(A) BASIS OF PREPARATION OF FINANCIAL STATEMENT
 
 (i) The Financial statements are prepared under the historical cost
 convention, in accordance with the generally accepted accounting
 principles, in compliance with the Accounting Standards issued by the
 Institute of Chartered Accountants of India from time to time and
 provisions of the Companies Act, 1956 as adopted consistently by the
 company, unless otherwise stated.
 
 (ii) The company generally follows Mercantile System of accounting and
 recognises items of Income and Expenditure on accrual basis except:-
 Works contract tax deducted at source including on advances by clients
 are charged to profit and loss account in the year of deduction and the
 refunds, if any, are accounted for in the year of receipt.
 
 (iii) Expenditure incurred in respect of additional costs/delays is
 accounted in the year in which they are incurred. Claims made in
 respect thereof are accounted as work receipts in the year of receipt
 of arbitration award or acceptance by client or evidence of acceptance
 received from the client.
 
 (B) REVENUE RECOGNITION
 
 (i) Revenue recognition and valuation of the contract WIP are as per
 Accounting Standard AS-7. Work receipts are taken on percentage
 completion method, stated on the basis of physical measurement of work
 actually completed at the balance sheet date, taking in to account the
 contractual price and revision thereto. The site mobilisation
 expenditure for site installation is apportioned over the period of
 contract in proportion to value of work done. Foreseeable losses are
 accounted for when they are determined except to the extent they are
 expected to be recovered through claims presented or to be presented to
 the customer or in arbitration.
 
 (ii) Sub contracts expenses are accounted on the basis of bills
 certified by principal. Cost of sub contract includes the cost of
 material wherever applicable.
 
 (iii) In respect of Real Estate projects the sales are accounted for at
 the time of handing over the possession of the flat / space to the
 buyers.
 
 (iv) Stage / percentage of completion is determined with reference to
 the certificates given by the Clients / Consultants appointed by
 Clients as well as on the billing schedule agreed with them for the
 value of work done during the year.
 
 (C) FIXED ASSETS
 
 (i) Fixed Assets are stated at Cost of acquisition. Fixed Assets
 acquired under Hire Purchase Schemes are capitalised at their principal
 value and hire (finance) charges are charged off as revenue
 expenditure.
 
 (ii) Company''s Land & Buildings have been revalued as on 31-03-1992 by
 Government approved registered valuer on the basis of their prevailing
 day value. Difference between the total value of these assets on
 revaluation and written down value as on 31.03.1992 of Rs. 10,691,246/-
 had been credited to revaluation reserve account.
 
 (D) DEPRECIATION / AMORTISATION
 
 (i) Depreciation is provided on straight line method in accordance with
 Schedule XIV of the Companies Act, 1956.
 
 (ii) Depreciation on Addition/Deletion from the assets during the year
 is provided on pro-rata basis.
 
 (iii) Depreciation on shuttering material issued @ 100% on prorata
 basis. Items costing below Rs. 5000/- are provided @ 100% on prorata
 basis / charged to the Profit & Loss Account.
 
 (iv) Depreciation is charged on the historical cost of Fixed Assets
 (Except for Revalued Assets) including taxes, duties and installation
 costs.
 
 (v) Depreciation on revalued amount of Fixed Assets is being charged to
 Revaluation Reserve Account.
 
 (vi) Lease hold land is amortised over the period of lease.
 
 (E) INTANGIBLES
 
 Software costs relating to acquisition of initial software licence fee
 and installation cost are capitalized in the year of purchase and
 amortized on straight line basis over its useful life, which is
 considered to be of a period of five years.
 
 (F) IMPAIRMENT OF ASSETS
 
 The company makes an assessment of any indicator that may lead to
 impairment of assets on an annual basis. An impairment loss is
 recognised wherever the carrying amount of the assets exceeds its
 recoverable amount. The recoverable amount is greater of the net
 selling price and value in use. In assessing value in use valuation is
 done by the estimated future cash flows (discounted to their present
 value, based on an appropriate discounting factor) are used. Impairment
 losses are recognised in the Profit and Loss Account.
 
 (G) BORROWING COST
 
 Borrowing Costs specifically related to acquisition of fixed assets are
 capitalized as part of the cost of fixed assets till the date ready to
 put to use. Other borrowing costs are charged to Profit & Loss Account
 amount.
 
 (H) INVESTMENTS
 
 Investments that are readily realizable and intended to be held for not
 more than a year are classified as current investments. All other
 investments are classified as long term investments. Current
 investments are carried at lower of cost and fair value determined on
 an individual investment basis. Long term investments are carried at
 cost. However, provision for diminution in value is made to recognize a
 decline, other than temporary, in the value of such investments.
 
 (I) INVENTORIES
 
 (i) Stocks are valued at cost or net realisable value which ever is
 lower.
 
 (ii) Work-in-progress is valued on the basis of expenditure attributed
 to project up to the date of Balance sheet.
 
 (J) EMPLOYEE BENEFITS
 
 (a) Short-term employee benefits:
 
 All employee benefits payable wholly within twelve months of rendering
 the service are classified as short-term employee benefits. These
 benefits include compensated absences such as paid annual leave .The
 undiscounted amount of short-term employee benefits expected to be paid
 in exchange for the services rendered by employees is recognized during
 the period.
 
 (b) Post-employment benefits:
 
 (i) Retirement benefits in the form of the Company''s contribution to
 Provident Fund charged to the Profit & Loss Account of the year when
 the contributions to the respective funds are due.
 
 (ii) The Company''s gratuity benefit scheme is a defined benefit plan.
 The Company''s net obligation in respect of the gratuity benefit scheme
 is calculated by estimating the amount of future benefit that employees
 have earned in return for their service in the current and prior
 periods; that benefit is discounted to determine its present value, and
 the fair value of any plan assets is deducted.
 
 The present value of the obligation under such defined benefit plan is
 determined based on actuarial valuation using the projected unit credit
 method, which recognizes each period of service as giving rise to
 additional unit of employee benefit entitlement and measures each unit
 separately to build up the final obligation.
 
 The obligation is measured at the present value the estimated future
 cash flows. The discount rates used for determining the present value
 of the obligation under defined benefit plan, are based on the market
 yields on government securities as at the balance sheet date.
 
 When the calculation results in a benefit to the company, the
 recognized asset is limited to the net total of any unrecognized
 actuarial losses and past service costs and the present value of any
 future refunds from the plan or reductions in future contributions to
 the plan.
 
 Actuarial gains and losses are recognized immediately in the profit &
 loss account.
 
 (K) FOREIGN EXCHANGE TRANSACTIONS
 
 (i) Transactions arising in Foreign Currency are converted at the
 exchange rates prevailing as on date of transactions. Monetary Assets &
 Liabilities denominated in Foreign Currencies are restated at year end
 exchange rates. All exchange difference arising on conversion are
 charged to Profit & Loss Account.
 
 (ii) Forward Exchange Contracts (Derivative Instruments) not intended
 for trading or speculation purposes
 
 The Company uses derivative financial instruments including forward
 exchange contracts to hedge its risk associated with foreign currency
 fluctuations. The premium or discount arising at the inception of
 forward exchange contracts is amortized as expense or income over the
 life of the contract. Exchange differences on such contracts are
 recognized in the statement of profit and loss in the year in which the
 exchange rates change. Any profit or loss arising on cancellation or
 renewal of forward exchange contract is recognized as income or as
 expense for the year.
 
 (L) CONCESSION ARRANGEMENT
 
 Judgments and estimates are continually evaluated and are based on
 historical experience and other factors, including expectations of
 future events that are reasonable under the circumstances.
 
 The company makes estimates and assumptions concerning the future. The
 resulting accounting estimates will, by definition, seldom equal the
 related actual results. Significant assumptions used in accounting for
 the intangible asset are given below:
 
 The intangible assets are measured at cost, i.e. fair value of the
 construction service. The exchange of construction services for an
 intangible asset is regarded as a transaction that generates revenue
 and costs, which will be recognized by reference to the stage of
 completion of the Construction. The intangible asset is assumed to be
 received only upon completion of construction and recognized on such
 completion. Until then, the expenditure incurred on this project will
 be debited as Capital Work in Progress under the main head of Fixed
 Assets. The value of the intangible asset shall be amortized over the
 estimated useful life. The carrying value of intangible asset is
 reviewed for impairment when events or changes in circumstances
 indicate that the carrying value may be recoverable.
 
 (M) TAXATION
 
 Current tax is determined as the amount of tax payable in respect of
 taxable income for the year. Deferred Tax resulting from timing
 differences between book & tax profits is accounted for under the
 liability method, at the substantively enacted rate of tax on the
 balance sheet date, to the extent that the timing differences are
 expected to crystalise/capable of reversal as deferred tax charge/
 benefit in the profit & loss account and as deferred tax
 liability/assets in the balance sheet.
 
 (N) PROVISIONS
 
 A provision is recognized when an enterprise has a present obligation
 as a result of past event and it is probable that an outflow of
 resources will be required to settle the obligation, in respect of
 which a reliable estimate can be made. Provisions are not discounted to
 its present value and are determined based on best management estimate
 required to settle the obligation at the Balance Sheet date. These are
 reviewed at each Balance Sheet date and adjusted to reflect the current
 management estimates.
 
 (O) LEASES
 
 Where the Company is the lessee
 
 Finance leases, which effectively transfer to the Company substantially
 all the risks and benefits incidental to ownership of the leased item,
 are capitalized at the lower of the fair value and present value of the
 minimum lease payments at the inception of the lease term and disclosed
 as leased assets. Lease payments are apportioned between the finance
 charges and reduction of the lease liability based on the implicit rate
 of return. Finance charges are charged directly against income. Lease
 management fees, legal charges and other initial direct costs are
 capitalised.
 
 If there is no reasonable certainty that the Company will obtain the
 ownership by the end of the lease term, capitalized leased assets are
 depreciated over the shorter of the estimated useful life of the asset
 or the lease term.
 
 Leases where the lessor effectively retains substantially all the risks
 and benefits of ownership of the leased item are classified as
 operating leases. Operating lease payments are recognized as an expense
 in the Profit & Loss Account on a straight-line basis over the lease
 term.
 
 (P) SEGMENT REPORTING POLICIES
 
 (i) Identification of segments:
 
 The Company''s operating businesses are organized and managed separately
 according to the nature of products, with each segment representing a
 strategic business unit that offers different products and serves
 different markets.
 
 (ii) Inter Segment Transfers:
 
 Inter segment transfers have been priced based on market prices charged
 to external customers for similar goods. These are then eliminated.
 
 (iii) Unallocated items:
 
 Common unallocable costs and corporate income and expenses are
 considered as a part of un-allocable income and expense, which are not
 identifiable to any business segment.
 
 (Q) EARNINGS PER SHARE
 
 Basic earnings per share is calculated by dividing the net profit or
 loss for the year attributable to equity shareholders (after deducting
 preference dividends and attributable taxes) by the weighted average
 number of equity shares outstanding during the year. For the purpose of
 calculating Diluted Earnings per Share, the net profit or loss for the
 year attributable to equity shareholders and the weighted average
 number of shares outstanding during the year are adjusted for the
 effects of all dilutive potential Equity shares.