(i) ACCOUNTING CONVENTION :
 
 The financial statements have been prepared to comply in all material
 respects with the Accounting Standards notified by Companies
 (Accounting Standards) rules , 2006 (as amended) and the relevant
 provisions of the Companies Act. , 1956. The financial statements have
 been prepared under the historical cost convention method on an accrual
 basis except in case of assets for which provision for impairment is
 maGe and revaluation is carried out. The accounting policies have been
 consistently applied by the company and are consistent with those used
 in the previous year, claims of liquidated damages on supplies,
 Warranties, fuel escalation charges payable to the electricity board
 which are accounted for on acceptance and other claims accounted for
 receipt/ payment basis, In view of uncertainty involved.
 
 (ii) FIXED ASSETS AND DEPRECIATION :
 
 (a) Fixed Assets ( Other than land & building, plant & machinery of the
 company which have been re-valued and stated at the revalued figures )
 are stated at cost net of cenvat less accumulated depreciation and
 impairment , if any. Cost of acquisition or construction is inclusive
 of freight, duties, taxes and incidential/preoperative expenses and
 interest on loans attributable to the acquisition of assets upto the
 date of commissioning of assets . Capital subsidy received against
 specific assets is reduced from the value of relevant fixed assets .
 
 (b) The depreciation has been provided on straight line method of
 depreciation at the rates and in the manner prescribed in Schedule XIV
 of the Companies Act, 1956 except on assets used in Engineering
 Division, which is on written down value method.
 
 (c) Depreciation is not provided during the year in respect of assets
 sold, discarded during the year upto the date ot sales/discard.
 
 (d) Depreciation is calculated on pro-rata basis from the date of
 additions except on assets of Engineering Division which are
 depreciated for a full year.
 
 (e) Lease hold land are not amortized .
 
 (f) Expenditure on New project and substantial expansion
 
 Expenditure directly relating to construction activity is capitalized.
 Indirect expenditure incurred during construction period is capitalized
 as part of the indirect construction cost to the extant to which the
 expenditure is indirectly related to construction or is incidental
 thereto. Other indirect expenditure (including borrowing costs)incurred
 during the construction period vmich is not related to the construction
 activity nor is incidental thereto is charged to the profit and loss
 account. Income earned during construction period is deducted from the
 total of the indirect expenditure.
 
 (iii) INVENTORIES
 
 Inventories are valued as follows :-
 
 (A) (a) Raw Material, Stores & Spares, Components, construction
 material.  food & beverages, liquor, crockery, cutlery, glassware,
 utensils and linen At cost (FIFO method) or nel realizable value,
 whichever is lower.
 
 (t>) Process Stocks
 
 At cost or net realizable value, which ever is lower. Cost for this
 purpose includes direct material cost and appropriate of manufacturing
 overheads on work done basis.
 
 Finished Goods
 
 A Cost or net realizable value*, which ever is lower. Cost for this
 purpose includes direct material cost and a proportion of manufacturing
 overhead.
 
 (d) Goods in transit
 
 Are stated at actual cost plus freight, if any._
 
 * Net realizable value is estimated selling price in the ordinary
 course of business.
 
 B) Hotel Division :
 
 Stock of operating supplies i.e.  Crockery, cutlery, glassware,
 utensils, linen etc.  in circulation are treated as consumption as and
 when issued from the stores.
 
 iv) Foreign currency Transaction :
 
 a) Transactions in foreign currencies are recorded on initial
 recognition at the exchange rates prevailing at the time of transaction
 
 b) Monetary items (i.e. receivables, payables, loans etc) denominated
 in foreign currencies at the year end are restated at year end rates.
 In case of monetary items which are covered by forward exchange
 contracts, the difference between the year end rate and rate on the
 date of the contract is recognized as exchange difference and the
 premium paid on forward contracts is recognized over the life of the
 contract.
 
 c) Non monetary foreign currency items are carried at cost.
 
 d) Any income or expenses on account of exchange difference either on
 settlement or ''on translation is recognized as revenue except in cases
 where they relate to acquisition of fixed assets in which case they are
 adjusted to the carrying cost of such assets.
 
 v) Revenue Recognition:
 
 a) Engineering Division :
 
 Sales of products (Fabricated goods) escalation and erection receipts
 (sales is net of trade discount and sales tax) are accounted for on the
 basis of bills/invoices acknowledged or paid by the project
 authorities.
 
 b) Other Divisions :
 
 Sales comprises of sales of goods, room sales etc. are excluding sales
 tax/VAT .  It is being accounted for net of returns/discount/claims etc
 .
 
 c) Income of interest on refund of income tax is accounted for in the
 year, the order is passed by the concerned authority .
 
 d) Revenue from real estate division are recognized on the percentage
 of completions method of accounting. Revenue is recognized , in
 relation to the sold areas only, on the basis of percentage of actual
 cost incurred thereon including land as against the total estimated
 cost of the project under execution subject to such actual costs being
 30% or more of the total estimated cost. The estimates of saleable area
 and cost are revised periodically by the management. The effect of such
 changes to estimates is recognized in the period such changes are
 determined.
 
 e) Revenue is recognized when the shareholder''s right to receive
 payment is established by the balance sheet date . Dividend from
 subsidiaries is recognized even if the same is 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.
 
 vi) INVESTMENTS:
 
 Investments that are readily realizable and intended to be held 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
 and individual investment basis. Long term investments are carried at
 cost. However, Provision for diminution in the value is made to
 recognize a decline other than temporary in the value of the
 investments.
 
 vii) MISCELLANEOUS EXPENDITURE (To the extent not written off or
 adjusted) Miscellaneous expenditure such as public issue expenditure
 are amortized over a period of 5 years.  
 
 viii) RESEARCH AND DEVELOPMENT :
 
 The revenue expenditure on research and development is charged as an
 expense in the year in which it is incurred. Capital expenditure is
 included in fixed assets
 
 ix) Borrowing costs :
 
 Borrowing costs directly attributable to the acquisition and
 construction of and assets that necessarily takes a substantial period
 of time to get ready for its intended use are capitalized as part of
 the cost of the respective asset. All other borrowing costs are
 expensed in the period they occur . Borrowing costs consists of
 interest and other costs that an entity incurs in connection with the
 borrowing of funds.
 
 x) TAXATION :
 
 (a) Current Tax :
 
 The income tax liability provided taking into considerations of
 claiming of deduction under section 80 IB of the Income Tax Act. and in
 accordance with the provisions of the Income Tax Act, 1961, as advised
 by income tax consultant.
 
 (b) Deferred Tax Liabilities/(Assets)
 
 Deferred tax is recognized, subject to the consideration of prudence,
 on timing differences, being the difference between taxable income and
 accounting income that originate in one period and are capable of
 reversal in one or more subsequent periods.
 
 xi) Retirement and other employee benefits :
 
 a) Retirement benefit in the form of provident fund is a defined
 benefit obligation of the company and the contributions are charged to
 the profit and loss account of the year when the contributions to the
 funds are due. Shortfall in the funds, if ^^ any, is adequately
 provided for by the company .
 
 b) Gratuity :
 
 Gratuity liability is a defined benefit obligation of the company . The
 company provides for gratuity to all eligible employees. The benefit is
 in the form of lump sump payments to vested employees on resignation,
 retirement, on death while in employment or on termination of
 employment of and amount equivalent to 15 days basic salary payable to
 each completed year of service. Vesting occurs upon completion of 5
 years of services. The company has not made annual contributions to
 funds administered by trustees or managed by insurance companies.
 Actuarial valuation for the liabilities has , however has not bten
 done.
 
 c) Leave Salaries:
 
 Liabilities for privilege leave benefits, in accordance with the rules
 of the company is provided for, as prevailing salary rate for the
 entire un-availed leave balance as at the balance sheet date.
 
 xii) Impairment of assets:
 
 An asset is treated as impaired when the carrying cost of assets
 exceeds its recoverable value. An impairment loss is charged to the
 Profit and Loss account in the year in which an asset is identified as
 impaired. The impairment loss recognized in prior accounting period is
 reversed if there has been a change in the estimation of recoverable
 amount
 
 xiii) Provisions:
 
 A Provision is recognized when an enterprise has a present obligation
 as a result of past event and it is probable that an outflow cf
 resources will be required to settled the obligation , in respect of
 which a reliable estimate can be made.  Provisions are not disclosed to
 its present value and are determined based on best management 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 . Other contingent liabilities are not recognized but
 are disclosed in the notes. Contingent assets are neither recognized
 nor disclosed in the financial statement.
 
 xiv) Earning per Share:
 
 Basic earnings per share is calculated by dividing the Net Profit or
 Loss for the period attributable to equity share holders (After
 deducting taxes etc.) by the weighted average number of the equity
 shares outstanding during the period.
 
 For the purpose of calculating diluted earning per share, the net
 profit or loss for the period attributable to equity share holders and
 the weighted average number of shares outstanding during the period are
 adjusted for the effect of all dilutive potential equity shares.
 
 xv) Use of Estimate:
 
 The preparation of financial statements in conformity with the
 generally accepted accounting principles requires management to make
 estimates and assumptions that affect the reported amount of assets and
 Liabilities and disclosure of contingent liabilities at the date of the
 financial statements and the results of operation during the reporting
 period end. Although these estimates are based upon management''s .best
 no knowledge of current events and actions , actual results could
 differ from these estimates . Difference between actual results and
 estimates is recognized in the period in which the results are known /
 materialized.  xvi) Operating Lease - Lease rentals in respect of
 assets taken are charged to profit & loss account as per the terms of
 the lease agreement.