1. Basis of Accounting
 
 The financial statements are prepared in accordance with Indian
 Generally Accepted Accounting principles (“GAAP”) under the historical
 cost convention on an accrual basis. GAAP comprises mandatory
 Accounting Standards issued by the Institute of Chartered Accountants
 of India (“ICAI”), the provisions of the Companies Act, 1956, and
 guidelines issued by the Securities and Exchange Board of India.
 Accounting policies have been consistently applied except where a newly
 issued accounting standard is initially adopted or a revision to an
 existing accounting standard requires a change in the accounting policy
 hitherto in use.  The Management evaluates all recently issued or
 revised accounting standards on an ongoing basis.
 
 2. Use of Estimates
 
 The preparation of the financial statements in conformity with GAAP
 requires the management to make estimates and assumptions that affect
 the reported balances of assets and liabilities and disclosures
 relating to contingent assets and liabilities as at the date of the
 financial statements and reported amounts of income and expenses during
 the period. Although these estimates are based upon Managements best
 knowledge of current events and ections, actuals results could differ
 from these estimates.
 
 3. Valution-Fixed Assets and Inventory
 
 (a) Fixed assets are normally accounted for on cost basis including the
 cost of installation where incurred. Expenditure on regular staff,
 which might be occasionally engaged for installation work, is charged
 to revenue.
 
 (b) Inventory:- 
 
 (i) Stock of books are valued at cost based on First-in First- out
 method.
 
 (ii) Softwares under development & intended for sale and not ready for
 use before the year end, are valued at cost as Software Work-in-
 Progress.
 
 4. Depreciation and Amortisation
 
 (a) Normal Depreciation on all the fixed assets is provided on Straight
 Line Method at the rates prescribed in schedule -XIV to the Companies
 Act, 1956.
 
 (b) Depreciation on additions/ deletions to Fixed Assets is provided on
 prorata basis from/to date of addition/deletions.
 
 (c) In case of financial year consist of the year less/more than a
 normal year of 12 months then depreciation is provided for that
 particular year.
 
 (d) In case of courseware/software developed and capitalised, the same
 is written off over a period of 3 years, considering the estimated
 economic life of the product.
 
 5. Impairment of assets
 
 The carrying amount of assets are reviewed at each balance sheet date
 if there is any indication of impairment based on internal/external
 factors.  An imparment loss is recognised wherever the carrying amount
 of an asset exceeds its recoverable amount. The recoverable amount is
 the greater of the assets net selling price and value in use.
 
 6.  Investments
 
 Long-term Investments, are valued at their acquisition cost. Any
 decline in the value of said investment other than the temporary
 decline is recognised and charged to Profit & Loss Account.
 
 7. Revenue Recognition
 
 a.  (i) In case of own centres income from coaching fee is recognised
 to the extent of course/programme delievered to students.  Income from
 courseware is recognised on the basis of courseware supplied to the
 students/clients.
 
 (ii) In Case of domestic licence centres, the income is recognised on
 the basis of collections received from licencee against course fee.
 Income from courseware is recognised on the basis of courseware
 supplied to the licence centre.
 
 b.  Income from Technical Know How/ Licence Fees are recognised on the
 basis of Agreement/MOU entered subject to realisation of the income.
 
 c. In respect of Software Development/Products and Consultancy
 activities, the revenue is recognised on dispatch/ delivery of the
 concerned goods/ services by adopting percentage completion method
 wherever required.
 
 8.  Public Issue Expenses and Pre-Operative Expenses
 
 Public issue expenditure and pre-operative expenses incurred on further
 issue of Share Capital are written off over a period of ten years on
 prorata basis.
 
 9.  Foreign Currency Transactions
 
 Transactions in foreign currency are booked at pre-determined rate and
 all monetary assets and liabilities in foreign currency are restated at
 the year end.
 
 Gain /Loss arising out of fluctuations on realisation /payment or
 restatement, except those identifiable to acquisition of fixed assets &
 Investment are charged /credited to Profit & Loss Account.
 
 10. Employees /Retirement Benefits
 
 a. All employees of the Company are entitled to receive benefits under
 the Provident Fund, which is a defined contribution plan.
 
 b. In addition, some employees of the Company are covered under the
 employees’ state insurance schemes.
 
 c. The Company’s contributions to above schemes are expensed in the
 Profit and Loss Account.
 
 d. Liability on account of Gratuity and Leave Encashment of Employees
 is provided on the actuarial Valuation.
 
 11. Taxation
 
 Income tax expenses are accrued in accordance with Accounting Standard
 -22  Accounting for Taxes on Income, issued by The Institute of
 Chartered Accountants of India, which includes current taxes and
 deferred taxes.  Deferred income tax reflects the impact of current
 year timing difference between taxable income and accounting income for
 the year and reversal of timing differences of earlier years. Deferred
 tax assets are recognised only to extent, there is a reasonable
 certainty that sufficient future taxable income will be available. Such
 Deferred tax Assets and Liabilities are measured at each Balance Sheet
 date & the carrying value of the same are adjusted for recognising the
 change in the value of each such deferred tax Asset and Liability.
 
 12. Borrowing Cost
 
 Interest and other costs in connection with the borrowing of funds to
 the extent related/attributed to the acquisition/ construction of
 qualifying fixed assets are capitalized upto the date when such assets
 are ready for its intended use and other borrowing costs are charged to
 Profit & Loss Account.
 
 13. Provison and Contingencies
 
 The Company creates a provision when there is a present obligation as a
 result of past events 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 that probably will not require an outflow of resources or
 where a reliable estimate of the obligation can not be made. These are
 reviewed at each balance sheet date and adjusted to reflect the current
 best estimates.
 
 14. Earning per Share
 
 Basic earning per share (EPS) is calculated by dividing the net profit
 after tax for the year (including the post-tax effect of extraordinary
 items, if any) attributable to equity shareholders by the weighted
 average number of equity shares outstanding during the period.
 
 For the purpose of calculating diluted earnings per share, the net
 profit or loss for the period attributable to equity shareholders by
 the weighted average number of equity shares outstanding during the
 period are adjusted for the effects of all dilutive potential equity
 shares.
 
 15. Cash Flow Statement
 
 Cash flows are reported using the indirect method, whereby 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, financing,
 and investing activities of the company are segregated.