a.  Use of Estimates
 
 In preparing the financial statements in conformity with accounting
 principles generally accepted in India, Management is required to make
 estimates and assumption that affect the reported amounts of assets and
 liabilities as at the date of the financial statements and the amounts
 of revenue and expenses during the reported period. Actual results
 could differ from those estimates. Any revision to such estimates is
 recognised in the period the same is determined.
 
 b.  Tangible Fixed Assets
 
 Fixed assets are stated at cost of acquisition inclusive of taxes,
 duties, freight and other incidental expenses related to acquisition
 and installation less accumulated depreciation.
 
 Self constructed assets are capitalised at cost including an
 appropriate share of overhead.
 
 c.  Depreciation on Tangible Fixed Assets
 
 Depreciation is provided on Straight Line Method at the rates specified
 in Schedule -XIV to the Companies Act, 1956.
 
 Depreciation on addition / deletion of fixed assets during the year is
 provided on pro-rata basis with reference to the date of addition /
 deletion.
 
 d.  Borrowing Costs
 
 Borrowing costs that are attributable to the acquisition, construction
 or production of a qualifying asset are capitalised as part of cost of
 such asset till such time the asset is ready for its intended use or
 sale. All other borrowing costs are recognised as an expense in the
 period in which they are incurred.
 
 e.  Investments
 
 Investments in integrated Joint ventures are carried at cost net of
 adjustments for the Company''s share in profits or losses as recognised.
 
 f.  Accounting for Joint Ventures Contracts
 
 i.  Contracts executed in Joint Venture under work sharing arrangement
 (consortium) are accounted for in accordance with the accounting policy
 followed by the Company as that of an independent contract to the
 extent work is executed.
 
 ii.  In respect of contracts executed in Integrated Joint Ventures
 under profit sharing arrangement (assessed as AOP under Income Tax
 Laws), the services rendered to the Joint Ventures are accounted for as
 income on accrual basis. The profit / Loss is accounted for, as and
 when it is determined by the Joint Venture and the net investment in
 the Joint Venture is reflected as investments, loans and advances or
 current liabilities.
 
 g.  Inventories
 
 i.  Raw Materials, Stores & Spares and Finished Goods
 
 Raw Materials, construction materials and Finished Goods are valued at
 the lower of cost and net realisable value.
 
 ii.  Work in Progress
 
 The work in progress is valued as percentage of completion contract
 method as per Accounting Standard 7 on Construction Contracts issued
 by the Institute of Chartered Accountants of India.
 
 h.  Revenue Recognition
 
 The Company follows the percentage of completion method as per
 Accounting Standard - 7 on Construction Contracts issued by the
 Institute of Chartered Accountants of India to recognise revenue in
 respect of contracts executed. Contract revenue is accounted for on the
 basis of bills submitted to clients/bill certified by clients and does
 not include material supplied by the clients free of cost. Other
 revenue and expenses are accounted for on accrual basis.
 
 i.  Taxes on Income
 
 The Tax expenses comprise of current tax and deferred tax charged or
 credited to the profit and loss account for the year. Current tax is
 calculated in accordance with the tax laws applicable to the current
 financial year. The deferred tax charge or credit is recognised using
 the tax rates and tax laws that have been enacted by the Balance Sheet
 date. Where there are unabsorbed depreciation or carry forward losses,
 deferred tax assets are recognised only if there is virtual certainty
 of realisation of such assets. Other deferred tax assets are recognised
 only to the extent there is reasonable certainty of realisation in
 future. At each Balance Sheet date, recognised and unrecognised
 deferred tax assets are reviewed.
 
 j. Employee Benefits
 
 i) Defined contribution plans
 
 Contributions paid/payable to defined contribution plans comprising of
 provident fund is recognised as expenses during the period in which the
 employees perform the services that the payments cover.
 
 The Company makes monthly contributions and has no further obligations
 under the plan beyond its contributions.
 
 ii) Defined benefit plan
 
 Gratuity for employees is covered under a scheme of SBI Life Insurance
 and contributions in respect of such scheme are recognised in the
 Profit and Loss Account. The liability as at the Balance Sheet date is
 provided for based on the actuarial valuation, at the Balance Sheet
 date, carried out by an independent actuary. Actuarial gains and losses
 comprise experience adjustments and the effect of changes in the
 actuarial assumptions and are recognised immediately in the Profit and
 Loss account as income or expense.
 
 iii) Short term employee benefits
 
 Short term employee benefits including compensated absences as at the
 Balance Sheet date are recognised as an expense as per the Company''s
 schemes based on the expected obligation on an undiscounted basis.
 
 k. Contingent Liabilities and Contingent Assets
 
 Provisions involving substantial degree of estimation in measurement
 are recognised when an enterprise has a present obligation as a result
 of past event; 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 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 best estimates.
 
 Contingent Liabilities are not recognised but are disclosed in the
 notes to accounts. Disputed demands in respect of Central Excise, VAT
 Income Tax and Sales Tax are disclosed as Contingent Liabilities.
 Payment in respect of such demands, if any, is shown as advance, till
 the final outcome of the matter. Contingent Assets are neither
 recognised nor disclosed in the financial statements..
 
 l.  Earning per share :
 
 Basic earning per share is calculated by dividing the net profit or
 loss for the period attributable to equity share holders by the
 weighted average no. of equity shares outstanding during the period.
 The weighted average no. of equity shares outstanding during the period
 is adjusted for events of shares split.
 
 For the purpose of calculating diluted earning per share, the net
 profit or loss for the period attributable to the equity share holders
 and weighted average no. of equity shares outstanding during the period
 is adjusted for the effects of all dilutive potential equity shares.
 
 m. Overdue Charges in Respect of Loans
 
 Overdue charges if any levied by financial institutions / banks/NBFC
 are not considered during the currency of the loan. The same is
 considered as a financial expense in the year of final settlement of
 loan amount.