1.  Basis for preparation of Financial Statements:
 
 The Accounts have been prepared on a going concern basis under
 historical cost convention on accrual basis and in accordance with the
 generally accepted accounting principles in India and the provisions of
 Companies Act, 1956.
 
 2.  Use of Estimate :
 
 The preparation of financial statements in conformity with the
 generally accepted accounting principles requires management to make
 estimates and assumptions to be made that affect the reported amount of
 assets and liabilities on the date of the financial statements and the
 reported amount of revenues and expenses during the reporting period.
 The difference between the actual results and estimates are recognised
 in the period in which the results are known / materialized.
 
 3.  Revenue recognition:
 
 Revenues are recognized when it is earned and when there is no
 significant uncertainty as to its measurement and realization The
 specific revenue recognition policies are as under:
 
 a.  Revenue from Turnkey Contracts, which are either Fixed Price or
 Cost Plus contracts, is recognized based on work completion of activity
 or achievement of milestone.
 
 b.  Revenue from sale of products (excluding under Agency arrangements)
 is recognized upon passing of title of goods and/or on transfer of
 significant risk and rewards of ownership thereto.
 
 c.  Revenue from Services is recognized on performance of Service
 
 d.  Dividend income is recognized when the right to receive dividend is
 established.
 
 e.  Income such as annual maintenance contracts, annual subscriptions,
 Interest excluding interest on overdue receivables of energy bills,
 Facility Management is recognized as per contractually agreed terms on
 time proportion basis.
 
 f.  Other income is recognized when the right to receive is
 established.
 
 g.  Interest on overdue receivables of energy bills (Power Distribution
 Franchise) is accounted as & when recovered
 
 4.  Fixed Assets, Intangible Assets & Capital Work in Progress:
 
 Fixed Assets are stated at the cost of acquisition less accumulated
 depreciation and impairment losses, if any. All identifiable costs
 incurred up to the asset put to use are capitalized. Costs include
 purchase price (including non-refundable taxes/duties) and borrowing
 costs for the assets that necessarily take a substantial period of time
 to get ready for its intended use.
 
 Intangible Assets are stated at the cost of acquisitions less
 accumulated amortisation. In case of an internally generated assets
 cost includes all directly allocable expenditures. Intangible assets
 exclude the operating software, which forms an integral part of the
 hardware.
 
 Capital Work In Progress includes advances paid for acquisition of
 fixed assets and cost of fixed assets that are not yet ready for there
 intended use as at balance sheet date.
 
 5.  Depreciation :
 
 The depreciation on fixed assets is provided pro-rata to the period of
 use of Assets using the straight-line method based on Economic useful
 lives estimated by the management. The aggregate depreciation provided
 on the basis of estimated economic useful life is not less than the
 depreciation as calculated at the rates specified in Schedule XIV of
 the Companies Act, 1956.
 
 6.  Impairment of Assets:
 
 An asset is treated as impaired when the carrying amount of assets
 exceeds its recoverable value. An impairment loss is charged to the
 profit and loss account in the year in which an asset is identified as
 impaired. The impairment loss recognized in prior accounting period is
 reversed if there has been a change in the estimate of recoverable
 amount.
 
 7.  Investments:
 
 Current Investments are carried at the lower of cost or quoted / fair
 value computed scrip wise. Long Term Investments are stated at cost.
 Provision for diminution in the value of long-term investments is made
 only if such decline is other than temporary.
 
 8.  Inventories:
 
 a.  Inventories including Work-in-process and stores and spares are
 valued at the lower of cost and net realizable value.
 
 b.  Cost of inventories is generally ascertained on first in first out
 basis.
 
 9.  Foreign currency transactions:
 
 a.  Transactions in foreign currencies are normally recorded at the
 exchange rate prevailing on the date of the transaction.
 
 b.  Monetary foreign currency items are reported at the exchange rates
 as at Balance Sheet date.
 
 c.  In respect of transaction covered under forward exchange contracts,
 the difference between the exchange rates prevailing at the Balance
 Sheet date and rate on the date of the contract is recognised as
 exchange difference. The premium on forward contracts is amortised over
 the life of the contract
 
 d.  Non-monetary foreign currency items are carried at cost.
 
 e.  Any gains or losses on account of exchange difference either on
 settlement or on translation is recognized in the Profit and Loss
 Account
 
 f.  Foreign branch operations being integral part of Company''s
 operations, transactions thereat are reported as under:
 
 i.  Income and expenditure items at the exchange rate prevailing on the
 date of transaction.
 
 ii.  Monetary items using exchange rates at the Balance Sheet date.
 
 iii.  Non-monetary items at the exchange rates prevailing on the date
 of transaction.
 
 10.  Employee Benefits:
 
 a.  Short-term employee benefits are recognized as an expense at the
 undiscounted amount in the Profit and Loss Account of the year in which
 the related service is rendered.
 
 b.  Post employment and other long-term employee benefits are
 recognized as an expense in the profit and loss account of the year in
 which the employee has rendered services. The expense is recognized at
 the present value of the amount payable determined using actuarial
 valuation techniques. Actuarial gains and losses in respect of post
 employment and other long-term benefits are charged to the profit and
 loss account.
 
 c.  In respect of employee''s stock options, the excess of market price
 on the date of grant over the exercise price is recognized as deferred
 employee compensation expense, which are amortised over vesting period.
 
 11.  Provision for Current and Deferred Tax:
 
 a. Current Tax: Provision is made for income tax, under the tax payable
 method, based on the liability as computed after taking credit for
 allowances, exemptions and MAT credit entitlement for the year .
 Adjustments in books are made only after the completion of the
 assessment. In case of matters under appeal, due to disallowances or
 otherwise, full provision is made when the Company accepts the said
 liabilities.
 
 b. Deferred tax: The differences that result between the profit offered
 for income tax and the profit as per the financial statements are
 identified and thereafter a deferred tax asset or deferred tax
 liability is recorded for timing differences, namely the differences
 that originate in one accounting period and reverse in another.
 Deferred tax is measured based on the tax rates and tax laws enacted or
 substantively enacted at the Balance Sheet date.  Deferred tax asset is
 recognized only to the extent there is virtual certainty that the asset
 will be realized in the future. Carrying values of Deferred tax asset
 is adjusted for its appropriateness at each balance sheet date.
 
 12.  Provisions, Contingent Liabilities & Contingent Assets
 
 Provisions involving substantial degree of estimation in measurement
 are recognised when there is a present obligation as a result of past
 events and it is probable that there will be an outflow of resources.
 Contingent Liabilities are not recognised but are disclosed in the
 notes. Contingent Assets are neither recognised nor disclosed in the
 financial statements.
 
 13.  Financial Derivatives Hedging Transactions:
 
 In respect of Derivatives Contracts, premium paid, provision for losses
 on restatement and gains / losses on settlement are recognised in the
 Profit and Loss Account.
 
 14.  Borrowing Cost:
 
 a.  Borrowing costs, less any income on the temporary investment out of
 those borrowings, that are directly attributable to acquisition of an
 asset that necessarily takes a substantial period of time to get ready
 for its intended use are capitalized as a part of the cost of that
 asset
 
 b.  Other borrowing costs are recognized as expense in the period in
 which they are incurred.
 
 15.  Leases:
 
 a.  Assets taken on lease, under which the lessor effectively retains
 all the risks and rewards of ownership, are classified as operating
 lease. Operating lease payments are recognized as expense in the profit
 and loss account on a straight-line basis over the lease term.
 
 b.  Assets acquired under leases where all the risks and rewards of
 ownership are substantially transferred to company are classified as
 Finance leases. Such leases are capitalized at the inception of the
 lease at the lower of fair value or the present value of minimum lease
 payments and liability is created for an equivalent amount. Each lease
 rental paid is allocated between the liability and interest cost so as
 to obtain a constant periodic rate of interest on the outstanding
 liability for each period.
 
 16.  Provision for Doubtful Debts and Loans and Advances:
 
 Provision is made in the Accounts for doubtful debts and loans and
 advances when the management considers the debts and loans and advances
 to be doubtful of recovery.
 
 17.  Research and Development:
 
 a.  Revenue expenditure on Research and Development is charged to
 Profit and Loss Account in the period in which it is incurred.
 
 b.  Capital expenditure on Research and Development is included under
 the relevant fixed assets and depreciation thereon is provided as given
 in policy no. 5 above