a) The Accounts have been prepared on accrual basis under historical
 cost convention in accordance with the Generally Accepted Accounting
 Principles in India and the provisions of the Companies Act, 1956.
 
 b) Fixed Assets and Depreciation
 
 Fixed Assets are stated at cost of acquisition, less accumulated
 depreciation thereon. Depreciation is provided on straight line method
 at the rates prescribed in Schedule XIV of the Companies Act, 1956
 except for construction accessories which are depreciated at 20% p.a.
 based on useful life determined by the Management. Leasehold
 improvements are amortised over the period of lease. Intangible assets
 are amortised over a period of five years
 
 Fixed assets in joint venture operations, which are accounted to the
 extent of the Companys interest in the venture, are depreciated on
 Straight Line Method / Written Down Value Method at the rates
 prescribed in Schedule XIV of the Companies Act, 1956 or at higher
 rates as stated below:
 
 c) Borrowing Costs:
 
 Borrowing Costs that are attributable to acquisition, construction or
 production of a qualifying asset are capitalised as part of the cost of
 such asset. A qualifying asset is one that necessarily takes
 substantial period of time i.e., more than 12 months to get ready for
 its intended use. All other borrowing costs are charged to revenue.
 
 d) 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 the greater of the
 assets 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 recognised 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.
 
 e) Investments:
 
 Investments are classified as long term and current investments. Long
 Term Investments are carried at cost less provision for other than
 temporary diminution, if any, in value of such investments. Current
 investments are carried at lower of cost and fair value.
 
 f) Inventories Raw Materials:
 
 Raw Materials, construction materials and stores & spares are valued at
 weighted average cost. Cost excludes refundable duties and taxes.
 
 Work in Progress:
 
 i) Project Division: Work-in-Progress is valued at the contract rates
 less profit margin / estimates.
 
 ii) Light Engineering Division: Work-in-Progress is valued at lower of
 cost and net realisable value. .
 
 iii) Property Development: Properties under development are valued at
 cost. Cost comprises all direct development expenditure, administrative
 expenses and borrowing costs. Land held for resale is valued at lower
 of cost and net realisable value.
 
 Finished Goods:
 
 Finished goods of Light Engineering Division are valued at lower of
 cost and net realisable value.
 
 g) Employee Benefits
 
 Liability for employee benefits, both short and long term, for present
 and past services which are due as per the terms of employment are
 recorded in accordance with Accounting Standard (AS) 15 ‘Employee
 Benefits notified by the Companies (Accounting Standards) Rules, 2006
 
 Defined Benefit Plan 
 
 i) Gratuity
 
 In accordance with the Payment of Gratuity Act, 1972 the Company
 provides for gratuity covering eligible employees.
 
 Liability on account of gratuity is:
 
 – covered partially through a recognised Gratuity Fund managed by Life
 Insurance Corporation of India and contributions are charged to
 revenue; and
 
 – balance is provided on the basis of valuation of the liability by an
 independent actuary as at the year end.
 
 ii) Compensated Absences
 
 Liability for compensated absence is treated as a long term liability
 and is provided on the basis of valuation by an independent actuary as
 at the year end.
 
 In respect of Oman branch employees, end of service benefit is accrued
 in accordance with terms of employment. Employee entitlements to annual
 leave and gratuity are recognized on actual basis and charged to profit
 and loss account
 
 Defined Contribution Plan
 
 iii) Superannuation
 
 The Company makes monthly contribution to an approved superannuation
 fund covered by a policy with Birla Sunlife Insurance Company Limited.
 The Company has no further obligation beyond the monthly contribution.
 
 iv) Provident Fund
 
 Contribution to Provident fund (a defined contribution plan) made to
 Regional Provident Fund Commissioner are recognised as expense.
 
 h) Revenue Recognition
 
 i) Project Division: Revenue from construction contracts is recognised
 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 recognised as expenditure.
 
 ii) Property Development: Revenue is recognised when the Company enters
 into an agreement for sale with the buyer and all significant risks and
 rewards have been transferred to the buyer and there is no uncertainty
 regarding realisability of the sale consideration.
 
 i) Joint Venture Projects:
 
 i) In respect of Joint Venture Contracts in the nature of jointly
 controlled operations, the assets controlled, liabilities incurred, the
 share of income and expenses incurred are recognized in the agreed
 proportions under respective heads in the financial statements.
 
 ii) Assets, Liabilities and Expenditure arising out of contracts
 executed wholly by the Company pursuant to a joint venture contract are
 recognised under respective heads in the financial statements. Income
 from the contract is accounted net of joint venturers share under
 turnover in these financial statements.
 
 iii) Share of turnover attributable to the Company in respect of
 contracts executed by the other joint venture partners pursuant to
 Joint Venture Agreement, is accounted under Turnover in these financial
 statements.
 
 j) Foreign exchange translation and foreign currency transactions
 
 Foreign currency transactions are accounted at the exchange rates
 prevailing on the date of transactions. Gains and losses resulting from
 settlement of such transactions are recognised in the Profit and Loss
 account.
 
 Monetary assets and liabilities related to foreign currency
 transactions remaining unsettled at the end of the year are translated
 at year end rates. The difference in translation of monetary assets and
 liabilities and realised gains and losses on foreign exchange
 transactions are recognised in the Profit and Loss Account.
 
 Foreign branches are classified as non-integral foreign operations.
 Assets and Liabilities (both monetary and non-monetary) are translated
 at the closing rate at the year end. Income and expenses are translated
 at the monthly average rate at the end of the respective month. All
 resulting exchange differences are accumulated in a separate account
 ‘Foreign Currency Translation Reserve till the disposal of the net
 investments.
 
 k) Leases
 
 The Companys leasing arrangements are mainly in respect of operating
 leases for premises and construction equipment. The leasing
 arrangements range from 11 months to 10 years generally and are usually
 cancellable /renewable by mutual consent on agreed terms. The aggregate
 lease rents payable are charged as rent in the Profit and Loss Account.
 
 l) Taxes
 
 i) Current Tax: Provision for Current Tax is made based on taxable
 income computed for the year under the Income Tax Act, 1961.
 
 ii) Deferred Taxes: Deferred Tax is accounted for by computing the tax
 effect of timing differences which arise during the year and reverse in
 subsequent periods. Deferred tax assets are recognized and carried
 forward only to the extent that there is a certainty that sufficient
 future taxable income will be available against which such Deferred Tax
 Assets can be realized
 
 m) Contingency Reserve
 
 The Company transfers to Contingency Reserve out of the Profit and Loss
 Appropriation Account such amounts as the Management considers
 appropriate based on their assessment to meet any contingencies
 relating to substantial expenditure incurred during the maintenance
 period of a contract, non-realisation of contract bills earlier
 recognised as income and claims, if any, lodged by the contractees or
 by sub-contractors or by any third party against the Company in respect
 of completed projects for which no specific provision has been made.
 
 n) Earnings per Share
 
 The Company reports basic and diluted earnings per share in accordance
 with Accounting Standard (AS) 20, Earnings Per Share notified by the
 Companies (Accounting Standards) Rules, 2006. Basic earnings per equity
 share is computed by dividing the net profit for the year attributable
 to the Equity Shareholders by the weighted average number of equity
 shares outstanding during the year. Diluted earnings per share is
 computed by dividing the net profit for the year, adjusted for the
 effects of dilutive potential equity shares, attributable to the Equity
 Shareholders by the weighted average number of the equity shares and
 dilutive potential equity shares outstanding during the year except
 where the results are anti dilutive
 
 o) Provisions, Contingent Liabilities and Contingent Assets
 
 The Company recognises provisions when there is present obligation as a
 result of past event and it is probable that there will be an outflow
 of resources and reliable estimate can be made of the amount of the
 obligation. A disclosure for Contingent liabilities is made in the
 notes on accounts when there is a possible obligation or a present
 obligation that may, but probably will not, require an outflow of
 resources. Contingent assets are neither recognised nor disclosed in
 the financial statements.