M. ANANDAM & co.CHARTERED ACCOUNTANTS

AUDITORS' REPORT

ToThe Members ofMIs. NATIONAL INSTITUTE FOR SMART GOVERNMENTHyderabad

1. We have audited the attached Balance Sheet of MIs NATIONAL INSTITUTE FORSMARTGOVERNMENTas at 31st March,2009and also the Incomeand ExpenditureAccount of the Company for the year ended on that date annexed thereto. These financialstatements are the responsibility of the Company's management. Our responsibility is toexpress an opinion on these financial statements based on our audit.

2. We conducted our audit in accordance with auditing standards generally accepted inIndia. Those Standards require that we plan and perform the audit to obtain reasonableassurance about whether the financial statements are free of material misstatement. Anaudit includes examining, on a test basis, evidence supporting the amounts anddisclosures in the financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well as evaluating theoverall financial statement presentation. We believe that our audit provides a reasonablebasis for our opinion.

3. We report that

a. We have obtained all the information and explanation, which to the best of ourknowledge and belief were necessary for the purpose of our audit.

b. In our opinion, proper books of accounts as required by law have been kept by thecompany, so far as it appears from our examination of the books.

c. The Balance Sheet and Income & Expenditure account referred to in this reportare in agreement with the books of account maintained by the company.

d. In our opinion, Balance Sheet and Income & Expenditure account dealt with bythis report complies with the Accounting Standards referred to in sub-section (3C)of Section 211 of the Companies Act, 1956.

e. On the basis of written representations received from the directors, as on 31st

March, 2009 and taken on record by the Board of Directors, we report that noneof the directorsis disqualifiedas on 31st March2009 from being appointedas adirector in terms of clause (g) of sub-section (1) of section 274 of the CompaniesAct, 1956.

.~"'~

.

'" .:::: ,. ».),.NDA'1-1 :\,

/'~~"cf

~!,/ ~/' .('" ""/ 0

~%\SfI~l;;~~).~.. ~ . ,~~~~EC 4cCO\>~'

~~

7 'A', SURYATOWERS, SARDAR PATELROAD, SECUNDERABAD -500 003.PHONE: 27812377,27812034,FAX:27812091URL: www.anandam.in

f. In our opinion, and to the best of our information and according to theexplanations given to us, the said accounts give the information required by theCompanies Act, 1956, in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India:

i) in the case of Balance Sheet, of the state of affairs of the Company as at31st March, 2009; and

ii) in the case of Income and Expenditure Account, of the Surplus of theCompany for the year ended on that date.

Place: HyderabadDate: 23.09.2009

For M.Anandam & Co.,Chartered Accountants

~M.V. Ranganath

Partner .

M.No.28031

~

M. ANANDAM & co.CHARTERED ACCOUNTANTS

FORM NO. lOB

[Seerule17B]

Audit report under section 12A(b) of the Income-tax Act, 1961, in the case of

charitable or religious trusts or institutions

*1/ We have examined the balance sheet of MlS.National Institute For Smart Government, 1st Floor,Astra Towers, ~ CII(Green Business Center) Kondapur, Hitech City, Hyderabd as at 31st March2009 and the income and expenditure account for the year ended on that date which are in agreementwith the books of account maintained by the said company

*1/ We have obtained all the information and explanations which to the best of *my / our knowledgeand belief were necessary for the purposes of the audit. In *my / our opinion, proper books of accounthave been kept at the registered office of the above-named company visited by *me / us so far asappears from *my / our examination of the books.

In *my / our opinion and to the best of *my / our information, and according to information given to*me / us, the said accounts give a true and fair view.

(i) in the case of the balance sheet, of the state of affairs of the above named company asat 31st March 2009, and

(ii) in the case of the Income and Expenditure account, of the excess of income' overexpenditure of its accounting year ending on 31st March 2009

The prescribed particulars are annexed hereto.

Place: Secunderabad

Date: 23.09.2009

7 'A', SURYATOWERS, SARDAR PATELROAD, SECUNDERABAD -500 003.PHONE: 27812377, 27812034, FAX: 27812091 URL: www.anandam.in

M. Anandam Co.,Chartered Accountants

ANNEXURE

STATEMENT OF PARTICULARS

1.APPLICATION OF INCOME FOR CHARITABLE OR RELIGIOUS PURPOSES

1 Amount of income of the previous year applied to charitable / to religiouspurposes in India during that year Rs 20,61,20,468

2 Whether the trust / institution* has exercised the option under clause (2) of the

Explanation to section 11(1)7 If so, the details of the amount of income deemed to

have been applied to charitable or religious purposes in India during the previous

year. --N.A.--

3 Amount of income accumulated or set apart* / finally set apart for application to

charitable or religious purposes, to the extent it does not exceed 15 per cent of the

income derived from property held under trust wholly* / inpart only for such

purposes. Rs 2,02,16,402

4 Amount of income eligible for exemption under section 11(1)(c) (Give details)--NIL --

5 Amount of income, in addition to the amount referred to in item 3 above,

accumulated or set apart for specified purposes under section 11(2). --NIL--

6 Whether the amount of income mentioned in item 5 above has been invested or

deposited in the manner laid down in section 11(2)(b) ? If so, the details thereof Yes in scheduledbanks

7 Whether any part of the income in respect of which an option was exercised under

clause (2) of the Explanation to section 11(1) in any earlier year is deemed to be

income of the previous year under section l1(IB)? If so, the details thereof--N.A.--

8 Whether, during the previous year, any part of income accumulated or set apart for

specified purposes under section 11(2) in any earlier year --(a) has been applied for purposes other than charitable or religious

purposes or has ceased to be accumulated or set apart for applicationthereto, or

has ceased to remain invested in any security referred to in section

11(2)(b) (i) or deposited in any account referred to in section 11(2)(b)(ii)or section 11(2)(b)(iii), or

has not been utilised for purposes for which it was accumulated or set

apart during the period for which it was to be accumulated or set apart,or in the year immediately following the expiry thereof? If so, the detailsthereof

--No --

(b)

--No--(c)

-- No --

II. APPLICATION OR USE OF INCOME OR PROPERTYFOR THE BENEFIT OF PERSONS REFERRED

TO IN SECTION 13(3)

1 Whether any part of the income or property of the *trust / institution was lent, orcontinues to be lent, in the previous year to any person referred to in section 13(3)(hereinafter referred to in this Annexure as such person)? If so, give details of the

2 Whether any land, building or other property of the *trust / institution was made,or continued to be made, available for the use of any such person during theprevious year? If so, give details of the property and the amount of rent orcompensation charge

3 Whether any payment was made to any such person during the previous year byway of salary, allowance or otherwise? If so, give details

4 Whether the services of the *trust / institution were made available to any suchperson during the previous year? If so, give details thereof together withremuneration or compensation received, if any

5 Whether any share, security or other property was purchased by or on behalf of the*trust / institution during the previous year from any such person? If so, givedetails thereof together with the consideration paid

6 Whether any share, security or other property was sold by or on behalf of the *trust/ institution during the previous year to any such person? If so, give details thereoftogether with the consideration received

7 Whether any income or property of the *trust / institution was diverted during theprevious year in favour of any such person? If so, give details thereof together withthe amount of income or value of property so diverted

8 Whether the income or property of the *trust / institution was used or appliedduring the previous year for the benefit of any such person in any other manner? Ifso, give details

M. Anandam Co.,Chartered Accountants

-- No --

-- No --

-- Nil--

-- No --

-- No --

-- No --

-- No --

-- No --

M. Anandam Co.,Chartered Accountants

III. INVESTMENTS HELD AT ANY TIME DURING THE PREVIOUS YEAR(S) INCONCERNS IN WHICH PERSONS REFERRED TO IN SECTION 13(3)

HAVE A SUBSTANTIAL INTEREST

Place: SecunderabadDate: 23.09.2009

for M. Anandam & Co.,Chartered Accountants

~~M.No 28031Partner

51. Name and address of Where the concern is Nominal value of the Incomefrom Whether theNo. the concern a company, number investment the amount in co1.4

and class of shares Investment exceeded 5 per centheld of the capital of the

concern during theIprevious year -say,

1 2 3 4 5 6

-NIL -

TOTAL:

NATIONAL INSTITIITE FOR SMART GOVERNMENT

1stFloor. Astra Towers. Opp CII (Green Business Centre). Kondapur. Hi-Tee City. Hyderabad

DIRECTOR'S REPORT

ToMembers ofNATIONALINSTITIITEFORSMARTGOVERNMENT

Your Directors have pleasure in presenting the 7th Annual Report together with the AuditedAccounts for the year ended 31stMarch 2009.

Financial Results:

Dividend:

The Company is restricted from distributing dividend in terms of Section 25 of the CompaniesAct, 1956.

Review of performance:For the year ended March 2009. the Company achieved a revenue of Rs. 226,336,870/- (previousYear Rs. 122,062,827/-) and posted a surplus ofRs. 17,755,352/- (Previous Year Rs.8,758,012/-)

The Company is striving hard to explore various possibilities to expand it business in the e-

governance sector. The response is encouraging on account of increased awareness of theimportance of e-govemance. The Company is expected to enhance is operations substantiallyduring 2009-10. The Company focuses on Strategic Planning, Project Development and CapacityBuilding for e-Govemance.

Deposits:The company has not accepted any deposits during the year under review.

Directors:

In terms of the Articles of Association, no Directors will retire by rotation.

Particulars Year ended Year ended

31st March 2008 31st March 2009

(Rs.) (Rs.)Gross Income 122,062,827 226,336,870

Total Expenditure 111,903,467 205,226,597

Surplus before Depreciation 10,159,360 21,110,273

Depreciation 1,401,348 3,354,921

Add/Less Prior Period Adjustments - -

Provision for Taxation - -

Surplus for the year 8,758,012 17,755,352

Auditors:

The auditors Mis M.Anandam & Co., Chartered Accountants shall retire at the ensuing AnnualGeneral Meeting and have confirmed their eligibility for reappointment. Their appointment is

proposed through a special resolution in terms of Section 224 A of the Companies Act, 1956.

Energy. Technology. Foreign exchange earnings and outgo:Research steps are integratep and are inbuilt into the e-Governance Project Development

processes. The operations of the Company are not power intensive. However sufficient steps aretaken for conserving power. The Company also ensures adequate quality norms. There wereforeign exchange earnings Rs.2,659,423/- (Previous Year Nil) foreign exchange outgo Rs.901,5301- (Previous Year Rs.5S,619/-) for the Company during the year.

Personnel Resources:

Skilled professionals are integral to the Company's business. Hence the Company strives to attractand retain superior talent through various Human Resources initiatives and steps.

Information as required under Section 217 (2 A) ofthe Companies Act, 1956 is not given as noneof the employees are in receipt of remuneration as per the limits fixed there under.

Directors' responsibility statement:

As required under Section 217(2AA) of The Companies Act, 1956 it is hereby stated that:

a) In the preparation of the annual Accounts, the applicable accounting standards had beenfollowed along with proper explanation relating to material departures;

b) The Directors had selected such accounting policies and applied them consistently andmade judgments and estimates that are reasonable and prudent so as to give a true andfair view of the state of affairs of the Company at the end of the financial year and of theprofit or loss of the Company for that period;

c) The Directors had taken proper and sufficient care for the maintenance of adequateaccounting records in accordance with the provisions of the Companies Act, 1956 forsafeguarding the assets of the Company and for preventing and detecting fraud and otherirregularities; and

d) The Directors had prepared the annual accounts on a going concern basis.

Acknowledgement:

Yours Directors wish to acknowledge the contributions of the employees and the cooperation ithas received from esteemed clients, suppliers and other related agencies, during the year.

Place: Hyderabad

~the Board of DireCtOrsDate: 2:~~_c:'_<J.'2-~~. Director

SOURCES OF FUNDS:

Shareholders' Funda) Share Capitalb) Share Application Moneyc) Reserves &.Surplus

Grants II

Total

APPLICATION OF FUNDS:

Fixed AssetsGross BlockLess: DepreciationNet Block

m

Current Assets, Loans & AdvancesSu nd ry debtorsCash and Bank BalancesLoans and Advances

Total Current Assets

IV

Less: Current Liabilities &.ProvisionsCurrent LiabilitiesNet Current AssetsMiscellaneous Expenses

(to the extent not written off )

V

Total

258,446,647 105.630,019

258,446,647 105,630,019

Significant Accounting Polices I VII&.Notes to Accounts

The schedules referred to above form an Integral part of the FiricinciaI statements

51,000,000 I 51,000,000

29,411,500 I

29,411,50021,588,500 21,588,500

19,696,278

I

1,940,926

187,750,369 52,689,093

17,674,500 I

15,033,83313,353,258 9,586,040

4,321,242 5,447,793

111,834,396 46,165,922186,486,890 34,458,883

27 263,760 43,636 451325,585,046 124,261,256

71.459.642 24 079 030254,125,404 I 100,182,226

INCOMESuccess feeGrants

Income From ConsultancyIncome From TeachingOther income

43,465,030170,316,522

2,890,8779,664.441

2,339,7506,618,480

96,638,2399,909,0046.557,354

226,336,870 122,062,827

EXPENDITURE

Ad ministrative ExpensesConsultancy fee paidAssets Writtenoff

VI 79,381,719125,844,878

52,698,98459,038,663

165,820

Surplus before DepreciationDepreciation

205,226,59721,110,273

3,354,921

111,903,46710,159,360

1,401,348

Surplus after Depreciation 17,755,352 8,758,012

Preliminary Expenses Written OffIncome before AdjustmentsAdd/(Less): Prior Period adjustments

17,755,352 8,758,012

Surplus before Tax 17,755,352 8,758,012

Provision for Income TaxDeferred Tax

Net Surplus/(Deflcit) after TaxBrought Forward from earlier year

17,755,3521,940,926

8,758,012(6,817,086)

Balance carried to the Balance Sheet

Significant Accounting Polices& Notes to Accounts

19,696,278 1,940,926

VII

The schedules referred to above form an Integral part of the Financial statements

0l1l~Vice President

For and on beha of the Board of Directors

s~~CEO & Director

Schedule IAuthorlsed Share Capital

2,500,000, Equity Shares of Rs.100 each

Issued Subscribed Paid up Share Capital294,115 Equity Shares of Rs.100 each

I

Share Application MoneyTotal

Schedule IIGrants

Grants from UNDP/ICTD ProjectCB Training under NegpEGPXCapacity Building management celiGrants from MicrosoftE-Bharat StudiesGrants from PMU(NeGP)National Service Delivery Gateway-IIImplementing NEGP(Round Tables)SIDA

Total

Schedule IVCurrent Assets, Loans and Advances:

a) Current AssetsSundry Debtors

Outstanding for More than 6 months(Unsecured considered good)

Out standing for Less than 6 months

Cash and Bank BalancesCash In HandBalances with Scheduled Banks

In Savings AccountBalance with State Bank of India delhlBalance with State Bank of India

In Current AccountBalance with ICICI Bank HyderabadBalance with ICICI Bank DeihlBalance with SBI (E-Bharat)

In Fixed Deposit AccountsBank Guarantee DepositFixed Deposit ICICI BankFixed Deposit OBCFixed Deposit SBIFixed Deposit e-bharat

Total of (a)

b) Loans & Advances(Unsecured considered good)Advances/Income recoverable in cashor kind or value to be received

Advance payment against taxes

DepositsExp.on Projects Under Implementation

Total of (b)

Total (a+b

250,000,000

29,411,50021,588,500

51,000,000

13,243,62418,988,00013,550,000

5,574,393(3,751,423)

105,003,36224,053,326

1,000,00010,089,087

187,750,369

250,000,000

29,411,50021,588,500

51,000,000

34,234,553

(2,564,342)

8,029,7951,500,0002,500,0008,989,087

52,689,093

4,731,238 2,245,735

13,270,959 9,777,676

4,093,5505,168,013

25,177,3506,435,691

27,263,760

325,585.046

43,636,451

124.261,256

13,995,171 4,692,214

97,839,225 41,473 708111,834,396 46,165,922

32,003 I 32,003 46 984 46,984

26 349,234 7.516 151

218,827 1,731,37626,130,407 5,784,775

1 366619 (104,252) I96,238 (371,271)

267,018 267,0181,003,362

158,739,035 186,454,887 27 000,000 I 34,411,89917,607,556 15,000,000- -

500,000 500,00036,631,479 11,500,000

104,000,000I

298,321,2861 1 80,624,805

SCHEDULE- VCurrent Liabilities and provisions:

Travel AgentsAdv.From Clients Project ImplementationTravel Adv Amlt ChakravarthySalaries PayableTDS Deducted

499,63712,023,000

13,584

50,3729,456,190

95,576 106,123

Total 71,459,642 24,079,030

SCHEDULE -VIAdministrative Expenses

Salaries & AllowancesPowerCOmmunicationRepairs & MaintenancePrinting & StationaryBooksTravel & ConveyanceAudit & Other FeeMiscellaneous Expenses

44,961,288528,296

2,109,8421,999,4251,224,697

922,52820,110,504

120,0007,405,140

27,016,107550,136

2,244,2842,388,361

432,042882,351

17,851,523110,000

1,224,180

Total 79,381,719 52,698,984

Funds Available for ImplementationI I I 15,213,0691 49,447,6221

I 72,448,140Advance/Grantfrom UNDP 4,550,224UNDPDirect ExpensesBalance of Funds from previous year I I 34,234,553 I I 67,897,916Encashment of BG on e-Gov World Pilot

Total

I 1 1 49,447,6221 1

72,448,140

APPLICATION OF FUNDS

Fixed AssetsGross Block

I II I 240'8441 240'8441

42,795 I 42,795

Current Assets, Loans &. Advances

Pilot Initiatives I III I27,824,5721 27,824,5721

29,149,446 29 149 446

28,065,416 29,192,241

Expenses on seminars / workshopsI IV I

8,138,582 8,138,582 9,021,346 9,021,346Net Current Assets 36,203,998 38,213,587Less: Interest returned to UNDP

Balance available with NISG 13,243,624 34,234,553

Total 49,447,622 72,448,140

Schedule IUNDP / ICTD

Amount Received from UNDPSale of Tender DocumentsAmount received from DIT for TrainingInterest earned on FD

Schedule IIFIXED ASSETS

LaptopDigital CameraDigital Voice RecorderExtemal HDDRoll up standsThermal Binding MachineData CardsHP Laser Jet Plinte~DVD Writer

162,240 18800

Schedule IIIPilot Initiatives

Agrl Business CentersBangalore OneBYlTaju FoundationCentre for Spatial Database M & SolDIT Govt of Himachal PradeshE-KlishlGujarat Informatics LimitedKutch Nav Nirman AbhlyanWest Bengal S R Dev. AgencyCenter for Good Governance (e-Justlce)Development AlternativesIT for Change (Mahiti Manthana)e- Procu rement - GoKUve Stock OrissiaMITRAPhone Pe Rl1SEWAVIDIYALE-Gov World

27,824,572 29,149.446

1,350,000

4,500,0001,460,000

( 1,843,643)1,838,0001,448,900

(78,543)1,110,013

997,3104,880,0002,250,0005,400,000

12,5352,500,0002,000,000

3,000,0004,500,0005,840,0002,800,000

892,410

4,563,0502,509,3661,994,6203,050,000

15,213,069 I I 4.550.22415,000,000

213,069 I 4,550,224

240,844 42,79592,000

(13,396)1 I 23,995

Schedule IVADMINISTRATIVE EXPENSES

Advertisement & PublicityAud it FeeBusiness PromotionBank ChargesBooks

Consultancy Fee + (Service Tax)ConveyanceComputer Consu mablesDocumentation & PrintingData Collection FeeElectricity ChargesEPFcharges to StaffEvent ManagementFilm Making ExpensesFood & AccommodationHonera rlu mHouse RentInsurance ChargesInternet Facility Charges (ASTRO)Infrastructure Maintenance Service(WIPRO)Leave Travel AllowanceLeave EncashmentMedical reimbu~ement

Membe~h ip feeOffice MaintenanceOut Sourcing HRPC RentalsPostage & CourierPrinting & StationaryRecruitment ExpensesRenewals & LincensesSalaries & Allowances

Security ServicesSponso~hipStaff TrainingTelephone ExpensesTravelling ExpensesTravel Reimbu~ement + (OPEs)UNDP Direct ExpensesUp Keep AllowanceUtilities AllowanceVariable PayVehicle Hire Charges

8,138,582 9,021,346

406,000

1,574,58256,08250,777

259,151

8,8761,835,314

52,8153,1583,500

42,925162,862

48,538170,154

1,003,7791,600,000

768,829

69,6744,318

87,378

52,965 53,765

14,27658,941

131,94610,198

3,41618,233

4,432128,813

1,532,66111,800

1,931,31917,821

200,00053,93331,156

405,240732,038

14,409542,096

1,530,378

530,750202,825

663,08074,725

M.V.RAPartnerM.No.28031Place: HyderabadDate : 23rd September, 2009

SOURCES OF FUNDS

Funds Available for Implementation9,000,000 \ 17,989,087\

I 9,000,000Advance/Grant from UNDP I 9,000,000Balance of Funds from previous year 8,989,087

Total 17,989,087 9,000,000

APPLICATION OF FUNDSCurrent Assets, Loans & Advances

Pilot Initiatives I II I 7,900,000 I 7,900,0007,900,000

Expenses on seminars / workshopsI III I

512,017 512,017 10,913 10,913Net Current Assets 8,412,017 10,913

Balance available with NISG 9,577,070 8,989,087

Total 17,989,087 9,000,000

Schedule IUNDP / ICTD

Amount Received from UNDP

Schedule IIPilot Initiatives

Community Radio -leTsINemsMobile GovernanceVastra m

Schedule IIIADMINISTRATIVE EXPENSES

Consultancy Fee + (Service Tax)ConveyanceFood &AccommodationSalaries &AllowancesTravelling ExpensesTravel Reimbursement + (OPEs)Vehicle Hire Charges

9,000,000 OOO.OOO

9,000,000 9,000,000

7,900,0002,700,0001,000,0002,500,0001,700,000

1 512,0171 1 10,913250,000

9931 I

415400 400

176,374

12,944 I I 10,09861,778

9,528

M.V. RANP~rtnerM.No.28031Place: HyderabadDate: 23rd September, 2009

tA1fl ;'a"d~~OfDI~~K.SANJAYM~ SHANKARAGGARWAL150MMtTTAL

Vice President CEO&.Director

Funds Available for ImplementationAdvance/Grant from DIT/ Including InlErest 60,206,337 47,746,135Opening Balance of Fund as on 1-4-2008 8,029,795 2,801,419

Total 68,236,132I

50,547,554

APPLICATION OF FUNDS

Fixed AssetsGross Block

I I I 1,000,60 I 1,000,260 I 77,50 I

Less : advnce to STPI adjusted 77,850

Current Assets, Loans & Advances

Current Liabilities Settled

I I I 01 3,795,439 I

3,795,439Deposit (Rent) 90,000Advance (Imprest)Expenses on Programme Management II

Other Operational Expenses 18,557,239 19,617,172Salaries &.Allowances 23,494,285 18,950,670Advertisement &.Recruitment 1,126,400 43,177,924 - 38,567,842

Total current assets 43,177,924 42,453,281

Current LiabilitiesImprest Settled I I (4,623) I (4,623)1 13,372 1 13,372Software Technology Park

Net Current Assets 43,182,546 42,439,909

Balance available with NISG 24,053,326 8,029,795

Total 68,236,132 50,547,554

Schedule IFixed assets

Air ConditioningData CardsDesk TopsElectrical Wo~ & FittingsFurniture & FixturesLaptopsMobileTelephoneMultipleCDWriterMusicSystemNetworking SystemNSA StoragePen DrivesPrintersProjectorRefrigeratorServersSoftwareTelephone at Cost PMUTelephone SystemUPSWater DispenserWindows XP

1,000,260 77,850

187,750 52,850

746,884

48,25017,376

25,000

Schedule IIExpenses on Programme Management

Advertisement & PublicityAnnual Maintenance ContractBank ChargesBooksBusiness PromotionComputer ConsumablesConsultancy Fee + Service taxConveyance ExpensesCultural ProgramDocumentation & PrintingEPF ExpensesFood &AccommodationHonerarlumInfrastructure MaintenanceInsurance ChargesInternet FacilityChargesLeave EncashmentLeave Salary ExpensesLeave Travel AllowanceMedical ReimbursementNews Papers & PeriodicalsOffice MaintenanceOut Sourt:lng HRPension Conbibutlon ExpPostage & CourierPrinting &StationaryRecruitment ExpensesRelocation ChargesRentSalaries &AllowancesSponsorshipStaff TrainingTelephoneTravelling ExpensesTravel ReimbursementVariable PayVehicle Hire Charaes

43,177,924 I I 38,567,8421,126,400

245,520 54,0002,140 6,3054,972 2,500- -

226,380 65,3747,362,731 11,851,101

195,897 64,237-67,735 199,544

1,304,524 1,117,775640,928 527,420

70,000 52,00036,000

67,591 I I

48,865154,088 153,541703,397154,483220,272 66,963102,581 917,185

12,772 1,034292,130 373,111

1,311,948 889,960274,184

47,431 I I

10,384634,809 216,711306,676 111,949

81,210

1,424,579 I I

1,041,69918,452,750 13,917,452

30,00075,272 38,681

504,408 370,1942,056,775 977,960

29,290 32,7632,309,403 3,809,7992,684,650 1,613.335

SOURCES OF FUNDS

Funds Available for ImplementationGrant ReceivedOpening Balance of Fund as on 1-4-2008Receivable from microsoft

(2,564,342)3549736

16,395,379

Total 985,394 16.395.379

APPLICATION OF FUNDS

Fixed AssetsGross Block 3,020,080 3,020,080

Current Assets, Loans & Advances

EGIL Project AdvanceExpenses on Programme Management

IIIII

350,0004,386,817

6,204,0009,735,641

Net Current Assets 4,736,817 15,939,641

Balance available with NISG (3,751,423) (2,564,342)

Total 985.394 16,395,379

For and on behalf oKthe Board of Directors

M.V.RAPartnerM.No. 28031Place: HyderabadDate: 23rd September, 2009

0k~Vice President

~~SHAN KAR' AGGARWAL

CEO & Director

Schedule IFixed assets

Air ConditioningData CardsChairsFanFurniture Fittings & CeilingPrinterWireless Access PointLaptops

3,020,080

316,63110,249

2,082,50022,39014,750

573,560

chedule IIEGIL PROJECT ADVANCE

lIT KanpurAutomatic File Tracking in e-Gov

lIT New DeihlBuilding a CMM Like ModelBusiness Process Re-Engineering in e-GovManaging Secured DocumentsOpportunistic Comm & Athentication FramService Oriented ArchictureEGIL Lab Fund

350,000 6,204,000

350,000

840,000

720,000720,000

1,104,0001,500,000

720,000600,000

Schedule III

Expenses on Programme Ma nagementAdvertisement & PublicityBooksComputer ConsumablesConsultancy Fee + Service TaxConveyance ExpensesEPF ExpensesFood & Accommodation

Insurance ChargesInternet Facility ChargesLeave EncashmentLeave Travel AllowanceNews Papers & PeriodicalsOffice Maintenance

Out Sourcing HRPostage & CourierPrinting & StationaryRecruitment ExpensesRelocation ChargesSalaries & AllowancesTelephoneTravelling ExpensesTravel Reimbursement

Variable PayVehicle Hire ChargesNISG Manaaement Fee

4,386,817 9,735,641

31,4401,336,810

28,436245,071

29,15711,89116,16768,864

2,87018,250

3,692,03531,807

168,149112,288

11,40010,981

2,60071,556

111,7882,691

18,49019,133

49,4501,951

76,3407,7005,128

23,35611,224

1,670,22342,13933,938

351,627294,796

1,758,15058,276

269,487

134,786370,653

2.921.360

NATIONAL INSTITUTE FOR SMART GOVERNMENTSCHEDULES FORMING PART OF THE ACCOUNTS

SCHEDULE - III FIXEDASSETS

Total8,648,598

15-446,1299,983,098

17,674,5006,483,874

9,998,3361,334,500

2,228,371

Previous vear 1,479.625 8,431,168412,296 15,033,83313 ,~6_6, 504

For M. Anandam & CO'1Chartered Accountants

~A::T::K~4p~~~F~~ ,-M.No. 28031Place: HyderabadDate: 23rd September, 2009

~~K.S~ MURTHY'1Vice President

2,170,6113,354,921

8,654,48513,353,258

2,164,7245-447,793

1,328,6134,321,242

9,586,040 5,447,793 5,535,336

NATIONAL INSTIT1JTE FOR SMART GOVERNMENTSCHEDULE -VII

SIGNIFICANT ACCOUNTING POLICIES AND NOTES TO ACCOUNTS

A. SIGNIFICANT ACCOUNTING POLICIES:

Basis of PreDarationThe Financial Statement of the company are prepared under historical cost convention on accrualbasis of accounting, and in accordance with mandatory accounting standarn Issued by Institute ofChllrtered Accounts of Indlll, /lnd refen-ed to in Sec.211(3C) of the Compllnles Act, 1956 IIndgenerally accepted aocountlng principles In India. The accounting policies are conslstantlyapplied by the company during the year. The significant accounting policies are as follows:

1. Axed Assets: Fixed Assets lire stilted at cost IInd Includes frelght,dutles,taxes &.other Incldentlllexpenses related to acquisition &.Installation, Ifany.

2. Deprecilltion: Deprecilition on fixed IISsetS Is provided on written down vlllue method on /IIIin lIocordlincewith Schedule XIVof the Companies Act.1956. The cost of Leasehold Improvements Is being amortizedover the period of lease.

3. Revenue Recognition: Revenue of ellch project Is recognlsed on Milestone completion b/lslsalong with Matching expenditure,

4. Foreign CUrrency tr/InSllctlons during the ye/lr lire recorded at the rates of exchange prevlliling on thedate of the transaction and difference between spot rate at the date of contract and the exchange rateprevailing on the Balance Sheet date Is recognlsed. Allexchange differences are dealt with In the statementof profit and loss, except those relating to the acquisition of fixed asets from outside India, which are/ldjusted In the cost of the IISSetS. Foreign currency mllndlltory Items lire reported using the closing rlIte.

5. Projects under Implementation: In case of projects where milestone completion could not be calculatedthe relevlInt receipts and plIyments were grouped under Advance from Clients for Project ImplementationIInd Expenditure on projects under Implementlltlon respectively.

6. Employee benefits: Lellve encllshement Is provided on the bllsis of IIctulillellve unllvlIiled IInd Gratutity is notdone liS per IIcturilil vlliulition.

B. NOTES TO ACCOUNTS

1. In the opinion of the Board of Directors, the current assets and loans and advances are approximatelyof the same vlllue stated, if realised in the ordinary course of business and lire considered good.

2. Contingent LiabilitiesBank Guarantees

31.03.200919,726,052

31.03.200816,103,634

3. The Debtors, Creditors, loans and advances balances are subject to conflrmlltlon.

4. Interest on deposits made out of UNDPfunds Is IIccounted for on cllsh basis

S. Tax expenses both current tax and deffered tax are not recognised as the Income of compllny is expemptedU/s 12A of the Income Tax Act, 1961.

6. Additional Information pursuant tD part II of Schedule VI of the Companies, Act 1956 tD the extentapplicable.

b. Expenditure In foreign currency: 901,530 58,619c. Earning In foreign currency: 2,659,423d. During the year, the Company did not import any capital goods, raw materials, stores or

components.

7. The Company is engaged In E-govemance projects. The production and sale of such thingscannot be expressed In units. Hence, It Is not possible to give the quantitative details of sales,production and the Information required under paragraph 3&.4of the part II of Schedule VI ofthe Company Act, 1956 is not /lpplic/lble.

8. Following are the projects under Implementation as on 31-03-2009 on which following incomes/lnd expenses /Ire not recognlsed In Income &.Expenditure account but grouped in bahmce sheetunder Adv/lnce from Clients (Projects) /lnd ongoing project expenses

8. The Company has been granted licence under section 25 of the Comp/lnies /lct, 1956.The Comp/lny Isregistered as Company with limited liability, without the addition to Its name of the word "Limited" or thewords "Private Limited".

9. Schedule "I" tD "VII" form an Integral part of accounts and have been authenticated.

a. Auditors' Remuneration 31.03.2009 31.03.2008Rs. Rs.

Audit Fee 120,000 110,000Out of pocket expenses -Total 120,000 110,000

Project Name Income Expenditure

CCA Web infr/lstructure 400000 0CFMS AP 9643000 0DIPP Website 500000 75245E-He/llth AsS/lm 1320000 0Goa Port Trust 160000 0Goa EDS 0 45000Goa Portal 0 42593JNNURM 0 160465

Ping 0 1109925Postal BPM 0 77909E-Gov World Loglsltics 0 2081204

CB Training under Negp 0 6413EGPX 0 1057693Capacity Building management cell 0ICTD SIDA 0 511567

Total 12023000 5168014