i.  Basis of preparation of Financial Statements:
 
 These financial statements are prepared and presented under the
 historical cost convention, on the accrual basis of accounting, in
 accordance with the provisions of the Companies Act, 1956 (the Act),
 the accounting principles generally accepted in India and comply with
 the accounting standards prescribed in the Companies (Accounting
 Standards) Rules, 2006 issued by the Central Government, in
 consultation with the National Advisory Committee on Accounting
 Standards, to the extent applicable. The accounting policies have been
 consistently applied by the Company and are consistent with those used
 in the previous year.
 
 ii.  Use of Estimates:
 
 The Preparation of the financial statements in conformity with Indian
 GAAP requires that the management makes estimates and assumptions that
 affect the reported amounts of assets and liabilities, disclosure of
 contingent liabilities as at the date of fnancial statements and
 reported amounts of revenue and expenses during the reported period.
 Although such estimates are on a reasonable and prudent basis taking
 into account all available information, actual results could differ
 from estimates. Differences on account of revision of estimates /
 actual outcome and existing estimates are recognised prospectively once
 such results are known / materialised in accordance with the
 requirements of the respective accounting standard, as may be
 applicable.
 
 iii.  Revenue Recognition:
 
 a.  Revenue is recognised to the extent that it is probable that the
 economic benefits will flow to the Company and the revenue can be
 reliably measured.
 
 b.  Revenues from maintenance contracts are recognised as and when
 services are rendered.
 
 c.  Construction Contracts
 
 Contract revenue and expenses associated with the construction
 contracts are recognised by reference to the stage of completion of the
 project at the balance sheet date. The stage of completion of project 
 is determined by considering all relevant factors relating to contracts 
 including survey of work performed, on completion of a physical 
 proportion of the work done and proportion of contract costs incurred. 
 In the event of loss is estimated, provision is made upfront for the 
 entire loss irrespective of stage of work done. Variations, claims and 
 incentives are recognised at advanced stages when it is probable that 
 they will fructify.
 
 d.  Dividend income is recognised when the Companys right to receive
 dividend is established. Dividend from subsidiaries is recognised even
 if same are declared after the balance sheet date but pertains to
 period on or before the date of balance sheet as per the requirement of
 schedule VI of the Companies Act, 1956.
 
 e.  Interest is recognised using the time - proportion method, based on
 rates implicit in the transaction.
 
 iv.  Fixed Assets:
 
 a.  The fixed assets are stated at cost (net of indirect taxes,
 wherever recoverable) less accumulated depreciation and impairment, if
 any. Cost comprises of all expenses incurred in bringing the assets to
 its present location and working condition for intended use.
 
 b.  Intangible fixed assets are recognised only if they are separately
 identifiable and the Company expects to receive the future economic
 benefits arising out of them and cost of the assets can be measured
 reliably. Intangible assets are carried at cost less accumulated
 amortisation and accumulated impairment losses, if any.
 
 v.  Depreciation:
 
 a.  Depreciation on tangible fixed assets is computed on written down
 value method, at the rates and manner prescribed in Schedule XIV to the
 Act except Steel Shuttering Materials (included in Shuttering
 Materials) which are depreciated @ 20 % based on the useful life
 determined by the Management of the Company. Depreciation for assets
 purchased / sold during a period is proportionately charged.
 
 b.  Individual assets costing less than Rs. 5,000 are depreciated in full
 in the year of purchase.
 
 c.  MIVAN Design Charges are amortised on a
 
 straight line basis over expected project duration and other intangible
 assets are amortised on a straight-line basis over their expected
 useful lives.
 
 vi.  Borrowing Costs:
 
 Borrowing costs that are attributable to the acquisition, construction
 or production of qualifying assets are treated as direct cost and are
 capitalised as part of cost of such assets. A qualifying asset is an
 asset that necessarily requires a substantial period of time to get
 ready for its intended use or sale. All other borrowing costs are
 recognised as an expense in the year in which they are incurred.
 
 vii.  Inventories:
 
 a.  Inventory of construction materials is valued at cost (net of
 indirect taxes, wherever recoverable) on FIFO method, net of provision
 for diminution in the value. However, inventory is not written down
 below cost if the estimated revenue of the concerned contract is in
 excess of estimated cost.
 
 b.  Work-in-progress / other stock is valued at lower of cost and net
 realizable value.
 
 viii. Investments:
 
 Investments that are readily realizable and intended to be held as on
 date of investment 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 recognised if it is other than temporary.
 
 ix.  Provision and Contingent Liabilities:
 
 A provision is recognised when an enterprise has a present obligation
 as a result of past event; 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 its
 present value and are determined based on best estimate 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 stated separately by way of a note.
 Contingent Liabilities are disclosed when the Company has a possible
 obligation or a present obligation and it is probable that a cash
 outflow will be required to settle the obligation.
 
 x.  Share Issue Expenditure:
 
 Expense incurred in relation to raising of Share Capital were amortised
 equally over 5 years and on completion of initial public offering
 during the last year, were adjusted (net of taxes) against Securities
 Premium Account.
 
 xi.  Employee Benefits:
 
 a.  Short term employee benefits (benefits which are payable within
 twelve months after the end of the period in which the employees render
 service) are measured at cost and recognised during the period when the
 employee renders the service.
 
 b.  Long term employees benefits (benefits which are payable after the
 end of twelve months from the end of the period in which the employees
 render service) and Post employment benefits (benefits which are
 payable after completion of employment) are measured on a discounted
 basis by the Projected Unit Credit Method on the basis of annual third
 party actuarial valuation and are recognised during the period when the
 employee rendered the service.
 
 c.  Contributions to provident fund, a defined contribution plan, are
 made in accordance with the rules of the statute and are recognised as
 expenses when employees have rendered service entitling them to the
 contributions.
 
 d.  Actuarial gains / losses are immediately taken to the Profit and
 Loss account and are not deferred.
 
 xii.  Accounting For Leases:
 
 Income earned by way of leasing or renting out of commercial premises
 is recognised as income in accordance with Accounting Standards 19 on
 Leases.  Initial direct cost such as brokerage, etc. are recognised as
 expenses on accrual basis in the Profit and Loss Account in the year of
 lease.
 
 xiii. Earnings Per Share:
 
 Basic Earnings Per Share are calculated by dividing the net profit or
 loss for the period attributable to equity shareholders by the weighted
 average number of equity shares outstanding during the period.  The
 weighted average number of equity shares
 
 outstanding during the period are adjusted for events of bonus issue;
 bonus element in a rights issue to existing shareholders. For the
 purpose of calculating diluted earnings per share, the net profit or
 loss for the period attributable to equity shareholders and the
 weighted average number of shares outstanding during the period are
 adjusted for the effects of all dilutive potential equity shares.
 
 xiv. Foreign Currency Transactions:
 
 a.  Foreign currency transactions are recorded at the exchange rate
 prevailing at the date of transactions. Exchange gains and losses
 arising on settlement of such transactions are recognised as income or
 expense in the year in which they arise.
 
 b.  Monetary assets and liabilities related to foreign currency
 transactions remaining unsettled at the end of the year are translated
 at the year end rate and difference in translations and unrealised
 gains or losses on foreign currency transactions are recognised in the
 profit and loss account.
 
 xv.  Taxes on income:
 
 a.  Provision for Taxation is made on the basis of taxable profits
 computed for the current accounting period (reporting period) in
 accordance with the Income Tax Act, 1961;
 
 b.  Deferred Tax is calculated at the tax rates and laws that have been
 enacted or substantially enacted as of the Balance Sheet date and is
 recognised on timing difference that originate in one period and are
 capable of reversal in one or more subsequent periods. Where there are
 unabsorbed carry forward business losses or
 
 depreciation, deferred tax assets are recognised only if there is
 virtual certainty of realization of such assets. Other deferred tax
 assets are recognised only to the extent that there is a reasonable
 certainty of realization in future.
 
 xvi. Impairments:
 
 The carrying amounts of assets are reviewed at each balance sheet date
 when required to assess whether they are recorded in excess of their
 recoverable amounts, and where carrying values exceed this estimated
 recoverable amount, assets are written down to their recoverable
 amount. The reduction is treated as an impairment loss and is
 recognised in the profit and loss account. If at the balance sheet date
 there is an indication that if a previously assessed impairment loss no
 longer exists, the recoverable amount is reassessed and the assets are
 reflected at the recoverable amount.
 
 xvii.Cash and Cash Equivalents:
 
 Cash and Cash Equivalents comprise cash in hand, balance in current and
 deposit accounts with banks and highly liquid investments that can be
 readily convertible to known amounts of cash.
 
 xviii.Cash Flow Statement:
 
 Cash Flows are reported using the indirect method, whereby net profit
 before tax is adjusted for the effects of transactions of a non-cash
 nature, such as deferrals or accruals of past or future operating cash
 receipts or payments and items of income or expenses associated with
 investing or financing cash flows. The cash flows from operating,
 investing and financing activities of the Company are separately
 mentioned.