Basic for Preparation of Statements
 
 The financial statements have been prepared under the historical cost
 convention in accordance with the Generally Accepted Accounting
 Principles (GAPP] in India and the relevant provisions of the Companies
 Act, 1956. All income and expenditure having a material bearing on the
 financial statements are recognized on accrual basis. GAAP comprise
 mandatory accounting standards issued by the Institute of Chartered
 Accountants of India (1CA1] and the provisions of the Companies Act,
 1956, to the extent applicable.
 
 Revenue Recognition
 
 The Company follows the Mercantile System of Accounting and recognises
 Income and Expenditure on an accrual basis.  Sales are recognized when
 services are rendered. Interest income is recognized on a time
 proportion basis taking into account the amount outstanding and the
 rate applicable. Sign up Fees are accounted in the year of sign up.
 
 Fixed Assets
 
 Fixed Assets are stated at original cost less depreciation. Fixed
 Assets are stated at cost of acquisition inclusive of inward freight,
 duties and taxes and incidental expenses related to acquisition. In
 respect of major projects involving construction related pre-operative
 expenses form part of the value of the assets capitalised.
 
 Capitalisation and Amortisation of Software Product Acquisition and
 Product Development Costs
 
 Costs incurred towards acquisition and development of Computer Software
 products meant for sale, lease or otherwise marketed, are capitalised
 until the product is available for release to the customers.
 Capitalized Software Costs are amortised on a product-by-product basis
 based on straight-line method over the estimated economic life of the
 product. The carrying value of Capitalised Software Costs is reviewed
 at each Balance Sheet date and adjusted for any changes to the
 estimated economic life of the product.
 
 Depreciation
 
 Depreciation is charged for those assets which have been put into use
 during the year under straight line method on pro rata basis at the
 rates specified in Schedule XIV to the Companies Act, 1956 as amended
 by the Government of India, Ministry of Law, Justice & Company Affairs
 vide notification No. GSR 756 [EJ dated 16.12.1993.
 
 Depreciation on additions/deletions for the period is provided pro rata
 with reference to the month of addition/deletion.
 
 Depreciation on Intangible Assets (Computer Software] are provided
 based on the management''s estimate of useful lives and at the rate of
 16.21% pro rata with reference to the month of addition/deletion.
 
 Investments
 
 Investments are valued at cost price. Any temporary diminution in the
 value of investment meant to be held for a long term is not recognized.
 There is no impairment perceived in investments as on date.
 
 Taxation
 
 The current charge for Income Tax and Fringe Benefit Tax is based on
 the tax liability computed after considering tax allowances and
 exemptions.
 
 Deferred tax is provided using the liability method in respect of
 taxation effect arising from all material timing difference between the
 accounting and Tax treatment of Income and Expenditure which are
 expected with reasonable probability to crystallise in the forseeable
 future.
 
 Earnings per Share
 
 In determining earnings per share, the Company considers the net profit
 after tax and includes the post tax effect of any extra- ordinary /
 exceptional item. The number of shares used in computing basic earnings
 per share is the weighted average number of shares outstanding during
 the period. The number of shares used in computing diluted earnings per
 share comprises the weighted average shares considered for deriving
 basic earnings per share, and also the weighted average number of
 equity shares that could have been issued on the conversion of all
 dilutive potential equity shares.
 
 Deferred Revenue Expenditure
 
 The expenses relating to Brand Building and development of Course
 Content is deferred and the amount is written off over a period of 5
 years from the year in which the expenditure is incurred.
 
 Public Issue Expenses
 
 Expenses related to Initial Public Offering [IPO] are written off in 5
 equal instalments starting from the year of public issue.
 
 Cash Flow statement
 
 Cash flows are reported using the indirect method, whereby net profit
 before tax is adjusted for the effects of transactions of a non-cash
 nature and any deferrals or accruals of past or future cash receipts or
 payments. The cash flows from regular revenue generating, investing and
 financing activities of the Company are segregated.
 
 Employee Benefits
 
 Expenses and Liabilities in respect of Employee benefits are recorded
 in accordance with Revised Accounting Standard 15 - Employee Benefits
 (Revised 2005]
 
 i.  Gratuity
 
 Gratuity is a post employment benefit and is in the nature of a defined
 benefit plan. The liability recognized in the Balance Sheet in respect
 of Gratuity is the present value of the defined benefit obligation at
 the Balance Sheet date less the fair value of plan assets, together
 with adjustments for recognized actuarial gains or losses and past
 service costs.. The defined benefit obligation is calculated at or near
 the Balance Sheet date by an independent actuary using the projected
 unit credit method.
 
 Actuarial gains and losses arising from past experience and changes in
 actuarial assumptions are charged or credited to the Profit and Loss
 Account in the year in which such gains or losses are determined.
 
 ii.  Provident Fund
 
 The Company makes contribution to statutory provident fund in
 accordance with Employees Provident Fund and Miscellaneous Provision
 Act, 1952 which is a defined contribution plan and contribution payable
 is recognized as an expense in the period in wich services are rendered
 by the employee.
 
 Accordance with Employees Provident Fund and Miscellaneous Provision
 Act, 1952 which is a defined contribution plan and contribution payable
 is recognized as an expense in the period in wich services are rendered
 by the employee.
 
 Leases
 
 Leases of assets under which significant risks and rewards of ownership
 are effectively retained by the lessor are classified as operating
 leases. Lease payments under an operating lease are recognized as
 expense in the Profit and Loss Account on a straight tline basis over
 the lease term.
 
 Impairment of Assets
 
 The Company assesses at each Balance Shet date whether there is any
 indication that an asset may be impaired. If any such indication
 exists, the Company estimates the recoverable amount of the asset. If
 such recoverable amount of the asset or the recoverable amount of the
 cash generating unit to which the asset belongs is less than its
 carrying amount, the carrying amount is reduced to its recoverable
 amount and the reduction is treated as an impairment loss and is
 recognized in the Profit and Loss Account. If at the Balance Sheet date
 there is an indication that a previously assessed impairment loss no
 longer exists, the recoverable amount is reassessed and the asset is
 reflected at the recoverable amount subject to a maximum of depreciated
 historical cost.
 
 Foreign Exchange Transactions
 
 The Revenue earnings are accounted on estimated basis at the date of
 the transaction and the Exchange Fluctuation is accounted separately on
 realisation.
 
 Segment Reporting
 
 The Company operates in the same segment which are subject to same
 risks and returns.
 
 Miscellaneous Expenditure
 
 Preliminary Expenses is amortised over a period of 10 years.
 
 Interim Financial Reporting
 
 Quarterly Financial results are published in accordance with the
 guidelines given by SEBI. The recognition ad measurement and
 measurement principles are laid down in the Standard are followed with
 respect to such results. The Quarterly results are also subjected to a
 limited review by the auditors as required by SEBI.
 
 Consolidated Financial Statements
 
 Consolidated Financial Statement of the Company and its subsidiary
 Vidhyadhana Education Services Private Limited are annexed.
 
 Contingent Liabilities
 
 Depending upon the facts of each case and after due evaluation of legal
 aspect, claims against the Company not acknowledged as debts are
 treated as contingent liabilities. In respect of statutory dues
 disputed and contested by the Company, contingent liabilities are
 provided for and disclosed as per original demand without taking into
 account any interest or penalty that may accrue thereafter. .