1.  Basis of Accounting
 
 The Company maintains its accounts on accrual basis.  Management makes
 estimates and technical and other assumptions regarding the amounts of
 income and expenses in accordance with Indian GAAP in the preparation
 of the financial statements. Difference between the actual results and
 estimates are recognised in the period in which they are determined.
 
 2.  Fixed Assets
 
 Fixed assets are stated at cost of acquisition including attributable
 interest & financial costs till the date of acquisition/ installation
 of the assets and improvement thereon less accumulated depreciation /
 amortisation and impairment if any.  Intangible assets comprise of
 licence fees, other implementation cost for software (ERP) and other
 application softwares acquired for inhouse use.
 
 3.  Depreciation
 
 Depreciation on fixed assets is provided:
 
 i) In respect of buildings and sheds, furniture and office equipments
 on the written down value method (pro-rata on additions and deletions
 of the year) at rates prescribed in Schedule XIV of the Companies Act,
 1956.
 
 ii) In respect of plant & machinery, heavy vehicles, light vehicles,
 helicopter, aircraft and speed boat on the straight line method at
 rates prescribed in schedule XIV of the Companies Act, 1956 on a
 pro-rata basis.
 
 iii) In respect of computers depreciation is provided on straight line
 basis over a period of three years on a pro- rata basis.
 
 iv) The depreciation on assets used for construction has been treated
 as period cost.
 
 v) Software and implementation costs including users licence fees of
 the Enterprise Resourse Planning (ERP) system and other application
 software costs are amortised over a period of 5 years.
 
 vi) Fixed Assets includes cost incurred on the Lease hold Improvements
 at 247 park which is being amortised over a period of Nine years.
 
 4.  Investments
 
 Investments are classified as long-term and current investments.
 Long-term investments are shown at cost or written down value (in case
 of other than temporary diminution) and current investments are shown
 at cost or market value whichever is lower.
 
 5.  Employee Benefits
 
 i) Defined Contribution plan
 
 Contribution to provident fund and superannuation fund is accounted on
 accrual basis.
 
 ii) Defined Benefit plan
 
 Gratuity is charged to revenue on the basis of actuarial valuation and
 in case of daily rated workmen on actual basis computed on tenure of
 service as at the end of the year.
 
 iii) Other Benefits
 
 Short term and long term compensated absenses are provided for based on
 actuarial valuation.  The actuarial valuation is done as per projected
 unit credit method.
 
 The obligation is measured at the present value of the estimated future
 cash flows. The discount rates used for determining the present value
 of the obligation under
 
 defined benefit plans, is based on market yields on Government
 securities as at the Balance Sheet date, having maturity periods
 approximating to the terms of the related obligations.
 
 6.  Inventories
 
 a) The stock of stores, spares and embedded goods and fuel is valued at
 cost (weighted average basis), or net realisable value whichever is
 lower.
 
 b) Work-in-Progress is valued at the contract rates and site
 mobilisation expenditure of incomplete contracts is stated at cost.
 
 c) Certain loose plant, tools & service equipments costing below Rs. 5
 lacs are valued at proportionate written down value @ 3% p.m. over a
 period of 32 months.
 
 d) Site mobilisation expenses are presented as a deduction from
 advances from contractees to the extent funded by such advances.
 
 7.  Provisions, Contingent liabilities and 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 resourses.
 Contingent liabilities are not recognised but are disclosed in the
 notes. Contingent assets are neither recognised nor disclosed in the
 financial statements.
 
 8.  Borrowing costs
 
 Borrowing costs that are attributable to the acquisition, construction
 or production of a qualifying asset are capitalised.  Other borrowings
 costs are expensed out.
 
 9.  Foreign Exchange Translation of Foreign Projects and Accounting of
 Foreign Exchange Transactions
 
 a) Current assets and current liabilities are translated at the
 exchange rate prevailing on the last day of the year.
 
 b) Gains or losses arising out of remittance / translations at the
 year-end are credited / debited to the profit and loss account for the
 year except in cases where they relate to acquisition of Fixed assets,
 in which case they are adjusted to the carrying cost of such assets.
 
 c) Foreign exchange transactions are converted into Indian rupees at
 the prevailing rate on the date of the transaction.
 
 d) Exchange differences arising on contracts are recognised in the
 period in which they arise and the premium paid / received is accounted
 as expense / income over the period of the contract.
 
 10.  Financial Derivatives & Hedging transactions
 
 Financial derivatives and hedging contracts are accounted on the date
 of their settlement and realised gain/loss in respect of settled
 contracts is recognised in the profit & loss account along with the
 underlying transactions.
 
 11.  (i) Accounting of construction contracts
 
 The Company follows the percentage completion method, based on the
 stage of completion at the balance sheet date, taking into account the
 contractual price and revision thereto by estimating total revenue and
 total cost till completion of the contract and the profit so determined
 has been accounted for proportionate to the percentage of the actual
 work done.  Revenue is recognized as follows:
 
 a) In case of Item rate contracts on the basis of physical measurement
 of work actually completed at the balance sheet date.
 
 b) In case of Lumpsum contracts, revenue is recognized on the
 completion of milestones as specified in the contract or as identified
 by the management.  Foreseeable losses are accounted for as and when
 
 they are determined except to the extent they are expected to be
 recovered through claims presented or to be presented to the customer
 or in arbitration.  Claims are accounted as income in the year of
 receipt of arbitration award or acceptance by client of evidence of
 acceptance received.
 
 (ii) Accounting of Supply Contracts
 
 Revenue from supply contract is recognized when the substantial risk
 and rewards of ownership is transferred to the buyer.
 
 12.  Accounting for Joint Venture Contracts
 
 (a) Contracts executed in Joint Venture under work sharing arrangement
 (consortium) are accounted in accordance with the accounting policy
 followed by the Company as that of an independent contract to the
 extent work is executed.
 
 (b) In respect of contracts executed in Integrated Joint Ventures under
 profit sharing arrangement (assessed as AOP under Income tax laws), the
 services rendered to the Joint Ventures are accounted as income on
 accrual basis. The profit / loss is accounted for, as and when it is
 determined by the Joint Venture and the net investment in the Joint
 Venture is reflected as investments, loans & advances or current
 liabilities.
 
 13.  Taxation
 
 The tax expense comprises of current tax & deferred tax charged or
 credited to the profit and loss account for the year.  Current tax is
 calculated in accordance with the tax laws applicable to the current
 financial year. The deferred tax charge or credit is recognised using
 the tax rates and tax laws that have been enacted by the balance sheet
 date. Where there are unabsorbed depreciation or carry forward losses,
 deferred tax assets are recognised only if there is virtual certainty
 of realisation of such assets. Other deferred tax assets are recognised
 only to the extent there is reasonable certainty of realisation in
 future. At each balance sheet date, recognised and unrecognised
 deferred tax assets are reviewed.
 
 14.  Leases
 
 Lease rentals in respect of assets acquired under operating lease are
 charged to Profit and Loss account.
 
 15.  Impairment of Assets
 
 The Company makes an assessment of any indicator that may lead to
 impairment of assets on an annual basis. An asset is treated as
 impaired when the carrying cost of the asset exceeds its recoverable
 value, which is higher of net selling price and value in use. Any
 impairment loss is charged to profit and loss account in the year in
 which it is identified as impaired.
 
 16.  Employees Stock Option Plan
 
 In respect of the stock options granted pursuant to the Companys stock
 option scheme, market value of the Companys shares as on the grant
 date was equal to the par value for the options granted, hence no
 accounting entries as per ESOP guidelines are required to be made.