1.  Basis of preparation:
 
 The financial statements have been prepared under the historical cost
 convention on an accrual basis. The accounting policies applied by the
 company are consistent with those used in the previous years.
 
 2.  Significant accounting judgments and estimates:
 
 Judgments and estimates are continually evaluated and are based on
 historical experience and other factors, including expectations of
 future events that are believed to be reasonable under the
 circumstances.
 
 The Group makes estimates and assumptions concerning the future. The
 resulting accounting estimates will, by definition, equal to the
 related actual results.
 
 3.  Inventories:
 
 a) The stock of stores and embedded goods and fuel is valued at cost
 (weighted average basis) or net realizable value whichever is lower.
 
 b) Work-in-progress is valued on the basis of the actual expenditure
 incurred in the case of all incomplete contracts.
 
 4.  Fixed Assets:
 
 Fixed Assets are stated at cost less accumulated depreciation. Cost
 comprises the cost of acquisition and any attributable cost of bringing
 the asset to its working condition for its intended use.
 
 5.  Depreciation:
 
 Depreciation is provided for in the Accounts on Straight-Line method in
 accordance with the Schedule XIV of the Companies Act, 1956 as in force
 and proportionate depreciation are charged for additions/deletions
 during the year.
 
 6.  Impairment of Assets:
 
 The carrying amount of assets other than inventories is reviewed at
 each balance sheet date to determine whether there is any indication of
 impairment. If any such indication exists, the recoverable amount of
 the assets is estimated.  The recoverable amount is greater of the
 asset''s net selling price and value in use which is determined based on
 the estimated future cash flow discounted to their present values. An
 impairment loss is recognized whenever the carrying amount of an asset
 or its cash generating unit exceeds its recoverable amount. Impairment
 loss is reversed if there has been a change in the estimates used to
 determine the recoverable amount.
 
 7.  Investments:
 
 Long term investments are carried at cost. However, wherever necessary
 provision for diminution in value of investment is made to recognize
 the decline other than temporary in the value of the investments.
 
 8.  Loan Funds
 
 (i) Working Capital, Short Term Loan Facilities:
 
 Funded and Non fund based facilities from Consortium of banks are
 secured by
 
 (a) Pari passu first charge on Current Assets of the Company.
 
 (b) Pari passu second charge on unencumbered movable Fixed Assets of
 the company.
 
 (ii) ECB Loan:
 
 Facility is secured by exclusive charge on equipment purchase.
 
 9.  Retirement Benefits:
 
 i. Provident Fund is a defined contribution scheme and the
 contributions are charged to the Profit & Loss Account of the year when
 the contributions to the respective funds are due.
 
 ii.  Other retirement benefits such as Gratuity, Leave encashment etc.
 are recognized on cash basis.
 
 10.  Revenue recognition:
 
 a) Interest:
 
 Revenue is recognized on a time proportionate basis taking into account
 the amount outstanding and the rate applicable.
 
 b) Contract Income:
 
 Revenue from construction contracts are recognized by reference to the
 percentage of completion of the contract activity. The stage of
 completion is determined by survey of work performed and /or on
 completion of a physical proportion of the contract work, as the case
 may be, and acknowledged by the contractee. Future expected loss ,if
 any, is recognized as expenditure.
 
 The work completed, which was not billed, is treated as
 Work-in-Progress and is valued on the basis of actual expenditure
 incurred as per the books of Account. In respect of Escalation and
 other claims revenue is recognized on receipt basis.
 
 11.  Income Tax:
 
 Tax expense comprises both current and deferred taxes. Current income
 tax is measured at the amount expected to be paid to the tax
 authorities in accordance with the Indian Income Tax Act. Deferred
 income taxes reflects the impact of current year timing differences
 between taxable income and accounting income for the year and reversal
 of timing differences of earlier years.
 
 Deferred tax is measured based on the tax rates and the tax laws
 enacted or substantively enacted at the balance sheet date. Deferred
 tax assets are recognized only to the extent that there is reasonable
 certainty that sufficient future taxable income will be available
 against which such deferred tax assets can be realized. Deferred tax
 assets are recognized on carry forward of unabsorbed depreciation and
 tax losses only if there is virtual certainty that such deferred tax
 assets can be realized against future taxable profits. Unrecognized
 deferred tax of earlier years are re- assessed and recognized to the
 extent that it has become reasonably certain that future taxable income
 will be available against which such deferred tax assets can be
 realized.
 
 12.  Borrowing Costs:
 
 Borrowing costs that are attributable to the acquisition and
 construction of qualifying asset are capitalized as a part of cost of
 such assets till such time the asset is ready for its intended use. A
 qualifying asset is one that requires substantial period of the time to
 get ready for its intended use.
 
 13.  Joint Venture Projects:
 
 In respect of Joint Venture Projects executed jointly control
 operations, the assets controlled, liabilities incurred, the share of
 income and the expenses incurred are accounted in accordance with the
 agreed proportion under respective rights in the financial statements.
 
 Assets, liabilities and expenditure arising out of contracts executed
 wholly by the Company pursuant to a Joint Venture Contract are
 accounted in respective heads in these financial statements.
 
 14.  Foreign Currency Translation:
 
 a) Transactions denominated in foreign currency are normally recorded
 at the exchange rate prevailing at the time of the transaction.
 
 b) Any income or expense on account of exchange difference either on
 settlement or on transaction is recognized in the profit and loss
 account 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) 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 except those relating to liability for
 acquiring fixed assets from outside India which are capitalized and
 those arising from investments in non-integral operations.
 
 15.  Provisions, Contingent Liabilities & Contingent Assets:
 
 Provisions are recognized for liabilities that can be measured only by
 using a substantial degree of estimation if:
 
 a.  The company has a present obligation as a result of past event.
 
 b.  A probable outflow of resources is expected to settle the
 obligation and
 
 c.  The amount of obligation can be reliably estimated.  Contingent
 liability is disclosed in the case of:
 
 a.  A present obligation arising from a past event, when it is not
 probable that an outflow of resources will be required to settle the
 obligation.
 
 b.  A possible obligation unless the probability of outflow of
 resources is remote.  Contingent Assets are neither recognized nor
 disclosed.
 
 Provisions, Contingent liabilities and Contingent assets are reviewed
 at each balance sheet date.