1. Significant accounting policies:
 
 (i) Accounting convention:
 
 The financial statements are prepared under the historical cost
 convention in accordance with applicable Accounting Standards and
 relevant presentational requirements of the Companies Act, 1956.
 
 (ii) Fixed assets and depreciation:
 
 Fixed assets are stated at cost less accumulated depreciation. Cost of
 acquisition is inclusive of freight, duties, taxes and other incidental
 expenses.
 
 Depreciation is calculated on the straight line method at the rates and
 in the manner prescribed in schedule XIV to the Companies Act, 1956.
 
 (iii) Investments:
 
 Investments are classified into current and long-term investments.
 Current investments are stated at the lower of cost and fair value.
 Long-term investments are stated at cost.
 
 (iv) Inventories:
 
 Stores, spare parts and loose tools are valued at cost or under.
 Residuals, rejections, cut pieces and scrap are valued at net
 realisable value. Raw materials, work in process at plant and finished
 goods are valued at lower of cost or net realisable value, Work in
 progress on works contracts, awaiting billing, at proportionate
 contract value.  Cost of raw materials, stores, spare parts and loose
 tools are determined on the weighted average basis. Cost of work in
 process at plant and finished goods include material cost and
 appropriate share of labour and manufacturing overheads and cost of
 work in progress at works contracts include material cost, direct
 labour and other direct expenses.
 
 (v) Foreign currency transactions:
 
 (a) In respect of financial statements of integral foreign operations
 of foreign branches, fixed assets are recorded at cost, based on the
 exchange rate prevailing at the time of transactions. Current assets
 and current liabilities are reported using the exchange rates on the
 date of the balance sheet, income and expenses are translated at the
 average of monthly closing rates of exchange. The resultant exchange
 gains/losses are recognised in the profit and loss account.
 
 (b) Other foreign currency transactions:
 
 (i) Transactions in foreign currency are recorded on initial
 recognition at the exchange rate prevailing at the time of the
 transaction.
 
 (ii) Monetary items (i.e. receivables, payables, loans etc.)
 denominated in foreign currency are reported using the closing exchange
 rates on each balance sheet. The exchange differences arising on the
 settlement of monetary items or on reporting these items at rates
 different from rates at which these were initially recorded/reported in
 previous financial statements, are recognised as income/expense in
 the period in which they arise, except where the foreign currency
 liabilities have been incurred in connection with fixed assets acquired
 up to March 31,2004 and subsequently thereto, in case of fixed assets
 acquired from a country outside India, where exchange differences are
 adjusted in the carrying amount of fixed assets.
 
 (vi) Revenue recognition:
 
 (a) Revenue from long term construction contracts is recognised on the
 percentage of completion method based on the billing schedules agreed
 with the customers entered into prior to April 1, 2003. In respect of
 the contracts entered into on or after April 1, 2003, revenue is
 recognised based on the stage of completion determined with reference
 to the costs incurred on contracts and their estimated total costs.
 
 Provision for foreseeable losses/construction contingencies on
 contracts is made on the basis of technical assessments of costs to be
 incurred and revenue to be accounted for.
 
 (b) revenue from sale/supply of tower parts, components, residuals,
 scrap, etc., is recognised on despatch/delivery of goods to customers.
 
 (c) turnover includes excise duty but does not include sales tax, works
 contract tax and are net of claims on final settlement/billings.
 
 (vii) Retirement benefits:
 
 The Company has various schemes of retirement benefits for employees
 such as provident fund, superannuation fund and gratuity fund
 administered by trustees of independently constituted trusts,
 recognised by the Income Tax authorities and periodic contributions to
 the funds are charged to revenue. LIC policies are taken by the
 Gratuity Trusts created by the Company to cover the liability of the
 Company in respect of gratuity liability. The earned leave have been
 provided on accrual basis, based on year end actuarial valuation.
 
 (viii) Taxation:
 
 The provision for taxation is ascertained on the basis of assessable
 profits computed in accordance with the provisions of the Income-tax
 Act, 1961.
 
 Deferred tax is recognised, subject to the consideration of prudence,
 on timing differences, being the differences between taxable income and
 accounting income that originate in one period and are capable of
 reversal in one or more subsequent periods. Deferred tax assets are
 recognised on unabsorbed depreciation and carry forward of losses based
 on virtual certainty that sufficient future taxable income will be
 available against which such deferred tax assets can be realised.