(i) Basis for preparation of Financial Statements
 
 The financial statements which have been prepared under the historical
 cost convention on the accrual basis of accounting, are in accordance
 with the applicable requirements of the Companies Act, 1956 (the ''Act'')
 and comply in all material aspects with the Accounting Standards
 prescribed by the Central Government, in accordance with the Companies
 (Accounting Standards) Rules, 2006 as adopted consistently by the
 Company, to the extent applicable.
 
 The presentation of financial statements in conformity with GAAP
 requires management of the Company to make estimates and assumptions
 that affect the amounts reported in the financial statements and
 accompanying notes. Although these estimates are based on management''s
 best knowledge of current events and actions the Company may undertake
 in future, actual results ultimately may differ from the estimates.
 
 (ii) Revenue recognition
 
 The Company recognizes revenue on accrual basis in accordance with
 Accounting Standard 9. The Company derives its revenue from either
 supply or on installation of educational products and provision of
 educational services.
 
 The revenue from sale of educational products/technology equipments is
 recognized on transfer of property in goods which generally coincides
 with dispatch/delivery to the customer.
 
 Revenue from Edureach (ICT) under BOOT contract is recognized ratably
 over the period of the contract/contractual obligations. Revenue from
 professional development is recognized after the professional
 development services have been rendered to the customer. Revenue from
 online educational services (if charged) is recognized upon receipt of
 subscription fee in case non-refundable otherwise ratably over the
 subscription period.
 
 Revenue from franchisee constituting one time franchisee fee
 (non-refundable) is recognized upon receipt of fee from the franchisee.
 The recurring revenue from franchisee is recognized on accrual basis.
 The revenue from tuition fee is recorded equally over the period of
 instruction.
 
 Revenue for smart class projects is recognized under various heads,
 namely: BOOT Contracts/Out right sale basis contracts/Boot business
 transferred under BOOT contracts/Exports. Revenue from smart class
 BOOT contracts is recognized ratably over the period of the
 Contract/contractual obligations. Revenue from Out right sale basis
 contracts consisting of both hardware and Knowledge Based Content,
 wherein Knowledge Based Content is recognized on
 licensing/delivery/grant of the same for the contract period and
 technology Equipments on delivery/dispatch basis. Revenue from
 transfer of existing BOOT Contracts is recognized on grant of right
 to use of Knowledge Based Content.
 
 However, a portion of the revenue earned on right to use/Licensing of
 Educational content/Knowledge Based Content under Out right Sale
 basis contracts and BOOT Business transferred under Boot Contracts
 is treated as unearned towards future cost of updates due to economic
 obligation of the Company to provide the same. The unearned revenue
 will be recognized in subsequent period matching with the cost of
 future updates incurred in those period.
 
 Revenue from overseas agreements/exports is recognized when the
 Educational Knowledge Based Content license is delivered & accepted.
 However in case where knowledge base content is licensed for a long
 term period, and is dependent on percent of revenue earned by the
 licensee, the revenue is recognized on establishment of right to
 receive.
 
 Income from interest on fixed deposits is recognized using the time
 proportion method, based on interest rates implicit in the transaction.
 
 Dividends income is recognized when the right to receive payment is
 established.
 
 (iii) Expenditure
 
 Expenses are accounted for on accrual basis and provisions are made for
 all known losses and liabilities.
 
 License Fees for educational content
 
 In respect of licensing contracts with fixed license fee for fixed
 period and a pre-defined number of sublicensing arrangements, license
 fee is expensed in such a manner that cumulative amount of fee expense
 at the end of each year is based on higher of the following two:
 
 (i) Number of sub-licensing arrangements for which content has been
 provided. This will be computed based on total license fee divided by
 predefined number of sub licensing arrangements.
 
 (ii) Number of years of license period already expired. This will be
 computed based on total license fee divided by fixed period of
 licensing contract.
 
 In respect of contracts where license fees is paid on the basis of
 period of usage, the license fees is charged in the respective periods.
 
 In respect of contracts where license fee is paid on the basis of per
 year per sub licensing arrangement, the entire cost of license for each
 of the sub- licensing arrangement is expensed at the time the revenue
 from sub-licensing arrangement is recognized.
 
 (iv) Fixed assets/Depreciation & Amortization
 
 Fixed assets are stated at cost less accumulated depreciation and
 impairment loss, if any costs include all expenses incurred to bring
 the assets to its present location and condition for its intended use.
 
 Fixed assets purchased for utilization and implementing the contractual
 obligations under the project undertaken under Edureach (ICT), Turnkey
 and Smart Class are depreciated on a straight-line basis over the
 period of contractual obligation generally ranging from 3-6 years
 depending upon the period of the contract.
 
 Depreciation on other tangible fixed assets is provided at the written
 down value method at the rates and in the manner prescribed in Schedule
 XIV to the Companies Act, 1956. Depreciation on addition to fixed
 assets is provided on pro-rata basis from the date the assets are ready
 to use. Depreciation on sale/ deduction from fixed assets is provided
 for upto the date of sale, deduction, discardment as the case may be.
 
 Leasehold improvements are amortized on the straight-line basis over
 the primary period of lease.
 
 Assets costing less than Rs.5,000 are fully depreciated in the year of
 purchase except in case of deployment as project assets (if any).
 
 Capital work-in-progress comprises of capital assets which are not yet
 put to use and also include outstanding advances paid to acquire fixed
 assets.
 
 Intangible Assets
 
 An Intangible asset is recognized, where it is probable that the future
 economic benefits attributable to the asset will flow to the enterprise
 and where its cost can be reliably measured.
 
 Intangible asset are stated at cost of acquisition less accumulated
 amortization. Amortization on the Intangible assets is provided on
 pro-rata basis on the straight-line method based on management''s
 estimate of useful life, i.e. 3 years for software, 4 years for
 Knowledge-based content including Smart class content. Licensed
 intangible assets are amortised over the period of license.
 
 (v) Impairment of Assets
 
 The carrying amounts of assets are reviewed at each balance sheet date
 if there is any indication of impairment based on internal/external
 factors. An impairment loss is recognized wherever the carrying amount
 of an asset exceeds its recoverable amount. The recoverable amount is
 higher of asset''s net selling price and value in use which means the
 present value of future cash flows expected to arise form the
 continuing use of the assets and its eventual disposal. An Impairment
 loss is charged to the profit & loss account in the year in which an
 asset is impaired.
 
 After impairment, depreciation is provided on the revised carrying
 amount of the asset over its remaining useful life.
 
 (vi) Leases
 
 As Lessee:
 
 Lease rentals in respect of operating lease arrangements including
 assets taken on operating lease are recognized as an expense in the
 Profit and Loss Account on accrual basis.
 
 As Lessor:
 
 Lease rental income under operating lease are recognized in the Profit
 and Loss on a straight-line basis/agreed terms over the period of lease
 as the case may be .
 
 (vii) Inventories
 
 Items of Inventories are measured at lower of cost and net realizable
 value after providing for obsolescence. If any, cost of inventories
 comprises of cost of purchase, freight & other expenses incurred in
 bringing the inventories to their present location and condition. The
 cost is determined using the weighted average method.
 
 (viii) Investments
 
 Long term Investments are stated at cost, less provision for other than
 temporary diminution in value.
 
 Short term investments are carried at lower of cost and fair value,
 computed category-wise.
 
 (ix) Foreign Exchange Transactions
 
 a.  Foreign exchange transactions are recorded at the exchange rates
 prevailing at the date of transaction. Exchange differences arising on
 the settlement of monetary items or on restatement of the Company''s
 monetary items at rates different from those at which they were
 initially recorded during the year, or reported in previous financial
 statements, other than those relating to fixed assets are recognised as
 income or as expenses in the year in which they arise.
 
 b.  In translating the Financial statements of liaison offices which
 are treated as integral foreign operations, the monetary assets and
 liabilities are translated at the rate prevailing on the balance sheet
 date; non monetary assets and liabilities are translated at the
 exchange rate prevailing at the date of transaction and income and
 expenses items are translated at the respective monthly average rate.
 
 c.  The Company has opted for accounting the exchange differences
 arising on the reporting of long term foreign currency monetary items
 in line with Companies (Accounting Standards) Amendment Rules 2009 on
 Accounting Standard 11 as notified by the Central Government vide
 Notification F No. 17/33/2009/CL-V dated 31st March, 2009. Accordingly,
 the effect of exchange difference on foreign currency loan (including
 FCCB) is accounted for by addition or deduction to the cost of the
 assets so far it relates to depreciable capital asset and in other
 cases by transfer to Foreign Currency Monetary Items Translation
 Difference Account(FCMITDA) to be amortized as provided in the
 aforesaid notification but not beyond March 31, 2011.
 
 (x) Employee benefits
 
 (a) Short Term Employee Benefits
 
 Short term employee benefits are recognized in the period during which
 the services have been rendered.
 
 (b) Long Term Employee Benefits
 
 (i) Defined Contribution Plan
 
 Contributions to provident fund and ESI are deposited with the
 appropriate authorities and charged to the profit and loss account on
 accrual basis.
 
 (ii) Defined Benefit Plan
 
 Leave Encashment-The Company has provided for the liability at the year
 end on account of unavailed earned leave as per the actuarial valuation
 as per the Projected Unit Credit method in accordance with Accounting
 Standard 15, Employee benefits. All actuarial gains/losses are
 charged to the profit and loss account in the year these arise.
 
 Gratuity-The Company provides for retirement benefits in the form of
 Gratuity. The Company''s gratuity plan is a defined benefit plan. The
 present value of gratuity obligation under such defined plan is
 determined based on an actuarial valuation carried out by an
 independent actuary using the Projected Unit Credit Method, which
 recognizes each period of service as giving rise to additional unit of
 employee benefit entitlement and measures each unit separately to build
 up the final obligation. The obligation is measured at the present
 value of the estimated future cash flows. The discount rate used for
 determining the present value of the obligation under the defined
 benefit plans, is based on the market yields on Government securities
 as at the valuation date having maturity periods approximating to the
 terms of the related obligations. Actuarial gains and losses are
 recognized immediately in the profit and loss account.
 
 (c) Employee Stock Option Scheme
 
 The stock options are accounted as per the accounting treatment
 prescribed by the employee stock option scheme and Employee Stock
 Purchase Guidelines, 1999 issued by Securities Exchange Board of India,
 whereby the intrinsic value of the option being, excess of market value
 of the underlying share immediately prior to the date of award over its
 exercise price is recognized as deferred employee compensation with a
 credit to Employee stock options outstanding account. The deferred
 employee compensation is charged to profit and loss account on straight
 line basis over the vesting period of the option. The balance in
 employee stock option outstanding account net of any unamortized
 deferred employee compensation is shown separately as part of
 shareholders fund.
 
 (xi) Miscellaneous Expenditure
 
 Miscellaneous expenditure is written off in the profit and loss account
 in the year of incurrence or commencement of business which ever is
 later.
 
 (xii) Borrowing Cost
 
 Borrowing costs are determined in accordance with the provisions of AS
 16. Borrowing costs that are attributable to the acquisition or
 construction of qualifying assets are capitalized as part of the cost
 of such assets. A qualifying asset is one that necessarily takes
 substantial period of time to get ready for intended use. All other
 borrowing costs are charged to revenue.
 
 (xiii) Provision for Tax
 
 Tax expense for the year comprises current and deferred is included in
 determining the net profit for the year.
 
 Provision for current tax is based on the tax liabilities computed in
 accordance with the provisions of the Income Tax Act, 1961.
 
 Deferred Tax expense or benefit is recognized on timing difference
 between accounting and taxable income that originates in one year and
 is capable of reversal in one or more subsequent period. Deferred tax
 assets and liabilities are measured using the tax rates and laws that
 have been substantively enacted by the balance sheet date.
 
 The Deferred tax assets are recognized only to the extent there is
 reasonable certainty that sufficient future taxable income will be
 available against which these assets can be realized in future where as
 in cases of existence of carry forward of losses or unabsorbed
 depreciation, deferred tax assets are recognized only if there is
 virtual certainty of realization backed by convincing evidence.
 Deferred tax assets are reviewed at each Balance Sheet date and are
 written- down or written-up to reflect the amount that is
 reasonably/virtually certain (as the case may be) to be realized.
 
 Minimum Alternative Tax (MAT) credit assets is recognized in the
 balance sheet where it is likely that it will be adjusted against the
 discharge of tax liability in future under the Income Tax Act, 1961.
 
 (xiv) Provision, Contingent Liabilities and Contingent Assets
 
 Provisions involving substantial degree of estimation in measurement
 are recognized when there is a present obligation as a result of past
 events and it is probable that there will be an outflow of resources.
 Contingent liabilities are not recognized but are disclosed in the
 notes. Contingent assets are neither recognized nor disclosed in the
 financial statements.
 
 (xv) Earning Per Share
 
 Basic earnings per share are calculated by dividing the net profit or
 loss for the year attributable to equity shareholders after tax by the
 weighted average number of equity shares outstanding during the year.
 The weighted average number of equity shares outstanding during the
 period, are adjusted for events of bonus issued to existing
 shareholders.
 
 For the purpose of calculating diluted earning per share, the net
 profits or loss attributable to equity shareholders and the weighted
 average number of shares outstanding are adjusted for the effects of
 all dilutive potential equity shares, if any.
 
 (xvi) Cash Flow Statement
 
 Cash flows are reported using the indirect method, whereby net profits
 before tax is adjusted for the effect of transaction of 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 are segregated.