1 SYSTEM OF ACCOUNTING :
 
 The accounts are prepared on historical cost convention method and in
 accordance with the normally accepted accounting principles and the
 accounting standards where applicable. The Company has been following
 mercantile method of accounting.
 
 2 USE OF ESTIMATES:
 
 The preparation of financial statement requires management to make
 certain estimates and assumptions that affect the amounts reported in
 the financial statements and notes thereto. Difference between actual
 results and estimates are recognised in the period in which they
 materialise.
 
 3 REVENUE RECOGNITION:
 
 The Company generally adopts percentage of completion method of revenue
 recognition where revenues are recognised as and when major work is
 completed. The expenses on incomplete projects are recognised and
 disclosed under the head ''Contract in Progress.
 
 The advances received and paid towards the projects in progress are
 disclosed under the head ''Current Liabilities'' and ''Current Assets''
 respectively.
 
 4 FIXED ASSETS & DEPRECIATION:
 
 Fixed Assets are stated at cost of acquisition less depreciation.
 Depreciation is provided on WDV method as per rates prescribed in
 Schedule XIV of the Companies Act, 1956.
 
 5 INVESTMENT:
 
 Unquoted and Long Term Investments are stated at cost. Provision is
 made for diminution, other than temporary, in the value of investments.
 Wherever applicable
 
 6 DEFERRED TAX:
 
 Income tax expense comprises current and deferred tax charge or credit
 (reflecting the tax effects of timing differences between accounting
 income and taxable income for the year). The deferred tax charge or
 credit and the corresponding deferred tax liabilities or assets are
 recognised using the tax rates that have been enacted or substantively
 enacted at the Balance Sheet date.
 
 Deferred tax assets are recognised only to the extent there is
 reasonable certainty that the assets can be realised in future.
 However, where there is unabsorbed depreciation or carried forward loss
 under taxation laws, deferred tax assets are recognised only if there
 is a virtual certainty of realisation of such assets. Deferred tax
 assets are reviewed as at each balance sheet date and written down or
 written up to reflect the amount that is reasonably/virtually certain
 (as the case may be) to be realised.
 
 7 INVENTORIES:
 
 Inventories are valued at cost or net realisable value whichever is
 lower (determined on weighted/moving average basis)
 
 8 IMPAREMENT OF ASSETS:
 
 Impairment loss is provided to the extent, the carrying amount of
 assets exceeds their recoverable amount. Recoverable amount is higher
 of an assets net selling price and its value in use. Value in use is
 the present value of estimated future cash flows expected to arise from
 the continuous use of an asset and from its disposal as the end of its
 useful life.
 
 9 BORROWING COST:
 
 Interest and other costs in connection with borrowing of funds to the
 extent related/ attributed to the acquisition / construction of
 qualifying fixed assets are capitalised upto the date when such assets
 are ready for its intended use and other borrowing cost are charged to
 profit & loss account.
 
 10 FOREIGN EXCHANGE TRANSACTIONS:
 
 Foreign Exchange Transactions are recorded at the exchange rate
 prevailing on the dates of the transactions.
 
 11 RETIREMENT BENEFITS:
 
 Retirement benefits provided as and when applicable under various Acts
 
 12 CONTINGENT LIABILITIES:
 
 Contingent Liabilities are not provided for in the accounts and are
 separately disclosed by way of notes.