1.  Basis of Preparation of Financial Statements
 
 Financial Statements are prepared on an accrual basis, under historical
 cost convention and in accordance with the Accounting Standards issued
 by the Institute of Chartered Accountants of India and as per the
 requirements of the Companies Act, 1956.
 
 2.  Use of Estimates
 
 The preparation of financial statements requires the management of the
 Company to make estimates and assumptions that affect the reported
 balances of assets and liabilities and disclosures relating to the
 contingent liabilities as at the date of financial statements and
 reported amounts of income and expenses during the year.
 
 3.  Fixed Assets, Intangible Assets and Capital Work-in-Progress
 
 Fixed Assets are carried at cost less accumulated depreciation and
 impairment loss, if any. Cost includes all expenses incurred to bring
 the assets to its present location and condition. Capital
 Work-in-Progress comprises outstanding advances paid to acquire fixed
 assets and the cost of fixed assets that are not yet ready for their
 intended use at the reporting date. Assets acquired on hire purchase
 are capitalized at gross value and interest thereon is charged to
 revenue. Intangible assets are stated at cost of acquisition/ cost of
 development less accumulated amortization.
 
 4.  Depreciation and Amortization
 
 Depreciation on fixed assets other than purchased for usage in
 executing the contractual obligations with the customers under the
 project is provided on Straight Line Method at the rates and in the
 manner prescribed in Schedule XIV of the Companies Act, 1956.
 
 Fixed assets purchased for usage in executing the contractual
 obligations with the customers under the project are depreciated over
 the period of contract.
 
 Intangible assets comprising knowledge resource and content are
 amortized over a period of five years.
 
 5.  Revenue Recognition
 
 Education and training income is recognised on rendering of services
 over the period of instruction as per the terms of agreement as the
 case may be.
 
 In respect of fixed price contracts, revenue is recognised as per the
 proportionate completion method.
 
 Revenue in respect of sale of courseware content and knowledge resource
 is recognised on the basis of despatch/delivery to the customers.
 Revenue in respect of sale of hardware is recognised when substantial
 risks and rewards of ownership is transferred to the buyer under the
 terms of the contract.  Revenue from online educational services is
 recognised upon receipt of subscription fees.In case of supply to
 licensee, the revenue is recognised on establishment of right to
 receive.  Dividend income is recognised when the right to receive
 payment is established. Interest income is recognised on time
 proportion basis.
 
 6.  Investments
 
 Long term investments are carried at cost less provision for other than
 temporary diminution in the carrying value of each investment. Current
 investments are stated at the lower of cost or quoted/ fair value
 computed category wise.
 
 7.  Leases
 
 Lease arrangements where the risks and rewards incidental to the
 ownership of an asset substantially vest with the lessor, are
 recognised as operating leases. Lease rentals under operating leases
 are recognised in the Profit and Loss account on a straight line basis
 over the lease term.
 
 8.  Employee Benefits
 
 a.  Short term employee benefits are charged off at the undiscounted
 amount in the year in which related service is rendered.
 
 b.  Post employment and other long term employee benefits are charged
 off in the year in which the employee has rendered the service. The
 amount charged off is recognised at the present value of the amount
 payable determined using actuarial valuation technique. Actuarial gain
 and loss in respect
 
 of post employment and other long term benefits are charged to profit
 and loss account.
 
 9.  Provisions, Contingent Liabilities and Contingent Assets
 
 A provision is recognised when there is a present obligation as a
 result of a past event, it is probable that an outflow of resources
 will be required to settle the obligation and in respect of which
 reliable estimate can be made.
 
 Contingent liabilities not provided for are disclosed by way of notes.
 
 Contingent assets are neither recognised nor disclosed in the financial
 statements.
 
 10. Borrowing Costs
 
 Borrowing costs that are attributable to the acquisition or
 construction of qualifying fixed assets are capitalized as part of the
 cost of such assets till such time the asset is ready for its intended
 use or sale. A qualifying asset is one that necessarily takes
 substantial period of time to get ready for intended use or sale and
 other borrowing costs are recognised as an expense in the period in
 which they are incurred.
 
 11. Taxation
 
 Current tax is determined as the amount of tax payable in respect of
 taxable income of the year.
 
 Deferred tax expense or benefit is recognised on timing differences
 being the difference between taxable income and accounting income that
 originate in one period and are capable of reversal in one or more
 subsequent periods.  Deferred tax assets and liabilities are measured
 using the tax rates and tax laws that have been enacted or
 substantively enacted by the balance sheet date.
 
 In the event of unabsorbed depreciation and carry forward of losses,
 deferred tax assets are recognised only to the extent that there is
 virtual certainty that sufficient taxable income will be available to
 realize such assets. In other situations, deferred tax assets are
 recognised only to the extent that there is reasonable certainty that
 sufficient future taxable income will be available to realize these
 assets.
 
 Advance taxes and provisions for current income taxes are presented in
 the balance sheet after off-setting advance taxes paid and income tax
 provisions arising in the same tax jurisdiction and the Company intends
 to settle the assets and liabilities on a net basis.
 
 The Company offsets deferred tax assets and deferred tax liabilities if
 it has a legally enforceable right and these relate to taxes on income
 levied by the same governing taxation laws.
 
 12. Foreign Currency Transactions
 
 Foreign currency transactions are accounted for at the exchange rates
 prevailing at the date of the transaction. Gains and losses resulting
 from the settlement of such transactions and from the translations of
 monetary assets and liabilities denominated in foreign currencies at
 the year end are recognised in the profit and loss account.
 
 13. Impairment of Assets
 
 Assets that are subject to impairment are reviewed for impairment
 whenever events or changes in circumstances indicate that the carrying
 amount may not be recoverable. An impairment loss is recognised for the
 amount by which the assets carrying amount exceeds the recoverable
 amount.
 
 14. Earnings Per Share
 
 The earnings considered in ascertaining EPS comprise the net profit
 after tax. The number of shares used in computing Basic EPS is the
 weighted average number of shares outstanding during the year. Diluted
 earnings per share is computed by dividing the net profit after tax by
 the weighted average number of equity shares considered for deriving
 basic earnings per share and also the weighted average number of equity
 shares that could have been issued up on conversion of all dilutive
 potential equity shares.
 
 15. 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, investment
 and financing activities of the Company are segregated.
 
 Cash and Cash equivalents for the purpose of cash flow statement
 comprises of Cash at Bank, Cash in Hand (including cheques in hand) and
 short term investments.
 
 16. Accounting of Claims
 
 Claims receivable are accounted at the time when such income has been
 earned by the Company depending on the certainty of receipts.  Claims
 payable are accounted at the time of acceptance.
 
 Claims raised by the Government Authorities regarding Taxes and Dues
 which are disputed by the Company are accounted based on merits of each
 claim.