your Directors have pleasure in presenting their Annual Report along (i) in the preparation of annual accounts, the applicable
with the Audited Accounts for the financial year ended March 31, accounting standards have been followed along with proper
2009. explanation relating to material departures;
PRINCIPAL ACTIVITY /OPERATIONS (ii) the Directors had selected such accounting policies and
The Principal activity of your Company is to develop new business
that are reasonable and prudent so as to give a true and fair
opportunities in the field of Clinical Trials for Contract Research
Organizations (CRO) and provide business development support in
financial year and of the profit or loss of the Company for
US, Europe and Canada to Max Neeman Medical International
that period;
Limited (“Max Neeman”), a group company, which is also a CRO.
Your Company’s business developments efforts brought lots of (iii) the Directors had taken proper and sufficient care for the
valuable clients to Max Neeman Medical International Limited in maintenance of adequate accounting records in accordance
various therapeutic areas such as oncology, cardiology, infectious with the provisions of the Companies Act, 1956 for
diseases, endocrinology, medical devices, ophthalmology and rescue safeguarding the assets of the Company and for preventing
studies amounting to approx. US$ 1.0 million. Yours Company is and detecting fraud and other irregularities; and
also looking to find business partners in USA and Europe for Max
Neeman.
concern basis.
During the year under review, your Company incurred a net loss of
OTHER PARTICULARS
Rs.4.04 lacs as against previous year profit of Rs.62.33 lacs.
DIVIDEND
Indian Companies Act, 1956 are not applicable.
In view of the losses, your Directors do not recommend any dividend
AUDITORS
for the year under review.
DIRECTORS
Company retires at the conclusion of the ensuing Annual General
The Board currently comprises of Mr. Analjit Singh and Mr. Neeraj Meeting and is eligible for re-appointment.
Basur.
ACKNOWLEDGEMENTS
Your Directors would like to place on record their gratitude for the
Your Company has not accepted any deposits from the public during co-operation and support extended to the Company by its
the year under review. employees, customers and the Government.
DIRECTORS’ RESPONSIBILITY STATEMENT For and on behalf of the Board of Directors
As per the provisions of Section 217(2AA) of the Indian Companies New Delhi Neeraj Basur Director
Act,1956, the Directors confirm that: JUNE 18, 2009 Analjit Singh Director
10 Neeman INC.p65 391 8/19/2009, 12:31 PM

Auditors’ Report
TO THE MEMBERS OF MAX NEEMAN MEDICAL INTERNATIONAL Inc. iii. (a) The Company has not granted any loans, secured
1. We have audited the attached Balance Sheet of Max Neeman
Medical International Inc. as at March 31, 2009, and the
301 of the Act.
the year ended on that date annexed thereto, which we have (b) The Company has not taken any loans, secured or
signed under reference to this report. These financial unsecured, from companies, firms or other parties
statements are the responsibility of the Company’s covered in the register maintained under Section
management. Our responsibility is to express an opinion on 301 of the Act.
iv. In our opinion and according to the information and
2. We conducted our audit in accordance with the auditing explanations given to us, having regard to the
standards generally accepted in India. Those Standards require explanation that certain items purchased are of special
that we plan and perform the audit to obtain reasonable nature for which suitable alternative sources do not exist
assurance about whether the financial statements are free of for obtaining comparative quotations, there is an
material misstatement. An audit includes examining, on a adequate internal control system commensurate with
test basis, evidence supporting the amounts and disclosures the size of the Company and the nature of its business
in the financial statements. An audit also includes assessing for the purchase of fixed assets and for the sale and
the accounting principles used and significant estimates made services. Further, on the basis of our examination of
by management, as well as evaluating the overall financial the books and records of the Company, and according
statement presentation. We believe that our audit provides a to the information and explanations given to us, we
reasonable basis for our opinion. have neither come across nor have been informed of
any continuing failure to correct major weaknesses in
the aforesaid internal control system.
as amended by the Companies (Auditor’s Report) (Amendment)
Order, 2004, issued by the Central Government of India in v. (a) In our opinion and according to the information
terms of sub-section (4A) of Section 227 of ‘The Companies and explanations given to us, the particulars of
Act, 1956’ of India (the ‘Act’) and on the basis of such checks contracts or arrangements referred to in Section
of the books and records of the Company as we considered 301 of the Act have been entered in the register
appropriate and according to the information and required to be maintained under that section.
(b) In our opinion and according to the information
i. (a) The Company is maintaining proper records and explanations given to us, there are no
showing full particulars including quantitative transactions made in pursuance of such contracts
details and situation of fixed assets. or arrangements and exceeding the value of
Rupees Five Lakhs in respect of any party during
(b) The fixed assets of the Company have been
the year, which have been made at prices which
physically verified by the management during the
are not reasonable having regard to the prevailing
year and no material discrepancies between the
market prices at the relevant time.
book records and the physical inventory have been
noticed. In our opinion, the frequency of vi. The Company has not accepted any deposits from the
verification is reasonable. public within the meaning of Sections 58A and 58AA
of the Act and the rules framed there under.
and explanations given to us, a substantial part vii. The Company did not have an internal audit system
of fixed assets has not been disposed of by the during the year.
Company during the year.
ii. There are no stocks with the Company and third parties. maintenance of cost records under clause (d) of sub-
10 Neeman INC.p65 392 8/19/2009, 12:31 PM

Auditors’ Report
section (1) of Section 209 of the Act for any of the xvi. The Company has not obtained any term loans.
products of the Company.
xvii. On the basis of an overall examination of the balance
ix. (a) According to the information and explanations sheet of the Company, in our opinion and according to
given to us and the records of the Company the information and explanations given to us, there are
examined by us, in our opinion, the Company is no funds raised on a short-term basis which have been
generally regular in depositing the undisputed used for long-term investment.
statutory dues, investor education and protection
xviii. The Company has not made any preferential allotment
fund, income-tax, sales-tax, wealth tax, service tax,
of shares to parties and companies covered in the
customs duty, excise duty, cess and other material
register maintained under Section 301 of the Act during
statutory dues as applicable with the appropriate
the year.
authorities. As informed, the provisions relating to
Employees Provident Fund and Miscellaneous xix. The Company has not issued any debentures during the
Provisions Act, 1952 and Employees State Insurance year.
are not applicable to the Company.
xx. The Company has not raised any money by public issues
(b) According to the information and explanations during the year.
given to us and the records of the Company
xxi. During the course of our examination of the books and
examined by us, there are no dues of income-tax,
records of the Company, carried out in accordance with
x. The Company has accumulated losses, as at March 31, on or by the Company, noticed or reported during the
2009 more than fifty percent of its net worth and has year, nor have we been informed of such case by the
incurred cash loss in the financial year ended on that management.
date. The Company has not incurred cash losses in the
immediately preceding financial year.
that:
xi. According to the records of the Company examined by
the Company has not defaulted in repayment of dues
to any financial institution or bank or debenture holders
as at the balance sheet date. (b) In our opinion, proper books of account as required by
law have been kept by the Company so far as appears
xii. The Company has not granted any loans and advances
debentures and other securities. (c) The Balance Sheet, Profit and Loss Account and Cash
xiii. The provisions of any special statute applicable to chit
applicable to the Company. (d) In our opinion, the Balance Sheet, Profit and Loss
xiv. In our opinion, the Company is not a dealer or trader in
shares, securities, debentures and other investments.
explanations given to us, the Company has not given
any guarantee for loans taken by others from banks or
financial institutions during the year.
10 Neeman INC.p65 393 8/19/2009, 12:31 PM

Auditors’ Report
as a director in terms of clause (g) of sub-section (1) of (ii) in the case of the Profit and Loss Account, of the
Section 274 of the Act; loss for the year ended on that date; and
(f) In our opinion and to the best of our information and (iii) in the case of the Cash Flow Statement, of the
according to the explanations given to us, the said cash flows for the year ended on that date.
V.NIJHAWAN
Partner
generally accepted in India: For and on behalf of
affairs of the Company as at March 31, 2009;
10 Neeman INC.p65 394 8/19/2009, 12:31 PM


RUPEES
March 31, 2009 March 31, 2008
SOURCES OF FUNDS
Share Capital 1 36,607,500 36,607,500
Reserves and Surplus 2 - 37,008,485
LOAN FUNDS
Unsecured Loans 3 384,832,020 294,298,104
421,439,520 367,914,089
FIXED ASSETS 4
Gross Block 3,999,661 3,753,663
Net Block 453,843 1,091,947

Sundry Debtors 5 - -
Bank Balances 6 987,878 739,019
9,864,912 4,842,329
Current Liabilities 8 9,635,625 5,065,486
NET CURRENT ASSETS 229,287 (223,157)
FOREIGN CURRENCY TRANSLATION RESERVE 2 53,306,784 -

421,439,520 367,914,089
Price Waterhouse
Gurgaon New Delhi
JUNE 18, 2009 JUNE 18, 2009
10 Neeman INC.p65 395 8/19/2009, 12:31 PM

RUPEES
March 31, 2009 March 31, 2008
INCOME
Service Income 9 26,693,681 27,350,118
Other Income 10 112,240 4,435,971
26,805,921 31,786,089
EXPENDITURE
Personnel, Operating and Administration Expenses 11 26,693,956 24,888,918
Depreciation 4 516,272 663,907
27,210,228 25,552,825
PROFIT / (LOSS) FOR THE YEAR (404,307) 6,233,264
Earnings Per Share (Rs. per Common Share)

- Basic and Diluted (1,244) 19,179
Number of shares used in computing earning per share

The Schedules referred to above form an integral part of For and on behalf of the Board of Directors
the Profit and Loss Account
Price Waterhouse
Gurgaon New Delhi
JUNE 18, 2009 JUNE 18, 2009
10 Neeman INC.p65 396 8/19/2009, 12:31 PM

RUPEES
March 31, 2009 March 31, 2008
NET PROFIT/(LOSS) For the year (404,307) 6,233,264
Adjustments for:
Depreciation 516,272 663,907
Liabilities written back (37,678) (3,898,646)
Debit balances written off 25,181
Net (Profit)/Loss on Fixed Assets Sold (74,562) -
Operating Profit/(Loss) Before Working Capital Changes (275) 3,023,706
Adjustments for:
Trade Receivables - 1,593,553
Trade Payables 4,607,817 (2,449,115)
Other Current Assets (4,773,724) (2,779,282)
Cash From/(Used in) Operating Activities (166,182) (611,138)
Purchase of Fixed Assets (63,456) -
Proceeds from Sale of Fixed Assets 491,235 12,405
Cash From/(Used In) Investing Activities 427,779 12,405
Advances from Group Companies 90,533,916 (25,690,671)
Cash From/(Used In) Financing Activities 90,533,916 (25,690,671)
Net Increase/(Decrease) in Cash and Cash Equivalents 90,795,513 (26,289,404)
Impact of Foreign Exchange Fluctuations (90,546,654) 26,659,161
248,859 369,757
Cash and Cash Equivalents at the beginning of the year 739,019 369,262
Cash and Cash Equivalents at the closing of the year 987,878 739,019
Net Increase/(Decrease) in Cash and Cash Equivalents 248,859 369,757
Notes:
2 Cash and Cash Equivalents at the end of the year consist of Balance with Bank: RUPEES
As at As at
March 31, 2009 March 31, 2008
Balance with Bank 987,878 739,019
987,878 739,019
Cash Flow Statement
Price Waterhouse
Gurgaon New Delhi
JUNE 18, 2009 JUNE 18, 2009
10 Neeman INC.p65 397 8/19/2009, 12:31 PM


RUPEES
As at As at
March 31, 2009 March 31, 2008
SCHEDULE-1
SHARE CAPITAL
Authorised
Common Stock having no par value, 1,500 shares - -
325 (Previous year 325) shares having no par value 36,607,500 36,607,500
(Held by the Holding Company, Neeman Medical International, NV )
(Ultimate holding company, Max India Limited)
36,607,500 36,607,500
SCHEDULE - 2
Foreign Currency Translation Reserve
(Refer Note B2(ii) on Schedule 12)
Opening Balance 37,008,485 10,496,771
Adjustment during the year (90,315,269) 26,511,714
(53,306,784) 37,008,485
SCHEDULE - 3
UNSECURED LOANS
Unsecured Loan from the Holding Company (Repayable on Demand) 384,832,020 294,298,104
384,832,020 294,298,104
SCHEDULE - 4
FIXED ASSETS
(Refer Notes A4, A5 and A6 on Schedule 12)
RUPEES
Particulars As at Additions Deletions Translation As at As at Additions Deletions Translation As at As at As at
April 1, during during Reserve March 31, April 1, during during Reserve March 31, March 31, March 31,
2008 the year the year 2009 2008 the year the year 2009 2009 2008
Tangible Assets
Computers 1,389,972 58,044 - 434,572 1,882,588 1,145,562 288,084 - 387,019 1,820,665 61,923 244,410
Furniture and Fittings 1,745,241 5,431 152,763 519,164 2,117,073 1,198,818 193,258 52,620 385,697 1,725,153 391,920 546,423
Vehicles 618,450 - 721,895 103,445 - 317,336 34,930 405,346 53,080 - - 301,114
Total 3,753,663 63,475 874,658 1,057,181 3,999,661 2,661,716 516,272 457,966 825,796 3,545,818 453,843 1,091,947
Previous year 4,103,123 - 15,138 (334,322) 3,753,663 2,187,417 663,907 2,733 (186,875) 2,661,716 1,091,947
10 Neeman INC.p65 398 8/19/2009, 12:31 PM


RUPEES
As at As at
March 31, 2009 March 31, 2008
SCHEDULE - 5
SUNDRY DEBTORS
(Unsecured, Considered Good)
Debts exceeding six months - -
Other Debts - -
- -
SCHEDULE - 6
BANK BALANCE
With Non-Scheduled Bank in Current Account
- Wachovia Bank, North Carolina, USA* 987,878 739,019
987,878 739,019
*Maximum balance during the year Rs. 4,705,633 (Previous year - Rs. 3,195,710)
SCHEDULE - 7
LOANS AND ADVANCES
Advances to Companies under the Same Management ** 8,112,218 3,742,351
Less: Provision for doubtful advances - -
Advances Recoverable in Cash or in Kind or for Value to be Received 12,245 481
Security Deposits 116,649 93,196
8,877,034 4,103,310
**Amounts due from companies under the same management
- Max HealthStaff International Ltd. 47,092 47,092
- Max Neeman Medical International Ltd. 8,065,126 3,695,259
**Maximum amount outstanding during the year from companies under the same management
- Max HealthStaff International Ltd. 47,092 47,092
- Max Neeman Medical International Ltd. 8,065,126 3,659,259
SCHEDULE - 8
CURRENT LIABILITIES
Sundry Creditors***
-Total Outstanding Dues of Creditors Other Than Micro
Enterprises and Small Enterprises 487,290 131,540
Advances From Customers 8,881,795 4,739,673
Other Liabilities 266,540 194,273
9,635,625 5,065,486
***There are no dues to creditors coming under the definition of micro
Enterprises and small enterprises as at March 31, 2009 and March 31, 2008
10 Neeman INC.p65 399 8/19/2009, 12:31 PM


RUPEES
March 31, 2009 March 31, 2008
SCHEDULE - 9
SERVICE INCOME
Business Development Services 26,693,681 27,350,118
26,693,681 27,350,118
SCHEDULE - 10
OTHER INCOME
Liabilities No Longer Required Written Back 37,678 3,898,646
Miscellaneous Income - 537,325
Profit on Sale of Fixed Assets 74,562 -
112,240 4,435,971
SCHEDULE - 11
PERSONNEL, OPERATING AND ADMINISTRATION EXPENSES
Personnel
Employee Benefits and Taxes 134,099 753,007
Staff Welfare 42,333 62,916
Recruitment 1,170,932 16,647
16,552,490 15,156,333
Operating and Administration
Rent 1,609,814 1,782,943
Repair and Maintenance-Others 489,593 619,695
Advertisement and Publicity 1,278,995 680,624
Communication 926,143 911,200
Insurance 211,134 260,660
Rates and Taxes 1,201,443 1,169,259
Bank Charges - 41,352
Debit Balances written off - 25,181
10,141,466 9,732,585
26,693,956 24,888,918
10 Neeman INC.p65 400 8/19/2009, 12:31 PM


SCHEDULE - 12
The Financial Statements are prepared to comply in all material aspects with all the applicable accounting principles in India, the
1956.
Revenue from clinical trial services is recognised by reference to the stage of completion of clinical study projects subscribed with
pharmaceutical companies.
Revenue from business development services is recognised on accrual basis.
3 Expenditure
4 Fixed Assets
Fixed assets are stated at their original cost including freight, duties, taxes and other incidental expenses relating to acquisition
and installation.
5 Depreciation
Depreciation is charged on straight-line method over the estimated useful lives of the respective assets as follows:
Estimated
Useful Lives in Years
Furniture and fixtures 10
Computer equipment 4-10
Equipment 7-10
Vehicles 3
6 Borrowing Costs
all activities necessary to prepare the qualifying assets for its intended use or sale are complete.
7 Taxation
related revenue and expenses arise. Provision for tax consists of current tax and deferred tax. A provision is made for income taxes
annually based on the tax liability computed at rates as per local laws of United Sates of America after considering applicable tax
allowances and exemptions. Provisions are recorded when it is estimated that a liability due to disallowances or other matters is
probable.
The differences that result between the profit offered for income taxes and the profit as per 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 accounting period and reverse in another, based on the tax effect of the aggregate amount being considered. Deferred tax
10 Neeman INC.p65 401 8/19/2009, 12:31 PM


assets are recognised only if there is virtual certainty that they will be realized and are reviewed for the appropriateness of their
respective carrying values at each balance sheet date.
8 Employee Benefits
The Company used to maintain a 401(k) retirement savings plan for substantially all employees. Participation was subject to the
employee’s age and length of employment with the Company.
With effect from January 31, 2008, the Company has terminated its 401k plan completely.
The Company provides a comprehensive benefits package to all employees, which consist of health, life and disability insurance.

(i) Monetary assets and liabilities related to foreign transactions remaining unsettled at the end of the year are translated at
year-end rates.
10 Leases
Preliminary expenses represent expenses in connection with incorporation of the Company and are written off over a period of 5
years.
Neeman Medical International Inc. is incorporated and operates under the applicable laws of The United States of America.

sheet date (1US$ = Rs.52.1743 as on March 31, 2009 and 1US$ = Rs. 39.9000 as on March 31, 2008).
b) For revenues and expenses using average exchange rates prevailing during the reporting period (1US$ = 46.5739 for the
year April 1, 2008 to March 31, 2009 and 1US$ = 40.4221 for the year April 1, 2007 to March 31, 2008).
11.
3 Contingent liabilities: Rs. Nil
4 The Company leases office space and office equipments under various operating leases.
(i) Lease rentals recognized in the Profit and Loss account for the year are Rs. 1,609,814 (Previous year – Rs. 1,782,943).
(ii) The Company leases its corporate office under an operating lease which will be expiring on January 31, 2011.
(iii) Minimum rental commitments payable in future years under operating leases having an initial or remaining non-cancellable
terms of one year or more at March 31, 2009 are as follows:
10 Neeman INC.p65 402 8/19/2009, 12:31 PM


RUPEES
March 31, 2009 March 31, 2008
Not later than one year 1,469,837 1,312,608
Later than one year and not later than five years 1,255,329 2,182,673
Total Minimum Rentals 2,725,166 3,495,281
5 Deferred Taxes:
The Company has not recognized the deferred tax assets as it is not probable that immediate future taxable profits will be available
against which the deductible temporary differences and unused tax losses can be utilized.

(i) Ultimate Holding Company Max India Ltd.
(ii) Holding Company Neeman Medical International NV
(iii) Fellow subsidiaries Max New York Life Insurance Company Ltd., Max Ateev Limited, Neeman Medical
International BV, Max Neeman Medical International Limited, Neeman Medical
International Latin America, S.A. (till October 26, 2007), Max Medical Services Ltd.,
Max Healthcare Institute Ltd, Max UK Ltd., Pharmax Corporation Ltd, Max HealthStaff
Intenational Limited, Alps Hospital Ltd. (w.e.f. April 6, 2006)
as follows:
RUPEES
Particulars Holding Company Fellow Subsidiaries Key Management
Personnel
Service Fees - 26,693,681 -
(-) (27,350,118) (-)
Loans taken - - -
(25,690,671) (-) (-)
Amount outstanding
- Other receivables - 8,112,218 -
(-) (3,742,351) (-)
- Against loan taken 384,832,020 - -
(294,298,104) (-) (-)
Figures in bracket are for previous year
7 Earnings per share (EPS)

Calculation of EPS (Basic and Diluted) RUPEES
Particulars For the year ended For the year ended
March 31, 2009 March 31, 2008
Basic and Diluted
Profit / (Loss) for the year (404,307) 6,233,264
Common Stock Outstanding 325 325
EPS (Rs.) (1,244) 19,179
Share Details (Nos.)
10 Neeman INC.p65 403 8/19/2009, 12:31 PM


8 Auditors’ Remuneration RUPEES
- Audit Fee 46,574 20,211
Total 46,574 20,211
9 Segment Reporting
The Company operates only in one business segment viz. Business Development Services in United States of America. Accordingly
there are no reportable business segments.

10 Neeman INC.p65 404 8/19/2009, 12:31 PM


Registration No. 0 5 6 5 2 5 5 State Code N A
Date Month Year
N I L N I L
N I L N I L
4 2 1 4 4 0 4 2 1 4 4 0
SOURCES OF FUND
3 6 6 0 7 N I L
N I L 3 8 4 8 3 3
4 5 4 N I L
√ 2 2 9 N I L
Accumulated Losses
4 2 0 7 5 7
2 6 8 0 6 2 7 2 1 0
√ 4 0 4 √ 4 0 4
√ 1 2 4 4 N I L
+ - Diluted
√ 1 2 4 4
Product Description B U S I N E S S D E V E L O PME N T
10 Neeman INC.p65 405 8/19/2009, 12:31 PM

10 Neeman INC.p65 406 8/19/2009, 12:31 PM

MAX NEEMAN MEDICAL INTERNATIONAL LIMITED
(formerly NEEMAN MEDICAL INTERNATIONAL (ASIA) LIMITED)
Directors’ Report
Your Directors are pleased to present their Tenth Annual Report, employees, with majority holding medical and pharmacological
along with the Audited Accounts for the financial year ended March degrees. Extensive training program combined with best industry
31, 2009. practices resulted in best retention rates and helped MNMI attract
FINANCIAL RESULTS qualified personnel.
Your Company recorded a revenue of Rs 15 crore during the year Patient retention rate, a critical business driver in clinical trials, is
under review against Rs.11.05 crore for the previous year; an at approximately 98% in MNMI. MNMI’s prestigious customers
increase of 36%. Your Company recorded a profit of Rs.1.18 crore include large pharmaceutical companies such as Merck,
during the current year against a profit of Rs 0.08 crore for the GlaxoSmithKline, Bristol Myers Squibb, Sanofi-Aventis, Johnson &
previous year. Your Company added 5 new clients during the year Johnson, Novartis, AstraZeneca, Dabur and Wyeth as well as other
under review, to take its total client base to 48. medium sized companies such as Achillion, Actelion, GlobeImmune,
AP Pharma, ORA, KV Pharmaceuticals and Onconova.
BUSINESS PERFORMANCE
DIVIDEND
Max Neeman Medical International (MNMI) is a value added
contract research organization (CRO) providing a broad range of In view of the accumulated losses, your Directors do not recommend
clinical research services to global pharmaceutical, device and any dividend for the year under review.
biotechnology companies. PARTICULARS OF DEPOSITS
MNMI also collaborates with other CROs in providing a variety of Your Company has not accepted any deposits from the public during
clinical services. MNMI provides clinical research services in the the year under review. There were no unclaimed/overdue deposits
space of phase II, III, & IV studies and has access to over 800 ICH as at March 31, 2009.
GCP trained investigators. The team of over 120 clinical research
coordinators/clinical research associates present in 22 cities across
India gives it access to patients and investigator sites for various Information in accordance with the provisions of Section 217(1)(e)
therapeutic areas. Since commencement of its Indian operations, of the Companies Act, 1956 read with the Companies (Disclosure
over 5,800 subjects have been enrolled at over 200 sites out of of Particulars in the Report of Board of Directors) Rules, 1988, are
which over 2,100 patients were enrolled in fiscal 2008-09. An as follows:
impressive operating standard has enabled MNMI to provide services
A. Conservation of Energy :
to 21 clients over 55 contracts during fiscal 2008-09. MNMI’s
automated workflow process using the SAS CDMS (PheedIT) The Company has taken measures to reduce the energy
software system ensures efficient and accurate data management. consumption, by using energy efficient equipment,
Max Neeman is also awarded its 150th trial during the fiscal 2008-09. incorporating latest technology and regular maintenance.
MNMI built three two-way alliances in US and Europe with mid- B. Research & Development and Technology Absorption : Nil
sized CROs and two strategic alliances for outsourcing business
C. Foreign Exchange Earnings and Outgo :
development efforts in US.
(Rs. crore)
MNMI follows a robust system of quality control and all its
For the For the
operational activities are governed by strict adherence to ICH-GCP
year ended year ended
guidelines. It is the first CRO whose 4 sites have been audited
March 31, 2009 March 31, 2008
successfully by USFDA for highest enrollment globally. MNMI has
i) Foreign Exchange Earnings 9.54 7.32
been certified for ISO 9001:2000 for site management, monitoring,
and data management. All the activities and operations are governed
by robust Standard Operating Procedures (SOPs).
Clinical research industry is highly people-oriented requiring a lot - Trading Goods Nil Nil
of focus on training and development. MNMI has 207 full time Others 2.78 2.84
11 MNMI.p65 409 8/19/2009, 12:32 PM

Directors’ Report
PARTICULARS OF EMPLOYEES that are reasonable and prudent, so as to give a true and fair
The particulars of employees as required under Section 217 (2A) of
the Companies Act, 1956 are given in a separate annexure to this
that period;
report. This Annexure is not being sent along with this Report to
the members of the Company in line with the provisions of Section (iii) The Directors had taken proper and sufficient care for the
219 (b) (iv) of the Companies Act. Members who are interested in maintenance of adequate accounting records in accordance
obtaining these particulars may write to the Company Secretary at with the provisions of the Companies Act, 1956 for
the Registered Office of the Company. None of the employees listed safeguarding the assets of the Company and for preventing
in the said Annexure is a relative of any Director of the Company. and detecting fraud and other irregularities; and
None of the employees hold (by himself or along with his spouse
(iv) The Directors had prepared the annual accounts on a going
and dependent children) more than 2% of the equity shares of the
concern basis.
Company.
AUDITORS
DIRECTORS
In accordance with the provisions of the Companies Act, 1956, Mr.
Auditors of the Company, retire at the conclusion of the ensuing
Analjit Singh is liable to retire by rotation at the ensuing Annual
Annual General Meeting and are eligible for re-appointment. The
General Meeting and being eligible offer himself for re-appointment.
Company has obtained from them a Certificate to the effect, that
DIRECTORS’ RESPONSIBILITY STATEMENT their re-appointment, if made, will be in conformity with the limits
1956, the Directors confirm that: For and on behalf of the Board of Directors
(i) In the preparation of annual accounts, the applicable New Delhi Analjit Singh
accounting standards have been followed, along with proper JULY 29, 2009 Chairman
(ii) The Directors had selected such accounting policies and

11 MNMI.p65 410 8/19/2009, 12:32 PM

Auditors’ Report
TO THE MEMBERS OF MAX NEEMAN MEDICAL INTERNATIONAL (b) The Company has not taken any loans, secured or
LIMITED unsecured, from companies, firms or other parties
1. We have audited the attached Balance Sheet of Max Neeman
301 of the Act.
Medical International Limited , as at March 31, 2009, and the
related Profit and Loss Account and Cash Flow Statement for iv. In our opinion and according to the information and
the year ended on that date annexed thereto, which we have explanations given to us, having regard to the explanation
signed under reference to this report. These financial that certain items purchased are of special nature for which
statements are the responsibility of the Company’s suitable alternative sources do not exist for obtaining
management. Our responsibility is to express an opinion on comparative quotations, there is an adequate internal control
these financial statements based on our audit. system commensurate with the size of the Company and the
nature of its business for the purchase of fixed assets and for
the sale of goods and services. Further, on the basis of our
examination of the books and records of the Company, and
according to the information and explanations given to us,
we have neither come across nor have been informed of any
continuing failure to correct major weaknesses in the aforesaid
internal control system.
the accounting principles used and significant estimates made v. (a) In our opinion and according to the information and
by management, as well as evaluating the overall financial explanations given to us, the particulars of contracts or
statement presentation. We believe that our audit provides a arrangements referred to in Section 301 of the Act have
reasonable basis for our opinion. been entered in the register required to be maintained
under that section.
as amended by the Companies (Auditor’s Report) (Amendment) (b) In our opinion and according to the information and
Order, 2004, issued by the Central Government of India in explanations given to us, there are no transactions made
terms of sub-section (4A) of Section 227 of ‘The Companies in pursuance of such contracts or arrangements and
Act, 1956’ of India (the ‘Act’) and on the basis of such checks exceeding the value of Rupees Five Lakhs in respect of
of the books and records of the Company as we considered any party during the year, which have been made at
appropriate and according to the information and prices which are not reasonable having regard to the
explanations given to us, we further report that: prevailing market prices at the relevant time.
i. (a) The Company is maintaining proper records vi. The Company has not accepted any deposits from the public
showing full particulars including quantitative within the meaning of Sections 58A and 58AA of the Act and
details and situation of fixed assets. the rules framed there under.
(b) The fixed assets of the Company have been vii. In our opinion, the Company has an internal audit system
physically verified by the management during the commensurate with its size and nature of its business.
book records and the physical inventory have been viii. The Central Government of India has not prescribed the
noticed. In our opinion, the frequency of maintenance of cost records under clause (d) of sub-section
verification is reasonable. (1) of Section 209 of the Act for any of the products of the
Company.
and explanations given to us, a substantial part ix. (a) According to the information and explanations given
of fixed assets have not been disposed of by the to us and the records of the Company examined by us,
Company during the year. in our opinion, the Company is generally regular in
depositing the undisputed statutory dues including
ii. There are no stocks with the Company or with the third provident fund, investor education and protection fund,
parties. employees’ state insurance, income-tax, sales-tax,
wealth tax, service tax, customs duty, excise duty, cess
iii. (a) The Company has not granted any loans, secured
and other material statutory dues as applicable with
the appropriate authorities.
301 of the Act. (b) According to the information and explanations given
11 MNMI.p65 411 8/19/2009, 12:32 PM

Auditors’ Report
to us and the records of the Company examined by us, come across any instance of fraud on or by the Company,
there are no dues of income-tax, sales tax, wealth tax, noticed or reported during the year, nor have we been
service tax, customs duty, excise duty and cess as at informed of such case by the management.
March 31,2009 which have not been deposited on
account of any dispute.
that:
x. The Company has accumulated losses, as at March 31, 2009
more than fifty percent of its net worth and has not incurred
cash loss in the financial year ended on that date. The
Company had not incurred any cash losses in the immediately
preceding financial year. (b) In our opinion, proper books of account as required by
law have been kept by the Company so far as appears
xi. According to the records of the Company examined by us
and the information and explanation given to us, the Company
has not defaulted in repayment of dues to any financial (c) The Balance Sheet, Profit and Loss Account and Cash
institution or bank or debenture holders as at the balance Flow Statement dealt with by this report are in
sheet date. agreement with the books of account;
xii. The Company has not granted any loans and advances on the (d) In our opinion, the Balance Sheet, Profit and Loss
basis of security by way of pledge of shares, debentures and Account and Cash Flow Statement dealt with by this
other securities. report comply with the accounting standards referred
xiii. The provisions of any special statute applicable to chit fund/
nidhi/ mutual benefit fund/ societies are not applicable to (e) On the basis of written representations received from
the Company. the directors, as on March 31, 2009 and taken on record
xiv. In our opinion, the Company has maintained proper records of
transactions and contracts relating to dealing or trading in
shares, securities, debentures and other investments during the
year and timely entries have been made therein. Further, such
securities have been held by the Company in its own name. (f) In our opinion and to the best of our information and
explanations given to us, the Company has not given any
guarantee for loans taken by others from banks or financial
institutions during the year.
xvi. The Company has not obtained any term loans. generally accepted in India:
xvii. On the basis of an overall examination of the balance sheet (i) in the case of the Balance Sheet, of the state of
of the Company, in our opinion and according to the affairs of the Company as at March 31, 2009;
information and explanations given to us, there are no funds
raised on a short-term basis which have been used for long-
term investment.
xviii. The Company has not made any preferential allotment of
V.NIJHAWAN
xix. The Company has not issued any debentures during the year. Partner
xx. The Company has not raised any money by public issues during
the year. For and on behalf of
Price Waterhouse
xxi. During the course of our examination of the books and records
of the Company, carried out in accordance with the generally
accepted auditing practices in India, and according to the Gurgaon
information and explanations given to us, we have neither JUNE 18, 2009
11 MNMI.p65 412 8/19/2009, 12:32 PM


RUPEES
March 31, 2009 March 31, 2008
SOURCES OF FUNDS
Share Capital 1 42,168,130 42,168,130
LOAN FUNDS
Unsecured Loans 2 88,804,987 66,083,013
Deferred Tax Liability (Net) 3 - 103,097
130,973,117 108,354,240
FIXED ASSETS 4
Gross Block 33,414,338 30,435,585
18,862,178 21,162,819
INVESTMENTS 5 - 1,345,641
Deferred Tax Asset (Net) 3 3,905,641 -

Sundry Debtors 6 75,104,831 28,855,806
Other Current Assets 8 7,629,821 8,518,648
109,042,524 56,183,299
Current Liabilities 10 56,526,519 41,289,087
Provisions 11 5,132,116 2,068,032
61,658,635 43,357,119

130,973,117 108,354,240
V. NIJHAWAN DR. PERVEZ AHMED Director
Membership No. F 87228 REENA ANEJA Company Secretary
Price Waterhouse
Gurgaon New Delhi
JUNE 18, 2009 JUNE 18, 2009
11 MNMI.p65 413 8/19/2009, 12:32 PM

RUPEES
March 31, 2009 March 31, 2008
INCOME
Income from Operations 12 139,702,463 102,992,455
Other Income 13 10,170,264 3,066,822
149,872,727 106,059,277
EXPENDITURE
Personnel, Operating and Administrative Expenses 14 134,600,130 99,060,730
Depreciation 4 5,279,394 4,957,336
139,910,018 104,338,687
PROFIT/(LOSS) BEFORE TAX 9,962,709 1,720,590

Tax Expense
- Fringe Benefit Tax 898,622 740,637
- Income Tax 874,633 -
- Deferred Tax (4,008,737) 141,335
PROFIT/(LOSS) AFTER TAX 12,198,191 838,618
Less : Transitional liability recognized pursuant to adoption

of AS-15 (Revised) on “Employee Benefits” - (74,260)
BALANCE CARRIED FORWARD TO BALANCE SHEET (60,821,409) (73,019,600)

Earning Per Share (Rs. per equity share of Rs. 10/- each)
- Basic and Diluted 2.93 0.20
(Refer Note B(6) on Schedule 16)
Number of shares used in computing earning per share
- Basic and Diluted 4,166,813 4,166,813
Price Waterhouse
Gurgaon New Delhi
JUNE 18, 2009 JUNE 18, 2009
11 MNMI.p65 414 8/19/2009, 12:32 PM

RUPEES
March 31, 2009 March 31, 2008
NET PROFIT/(LOSS) BEFORE TAX 9,962,709 1,720,590
Adjustments for:
Depreciation 5,279,394 4,957,336
Income from Investment - Dividend (73,858) (197,264)
Net (Profit)/Loss on Sale of Investments - 11,713
Liability no Longer Required Written Back - (1,534,565)
Unrealised Foreign Exchange (Gain)/Loss (2,251,949) (51,652)
Other Provisions 3,064,084 1,275,632
Adjustments for:
Trade Receivables (42,559,774) (21,660,385)
Other Receivables (3,119,911) (2,875,961)
Trade Payables 13,800,129 5,263,140
Other Current Assets (1,910,576) (7,494,538)
Cash Generated From Operations (17,956,939) (20,832,005)
Direct taxes refunded/(paid) 2,235,482 (778,875)
Cash From / (Used in) Operating Activities (15,721,457) (21,610,880)

Purchase of Fixed Assets (2,978,753) (4,206,301)
Proceeds from Sale of Investments 1,345,641 34,800,000
Purchase of Investments - (34,197,265)
Interest Received 147,188 246,051
Dividend Received 73,858 197,264
Cash From/ (Used In) Investing Activities (1,412,066) (3,160,251)

Unsecured loans 22,721,974 29,348,777
Cash From/ (Used In) Financing Activities 22,721,974 29,348,777
Cash and Cash Equivalents - As At March 31, 2008 7,280,780 2,703,134
Cash and Cash Equivalents - As At March 31, 2009 12,869,231 7,280,780
Notes
1 The above Cash Flow Statement has been prepared under the “Indirect Method” as set out in the Accounting Standard-3 on
Cash Flow Statements issued by the Institute of Chartered Accountants of India.
2 Cash and Cash Equivalents at the end of the year consists of cash and balances with banks:
11 MNMI.p65 415 8/19/2009, 12:32 PM

RUPEES
As at As at
March 31, 2009 March 31, 2008
Cash 54,644 70,237
Balances with Banks 12,814,587 7,210,543
12,869,231 7,280,780
3 Previous years’ figures have been regrouped wherever necessary to confirm to current years’ classification.
Cash Flow Statement
Price Waterhouse
Gurgaon New Delhi
JUNE 18, 2009 JUNE 18, 2009
11 MNMI.p65 416 8/19/2009, 12:32 PM


RUPEES
As at As at
March 31, 2009 March 31, 2008
SCHEDULE-1
SHARE CAPITAL
Authorised
4,250,000 (Previous year 4,250,000) Equity Shares of Rs. 10/- each 42,500,000 42,500,000
1,00,000 (Previous year 100,000) 13% Non-Cumulative 1,000,000 1,000,000
Redeemable Preference Shares of Rs. 10/- each
Issued, Subscribed and Paid up
4,166,813 (Previous year 4,166,813) Equity Shares of Rs. 10/- each 41,668,130 41,668,130
(held by Max India Limited, the holding company)
50,000 (Previous year 50,000) 13% Non-cumulative 500,000 500,000

Redeemable Preference Shares of Rs. 10/- each
(held by Max India Limited, the holding company)
(Refer Note B(2) on Schedule 16)
42,168,130 42,168,130
SCHEDULE - 2
UNSECURED LOANS
Unsecured Loan
-From Max India Limited [(the Holding Company) (repayable on demand)] 88,804,987 66,083,013
88,804,987 66,083,013
SCHEDULE - 3
DEFERRED TAX LIABILITY (NET)
(Refer Notes A(6) and B(3) on Schedule 16)

Opening Balance 3,924,755 1,433,527
Movement during the year (1,434,761) 2,491,228
Closing Balance 2,489,994 3,924,755
Deferred Tax Asset
Opening Balance (3,821,658) (1,433,527)
Impact of transitional liability on employee benefits - (38,238)
Movement during the year (2,573,977) (2,349,893)
Closing Balance (6,395,635) (3,821,658)
Net Deferred Tax Liability/(Asset) (3,905,641) 103,097
11 MNMI.p65 417 8/19/2009, 12:32 PM


SCHEDULE - 4
FIXED ASSETS
(Refer Notes A(3), and A(4) on Schedule 16)
RUPEES
Particulars As at Additions As at As at For the As at As at As at
April 01, 2008 During the Year March 31, 2009 April 01, 2008 year March 31, 2009 March 31, 2009 March 31, 2008
Tangible Assets
Leasehold Improvements 2,995,760 180,000 3,175,760 2,039,623 345,213 2,384,836 790,924 956,137
Plant and Machinery 563,739 38,727 602,466 27,377 28,334 55,711 546,755 536,362
Furniture and Fixtures 1,136,685 199,581 1,336,266 361,635 145,014 506,649 829,617 775,050
Office Equipment 1,746,502 1,007,658 2,754,160 378,702 125,962 504,664 2,249,496 1,367,800
Computers 7,220,061 1,477,335 8,697,396 1,773,051 1,271,934 3,044,985 5,652,411 5,447,010
Intangible Assets
Software 11,043,994 75,452 11,119,446 3,072,606 2,217,168 5,289,774 5,829,672 7,971,388
Technical Know-How 5,728,844 - 5,728,844 1,619,772 1,145,769 2,765,541 2,963,303 4,109,072
Total 30,435,585 2,978,753 33,414,338 9,272,766 5,279,394 14,552,160 18,862,178 21,162,819
Previous year 26,229,284 4,206,301 30,435,585 4,315,430 4,957,336 9,272,766
Note: Leasehold improvements include civil and other improvements at Company’s Office.
RUPEES
As at As at
March 31, 2009 March 31, 2008
SCHEDULE - 5
INVESTMENTS
(Refer Notes A(5) and B(8) on Schedule 16)
Current Non Trade (Unquoted), at Cost

Units in Mutual Fund - 1,345,641
- 1,345,641
Aggregate value of unquoted investments - 1,345,641
SCHEDULE - 6
SUNDRY DEBTORS
(Unsecured)
- Considered good 2,836,586 74,999
- Considered doubtful 1,511,650 591,969
Less: Provision for doubtful debts (1,511,650) (591,969)
2,836,586 74,999
Other Debts
- Considered good 72,268,245 28,780,807
75,104,831 28,855,806
11 MNMI.p65 418 8/19/2009, 12:32 PM


RUPEES
As at As at
March 31, 2009 March 31, 2008
SCHEDULE - 7
Cash in Hand 54,644 70,237
Balance with Scheduled Banks
-In Fixed Deposit Accounts* 1,703,474 1,500,000
*held by Yes Bank Limited in lien of Bank Guarantee
(Refer Note B(1) on Schedule16) 12,869,231 7,280,780
SCHEDULE - 8
Unbilled Income 7,519,660 8,320,845
Interest Receivable 110,161 197,803
7,629,821 8,518,648
SCHEDULE - 9
LOANS AND ADVANCES
(considered good)
Unsecured
Advances to companies under the same management * 549,356 -
Less: Provision made for doubtful advances - -
Advances recoverable in cash or in kind
or for value to be received 9,667,602 5,975,068
Less: Provision made for doubtful advances 6,435,296 3,232,306 -
Advance Income Tax [net of provision for tax
of Rs 1,780,198 (Previous year Rs 130,565)] 6,681,601 3,269,257
Prepaid Expenses 2,537,996 2,120,358
13,438,641 11,528,065
*Amount recoverable from Pharmax Corporation Limited; maximum amount
outstanding during the year being Rs 1,416,482 (Previous year Rs NIL)
SCHEDULE - 10
CURRENT LIABILITIES
Sundry Creditors
-Total Outstanding Dues of micro enterprises and small enterprises* - -
-Total Outstanding Dues of creditors other than micro enterprises
and small enterprises 32,562,237 20,082,180
Advances From Customers 19,518,306 16,038,310
56,526,519 41,289,087
*As certified by the management.
11 MNMI.p65 419 8/19/2009, 12:32 PM


RUPEES
As at As at
March 31, 2009 March 31, 2008
SCHEDULE - 11
PROVISIONS
(Refer Note A(7) and B(11) on Schedule 16)
Gratuity 1,183,803 671,325
Leave Encashment 3,948,313 1,396,707
5,132,116 2,068,032

March 31, 2009 March 31, 2008
SCHEDULE - 12
INCOME FROM OPERATIONS
(Refer Note A(2) on Schedule 16)
Clinical Trial Services * 126,439,199 96,348,964
Clinical Data Management Services 8,989,293 3,341,290
Others 4,273,971 3,302,201
139,702,463 102,992,455
* Tax deducted at source of Rs. 4,256,925 ( Previous year Rs. 2,472,074)
SCHEDULE - 13
OTHER INCOME
Interest (Gross) on :
-Fixed Deposits* 145,884 107,101
-Others 1,304 138,950
Dividend income from Non Trade Investments-Current 73,858 197,264
Liabilities no longer required written back - 1,534,565
Gain on Foreign Exchange Fluctuation (Refer Note A(8) on Schedule 16) 7,466,982 51,652
Miscellaneous Income 2,482,236 1,037,290
10,170,264 3,066,822
*Tax deducted at source of Rs. 30,052 (Previous year Rs. 22,063)
11 MNMI.p65 420 8/19/2009, 12:32 PM


RUPEES
March 31, 2009 March 31, 2008
SCHEDULE - 14
Personnel Expenses
Contribution to Provident and Other Funds 2,289,189 1,545,983
Staff Welfare 2,178,861 1,262,966
Recruitment 177,832 2,160,170
69,589,880 48,829,219
Operating and Administrative Expenses
Clinical Trial Expenses 150 12,356
Rent 5,278,515 4,209,487
Electricity and Water 1,195,831 993,855
Repair and Maintenance-Others 5,919,337 3,885,092
Printing and Stationery 1,677,921 1,082,737
Business Promotion 628,425 516,504
Communication Expenses 4,059,487 2,742,304
Training and Seminar Expenses 505,599 118,234
Insurance 1,771,574 1,278,828
Charity and Donation 208,185 332,000
Loss on sale of Non Trade Investments-Current - 11,713
License Fee-Software 1,426,064 101,863
Business Development Fee 26,705,453 27,182,937
Provision for Doubtful Debts 919,681 -
Provision for Doubtful Advances 6,435,296 -
Membership and Subscription 236,073 285,063
65,010,250 50,231,511
134,600,130 99,060,730
SCHEDULE - 15
FINANCIAL EXPENSES
Interest - Others 4,834 290,194
30,494 320,621
11 MNMI.p65 421 8/19/2009, 12:32 PM


SCHEDULE - 16

1956.
Revenue from clinical trial services is recognised with reference to the stage of completion of clinical study projects subscribed
with pharmaceutical companies.
Revenue from clinical data management services is recognised with reference to the stage of completion of clinical data management
service projects subscribed with pharmaceutical companies.
3 Fixed Assets
(a) Fixed assets are stated at their original cost of acquisition including freight, duties, taxes and other incidental expenses
(b) Expenses of revenue nature, which are related to project set-up, are transferred to “Pre operative expenses pending
capitalisation”. These expenses are allocated to fixed assets in the year of commencement of the related project.
(c) Intangible assets are recognised if they are separately identifiable and the company controls the future economic benefits
arising out of them. All other expenses on intangible items are charged to the Profit and Loss Account. Intangible assets are
stated at cost less accumulated amortisation and impairment.
4 Depreciation / Amortisation
(i) Depreciation on fixed assets is provided on Straight-line method on a pro-rata basis as per rates prescribed under Schedule
XIV to the Companies Act, 1956.
(ii) Leasehold improvements are amortised over the respective periods of lease.
(iii) Assets costing not more than Rs. 5,000 each individually are depreciated at 100% in the year of addition.
(iv) Software/Technical Know-how in the nature of intangible assets are depreciated over a period of five years.
5 Investments
Investments are either classified as current investments or long term investments. The cost of investments includes acquisition
6 Taxation
related revenue and expense arise. Provision for tax consists of current tax and deferred tax. A provision is made for the income tax
annually based on the tax liability computed, after considering tax allowances and exemptions. Provisions are recorded when it is
estimated that a liability due to disallowances or other matters is probable.
The differences that result between the profit offered for income tax and the profit 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 accounting period and reversed 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 period based on the prevailing enacted or substantially
enacted regulations. Deferred tax assets are recognised only if there is virtual certainty that they will be realised and reviewed for
the appropriateness of their carrying values at each balance sheet date.
7 Employee Benefits
(i) Gratuity
In accordance with the Payment of Gratuity Act, 1972, the Company provides gratuity, a benefit plan (the “Gratuity Plan”)
11 MNMI.p65 422 8/19/2009, 12:32 PM


covering eligible employees. The Gratuity Plan provides a lump sum payment to vested employees at retirement, death,
incapacitation or termination of employment, of an amount based on the respective employee’s salary and the tenure of
employment. Liabilities with regard to the Gratuity Plan are determined by actuarial valuation, based upon which, the Company
contributes to a Master policy with the Life insurance Corporation of India.
(ii) Provident Fund
contributions under Provident Fund to “Regional Provident Fund Commissioner”. Both the employee and the Company make
monthly contributions to the above said office equal to a specific percentage of the covered employee’s salary.
(iii) Leave Encashment
Accrual for Leave encashment is made on the basis of actuarial valuation done at the year-end.

at year-end rates.
(ii) The difference in translation of monetary assets and liabilities and realised gains and losses on foreign exchange transactions
9 Leases
RUPEES
Bank Guarantees 1,500,000 1,500,000
2 The Company had issued 50,000 13% Non Cumulative Redeemable Preference shares of Rs. 10 each amounting to Rs. 500,000 on
December 9, 2002, which were due for redemption on December 09, 2006. With the consent of the Preference Shareholder and the
holding company i.e. Max India Limited; the Company had extended the date of redemption to December 09, 2009.
Also, the Company has not provided for any dividend on the above said Redeemable Preference Shares.
3 Deferred Tax
The break up and movement of deferred tax assets and deferred tax liabilities into major components is given below:
RUPEES
Particulars Opening as Movement Closing as at
at April 1, 2008 during the period March 31, 2009
Deferred Tax Asset
Deduction u/s 43B 1,299,793 286,031 1,585,824
Provision for Doubtful Debts/Advances 220,960 2,234,646 2,455,606
Bonus 2,300,905 53,300 2,354,205
Sub Total 3,821,658 2,573,977 6,395,635
Deferred Tax (Liability)
Depreciation (3,924,755) 1,434,761 (2,489,994)
Sub Total (3,924,755) 1,434,761 (2,489,994)
Net Deferred Tax (Liability)/Asset (103,097) 4,008,738 3,905,641
Note: Deferred tax assets are created to the extent of their realisability in future.
11 MNMI.p65 423 8/19/2009, 12:32 PM


4 Accounting for leases has been done in accordance with Accounting Standard-19 issued by the Institute of Chartered Accountants
of India. Following are the details of lease transactions for the year:
(a) Finance Lease
(b) Operating Lease
(i) Lease rentals recognized in the Profit and Loss Account for the year are Rs. 5,278,515 (Previous year Rs. 4,209,487).
(ii) The company has entered into operating leases for its office and for employees’ residence that are renewable on a
periodic basis and cancelable at Company’s option. The company has not entered into sublease agreements in respect of
these leases.
(iii) There are no future commitments for lease payments for any of the above mentioned lease agreements.

(i) Holding Company Max India Ltd.
(ii) Fellow subsidiaries Max New York Life Insurance Company Ltd., Neeman Medical International BV, Neeman Medical
International NV, Max Neeman Medical International Inc. USA, Neeman Medical International,
Latin America, S.A. (till October 26, 2007), Pharmax Corporation Ltd., Max Ateev Limited, Max
UK Ltd., Max HealthStaff International Ltd., Max Healthcare Institute Limited, Max Medical
Services Limited, ALPS Hospital Limited (w.e.f. April 6, 2006).
(iii) Key Management Personnel Mr. B. Anantharaman
are as follows:
RUPEES
S No Particulars Holding Company Fellow Subsidiaries
1 Expenses
- Rent Expense 54,000 4,677,858
(54,000) (3,871,474)
- Business Development Fee - 26,705,453
(-) (27,182,937)
- Other Expenses - 1,109,015
(-) (3,589,168)
- Expenses Reimbursed 2,020,977 -
(2,307,788) (31,341)
2 Purchase of Fixed Assets 646,995 -
(-) (-)
3 Balance written off - -
(-) (1,524,064)
4 Loans taken 22,721,972 -
(29,348,777) (-)
- Against loan taken 88,804,985 -
(66,083,013) (-)
- Other receivables - 549,356
(-) (-)
- Other payables - 8,123,770
(-) (4,326,808)
Figures in brackets are for previous year.
11 MNMI.p65 424 8/19/2009, 12:32 PM


6 Earnings per share (EPS)
Calculation of EPS (Basic and Diluted) RUPEES
March 31, 2009 March 31, 2008
Basic and Diluted
Profit/(Loss) after Tax (Rs.) 12,198,191 838,618
Weighted average number of Equity Shares 4,166,813 4,166,813
EPS (Rs.) 2.93 0.20
Share Details (Nos)
Issued during the year - -
7 Auditors’ Remuneration
RUPEES
- Audit Fee (including service tax) 45,000 44,944
8 Investments
The details of Investments are given below: RUPEES
Particulars Face Value Numbers as at Value as at Numbers as at Value as at
March 31, 2009 March 31, 2009 March 31, 2008 March 31, 2008
CURRENT NON TRADE
(UNQUOTED), AT COST
Kotak Liquid Fund – Dividend Scheme 10 - - 133,043 1,345,641
MOVEMENT IN CURRENT NON TRADE INVESTMENTS (UNQUOTED)

Purchase Sales
Name of Investment Face Value Unit (Numbers) Value Unit (Numbers) Value
Kotak Liquid Fund
- Dividend Scheme 10 1,805 73,858 134,848 1,419,499
9 Expenditure/Earning in Foreign Currency RUPEES

(a) Expenditure in Foreign Currency
Professional Fee and Business Development Fee 26,705,453 27,289,705
Travelling 1,056,146 1,135,643
(b) Earning in Foreign Currency
-Service Income 95,405,375 73,225,526
11 MNMI.p65 425 8/19/2009, 12:32 PM


a) Business Segment: The Company has considered business segment as the primary segment for disclosure. The services considered
are Clinical Research and Clinical Data Management Services.
b) Geographical Segment: The Company has considered geographical segment as secondary reporting segment for disclosure.
For this purpose, the revenues are bifurcated based on location of customers in India and outside India.
SEGMENT INFORMATION
Primary Segment RUPEES
Particulars Clinical Research Clinical Data Total
Management Services
a) Segment Revenue from:
- Service income from external customers 130,713,170 8,989,293 139,702,463
(100,797,531) (3,341,291) (104,138,822)
- Other Income 2,031,680 - 2,031,680
(1,002,671) (-) (1,002,671)
Total Segment Revenue 132,744,850 8,989,293 141,734,143
(101,800,202) (3,341,291) (105,141,493)
Add : Unallocated Income
Dividend, Interest Income and other Incomes 8,138,584
(917,784)
Total Revenue 149,872,727
(106,059,277)
b) Segment Results 10,829,392 (8,792,247) 2,037,145
(11,561,218) (9,736,308) (1,824,910)
Add : Unallocated Income
Dividend , Interest Income, and other Income 8,138,584
(529,587)
Less : Unallocated Expenses
Loss on sale of investments, Interest, and Donation 213,020
(633,907)
Profit/(Loss) before tax 9,962,709
(1,720,590)
Tax Expense (including provision for Deferred Tax Liabilities) (2,235,482)
(881,972)
Net Profit/(Loss) after tax 12,198,191
(838,618)
c) Carrying amount of segment assets 97,289,051 17,636,259 114,925,310
(58,179,315) (18,140,962) (76,320,277)
Add: Unallocated Assets 16,885,033
(3,043,444)
(79,363,721)
d) Segment Liabilities 47,095,657 1,046,320 48,141,977
(38,818,879) (2,924,117) (41,742,996)
Add: Unallocated Liabilities 102,321,643
(68,472,195)
(110,215,191)
11 MNMI.p65 426 8/19/2009, 12:32 PM


Primary Segment RUPEES
Particulars Clinical Research Clinical Data Total
Management Services
e) Cost to acquire tangible and intangible 2,262,658 716,095 2,978,753
fixed assets during the year (3,104,932) (1,101,369) (4,206,301)
Total Addition 2,978,753
(4,206,301)
f) Depreciation and amortisation expense 1,314,525 3,964,869 5,279,394
(1,039,606) (3,917,730) (4,957,336)
Total depreciation and amortisation 5,279,394
(4,957,336)
g) Non-cash expenses other than depreciation and amortisation - - -
(-) (-) (-)
Total -
(-)
Secondary Segment RUPEES

Particulars India Europe, North Total
America and
Singapore
a) Revenue from external customers 44,297,088 95,405,375 139,702,463
(29,766,929) (73,225,526) (102,992,455)
b) Carrying amount of segment assets by location of assets 76,691,828 55,118,515 131,810,343
(52,500,025) (23,820,252) (76,320,277)
c) Cost to acquire tangible and intangible fixed 33,414,338 - 33,414,338
assets by location of assets (30,435,585) (-) (30,435,585)
(Figures in bracket are for previous year)
The Company has adopted Accounting Standard, AS-15 (revised 2005), on employee benefits with effect from April 1, 2007.
Accordingly, the transitional obligation of the company amounting to Rs. 0.74 lacs (Net of tax of Rs. 0.38 lacs) towards gratuity and
leave encashment liability has been charged off to General Reserve in previous year.
The following table set out the status of the gratuity and leave liability as required under AS-15.
Present value of the defined benefit obligation:
Obligations at period at beginning 01.04.2008 965,510 1,396,707
Service Cost 679,393 1,725,324
Benefits paid (357,808) (484,500)
Actuarial (gain)/loss 290,661 1,199,045
Obligations at period at end 31.03.2009 1,654,997 3,948,313
Defined benefit obligation liability as at the balance sheet is not wholly funded by the company
Change in plan assets
Plans assets at period beginning, at fair value 01.04.08 294,185 -
Expected return on plan assets 39,530 -
Actuarial gain/(loss) - -
11 MNMI.p65 427 8/19/2009, 12:32 PM


Contributions 495,287 -
Benefits paid (357,808) -
Plans assets at period end, at fair value 31.03.09 471,194 -
Reconciliation of present value of the obligation and the fair value of the plan assets:
Present value of the obligation 1,654,997 3,948,313
Fair value of plan assets at the end of the year 31.03.09 471,194 -
Liability recognized in the balance sheet 1,183,803 3,948,313
Costs
Service cost 679,393 1,725,324
Expected return on plan assets (26,918) -
Actuarial (gain)/loss 278,049 1,199,045
Net costs 1,007,765 3,036,106
Assumptions
Discount factor 8% 6%
Interest Rate 8% 8%
Estimated rate of return on plan assets 9.15% -
Salary Increase 10% 10%
Attrition rate
- Upto 30 years 10% 10%
- Between 31 and 44 years 10% 10%
- Above 44 years 5% 5%
Leave availment in the service N.A. 5%
Retirement age 58 years 58 years

During the year, the Company contributed Rs. 22.89 lacs (Previous year Rs. 15.46 lacs) for provident fund which represents contribution
to defined contribution plans.
12 In the Extra-ordinary General Meeting held on Feb 13, 2008, the shareholders have approved change of name of the Company to
“Max Neeman Medical International Limited” for which the company has got the necessary approval and fresh certificate of
incorporation w.e.f. May 1, 2008 from the concerned authority.
13 Previous year’s figures have been regrouped / reclassified wherever necessary to conform to current year’s classification.
DR. PERVEZ AHMED Director

JUNE 18, 2009 REENA ANEJA Company Secretary
11 MNMI.p65 428 8/19/2009, 12:32 PM


Date Month Year
N I L N I L
N I L N I L
1 3 0 9 7 3 1 3 0 9 7 3
SOURCES OF FUND
4 2 1 6 8 N I L
N I L 8 8 8 0 5
Share Application Money Deffered Tax Liability
N I L N I L
1 8 8 6 2 N I L
√ 4 7 3 8 4 N I L
Accumulated Losses Deffered Tax Asset
6 0 8 2 1 3 9 0 6

1 4 9 8 7 3 1 3 9 9 1 0
√ 9 9 6 3 √ 1 2 1 9 8
√ 2 . 9 3 N I L
Product Description C L I N I C A L T R I A L S E R V I C E S
C L I N I C A L D A T A M A N A G E M E N T
11 MNMI.p65 429 8/19/2009, 12:32 PM

11 MNMI.p65 430 8/19/2009, 12:32 PM

PHARMAX CORPORATION LIMITED
Directors’ Report
Your Directors have pleasure in presenting the Twentieth Annual ensuing Annual General Meeting, and being eligible offers
Report of the Company together with the Audited Annual Accounts themselves for re-appointment.
for the year ended March 31, 2009.
AUDIT COMMITTEE
FINANCIAL RESULTS
Currently the Audit Committee of the Company comprises of
During the year under review, your Company earned a total income Mrs. Sujatha Ratnam, Mr. P. Dwarakanath and Mr. Neeraj Basur.
amounting to Rs. 717.60 lacs against Rs. 570.07 lacs in previous The current terms of reference of this Committee fully conform to
year. The Company posted a profit after tax of Rs. 183.20 lacs for the requirements of Section 292A of the Companies Act, 1956.
the year ended March 31, 2009. Key highlights of the financial
results for the year under review are as follows:
(Rs. Lacs)
March 31, 2009 March 31, 2008 (i) in the preparation of annual accounts, the applicable
Rental income 425.57 543.34 accounting standards have been followed along with
Other Income 292.03 26.73 proper explanation relating to material departures;
Total Income 717.60 570.07 (ii) the Directors had selected such accounting policies and applied
Total Expenditure 464.00 221.33 them consistently and made judgments and estimates
Profit / (Loss) before tax 253.60 348.74 that are reasonable and prudent so as to give a true and
Provision for Taxation 70.40 90.24 fair view of the state of affairs of the Company at the
Profit / (Loss) after tax 183.20 258.50 end of the financial year and of the profit or loss of the
DIVIDEND Company for that period;
In view of carry forward losses, your Directors do not recommend (iii) the Directors had taken proper and sufficient care for the
any dividend either on Equity Shares or on Preference Shares. maintenance of adequate accounting records in
accordance with the provisions of the Companies Act,
ADDITIONAL INFORMATION 1956 for safeguarding the assets of the Company and for
Disclosure of information in accordance with the provisions of preventing and detecting fraud and other irregularities;
Section 217(1)(e) of the Companies Act, 1956 is not applicable to and
your Company. (iv) the Directors had prepared the annual accounts, on a going
PARTICULARS OF DEPOSITS concern basis.
The Company has not accepted any deposits under Section 58A of AUDITORS
the Companies Act, 1956. Nangia & Company, Chartered Accountants, the Statutory Auditors
PARTICULARS OF EMPLOYEES of the Company, cease to hold office at the conclusion of the ensuing
Annual General Meeting and offer themselves for re-appointment.
As the Company had no employee on its roll, the particulars under
The Company has received from them a Certificate to the effect
Section 217(2A) of the Companies Act, 1956 read with the
that their re-appointment, if made, would be in conformity with
Companies (Particulars of Employees Rules) 1975 are not applicable.
the limits specified under Section 224(1B) of the Companies Act,
DIRECTORS 1956.

Article 143 of the Articles of Association of the Company, Mr. K.S.
For and behalf of Board of Directors
Ramsinghaney and Mrs. Sujatha Ratnam retire by rotation at the
New Delhi P. DWARAKANATH Director
July 24, 2009 SUJATHA RATNAM Director
12 Pharmax.p65 433 8/19/2009, 12:32 PM

Auditors’ Report
1 We have audited the attached Balance Sheet of Pharmax (d) In our opinion, the Balance Sheet, Profit and Loss Account
Corporation Limited, New Delhi as at March 31, 2009 and and Cash Flow Statement dealt with by this report comply
the related Profit and Loss Account and Cash Flow Statement with the requirements of Accounting Standards referred
for the year ended on that date annexed thereto, which we to in sub-section (3C) of Section 211 of the Act, to the
have signed under reference to this report. These financial extent applicable.
statements are the responsibility of the Company’s
management. Our responsibility is to express an opinion on (e) On the basis of written representations received from the
these financial statements based on our audit. Directors of the Company and taken on record by the
Board of Directors, none of the Directors is disqualified
2 We conducted our audit in accordance with auditing standards as on March 31, 2009 from being appointed as a Director
generally accepted in India. Those standards require that we of the Company in terms of clause (g) of sub-section (1)
plan and perform the audit to obtain reasonable assurance of Section 274 of the Act.
about whether the financial statements are free of material
misstatement. An audit includes examining on a test basis, (f) In our opinion and to the best of our information and
evidence supporting the amounts and disclosures in the according to the explanations given to us, the said
financial statements. An audit also includes assessing the financial statements read together with ‘Significant
accounting principles used and significant estimates by Accounting Policies & Notes to Accounts’ in Schedule
management, as well as evaluating the overall financial ‘10’, give the information required by the Act, in the
presentation. We believe that our audit provides a reasonable manner so required and give a true and fair view in
basis for our opinion. conformity with the accounting principles generally
accepted in India:
3 As required by the Companies (Auditors’ Report) (Amendment)
Order, 2004, issued by the Central Government in terms of (i). in the case of the Balance Sheet, of the state of affairs
sub-section 4A of section 227 of the Companies Act, 1956, of the Company as at March 31, 2009;
(hereinafter referred to as the ‘Act’) we give in an annexure, a (ii). in the case of the Profit and Loss Account, of the
statement on the matters specified in paragraphs 4 and 5 of profit of the Company for the year ended on that
the said order, to the extent applicable to the Company. date; and
4 Further to our comments in the annexure referred to in (iii). In the case of Cash Flow Statement, of the cash flows
paragraph (3) above, we report that: for the year ended on that date.
(a) We have obtained all the information and explanations
necessary for the purpose of our audit; RAKESH NANGIA
FCA, Partner
(b) In our opinion, proper books of accounts as required by Membership No. 70776
law have been kept by the Company, so far as appears
from our examination of the books; For and on behalf of
New Delhi Nangia and Company
(c) The Balance Sheet, Profit and Loss Account and Cash Flow JUNE 16, 2009 Chartered Accountants
Statement dealt with by this report are in agreement with
12 Pharmax.p65 434 8/19/2009, 12:32 PM

Auditors’ Report
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF AUDITORS’ 4. In our opinion and according to the information and
REPORT OF EVEN DATE ON THE FINANCIAL STATEMENTS FOR explanations given to us, there are adequate internal control
THE YEAR ENDED ON MARCH 31, 2009. procedures commensurate with the size of the Company and
the nature of its business for purchase of fixed assets and for
On the basis of such checks as we considered appropriate and
sales of services. Further, on the basis of our examination and
according to the information and explanation given to us during
according to the explanations given to us, we have neither
the course of audit, we report that: -
come across nor have we been informed of any instance of
1. (a) The Company is maintaining proper records showing full major weaknesses in the aforesaid internal control system of
particulars, including quantitative details and situation the Company.
of fixed assets.
5. Based on the information and explanations given to us, there
(b) As explained to us, all the fixed assets have been physically are no transactions with Parties covered under section 301 of
verified by the management according to a regular the Act.
program of verification which in our opinion is reasonable
6. In our opinion and according to information given to us, the
having regard to the size of the Company and the nature
Company has not accepted deposits from the public within
of its assets. No material discrepancies between book
the meaning of Section 58A and 58AA of the Companies Act,
records and the physical inventory have been noticed on
1956 and rules framed there under.
such verification.
7. In our opinion, the Company has an internal audit system,
(c) During the year, the Company has not disposed off a
which is commensurate with the size and nature of its business.
substantial part of the fixed assets. Based on the
information and explanation given by the management 8. The Central Government of India has not prescribed the
of the Company and on the basis of audit checks maintenance of cost records under Section 209(1)(d) of the
performed by us, we are of the opinion that the sale of Act, for any of the products of the Company.
fixed assets during the year has not affected the going
concern status of the Company.
explanations given to us and according to the books and
2. The Company being in the field of management of real estate, records as produced and examined by us, the Company is
carries no inventories, hence the provisions of Clause 4(ii)(a) regular in depositing undisputed statutory dues including
to 4(ii)(c) of the Companies (Auditors’ Report) (Amendment) Provident Fund, Employees’ State Insurance, Income-Tax,
Order, 2004 are not applicable. Wealth Tax, Service Tax, Cess and any other statutory
dues as applicable with the appropriate authorities.
explanations given to us, the Company has not granted According to the information and explanations given to
any loans, secured or unsecured, to companies, firms or us, there were no undisputed amounts payable in respect
other parties listed in the register maintained under of Provident Fund, Employees’ State Insurance, Income-
Section 301 of the Act. Tax, Wealth Tax, Service Tax, Cess and any other statutory
dues as applicable, outstanding as at the last day of the
(b) As the Company has not granted any loans, secured or
financial year concerned for a period of more than six
unsecured, to companies, firms or other parties listed in
months from the date they became payable.
the register maintained under Section 301 of the Act,
the provisions of clause 4(iii)(b), 4(iii)(c) & 4(iii)(d) are (b) According to the records of the Company, there are no
not applicable. dues of Provident Fund, Employees’ State Insurance,
Income-tax, Service Tax, Cess and any other statutory
dues as applicable to it, which have not been deposited
explanations given to us, the Company has not taken any
on account of any dispute.
loans, secured or unsecured, from companies, firms or other
parties listed in the Register maintained under Section 301 10. In our opinion the accumulated losses of the Company are not
of the Companies Act, 1956. more than fifty percent of its net worth. The Company has not
12 Pharmax.p65 435 8/19/2009, 12:32 PM

Auditors’ Report
incurred any cash losses during the financial year covered by 17. Based on the information and according to the information
our audit and during the immediately preceding financial year. and explanations given to us and on an overall examination
of the balance sheet of the Company, in our opinion, there are
11. Based on our audit procedures and according to the
no funds raised on a short term basis which have been used
information and explanations given by the management, we
for long term investment or vice versa.
are of the opinion that the Company has not defaulted in
repayment of its dues of any financial institution or bank during 18. The Company has not made any preferential allotment of shares
the year. to parties and companies covered in the Register maintained
under section 301 of the Companies Act, 1956 during the year.
12. The Company has not granted any loans and advances on the
basis of security by way of pledge of shares and other securities. 19. The Company has not issued any debentures during the year.
13. The provisions of any special statute applicable to chit fund/ 20. The Company has not raised any money by public issue during
nidhi/mutual benefit fund/societies are not applicable to the the year.
Company.
21. Based upon audit procedures performed and information and
14. Based on our examination of the records and documents of explanations given by the management of the Company, we
the Company, and according to the information and report no fraud on or by the Company has been noticed or
explanation given to us, we are of the opinion that the reported during the course of our audit.
Company is not dealing or trading in shares, securities,
RAKESH NANGIA
debentures and other investments, and therefore clause (xiv)
FCA, Partner
of The Companies (Auditors’ Report) (Amendment) Order, 2004
Membership No. 70776
is not applicable to the Company.
15. In our opinion, the terms and conditions on which the Company
New Delhi Nangia and Company
has given guarantees for loans taken by others from banks or
financial institutions are not prejudicial to the interests of the
Company.
16. Based on the information and explanations given to us by the

management, the Company has utilized the long-term loan
availed from Canara Bank for the purpose for which it was
borrowed.
12 Pharmax.p65 436 8/19/2009, 12:32 PM


RUPEES
March 31, 2009 March 31, 2008
SOURCES OF FUNDS
Share Capital 1 205,576,787 205,576,787
LOAN FUNDS 2
Secured Loans 84,802,577 103,136,733
Unsecured Loans 129,300,000 45,800,000
419,679,364 354,513,520
FIXED ASSETS 3
Gross Block 250,457,208 250,457,208
Net Block 196,762,565 203,331,261
INVESTMENTS 4 72,152,363 71,428,240
Sundry Debtors 8,376,606 1,085,394
120,569,278 19,755,227
Less: CURRENT LIABILITIES AND PROVISIONS 6
41,994,749 30,511,385
NET CURRENT ASSETS 78,574,529 (10,756,158)
419,679,364 354,513,520
Membership No.: 70776 SHWETA GUPTA Company Secretary
New Delhi
JUNE 16, 2009
12 Pharmax.p65 437 8/19/2009, 12:32 PM

RUPEES
March 31, 2009 March 31, 2008
INCOME
Lease Rentals* 42,557,035 54,333,800
Other Income 7 29,203,523 2,672,872
* Tax Deducted at Source Rs. 9,938,754 (Previous year Rs. 9,907,403) 71,760,558 57,006,672
EXPENDITURE
Administrative Expenses 8 2,615,936 2,385,674
Depreciation 3 6,568,696 6,571,100
46,400,288 22,132,556
PROFIT BEFORE TAX 25,360,270 34,874,116

Provision for Taxation
Current Year Tax 7,040,000 9,002,000
Add: adjustments related to earlier years - 21,706
Net 7,040,000 9,023,706
PROFIT AFTER TAX 18,320,270 25,850,410
(LOSS) CARRIED FORWARD TO THE BALANCE SHEET (72,189,907) (90,510,177)
Earnings Per Share (Re. per equity share of Re. 1 each)

-Basic 0.33 0.47
-Diluted 0.33 0.46
-Basic 55,305,852 55,305,852
-Diluted 55,939,952 55,939,952
New Delhi
JUNE 16, 2009
12 Pharmax.p65 438 8/19/2009, 12:32 PM

RUPEES
March 31, 2009 March 31, 2008
PROFIT BEFORE TAX 25,360,270 34,874,116
Adjustments for:
Depreciation 6,568,696 6,571,100
Net (Profit) / Loss on Sale of Investments (1,627) (4,233)
Interest Income (27,440,256) (848,192)
Dividend Income (1,611,638) (1,804,150)
TDS on Service/other Operating Income (12,502,081) (10,547,750)
Liability/Provision No Longer Required Written Back (11,597) (10,000)
Adjustments for:
Trade and Other Receivables (89,610,029) 9,060,675
Trade Payables 11,494,961 (12,259,151)
Cash Generated From/ (Used In) Operations (46,339,899) 38,208,197
Direct Taxes Refunded / (Paid) - (6,027,875)
Cash From / (Used In) Operating Activities (46,339,899) 32,180,322
B CASH FLOW FROM INVESTING ACTIVITIES

Purchase of Investments (103,855,088) (29,396,964)
Sale of Investments 103,132,592 13,592,815
Purchase of Fixed Assets - (668,200)
Sale of Fixed Assets - 116,954
Interest and Dividend Received (Net) 29,051,894 2,556,758
Cash From / (Used In) Investing Activities 28,329,398 (13,798,637)
C CASH FLOW FROM FINANCING ACTIVITIES

Interest Paid (41,413,402) (13,175,782)
Repayment of Long Term Loans (18,334,156) (16,251,782)
Proceeds from Borrowings 83,500,000 10,000,000
Cash From/(Used In) Financing Activities 23,752,442 (19,427,564)
Net Increase / (Decrease) In Cash and Cash Equivalents 5,741,941 (1,045,879)

Net Increase / (Decrease) In Cash and Cash Equivalents 5,741,941 (1,045,879)
12 Pharmax.p65 439 8/19/2009, 12:32 PM

Notes:
1) The above Cash Flow statement has been prepared under the “Indirect Method” as set out in the Accounting Standard-3 on
Cash Flow Statements issued by the Institute of Chartered Accountants of India.
2) Cash and Cash Equivalents at the end of the year consist of Cash, Cheques in Hand and Balances with Banks.
RUPEES
March 31, 2009 March 31, 2008
Cash in Hand 37,341 28,110
Cheques in Hand 2,377,913 1,660,712
Balances with Banks 7,015,955 2,000,446
9,431,209 3,689,268
New Delhi
JUNE 16, 2009
12 Pharmax.p65 440 8/19/2009, 12:32 PM


RUPEES
As at As at
March 31, 2009 March 31, 2008
SCHEDULE-1
SHARE CAPITAL
Authorised Capital
60,000,000 Equity Shares of Re. 1/- each 60,000,000 60,000,000
(Previous year 60,000,000 Equity Shares of Re. 1/- each)
10% 470,000 Cumulative Convertible Preference Shares of Rs. 100/- each 47,000,000 47,000,000
(Previous year 10% 470,000 Cumulative Convertible Preference Shares of Rs. 100/- each)
9% 1,500,000 Cumulative Redeemable Preference Shares of Rs. 100/- each 150,000,000 150,000,000
(Previous year 9% 1,500,000 Cumulative Redeemable Preference Shares of Rs. 100/- each)
257,000,000 257,000,000
Issued, Subscribed and Paid Up:
55,305,852 Equity Shares of Re 1/- each fully paid up 55,305,852 55,305,852
(Previous year 55,305,852 Equity Shares of Re 1/- each fully paid up)
(Of the above Shares 9,113,982 Equity Shares were allotted as fully paid up for
consideration other than cash in terms of a Scheme of Arrangement approved by
the Hon’ble High Court of Punjab and Haryana in the year 1990-91)
(Of the above Shares 47,117,247 (Previous year 47,117,247) Equity Shares are held
by Max India Limited, the Holding Company)
6,341 10% Cumulative Convertible Preference Shares of Rs. 100/- each 634,100 634,100
(Previous year 6,341 10% Cumulative Convertible Preference Shares of Rs. 100/- each)
Less: Allotment Money To Be Received (363,165) (363,165)

(Refer Note 2 of Schedule 10B)
1,500,000 9% Cumulative Redeemable Preference Shares of Rs. 100/- each 150,000,000 150,000,000
(Previous year 1,500,000 9% Cumulative Redeemable Preference Shares of Rs. 100/- each)
Redeemable at par on or before 31st March, 2019 at the discretion of the board
(Held by Max India Ltd., the Holding Company)
205,576,787 205,576,787
SCHEDULE-2
LOAN FUNDS
SECURED LOANS
Loans From Banks 84,802,577 103,136,733
(Secured against charge of monthly lease rentals receivable from various lessees and equitable
mortgage of undivided share of Freehold Property at Okhla)
84,802,577 103,136,733
Amount payable within one year Rs. 20,738,261 (Previous year Rs. 18,316,318)
UNSECURED LOANS
Other Loans
From Holding Company 113,800,000 35,800,000
From Others 15,500,000 10,000,000
129,300,000 45,800,000
Amount payable within one year Rs. 78,000,000 (Previous year Rs. 45,800,000)
12 Pharmax.p65 441 8/19/2009, 12:32 PM


SCHEDULE-3
FIXED ASSETS
Refer Note No. c, d, g, i of Schedule 10A and Note 3 of Schedule 10B.
RUPEES
Particulars As at Additions Deletions As at As at For the Deletions As at As at As at
April 1, March 31, April 1, Year March 31, March 31, March 31,
2008 2009 2008 2009 2009 2008
Land (Freehold) 84,296 - - 84,296 - - - - 84,296 84,296

Land (Leasehold) 182,365 - - 182,365 - - - - 182,365 182,365
Building 174,619,212 - - 174,619,212 14,955,177 2,845,378 - 17,800,555 156,818,657 159,664,035
Plant & Machinery 70,042,639 - - 70,042,639 31,378,917 3,327,025 - 34,705,942 35,336,697 38,663,722
Furniture and Fixtures 4,918,081 - - 4,918,081 578,522 309,794 - 888,316 4,029,765 4,339,559
Computers 610,615 - - 610,615 213,331 86,499 - 299,830 310,785 397,284
TOTAL 250,457,208 - - 250,457,208 47,125,947 6,568,696 - 53,694,643 196,762,565 203,331,261
Previous year 249,237,328 1,343,630 123,750 250,457,208 40,561,643 6,571,100 6,796 47,125,947 203,331,261 208,675,685
RUPEES
As at As at
March 31, 2009 March 31, 2008
SCHEDULE-4
INVESTMENTS
Current Non Trade, (Unquoted), at cost
(Refer Note e of Schedule 10A and Note 5 of Schedule 10B)
Tata Mutual Fund (Liquid Fund) - 27,107,188

(No. of units Nil Previous year -1,804,632.16)
Tata Floater Fund-Growth 26,577,363 -
(No. of units 2,033,556.489 Previous year -Nil )
Birla Cash Plus Retail Daily Dividend - 4,246,052
(No. of units - Nil Previous year - 15,156.67)
26,577,363 31,353,240
Long Term-Trade, (Unquoted), at cost
Equity Shares 45,575,000 40,075,000
45,575,000 40,075,000
72,152,363 71,428,240
12 Pharmax.p65 442 8/19/2009, 12:32 PM


RUPEES
As at As at
March 31, 2009 March 31, 2008
SCHEDULE-5
Sundry Debtors*
Debts exceeding six months - -
Other Debts 8,376,606 1,085,394
8,376,606 1,085,394
Cash in Hand 37,341 28,110
Cheques in Hand 2,377,913 1,660,712
Balances with Scheduled Banks in Current Accounts 7,015,955 2,000,446
9,431,209 3,689,268
Loans and Advances
Advances Recoverable In Cash or in Kind or For Value to be Received 2,574,959 3,438,525
Loans 83,800,000 5,800,000
Interest Receivable 5,355,069 92,104
Advance Income Tax 36,434,968 24,009,617
Less: Provision for Income Tax (25,832,000) (18,792,000)
102,761,463 14,980,565
*Includes debt due from companies under the same management

Max Healthcare Institute Ltd. 4,546,257 1,083,606
Max New York Life Insurance Company Ltd. 3,157,104 800
Max Healthstaff International Ltd. 24,990 -
Max India Limited 2,015,615 795,734
Max Healthcare Institute Ltd. 4,546,257 3,349,636
Max New York Life Insurance Company Ltd. 3,157,104 2,288,025
Max Healthstaff International Ltd. 69,942 1,367,867
Max Neeman Medical International Ltd. 56,822 893,730
12 Pharmax.p65 443 8/19/2009, 12:32 PM


RUPEES
As at As at
March 31, 2009 March 31, 2008
SCHEDULE-6
Current Liabilities
Sundry Creditors*
- Total Outstanding Dues of Creditors Other Than Micro Enterprises
and Small Enterprises 246,504 248,792
41,994,749 30,511,385
*There are no dues to creditors under the definition of micro enterprises and
small enterprises as at March 31, 2009 and March 31, 2008

March 31, 2009 March 31, 2008
SCHEDULE-7
OTHER INCOME
Interest on Loans (Gross)* 27,440,256 464,000
Other Interest - 384,192
Dividend From Non-Trade Investments - Current 1,611,638 1,804,150
Unclaimed Balances Written Back 10,000 10,000
Miscellaneous Income 140,002 6,297
Net profit on sale of Units 1,627 4,233
29,203,523 2,672,872
* Tax Deducted at Source Rs. 68,942 (Previous year Rs. 95,584)
SCHEDULE 8
ADMINISTRATIVE EXPENSES
Rates and Taxes 1,076,007 1,076,119
Insurance 154,892 179,135
Legal and Professional (Refer Note 6 of Schedule 10B) 4,400,057 5,759,150
Filing Fee 7,561 3,510
Repair and Maintenance - Building 3,005,009 17,175
Repair and Maintenance - Others 32,245 103,188
Miscellaneous 13,617 82,786
Less: Overheads Recovery* (6,827,619) (5,043,690)
(Refer Note 9 on Schedule 10B)
2,615,936 2,385,674
*Tax deducted at source Rs. 544,524 (Previous year Rs. 544,763)
SCHEDULE-9
FINANCIAL EXPENSES
Interest on Term Loans 10,751,012 12,740,782
Other Interest 26,464,644 435,000
37,215,656 13,175,782
12 Pharmax.p65 444 8/19/2009, 12:32 PM


SCHEDULE–10
SIGNIFICANT ACCOUNTING POLICIES AND NOTES TO THE ACCOUNTS
a. Accounting Basis and Convention
The accompanying financial statements are prepared in accordance with Generally Accepted Accounting Principles in India
(“GAAP”), under the historical cost convention, on the accrual basis. GAAP comprises mandatory accounting standards issued
by the Institute of Chartered Accountants of India (“ICAI”) and the provisions of the Companies Act, 1956, as adopted
consistently by the Company.
b. Revenue Recognition
(i) The revenue from lease rentals is recognised proportionately over the period of the related agreements.
(ii) The interest is recognised on time proportionate basis, taking into the account the amount outstanding and the rates
applicable.
c. Fixed Assets
Fixed assets are stated at their original cost including freight, duties, taxes and other incidental expenses relating to acquisition
and installation less accumulated depreciation.
d. Depreciation
(i) Depreciation on fixed assets is charged on straight-line method on a pro-rata basis at rates prescribed under schedule
XIV to the Companies Act, 1956.
(ii) Assets costing less than Rs. 5000/- each individually are depreciated at 100% in the year of capitalization.
e. Investments
(i) Investments are classified into current investments and long-term investments. The cost of investments includes
(ii) Long-term investments are valued at cost. Provision for diminution is made to recognize a decline, other than temporary.
f. Miscellaneous Expenditure
Preliminary expenditure represents cost incurred for incorporation of the Company and expenses incurred on rights issue.
These are amortized over a period of 10 years.
g. Accounting For Leases
The assets given under operating lease are shown in the Balance Sheet under fixed assets and depreciated on a basis consistent
with the depreciation policy of the Company. The lease income is recognised in the Profit and Loss Account on accrual basis.
The initial direct cost incurred for finalising the lease arrangement is recognised as expense immediately in the Profit and Loss
Account.
h. Taxation
Provision for tax consists of current tax and deferred tax, which is computed for current income based on the tax liability after
considering allowances and exemptions. Deferred tax assets and liabilities when applicable are computed on timing difference
at the balance sheet date between the carrying amount of assets and liabilities and their respective tax bases. Deferred tax
assets are recognised based on management estimates of available future taxable income and assessing its certainty.
The Company does not have any employees and hence the provisions of section 115WA of the Income Tax Act, 1961 are not
applicable. Accordingly, the Company is not liable to pay Fringe Benefit Tax under that section.
i. Borrowing Costs
Borrowing costs that are directly attributable to the acquisition, construction or production of the qualifying assets are
capitalized as part of the cost of that asset in accordance with Accounting Standard 16 issued by ICAI on “Borrowing Costs”.
Other borrowing costs are recognized as an expense in the period in which they are incurred.
12 Pharmax.p65 445 8/19/2009, 12:32 PM


1 Contingent liabilities
(i) (a) Arrears of dividend on 10% Cumulative Convertible Preference Share is Rs. 339.06 Lacs (Previous year Rs. 338.42
Lacs). Corporate Dividend Tax thereon is Rs. 57.63 Lacs (Previous year Rs. 57.52 Lacs)
(b) Arrears of dividend on 9% Cumulative Redeemable Preference Share is Rs. 1,215.00 Lacs (Previous year Rs. 1,080.00
Lacs). Corporate Dividend Tax thereon is Rs. 206.49 Lacs (Previous year Rs.183.55 Lacs).
(ii) Claims against the Company not acknowledged as debts is Nil (Previous year Rs. Nil)
(iii) The Company has given a Corporate Guarantee of Rs. 11,500 Lacs (Previous year Rs. 11,500 Lacs) to various lenders for
securing Term Loan facilities to MAX Balaji Medical & Diagnostic Research Centre.
(iv) Estimated amount of contracts remaining to be executed on capital account and not provided (net off capital advances)
is Nil (Previous year Rs. Nil).
2 Pending reconciliation of the allotment money receivable for remaining 6,341 10% Cumulative Convertible Preference Share
of Rs. 100/- each, the conversion will be taken up at a later date to be decided by the Board.
3 Leases
Accounting for leases has been done in accordance with Accounting Standard -19 issued by the Institute of Chartered
accountants of India. Following are the details of the transactions for the year.
a) Finance Lease:
b) Operating lease Income
i) Details of assets given under operating lease are as under:
Particulars Gross value Additions/ Total value Depreciation Depreciation Net value
as at April (deletion) of assets during the reserve upto of assets as
01, 2008 during given on year March 31, at March
the year lease 2009 31, 2009
Land 266,661 NIL 266,661 NIL NIL 266,661
Building 165,843,380 8,775,832 154,757,605 2,057,327 12,870,545 141,887,060
(19,861,607)
Plant & Machinery 61,801,255 8,241,384 51,390,604 2,405,578 25,093,847 26,296,757
(18,652,035)
Total 227,911,296 17,017,216 206,414,870 4,462,905 37,964,392 168,450,478
(38,513,642)
Previous Year 243,844,889 1,083,623 227,911,296 5,419,215 40,664,018 187,247,278
(17,017,216)
ii) There are no leases entered into by the company, which are classified as non-cancelable lease.
iii) The company has entered into lease contracts (cancelable) for its assets as mentioned above with various parties
including group companies as under:
Name of Lessee
Max Bupa Health Insurance Ltd.
Max India Limited (the holding company)
Malsi Estates Ltd.
Max Neeman Medical International Limited
Max HealthStaff International Limited
12 Pharmax.p65 446 8/19/2009, 12:32 PM


iv) Description of the significant leasing arrangements
The Company has given its assets on operating lease to different parties for various periods, renewable on mutual
agreement. A list of the significant lease arrangements is given below:
RUPEES
Name of Lessee Lease Rent (Per Month) Lease Period
Max Bupa Health Insurance Ltd. 809,600 15.11.2008 to 15.11.2011
Max India Limited (the holding company) 1,102,785 01.12.2008 to 31.03.2009
Malsi Estates Ltd. 269,785 01.11.2008 to 31.10.2009
Max Healthcare Institute Limited 659,323 01.04.2008 to 31.03.2009
Max Neeman Medical International Limited 383,944 01.04.2002 to 31.03.2011
Max HealthStaff International Limited 359,468 01.02.2007 to 31.01.2010
4 Deferred Tax
(a) Since the main income of the company (Lease Rentals) is taxed under the head “Income from House Property” and the
expenses are not claimed as business expenses therefore, there are no timing differences at the balance sheet date
between carrying amount of assets and liabilities and their respective tax bases. Thus, no deferred tax liability / asset
has been created.
(b) No deferred tax asset has been created on account of the carry-forward business losses as there is no reasonable
certainty of utilizing them at a future date.
5 Movement in Current Non Trade Investments (Unquoted)
Name of the Face Value Purchases Sales
Investment per share (Rupees) Units Value Units Value
(Numbers) (Rupees) (Numbers) (Rupees)
Tata Liquid Super High Investment Fund 10 20,640.55 23,004,301 20,640.55 23,004,301
- Daily Dividend
Tata Floating Rate Short Term Institutional 10 10,283.88 102,936 431,611.74 4,322,678
Plan-Daily Dividend
Tata Floater Fund Daily Dividend. 10 4,807,961.777 48,250,781 5,834,521.058 58,552,919
Tata Liquidity Management Fund Weekly Dividend 10 152.2992 153,137 7,520.38 7,561,773
Tata Liquidity Management Fund Daily Dividend 10 98.615 98,872 5,263.60 5,277,336
Birla Cash Plus Retail Daily Dividend 10 10,244.5697 167,697 269,624.1255 4,413,585
Tata Floater Fund- Growth 2,033,556.489 26,577,363 - -
6 Auditors’ Remuneration (included under Legal & Professional Charges in Schedule 8):
RUPEES
Description Current Year Previous Year
Audit Fees (including service tax) 44,120 44,944
Other Fees (Including service tax) 22,472 -
Total 66,592 44,944
7 Segment Reporting
The Company operates in single business segment viz Leasing of Estates. In view of general clarifications issued by the
Institute of Chartered Accountants of India for Companies operating in single segment, the disclosure requirements as per
Accounting Standard 17 “Segment Reporting” are not applicable.
12 Pharmax.p65 447 8/19/2009, 12:32 PM


Holding Company Max India Ltd.

Fellow subsidiaries Max New York Life Insurance Company Ltd.; Max Ateev Ltd.; Neeman Medical International BV;
Neeman Medical International NV; Max Neeman Medical International Inc. USA; Neeman Medical
International Latin America S.A. (till October 26, 2007); Max Medical Services Ltd.; Max Healthcare
Institute Ltd.; Max UK Ltd.; Max Neeman Medical International Ltd.; Max Healthstaff International
Ltd.; Alps Hospital Ltd.*
* with effect from April 6, 2006
Summary of significant related party transactions (as identified by the management) carried out in ordinary course of
business:
S. No. Particulars Holding Fellow Subsidiaries

1 Loans taken 555,000,000 -
(-) (-)
2 Loans Refunded 477,000,000 -
(-) (-)
3 Incomes and reimbursement
- Lease Income 13,444,036 14,550,662
(12,884,436) (15,208,076)
- Reimbursement of expenses 21,640,141 36,603,589
(10,413,266) (22,783,594)
4 Expense
- Interest paid 28,714,644 -
(2,685,000) (-)
- Other expenses - -
(-) (14,513)
5 Sale of Fixed Assets - -
(-) (116,954)
- Against loan taken 113,800,000 -
(35,800,000) (-)
- Other receivable - 7,728,351
(-) (1,084,406)
- Other payable 17,886,779 4,066,496
(5,802,480) (-)
Figures in bracket are for previous year.
9. During the year, the Company shared the services of some of its facilities with group Companies. Consequently, the share of
cost attributable to these companies has been charged in accordance with the respective service agreements.
10. No liability has been provided for leave encashment and other retirement benefits since there is no employee in the Company.
12 Pharmax.p65 448 8/19/2009, 12:32 PM

11 Earnings Per Share (EPS)

March 31, 2009 March 31, 2008
Basic
Profit / (Loss) after tax (Rupees) 18,320,270 25,850,410
Weighted average number of Equity Shares (Nos) 55,305,852 55,305,852
EPS ( Rupees) 0.33 0.47
Issued on 27th January, 2006 - -
Issued on 22nd February, 2007 - -
Diluted
Profit after Tax (Rupees) 18,320,270 25,850,410
Weighted average number of Equity Shares (Nos) 55,939,952 55,939,952
EPS ( Rupees) 0.33 0.46
Reconciliation of denominators used for calculating basic and diluted earning per share
March 31, 2009 March 31, 2008
Denominator used for computing basic Earning Per Share 55,305,852 55,305,852
Add : Dilutive impact of :
(i) Convertible preference Shares 634,100 634,100
Denominator used for Computing diluted Earning per Share 55,939,952 55,939,952
13 Previous year’s figures have been regrouped and rearranged wherever necessary to conform to current year’s classification.
New Delhi
JUNE 16, 2009
12 Pharmax.p65 449 8/19/2009, 12:32 PM


Registration No. 9 7 4 1 State Code 1 6

Date Month Year
N I L N I L
Bonus Issue Others
N I L N I L
4 1 9 6 7 9 4 1 9 6 7 9
SOURCES OF FUND
2 0 5 5 7 7 N I L
8 4 8 0 3 1 2 9 3 0 0
Net Fixed assets Investments
1 9 6 7 6 3 7 2 1 5 2
+ - Net Current Assets Misc. Expenditure
7 8 5 7 5 N I L
Accumulated Losses
7 2 1 9 0
Turnover Total Expenditure
7 1 7 6 0 4 6 4 0 0
+ - Profit /Loss before Tax + - Profit /Loss after Tax
2 5 3 6 0 1 8 3 2 0
Basic Earning per Share in Rs. Dividend Rate (%)
+ -
0 . 3 3 N I L
+ - Diluted Earning per share in Rs.
0 . 3 3
Product Description L E A S I N G O F E S T A T E S
Item Code No. N . A
(IT Code)
12 Pharmax.p65 450 8/19/2009, 12:32 PM

MAX ATEEV LIMITED
Directors’ Report
Your Directors have pleasure in presenting their Fifteenth Annual DIRECTORS’ RESPONSIBILITY STATEMENT
Report along with the Audited Accounts for the financial year ended
March 31, 2009.
FINANCIAL RESULTS
(i) in the preparation of annual accounts, the applicable
During the year under review, your Company incurred a loss of accounting standards have been followed along with proper
Rs.3.32 lacs. explanation relating to material departures;
OPERATIONS (ii) the Directors had selected such accounting policies and
Currently, the Company is not pursuing any business/commercial
that are reasonable and prudent so as to give a true and fair
operations. However, the Directors are evaluating potential business
opportunities for the Company.
DIVIDEND that period;
In view of the losses, your Directors are unable to recommend any (iii) the Directors had taken proper and sufficient care for the
dividend for the year under review. maintenance of adequate accounting records in accordance
Your Company has not accepted any deposit from the public during and detecting fraud and other irregularities; and
the year under review. There were no unclaimed /over due deposit
as at March 31, 2009.
concern basis.
AUDITORS
As your Company does not carry on any operations, information in
accordance with the provisions of Section 217(1)(e) of the
Company retire at the conclusion of the ensuing Annual General
Companies Act, 1956 read with the Companies (Disclosure of
Meeting and are eligible for re-appointment. The Company has
Particulars in the Report of Board of Directors) Rules, 1988 is not
received from them a Certificate to the effect that their re-
furnished herewith.
appointment, if made, will be in accordance with the limits specified
PARTICULARS OF EMPLOYEES under Section 224(1B) of the Companies Act, 1956.
The Company had no employee during the year under review.
DIRECTORS For and on behalf of the Board of Directors

In accordance with the provisions of the Companies Act, 1956, New Delhi Sujatha Ratnam Director
Mrs. Sujatha Ratnam and Mr. Arvind Kakar are due to retire by JULY 24, 2009 V. Krishnan Managing Director
rotation and being eligible, offers themselves for re-appointment.
AUDIT COMMITTEE
Currently, the Audit Committee comprises of Mr. Neeraj Basur, Ms.

Sujatha Ratnam and Mr. Arvind Kakar. The terms of reference of
the Audit Committee fully conform to the requirements of Section
292A of the Companies Act, 1956.
13 Ateev.p65 453 8/19/2009, 12:32 PM

MAX ATEEV LIMITED
Auditors’ Report
TO THE MEMBERS OF MAX ATEEV LIMITED (b) The company has not taken any loans, secured or
unsecured, from companies, firms or other parties
1. We have audited the attached Balance Sheet of Max Ateev
Limited, as at March 31, 2009, and the related Profit and Loss
301 of the Act.
Account and Cash Flow Statement for the year ended on that
date annexed thereto, which we have signed under reference (iv) In our opinion and according to the information and
to this report. These financial statements are the responsibility explanations given to us, having regard to the
of the Company’s management. Our responsibility is to express explanation that certain items purchased are of special
an opinion on these financial statements based on our audit. nature for which suitable alternative sources do not exist
for obtaining comparative quotations, there is an
adequate internal control system commensurate with
for the purchase of inventory, fixed assets and for the
sale of goods and services. Further, on the basis of our
examination of the books and records of the company,
and according to the information and explanations given
to us, we have neither come across nor have been
by management, as well as evaluating the overall financial informed of any continuing failure to correct major
statement presentation. We believe that our audit provides a weaknesses in the aforesaid internal control system.
reasonable basis for our opinion. (v) According to the information and explanations given
3. As required by the Companies (Auditor’s Report) Order, 2003, to us, there have been no contracts or arrangements
as amended by the Companies (Auditor’s Report) (Amendment) referred to in Section 301 of the Act during the year to
Order, 2004, issued by the Central Government of India in be entered in the register required to be maintained
terms of sub-section (4A) of Section 227 of ‘The Companies under that Section. Accordingly, commenting on
Act, 1956’ of India (the ‘Act’) and on the basis of such checks transactions made in pursuance of such contracts or
of the books and records of the company as we considered arrangements does not arise.
(vi) The company has not accepted any deposits from the
public within the meaning of Sections 58A and 58AA
(i) (a) The company is maintaining proper records of the Act and the rules framed there under.
showing full particulars including quantitative
(vii) In our opinion, the company has an internal audit system
details and situation of fixed assets.
commensurate with its size and nature of its business.
(b) The fixed assets of the company have been
(viii) The Central Government of India has not prescribed the
physically verified by the management during the
book records and the physical inventory have been section (1) of Section 209 of the Act for any of the
noticed. In our opinion, the frequency of products of the company.
verification is reasonable. (ix) (a) According to the information and explanations given
(c) In our opinion and according to the information to us and the records of the company examined by
and explanations given to us, a substantial part us, in our opinion, the company is regular in
of fixed assets has not been disposed of by the depositing the undisputed statutory dues including
company during the year. provident fund, investor education and protection
fund, employees’ state insurance, income-tax, sales-
(ii) There are no stocks with the Company or third parties. tax, wealth tax, service tax, customs duty, excise duty,
(iii) (a) The company has not granted any loans, secured cess and other material statutory dues as applicable
or unsecured, to companies, firms or other parties with the appropriate authorities.
covered in the register maintained under Section (b) According to the information and explanations
301 of the Act. given to us and the records of the company
13 Ateev.p65 454 8/19/2009, 12:32 PM

MAX ATEEV LIMITED
Auditors’ Report
examined by us, the particulars of dues of income- on or by the company, noticed or reported during the
tax, sales-tax, wealth tax, service tax, customs duty, year, nor have we been informed of such case by the
excise duty and cess as at March 31, 2009 which management.
have not been deposited on account of a dispute 4. Further to our comments in paragraph 3 above, we report that:
are disclosed in Notes 2(ii) on Schedule 9B.
(x) The company has accumulated losses, as at March 31, which to the best of our knowledge and belief were
2009 more than fifty percent of its net worth and it has necessary for the purposes of our audit;
incurred cash loss in the financial year ended on that
date and in immediately preceding financial year. (b) In our opinion, proper books of account as required by
However, reference is drawn to Note 1 on Schedule 9B. law have been kept by the company so far as appears
(xi) According to the records of the company examined by
us and the information and explanation given to us, the
company has not defaulted in repayment of dues to
any financial institution or bank or debenture holders
as at the balance sheet date. (d) In our opinion, the Balance Sheet, Profit and Loss
(xii) The company has not granted any loans and advances
(xiii) The provisions of any special statute applicable to chit
directors, as on March 31, 2009 and taken on record by
the Board of Directors, none of the directors is disqualified
as on March 31, 2009 from being appointed as a director
(xiv) In our opinion, the company is not a dealer or trader in in terms of clause (g) of sub-section (1) of Section 274 of
shares, securities, debentures and other investments. the Act;
(xv) In our opinion, and according to the information and (f) In our opinion and to the best of our information and
explanations give to us, the company has not given any according to the explanations given to us, the said
guarantee for loans taken by others from banks or financial statements together with the notes thereon
financial institutions during the year. and attached thereto give in the prescribed manner the
(xvi) The company has not obtained any term loans. information required by the Act and give subject to
Note B1 on Schedule 9 regarding preparation of these
(xvii) On the basis of an overall examination of the balance
accounts on a going concern basis a true and fair view
in conformity with the accounting principles generally
accepted in India:
used for long-term investment. (i) in the case of the Balance Sheet, of the state of
(xviii) The company has not made any preferential allotment of
shares to parties and companies covered in the register (ii) in the case of the Profit and Loss Account, of the
maintained under section 301 of the act during the year. loss for the year ended on that date; and
(xix) There are no debentures outstanding as at the year end. (iii) in the case of the Cash Flow Statement, of the
(xx) The company has not raised any money by public issues
during the year. V. NIJHAWAN
Partner
(xxi) During the course of our examination of the books and
Membership Number F 87228
the generally accepted auditing practices in India, and For and on behalf of
according to the information and explanations given to Gurgaon Price Waterhouse
us, we have neither come across any instance of fraud JUNE 24, 2009 Chartered Accountants
13 Ateev.p65 455 8/19/2009, 12:32 PM

MAX ATEEV LIMITED

RUPEES
March 31, 2009 March 31, 2008
SOURCES OF FUNDS
Share Capital 1 314,436,000.00 314,436,000.00
LOAN FUNDS
Unsecured Loans 2 67,406,470.56 67,540,458.56
381,842,470.56 381,976,458.56
FIXED ASSETS 3
Gross Block 76,727,845.57 78,092,445.57
Less: Depreciation 76,006,157.75 76,437,813.11
Net Block 721,687.82 1,654,632.46

Cash and Bank Balances 118,384.24 92,654.24
Loans and Advances 1,236,645.00 1,236,645.00
1,355,029.24 1,329,299.24
LESS: CURRENT LIABILITIES AND PROVISIONS 5 714,111.58 1,155,668.72
NET CURRENT ASSETS 640,917.66 173,630.52
PROFIT AND LOSS ACCOUNT 380,479,865.08 380,148,195.58

381,842,470.56 381,976,458.56
V. NIJHAWAN i
Partner V KRISHNAN Managing Director
Membership No. F 87228 SUJATHA RATNAM Director
For and on behalf of VISHAL GARG Company Secretary
Price Waterhouse
Gurgaon New Delhi
JUNE 24, 2009 JUNE 24, 2009
13 Ateev.p65 456 8/19/2009, 12:32 PM

MAX ATEEV LIMITED
RUPEES
March 31, 2009 March 31, 2008
INCOME
Other Income 6 498,796.14 1,091,974.72
498,796.14 1,091,974.72
EXPENDITURE
Administration and Other Expenses 7 734,317.24 2,101,754.73
Financial Expenses 8 280.00 9,686.00
Depreciation 3 95,868.40 296,020.96
830,465.64 2,407,461.69
(LOSS) FOR THE YEAR (331,669.50) (1,315,486.97)
(LOSS) BROUGHT FORWARD (380,148,195.58) (378,832,708.61)
BALANCE CARRIED FORWARD TO THE BALANCE SHEET (380,479,865.08) (380,148,195.58)
Earnings Per Share (Rs. per equity share of Rs.10/- each)

- Basic and Diluted (0.01) (0.04)
- Basic and Diluted 31,443,600 31,443,600
V. NIJHAWAN i
Price Waterhouse
Gurgaon New Delhi
JUNE 24, 2009 JUNE 24, 2009
13 Ateev.p65 457 8/19/2009, 12:32 PM

MAX ATEEV LIMITED
RUPEES
March 31, 2009 March 31, 2008
(LOSS) FOR THE YEAR (331,669.50) (1,315,486.97)
Adjustments for:
Depreciation 95,868.40 296,020.96
Interest Expenses - 5,382.00
Net (Profit)/Loss on Sale of Fixed Assets 525,746.24 1,243,962.40
Assets Written Off - 580,506.33
Debit Balances Written Off - 22,537.00
Liabilities/Provisions No Longer Required Written Back (498,796.14) (1,076,253.72)
Operating (Loss) Before Working Capital Changes (208,851.00) (243,332.00)
Adjustments for:
Other Receivables - 50,500.00
Trade Payables 57,239.00 33,802.00
Cash From/(Used in) Operating Activities (151,612.00) (159,030.00)
Proceeds from Sale of Fixed Assets 311,330.00 46,087.00
Cash From Investing Activities 311,330.00 46,087.00
Proceeds/ (Repayment) of Loan (133,988.00) 91,548.00
(133,988.00) 91,548.00
Increase/ (Decrease) in Cash and Cash Equivalents 25,730.00 (21,395.00)
Cash and Cash Equivalents - As At March 31, 2008 92,654.24 114,049.24
Cash and Cash Equivalents - As At March 31, 2009 118,384.24 92,654.24
Net Increase/(Decrease) in Cash and Cash Equivalents 25,730.00 (21,395.00)
Notes
2 Cash and Cash Equivalents at the end of the year consists of Balances with Banks: RUPEES
As at As at
March 31, 2009 March 31, 2008
Balance with Bank 118,384.24 92,654.24
118,384.24 92,654.24
Cash Flow Statement
V. NIJHAWAN i
Price Waterhouse
Gurgaon New Delhi
JUNE 24, 2009 JUNE 24, 2009
13 Ateev.p65 458 8/19/2009, 12:32 PM

MAX ATEEV LIMITED

RUPEES
As at As at
March 31, 2009 March 31, 2008
SCHEDULE-1
SHARE CAPITAL
Authorised
31,500,000 Equity Shares of Rs. 10/- each 315,000,000.00 315,000,000.00
Issued, Subscribed and Paid UP

31,443,600 (Previous year 31,443,600) Equity
Shares of Rs.10/- each fully paid up 314,436,000.00 314,436,000.00
(held by Max India Limited the holding company) 314,436,000.00 314,436,000.00
SCHEDULE - 2
UNSECURED LOANS
From Max India Limited [(The Holding Company)(repayable on demand)] 67,406,470.56 67,540,458.56
67,406,470.56 67,540,458.56
SCHEDULE - 3
FIXED ASSETS
RUPEES
Particulars As on Deletion As on As on During the Deletions As on As at As at
01.04.2008 31.03.2009 01.04.2008 Period 31.03.2009 31.03.2009 31.03.2009 31.03.2008
Tangible assets
Plant and Machinery 1,381,450.00 1,354,200.00 27,250.00 488,093.02 45,176.02 522,350.20 10,918.84 16,331.16 893,356.98
Computers 9,613,277.57 - 9,613,277.57 9,613,277.57 - - 9,613,277.57 - -
Furniture & Fixtures 10,400.00 10,400.00 - 4,884.19 289.37 5,173.56 - - 5,515.81
Office Equipments 1,038,442.00 - 1,038,442.00 282,682.33 50,403.01 - 333,085.34 705,356.66 755,759.67
Intangible assets
Technology Fees 66,048,876.00 - 66,048,876.00 66,048,876.00 - - 66,048,876.00 - -
Total 78,092,445.57 1,364,600.00 76,727,845.57 76,437,813.11 95,868.40 527,523.76 76,006,157.75 721,687.82 1,654,632.47
Previous Year 85,263,298.80 7,170,853.23 78,092,445.57 81,442,089.65 296,020.96 5,300,297.50 76,437,813.11 1,654,632.46 3,821,209.15
13 Ateev.p65 459 8/19/2009, 12:32 PM

MAX ATEEV LIMITED

RUPEES
As at As at
March 31, 2009 March 31, 2008
SCHEDULE - 4
BANK BALANCES
With Scheduled Banks
- in Current Accounts 118,384.24 92,654.24
118,384.24 92,654.24
LOANS AND ADVANCES
(Unsecured, Considered Good, Unless Otherwise Stated)
Security Deposit
- Considered Good 41,000.00 41,000.00
- Considered Doubtful 3,600,000.00 3,600,000.00
- Provision for Doubtful Advances (3,600,000.00) 41,000.00 (3,600,000.00)
Advance Income Tax 1,195,645.00 1,195,645.00
1,236,645.00 1,236,645.00
1,355,029.24 1,329,299.24
SCHEDULE - 5
Current Liabilities
Sundry Creditors*
-Total Outstanding Dues of Creditors Other Than Micro
Enterprises & Small Enterprises 171,115.00 122,615.00
Other Liabilities 19,320.00 12,375.00
190,435.00 134,990.00
Provisions
Provision for Diminution in Value of Fixed Assets 523,676.58 1,020,678.72
714,111.58 1,155,668.72
* There are no dues to creditors under the definition of Micro Enterprises & Small
Enterprises as at March 31, 2009 and March 31, 2008
RUPEES
March 31, 2009 March 31, 2008
SCHEDULE - 6
OTHER INCOME
Profit on Sale of Assets - 15,721.00
Liabilities/Provisions No Longer Required Written Back 498,796.14 1,076,253.72
498,796.14 1,091,974.72
13 Ateev.p65 460 8/19/2009, 12:32 PM

MAX ATEEV LIMITED

RUPEES
March 31, 2009 March 31, 2008
SCHEDULE - 7
Legal and Professional 203,911.00 204,996.00
Rates and Taxes 84.00 32,502.00
Filing Fee - 1,530.00
Printing and Stationery 4,576.00 -
Assets Written Off - 580,506.33
Debit Balances written Off - 22,537.00
Loss on Sale of Fixed Assets 525,746.24 1,259,683.40
734,317.24 2,101,754.73
SCHEDULE - 8
FINANCIAL EXPENSES
Bank Charges 280.00 4,304.00
Interest Paid - 5,382.00
280.00 9,686.00
13 Ateev.p65 461 8/19/2009, 12:32 PM

MAX ATEEV LIMITED

SCHEDULE - 9
The Financial Statements are prepared to comply in all material aspects with all the applicable accounting principles in India, the
1956.
Revenue represents amounts invoiced during the year, exclusive of value added tax and other applicable taxes.
3 Expenditure
4 Fixed Asset and Depreciation

(i) Fixed assets are stated at cost of acquisition including freight, duties and other incidental expenses relating to acquisition
and installation.
(ii) Depreciation on fixed assets is provided under the straight-line method on a pro-rata basis at rates prescribed by Schedule
XIV to the Companies Act, 1956 except on computers which are depreciated over a period of three years i.e. useful life of asset
as estimated by the management and on Leasehold Improvements, which are depreciated over the period of the lease.
(iii) The technology fee capitalized is depreciated over a period of three years.
5 Borrowing Costs
Borrowing Costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised as
part of the cost of that asset in accordance with Accounting Standard 16 on “Borrowing Costs”. Other borrowing costs are charged
to revenue.
6 Investments
Long-term investments are valued at cost. Provision for diminution is made to recognise permanent erosion in value.
7 Income Tax
Provision for tax consists of current tax and deferred tax. Current tax provision is computed for current income based on the tax
the Balance Sheet date between the carrying amount of assets and liabilities and their respective tax bases and carry forward of
operating loss. Deferred tax assets are recognised based on management estimates of available future taxable income and assessing
their certainty.

at year-end rates.
(ii) The difference in translation of monetary assets and liabilities and realised gains and losses on foreign exchange transactions
are recognized in the Profit and Loss Account.
13 Ateev.p65 462 8/19/2009, 12:32 PM

MAX ATEEV LIMITED

1 The Company is not carrying out any commercial operations and is in the process of settling remaining dues and completing
assessments with various authorities. However, these accounts have been prepared on a going concern basis on accrual basis in
accordance with the Accounting Standards issued by the Institute of Chartered Accountants of India.
RUPEES
(i) Claims against the company not acknowledged as debts 244,000.00 244,000.00
(ii) There are certain income-tax proceedings pending against the Company at various stages of appeal, as per details given
below-
Assessment year Appeal Pending Before
The Company is hopeful that the above appeals will be disposed off in its favour.
3 Out of the total share capital of Rs. 314,436,000.00 as on March 31, 2009, Max India Limited holds Rs. 314,435,800.00 of the
share capital, consisting of 31,443,580 shares of Rs.10/- each. The remaining share capital of Rs. 200.00 consisting of 20 shares of
Rs. 10/- each are held by nominees of Max India Limited.
4 Net Deferred Tax Asset has not been recognized due to virtual uncertainty regarding future taxable profits.
5 Earnings per share

RUPEES
Basic and Diluted
(Loss) for the year (Rs.) (331,669.50) (1,315,486.97)
Weighted Average Number of Equity Shares 31,443,600 31,443,600
EPS (Rs.) (0.01) (0.04)
Share Details (Nos.)
6 Auditors’ Remuneration
Audit fee (Including Service Tax) 22,060.00 22,472.00
7 The Company does not have any finance lease/operating lease arrangement.

Holding Company Max India Limited
Fellow subsidiaries Max New York Life Insurance Company Ltd., Max Healthcare Institute Ltd., Max Medical Services
Ltd., Max Neeman Medical International Inc. USA, Neeman Medical International NV, Neeman Medical
International BV, Max Neeman Medical International Ltd., Max UK Ltd., Pharmax Corporation
Ltd., Max HealthStaff International Limited, Alps Hospital Ltd.,
13 Ateev.p65 463 8/19/2009, 12:32 PM

MAX ATEEV LIMITED

as follows:
RUPEES
Particulars Holding Company Fellow Subsidiaries
Sale of Fixed Assets - -
(-) (14513)
Loan taken during the year 150,000.00 -
(1,00,000.00) (-)
Loan repaid during the year 350,000.00 -
(35,200.00) (-)
Expenses
- Others expenses 66,012.00 -
(26,748.00) (-)
Amount Outstanding
- Other payable 67,406,470.56 -
(67,540,458.56) (-)
Figures in bracket are for previous year
9 Segment Reporting
As the Company is not carrying any business activity, the disclosure requirements as per Accounting Standard 17 “Segment Reporting”
are not applicable to the Company.
10 Provision for diminution in value of Fixed Assets

RUPEES
Opening Balance 1,020,678.22 1,984,732.44
Add : Provided during the year - -
Less : Written back during the year 497,002.14 964,053.72
Closing Balance 523,676.08 1,020,678.72
12 Previous year’s figures have been regrouped / reclassified wherever necessary to conform to current year’s classification.
V KRISHNAN Managing Director

New Delhi SUJATHA RATNAM Director
JUNE 24, 2009 VISHAL GARG Company Secretary
13 Ateev.p65 464 8/19/2009, 12:32 PM

MAX ATEEV LIMITED

Date Month Year
N I L N I L
N I L N I L
3 8 1 8 4 2 3 8 1 8 4 2
SOURCES OF FUND
3 1 4 4 3 6 N I L
N I L 6 7 4 0 6
7 2 2 N I L
√ 6 4 0 N I L
Accumulated Losses
3 8 0 4 8 0
4 9 9 8 3 1
√ 3 3 2 √ 3 3 2
√ . 0 1 N I L
Product Description S O F T W A R E S E R V I C E S
13 Ateev.p65 465 8/19/2009, 12:32 PM

MAX ATEEV LIMITED
13 Ateev.p65 466 8/19/2009, 12:32 PM

MAX UK LIMITED
Directors’ Report
The Directors present their report and the financial statements of ii the Directors had selected such accounting policies and applied
the company for the year ended 31st March 2009. them consistently and made judgments and estimates that
are reasonable and prudent so as to give a true and fair view
PRINCIPAL ACTIVITIES AND BUSINESS REVIEW
Your company has been providing business and administrative year and of the profit or loss of the Company for that period;
support services to officials of various group companies of Max
iii the Directors had taken proper and sufficient care for the
India Limited, the parent company at UK.
RESULTS AND DIVIDENDS with the provisions of the Companies Act, 1956 for
The results for the year and the Company’s financial position at the
end of the year are shown in the attached financial statements.
During the year under review, your Company earned a revenue of iv the Directors had prepared the annual accounts, on a going
Rs. 60.61 lacs and a profit of Rs.3.36 lacs as against previous year concern basis.
revenue of Rs. 62.22 lacs and profit of Rs. 6.01 lacs. The directors
OTHER PARTICULARS
do not recommend a dividend.
DIRECTORS
Indian Companies Act, 1956 are not applicable to the company.
The current directors of the Company are Mr. Neeraj Basur and Ms.
AUDITORS
K. Stanley. None of the directors hold any interest in the shares of
the Company. M/s K.K. Mankeshwar & Co., Chartered Accountants, Auditors of
the Company retire at the conclusion of the ensuing Annual General
Meeting and are eligible for re-appointment.
Your Company has not accepted any deposits from the public during
the year under review.
New Delhi Karin Stanley Director
As per the provisions of Section 217(2AA) of the Indian Companies
JUNE 18, 2009 Neeraj Basur Director
Act, 1956, the Directors confirm that:
i in the preparation of annual accounts, the applicable

14 MAX UK.p65 469 8/19/2009, 12:32 PM

MAX UK LIMITED
Auditors’ Report
TO THE MEMBERS OF MAX UK LIMITED explanations given to us, having regard to the explanation
that certain items purchased are of special nature for
1. We have audited the attached Balance Sheet of MAX UK
which suitable alternative sources do not exist for
LIMITED as at March 31, 2009, and the related Profit and Loss
obtaining comparative quotations, there is an adequate
Account and Cash Flow Statement for the year ended on that
internal control system commensurate with the size of
date annexed thereto. These financial statements are the
the company and the nature of its business for the
responsibility of the company’s management. Our responsibility
purchase of fixed assets and for sale of services. Further,
is to express an opinion on these financial statements based
on the basis of our examination of the books and records
on our audit.
of the company, and according to the information and
2. We conducted our audit in accordance with the auditing explanations given to us, we have neither come across
standards generally accepted in India. Those Standards require nor have been informed of any continuing failure to
that we plan and perform the audit to obtain reasonable correct major weaknesses in the aforesaid internal control
assurance about whether the financial statements are free of system.
material misstatement. An audit includes examining, on a test
vi. In our opinion, the Company has an internal audit system
basis, evidence supporting the amounts and disclosures in the
commensurate with the size and nature of its business.
accounting principles used and significant estimates made by vii. The Central Government of India has not prescribed the
management, as well as evaluating the overall financial maintenance of cost records under clause (d) of sub-
statement presentation. We believe that our audit provides a section (1) of Section 209 of the Act for any of the
reasonable basis for our opinion. products of the company.
3. As required by the Companies (Auditor’s Report) Order, 2003, viii. (a) According to the information and explanations given
as amended by the Companies (Auditor’s Report) (Amendment) to us and the records of the company examined by
Order, 2004, issued by the Central Government of India in terms us, in our opinion, the company is generally regular
of sub-section (4A) of Section 227 of ‘The Companies Act, in depositing the undisputed statutory dues, investor
1956’ of India (the ‘Act’) and on the basis of such checks of education and protection fund, income-tax, sales-
the books and records of the company as we considered tax, wealth tax, service tax, customs duty, excise
appropriate and according to the information and explanations duty, cess and other material statutory dues as
given to us, we further report that: applicable with the appropriate authorities. As
informed, the provisions relating to Employees
i. The Company has maintained proper records showing full
Provident Fund and Miscellaneous Provisions Act,
particulars including quantitative details and situation
1952 and Employees State Insurance are not
of fixed assets.
ii. The fixed assets of the company have been physically
(b) According to the information and explanations given
verified by the management during the year and no
to us and the records of the company examined by
material discrepancies between the book records and the
us, there are no dues of income-tax, sales tax, wealth
physical inventory have been noticed. In our opinion, the
tax, service tax, customs duty, excise duty and cess
frequency of verification is reasonable.
which have not been deposited on account of any
iii. During the year, the Company has not disposed off a major dispute.
part of the fixed assets
ix. The company has accumulated losses, as at March 31,
iv. The company has neither granted nor taken any loans, 2009 more than fifty percent of its net worth and has
secured or unsecured, to/from companies, firms or other not incurred cash losses in the financial year and the
parties covered in the register maintained under Section immediately preceding financial year.
301 of the Act.
x. During the course of our examination of the books and
v. In our opinion and according to the information and records of the company, carried out in accordance with
14 MAX UK.p65 470 8/19/2009, 12:32 PM

MAX UK LIMITED
Auditors’ Report
the generally accepted auditing practices in India, and directors, as on March 31, 2007 and taken on record by
according to the information and explanations given to the Board of Directors, none of the directors is disqualified
us, we have neither come across any instance of fraud on as on March 31, 2009 from being appointed as a director
or by the company, noticed or reported during the year, in terms of clause (g) of sub-section (1) of Section 274 of
nor have we been informed of such case by the the Act;
management.
xi. The other clauses of paragraph 4 of the Companies according to the explanations given to us, the said
(Auditor’s Report) Order 2003, as amended by the financial statements together with the notes thereon and
Companies (Auditor’s Report) (Amendment) Order, 2004, attached thereto give in the prescribed manner the
are not applicable in the case of the company for the information required by the Act and give a true and fair
current year, since in our opinion there is no matter which view in conformity with the accounting principles
arises to be reported in the aforesaid order. generally accepted in India:
4. Further to our comments in paragraph 3 above, we report that: (i) in the case of the Balance Sheet, of the state of affairs
of the company as at March 31, 2009;
which to the best of our knowledge and belief were (ii) in the case of the Profit and Loss Account, of the
necessary for the purposes of our audit; profit for the year ended on that date; and
(b) In our opinion, proper books of account as required by (iii) in the case of the Cash Flow Statement, of the cash
law have been kept by the company so far as appears flows for the year ended on that date
DINESH K. BACHCHAS
(c) The Balance Sheet, Profit and Loss Account and Cash Flow Partner
Statement dealt with by this report are in agreement with Membership No. 97820
For and on Behalf of
(d) In our opinion, the Balance Sheet, Profit and Loss Account New Delhi K K Mankeshwar & Co.
and Cash Flow Statement dealt with by this report comply JUNE 18, 2009 Chartered Accountants
with the accounting standards referred to in sub-section
(3C) of Section 211 of the Act;
14 MAX UK.p65 471 8/19/2009, 12:32 PM

MAX UK LIMITED

RUPEES
March 31, 2009 March 31, 2008
SOURCES OF FUNDS
Share Capital 1 21,300,000 21,300,000
Reserves and Surplus 2 1,655,282 2,297,000
22,955,282 23,597,000
FIXED ASSETS 3
Gross Block 849,850 912,272
Less: Depreciation 849,850 912,272
Net Block - -

Cash and Bank Balances 1,181,781 519,581
Sundry Debtors 5,417,309 5,853,030
9,764,445 9,792,118
LESS: CURRENT LIABILITIES AND PROVISIONS
Current Liabilities 5 959,158 645,994
Provisions 66,075 101,337
1,025,233 747,331

22,955,282 23,597,000
DINESH K. BACHCHAS i
Membership No. 97820 KARIN STANLEY Director
K.K. Mankeshwar & Co.
New Delhi
JUNE 18, 2009
14 MAX UK.p65 472 8/19/2009, 12:32 PM

MAX UK LIMITED
RUPEES
March 31, 2009 March 31, 2008
INCOME
Overheads Recovered 6,046,568 6,173,564
Other Income 6 14,639 48,820
6,061,207 6,222,384
EXPENDITURE
Administration and Other Expenses 7 5,639,935 5,576,922
Depreciation 3 - 32,330
5,654,256 5,621,031
PROFIT BEFORE TAX 406,951 601,353
Provision for Taxation 70,808 325
PROFIT AFTER TAX 336,143 601,028
(LOSS) CARRIED FORWARD TO BALANCE SHEET (14,216,070) (14,552,213)
Basic and Diluted earnings per share

Profit after tax 336,143 601,028
Weighted average number of ordinary shares 299,742 299,742
Earning per ordinary share of GBP 1/- each 1.12 2.01
Number of Shares used in computing earnings per share 299,742 299,742

Outstanding at the beginning of the year 299,742 299,742
Outstanding at the end of the year 299,742 299,742
New Delhi
JUNE 18, 2009
14 MAX UK.p65 473 8/19/2009, 12:32 PM

MAX UK LIMITED
RUPEES
March 31, 2009 March 31, 2008
Net Profit Before Tax 406,951 601,353
Adjustments for:
Depreciation - 32,330
Operating Profit Before Working Capital Changes 400,268 613,294
Adjustments for:
Other Receivables 689,873 (1,243,459)
Trade Payables 313,164 (220,540)
Cash Generated From/(Used in) Operations 1,403,305 (850,705)
Direct Taxes (Paid) (106,070) (194,754)
Cash From/(Used in) Operating Activities 1,297,235 (1,045,459)
Cash From/(Used in) Investing Activities - -
Interest received on Deposit with Bank 6,683 20,389
Cash From/(Used in) Financing Activities 6,683 20,389
Net Increase/(Decrease) in Cash and Cash Equivalents 1,303,918 (1,025,070)
Foreign Currency Translation Reserve (641,718) (610,941)
662,200 (1,636,011)
Cash and Cash Equivalents As At March 31, 2008 519,581 2,155,592
Cash and Cash Equivalents As At March 31, 2009 1,181,781 519,581
Net Increase/(Decrease) in Cash and Cash Equivalents 662,200 (1,636,011)
Notes
2 Cash and Cash Equivalents at the end of the year consist of Cash and Balances with Bank: RUPEES
As at As at
March 31, 2009 March 31, 2008
- Cash in Hand 371 955
- Balance with Bank 1,181,410 518,626
1,181,781 519,581
Cash Flow Statement
New Delhi
JUNE 18, 2009
14 MAX UK.p65 474 8/19/2009, 12:32 PM

MAX UK LIMITED

RUPEES
As at As at
March 31, 2009 March 31, 2008
SCHEDULE-1
SHARE CAPITAL
AUTHORISED
1,000,000 (Previous year 1,000,000) Ordinary shares of GBP 1/- each 71,061,111 71,061,111

299,742 (Previous year 299,742) Ordinary Shares of GBP 1/- each 21,300,000 21,300,000
(held by Max India Limited, the Holding Company) 21,300,000 21,300,000
SCHEDULE - 2
RESERVE AND SURPLUS
FOREIGN CURRENCY TRANSLATION RESERVE
Opening Balance 2,297,000 2,909,218
Additions during the year (641,718) (612,218)
Closing Balance 1,655,282 2,297,000
SCHEDULE - 3
FIXED ASSETS
(Refer Notes A4 and A5 on Schedule 9)
RUPEES
Particulars As on Additions Deletions Translation As on As on Additions Translation As at As at As at
April 1, Reserve March 31, April 1, Reserve March 31, March 31, March 31,
2008 2009 2008 2009 2009 2008
Tangible Assets
Furniture, Fixture and
Equipments
- Furniture and Fixture 499,919 - - (34,207) 465,712 499,919 - (34,207) 465,712 - -
- Office Equipment 412,353 - - (28,215) 384,138 412,353 - (28,215) 384,138 - -
Total 912,272 - - (62,422) 849,850 912,272 - (62,422) 849,850 - -
Previous year 977,025 - - (64,753) 912,272 943,093 32,330 (63,151) 912,272
14 MAX UK.p65 475 8/19/2009, 12:32 PM

MAX UK LIMITED

RUPEES
As at As at
March 31, 2009 March 31, 2008
SCHEDULE - 4
Cash in Hand 371 955
With Non-Scheduled Bank
- in Current Account (Barclays Bank Plc.) * 1,181,410 518,626
1,181,781 519,581
* Maximum balance outstanding during the year Rs. 3,898,014 (Previous year Rs. 4,447,524/-)
SUNDRY DEBTORS
Unsecured **
- Considered Good 3,796,931 4,075,850
Other Debts
- Considered Good 1,620,378 1,777,180
5,417,309 5,853,030
** Amounts due from companies under the same management
- Max Healthcare Institute Limited Rs. 1,620,378/- (Previous year Rs. 1,777,180/-)
- Neeman Medical International NV Rs. 3,796,931/- (Previous year Rs. 4,075,850/-)
- Max India Limited Rs. 1,620,378/- (Previous year Rs. 1,777,180/-)
- Max Healthcare Institute Limited Rs. 1,777,180/- (Previous year Rs. 1,777,180/-)
- Neeman Medical International NV Rs. 4,075,850/- (Previous year Rs. 4,365,151/-)
LOANS AND ADVANCES

Unsecured, Considered Good
Advances recoverable in cash or in kind or for value to be received 2,994,940 3,236,814
3,165,355 3,419,507
9,764,445 9,792,118
SCHEDULE - 5
CURRENT LIABILITIES
Sundry Creditors***
and small enterprises 514,730 566,867
Other Liabilities 444,428 79,127
959,158 645,994
*** There are no dues to creditors coming under the definition of Micro Enterprises and
Small Enterprises as at March 31, 2009 and March 31, 2008
14 MAX UK.p65 476 8/19/2009, 12:32 PM

MAX UK LIMITED

RUPEES
March 31, 2009 March 31, 2008
SCHEDULE - 6
OTHER INCOME
Interest on Fixed Deposit with Bank 6,683 20,389
Miscellaneous Income 7,956 28,431
14,639 48,820
SCHEDULE - 7
PERSONNEL
Salaries and Wages 3,182,404 3,249,244
ADMINISTRATION and OTHER EXPENSES
Power and Fuel 23,788 9,504
Travelling and Conveyance 8,354 23,395
Rent 665,918 647,249
Communication 400,028 365,540
Repairs and Maintenance-Others 37,155 53,288
Insurance 389,685 398,357
5,639,935 5,576,922
SCHEDULE - 8
FINANCIAL EXPENSES
14,321 11,779
14 MAX UK.p65 477 8/19/2009, 12:32 PM

MAX UK LIMITED

SCHEDULE - 9
1956.
3 Expenditure
4 Fixed Assets
Fixed Assets are stated at their original cost.
5 Depreciation
Depreciation is charged on straight-line method on a pro-rata basis at rates estimated by the management based on the economic
useful life of the assets, which are not lower than the rates prescribed under Schedule XIV to the Companies Act, 1956.
6 Taxation
Provision for tax consists of current tax and deferred tax. Current tax provision is computed for current income based on the tax
the balance sheet date between the carrying amount of assets and liabilities and their respective tax basis. Deferred tax assets are

(i) Monetary assets and liabilities related to foreign transactions remaining unsettled at the end of the year are translated at
year-end rates.
are recognized in the Profit and Loss account.
8 Leases
Max UK Limited is incorporated and operates under the applicable laws of England and Wales.

Standard-11 issued by ICAI on ‘The Effects of Changes in Foreign Rates’. The functional currency of the Company is Pound
Sterling (GBP).
14 MAX UK.p65 478 8/19/2009, 12:32 PM

MAX UK LIMITED

sheet date (1GBP = Rs. 74.1579 as on March 31, 2009 and 1GBP = Rs. 79.6049 as on March 31, 2008).
b) For revenues and expenses using average exchange rates prevailing during the reporting period (1GBP = Rs. 79.5601 for
the period April 1, 2008 to March 31, 2009 and 1GBP = Rs. 81.2311 for the period April 1, 2007 to March 31, 2008).
11.
3 Contingent Liabilities – Nil
4 Leases
a) Finance Lease
b) Operating Lease
(i) Lease rentals recognised in the profit and loss account for the year is Rs. 665,918/- (Previous year Rs. 647,249/-).
(ii) The Company has entered into operating leases that are renewable on a periodic basis and cancellable at Company’s
option. The Company has not entered into sublease agreements in respect of these leases.
(iii) The total of future minimum lease payments under non-cancellable leases are as follows:
RUPEES
March 31, 2009 March 31, 2008
Not later than one year 332,959 332,073
5 Segment Reporting:
The Company operates only in one business segment viz. to work as a representative office of Max Group companies. Accordingly
there are no reportable business segments.
6 Salaries and wages include an amount of Rs. 3,182,404 (Previous year Rs. 3,249,244) paid to a director of the Company.
7 Deferred Tax:
The net deferred tax asset has not been recognized due to virtual uncertainty regarding future taxable profits.

(i) Holding Company Max India Limited, India
(ii) Fellow Subsidiaries Max New York Life Insurance Company Ltd., Max Ateev Ltd., Neeman Medical International
BV, Neeman Medical International NV, Max Neeman Medical International Inc., USA, Max
Medical Services Ltd., Max Healthcare Institute Ltd., Alps Hospital Ltd., Pharmax Corporation
Ltd., Max Neeman Medical International Ltd., Max HealthStaff International Ltd.
(iii) Key Management Personnel Ms. Karin Stanley
14 MAX UK.p65 479 8/19/2009, 12:32 PM

MAX UK LIMITED

are as follows:
RUPEES
Holding Fellow Key Management
Company Subsidiaries Personnel
(i) Income
- Overhead Recovered 3,023,284 3,023,284 -
(3,086,782) (3,086,782) (-)
(ii) Salaries and Wages - - 3,182,404
(-) (-) (3,249,244)
(ii) Amount Outstanding
- Other Receivable - 5,417,309 -
(-) (5,853,030) (-)
10 RUPEES
Auditors’ Remuneration Current Year Previous Year
Audit Fees 318,240 203,078

JUNE 18, 2009 KARIN STANLEY Director
14 MAX UK.p65 480 8/19/2009, 12:32 PM

MAX UK LIMITED

Registration No. 3 6 2 5 9 0 4 State Code N A
Date Month Year
N I L N I L
N I L N I L
2 2 9 5 5 2 2 9 5 5
SOURCES OF FUND
2 1 3 0 0 1 6 5 5
N I L N I L
N I L N I L
8 7 3 9 N I L
Accumulated Losses
1 4 2 1 6
6 0 6 1 5 6 5 4
+ - Profit before Tax + - Profit after Tax
√ 3 3 6 √ 3 3 6
√ 1 . 1 2 N I L
+ - Diluted Earning per Share in Rs. Dividend Rate (%)
√ 1 . 1 2
Product Description N O T A P P L I C A B L E
14 MAX UK.p65 481 8/19/2009, 12:32 PM

MAX UK LIMITED
14 MAX UK.p65 482 8/19/2009, 12:32 PM

MAX UK LIMITED
Notes
14 MAX UK.p65 483 8/19/2009, 12:32 PM

MAX INDIA LIMITED

Annual Report (Full Version) 08-09

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Annual Report (Full Version) 08-09

Uploaded by

Copyright:

Available Formats

Max India Limited ANNUAL REPORT 2008-09 2

TRUST + SERVICE = GROWTH

As is our unwavering passion for best-in-class Service

Because we believe in a simple truth…

When you combine Trust with Service

Max India Limited…Growing for India

Max India Limited ANNUAL REPORT 2008-09 3

IN 2008-09, MAX INDIA

Max India Limited ANNUAL REPORT 2008-09 5

Max India Limited ANNUAL REPORT 2008-09 6

Max India Limited ANNUAL REPORT 2008-09 7

Let me now highlight the performance of

MAX NEW YORK LIFE (MNYL)

< Number of policies sold since inception

Max India Limited ANNUAL REPORT 2008-09 8

THE EMBEDDED VALUE OF THE LIFE

Max India Limited ANNUAL REPORT 2008-09 9

Max India Limited ANNUAL REPORT 2008-09 10

Max India Limited ANNUAL REPORT 2008-09 11

MAX BUPA IS COMMITTED TO

Max India Limited ANNUAL REPORT 2008-09 12

MAX SPECIALITY PRODUCTS IS

Max India Limited ANNUAL REPORT 2008-09 13

Max India Limited ANNUAL REPORT 2008-09 14

MAX INDIA LIMITED MAX NEW YORK LIFE INSURANCE

Mr. N. Rangachary - Non-executive Director Mr. John Harrison - Non-executive Director

MAX HEALTHCARE INSTITUTE LIMITED MAX BUPA HEALTH INSURANCE

Max India Limited ANNUAL REPORT 2008-09 15

MAX INDIA REMAINS COMMITTED

INTRODUCTION < Protecting Life through its life insurance subsidiary

Max India Limited ANNUAL REPORT 2008-09 17

BOX1: HIGHLIGHTS OF DEVELOPMENTS IN 2008-09

International Finance Corporation invested Government of Punjab to build hospitals in

Life Insurance Speciality Products

< Max Healthcare was awarded land by the

Max India Limited ANNUAL REPORT 2008-09 18

MAX NEW YORK LIFE INSURANCE COMPANY LTD.

Max India Limited ANNUAL REPORT 2008-09 19

BOX 2: MNYL'S PERFORMANCE HIGHLIGHTS, 2008-09

Max India Limited ANNUAL REPORT 2008-09 20

As a result, after eight years of strong growth since

Chart A: Total 1st Yr

MNYL HAS ALWAYS FOCUSED ON

In this difficult scenario, it is worth noting that

Max India Limited ANNUAL REPORT 2008-09 21

< Today, the Life Insurance sector is still just 4% of GDP.

Max India Limited ANNUAL REPORT 2008-09 22

MNYL MANAGED TO OVERCOME

Max India Limited ANNUAL REPORT 2008-09 23

MNYL’S EMERGING MARKETS

Max India Limited ANNUAL REPORT 2008-09 24

Max India Limited ANNUAL REPORT 2008-09 25

THE NEW PRODUCTS THAT HAD

Max India Limited ANNUAL REPORT 2008-09 26

Max India Limited ANNUAL REPORT 2008-09 27

MNYL LAUNCHED ITS NEW BRAND

Max India Limited ANNUAL REPORT 2008-09 28

All these marketing efforts resulted in brand awareness

MNYL was declared a “Superbrand” by Superbrands India,

SPECIAL PRODUCT CUSTOMISATION: MAX VIJAY

Max India Limited ANNUAL REPORT 2008-09 29

INVESTMENT MANAGEMENT to 60% in equity) categories. This reflects the investment

Table 1: Performance of MNYL ULIPs