A.  Basis of preparation of financial statements
 
 The financial statements have been prepared to comply in all material
 respects with the notified accounting standards by the Companies
 (Accounting Standards) Rules, 2006, (as amended) and the relevant
 provisions of the Companies Act, 1956 (''the Act''). The financial
 statements are prepared under the historical cost convention, on an
 accrual basis of accounting. The accounting policies applied are
 consistent with those used in the previous year.
 
 All assets and liabilities have been classified as current or
 non-current, wherever applicable as per the operating cycle of the
 Company as per the guidance as set out in the Revised Schedule VI to
 the Companies Act, 1956.
 
 B.  Accounting estimates
 
 The preparation of the 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 as at the date
 of financial statements and the results of operation during the
 reported period.  Although these estimates are based upon management''s
 best knowledge of current events and actions, actual results could
 differ from these estimates.
 
 C.  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 for
 its intended use. Borrowing costs relating to acquisition of fixed
 assets which takes 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 is provided as per the written- down value method for
 assets acquired on or after April 1, 1993, and as per the straight-line
 method for assets acquired up to March 31, 1993. On additions and
 disposals, depreciation is provided for from/up to the date of
 addition/disposal. The rates of depreciation are determined on the
 basis of useful lives of the assets estimated by the management, which
 are at rates specified in Schedule XIV to the Companies Act, 1956.
 
 Leasehold improvements are depreciated over the lease period of 5
 years, which is lower of the period of the lease or their estimated
 useful lives as determined by management.
 
 Individual assets costing less than Rs.5,000 are depreciated in full in
 the year they are put to use.
 
 D.  Impairment
 
 The carrying amounts of the Company''s 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 whenever
 the carrying amount of an asset exceeds its recoverable amount. The
 recoverable amount is the greater of the assets net selling price and
 its value in use. Impairment loss is recognized in the Statement of
 Profit and Loss or against revaluation surplus where applicable beyond
 the carrying value that would have prevailed by charging usual
 depreciation if there was no impairment.
 
 A previously recognized impairment loss is increased or reversed
 depending on changes in circumstances. However the carrying value after
 reversal is not increased beyond the carrying value that would have
 prevailed by charging usual depreciation if there was no impairment.
 
 E.  Investments
 
 Investments that are readily realisable and intended to be held for not
 more than a year are classified as current investments. All 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 recognize a
 decline other than temporary in the value of the investments.
 
 F.  Inventories
 
 Construction materials are valued at cost.  Identified direct materials
 remaining on completion of contract are valued at their estimated scrap
 value. Cost is determined on a first-in, first-out method and comprises
 the purchase price including duties and taxes (other than those
 subsequently recoverable by the enterprise from the taxing
 authorities).
 
 Tools and equipment are stated at cost less the amount amortised. Tools
 and equipment are amortised over their estimated useful lives ranging
 from 3 to 10 years. Cost is determined by the weighted average method.
 
 Machinery spares are valued at lower of cost and net realisable value.
 Cost is determined by the weighted average method.
 
 Unbilled work in progress: Cost of work yet to be certified/ billed, as
 it pertains to contract costs that relate to future activity on the
 contract, are recognised as unbilled work-in- progress provided it is
 probable that they will be recovered. Unbilled work-in-progress is
 valued at net realisable value.
 
 G.  Revenue recognition
 
 - On contracts
 
 Revenue from construction contracts is recognised on the basis of
 percentage completion method. The stage of completion of a contract is
 determined by the proportion that contract costs incurred for work
 performed upto the reporting date bear to the estimated total contract
 costs.
 
 Amounts recoverable in respect of the price and other escalation, bonus
 claims adjudication and variation in contract work required for
 performance of the contract to the extent that it is probable that they
 will result in revenue.
 
 In addition, if it is expected that the contract will make a loss, the
 estimated loss is provided for in the books of account.
 
 Contractual liquidated damages, payable for delays in completion of
 contract work or for other causes, are accounted for as costs when such
 delays and causes are attributable to the Company or when deducted by
 the client.
 
 - On insurance claims
 
 Insurance claims are recognized as income based on certainty of
 receipt.
 
 - Management Fee
 
 Management Fee income is recognized based on the contractual terms with
 the parties.
 
 H.  Advances from customers, progress payments and retention
 
 Advances received from customers in respect of contracts are treated as
 liabilities and adjusted against progress billing as per terms of the
 contract.
 
 Progress payments received are adjusted against amount receivable from
 customers in respect of the contract work performed.
 
 Amounts retained by the customers until the satisfactory completion of
 the contracts are recognised as receivables. Where such retention has
 been released by customers against submission of bank guarantees, the
 amount so released is adjusted against receivable from customers and
 the value of bank guarantees is disclosed as a contingent liability.
 
 I.  Foreign currency transactions
 
 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 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.
 
 iii.  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 recognized as income or as expenses
 in the year in which they arise. Exchange differences arising in
 respect of fixed assets acquired from outside India before accounting
 period commencing on or after December 7, 2006 are capitalized as a
 part of property,plant and equipment.
 
 iv.  Forward exchange contracts not intended for trading or speculation
 purposes
 
 The premium or discount arising at the inception of forward exchange
 contracts is amortized as expense or income over the life of the
 contract. Exchange differences on such contracts are recognized in the
 statement of profit and loss in the year in which the exchange rates
 change. Any profit or loss arising on cancellation or renewal of
 forward exchange contract is recognized as income or as expense for the
 year.
 
 J.  Retirement and other employee benefits
 
 Retirement benefits in the form of superannuation is a defined
 contribution scheme and the contributions are charged to the statement
 of profit and loss of the year when the contributions to the respective
 funds are due. The Company does not have any other obligations in
 respect of superannuation.
 
 The Company has a provident fund scheme, a defined benefit plan, for
 employees and a group gratuity and life assurance scheme for employees.
 The life assurance scheme is the gratuity benefits payable towards
 unexpired period of service in case of death. The group gratuity and
 life assurance scheme are defined benefit obligations and are provided
 for, on the basis of an independent actuarial valuation on projected
 unit credit method made at the end of each financial year.
 
 Provision for leave encashment, is made based on an independent
 actuarial valuation on projected unit credit method made at the end of
 each financial year.
 
 Actuarial gains/losses are immediately taken to statement of profit and
 loss account and are not deferred.
 
 K.  Earnings Per Share
 
 Basic earnings per share is calculated by dividing the net profit or
 loss after tax for the year attributable to equity shareholders by the
 weighted average number of equity shares outstanding during the year.
 The number of shares used in computing diluted earnings per share
 comprises the weighted average number of shares considered for deriving
 basic earnings per share and also the weighted average number of shares
 which could have been issued on conversion of all dilutive potential
 equity shares.
 
 L.  Taxation
 
 Current tax
 
 Provision for current tax is recognized based on the estimated tax
 liability computed after taking credit for allowances and exemptions in
 accordance with the Income Tax Act, 1961.
 
 Minimum Alternative Tax (MAT) credit is recognised as an asset only
 when and to the extent there is convincing evidence that the company
 will pay normal income tax during the specified period. In the year in
 which the MAT credit becomes eligible to be recognized as an asset in
 accordance with the recommendations contained in Guidance Note issued
 by the Institute of Chartered Accountants of India, the said asset is
 created by way of a credit to the Profit and Loss Account and shown as
 MAT Credit Entitlement. The Company reviews the same at each balance
 sheet date and writes down the carrying amount of MAT Credit
 Entitlement to the extent there is no longer convincing evidence to the
 effect that Company will pay normal Income Tax during the specified
 period.
 
 Deferred tax
 
 Deferred tax assets and liabilities are recognized for the future tax
 consequences attributable to timing differences between the financial
 statements'' carrying amounts of existing assets and liabilities and
 their respective tax basis. Deferred tax assets and liabilities are
 measured using the enacted tax rates or tax rates that are
 substantively enacted at the Balance Sheet dates. The effect on
 deferred tax assets and liabilities of a change in tax rates is
 recognised in the period that includes the enactment date. Where there
 is unabsorbed depreciation or carry forward losses, deferred tax assets
 are recognized only if there is virtual certainty supported by
 convincing evidence that they can be realised against future taxable
 profits. Other deferred tax assets are recognized only to the extent
 there is reasonable certainty of realization in the future. Such assets
 are reviewed at each Balance Sheet date to reassess realization.
 
 M.  Leases
 
 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 statement of profit and loss account on a straight-line basis
 over the lease term.
 
 N.  Provisions and Contingent Liabilities
 
 A provision is recognized when the Company has a present obligation as
 a result of past events and 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 their
 present value and are determined based on management''s best estimates
 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 disclosed in respect of possible obligations
 that arise from past events, whose existence would be confirmed by the
 occurrence or non-occurrence of one or more uncertain future events not
 wholly within the control of the Company.
 
 O.  Accounting for Joint Venture Contracts
 
 In respect of contract executed in Integrated Joint Ventures under
 profit sharing arrangement (assessed as AOP under Income Tax laws), the
 services rendered to the Joint Ventures is accounted as income on
 accrual basis. The share of profit / loss is accounted based on the
 audited financial statements of Joint Ventures and is reflected as
 Investments.
 
 P.  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.