1.  Accounting Convention
 
 These financial statements have been prepared under the historical cost
 Conventions in accordance with the Accounting Standards issued by the
 Institute of Chartered Accountants of India and Provisions of the
 Companies Act, 1956 as adopted consistently by the company. The company
 follows mercantile system of accounting to recognize all material
 revenue and expenses, including provisions/adjustments for committed
 obligations and amounts, determined as payable or receivable during the
 period under review.
 
 2.  Fixed Assets
 
 Fixed Assets are stated at cost of acquisition as reduced by
 accumulated depreciation. All costs including financial costs up to the
 date of commissioning and attributable to the fixed assets are
 capitalized apart from taxes, freight and other incidental expenses
 related to the acquisition and installation of the respective fixed
 assets.
 
 3.  Depreciation
 
 Depreciation on Fixed Assets has been provided on straight-line method,
 as per the rates specified under schedules XIV of the Companies Act,
 1956. No depreciation has been provided on land. Depreciation provided
 on assets acquired during the year has been provided on prorated basis.
 
 4.  Valuation of Inventories
 
 a) Stocks of consumables are valued at cost.
 
 b) Project work in progress is valued with reference to the actual cost
 incurred for the work performed up to the reporting date bear estimated
 total project cost of each project.
 
 5.  Revenue recognition
 
 Revenue is recognized on the basis of stage wise completion of the
 Project.
 
 6.  Expenditure
 
 Expenses are accounted on accrual basis and provisions are made for all
 known losses and liabilities.
 
 7.  Taxe & on income
 
 Current tax is determined as the amount of tax payable in respect of
 taxable income for the period. Deferred tax is accounted, by computing
 the tax effect on timing differences; being tax difference between
 taxable income and accounting income that originate in one period and
 are reversible in one or more subsequent periods.
 
 8.  Foreign Exchange Transactions
 
 a) Assets and Liabilities denominated in foreign currencies are
 translated at the rates prevailing on the date of the Balance Sheet.
 Exchange gains/losses on the same are dealt with in the Profit and Loss
 Account.
 
 b) Expenditure and Income denominated in foreign currencies are
 accounted for at the rates prevailing on the date of transaction.
 Exchange differences arising on foreign currency transactions are
 recognized as income or expense in the period in which they arise.
 
 9.  Retirement and other Benefits
 
 a) Contributions to Provident Fund and Family Pension Fund are charged
 to the Profit and Loss account as incurred.
 
 b) Post retirement benefit such as gratuity is provided for based on
 Valuations, as at the balance sheet date made by independent actuaries.
 
 c) The company does not have a policy for encashment of unavailed
 leaves during the tenure of services of employees and such leaves are
 enchased only at the time employee leaves the organization and
 accordingly leave encashment is accounted in the year of payment.