(a) Basis of Preparation:
 
 The Financial Statements have been prepared to comply in all material
 respects with the notifed accounting standards by the Companies
 (Accounting Standards) Rules, 2006 and the relevant provisions of the
 Companies Act, 1956. The financial statements have been prepared under
 the historical cost convention on accrual basis except in case of
 assets for which provision for impairment is made and revaluation is
 carried out. The accounting policies have been consistently applied by
 the Company and are consistent with those used in the previous year.
 
 (B) Use of estimates:
 
 The preparation of financial statements in conformity with Generally
 Accepted Accounting Principles in India requires management to make
 estimates and assumptions that affect the reported amounts of assets
 and liabilities and the disclosure of contingent liabilities at the
 date of financial statements and the reported amounts of revenues and
 expenses during the reporting period. Examples of such estimates
 include percentage of completion method which requires the Company to
 estimate the cost expended to date as a proportion of the total
 estimated costs, provision for doubtful debts, future obligations under
 employee benefit plans, income taxes, warranties and the useful lives of
 fxed assets and intangible assets.
 
 Accounting estimates can change from period to period. Actual results
 could differ from those estimates. Appropriate changes in estimates are
 made as the management becomes aware of changes in circumstances
 surrounding the estimates. Changes in estimates are refected in the
 financial statements in the period in which changes are made and, if
 material, their effects are disclosed in the notes to financial
 statements.
 
 (C) fixed assets:
 
 i.  tangible assets:
 
 Tangible assets are stated at their original cost of acquisition or
 construction less accumulated depreciation and impairment losses, if
 any. Cost comprises the purchase price and attributable cost if any, of
 bringing the asset to its working condition for its intended use.
 Capital Work in Progress is valued at cost.
 
 ii. intangible assets:
 
 Intangible assets are stated at their cost of acquisition less
 accumulated amortization and accumulated impairment losses, if any,
 thereon. An intangible asset is recognised when it is probable that the
 future economic benefits attributable to the asset will fow to the
 enterprise and where its cost can be reliably measured. The cost of an
 intangible asset is allocated over the best estimate of its useful life
 on a straight line basis, a basis that refects the pattern in which the
 assets economic benefits are consumed.
 
 (d) depreciation/amortisation:
 
 Depreciation/Amortisation is provided on written down value method in
 accordance with Schedule XIV to the Companies Act, 1956, other than
 described below.
 
 Depreciation/Amortisation on assets acquired or sold during the year is
 provided on pro-rata basis and is provided on Plant and Machinery items
 based on number of shifits worked as per the provisions of the Companies
 Act, 1956. In respect of the following tangible and intangible assets,
 the following straight line method depreciation/amortisation rates
 applied are different to the rates prescribed by Schedule XIV to the
 Companies Act, 1956.
 
 (e) impairment:
 
 An asset is considered to be impaired in accordance with Accounting
 Standard 28 - Impairment of Assets, when at Balance Sheet date there
 are indications of impairment and the carrying amount of the asset, or
 where applicable the cash generating unit to which the asset belongs,
 exceeds its recoverable amount. The recoverable amount is the greater
 of the assets net selling price and value in use. In assessing value
 in use the estimated future cash fows are discounted to their present
 value at the weighted average cost of capital. The carrying amount is
 reduced to the recoverable amount and the reduction is recognised as an
 impairment loss in the profit and loss account.
 
 (f) investments:
 
 Investments classifed as long term investments are stated at cost of
 acquisition. However, provision for diminution in value is made to
 recognise a decline, other than temporary, in its value. Investments
 classifed as current investments are stated at lower of cost and fair
 value determined either on an individual basis or by category of
 investment, but not an overall (or global) basis.
 
 (G) income taxes:
 
 Tax Expense comprises current and deferred tax. Current tax is measured
 at the amount expected to be paid to the tax authorities in accordance
 with the Income Tax Act, 1961. Deferred Income taxes refect the impact
 of current year timing differences between taxable income and
 accounting income and reversal of timing differences of the earlier
 years.
 
 Deferred tax is measured based on the tax rates and the tax laws
 enacted or substantively enacted at the Balance Sheet date. Deferred
 tax assets are recognised only to the extent there is reasonable
 certainty that suffcient future taxable income will be available
 against which such deferred tax assets can be realized. Deferred tax
 asset on carried forward business losses and unabsorbed depreciation is
 set up only if there is virtual certainty supported by convincing
 evidence that suffcient future taxable income will be available against
 which such deferred tax asset can be realised.
 
 At each Balance Sheet date, the Company assesses unrecognised deferred
 tax assets to the extent that it is reasonably certain or virtually
 certain supported by convincing evidence as the case may be that
 suffcient future taxable income will be available against which such
 deferred tax assets can be realised.
 
 The carrying amount of deferred tax is reviewed at each Balance Sheet
 date. The Company writes-down the carrying amount of a deferred tax
 asset to the extent that it is no longer reasonably certain or
 virtually certain and supported by convincing evidence, as the case may
 be, that suffcient future taxable income will be available against
 which deferred tax asset can be realised. Any such write-down is
 reversed to the extent that it becomes reasonably certain or virtually
 certain, as the case may be, that suffcient future taxable income will
 be available.
 
 (h) inventories:
 
 i.  Inventories are valued at lower of cost and net realisable value.
 
 ii. Cost of raw materials comprises all costs of purchases (Net of
 Cenvat credit) and other costs incurred in bringing the inventories to
 their present location and condition. Cost is determined by moving
 weighted average method.
 
 iii. Cost is arrived at on a moving weighted average method and
 includes, where appropriate, manufacturing overheads and excise duty.
 Work in progress and fnished good inventory is valued as aforesaid
 based on estimated value of work completed on each project.
 
 iv. Inventory includes goods lying with vendors for job work and goods
 in-transit.
 
 (i) Central excise duty:
 
 Excise duty liability is accounted for as and when goods are produced
 as per consistent practice, in pursuance to the accepted practice of
 excise authorities.
 
 (J) revenue recognition:
 
 Sales, other than long term contracts are recognised on dispatch of
 goods. Sales are net of Value Added Tax. The Excise Duty recovered is
 presented as a reduction from gross sales.
 
 Revenues from long term contracts are recognised on the percentage of
 completion method, in proportion that the contract cost incurred for
 the work performed up to the reporting date bear to the estimated total
 contract costs.
 
 Construction contracts are accounted for in accordance with the
 Accounting Standard 7 on Accounting for Construction contracts. When
 the outcome of a construction contract can be estimated reliably,
 contract revenue and contract costs associated with the construction
 contract are recognised as revenue and expenses respectively by
 reference to the stage of completion of the contract activity at the
 reporting date, (the percentage of completion method).
 
 At each reporting date, the contracts in progress (Progress work) is
 valued and carried in the Balance Sheet under Current Assets. Advance
 and progress payments received from customers during the course to
 completion are carried under Current Liabilities. Based on overall
 Gross margin estimated for outstanding contracts, revenues for
 contracts in progress are recognised in the Profit and Loss account
 based on the stage of completion of contract at the Balance Sheet date.
 Stage of completion of a contract is determined based on the proportion
 that contract costs incurred for work performed upto the reporting date
 bear to the estimated total contract costs.
 
 The Cenvat Credit is accounted by crediting the amount to cost of
 purchases on receipt of goods and is used on clearance of fnished goods
 by debiting Excise duty account.
 
 Contract revenue accrued in excess of billing amounting to Rs11,910.99
 lacs (2009-2010: Rs6,289.40 lacs) has been reflected as due from
 customers on construction contracts under the head Currents assets,
 Loans and Advances.  While billing in excess of Contract revenue
 accrued amounting to Rs4,188.90 lacs (2009-2010: Rs3,533.43 lacs) has
 been reflected as due to customers on construction contracts under
 the head Current Liabilities and Provisions.
 
 Provision for estimated losses, if any, on uncompleted contracts are
 recorded in the period in which such losses become probable based on
 the current estimates.
 
 Income from services is recognised as and when the services are
 rendered.
 
 Interest Revenue is recognised on time proportion basis taking into
 account the amount outstanding and the rate applicable.
 
 Dividend income is recognised when the right to receive dividend is
 established.
 
 Eligible export benefits, if any, are recognised in the Profit and Loss
 Account when the right to receive credit as per the terms of the
 entitlement and reasonable certainty of collection / utilisation is
 established in respect of exports made / to be made.
 
 (K) foreign Currency transactions:
 
 i.  initial recognition:
 
 Foreign currency transactions are recorded in the reporting currency by
 applying the Monthly / Weekly average exchange rate.
 
 ii. translation:
 
 Foreign currency monetary assets and liabilities reported at the
 Balance Sheet date are translated using the prevailing exchange rate on
 the Balance Sheet date. Non-monetary items which are carried in terms
 of historical cost denominated in foreign currency are reported using
 the exchange rate on date of transaction.
 
 iii. exchange differences:
 
 Exchange differences arising on settlement of monetary assets and
 liabilities, during the year are recognized in the Profit and Loss
 Account.
 
 iv. Forward exchange contracts are entered into for minimising risks
 (not intended for trading and speculative purposes).  Any profit and
 loss arising on cancellation or renewal of forward exchange contract is
 recognised as income or expense for the year.
 
 v. The Company uses foreign currency forward contracts to hedge its
 risks associated with foreign currency fuctuations relating to certain
 frm commitments and highly probable forecast transactions. In respect
 of outstanding derivative contracts as at Balance Sheet date, such
 contracts are marked to market and keeping in view the principle of
 prudence, only unrealized net mark-to-market losses are recognized to
 Profit and Loss Account and net gain, if any, are ignored in pursuance
 of the announcement dated March 29, 2008 by the Institute of Chartered
 Accountants of India.
 
 (l) Provisions and Contingent liabilities:
 
 A provision is recognised if, as a result of a past event, the Company
 has a present obligation that can be estimated reliably, and it is
 probable (more likely than not) that an outfow of economic benefits will
 be required to settle the obligation. Provisions are determined by the
 best estimate of the fow of economic benefits required to settle the
 obligation at the reporting date.  Where no reliable estimate can be
 made, a disclosure is made as contingent liability. A disclosure for a
 contingent liability is to be made when there is possible obligation
 that arises from past events and the existence of which will be
 confrmed only by occurrence or non-occurrence of one or more uncertain
 future events not wholly within the control of the Company or a present
 obligation that may, but probably will not require an outfow of
 resources or in respect of which the likelihood of outfow of resources
 is remote.
 
 (M) Post-sales Warranties and liquidated damages:
 
 The Company provides its Clients with a fixed-period warranty on all
 Contracts as per stipulated terms. Costs associated with such contracts
 are accrued at the time related revenues are recorded and included in
 cost of sales.  The Company estimates such costs based on historical
 experience and the estimates are reviewed annually for any material
 changes in assumption. Liquidated damages are provided as per
 Managements estimates on case to case basis.
 
 (n) Provision for doubtful debts:
 
 Specifc provision for doubtful debts is made where collection of
 debtors is uncertain.
 
 (o) employee benefits:
 
 i.  defned Contribution Plan:
 
 The Companys contributions paid/payable during the year to Provident
 Fund, Superannuation Fund, ESIC and Labour Welfare Fund are recognised
 in the Profit and Loss Account.
 
 ii. defned Benefit Plan / long term compensated absences:
 
 Companys liabilities towards gratuity and compensated absences are
 determined as at the end of the reporting date by independent actuary
 using the Projected Unit Credit method. Past services are recognised on
 a straight line basis over the average period until the benefits become
 vested. Actuarial gain and losses are recognised immediately in the
 statement of Profit and Loss Account as income or expense. Obligation is
 measured at the present value of estimated future cash fows using a
 discounted rate that is determined by reference to the market yields at
 the Balance Sheet date on Government Securities where the currency and
 terms of the Government Securities are consistent with the currency and
 estimated terms of the defned benefit obligation.
 
 (P) leases:
 
 operating lease:
 
 Leases where the lessor effectively retains substantially all the risks
 and benefits of ownership of the leased asset, are classifed as
 operating leases. Operating lease payments are recognised as an expense
 in the Profit and Loss account on a straight line basis over the lease
 term.
 
 finance lease:
 
 Leases that transfer substantially all the risks and rewards incidental
 to ownership of the assets are classifed as Finance Leases. Assets
 procured under fnance lease are recognized as Leased Assets and
 depreciation charged with the same rate used for charging depreciation
 on the depreciable assets of same kind owned by the Company.
 
 (Q) earnings per share:
 
 Basic earnings per share are calculated by dividing the net profit or
 loss for the year attributable to equity shareholders by the weighted
 average number of equity shares outstanding during the year.
 
 For the purpose of calculating the diluted earnings per share, the net
 profit or loss for the period attributable to equity shareholders and
 the weighted average number of shares outstanding during the period are
 adjusted for the effects of all dilutive potential equity shares.
 
 (r) technology fees:
 
 Technology fees is computed under an agreement effective January 1,
 2010 on value addition basis on the equipment manufactured with help of
 new technology provided by CMI, SA. Technology fees are being fully
 charged off at the time of incurrence, and is included under project
 expenses.
 
 (s) Brand fees:
 
 Brand fees charged by CMI SA, under an agreement effective January 1,
 2010, is being charged off at the time of incurrence and is included in
 Manufacturing, Erection and Other expenses.