NOTES TO THE ACCOUNTS:

(1) Segment Reporting:

The company is operating in Education & Training industry. Accordingly, these financial statements are reflective of the information required by the AS-17 for Education & Training segment.

(2) Related Party Disclosures:

In compliance of AS-18 issued by the ICAI on "Related Party Disclosures" issued by the ICAI, the details pertaining to related party disclosures are as follows:

Remuneration to Director and Key Management Personnel Rs. 6409106/-

(3) Deferred Tax Liability/Assets:

(I) Provision for Deferred Tax Assets as per AS-22, issued by the Institute. Income Tax is computed in accordance with AS-22. Accounting for taxes on income issued by ICAI. Tax expenses are accrued in the same period as the revenue and expenses to which they relate.

ii. Provision for current income tax is made on the tax liability payable on taxable income after considering tax allowances, deductions and exemptions determined in accordance with the prevailing tax laws. The difference between taxable income and the net profit or loss before tax for the period as per the financial statements are identified and the tax effect of the deferred tax asset or deferred tax liability is recorded for timing differences, i.e. difference that originate in one accounting period and reverse in another. The tax effect is calculated on accumulated timing differences at the end of the accounting period based on the effective tax rates that would apply in the years in which the timing differences are expected to reverse.

(4) In the opinion of Board of Directors, the balances of Sundry Debtors and Loans & Advances are considered good and fully recoverable, although on certain loans interest has not been charged.

(5) The cost of the Computer Software, web browser and portals have been recognized as an asset on the following assumptions:

i. the future economic benefits from these assets will flow to the company; and

ii. the cost of the asset is measured reliably.

Depreciation on computer software, web browsers and portals have not been charged during the year as the same have not been used during the year for any income earning activities.

(6) Contingent Liability

Income tax demand of Rs. 60,50,564/- and penalty of Rs. 60,50,150/- for the A.Y. 1996-97 & Rs. 3,04,364/for the A.Y. 2004-2005 against which the company has filed an Appeal with ITAT, New Delhi, the Company is doing efforts for the early disposal of the case.

(I) Previous year figures have been regrouped and rearranged, wherever found necessary, to confirm to the Current year's classification.