Research exemption under section 35(1) approved for institution, conditional on audit, separate accounts and reporting compliance. Exemption under section 35(1) is approved for ARC-International as an Other Institution partly engaged in scientific research from AY 2009-10, conditional on use of sums for research and conducting research through faculty or enrolled students; maintenance of separate research books of account, audit by a qualified accountant with timely submission of the audit report, and provision of an auditor certified statement of donations and amounts applied for research. The Central Government may withdraw approval for failures in recordkeeping, reporting, genuineness of research activities, or non compliance with the governing statutory provisions and rules.