The Significant Accounting Policies adopted by the company in respect
 of these financial statements are set out below:
 
 1) Accounting Convention
 
 The financial statements are prepared under the historical cost
 convention in accordance with Generally Accepted Accounting Principles
 in India, the Accounting Standards issued by the Institute of Chartered
 Accountants of India and the provisions of the Companies Act, 1956 on
 an accrual basis of accounting.
 
 2) Fixed Assets and Depreciation
 
 i) All fixed assets are stated at cost less accumulated depreciation
 thereon. The cost comprises the purchase price and attributable cost of
 bringing the asset to its working condition for its intended use.
 Revalued assets are stated at the revalued amount.
 
 ii) Depreciation is provided on straight line method at the rates and
 method specified in Schedule XIV of the Companies Act 1956.
 Depreciation on the revalued component of the asset has been charged in
 the similar manner over the residual life of the assets and withdrawn
 from the revaluation reserve.
 
 3) Capital Work-in-Progress
 
 Projects under commissioning and other capital work-in- progress are
 carried at cost, comprising of direct cost, related incidental
 expenses, interest and other financing cost payable on funds
 specifically borrowed to the extent they relate to the period till
 assets are put to use.
 
 4) Intangible Assets and Amortization
 
 i) Intangible assets are stated at cost of acquisition / development
 less accumulated amortization.
 
 ii) Cost of Toll Collection Right on Mumbra Bypass Road is amortized on
 straight line basis over the period for which the toll collection
 rights on the said road have been granted by the authorities.
 
 5) Investments
 
 All long-term investments are stated at cost.
 
 6) Inventories
 
 a.  Construction Materials are valued and stated at lower of cost or
 net realizable value.
 
 b.  Work in Progress (i.e. unbilled contract expenditure) on the
 construction contracts reflects value of material input and expenses
 incurred on the contracts including the estimated profits thereon after
 adjusting progress billing in the manner provided under Accounting
 standard AS-7 (Revised) on construction Contracts.
 
 7) Revenue Recognition
 
 The company follows the mercantile system of accounting and recognizes
 revenue / income, cost / expenditure on accrual basis except in the
 case of significant uncertainties.  The principles of revenue
 recognition are given below:
 
 i) Income from Projects under Long Term Contracts is recognized on the
 Percentage of completion basis in the manner specified under Accounting
 Standard – AS7 (Revised) on Construction Contracts. As the long term
 contracts necessarily extend beyond one year, revision in the costs and
 revenues estimated during the course of contract are reflected in the
 accounting period in which the facts requiring revision become known.
 
 ii) Additional claim including escalations, which in the
 
 opinion of the management, are recoverable on the contract are
 recognized at the time of evaluating the job.
 
 iii) The determination of revenue under the Percentage of Completion
 Method necessarily involves making estimates by the company which are
 of technical nature concerning, where relevant, the percentage of
 completion, costs to completion, the expected revenue from the projects
 and the losses, if any, to completion.  Such estimates, made by the
 company, have been relied upon by the Auditors as these are of
 technical nature.
 
 iv) Revenue from other contracts is recognized based on billing
 schedules agreed with the clients on Progressive Completion basis.
 
 v) Revenue from toll collection is recognized on the receipt of toll
 from users of the concession facility.
 
 vi) Interest income is recognized on time proportion basis.
 
 vii) Dividend income is recorded when the right to receive the dividend
 is established.
 
 viii) Other revenues are accounted on accrual basis.
 
 8) Turnover
 
 a) In respect of Engineering Procurement and Construction (EPC)
 contract, where the Company is also responsible for designing and
 engineering in addition to procurement and construction, the percentage
 of completion and the turnover there from is based on physical
 proportion of contract work as per the certificate of the independent
 consulting engineer.
 
 b) In respect of other contracts and other project related activities,
 the turnover is recognized by applying Percentage of Completion method
 to the total contract cost, along with an estimated profit thereon. The
 percentage of completion is determined by applying the proportion of
 the cost incurred to date to the total estimated project cost.
 
 c) Turnover includes toll collection of BOT infrastructure project and
 mining.
 
 9) Foreign Currency Transactions
 
 Any income or expenses on account of foreign exchange derivative
 contract is recognized on settlement in the Profit & Loss Account in
 the reporting period
 
 10) Retirement Benefits
 
 a) Company''s contribution to Provident Fund are made at predetermined
 rates to the appropriate authority and charged to Profit & Loss Account
 on accrual basis.
 
 b) Gratuity in respect of past and present services of the employees is
 being accounted for an accrual basis based on actuarial valuation.
 
 c) Actuarial gains\losses are immediately taken to Profit and Loss
 Account and are not deferred
 
 11) Taxes on Income
 
 Income tax expenses for the period comprises of current tax and
 deferred tax is included in determining the Net Profit / (Loss) for the
 period.
 
 Current Tax provision has been determined on the basis of relief,
 deductions, etc. available under the Income Tax Act.
 
 Deferred Tax is recognized for all timing differences between taxable
 income and the accounting income, which originate in one period and are
 capable of reversal in one or more subsequent periods. The tax effect
 is calculated on the accumulated timing differences at the year end
 based on tax rates and laws enacted or substantively enacted as of the
 Balance Sheet date.
 
 12) Earning per Share
 
 The Company reports basic and diluted Earning Per Share (EPS) in
 accordance with Accounting Standard 20 on Earning Per Share. Basic EPS
 is computed by dividing the net profit or loss for the year by the
 weighted average number of Equity Shares outstanding during the year.
 Diluted EPS is computed by dividing
 
 the net profit or loss for the year by the weighted average number of
 Equity Shares outstanding during the year as adjusted for the effects
 of all dilutive potential Equity Shares.
 
 13) Impairment of Assets
 
 An asset is treated as impaired when the carrying cost of asset exceeds
 its recoverable value. An impairment loss is charged to the Profit and
 Loss Account in the year in which an asset is identified as impaired.
 
 14) Cash Flow Statement
 
 The Cash Flow Statement is prepared by the indirect method set out in
 the Accounting Standard – 3 on Cash Flow Statement and presents the
 cash flows by operating, investing and financing activities of the
 company. Cash and cash equivalents presented in the Cash Flow Statement
 consist of cash on hand and balance with banks.
 
 15) Contingent Liabilities
 
 Contingent liabilities are reflected as notes to accounts