1.  Basis of preparation of Financial Statements:
 
 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 an accrual basis of accounting. The
 accounting policies discussed more fully below, are consistent with
 those used in the previous year.
 
 2.  Use of Estimates:
 
 The preparation of financial statements requires estimates and
 assumptions to be made that affect the reported amount of assets and
 liabilities on the date of financial statements and the reported amount
 of revenues and expenses during the reporting period. Difference
 between the actual results and estimates are recognized in the period
 in which the results are known.
 
 3.  Revenue Recognition:
 
 (a) On Construction Contracts:
 
 Long-term contracts including Joint Ventures are progressively
 evaluated at the end of each accounting period. On contracts under
 execution which have reasonably progressed, Profit is recognized by
 evaluation of the percentage of work completed at the end of the
 accounting period, whereas, foreseeable losses are fully provided for
 in the respective accounting period. The percentage of work completed
 is determined by the expenditure incurred on the job till each review
 date to total expected expenditure of the job.
 
 Additional claims (including for escalation), which in the opinion of
 the Management are recoverable on the contract, are recognized at the
 time of evaluating the job.
 
 (b) On supply of materials related to the transmission towers, revenue
 is recognized upon the delivery of goods to the client in accordance
 with the terms of contract. Sales include excise duty & other
 receivable from the customers but exclude VAT, wherever applicable.
 
 (c) Insurance claims are accounted for on cash basis.
 
 (d) Interest income is recognized on time proportion method basis
 taking into account the amounts outstanding and the rate applicable.
 
 (e) Dividend Income is accounted when the right to receive the same is
 established. The dividend declared by the subsidiary companies after
 the date of balance sheet are also included if they are in respect of
 accounting period which closed on or before the date of Company''s
 Balance Sheet.
 
 4.  Turnover:
 
 Turnover represents work certifed upto and after taking into
 consideration the actual cost incurred and Profit evaluated by adopting
 the percentage of the work completion method of accounting.
 
 Turnover also includes the revenue from the supply of material in the
 transmission tower contracts in accordance with the terms of contract.
 
 5.  Joint Venture:
 
 (a) Joint Venture Contracts under Consortium are accounted as
 independent contracts to the extent of work completion.
 
 (b) In Joint Venture Contracts under Profit Sharing Arrangement,
 services rendered to Joint Ventures are accounted as income on accrual
 basis, Profit or loss is accounted as and when determined by the Joint
 Venture and net Investment in Joint Venture is refected as investments
 or loans & advances or current liabilities.
 
 6.  Research and Development Expenses:
 
 All expenditure of revenue nature is charged to the Profit and Loss
 Account of the period. All expenditure of capital nature is capitalized
 and depreciation provided thereon, at the rates as applied to other
 assets of similar nature.
 
 7.  Employee Retirement Benefts:
 
 Retirement benefts in the form of provident fund and superannuation is
 a defined contribution scheme and contributions are charged to the 
 Profit and Loss Account for the year/period when the contributions 
 are due.
 
 Gratuity a defined beneft obligation is provided on the basis of an
 actuarial valuation made at the end of each year/period on projected
 Unit Credit Method.
 
 Leave encashment is recognized on the basis of an actuarial valuation
 made at the end of each year on projected Unit Credit Method.
 
 Actuarial gains/losses are immediately taken to Profit and loss account
 and are not deferred.
 
 8.  Fixed Assets and Depreciation:
 
 Fixed Assets are valued and stated at cost of acquisition less
 accumulated depreciation thereon. Revalued assets are stated at the
 revalued amount. Cost comprises the purchase price and any attributable
 cost of bringing the asset to its working condition of its intended
 use.
 
 Depreciation for the accounting period is provided on:
 
 (a) Straight Line Method, for assets purchased after 2-4-1987, at the
 rates and in the manner specifed in Schedule XIV to the Companies Act,
 1956.
 
 (b) Written Down Value Method, for assets acquired on or prior to
 2-4-1987, at the rates as specifed in Schedule XIV to the Companies
 Act, 1956.
 
 (c) Depreciation on revalued component of the assets is withdrawn from
 the Revaluation Reserve.
 
 (d) The depreciation on assets used for construction has been treated
 as period cost.
 
 (e) Depreciation on assets situated in countries outside India are
 accounted at the rates of depreciation prescribed as per the relevant
 local laws of such countries which are as follows except in case of
 Oman Branch where the depreciation is as per Schedule XIV.
 
 (f) Intangible assets are amortised uniformly over three years.
 
 9.  Impairment of Assets:
 
 On annual basis Company makes an assessment of any indicator that may
 lead to impairment of assets. An asset is treated as impaired when the
 carrying cost of asset exceeds its recoverable value. Recoverable
 amount is higher of an asset''s net selling price and its value in use.
 Value in use is the present value of estimated future cash flows
 expected to arise from the continuing use of an asset and from its
 disposal at the end of its useful life.
 
 An impairment loss is charged to the Profit and Loss Account in the year
 in which an asset is identifed as impaired.
 
 The impairment loss recognized in prior accounting period is reversed
 if there has been a change in the estimate of recoverable amount.
 
 10.  Investments:
 
 Investments that are readily realisable and intended to be held for not
 more than a year are classifed as current investments. All other
 investments are classifed as long-term investments. Current investments
 are carried at lower of cost and fair value determined on an individual
 investment basis. Long-term investments are carried at cost. However,
 provision for diminution in value is made to recognise a decline other
 than temporary in the value of long term investments.
 
 11.  Cash and cash equivalents:
 
 Cash and cash equivalents in the balance sheet comprise cash at bank
 and in hand and short-term investments with an original maturity of
 three months or less.
 
 12.  Inventories:
 
 (a) Raw materials are valued at cost, net of Excise duty and Value
 Added Tax, wherever applicable. Stores and spares, loose tools are
 valued at cost except unserviceable and obsolete items that are valued
 at estimated realizable value thereof. Costs are determined on FIFO
 method.
 
 (b) Stores and Construction Materials are valued and stated at lower of
 cost or net realisable value. The FIFO method of inventory valuation is
 used to determine the cost.
 
 (c) Work-in-Progress on construction contracts refects value of
 material inputs and expenses incurred on contracts including estimated
 Profits in evaluated jobs.
 
 (d) Work-in-progress from manufacturing operation is valued at cost and
 costs are determined on FIFO method.
 
 (e) Finished Goods are valued at cost or net realizable value,
 whichever is lower. Costs are determined on FIFO method.
 
 13.  Foreign Currency Translation:
 
 (a) Transactions in foreign currencies are recorded at the exchange
 rate prevailing on the date of transactions.
 
 (b) Current Assets and Current Liabilities are translated at the year
 end rate or forward contract rate.
 
 (c) Any Gain or Loss on account of exchange difference either on
 settlement or translation is recognized in the Profit and Loss Account.
 
 (d) Fixed Assets acquired in foreign currencies are translated at the
 rate prevailing on the date of Bill of Lading.
 
 (e) The transactions of Oman branch are accounted as a non-integral
 operation. The related exchange difference on conversion is accounted
 under Foreign Currency Translation Reserve Account.
 
 (f) The transactions of branches at Kenya, Nigeria, Algeria, Bhutan and
 Italy are accounted as integral operation.
 
 (g) The exchange gain/loss on long term loans to non integral
 operations being subsidiaries are restated to Foreign Exchange
 Translation Reserve Account and will be transferred to the Profit & loss
 account in the year when the disposal or otherwise transfer of the
 operations are done.
 
 14.  Borrowing Cost:
 
 Borrowing costs directly attributable to the acquisition or
 construction of qualifying assets are capitalized. Other borrowing
 costs are recognized as expenses in the period in which they are
 incurred. In determining the amount of borrowing costs eligible for
 capitalization during a period, any income earned on the temporary
 investment of those borrowings is deducted from the borrowing costs
 incurred.
 
 15.  Employee Stock Option Scheme:
 
 Employee stock options are evaluated and accounted on intrinsic value
 method as per the accounting treatment prescribed under Guidance Note
 on Accounting for Employee Share-based payments issued by the ICAI
 read with SEBI (Employee Stock Option Scheme & Employee Stock Purchase
 Scheme) Guidelines, 1999 issued by Securities and Exchange Board of
 India. Accordingly the excess of market value of the stock options as
 on the date of grant over the exercise price of the options is
 recognized as deferred employee compensation and is charged to Profit
 and loss account on graded vesting basis over the vesting period of the
 options. The un-amortized portion of the deferred employee compensation
 is reduced from Employee Stock Option Outstanding which is shown under
 Reserves and Surplus.
 
 16.  Taxation:
 
 Tax expenses comprise Current Tax and Deferred Tax.
 
 Current Tax is calculated after considering benefts admissible under
 Income tax Act, 1961. Deferred Tax is recognized on timing differences
 being the differences between the taxable incomes and accounting income
 that originate in one period and are capable of reversal in one or more
 subsequent periods. Deferred Tax Assets, subject to the consideration
 of prudence are recognized and carried forward only to the extent that
 there is a reasonable certainty that sufficient future taxable income
 will be available against which such Deferred Tax Assets can be
 realized. The tax effect is calculated on the accumulated timing
 difference at the year-end based on the tax rates and laws enacted or
 substantially enacted on balance sheet date.
 
 In situations where the Company has unabsorbed depreciation or carry
 forward tax losses, all deferred tax assets are recognized only if
 there is virtual certainty supported by convincing evidence that they
 can be realized against future taxable Profits.
 
 At each balance sheet date the Company re-assesses un-recognized
 deferred tax assets. It recognized unrecognized deferred tax assets to
 the extent that it has become reasonably certain or virtually certain,
 as the case may be, that sufficient future taxable income will be
 available against which such deferred tax assets can be realized.
 
 1 7.  Sales Tax/Cenvat Credit/VAT/WCT:
 
 Sales Tax/VAT/Works Contract Tax on construction contracts are
 accounted on payment basis. The cost of Material (inputs) is accounted
 at purchase cost net of excise duty and Value Added Tax, wherever
 applicable. The excise duty elements of materials (inputs) is debited
 to Modvat Credit Receivable A/c. and Value Added Tax element of
 materials (inputs) is debited to VAT Credit Receivable A/c., under
 the head Loans & Advances The excise duty and Value Added Tax payable
 on dispatch of goods are credited to Modvat Credit Receivable A/c. and
 VAT Credit Receivable A/c. by debiting the same to excise duty and
 Value Added Tax (sales tax), respectively in Profit and Loss A/c.
 
 18.  Provision, 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 refect the current best estimates.
 
 Contingent Liabilities are not recognized but are disclosed in the
 notes to accounts. Disputed demands in respect of Central Excise,
 Customs, 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 recognized nor disclosed in the financial statements.
 
 19.  Earning per share:
 
 Basic and Diluted earning per share is calculated by dividing the net
 Profit or loss for the period attributable to equity shareholders by the
 weighted average number of equity shares outstanding during the period.
 
 For the purpose of calculating diluted earning per share, the net Profit
 or loss for the period attributable to equity shareholders and weighted
 average number of equity shares outstanding during the period is
 adjusted for the effects of all dilutive potential equity shares.
 
 20.  Prior Period Items:
 
 Prior period items are included in the respective head of accounts and
 material items are disclosed by way of notes to accounts.