1.  Contingent Liabilities:
 
 a.  Commitment for capital expenditure is Rs 480.89 mn (P.Y. Rs 320.74
 mn), advance paid Rs 15.74 mn (P.Y.  Rs8.95 mn).
 
 b.  Counter indemnities given to Banks and others in respect of secured
 guarantees, etc. on behalf of subsidiaries and others given by them in
 respect of contractual commitments in the ordinary course of business
 is Rs 6,420.35 mn (P.Y. Rs 3,875.15 mn) (including Customs Rs 347.57 mn
 (P.Y. Rs 248.71 mn) for the current year includes guarantees given in
 USD 7.50 mn (P.Y. US$ 7.50 mn). Corporate guarantees on behalf of
 subsidiaries and others is Rs 8,079.52 mn (P.Y. Rs 7,799.52 mn) (against
 which the Company has obtained counter guarantee forRs 105.00 mn (P.Y.
 1,760 mn)) and towards Custom DutyRs 71.62 mn (P.Y.  Rs 71.62 mn).
 
 c.  The Company has received an amount of Rs 12.74 mn in 1997 against
 arbitration award in its favor. The client has preferred an appeal
 against above award claiming an amount ofRs 213.32 mn (P.Y. Rs 213.32 mn)
 before the Hon''ble appeal court. However the management feels that the
 likelihood of outflow of resources is remote.
 
 d.  Outstanding Letter of Credit amounts to Rs 50.25 mn (P.Y. Rs 189.94
 mn).
 
 e.  Sales tax Rs 33.51 mn (P.Y. Rs 20.18 mn) (Advance paid Rs 18.52 mn
 (P.Y. Rs 10.51 mn)). Cess Rs 7.46 mn (P.Y. Rs 16.17 mn).
 
 f.  Custom liability that may arise on matter in appeal Rs 7.61 mn (P.Y.
 Rs 7.61 mn).
 
 g.  Client withheld to the extent of Rs 1,565.90 mn (P.Y. Rs Nil) have
 been discounted with Bank on Recourse Basis.
 
 h.  Allowances due to employees in remote areas (Arunachal Pradesh) may
 accrue in future maximum to the extent of Rs 1.86 mn (P.Y. Rs Nil). The
 same will be paid to the employees who continue to be on the payrolls
 upto October 1, 2011.
 
 2.  i.  Turnover includes, construction of multi purpose projects,
 water supply projects, Irrigation projects,
 building projects, road and railway projects, on item rate and EPC
 basis. It also includes duty drawback and entitlement etc but excludes
 vat, service tax etc.
 
 ii.  Stores, embedded goods and Spares etc., consumed include materials
 issued to Sub Contractors.
 
 iii.  Auditors Remuneration comprises of Statutory Audit Fees
 (including Consolidation) Rs 3.27 mn (P.Y.  Rs 3.27 mn); Tax Audit Fees Rs
 0.87 mn (P.Y. Rs 0.88 mn); Taxation Matters Rs 3.39 mn (P.Y. Rs 1.65 mn);
 Other Capacity Rs 1.10 mn (P.Y. Rs 1.10 mn); Certification Rs 1.10 mn
 (P.Y. Rs 1.10 mn) and out of pocket expenses Rs 0.12 mn (P.Y. Rs 0.06 mn).
 
 iv.  Miscellaneous expenses includes Other Repairs Rs 57.92 mn (P.Y. Rs
 46.96 mn), Tender fees, office and General Charges, Entertainment and
 rebate to clients, Bank charges and Bank Guarantee Charges (Net) etc.,
 Donation of Rs Nil (P.Y. 2.50 mn) to trusts in which Director is trustee
 and Donation to CPI (M) is Rs 0.20 mn (P.Y.Nil) and to BJP Rs Nil (P.Y. Rs
 0.25 mn).
 
 v.  Stores, embedded goods and Spare Parts include Rs 67.87 mn (P.Y. Rs
 17.14 mn) in transit.
 
 vi.  Maximum Balance held in current account with non-scheduled banks
 viz. 1. Key Bank (USA) Rs 15.73 mn (P.Y. Rs 15.50 mn) 2. Barclays Bank
 (Mauritius) Rs 159.45 mn (P.Y. Rs 121.10 mn) 3. Balances with Scheduled
 banks in current account include Rs 31.76 mn in transit/in hand (P.Y. Rs
 48.16 mn). Balances with Scheduled Banks in Fixed Deposits Account
 include Rs 14.53 mn, lying with various government authorities/banks
 (P.Y. Rs 16.65 mn).
 
 vii.  Advances Recoverable in Cash or in kind or for value to be
 received includes Rs 7.67 mn (P.Y. Rs 25.75 mn) due from officers of the
 Company. Maximum amount due during the yearRs 26.65 mn (P.Y. Rs 33.88
 mn).  Also includes secured advance to piece workers Rs 10.32 mn (P.Y. Rs
 10.34 mn).
 
 viii. Sundry Creditors includes Rs Nil book over draft in current
 account with bank (P.Y. Rs 4.08 mn), Includes Rs 11.83 mn against lease
 of office premises (P.Y. Rs 125.08 mn).
 
 3.  i.  Income-tax assessments are completed up to A.Y. 2007-2008.
 Several appeals for the earlier assessment years are pending before the
 Appellate Authorities. The aggregate demand for the same amounting to Rs
 692.49 mn has been already adjusted/paid.
 
 The Company has made a provision for tax ofRs 363.50 mn (P.Y. Rs 740.00
 mn), and reversed Deferred Tax Liability ofRs 30.46 mn (P.Y. reversed Rs
 31.40 mn). The Company has been advised that it is not liable to
 Wealth-Tax except on Motor Cars. Accordingly, Wealth Tax of Rs 1.50 mn
 (P.Y. Rs 1.20 mn) has been provided.
 
 ii.  Out of prudence, the company has made a provision for Rs 450 mn, on
 account of the liability that may arise under the proceedings under
 section 132 of the Income Tax Act, 1961 out of the Surplus in Profit &
 Loss Account.
 
 iii.  The Finance Act, 2009 has amended Section 80IA (4) of the Income
 Tax Act, 1961 by inserting an explanation to the said section
 retrospectively from April 1, 2000 purporting to withdraw the benefit
 hitherto available.
 
 The impact ofRs 1,485.11 mn upto March 31, 2009 due to the above
 amendment, though being subjudice, has been provided and adjusted out
 of the Surplus in Profit and Loss Account. The Company has legally
 contested the validity of the above amendment and intention of the said
 section.
 
 Further, the company has filed a writ petition with High Court of
 Mumbai for challenging constitutional validity for insertion of
 explanation with retrospective effect and writ has been admitted.
 
 iv.  The Company is entitled to deductions under the Income Tax Act,
 which are in nature of permanent
 
 benefits. However, deferred tax adjustments on account of timing
 differences as described in Accounting Standard - 22 ''Accounting for
 Taxes on Income'' issued by the Institute of Chartered Accountants of
 India, is made.
 
 4.  Income consisting of Construction income of Rs 35.66 mn (P.Y. Rs Nil)
 and other income of Rs Nil (P.Y. Rs 3.40 mn) and Expenses consisting of
 Piece Rate Expenses Rs 24.93 mn (P.Y. Rs 24.12 mn) and other expenses Rs
 7.19 mn (P.Y. Rs 12.68 mn) pertaining to prior periods credited and
 debited respectively to Profit and Loss Accounts under various heads of
 accounts.
 
 5.  The Company has some contract revenues receivable in foreign
 currency. To reduce various financial risks the Company has entered
 into hedging transactions. Due to delay in payments, changes in
 drawings, changes in design all on account of the client, the hedging
 position got exposed incurring loss on such transactions. The said
 hedging loss ofRs 493.04 mn (P.Y. Rs 258.37 mn) has been debited to
 profit and loss account as interest expense, as a prudent and
 conservative accounting policy. The aforementioned is claimable from
 the clients and are carried in work-in-progress.
 
 6.  In accordance with The Companies (Accounting Standards) Amendment
 Rules 2009, where in the provisions pertaining to AS-11 relating to
 The Effects of the changes in Foreign Exchange Rates, vide
 notification dated March 31, 2009 and further amended on May 13, 2011,
 the Company has carried over exchange (gain)/loss of Rs 8.50 mn (P.Y. Rs
 30.55 mn) through Foreign Currency Monetary Items Translation
 Difference Account, to be amortized over the balance period of the
 long term asset/liability, in respect of which such exchange gain/loss
 has arisen, but not beyond March 31, 2012. Further exchange loss (net)
 ofRs Nil (P.Y.
 
 Rs 16.34 mn) has been added to the cost of the respective fixed asset.
 
 7.  Unbilled Work in Progress includes stock of land under development
 (including held in the name of directors/ relatives of
 directors/employees, as nominees of the company).
 
 8.  In accordance with AS 16 - Borrowing Costs, Rs 197.08 mn (P.Y. Rs
 202.02 mn) interest has been capitalized on project development cost
 incurred.
 
 9.  Debit and Credit Balances are subject to confirmation from
 creditors, debtors and sub contractors.
 
 14.  Disclosure required in accordance with Accounting Standard - 7
 (Revised). In respect of contracts entered into on or after 1st April
 2003, contract revenue recognized as construction Rs 22,089.94 mn
 contract costs incurred and recognized profit (less recognized losses)
 Rs 82,293.59 mn advance received Rs 428.52 mn retention deposit Rs 965.21
 mn and gross amount due from clients for contract works included under
 current assets Rs 10,329.66 mn.
 
 15.  During the year, two of Company''s hydropower projects in
 Loharinagpala, in the state of Uttarakhand, awarded by NTPC, were
 prematurely terminated by Government of India. NTPC has sought details
 of expenditure incurred, committed costs, anticipated expenditure on
 safety and stabilization measures, other recurring site expenses and
 interest costs, as well as other claims of various packages of
 contractors/ vendors for further submission to the government after
 compiling all the details of expenses incurred by various contractors
 working for the project. Management expects that all these cost as well
 as claims will be recovered in full and hence the cost incurred on the
 project up to March 31, 2011 are considered recoverable and billable to
 the client and hence included under work in progress.
 
 Arbitration award in case of four projects amounting to Rs 2,330.36 mn
 (P.Y. Rs 2,296.91 mn) represented as work in progress will be accounted
 for as contruction receipts as and when received.
 
 16.  The Company has following outstanding Debentures as on March 31,
 2011:
 
 a.  9.5% Secured Redeemable Non Convertible Debentures was allotted on
 June 01, 2009 for a period of 3 years. These debentures have a face
 value ofRs 1.0 mn each aggregating to Rs 1,050.0 mn and are to be
 redeemed on June 1, 2012.
 
 b.  9.8% Secured Redeemable Non Convertible Debentures was allotted on
 July 20, 2009 for a period of 7 years. These debentures have a face
 value ofRs 1.0 mn each and are to be redeemed on July 20, 2016 in a
 single installment, with a put/call option available and exercisable at
 par at the end of 5th year from the date of allotment i.e. July 20,
 2014.
 
 c.  9.55% Secured Redeemable Non Convertible Debentures was allotted on
 April 26, 2010 for a period of 3 years. These debentures have a face
 value ofRs 1.0 mn each aggregating to Rs 1,000.00 mn. Out of which Rs 300
 mn, Rs 300 mn and Rs 400 mn are to be redeemed on April 26, 2013, April
 26, 2014 and April 26, 2015 respectively.
 
 d.  10.75% Secured Redeemable Non Convertible Debentures was allotted
 on March 3, 2011 for a period of 3 years. These debentures have a face
 value of Rs 1.0 mn each aggregating to Rs 500.00 mn Out of which Rs 150
 mn, Rs 150 mn and Rs 200 mn are to be redeemed on March 3, 2014, March 3,
 2015 and March 3, 2016 respectively.
 
 18. Employee Benefits:
 
 I.  Brief description of the Plans:
 
 The Company provides long-term benefits in the nature of Provident fund
 and Gratuity to its employees.  In case of funded schemes, the funds
 are recognized by the Income tax authorities and administered through
 appropriate authorities/insurers. The Company''s defined contribution
 plans are provident fund, employee state insurance and employees''
 pension scheme (under the provisions of the Employees'' Provident Funds
 and Miscellaneous Provisions Act, 1952) since the Company has no
 further obligation beyond making the contributions. The Company''s
 defined benefit plans include gratuity benefit to its employees, which
 is funded through the Life Insurance Corporation of India. The
 employees of the Company are also entitled to leave encashment and
 compensated absences as per the Company''s policy.  The Provident fund
 scheme additionally requires the Company to guarantee payment of
 specified interest rates, for which shortfall has been provided for as
 at the Balance Sheet date.
 
 19.  On the basis of information compiled to the extent that they could
 be identified as Small Scale and Ancillary Industrial Undertaking, the
 Company has no such amounts payable in excess of Rs 0.10 mn and
 outstanding for a period of more than 30 days.
 
 20.  The Company has no amounts due to suppliers under the Micro Small
 and Medium Enterprise Development Act, 2006, as at March 31, 2011.
 
 Note: The above information has been determined to the extent such
 parties had been identified on the basis of information available with
 the Company.
 
 21.  The Company has main reportable business segment namely Civil
 Construction.