These financial statements are prepared on an accrual basis, under
 historical cost convention and in compliance in all material aspects
 with the applicable accounting principles in India, the applicable
 accounting standards notified under section 211(3C) of the Companies
 Act, 1956 and the relevant provisions of the Companies Act, 1956. The
 significant accounting policies adopted by the Company are detailed
 below:
 
 i) Fixed Assets, Depreciation and Amortisation
 
 Fixed Assets are stated at acquisition cost except where they are taken
 over pursuant to an acquisition at a consolidated price. Individual
 fixed assets taken over pursuant to acquisition are recorded at their
 fair value on the date of acquisition based on valuation carried out by
 independent valuers.
 
 Expenses incurred on internal development of educational content and
 products are capitalised either individually or as a knowledge bank in
 the form of software, once their technical feasibility and ability to
 generate future economic benefits is established in accordance with the
 requirements of Accounting Standard 26, “Intangible Assets” as notified
 under section 211(3C) of the Companies Act, 1956. Expenses incurred
 during the research phase till the establishment of commercial
 feasibility is charged to the Profit and Loss Account.
 
 Fixed Assets purchased for utilization in implementing certain
 contractual obligations with the customers under a project are
 depreciated over the period of the contract.
 
 Further, educational content, computer system and software are
 technically evaluated each year for their useful economic life and the
 unamortised depreciable amount of the asset is charged to Profit and
 Loss Account as depreciation/ amortisation over their revised remaining
 useful life.
 
 ii) Impairment of Assets
 
 All assets other than inventories, investments and deferred tax asset,
 are reviewed for impairment, wherever events or changes in
 circumstances indicate that the carrying amount may not be recoverable.
 Assets whose carrying value exceeds their recoverable amount are
 written down to the recoverable amount.
 
 iii) Investments
 
 Long-term investments are valued at their acquisition cost. Any decline
 in the value of the said investment, other than a temporary decline, is
 recognised and charged to Profit and Loss Account. Short-term
 investments are carried at cost or market value, whichever is lower.
 
 iv) Inventory Valuation – Finished Goods
 
 Inventories are valued at lower of cost or net realisable value. Cost
 is determined using weighted average method and includes applicable
 costs incurred in bringing inventories to their present location and
 condition.
 
 v) Revenue Recognition
 
 The revenue in respect of sale of courseware, technical information and
 reference material and other goods are recognised on dispatch/ delivery
 of the material to the customer whereas the revenue from the tuition
 activity/ training is recognised over the period of the course
 programmes or as per the terms of agreement, as the case may be.
 
 The revenue from time and material contracts is recognised on a man
 month basis. In respect of fixed price contracts, including certain
 contracts requiring significant usage of contents capitalized as
 education software relating to courseware and products (Intellectual
 Property Rights), revenue is recognised based on the technical
 evaluation of utilization of courseware and products and as per the
 proportionate completion method. The foreseeable losses on completion
 of contract, if any, are provided for.
 
 The Company undertakes fixed price projects for supply/
 installation/maintenance of technology equipment & infrastructure set-
 up, providing educational product and educational services. Revenue
 from initial project set up activities & development of products under
 such contracts is recognised under proportionate completion method. The
 revenue in such contracts from sale of technology equipments is
 recognised on delivery of the technology equipment when substantial
 risks and rewards of ownership in such technology equipment pass to the
 customer based on contractual terms of the respective contracts and in
 respect of technology equipments, which are not sold, the revenue from
 the same along with the revenue from educational services is recognised
 over the contracted period of service. Deferred Revenue represents
 unamortised amounts billed to customers in advance for products,
 services or subscriptions.
 
 Dividend income is recognised when the right to receive dividend is
 established. Interest income is recognised on accrual basis.
 
 In respect of sale and lease back transactions, revenue is recognised
 on delivery of the product. Gain on sale on such transactions is
 recognised in the Profit and Loss Account over the lease period of the
 respective product.
 
 vi) Employee Benefits Gratuity
 
 NIIT provides for gratuity, a defined benefit retirement plan (the
 “Gratuity Plan”) covering eligible employees in accordance with the
 Payment of Gratuity Act, 1972. The Gratuity Plan provides a lump sum
 payment to vested employees at retirement, death, incapacitation or
 termination of employment, of an amount based on the respective
 employees salary and the tenure of employment. Companys liability is
 actuarially determined at the end of the year and any shortfall in the
 fund size maintained by the Trust set up by the Company with Life
 Insurance Corporation of India is additionally provided for.
 
 Actuarial losses/ gains are charged/ credited to the Profit and Loss
 Account in the year in which such losses/ gains arise.
 
 Compensated Absences
 
 Liability in respect of compensated absences is provided both for
 encashable leave and those expected to be availed. The Company has
 defined benefit plans for compensated absences for employees, the
 liability for which is determined on the basis of an actuarial
 valuation at the end of the year. Any gain or loss arising out of such
 valuation is recognised in the Profit and Loss Account.
 
 Superannuation
 
 The Company makes defined contribution to the Trust established for the
 purpose by the Company towards superannuation fund maintained with Life
 Insurance Corporation of India. Contribution made during the year is
 charged to Profit and Loss Account.
 
 Provident Fund
 
 The Company makes contribution to the “NIIT LIMITED EMPLOYEES
 PROVIDENT FUND TRUST”, which is a defined benefit plan to the extent
 that the Company has an obligation to make good the shortfall, if any,
 between the return from the investments of the trust and the notified
 interest rate. The Companys obligation in this regard is actuarially
 determined and provided for if the circumstances indicate that the
 Trust may not be able to generate adequate returns to cover the
 interest rates notified by the Government.  The Companys contribution
 towards Provident Fund is charged to Profit and Loss Account.
 
 Pension Fund
 
 The Company makes defined contribution to a government administered
 pension fund on behalf of its employees. The Companys contribution
 towards Employee Pension Scheme is charged to Profit and Loss Account.
 
 vii) Employees Stock Option Plan (ESOP)
 
 Equity settled stock options granted under “NIIT Employee Stock Option
 Plan 2005” are accounted for as per the accounting treatment prescribed
 by Employee Stock Option Scheme and Employee Stock Purchase Guidelines,
 1999, issued by Securities and Exchange Board of India, whereby the
 intrinsic value of the option being excess of market value of the
 underlying share immediately prior to date of grant over its exercise
 price is recognised as deferred employee compensation with a credit to
 employee stock option 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 options that lapse are
 reversed by a credit to employee compensation expense, equal to the
 amortised portion of value of lapsed portion and credit to deferred
 employee compensation expense equal to the un-amortised portion. The
 balance in employee stock option outstanding account, net of any
 un-amortised deferred employee compensation, is shown separately as
 part of Shareholders Funds.
 
 viii) Foreign Currency Transactions
 
 Transactions in foreign currency are booked at standard rates
 determined periodically which approximates the actual rates, and all
 monetary assets and liabilities in foreign currency is restated at the
 end of accounting period. Gain/ Loss arising out of fluctuations on
 realisation/ payment or restatement is charged/ credited to the Profit
 and Loss Account.
 
 Foreign currency assets/ liabilities covered by forward contracts are
 stated at the forward contract rate and difference between the forward
 rate and the exchange rate at the inception of the forward contract are
 recognised to the Profit and Loss Account over the life of the
 contract, except to the extent on which accounting policy on derivative
 instruments and hedge accounting as detailed in (ix) below and further
 explained in note 10 below.
 
 ix) Derivative Instruments and Hedge Accounting
 
 In accordance with its Risk management policies and procedures, the
 company uses derivative instruments such as foreign currency forward
 contracts to hedge its risks associated with foreign currency
 fluctuations relating to certain firm commitments and highly probable
 forecasted transactions. The derivatives that qualify for hedge
 accounting and designated as cash flow hedges are initially measured at
 fair value & are remeasured at a subsequent reporting date and the
 changes in the fair value of the derivatives i.e.  gain or loss (net of
 tax impact) is recognised directly in Shareholders Funds under hedging
 reserve to the extent considered highly effective. Gain or loss on
 derivative instruments that either does not qualify for hedge
 accounting or not designated as cash flow hedges or designated cash
 flow hedges to the extent considered ineffective are recognised in the
 Profit and Loss Account.
 
 Hedge accounting is discontinued when the hedging instrument expires,
 sold, terminated, or exercised, or no longer qualifies for hedge
 accounting. The cumulative gain or loss on the hedging instrument
 recognised in Shareholders Funds under hedging reserve is retained
 there until the forecasted transaction occurs subsequent to which the
 same is adjusted against the related transaction in the Profit and Loss
 Account. If a hedged transaction is no longer expected to occur, the
 net cumulative gain or loss recognised in Shareholders Funds is
 transferred to Profit and Loss Account in the same period.
 
 x) Leases
 
 The Company has taken assets, vehicles as well as premises on lease.
 Lease rental in respect of operating lease arrangements are charged to
 expense on a straight line basis as per the terms of the related
 agreement. Finance lease transactions are considered as financing
 arrangements in accordance with Accounting Standard 19 and the leased
 asset is capitalized at an amount equal to the present value of future
 lease payments and a corresponding amount is recognised as a liability.
 The lease payments made are apportioned between finance charge and
 reduction of outstanding liability in relation to the leased asset.
 
 xi) Borrowing Cost
 
 Borrowing costs are recognised in the Profit and Loss Account for the
 period in which they are incurred except where the cost is incurred
 during the construction of an asset that takes a substantial period to
 get ready for its intended use, in which case, it is capitalised.
 
 xii) Taxation
 
 Tax expense, comprising of both current tax and deferred tax is
 included in determining the net results for the year. Deferred Tax
 reflects the effect of timing differences between the assets and
 liabilities recognised for financial reporting purposes and the amounts
 that are recognised for current tax purposes. As a matter of prudence,
 deferred tax assets are recognised and carried forward only to the
 extent, there is reasonable/ virtual certainty that sufficient future
 taxable income will be available against which such deferred tax assets
 can be realised. Current Tax is determined based on the provisions of
 Income Tax Act, 1961. Minimum Alternate Tax (MAT) paid in excess of
 normal income tax is recognised as asset (MAT Credit entitlement) only
 to the extent, there is reasonable certainty that company shall be
 liable to pay tax as per the normal provisions of the Act in future.
 MAT Credit is utilised in the year when normal income tax is higher
 than the Minimum Alternate Tax (MAT).
 
 xiii) Provisions and Contingencies
 
 The Company creates a provision when there is 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 obligation. A
 disclosure for a contingent liability is made when there is a possible
 obligation or a present obligation that probably will not require an
 outflow of resources or where a reliable estimate of the obligation
 cannot be made.
 
 Disclosure of show cause notices are made on merits of the matters
 where management foresees possibilities of outflow of resources.
 
 xiv) Earnings Per Share
 
 The earnings considered in ascertaining the Companys Earnings per
 share (‘EPS) comprises the Net Profit after Tax. The number of shares
 used in computing the Basic EPS is the weighted average number of
 shares outstanding during the year. The Diluted EPS is calculated on
 the same basis as Basic EPS, after adjusting for the effects of
 potential Dilutive Equity Shares.