NIIT, Asia's largest information technology trainer, is planning a restructuring of its subsidiaries and rationalisation of costs.

This includes the realignment of its accounting year with tax year to derive cost benefits.

According to a company spokesperson "In order to avoid a double tax audit, we are realigning our accounting year. This would mean eliminating certain costs and reorganising them in a manner which will prove to be more beneficial to the company and assist in its objective of maximising growth."

However, company sources revealed that it was too premature to elaborate on the other areas which would form a part of the reorganisation exercise, but streamlining of certain subsidiaries and steps to accelerate growth of the company, were the two issues to be taken up by the company.

The decision to reorient the company towards growth was taken at a recent meeting of its board of directors. The company has also set up a task force which would examine and develop the plans for restructuring.

In the nine-month period (from September 2002 to June 2003), the company saw a 20 per cent jump in its software segment, while education segment grew by 9 per cent compared with the same period in the previous year.

The company had posted a rise of 216 per cent in its profit for the second quarter ending March 2003 at Rs 6.4 crore (Rs 64 million).

However, the revenue figures did not show a similar jump which stood at Rs 89.4 crore (Rs 894 million) against Rs 89 crore (Rs 890 million) in the corresponding period of the previous fiscal.

The IT major has made six acquisition in the last 18 months affecting its margins. Company sources say that the margins were not looking good as the company was still in the process of adjustments, due to investments made in the last two years.

NIIT also set up 15 training centres in China in July, which would provide high-end information technology training.