(a) Basis of Preparation
 
 The fnancial statements of NTBCL have been prepared on accrual basis of
 accounting and in accordance with the provisions of the Companies Act
 1956 and comply with the mandatory Accounting Standards and Draft
 Guidance note Accounting for Service Concession Arrangements issued
 by The Institute of Chartered Accountants of India.
 
 These fnancial statements have been drawn up in accordance with the
 going-concern principle and on a historical cost basis except for the
 intangible asset which has been valued at cost i.e. fair value of the
 construction services in accordance with Draft Guidance Note
 Accounting for Service Concession Arrangement. The presentation and
 grouping of individual items in the balance sheet, the income statement
 and the cash flow statement are based on the principle of materiality.
 
 (b) Significant accounting judgements and estimates
 
 Judgements 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 Company makes estimates and assumptions concerning the future. The
 resulting accounting estimates will, by defnition, seldom equal the
 related actual results. Significant assumptions used in accounting for
 the intangible asset are given below:
 
 ¦ The Company has concluded that as operators of the bridge, it has
 provided construction services to NOIDA, the grantor, in exchange for
 an intangible asset, i.e. the right to collect toll from road users
 during the Concession period. Accordingly, the intangible asset
 received has been measured at cost, i.e. fair value of the construction
 services. The company has recognised a profit which is the difference
 between the cost of construction services rendered (the cost of the
 project asset) and the fair value of the construction services.
 Transition requirements of the Exposure draft of the Guidance Note have
 been applied as of the date of completion of construction and
 commissioning of asset
 
 The exchange of construction services for an intangible asset is
 regarded as a transaction that generates revenue and costs, which have
 been recognised by reference to the stage of completion of the
 construction.  Contract revenue has been measured at the fair value of
 the consideration receivable.
 
 Management has capitalised qualifying fnance expenses until the
 completion of construction.
 
 The intangible asset is assumed to be received only upon completion
 of construction and recognised on such completion. Until then,
 management has recognised a receivable for its construction services.
 The fair value of construction services have been estimated to be equal
 to the construction costs plus margin of 17.5% and the effective
 interest rate of 13.5% for lending by the grantor. The construction
 industry margins range between 15-20% and Company has determined that a
 margin of 17.5% is both conservative and appropriate.  The effective
 interest rate used on the receivable during construction is the normal
 interest rate which grantor would have paid on delayed payments.
 
 The Company considers that they will not be able to earn the assured
 return under the Concession Agreement over 30 years. The Company has an
 assured extension of the concession as required to achieve project cost
 and designated returns. An independent engineer has certifed the useful
 life of the Bridge as 100 years.
 
 The value of the intangible asset is being amortised over the same
 estimated useful life under Units of Usage method i.e. on the number of
 vehicles using the road, based on the estimated traffic over a period of
 100 years.
 
 The carrying value of intangible asset is reviewed for impairment
 when events or changes in circumstances indicate that the carrying
 value may not be recoverable.
 
 Development rights will be accounted for as and when exercised.
 
 Maintenance obligations: Contractual obligations to maintain, replace
 or restore the infrastructure (principally resurfacing costs and major
 repairs and unscheduled maintenance which are required to maintain the
 Bridge in operational condition except for any enhancement element) are
 recognised and measured at the best estimate of the expenditure
 required to settle the present obligation at the balance sheet date.
 The provision for the resurfacing is built up in accordance with the
 provisions of AS 29, Provisions, Contingent Liabilities and Contingent
 Assets.
 
 (c) Foreign Currency Transactions
 
 Transactions in foreign currencies are recorded at the currency rate
 ruling at the date of transactions. Monetary assets and liabilities
 denominated in foreign currency are retranslated at the exchange rate
 ruling at the Balance Sheet date and resulted differences are taken to
 income statement.
 
 (d) Intangible Asset
 
 The value of the intangible asset was measured and recognised on the
 date of completion of construction at the fair value of the
 construction services provided. It is being amortised on a unit of
 usage method over the balance year of the estimated useful life.
 
 (e) Fixed Assets
 
 Fixed assets have been stated at cost less accumulated depreciation and
 accumulated impairment in value.
 
 The carrying values of fxed assets are reviewed for impairment when
 events or changes in circumstances indicate that the carrying value may
 not be recoverable.
 
 An item of fxed assets is derecognised upon disposal or when no future
 economic benefits are expected from its use or disposal. Any gain or
 loss arising on derecognition of the asset (calculated as the
 difference between the net disposal proceeds and the carrying amount of
 the asset) is included in the income statement in the year the asset is
 derecognised.
 
 The asset''s residual values, useful lives and methods are reviewed, and
 adjusted if appropriate, at each fnancial year end.
 
 (f) Depreciation
 
 Depreciation is calculated on a straight-line basis over the estimated
 useful life of the asset as follows
 
 Building 62 years
 
 Data Processing Equipment 3 years
 
 Office Equipment 5 years
 
 Vehicles 5 years
 
 Furniture and Fixtures 7 years
 
 Advertisement Structures 5 years
 
 (g) Impairment
 
 Where an indication of impairment exists, or when annual impairment
 testing for an asset is required, the management makes an estimate of
 the asset''s recoverable amount. An asset''s recoverable amount is the
 higher of an asset''s or cash-generating unit''s fair value less costs to
 sell and its value in use and is determined for an individual asset,
 unless the asset does not generate cash infows that are largely
 independent of those from other assets or groups of assets. Where the
 carrying amount of an asset exceeds its recoverable amount, the asset
 is considered impaired and is written down to its recoverable amount.
 In assessing value in use, the estimated future cash flows are
 discounted to their present value using a pre-tax discount rate that
 refects current market assessments of the time value of money and the
 risks specific to the asset. Impairment losses of continuing operations
 are recognised in the income statement in those expense categories
 consistent with the function of the impaired asset.
 
 (h) Borrowing Costs
 
 Borrowing costs directly attributable to the acquisition, construction
 or production of qualifying assets, which are assets that necessarily
 take a substantial period of time to get ready for their intended use,
 are added to the cost of those assets, until such time as the assets
 are substantially ready for their intended use. Where funds are
 temporarily invested pending their expenditures on the qualifying
 asset, any such investment income, earned on such fund is deducted from
 the borrowing cost incurred.
 
 All other borrowing costs are recognised as fnance charges in the
 income statement in the period in which they are incurred.
 
 (i) Investments
 
 Current investments have been valued at lower of cost or fair value
 determined on the basis of category of investments. Long-term
 investments have been valued at cost net of provision for diminution of
 permanent nature in their value.
 
 (j) Inventories
 
 Inventories of Electronic Cards (prepaid cards) and On Board Units
 are valued at the lower of cost or net realisable value. Cost is
 recognised on First in First Out basis.
 
 (k) Provisions
 
 Provisions are recognised when the Company has a present obligation
 (legal or constructive) as a result of a past event. It is probable
 that an outflow of resources embodying economic benefits will be
 required to settle the obligation and a reliable estimate can be made
 of the amount of the obligation. Where the Company expects some or all
 of a provision to be reimbursed, the reimbursement is recognised as a
 separate asset but only when the reimbursement is virtually certain.
 The expense relating to any provision is presented in the income
 statement net of any reimbursement.
 
 (l) Employee costs
 
 Wages, salaries, bonuses, social security contributions, paid annual
 leave and other benefits are accrued in the year in which the
 associated services are rendered by employees of the Company.
 
 Compensated absences which accrue to employees and which can be carried
 to future periods but are expected to be encashed or availed in twelve
 months immediately following the year end are reported as expenses in
 the year in which the employees perform the services that the benefit
 covers at the undiscounted amount of the benefits after deducting
 amounts already paid. Where there are restrictions on availment or
 encashment of such accrued benefit or where the availment or encashment
 is otherwise not expected to wholly occur in the next twelve months,
 the liability on account of the benefit is actuarially determined using
 the projected unit credit method.
 
 The Company has three funded retirement benefit plans in operation viz.
 Gratuity, Provident Fund and Superannuation. The Superannuation Fund
 and Provident Fund are defned contribution plans whereby the Company
 has to deposit a fxed amount to the fund every year/month respectively.
 
 The Gratuity plan for the Company is a defned benefit plan. The cost of
 providing benefits under gratuity is determined using the projected
 unit credit actuarial valuation method. Actuarial gains and losses are
 recognised in full in the period in which they occur.
 
 (m) Leases
 
 Finance leases which effectively transfer to the Company substantial
 risks and benefits incidental to ownership of the leased item, are
 capitalised and disclosed as leased assets. Lease payments are
 apportioned between the fnance charges and reduction of the lease
 liability so as to achieve a constant rate of interest on the remaining
 balance of the liability. Finance charges are charged directly against
 income.
 
 Leases where the lessor retains substantially all the risks and
 benefits of ownership of the asset are classifed as operating leases.
 Operating lease payments are recognised as an expense in the income
 statement on the straight line basis over the lease term.
 
 (n) Revenue Recognition
 
 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. Revenue comprises:
 
 Toll Revenue
 
 Toll Revenue is recognised in respect of toll collected at the Delhi
 Noida Toll Bridge and Mayur Vihar link Road and the attributed share of
 revenue from prepaid cards.
 
 License Fee
 
 License fee income from advertisement hoardings, office space and others
 is recognised on an accrual basis in accordance with contractual
 rights.
 
 Interest income
 
 Revenue is recognised as interest accrues (using the effective interest
 method that is the rate that exactly discounts estimated future cash
 receipts through the expected life of the fnancial instrument to the
 net carrying amount of the fnancial asset).
 
 (o) Taxes
 
 Current tax represents the amount that would be payable based on
 computation of tax as per prevailing taxation laws.
 
 Current tax is determined based on the amount of tax payable in respect
 of taxable income for the year. Deferred tax is recognised on timing
 differences; being the difference between the taxable income and
 accounting income that originate in one year and are capable of
 reversal in one or subsequent years. Deferred income tax assets and
 liabilities are measured at the tax rates that are expected to apply to
 the year when the asset is realised or the liability is settled, based
 on tax rates (and tax laws) that have been enacted or substantively
 enacted at the balance sheet date. Deferred tax assets arising on
 unabsorbed depreciation or carry forward of tax losses are recognised
 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.
 
 The carrying amount of deferred income tax assets is reviewed at each
 balance sheet and reduced to the extent it is no longer probable that
 sufficient taxable profit will be available to allow all or part of the
 deferred income tax asset to be utilised.
 
 Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which
 gives rise to future economic benefits in the form of adjustment of
 future income tax liability, is considered as an asset if there is
 convincing evidence that the Company will pay normal tax in the future
 period. Accordingly, it is recognised as an asset in the Balance Sheet
 when it is probable that the future economic benefit associated with it
 will flow to the Company.
 
 (p) Securities Premium Account
 
 Difference between the issue price of GDRs represented by inherent
 equity shares and the face value of inherent equity shares has been
 recorded as Securities Premium. Share issue expenses is adjusted
 against the Securities Premium Account as permitted by Section 78 (2)
 of the Companies Act, 1956.
 
 (q) Debenture Redemption Reserve
 
 Debenture Redemption Reserve (DRR) is created for redemption of the
 Deep Discount Bonds (DDBs) for an amount equal to the issue price of
 the DDBs by appropriating from the Profits of the year a sum calculated
 under sum of digits method over the remaining life of the DDBs . The
 adequacy of DRR is reviewed by management at periodic intervals.
 
 (r) Share based payment transactions
 
 Employee Stock options are valued as the difference between the trading
 price of the security in the stock exchange at the date of the grant
 and exercise price and are expensed over the vesting period, based on
 the Company''s estimate of shares that will eventually vest. The total
 amount to be expensed over the vesting period is determined by
 reference to the value of the options granted, excluding the impact of
 any non-market vesting conditions. At each balance sheet date, the
 entity revises its estimates of the number of options that are expected
 to become exercisable.
 
 (s) CENVAT Credit
 
 Cenvat (Central Value Added Tax) in respect of service Tax is accounted
 on accrual basis on eligible services. The balance of cenvat credit is
 reviewed at the end of each year and amount estimated to be unutilised
 is charged to the profit and loss account for the year.
 
 (t) Miscellaneous Expenditure
 
 Miscellaneous expenditure pertaining to the expenses not relating to
 the construction of the bridge during the pre- operative period is
 amortised over a period of fve years from the date of commencement of
 commercial operations.  Preliminary Expenses incurred for the
 incorporation of Company have been amortised as and when incurred.
 
 (u) Earnings per Share
 
 Basic earning per share is calculated by dividing net profit for the
 year by the weighted average number of ordinary shares outstanding
 during the year.
 
 Diluted earning per share is calculated by dividing the net profit by
 the weighted average number of ordinary shares outstanding during the
 year plus the weighted average number of ordinary shares that would be
 issued on the conversion of all the dilutive potential ordinary shares
 into ordinary shares.