1.  Basis of preparation
 
 These abridged financial statements have been prepared in accordance
 with the requirements of Rule 7A of the Companies (Central
 Government''s) General Rules and Forms, 1956 and clause 32 of the
 Listing Agreement. These abridged financial statements have been
 prepared on the basis of the complete set of financial statements for
 the year ended March 31, 2011.
 
 2.  [11(a)] The following note has been referred to by the Auditors in
 their report on the complete set of financial statements dated May 30,
 2011:
 
 The Company had executed certain projects for some customers in earlier
 years. These customers have withheld amounts aggregating to Rs. 725,128
 thousand (Previous year Rs. 587,863 thousand) on account of liqudated
 damages and other deductions, which are being carried as sundry
 debtors. Some of these customers had also not certified the final
 bills amounting to Rs. Nil (Previous year Rs. 31,455 thousand), which
 are being carried forward under Work in Progress inventory. The Company
 has also filed certain claims against these customers. The Company has
 gone into arbitration/ legal proceedings against these customers for
 recovery of amounts withheld as liquidated damages & other deductions
 and for claims lodged by the Company. Pending outcome of arbitration/
 legal proceedings, amounts withheld for liquidated damages & other
 deductions are being carried forward as recoverable. The Company has
 been legally advised that there is no justification in imposition of
 liquidated damages and other deductions by these customers and hence
 the above amounts are considered good of recovery.
 
 3.  [31] On certain projects which are completely executed/ nearing
 com- pletion, the Company has unbilled work-in-progress inventory of
 
 Rs. 10,846,042 thousand. Further, Rs. 1,449,754 thousand are withheld
 by these customers on account of liquidated damages and other
 deductions.  The Company is of the view that the unbilled work in
 progress will be billed after completion of some pending work/
 completion of certain pending formalities. Also, it is of the view that
 there is no justification in imposition of liquidated damages and
 other deductions by these customers. Accordingly, the above amounts are
 considered good of recovery.
 
 4.  [17] The Company has an investment in the equity and preference
 capital amounting to Rs. 2,997,139 thousand in its subsidiary at
 Singapore and has loans & advances outstanding amounting to Rs.
 13,290,431 thousand as at March 31, 2011 from the said subsidiary. The
 subsidiary has accumulated losses of Rs. 8,081,096 thousand as at March
 31, 2011.  However, the subsidiary is holding certain strategic
 investments. Consider- ing the intrinsic value of the investments held
 by the subsidiary, based on the valuation carried out by an independent
 valuer, and also considering the long term business plan of the
 subsidiary including the forecasts of profitability of operations, the
 company is of the view that there is no per- manent diminution in the
 value of investment and accordingly, no provision is considered
 necessary in the financial statements at this stage on the above
 account.
 
 5.  [18] The following note has been referred to by the Auditors in
 their report on the complete set of financial statements dated May 30,
 2011:
 
 The Company''s branch at Libya has fixed assets (net) and current
 assets aggregating to Rs. 9,909,622 thousand as at March 31, 2011 in
 relation to certain projects being executed in that country. The Branch
 has also received advances from customers of Rs. 5,133,940 thousand
 against bank guarantee outstanding of Rs. 6,046,331 thousand. Due to
 civil and political disturbances and unrest in Libya, the work on all
 the projects has stopped, the resources have been demobilised and
 necessary intimation has been given to the customers. The Company has
 also filed the details of the outstanding assets with the Ministry of
 External Affairs, Government of India. Pending the outcome of the
 uncertainty, the aforesaid amounts are being carried forward as
 realizable.
 
 6.  [26] On March 17, 2010, On March 17, 2010, the Company was
 subjected to a search and seizure operation under Section 132 and
 survey under Section 133A of the Income Tax Act, 1961. During the
 search and seizure operation, statements of Company''s officials were
 recorded in which they were made to offer some unaccounted income of
 the Company for the financial year 2009-10. The Company is of the view
 that the above state- ments were made under undue mental pressure and
 physical exhaustion and it has retracted the above statements
 subsequently. The Company has filed fresh returns of income for
 Assessment years 2004-05 to 2009-10 in pursuance of the notices dated
 August 25, 2010 from the Income Tax department and the assessment
 proceedings are going on. In view of the above, tax liability, if any,
 that may arise on this account is presently unas- certainable.
 
 7.  [29] The under mentioned note has been referred to by the Auditors
 in their report on the complete set of financial statements dated May
 30, 2011:
 
 The Company had during the previous year accounted for a claim of Rs.
 2,430,300 thousand (Previous year Rs. 2,430,300 thousand) on Heera
 Redevelopment Project (HRP) with Oil and Natural Gas Corporation
 Limited, based upon management''s assessment of cost over-run arising
 due to design changes and consequent changes in the scope of work on
 
 As per our Report on the abridged financial statements of even date
 
 a project and had also not accounted for liquidated damages amounting
 to Rs. 654,891 thousand (Previous year Rs. 654,891 thousand) deducted
 by the customer since it is of the view that the delay in execution of
 the project is attributable to the customer. Further, there are other
 debtors outstand- ing of Rs. 844,527 thousand and unbilled work in
 progress inventory of Rs. 1,603,397 thousand relating to the said
 project as at March 31, 2011.  The Company has initiated arbitration
 proceedings against the customer during the year. The management, based
 on the expert inputs, is confident of recovery of amounts exceeding
 the recognized claim and waiver of liquidated damages and is also confi
 dent of recovery of other debtors and unbilled work in progress
 inventory.
 
 8. [30] The under mentioned note has been referred to by the Auditors
 in their report on the complete set of financial statements dated May
 30, 2011:
 
 The Company had during the year accounted for claims of Rs. 897,346
 thousand on two contracts, based upon management''s assessment of cost
 over-run arising due to delay in supply of free issue material by the
 customer, changes in scope of work and /or price escalation of materi-
 als used in the execution of the projects. The management, based on its
 assessment, is confident of recovery of amounts exceeding the
 recognized claims.