BASIS OF PREPARATION
 
 The financial statements have been prepared to comply in all material
 respects with the notified accounting standards by the Companies
 (Accounting Standards] Rules 2006 las amended) 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.
 
 USE OF ESTIMATES
 
 The preparation of financial statements in conformity with generally
 accepted accounting principles requires management to make estimates
 and assumptions that affect the reported amounts of assets and
 liabilities and disclosure of contingent'' liabilities at the date of
 the financial statements and the results of operations during the
 reporting period end. Although these estimates are based upon
 management''s best knowledge of current events and actions, actual
 results could differ from these estimates.
 
 a] Revenue Recognition
 
 Revenue is recognized to the extent that it is probable that the
 economic benefits will flow to the Company and the revenue can be
 reliably measured.
 
 Revenue on Operation and Maintenance contracts are recognized over the
 period of the contract as per the terms of the contract.
 
 Revenue from construction contracts is recognized on the basis of
 percentage completion method. The percentage of work completed is
 determined by the expenditure incurred on the job till each review date
 to the total expected expenditure of the contract.
 
 Construction contracts 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 tosses are fully provided for in the respective accounting
 period.
 
 Revenue on Developer Fees is recognized on the accrual basis,
 
 Interest Income is recognised on a time proportion basis taking into
 account the amount outstanding and the rate applicable.
 
 Dividend is recognised when the shareholders'' right to receive payment
 is established by the balance sheet date.  Dividend from subsidiaries
 is recognised even if same is declared after the balance sheet date but
 pertains to period on or before the date of balance sheet as per the
 requirement of Schedule VI of the Companies Act, 1956.
 
 b) Fixed Assets and depreciation
 
 Fixed assets are stated at cost less accumulated depreciation and
 impairment losses, if any. Cost comprises the purchase price and any
 attributable cost of bringing the asset to its working condition of its
 intended use. Borrowing costs relating to acquisition of fixed assets
 which take a substantial period of time to get ready for its intended
 use are also included to the extent they relate to the period till such
 assets are ready to be put to use.
 
 Depreciation on Fixed Assets is provided on the Straight Line Method
 t''SLMl at the rates and in the manner laid down in Schedule XIVof the
 Companies Act, 1956. Depreciation on assets purchased/ installed during
 the year is calculated on a pro-rata basis from the date of such
 purchase / installation.
 
 Intangible assets are rights of Operations and Maintenance (''O&M'')
 which results in an O&M income stream for the Company for a period of
 14 years. The rights are therefore amortised over the period of 14
 years on SLM basis.
 
 c) Impairment
 
 The carrying amounts of assets are reviewed at each balance sheet date
 if there is any indication of impairment based on internal/external
 factors. An impairment loss is recognized wherever the carrying amount
 of an asset exceeds its recoverable amount. The recoverable amount is
 the greater of the asset''s net selling price and value in use. In
 assessing value in use, the estimated future cash flows are discounted
 to their present value at the weighted average cost of capital.
 
 After impairment, depreciation is provided on the revised carrying
 amount of the asset over its remaining useful life.
 
 d) Investments
 
 Investments that are readily realisable and intended to be held for not
 more than a year are classified as current investments. AH other
 investments are classified 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.
 
 e) Inventories
 
 Stores and materials are valued at lower of cost and net realizable
 value. Net realizable value is the estimated selling price less
 estimated cost necessary to make the sale. The FIFO method of inventory
 valuation is used to determine the cost.
 
 f) Provision for Taxation
 
 Tax expense comprises of current and deferred tax. Current income tax
 is measured at the amount expected to be paid to the tax authorities in
 accordance with the Indian Income Tax Act.
 
 Deferred income taxes reflects the impact of current year timing
 differences between taxable income and accounting income for the year
 and reversal of timing differences of 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
 and deferred tax liabilities are offset, if a legally enforceable right
 exists to set-off current tax assets against current tax liabilities
 and the deferred tax assets and the deferred tax liabilities related to
 the taxes on income levied by same governing taxation laws. Deferred
 tax assets are recognised only to the extent that there is reasonable
 certainty that sufficient future taxable income will be available
 against which such deferred tax assets can be realised. In situations
 where the Company has unabsorbed depreciation or carry forward tax
 losses, all deferred tax assets are recognised only if there is virtual
 certainty supported by convincing evidence that they can be realised
 against future taxable profits.
 
 At each balance sheet date the Company re-assesses unrecognised
 deferred tax assets. It recognises unrecognised 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 realised.
 
 The carrying amount of''deferred tax assets are 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, as the case may be, that sufficient future taxable
 income will be available against which deferred tax asset can be
 realized.  Any such write-down is reversed to the extent that it
 becomes reasonably certain or virtually certain, as the case may be,
 that sufficient future taxable income will be available.
 
 g) Operating Lease
 
 Leases where the lessor effectively retains substantially all the risks
 and benefits of ownership of the leased term are classified as
 operating leases. Operating lease payments are recognized as an expense
 in the Profit and Loss Account on a straight line basis over the lease
 term.
 
 h) Earnings per share
 
 Basic and diluted earnings per share are calculated by dividing the net
 profit or loss for the year attributed to equity shareholders by the
 weighted average number of equity shares outstanding during the year.
 
 For the purpose of calculating diluted earnings per share, the net
 profit or loss for the year attributable to equity shareholders and the
 weighted average number of shares outstanding during the year are
 adjusted for the effects of all dilutive potential equity shares.
 
 i) Provisions, Contingent Liabilities and Contingent Assets
 
 A provision is recognised when the Company 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 reflect the current best
 estimates Contingent Liabilities are not recognised but disclosed in
 notes to accounts. Contingent assets are neither recognised nor
 disclosed in financial statements.
 
 j) Share Issue Expenses
 
 Share Issue Expenses are charged off to the Security Premium Account,
 if available, or to the Profit and Loss Account.
 
 k) Employee Benefits
 
 Retirement benefits in the form of Provident Fund is a defined
 contribution scheme and contributions are charged to the Profit and
 Loss Account for the year when the contributions are due.
 
 Gratuity liability, a defined benefit obligation, is provided for on
 the basis of, an actuarial valuation on projected unit credit method,
 made at the end of each financial year,
 
 Leave encashment liability is recognised on the basis of an actuarial
 valuation on projected unit credit method made at the end of each
 financial year
 
 Actuarial gains/losses are immediately taken to Profit and Loss account
 and are not deferred.
 
 1) Employee Share - based payment plans 1''ESOP'')
 
 The Company uses the intrinsic value (excess of the share price on the
 date of grant over the exercise price] method of accounting prescribed
 by the Guidance Note CGN''I on Accounting for employee share-based
 payments'' issued by the Institute of Chartered Accountants of India
 1''ICAI'') I''the guidance note'') to account for its Employee Stock Option
 Scheme (the ''ESOP'' Scheme) read with SEBI (Employees stock option
 scheme or Employees Stock Purchase) Guidelines,1999 Compensation
 expense is amortised over the vesting period of the option on SLM
 basis.
 
 m) Foreign currency translation
 
 FOREIGN CURRENCY TRANSACTIONS
 
 Initial recognition :
 
 Foreign currency transactions are recorded in the reporting currency by
 applying to the foreign currency amount the exchange rate between the
 reporting currency and the foreign currency at the date ol the
 transaction.
 
 Conversion :
 
 Foreign currency monetary items are reported using the closing rate.
 Non-monetary items which are carried in terms of historical cost
 denominated in a foreign currency are reported using the exchange rate
 at the date of the transaction; non-monetary items which are carried at
 fair value or other similar valuation denominated in a foreign currency
 are reported using the exchange rates that existed when the values were
 determined.
 
 Exchange differences :
 
 Exchange differences arising on the settlement of monetary items or on
 reporting company''s monetary items at rates different from those at
 which they were initially recorded during the year, or reported in
 previous financial statements, are recognised as income or as expenses
 in the year in which they arise except those arising from investments
 in non- integral operations.
 
 n) Cash and cash equivalents
 
 Cash and cash equivalents in the Cash Flow Statement comprise cash at
 bank and in hand and short-term investments with an original maturity
 of three months or less.