a) Accounting convention:
 
 The financial statements have been prepared in compliance with all
 material aspects of the Accounting Standards prescribed in the
 Companies (Accounting Standards) Rules, 2006 notified by the Central
 Government, to the extent applicable and in accordance with the
 relevant provisions of the Companies Act, 1956.
 
 The financial statements are prepared on the basis of historical cost
 convention, and on the accounting principle of a going concern.
 
 The Company follows mercantile system of accounting and recognizes
 income and expenditure on accrual basis except those with significant
 uncertainties.
 
 b) Use of estimates:
 
 The preparation of financial statements in conformity with generally
 accepted accounting principles (GAAP) requires management to make
 estimates and assumptions that affects the reported amounts of assets
 and liabilities and the disclosures of contingent liabilities on the
 date of financial statements and reported amounts of revenue and
 expenses for that year. Although these estimates are based upon
 management''s best knowledge of current events and actions, actual
 results could differ from these estimates.
 
 c) Fixed assets:
 
 i. Fixed assets are stated at cost less accumulated depreciation. Cost
 includes all cost incidental to acquisition, installation,
 commissioning, pre-operative expenses allocated to such assets.
 
 ii. Intangible assets are recognized only if it is probable that the
 future economic benefits that are attributable to the asset will flow
 to the enterprise and the cost of the asset can be measured reliably.
 The capitalised cost includes license fees and cost of implementation /
 system integration services.
 
 d) Inventories:
 
 Inventories are valued at lower of cost or net realizable value. Cost
 of inventories comprises of all cost of purchases and other costs
 incurred in bringing the inventory to their present location and
 condition.  Cost is assigned on First-In-First-Out (FIFO) basis.
 Obsolete, defective and unserviceable stocks are provided for, wherever
 required.
 
 e) Investments:
 
 Long term investments are valued at cost less provision, if any for
 diminution in value, which is other than temporary. Current investments
 are carried at the lower of the cost and fair value.
 
 f) Accounting for taxes on income:
 
 i. Provision for income tax is made on the basis of the estimated
 taxable income for the accounting year in accordance with the
 Income-tax Act, 1961.
 
 ii. The deferred tax for timing differences between the book profits
 and tax profits for the year is accounted for using the tax rates and
 laws that have been enacted or substantially enacted as of the balance
 sheet date. Deferred tax assets arising from timing differences are
 recognized to the extent there is a virtual certainty that these would
 be realized in future and are reviewed for the
 
 appropriateness of their respective carrying values at each balance
 sheet date.
 
 g) Depreciation and amortization:
 
 i. Depreciation on fixed assets is provided on the straight-line method
 at the rates and in the manner prescribed under Schedule XIV of the Act
 except in case of furniture and fixtures and computers where higher
 rate of depreciation i.e. 19% and 31.67%, respectively has been
 provided for.  Depreciation on additions / deletions to fixed assets is
 calculated pro-rata from/up to the date of such additions/deletion.
 
 ii.  Computer software is amortized on the straight-line method over a
 period of thirty six months.
 
 iii. Leasehold improvements are amortized on the straight-line method
 over the term of related lease including extensions which are
 reasonably expected to occur and useful lives of such improvements is
 taken as thirty six months.
 
 iv.  Assets individually costing Rs 5,000 or less are fully depreciated
 in the year of purchase.
 
 h) Transaction in foreign currencies:
 
 Foreign currency transactions are recorded at the exchange rates
 prevailing on the date of such transactions. Monetary assets and
 liabilities as at the Balance Sheet date are translated at the rates of
 exchange prevailing at the date of the Balance Sheet. Gains and losses
 arising on account of differences in foreign exchange rates on
 settlement/translation of monetary assets and liabilities are
 recognized in the profit and loss account. Non-monetary foreign
 currency items are carried at cost.
 
 i) Retirement benefits:
 
 i.  Defined contribution plans
 
 The Company contributes on a defined contribution basis to Employee''s
 Provident Fund, towards post employment benefits, which is administered
 by the respective Government authorities, and has no further obligation
 beyond making its contribution, which is expensed in the year to which
 it pertains.
 
 ii.  Defined benefit plans
 
 The Company has a Defined benefit plan namely Gratuity for all its
 employees. The liability for the defined benefit plan of Gratuity is
 determined on the basis of an actuarial valuation by an independent
 actuary at the year end, which is calculated using projected unit
 credit method.
 
 Actuarial gains and losses are recognized immediately in the profit and
 loss account. The fair value of the plan assets is reduced from the
 gross obligation under the defined plan, to recognize the obligation on
 net basis.
 
 iii.  Employee leave entitlement
 
 The employees of the Company are entitled to leave as per the leave
 policy of the Company. The liability in respect of unutilized leave
 balances is provided based on an actuarial valuation carried out by an
 independent actuary as at the year end which is calculated using
 projected unit credit method and charged to the profit and loss
 Account.
 
 j) Revenue recognition:
 
 i. Revenue in respect of training services is recognized on rendering
 of services, only when it is reasonably certain that the ultimate
 collection will be made. The revenue from fixed time contract is
 recognized over the period of contracts. For services rendered through
 franchisees, only the Company''s share of revenue is recognized.
 
 ii.  Revenue in respect of sale of courseware and other materials is
 recognised on delivery of the courseware and other materials to the
 franchisees.
 
 iii.  Dividends and Interest income are accounted for when the right to
 receive dividend/interest is established.
 
 k) Provisions and contingent liabilities:
 
 The Company creates a provision when there is a present obligation as a
 result of a past event that probably requires 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. Where there is a possible obligation
 or a present obligation in respect of which the likelihood of outflow
 of resources is remote, no provision or disclosure is made.
 
 l) Lease:
 
 Leases where the lessor effectively retains substantially all the risks
 and benefits of ownership of the leased term, are classified as
 operating leases. Operating lease payments are recognized as an expense
 in the profit and loss account on a straight-line basis over the lease
 term.
 
 m) Impairment of assets:
 
 The Company assesses at each balance sheet date whether there is any
 indication that an asset may be impaired. If any such indication
 exists, the management estimates the recoverable amount of the asset.
 If such recoverable amount of the asset is less than its carrying
 amount, the carrying amount is reduced to its recoverable amount. 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 if 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.