1.  Basis of Preparation of financial Statements
 
 These financial statements are prepared to comply in all material
 aspects with all the applicable accounting principles in India, the
 applicable accounting standards notified u/s 211(3C) of the Companies
 Act, 1956 (the Act) and the relevant provisions of the Act.
 
 2.  Fixed Assets
 
 Fixed Assets are stated at cost of acquisition along with related
 taxes, duties and incidental expenses related to these assets.
 
 Intangible assets are stated at their cost of acquisition.
 
 Profit/Loss on disposal of fixed assets is recognized in the Profit &
 Loss Account.
 
 3.  Depreciation
 
 Leasehold Land and Leasehold improvements are amortized over the lease
 period, which corresponds with the useful lives of the related assets.
 
 Assets costing less than or equal to Rs.5,000 are fully depreciated in
 the year of acquisition.
 
 Cost of Operating and Marketing rights acquired is amortised over a
 period of 5 years.
 
 The effective rates of depreciation based on the estimated useful lives
 are above the minimum rates as prescribed by Schedule XIV of the Act.
 
 4.  Foreign Currency Transactions
 
 Transactions in foreign currency are accounted for at the rate
 prevailing on the date of the transaction. Gain/Loss arising on
 fluctuation in foreign exchange rate between the transaction date and
 settlement date are recognized in the Profit and Loss Account. Foreign
 currency monetary assets and liabilities are restated at the exchange
 rate prevailing at the year end and the overall net gain/loss is
 adjusted to the Profit and Loss Account.
 
 5.  Revenue Recognition
 
 The Company earns revenue significantly from the following sources viz.
 
 a) Recruitment solutions through its career web site, Naukri.com:-
 Revenue is received in the form of fees, which is recognized prorate
 over the subscription / advertising agreement, usually ranging between
 one to twelve months.
 
 b) Matrimonial web site, Jeevansathi.com and Real Estate website,
 99acres.com:- Revenue is received in the form of subscription fees,
 which is recognized over the period of subscription, usually ranging
 between one to twelve months.
 
 c) Placement search division, Quadrangle:- Revenue is received in the
 form of fees, for placements at various levels in a clients
 organization. Revenue is booked on the successful completion of the
 search and selection activity.
 
 d) Real Estate broking division:- Commission income on property
 bookings placed with builders/developers is accrued once the related
 services have been rendered by the company.
 
 e) Resume Sales Service:- 
 
 The revenue from Resume Sale Services is earned in the form of fees and
 is recognized on completion of the related service.
 
 In respect of a), b) and c) above, the unaccrued amounts are not
 recognized as revenue till all obligations are fulfilled and are
 reflected in the Balance sheet as Deferred Sales Revenue.
 
 All the above sources of revenue are shown net of service tax and is
 not recognized in instances where there is uncertainty with regard to
 ultimate collection. In such cases revenue is recognized on reasonable
 certainty of collection.
 
 6.  Investments
 
 Long-term investments are carried at cost less provision for permanent
 diminution in value of such investments. Current investments are
 carried at lower of cost and fair value.
 
 7.  Employee benefits (Refer note 21 on Schedule 19 to Accounts)
 
 The company has Defined Contribution plan for the post employment
 benefits namely Provident Fund which is recognized by the income tax
 authorities. These funds are administered through the Regional
 Provident Fund Commissioner and the Companys contributions thereto are
 charged to revenue every year. The Companys contribution to state
 plans namely Employee State Insurance Fund is charged to revenue every
 year.
 
 The Company has Defined Benefit plans namely leave encashment,
 compensated absence and gratuity for employees, the liability for which
 is determined on the basis of an actuarial valuation at the end of the
 year. The Gratuity Fund is recognized by the income tax authorities and
 is administered through Life Insurance Corporation of India under its
 Group Gratuity Scheme.
 
 Termination benefits are recognized as an expense immediately.
 
 Gains and losses arising out of actuarial valuations are recognized
 immediately in the Profit and Loss Account as income or expense.
 
 8.  Leased Assets
 
 i) Assets acquired on lease where the Company has substantially all the
 risks and rewards of ownership are classified as finance leases.  Such
 assets are capitalized at the inception of the lease at lower of the
 fair value or the present value of minimum lease payments and a
 liability is created for an equivalent amount. Each lease amount paid
 is allocated between the liability and the interest cost, so as to
 maintain a constant periodic rate of interest on the outstanding
 liability for each period.
 
 ii) 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
 recognised as expense in the Profit and Loss Account on a straight line
 basis over the lease term.
 
 9.  Taxes on Income
 
 Tax expense comprises of current tax and deferred tax. Deferred tax
 reflects the effect of temporary timing differences between the assets
 and liabilities recognized for financial reporting purposes and the
 amounts that are recognized for current tax purposes. Deferred tax
 assets are recognized and carried forward only to the extent there is a
 reasonable/virtual certainty that sufficient future taxable income will
 be available against which such deferred tax asset can be realized.
 
 10.  Earnings Per Share (EPS)
 
 The earnings considered in ascertaining the Companys EPS comprises the
 net profit after tax and include the post tax effect of any extra
 ordinary items. The number of shares used in computing Basic EPS is the
 weighted average number of shares outstanding during the year.
 
 11.  Employee Stock Option based Compensation
 
 Stock options granted to the employees and to the non-executive
 Directors who accepted the grant under the Companys Stock Option Plan
 are accounted in accordance with Securities and Exchange Board of India
 (Employees Stock Option Scheme) Guidelines, 1999 as amended from time
 to time. The Company follows the intrinsic value method and
 accordingly, the excess, if any, of the market price of the underlying
 equity shares as of the date of the grant of the option over the
 exercise price of the option, is recognized as employee compensation
 cost and amortised on a graded vesting basis over the vesting period.
 
 12.  Provisions and Contingencies
 
 The Company creates a provision when there is a present obligation as a
 result of past event that probably requires an outflow of resources and
 a reliable estimate can be made of the amount of obligation. A
 disclosure of contingent liability is made when there is a possible
 obligation or a present obligation that will probably not require
 outflow of resources or where a reliable estimate of the obligation
 cannot be made.
 
 13.  Dividend income
 
 Dividend from investments is recognized when the right to receive the
 payment is established and when no significant uncertainty as to
 measurability or collectibility exists.
 
 14.  Interest Income
 
 Interest income is recognized on the time basis determined by the
 amount outstanding including the tax credits and the rate applicable
 and where no significant uncertainty as to measurability or
 collectibility exists.
 
 15.  Use of Estimates
 
 The preparation of financial statements in conformity with accounting
 principles generally accepted in India requires the Management to make
 estimate and assumptions that affect the reported amount of assets and
 liabilities as at the Balance Sheet date, reported amount of revenue
 and expenses for the year and disclosures of contingent liabilities as
 at the Balance Sheet date. The estimates and assumptions used in the
 accompanying financial statements are based upon Managements
 evaluation of the relevant facts and circumstances as at the date of
 the financial statements. Actual results could differ from these
 estimates.