a) Method of Accounting:
 
 The Financial Statements are based on historical cost convention and
 prepared in accordance with Generally Accepted Accounting Principles
 (Indian GAAP) comprising the mandatory accounting standards issued by
 the Companies (Accounting Standards) Rules, 2006 (as amended) and the
 relevant provisions of the Companies Act, 1956.
 
 b) Use of accounting Estimates:
 
 The preparation of the financial statements in conformity with Indian
 GAAP requires management to make estimates and assumptions that affect
 the balance sheet of assets and liabilities and disclosures relating to
 contingent liabilities as at the reporting date of the financial
 statements and amount of income and expenses during the year of
 account. Example of such estimates includes contract costs expected to
 be incurred to complete construction contracts, provision for doubtful
 debts, income taxes etc. Management periodically assesses whether there
 is an indication that an assets may be impaired and makes provision in
 the account for any impairment losses estimated. Contingencies are
 recorded when it is probable that a liabilities will be incurred and
 the amount can be reasonably estimated. Actual result could differ from
 those estimates.
 
 c) Recognition of contract revenue and expenses:
 
 i) Revenue from contract is recognized on the percentage completion
 method based on billing schedules agreed with the client on a
 progressive completion basis.
 
 ii) An expected loss on construction contract is recognized as an
 expense immediately when it is certain that the total contract costs
 will exceed the total contract revenue.
 
 iii) Price escalation and other Claims and/or variations in the
 contract work are included in contract revenue only when:
 
 a) Negotiations have reached an advanced stage such that it is probable
 that customer will accept the claim; and
 
 b) The amount that is probable will be accepted by the customer can be
 measured reliably.
 
 iv) Incentive payments, as per customer-specified performance standards,
 are included in contract revenue only when:
 
 a) The contract is sufficiently advanced that it is probable that the
 specified performance standards will be met; and
 
 b) The amount of the incentive payment can be measured reliably.  
 
 v) Insurance claims are accounted for on cash basis.
 
 vi) Site mobilization (Camp) Expenditure for site installation is
 written off over the period of contract in proportion to the value of
 work done.
 
 vii) Income and expenses of previous years up to Rs. 500000/- are
 recognized in the same year. However income and expenses over and above
 Rs. 500000/- are accounted for as Prior Period item, which are also
 shown in a separate schedule in the financial statement.
 
 viii) Dividend income is accounted when the right to receive dividend
 is established.
 
 d) Recognition of receipt on joint venture contracts:
 
 In case of Construction Contracts received in the name of joint
 ventures the income and expenditure are included in financial
 statements of the company to the extent of share of the company in the
 joint ventures.
 
 e) Fixed Assets and Depreciation:
 
 i) Fixed Assets are valued at cost less accumulated depreciation.
 Direct cost is inclusive of all expenditure of capital in nature
 attributable to bring the fixed assets to working conditions, duties
 and taxes, incidental expenses including interest relating to
 acquisition and cost of improvements thereon are capitalized until
 fixed assets are ready for use.
 
 ii) Depreciation is provided for all assets except for vehicles on
 straight-line method and depreciation on vehicles is provided on
 written down value method at the rates specified in schedule XIV to the
 Companies Act, 1956, except Heavy Earthmoving Equipments, on which
 higher rate has been charged.
 
 iii) Depreciation on assets sold, discarded or demolished during the
 year is being provided at their respective rates on pro-rata up to the
 date on which such assets are sold, discarded or demolished.
 
 iv) Software used at Head Office and work-shop are amortised over a
 period of three years and software used at Project sites are amortised
 over the project completion period.
 
 f) Impairment of Assets:
 
 The carrying amounts of assets are reviewed at each balance sheet date
 if there is any indication of impairment based on internal/external
 factors. On such indication, the recoverable amount of the assets is
 estimated and if such estimation is less than its carrying amount, the
 carrying amount is reduced to its recoverable amount. The recoverable
 amount is the greater of the asset''s net selling price and value in
 use. In assessing value in use, the estimated future cash fows are
 discounted to their present value using a pre-tax discount rate that
 reflects current market assessments of the time value of money and risks
 specific to the asset.
 
 After impairment, depreciation is provided on the revised carrying
 amount of the asset over its remaining useful life.
 
 g) Value of Inventories:
 
 i) Stock of material, Spare-parts, Diesel oil is valued at cost or net
 realizable value, whichever is less. Cost is determined on
 frst-in-frst-out basis.
 
 ii) Work in progress is valued at contract rate.
 
 h) Retirement Benefts:
 
 i) Contribution to Defined Contribution Schemes such as Provident Fund
 is charged to the Profit and loss account as incurred. Provident Fund
 contribution is made to the Government Administered Provident Fund.
 Company has no further obligation beyond this contribution charged in
 financial statement.
 
 ii) Company also provides for Retirement Benefts in the form of
 Gratuity. Such Benefts are provided for, based on valuation, as at the
 Balance Sheet date, made by independent actuaries. Company has taken
 Group Gratuity Policy of L.I.C. of India and Premium paid is recognized
 as expenses when it is incurred. Actuarial gains and loss in respect of
 Gratuity are charged to Profit & Loss Account.
 
 iii) Leave encashment is paid to employees on annual basis and
 recognized as expenses when it is accured.
 
 i) Investments:
 
 Current investments are carried at the lower of cost or quoted / fair
 value, computed category wise. Long Term Investments are stated at
 cost. Provision for diminution in the value of long-term investments is
 made only if such a decline is other than temporary.
 
 j) Foreign Currency Transactions: 
 
 i) Initial Recognition
 
 Foreign currency transactions are recorded in the reporting currency,
 by applying to the foreign currency amount the exchange rate between
 the reporting currency and the foreign currency at the date of the
 transaction.
 
 ii) Imported Machinery spare parts, Diesel and Raw materials are
 recorded at the exchange rate prevailing on the date of transaction and
 exchange rate difference arises on account of payment and foreign
 currency rate on balance-sheet date are charged/credited to Profit &
 Loss Account.
 
 iii) In case of advance received in foreign currency for construction
 projects in India, the exchange rate difference arises on account of
 repayment of advances received from customers are debited to foreign
 exchange rate difference and charged to Profit & Loss Account.
 
 iv) Any foreign currency exchange rate difference arises on account of
 deemed exports are debited to foreign exchange rate difference account
 and charged to Profit and Loss Account.
 
 v) Exchange rate difference arising on account of payment made during
 current year for outstanding liability as on last day of previous
 financial year on account of imported spare parts & Raw materials are
 debited/credited to foreign exchange rate difference account and
 charged/credited to Profit & Loss Account.
 
 vi) In case of 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 or
 discount on forward contracts is recognized over the life of the
 contract. Any Profit or loss arising on cancellation or renewal of such
 a forward exchange contract is recognised as income or as expenses for
 the period.
 
 k) Borrowing Costs:
 
 Borrowing Costs directly attributable and identifable to the
 acquisition or construction of qualifying assets are capitalized till
 the date such qualifying assets are ready to be put to use. A
 qualifying asset is one that required substantial period of time to get
 ready for its intended use. All other borrowing costs are charged to
 the Profit & Loss Account as period costs.
 
 l) Income Taxes:
 
 Tax Expenses comprise Current Tax and Deferred Tax.
 
 Provision for current tax is made after taking into consideration
 benefts admissible under the provision of the Income Tax Act, 1961.
 
 Deferred Tax is recognized on timing difference being the differences
 between the taxable incomes and accounting income that originate in one
 period and are capable of reversal in one or more subsequent periods.
 Deferred Tax Assets subject to the consideration of prudence are
 recognized and carried forward only to the extent that there is a
 reasonable certainty that sufficient future taxable income will be
 available against which such Deferred Tax Assets can be realized. The
 tax effect is calculated on the accumulated timing difference at the
 year end based on the tax rates and laws enacted or substantially
 enacted on Balance Sheet date.
 
 m) Provisions:
 
 A provision is recognized when an enterprise has a present obligation
 as a result of past event; it is probable that an outfow of resources
 will be required to settle the obligation, in respect of which a
 reliable estimate can be made. Provisions are not discounted to its
 present value and are determined based on best 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.
 
 n) Earning per share (EPS):
 
 In carrying at the EPS, the company''s net Profit after tax, computed in
 terms of the Indian GAAP, is divided by the weighted average number of
 Equity Shares outstanding on the last day of the reporting period. In
 determining EPS, the company considers the net Profit after tax and it
 includes the short provision of current tax and deferred tax of earlier
 year and the exceptional item. The EPS thus arrived is known as Basic
 EPS. To arrive at diluted EPS, net Profit after tax, refereed as above
 is increased by the amount of dividend, interest and other expenses
 that will be saved and reduced by the amount of income that will cease
 to accrue, on the conversion of the dilutive potential equity shares,
 is divided by average number of Equity Shares as computed above and
 weighted number average of Equity Share that could have been issued on
 conversion of shares/warrants having potentials dilute effect subject
 to the terms of the issue of those potential shares. The amounts of
 dividends, interest and other expenses or income are adjusted for any
 attributable taxes. The date of issue of such potential shares
 determined the amount of the weighted average number of potential
 shares.
 
 0) Contingent Liabilities & contingent assets:
 
 Contingent liabilities are not provided for and are disclosed by way of
 notes. Contingent assets are neither recognized nor disclosed in the
 financial statement.
 
 p) Cash and Cash Equivalent:
 
 Cash and cash equivalents for the purpose of cash fow statement
 comprise cash at bank and in hand and short term investments with an
 original maturity of three months or less.
 
 q) General:
 
 Accounting policies not specifically referred to are consistent with
 generally accepted accounting policies.