i Accounting Convention
 
 Financial statements are prepared in accordance with applicable
 Accounting Standards under the historical cost convention on accrual
 basis.
 
 ii Use of Estimates
 
 The presentation of financial statements requires certain estimates and
 assumptions. These estimates and assumptions 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. Difference between the actual result and estimates are
 recognized in the period in which the results are known / materialized.
 
 iii Revenue Recognition
 
 a.  Construction Contracts
 
 Running Account Bills for work completed are recognized on percentage
 of completion method based on completion of physical proportion of the
 contract work. Income on account of claims and extra item work are
 recognized to the extent Company expects reasonable certainty about
 receipts or acceptance from the client. When it is probable that total
 contract cost will exceed the total contract revenue, the expected loss
 is recognized immediately.
 
 b.  Others
 
 Dividends are recorded when the right to receive the payment is
 established. Interest income is recognized in time proportionate basis.
 
 iv Fixed Assets
 
 Fixed Assets are stated at cost less accumulated depreciation less
 impairment losses, if any. Cost is inclusive of all identifiable
 expenditure incurred to bring the assets to their working condition for
 intended use. When an asset is disposed off, demolished or destroyed,
 the cost and related depreciation are removed from the books of
 accounts and resultant profit or loss, is reflected in the Statement of
 Profit & Loss. Direct cost as well as related incidental and
 identifiable expenses incurred on acquisition of fixed assets that are
 not yet ready for their intended use or put to use as at the Balance
 Sheet date are stated as Capital Work in Progress.
 
 v Depreciation
 
 Depreciation is provided on the straight line method on all depreciable
 assets at the rate prescribed in schedule XIV of the Companies Act,
 1956 on pro-rata basis except that considering the useful life based on
 technical evaluation by the management, higher rate than the prescribed
 rates are applied on a few shuttering items of Machinery @ 30%, on
 office equipments @ 12.5%, on all vehicles @ 15% and on remaining Plant
 and Machineries which are acquired on or after 1st October, 2005 @
 12.5% .
 
 vi Impairment of Fixed Assets
 
 The carrying cost of assets is reviewed at each Balance Sheet date to
 determine whether there is any indication of impairment of assets.  If
 any indication exists, the recoverable value of such assets is
 estimated. An impairment loss is recognized when the carrying cost of
 assets exceeds its recoverable value. An impairment loss is reversed,
 if there has been a change in the estimates used to determine the
 recoverable amount and recognized in compliance with AS - 28.
 
 vii Investments
 
 Investments are stated at cost. Provision for diminution in the value
 of long term investments is made only if such a decline is other than
 temporary in the opinion of the Management.
 
 viii Retirement Benefits
 
 a.  Gratuity liability is covered by payment thereof to Gratuity fund,
 the defined benefit plan under Group Gratuity Cash Accumulation Scheme
 of Life Insurance Corporation of India and SBI Life Insurance under
 irrevocable trust. The Company''s liability towards gratuity are
 determined on the basis of actuarial valuation done by independent
 actuary.
 
 b.  Contribution to Provident Fund and Superannuation Fund, the defined
 contribution plans as per the schemes are charged to Statement of
 Profit & Loss.
 
 c.  Provision for Leave encashment liability is made based on actuarial
 valuation as at the Balance Sheet date.
 
 d.  All other short-term benefits for employees are recognized as an
 expense at the undiscounted amount in the Statement of Profit & Loss of
 the year in which the related service is rendered.
 
 ix Inventories
 
 a.  Construction materials, stores, spares and tools are valued at
 lower of cost or net realizable value. Cost include cost of purchase
 and other expenses incurred in bringing inventory to their respective
 present location and condition. Cost is determined using FIFO method of
 inventory valuation.
 
 b.  Work in progress is valued at lower of cost or net realizable
 value. In case where work is completed but Running Account bill can not
 be raised on client due to contractual conditions, the work in progress
 is valued at contract rates.
 
 x Provision for Taxes
 
 a.  Current Tax:
 
 Tax on income for the current period is determined on the basis of
 estimated taxable income and tax credit computed in accordance with
 provisions of the Income Tax Act, 1961.  b . Deferred Tax:
 
 Deferred tax is recognized, on timing differences, being the difference
 between the taxable income and accounting income that originate in one
 period and are capable of reversal in one or more subsequent periods.
 It is calculated using the applicable tax rates and tax laws that have
 been enacted or substantially enacted as on the balance sheet date.
 Deferred tax assets which arises mainly on account of unabsorbed losses
 or unabsorbed depreciation are recognized and carried forward only to
 the extent that there is virtual certainty supported by convincing
 evidence that sufficient future taxable income will be available
 against which such deferred tax assets can be realized.
 
 xi Foreign Currency Transaction
 
 a.  Transactions denominated in Foreign Currency are recorded at the
 exchange rate prevailing on the date of transaction.
 
 b.  In respect of transactions covered by forward exchange contracts,
 the difference between the forward rate and the exchange rate at the
 date of the transaction is recognized as income or expense over the
 life of the contract. Any income or expense on account of exchange rate
 difference either on settlement or on translation is recognized in
 Statement of Profit & Loss.
 
 c.  Assets & Liabilities remaining unsettled at the end of the year,
 other than covered by forward exchange contracts are translated at
 exchange rate prevailing at the end of the year and the difference is
 adjusted in Statement of Profit & Loss.
 
 xii Borrowing Costs
 
 Borrowing Costs that are attributable to the acquisition or
 construction of qualifying assets are capitalized as part of the cost
 of such assets. A qualifying asset is one that takes necessarily
 substantial period of time to get ready for its intended use. All other
 borrowing costs are charged to revenue.
 
 xiii Provisions, Contingent Liabilities and Contingent Assets
 
 Provisions involving substantial degree of estimation in measurement
 are recognized when there is a present obligation as a result of past
 events and that probability requires an outflow of resources.
 
 A disclosure for a contingent liability is made when there is a
 possible obligation or a present obligation that may, but probably will
 not, require an outflow of resources. Where there is a possible
 obligation or a present obligation in respect of which the likelihood
 of outflow of resources is remote, no disclosure is made.
 
 xiv Accounting for Project Mobilisation expenses
 
 Expenditure incurred on creation of site infrastructures is written off
 in proportion to work done at respective sites so as to absorb such
 expenditure during the tenure of the contract.
 
 xv Other Accounting Policies
 
 Accounting Policies not specifically referred to, are consistent with
 the generally accepted accounting practices.