a) 15,238 Equity Shares of Rs. 100 each (since converted into 1,52,380
 equity shares of Rs.10 each) were allotted as fully paid up pursuant to
 the Amalgamation Order (1966) under Sector/396 of the Companies
 Act,1956.
 
 b) 75,000 Equity Shares of Rs. 100 each (since converted Into 7,50,000
 equity shares of Rs. 10 each) were allotted as fully paid up in
 consideration for transfer of ownership of some properties.
 
 c) 1,82,50,000 Equity Shares of Rs. 10 each fully paid have been allotted
 during the financial year 2009-10 to the President of India at premium
 of Rs. 30 per equity share.
 
 1) Accounting Convention
 
 The Financial Statements are prepared under the historical cost
 convention and comply in all material aspects with generally accepted
 accounting principles in India, the Accounting Standards issued by the
 Institute of Chartered Accountants of India and the relevant provisions
 of the Companies Act, 1956.
 
 2) Use of Estimates
 
 The preparation of Financial Statements in conformity with the
 generally accepted accounting principles requires management to make
 estimates and assumptions in respect of certain items that affect the
 reported amounts of assets and liabilities as at the date of the
 financial statements and the reported amount of income and expenses
 during the ''repeating period. Actual results/outcome could differ from
 estimates. Any revision in accounting estimates is recognized
 prospectively in the period in which such results do materialize.
 
 3) Dispute Income Tax and Sales Tax Demand
 
 The disputed Income Tax and Sales Tax demands in respect of assessments
 completed and against which appeals have been filed are disclosed by
 way of contingent liability and are charged to accounts in the year of
 settlement.
 
 4) Fixed Assets and Depreciation
 
 a) Fixed Assets
 
 i) Fixed assets are valued at cost of acquisition, net of ''Grant in
 aid'' where applicable.
 
 ii) Fixed Assets retired from active use and held for disposal are
 stated at the lower of book value and/or net realizable value and are
 shown separately in the financial statements.  Loss determined, if any,
 is recognized in the profit and loss statement
 
 iii) In cases where receipts/scrutiny of final bills of the
 contractors/suppliers, settlement of the rates to be paid for extra
 items and price escalation etc. are pending, the capitalization is
 effected provisionally, based on value work completed as certified by
 Project Engineers.  Difference, if any, Is proposed to be accounted for
 in the year in which the final bills are settled.
 
 iv) Intangible Assets (Software) are stated at their cost of
 acquisition.
 
 b) Depreciation
 
 Depreciation on fixed assets is provided pro-rata, on Straight Line
 Method on the following rates:
 
 i) On fixed assets existing as on 31.3.1987, at the rates already
 adopted in earlier years.
 
 ii) On addition in the Fixed Assets during the period from 01.04.1987
 to 15.12.1993, at the pre-revised rates as per the schedule XIV of the
 Companies Act, 1956.
 
 iii) On additions made to fixed assets from 16.12.1993 onwards, as per
 revised rates prescribed in schedule XIV of the Companies Act, 1956.
 
 iv) On Intangible Assets (Software), cost is amortized over a period of
 legal right to use or 3 years, whichever is earlier.
 
 The rates at which depreciation has been charged are given in annexure
 A.
 
 5) Investments
 
 Long term investments are stated at cost. Provision for diminution in
 value of each investment, if any, is made, to recognize the decline,
 other than of temporary nature.
 
 6) Valuation of Inventories
 
 Stocks and stores including stock of crockery, cutlery, glassware and
 linen etc., in hand as well as in circulation are valued at cost on
 FIFO basis or realizable value whichever is less.
 
 7) Execution of Projects for Clients
 
 i) Value of work done in respect of projects executed including cost
 plus/deposit/ turnkey/project management work are shown in the accounts
 at best estimates by the management after deduction for likely
 rejections, if any, by the client.
 
 ii) Indirect costs are treated as period costs and are charged to
 profit and loss account in the year of incurrence.
 
 8) Deferred revenue Expenditure
 
 Payment of compensation to employees retiring under Voluntary
 Retirement Scheme Is treated as deferred revenue expenditure and
 written off over a period ending 31.3.2010.
 
 9) Provision. Contingent Liabilities and Contingent Assets
 
 i) Provisions involving substantial degree of estimation in measurement
 are recognized when there is a present obligation as a result of past
 events and it is probable that there will be outflow of sources.
 
 ii) Where as a result of past events, there is a possible obligation
 that may, but probably will not, require any outflow of resources, no
 provision is recognized but appropriate disclosure is made in the notes.
 
 iii) Contingent assets are neither recognized nor disclosed in the
 financial statements.
 
 10) Employees Benefits
 
 A) Provident Fund
 
 Company''s contributions to Provident Fund are charged to Profit & Loss
 account.
 
 B) Gratuity
 
 i) Provision for Gratuity Is made on the basis of Actuarial Valuation.
 
 ii) Contribution towards Gratuity scheme is based on the premium
 contribution called for by the Life Insurance Corporation of India
 (LIC) with whom the Company has entered into an agreement. As per the
 terms of its scheme, LIC settles the claim for the full value of the
 gratuity paid by the Company to its employees, as and when such a
 payment is made.
 
 C) Leave Encashment
 
 The provision for leave encashment is made on the basis of actuarial
 valuation.
 
 11) Deferred Taxation
 
 i) Deferred tax is provided during the year, using the liability method
 on all temporary differences at the Balance sheet date between the tax
 basis of assets and liabilities and their carrying amounts for
 financial reporting purposes in accordance with the Accounting Standard
 (AS-22).
 
 iii) Deferred Tax Asset is recognized, subject to consideration of
 prudence, only to the extent that there is reasonable certainty that
 sufficient taxable profits will be available against which such
 Deferred Tax Assets can be realized. In situations where the company
 has any unabsorbed depreciation or carry forward tax losses, deferred
 tax assets are recognized only if there Is virtual certainty supported
 by convincing evidence that they can be realized against future taxable
 profits.
 
 iii) Deferred Tax Assets and Liabilities are measured at the rates that
 are expected to apply to the period when the asset is realized or the
 liability is settled, based on tax rates (and tax laws) that have been
 enacted or substantially enacted at the balance sheet date.
 
 12) Government Grant
 
 i) The Government grant received for up gradation of properties is
 recognized as income from the year in which respective properties are
 upgraded and to the extent grant related costs incurred i.e. written
 off as depreciation, revenue expenditure each year.
 
 ii) The balance of Government Grant to the extent not adjusted as at
 the close of the year, is carried in the financial statements as
 ''Deferred Government Grant'' after ''Reserves & Surplus.''
 
 13) Revenue Recognition
 
 i) Income from Projects is recognized on the percentage of completion
 method including in respect of cost plus/deposit/turnkey/project
 management work. In terms of this method, revenue is recognized in
 proportion to the actual costs incurred as against the total estimated
 cost of project under execution. The determination of revenues under
 this method involves making estimates, some of which are of technical
 nature, concerning, where relevant, the percentages of completion,
 costs of completion (including cost of rejection), expected revenues
 etc.
 
 ii) Income from services rendered in respect of projects /license
 fees/Management fee are accounted for (exclusive of service tax) as per
 terms of the agreement. However, where such service charges/fees are
 not realised in cash for significant period the accrual thereof is
 postponed to be accounted for on receipt.
 
 iii) Revenue from sales (net of returns and discounts) is recognized on
 transfer of substantial risks and rewards to the customers. Sales tax
 and value added tax are excluded.
 
 iv) Interest income, other than management fees income/interest on
 loans and advances from subsidiary companies which are accounted for on
 receipt basis or on receipt of Tax deduction certificate because of
 liquidity problem in those companies referred to in (ii) above, and
 income from investments are accounted for on accrual basis at the
 contracted rates and/or at the time of establishment of right to
 receive respectively.  i
 
 v) Interest/Damages on overdue amounts recoverable from licensees are
 accounted for on realization basis.
 
 14) Foreign Currency Transactions
 
 a) Transactions in foreign exchange:
 
 i) 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 of the
 transaction.
 
 ii) Conversion
 
 Foreign currency monetary Items are reported using the closing rate
 Non-monetary Items that are carried in terms of historical cost
 denominated In a foreign currency are reported using the exchange rate
 at the date of the transaction.
 
 iii) Exchange Differences
 
 Exchange differences arising on the settlement of monetary items or on
 recording/ 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 recognized as income or
 as expenses in the year in which they arises. Exchange differences on
 liabilities relating to fixed assets acquired from outside India are
 added to the cost of such assets.
 
 b) Money changing business
 
 i) The transactions concluded during the period are recorded based on
 the actual rate realize.
 
 ii) Foreign currency'' balances as at close of the year are converted at
 the year end rates.
 
 iii) Income from money changing business as reflected in the accounts
 is net of cost of sale of currency.
 
 15.  Borrowing Cost
 
 i) Borrowing Costs if any, that are directly attributable to the
 acquisition/construction of qualifying assets are capitalized as part
 of the cost of the respective assets.
 
 ii) Other borrowing costs are expensed in the year in which they are
 incurred.
 
 16. Prior Period/Extraordinary Items
 
 i) All prior period items which are material and which arise in the
 current period as a result of ''errors or omissions'' in the preparation
 of prior period''s financial statements are separately disclosed in the
 current Statement of Profit & Loss. However differences in actual
 income/expenditure arising out of over or under estimation'' in prior
 period are not treated as prior period income/expenditure.
 
 ii) All extraordinary items, i.e. gains or losses which arise from
 events or transactions which are distinct from the ordinary activities
 of the company and which are material are separately disclosed in the
 statement of accounts.
 
 17.   Claims          
 
 Supplementary claims including insurance claims are accounting for on
 acceptance/receipt basis.