1.  CONTINGENT LIABILITIES
 
 i.  Guarantees issued by bankers outstanding at the end of accounting
 year Rs. 21,075,362/- (Previous year Rs. 125,486,322/-).
 
 ii.  Letter of Credit issued by bankers on behalf of the Company
 outstanding at the end of accounting year Rs. 24,172,309/- (Previous
 year Nil).
 
 iii. Corporate Guarantee Rs. 621,600,000/- [USD 14 million (net of
 payment of USD 29.50 million)] given to ICICI Bank, Bahrain on behalf
 of NIIT (USA) Inc., USA (Previous year Rs. 944,470,800/- [USD 21
 million (net of payment of USD 22.5 million)]).
 
 iv. Corporate Guarantee Nil (Previous year Rs. 682,552,000/- [GBP 10
 million (loan outstanding GBP 9.40 million)]) given to ICICI Bank UK
 PLC, UK on behalf of NIIT (USA) Inc., USA.
 
 v. Corporate Guarantee Rs. 732,600,000/- [USD 16.50 million (loan
 outstanding USD 15 million)] (Previous year Nil) given to ICICI Bank UK
 PLC, UK on behalf of NIIT (USA) Inc.,USA.
 
 vi. Stand by Letter of Credit of Rs. 244,200,000/- [USD 5.50 million]
 (Previous year Rs. 247,361,400/- [USD 5.50 million]) from BNP Paribas
 in favor of Bank of West, USA on behalf of Element K Corporation, USA.
 
 vii. Security given to Indian Overseas Bank against Working Capital
 limits on behalf of Evolv Services Limited Rs. 10,000,000/- (Previous
 year Rs. 10,000,000/-) [Amount outstanding at year end Rs. 9,772,649/-
 (Previous year Rs. 9,472,172/-)], NIIT Institute of Finance Banking and
 Insurance Training Limited Rs.10,000,000/- (Previous year
 Rs.10,000,000/-) [Amount Outstanding at year end Nil (Previous year
 Nil)] and Hole-in-the-Wall Education Limited of Rs.10,000,000/-
 (Previous year Rs.7,000,000/-) [Amount Outstanding at year end Rs.
 8,007,721/- (Previous year Rs. 6,443,889/-)].
 
 viii. Claims against the Company not acknowledged as debts Rs.
 14,200,000/- (Previous year Rs. 13,200,000/-)
 
 ix. Andhra Pradesh works contract tax Rs. 91,836,398/- (Previous year
 Rs. 80,137,287/-). Management does not foresee any financial
 implication based on the advice of the legal consultant.
 
 x. Service Tax demand amounting to Rs. 104.89 Lacs (Previous year Rs.
 104.89 Lacs) and equal amount of penalty i.e. Rs. 104.89 Lacs (Previous
 year Rs. 104.89 Lacs) raised by Commissioner of Service Tax, Delhi.
 Management does not foresee any financial implication based on the
 advice of the legal consultant.
 
 xi. Income Tax demand for Rs. 1,576 Lacs (Previous year Rs. 721 Lacs).
 Management does not foresee any financial implication based on the
 advice of the legal consultant.
 
 xii. Service Tax liability on rental of immovable properties amounting
 to Rs. 12,068,234/- (Previous year Nil).
 
 2.  During the previous financial year, the Company had received Show
 Cause Notices u/s 263 of the Income Tax Act, 1961 issued by the
 Commissioner of Income Tax for the Assessment years 1999-00 to 2005-06
 ,who later issued Orders directing the Assessing Officer for
 re-assessment on certain items. The quantum of Income Tax demand, if
 any, has neither been quantified nor ascertained and thus,
 indeterminable at this stage. These orders have been challenged by the
 Company in the Income Tax Appellate Tribunal, which has directed the
 Income Tax department to produce all records related to assessment for
 perusal of the Tribunal. Against the order of the Tribunal, the Income
 Tax Department has preferred writ petition in the High Court. The
 matter is under adjudication in the High Court. Based on legal opinion,
 the Company is confident that appeals so filed shall be decided in its
 favour.
 
 3.  Estimated amount of contracts remaining to be executed on capital
 account (net of advances) not provided for Rs. 281,987,505/- (Previous
 year Rs. 15,804,313/-).
 
 4.  Certain common resources are shared by the Company and NIIT
 Technologies Limited (NTL). This resulted in the Company recovering Rs.
 10,706,565/- (Previous year Rs. 3,856,927/-) from NTL and NTL
 recovering Rs. 9,393,306/- (Previous year Rs. 9,598,975/- ) from the
 Company which have been included/ netted off against relevant head in
 the Profit and Loss Account viz., Personnel, Administration & Others
 and Marketing expenses.
 
 5.  DETAILS OF SECURITY GIVEN AGAINST LOANS
 
 i). Working Capital Limits of the Company and sub limits of certain
 subsidiaries are secured by hypothecation of stocks and book debts of
 the Company. The Company and the subsidiaries have utilised the cash
 credit (fund-based) limits to the extent of Nil (Previous year Rs.
 64,131,867/-) and Rs. 17,780,370/- (Previous year Rs. 15,916,061/-)
 respectively as at year end.
 
 ii). 12% Non Convertible Debentures issued to Life Insurance
 Corporation of India and 11.25% Non Convertible Debentures issued to
 Indian Overseas Bank are secured by way of first charge on pari-passu
 basis on the immovable and movable fixed assets of the Company. The
 Company had maintained 100 % asset cover sufficient to discharge the
 principal amount at all times during the financial year 2010-11 for
 these debentures.
 
 iii). Rupee Term Loan is secured by exclusive charge by hypothecation
 of specific movable fixed assets and receivables/ deferred recoverable
 relating to specific school projects.
 
 iv). Vehicle loans from banks are secured by way of hypothecation of
 the vehicles financed.
 
 6.  Interest received is gross of tax deducted at source of Rs.
 8,359,983/- (Previous year Rs. 13,902,514/-).
 
 7.  Expenses during the year are net of recoveries towards common
 services from domestic subsidiaries amounting to Rs. 14,989,137/-
 (Previous year Rs. 14,635,499/-).
 
 8  The Course Execution Charges include payments to licensees,
 business partners, channel partners and other agencies for execution of
 education and training business.
 
 9. DERIVATIVE INSTRUMENTS
 
 During the Current year, loss of Nil (Previous year Rs. 88.82 Lacs) has
 been debited to Revenue account on maturity of the designated forward
 covers.
 
 b.  Mark to Market gain/ (loss) on undesignated forward covers
 amounting to Nil [Previous year Rs. 3.35 Lacs] has been recognised as
 gain/ (loss) on exchange fluctuation in the Profit and Loss Account.
 
 10. EMPLOYEES STOCK OPTION SCHEME
 
 During the year 2005-06, the Company had established NIIT Employee
 Stock Option Plan 2005 “ESOP 2005” and the same was approved at the
 General Meeting of the Company held on May 18, 2005. The plan was set
 up so as to offer and grant, for the benefit of employees (excluding
 promoters) of the Company, who are eligible under “Securities and
 Exchange Board of India (SEBI) (Employee Stock Option Scheme and
 Employee Stock Purchase Scheme) Guidelines, 1999”, options of the
 Company in aggregate up to 1,925,000 options under ESOP 2005, in one or
 more tranches, and on such terms and conditions as may be fixed or
 determined by the Board, in accordance with the provisions of law or
 guidelines issued by the relevant authorities in this regard. As per
 the plan, each option is exercisable for one equity share of face value
 of Rs. 2/- each (Rs. 10/- each pre bonus and split) fully paid up on
 payment to the Company, for such shares, at a price to be determined in
 accordance with ESOP 2005. ESOP information is given for the number of
 shares after sub-division and Bonus issue
 
 11. EMPLOYEE BENEFITS
 
 A) Defined Contribution Plans
 
 Company makes contribution towards Provident Fund, Superannuation Fund
 and Pension Scheme to the defined contribution plans for eligible
 employees.
 
 B) Defined Benefit Plans I.  Provident Fund
 
 In respect of Companys obligation towards guaranteed returns on
 Provident Fund Contributions made to the NIIT Limited Employees
 Provident Fund Trust, as the overall interest earnings and cumulative
 surplus are more than the statutory requirements, there is no liability
 of employer for the year ended March 31, 2011. Therefore, no additional
 provision for the year has been recommended by the actuary.
 
 vi) Investment details of Plan Assets:
 
 The plan assets are maintained with Life Insurance Corporation of India
 Gratuity Scheme. The details of investment maintained by Life Insurance
 Corporation of India are not available with the Company and have not
 been disclosed.
 
 The expected return on plan assets is determined considering several
 applicable factors mainly the composition of plan assets held, assessed
 risk of asset management, historical result of the return on plan
 assets.
 
 C) The Company has accounted for unclaimed employee related
 reimbursements in respect of earlier years, aggregating to Nil
 (Previous year Rs. 327.23 Lacs), based on maximum possible liability
 payable by the Company in this respect.
 
 12. DETAILS RELATING TO OPENING STOCK, PURCHASES, REVENUE AND CLOSING
 STOCK
 
 a) The Company is engaged inter-alia in the production and development
 of computer software and rendering services. The production and sale of
 such software cannot be expressed in generic unit. Hence, it is not
 possible to give quantitative details as required under paragraph 3 of
 Part II of Schedule VI of the Companies Act, 1956.
 
 The Company deals in a number of software and hardware items whose cost
 and selling price vary for different items. The revenue from the
 different kind of software and their related costs individually
 constitute less than 10% of the turnover and costs of the Company
 respectively. Accordingly, no quantitative information relating to
 software and hardware traded is being given.
 
 ii) Education and training material:
 
 * Sales quantity has been adjusted for shortage/ excesses during the
 year.
 
 **Includes Inventory in electronic form.
 
 Quantitative information in respect of technical information and
 reference material is not being given separately as the related revenue
 and costs are less than 10% of total revenue and costs of the Company.
 
 c) Revenue includes income from services rendered Rs. 3,190,212,261/-
 (Previous year Rs. 2,976,597,336/-).
 
 13. RELATED PARTY TRANSACTIONS AS PER ACCOUNTING STANDARD 18 A. Related
 party relationship where control exists:
 
 Subsidiaries
 
 1.  NIIT Online Learning Limited
 
 2.  Scantech Evaluation Services Limited
 
 3.  Hole-in-the-Wall Education Limited
 
 4.  NEO Multimedia Limited (Formerly known as NIIT Multimedia Limited)
     (upto March 30, 2011)
 
 5.  NIIT Institute of Finance Banking and Insurance Training Limited
 
 6.  NIIT Institute of Process Excellence Limited
 
 7.  Evolv Services Limited
 
 8.  NIIT Limited, UK
 
 9.  NIIT Antilles N V, Netherlands Antilles
 
 10. NIIT Malaysia Sdn. Bhd, Malaysia
 
 11. NIIT GC Limited (formerly NIIT TVE Limited), Mauritius
 
 12. NIIT China (Shanghai) Limited, Shanghai
 
 13. NIIT Wuxi Service Outsourcing Training School
 
 14. Chongqing NIIT Education Consulting Limited, China
 
 15. Wuxi NIIT Information Technology Consulting Limited
 
 16. Changzhou NIIT Information Technology Consulting Limited
 
 17. Su Zhou NIIT Information Technology Consulting Limited (w.e.f.
     April 28, 2010)
 
 18. PCEC NIIT Institute of Information Technology, Shanghai (Liquidated
     in April, 2010)
 
 19. NIIT (USA) Inc., USA
 
 20. NIIT Ventures Inc., USA
 
 21. Element K Corporation, USA
 
 22. Element K India Private Limited, India
 
 23. Element K (UK) Limited, United Kingdom
 
 24. Element K Inc., Canada
 
 25. PT NIIT Indonesia, Indonesia (Under liquidation)
 
 B.  Other related parties with whom the Company has transacted
 
 a) Associates (Parties in which Company has substantial interest)
 
 1.  NIIT Technologies Limited
 
 2.  NIIT GIS Limited
 
 3.  NIIT Smart Serve Limited
 
 b)  Key Managerial Personnel
 
 1.  Rajendra S Pawar (Chairman and Managing Director)
 
 2.  Vijay K Thadani (Chief Executive Officer and Whole-time Director)
 
 3.  P Rajendran (Chief Operating Officer and Whole-time Director)
 
 c)  Relatives of Key Managerial Personnel
 
 1.  Renuka Thadani (Wife of Vijay K Thadani)
 
 2.  Veena Oberoi (Sister of Vijay K Thadani)
 
 d)  Parties in which the Key Managerial Personnel of the Company are
     interested
  
 1.  NIIT Institute of Information Technology
 
 2.  NIIT Education Society
 
 3.  Pace Industries Private Limited
 
 4.  NIIT Network Services Limited
 
 Notes:
 
 1.  Previous year figures are given in parenthesis.
 
 2.  Includes Purchase of Goods from:
 
 - NIIT (USA) Inc. Rs. 194.94 Lacs (Previous year Rs. 158.10 Lacs )
 
 - Evolv Services Limited Rs. 53.96 Lacs (Previous year Nil )
 
 - Hole-in-the-Wall Education Limited Rs. 36.00 Lacs (Previous year Nil)
 
 3.  Includes Sale of Goods to:
 
 - NIIT Institute of Information Technology Rs. 28.66 Lacs (Previous
   year Rs. 24.59 Lacs )
 
 - NIIT Institute of Finance Banking and Insurance Training Limited Rs.
   15.38 Lacs (Previous year Nil)
 
 - NIIT Technologies Limited Rs. 18.90 Lacs (Previous year Nil)
 
 4.  Includes Purchase of Fixed Assets from:
 
 - NIIT (USA) Inc. Rs. 216.39 Lacs (Previous year Nil )
 
 - Evolv Services Limited Rs. 6.40 Lacs (Previous year Rs. 54.60 Lacs )
 
 - NIIT Technologies Limited Rs. 5.55 Lacs (Previous year Nil)
 
 5.  Includes Sale of Fixed Assets to:
 
 - NIIT Technologies Limited Rs. 0.62 Lacs (Previous year Nil)
 
 - NIIT Institute of Information Technology Rs. 41.90 Lacs (Previous
   year Nil )
 
 6.  Includes Rendering of Services to:
 
 - NIIT (USA) Inc. Rs. 4,469.35 Lacs (Previous year Rs. 3,305.32 Lacs )
 
 - NIIT Antilles N V, Netherlands Antilles Rs.1,866.37 Lacs (Previous
   year Rs.944.94 Lacs )
 
 - NIIT Limited, UK Rs. 386.06 Lacs (Previous year Rs. 329.35 Lacs )
 
 - NIIT Technologies Limited Rs. 262.90 Lacs (Previous year Rs. 54.47
   Lacs )
 
 - Evolv Services Limited Rs. 4.92 Lacs (Previous year Rs. 8.60 Lacs)
 
 - NIIT Institute of Finance Banking and Insurance Training Limited Rs.
   102.13 Lacs (Previous year Rs. 79.00 Lacs)
 
 7.  Includes Receiving of Services from:
 
 - NIIT (USA) Inc. Rs. 246.20 Lacs (Previous year Rs. 150.23 Lacs )
 
 - NIIT GIS Limited Rs. 3.73 Lacs (Previous year Rs. 5.94 Lacs)
 
 - NIIT Smart Serve Limited Rs. 205.53 Lacs (Previous year Rs. 75.35
   Lacs )
 
 - Evolv Services Limited Rs. 137.31 Lacs (Previous year Rs.133.30 Lacs)
 
 - NIIT Institute of Finance Banking and Insurance Training Limited Rs.
   104.85 Lacs (Previous year Rs. 57.81 Lacs)
 
 - NIIT Limited, UK Rs. 488.95 Lacs (Previous year Nil )
 
 8.  Includes Recovery of Expenses from:
 
 - Hole-in-the-Wall Education Limited Rs. 23.68 Lacs (Previous year Rs.
   17.70 Lacs)
 
 - NIIT (USA) Inc. Rs. 10.78 Lacs (Previous year Rs. 37.09 Lacs )
 
 - NIIT Institute of Finance Banking and Insurance Training Limited Rs.
   116.21 Lacs (Previous year Rs. 103.27 Lacs)
 
 - NIIT Technologies Limited Rs. 107.07 Lacs (Previous year Rs. 38.57
   Lacs )
 
 - NIIT GIS Limited Rs. 18.08 Lacs (Previous year Rs. 11.49 Lacs)
 
 - NIIT Institute of Information Technology Rs. 93.54 Lacs (Previous
   year Rs. 35.26 Lacs )
 
 - NIIT Institute of Process Excellence Limited Rs. 6.00 Lacs (Previous
   year Rs. 23.74 Lacs )
 
 - NIIT Limited, UK Nil (Previous year Rs. 2.09 Lacs )
 
 9.  Includes Recovery of Expenses by:
 
 - NIIT Technologies Limited Rs. 93.93 Lacs (Previous year Rs. 95.99
   Lacs )
 
 - NIIT (USA) Inc. Rs. 30.25 Lacs (Previous year Rs. 38.86 )
 
 10.  Represents Investments made in:
 
 - NEO Multimedia Limited Rs. 70.00 Lacs (Previous year Rs. 290.00 Lacs)
 
 - NIIT Institute of Finance Banking and Insurance Training Limited Nil
   (Previous year Rs. 405.00 Lacs )
 
 - Evolv Services Limited Nil (Previous year Rs.181.87 Lacs)
 
 - NIIT Institute of Process Excellence Limited Rs. 150.00 Lacs
   (Previous year Rs. 750.00 Lacs )
 
 11.  Loans Given relates to:
 
 - NIIT Institute of Finance Banking and Insurance Training Limited Nil
   (Previous year Rs. 125.00 Lacs)
 
 - NEO Multimedia Limited Rs. 32.00 Lacs (Previous year Nil)
 
 - NIIT (USA) Inc. Rs. 2,511.85 Lacs (Previous year Rs. 241.10 Lacs)
 
 - NIIT Institute of Information Technology Rs. 200.00 Lacs (Previous
   year Rs. 1,890.00 Lacs )
 
 - Evolv Services Limited Rs. 155.00 Lacs (Previous year Rs. 13.00 Lacs
   )
 
 12.  Loans Given Received Back relates to:
 
 - NIIT (USA) Inc. Rs. 2,158.88 Lacs (Previous year Rs. 3,361.40 Lacs)
 
 - NIIT Education Society Rs. 35.00 Lacs (Previous year Nil)
 
 - NIIT Institute of Information Technology Rs. 4,603.00 Lacs (Previous
   year Rs. 1,850.00 Lacs)
 
 - Evolv Services Limited Nil (Previous year Rs. 115.00 Lacs )
 
 13.  Loans/ Inter Corporate Deposits Taken from:
 
 - Scantech Evaluation Services Limited Rs. 1,155.00 Lacs (Previous year
   Rs. 980.00 Lacs)
 
 14.  Repayment of Loans/ Inter Corporate Deposits taken:
 
 - Scantech Evaluation Services Limited Rs. 915.00 Lacs (Previous year
   Rs. 916.00 Lacs)
 
 15.  Interest Income from:
 
 - NIIT (USA) Inc. Rs. 158.84 Lacs (Previous year Rs. 300.25 Lacs)
 
 - Hole-in-the-Wall Education Limited Rs. 43.44 Lacs (Previous year Rs.
   43.44 Lacs)
 
 - NEO Multimedia Limited Rs. 1.26 Lacs (Previous year Nil)
 
 - NIIT Education Society Rs. 0.55 Lacs (Previous year Rs. 2.80 Lacs)
 
 - Evolv Services Limited Rs. 1.23 Lacs (Previous year Rs. 10.93 Lacs )
 
 - NIIT Institute of Information Technology Rs. 496.32 Lacs (Previous
   year Rs 629.57 Lacs)
 
 - NIIT Institute of Finance Banking and Insurance Training Limited Rs.
   30.60 Lacs (Previous year Rs.  18.60 Lacs)
 
 16.  Interest Expenditure includes:
 
 - Scantech Evaluation Services Limited Rs. 116.88 Lacs (Previous year
   Rs. 127.70 Lacs )
 
 17.  Includes transactions for the year with:
 
 - Rajendra S Pawar Rs. 100.43 Lacs (Previous year Rs. 90.06 Lacs)
 
 - Vijay K Thadani Rs. 163.20 Lacs (Previous year Rs. 90.37 Lacs )
 
 - P Rajendran Rs. 108.38 Lacs (Previous year Rs. 126.85 Lacs )
 
 18.  Other Expenses includes:
 
 - Renuka Thadani Rs. 7.20 Lacs (Previous year Rs. 6.24 Lacs )
 
 - Veena Oberoi Rs. 4.32 Lacs (Previous year Rs. 4.32 Lacs )
 
 - Pace Industries Private Limited Rs. 4.32 Lacs (Previous year Rs. 4.32
   Lacs )
 
 - Donation to NIIT Institute of Information Technology Rs. 715.00 Lacs
   (Previous year Rs. 150.00 Lacs)
 
 19.  Other Income includes:
 
 - NIIT (USA) Inc. Rs. 67.77 Lacs (Previous year Rs. 67.96 Lacs)
 
 - NIIT Antilles N V, Netherlands Antilles Rs. 856.13 Lacs (Previous
   year Rs. 774.26 Lacs )
 
 - NIIT Institute of Finance Banking and Insurance Training Limited Rs.
   170.37 Lacs (Previous year Rs. 133.32 Lacs)
 
 - NIIT Institute of Information Technology Rs. 8.68 Lacs (Previous year
   Nil)
 
 - NIIT Institute of Process Excellence Limited Rs.78.88 Lacs (Previous
   year Rs. 42.19 Lacs )
 
 - NIIT Limited, UK Rs. 9.46 Lacs (Previous year Rs. 10.11 Lacs )
 
 - Hole-in-the-Wall Education Limited Rs. 10.14 Lacs (Previous year
   Rs.8.33 Lacs)
 
 20.  Dividend Income includes:
 
 - Scantech Evaluation Services Limited Rs. 832.44 Lacs (Previous year
   Rs. 782.89 Lacs)
 
 21.  Guarantees and Collaterals:
 
 - Element K Corporation, USA Nil (Previous year Rs. 1,124.37 Lacs)
 
 - NIIT Institute of Finance Banking and Insurance Training Limited Nil
   (Previous year Rs. 100.00 Lacs)
 
 - Hole-in-the-Wall Education Limited Rs. 30.00 Lacs (Previous year Rs.
   70.00 Lacs)
 
 - NIIT (USA) Inc. Rs. 7,512.10 Lacs (Previous year Rs. 6,825.52 Lacs)
 
 22.  Commitment to support NIIT Institute of Information Technology to
   meet the shortfall if any in their project.
 
 22. During the Previous year, the Company had disposed off its holding
 in Aesthetic Technologies Private Limited of 190,627 fully paid up
 Equity Shares of Rs. 10/- each for a consideration of Rs. 115,000/-. An
 equivalent amount of gain was recognised as the investment was fully
 provided for in the earlier years.
 
 23. During the year the Company has paid additional loan of Rs. 200
 lacs to NIIT Institute of Information Technology. Subsequent to the
 Bank withdrawing the subordination requirements on the loan, NIIT
 Institute of Information Technology has repaid total outstanding loan
 amounting to Rs. 4,603 Lacs during the year and there is no loan
 outstanding as on March 31, 2011.
 
 24. During the year, the Company has made further investment in the
 equity shares of Rs. 10 each in its subsidiary companies as follows:
 
 (i) Rs. 150 Lacs in NIIT Institute of Process Excellence Limited,
 
 (ii) Rs. 70 Lacs in NEO Multimedia Limited (Formerly known as NIIT
     Multimedia Limited)
 
 25. During the year, the Company has disposed off its complete holding
 of 10,950,000 fully paid up Equity Shares of Rs. 10/- each in its
 wholly owned subsidiary NEO Multimedia Limited (Formerly known as NIIT
 Multimedia Limited ) for a consideration of Rs. 317,584,207/- (Net of
 Expenses). The amount of Rs. 208,084,207/- has been recognised as
 Profit on Sale of Investment which has resulted in an increase in
 profit before tax during the year. After this disposal NEO Multimedia
 Limited ceases to be a subsidiary of the Company.
 
 26. During the year the company has contributed an amount of Rs. 720
 Lacs towards donations including Rs. 715 Lacs (Previous year Rs. 150
 Lacs) in the corpus of NIIT Institute of Information Technology, a
 society registered under the Societies Registration Act, 1860 which is
 within the overall limits approved by the shareholders. This amount has
 been as shown as an exceptional item in the Profit and Loss Account.
 
 27. During the Financial year, the Company has been granted approval
 for setting up unit in Special Economic Zone (‘SEZ). The Company has
 subsequently started the process of setting up its unit in SEZ, few
 employees have been recruited in the SEZ unit who are undergoing
 training. As at end of the financial year, no production or development
 activities have started in SEZ unit. Production, development and
 revenue generating activities are expected to start in the first
 quarter of Financial year 2011-12.
 
 29. The Company had acquired control in Evolv Services Limited
 (“Evolv”) as on January 15, 2008 and was also issued 359,780 warrants,
 each warrant entitles to acquire one share of Evolv Services Limited at
 an exercise price of Rs. 50.55 per share aggregating to Rs.
 18,186,879/-. During the Previous year, Company had exercised these
 warrants to acquire equal number of shares in the share capital of
 Evolv, this had resulted
 
 into a further increase in proportion of shareholding to 61.15%. The
 promoters of Evolv have an option to sell (“Put Option”) their
 remaining shareholding to NIIT Limited at the put option price
 determined by a price valuer as on the date of exercise of the put
 option. Similarly, NIIT Limited has the option to purchase (“Call
 Option”), 83% of the remaining shares of the Sellers shareholding at a
 call option price determined by price valuer as on the date of exercise
 of the call option.
 
 30. The Company internally develops software tools, platforms and
 content/ courseware. The management estimates that this would result in
 enhanced productivity and offer more technology based learning
 products/ solutions to the customers in future. The Company is
 confident of its ability to generate future economic benefits out of
 the abovementioned assets. The costs incurred during the year towards
 the development are as follows:
 
 31. The Companys wholly owned domestic subsidiary Scantech Evaluation
 Services Limited has declared dividend amounting to Rs. 832.44 lacs
 (Previous year Rs. 782.89 Lacs) in respect of which dividend
 distribution tax would be paid by the subsidiary. In terms of
 provisions of sub-section 1A of section 115O of the Income Tax Act
 1961, dividend distribution tax payable by the Company, is net of the
 dividend distribution tax to be paid by the subsidiary company
 amounting to Rs. 135.04 lacs (Previous year Rs. 133.05 lacs).
 
 32. SEGMENT INFORMATION
 
 Primary Segment Information – Business Segment
 
 The sub businesses are fully aligned to global learning business of the
 Company and the same are being viewed by the management as a single
 primary segment, i.e. learning business segment.
 
 Secondary Segment Information – Geographical
 
 33. TAXATION:
 
 (a) Upon finalisation of Income Tax Return of Assessment year 2010-11
 an amount of Rs. 31.54 Lacs (Net) has been charged during the year.
 
 (b) During the year the Company has provided for an amount of Rs. 15
 Lacs pertaining to Tax Payable as per Norwegian Tax Laws and a similar
 amount has been reduced from the Tax Expense as the same shall be
 claimed as a relief under section 90 of the Indian Income Tax Act,
 1961.
 
 i.  Deferred Tax Assets and Liabilities are being offset as they relate
 to taxes on income levied by the same governing taxation laws.
 
 ii.  Deferred Ta x Asset on Long term capital loss has not been
 considered in absence of virtual certainty of availability of Long term
 capital gains.
 
 34. a) Movement of Provision for Doubtful Debts
 
 b) Certain overdue debtors balances aggregating to Rs. 6,768.29 Lacs
 (Previous year Rs.1,509.10 Lacs) relating to government customers are
 not provided for based on confirmations/ acknowledgment for services
 rendered, with the Company. Subsequent to the year end the Company has
 received an amount of Rs. 2,473.53 Lacs out of the above balance. The
 management is taking appropriate action for recovery of the amounts and
 is confident of recovery of the same.
 
 36. LEASES
 
 a) Operating Leases
 
 ii.  All other significant operating leases entered into by the Company
 after March 31, 2001, are cancelable on giving a notice of 1 to 6
 months.
 
 * Includes payment in respect of premises for office and employee
 accommodation
 
 ** Includes payment in respect of computers, printers and
 other equipments
 
 b) Finance Leases
 
 i.  Assets acquired under finance lease comprise of Plant & Machinery,
 Furniture & Fixtures and Software.  There are no exceptional/
 restrictive covenants in the lease  agreements.
 
 38. Previous year figures have been regrouped/ recast to conform to
 Current year classifications.