1.  BASIS FOR PREPARATION OF FINANCIAL STATEMENTS
 
 The financial statements are prepared under the historical cost
 convention in accordance with the generally accepted accounting
 principles in India including the mandatory accounting standards issued
 by the institute of Chartered Accountants of India (ICAI) and referred
 to in Section 211 (3C) of the Companies Act, 1956 (The Act). The
 significant accounting policies adopted for the preparation of the
 financial statements are as follows:
 
 a.  Revenue Recognition
 
 Revenue from projects is recognized based on percentage completion
 method, which is determined on the basis of the stage of completion of
 ongoing projects on the Balance Sheet date. The stage of completion is
 determined based on progress of the work and estimation of the
 architects.
 
 b.  Fixed Assets
 
 Fixed assets are stated at cost of acquisition minus the accumulated
 depreciation. Advances paid towards acquisition of the fixed assets
 which have not been installed or put to use and the cost of the assets
 not put to use, before the year end, are disclosed under advance for
 purchase of assets.
 
 c.  Inventories
 
 Inventories are valued at the lower of cost or net realizable value.
 The cost is determined on a first in first out basis and includes all
 applicable overheads in bringing the inventories to their present
 location and condition.
 
 d.  Borrowing Costs
 
 Borrowing costs that are attributable to the acquisition and
 construction of qualifying assets are capitalized as a part of the cost
 of the assets.
 
 Other borrowing costs are recognized as an expense in the year in which
 they are incurred.
 
 e.  Deferred Tax
 
 Deferred tax asset or liability has been determind in pursuant to the
 AS-22-Accounting for taxes on Income.
 
 f.  Cash Flow Statement
 
 Cash flows are reported using the indirect method, whereby profit
 before tax is adjusted for the effects of transactions of a non cash
 nature and any deferrals or accruals of past or future cash receipts or
 payments. The cash flows from regular revenue generating financing and
 investing activities of the company are segregated.
 
 g.  Use of Estimates
 
 The preparation of the financial statements in conformity with
 generally accepted accounting principles requires management to make
 estimates and assumptions that affect the reported balances of assets
 and liabilities and disclosure relating to contingent liabilities at
 the date of the financial statements and reported amounts of income and
 expenses during the year.  Examples of such estimates include
 accounting for contract cost expected to be incurred, contract
 revenues, stage of completion, provisions, income taxes, useful lives
 of fixed assets etc. actual results could be different from those
 estimates.
 
 h.  Impairment of Assets
 
 At each balance sheet date, the Company reviews the carrying amounts of
 its fixed assets to determine whether there is any indication that
 those assets suffered an impairment loss. If any such indication
 exists, the recoverable amount of the asset is estimated in order to
 determine the extent of the impairment loss. The recoverable amount is
 the higher of an asset''s net selling price and value in use. In
 assessing the value in use, the estimated future cash flows expected
 from the continuing use of the asset and from its ultimate disposal are
 discounted to their present values using a pre-determined discount rate
 that reflects the current market assessments of the time value of money
 and risks specific to the asset.
 
 2.  DEPRECIATION
 
 Depreciation on fixed assets is provided using the straight line
 method, based on the useful life as estimated by the management.
 Depreciation is charged on pro-rata basis for assets purchased / sold
 during the year. The management''s estimates of useful life for various
 fixed assets are given below:
 
 Furniture & Fixtures - 6 Years
 
 Computer Equipments - 3 Years
 
 3.  INVESTMENT
 
 Current Investments are stated at lower of cost and fair value. The long
 term Investments are stated at cost after deducting provisions made for
 permanent diminution in the rate of exchange if any.
 
 4.  PROVIDENT FUND
 
 The benefits of Provident Fund are received by the eligible employees,
 which is defined in contribution plan. Both the employees and the
 Company are making monthly contribution to this Provident Fund equal to
 specified percentage of the covered employees'' salary.
 
 5.  SEGMENT ACCOUNTING POLICIES
 
 The company has only one segment of operation i.e. Infrastructure
 activity in local market. So segment wise Income/ Expenditure/ Assets
 and Liabilities are not presented.
 
 6.  OTHER ACCOUNTING POLICIES
 
 Other accounting policies are consistent with generally accepted
 accounting policies.