Te Financial Statements are prepared to comply in all material aspects
 with all the applicable accounting principles in India, the applicable
 Accounting Standards prescribed under Section 211(3C) of the Companies
 Act,1956 and the relevant provisions of the Companies Act,1956 of India
 (''the Act'').
 
 a) FIXED ASSETS
 
 Fixed Assets are stated at cost of acquisition and related expenditure.
 
 b) DEPRECIATION
 
 Depreciation is provided on Straight Line Method at the rates
 prescribed in Schedule XIV to the Companies
 
 Act,1956, except as indicated below:
 
 i) Leasehold Land and Building on leasehold land are amortised over the
 period of lease.
 
 ii) Building on contractee''s land is depreciated @ 5% on Straight Line
 Method.
 
 iii) Construction Equipments included in Plant and Machinery are
 depreciated @ 12.5% and 20%.
 
 iv) In case of branches outside India, depreciation is provided on
 Plant and Machinery @ 10%.
 
 v) Computer Software are depreciated @ 33.33%.
 
 c) IMPAIRMENT LOSS
 
 An Impairment loss is recognised wherever the carrying amount of the
 fixed assets exceeds the recoverable amount i.e. the higher of the
 asset''s net selling price and value in use.
 
 d) INVESTMENTS
 
 Long Term investments are stated at cost or under and dimunition in
 carrying amount, other than temporary, is written down / provided for.
 Current investments which are expected to be liquidated within one year
 are valued at lower of cost and fair value. Investment in integrated
 Joint Ventures are carried at cost net of adjustments for Company''s
 share in profits or losses as recognised.
 
 e) INVENTORIES
 
 Inventories other than stores (including tools) are valued at lower of
 cost and net realisable value. Stores are valued at or below cost. The
 cost, in general, are determined under FIRST IN FIRST OUT method. Tools
 comprising various construction implements and tackles which are more
 of a type of equipment having short life are stated on the basis of
 their cost and are amortised based on effective future life determined
 on technical evaluation.
 
 f) REVENUE
 
 Revenue is recognised under percentage of completion method. The stage
 of completion is determined on the basis of completion of physical
 proportion of the contract work. Extra work and variation in contract
 (as mutually agreed), to the extent that it is probable that they will
 result in revenue and can be reliably measured is also covered.
 
 Income from Plant and Machinery / Equipment on hire contract are
 recognised on accrual basis over the contract period.
 
 Dividend income on investments is accounted for when the right to
 receive the payment is established.
 
 Interest income is recognised on an accrual basis.
 
 g) SITE DEVELOPMENT AND INITIAL EXPENSES Site development including
 initial expenses (shown in Work-in-Progress) thereon is charged off
 proportionately within the stipulated period of contract from the date
 of revenue recognition.
 
 h) BORROWING COST Borrowing cost attributable to the acquisition of
 qualifying assets are added to the cost up to the date when such assets
 are ready for their intended use. Other borrowing costs are recognised
 as expenses in the period in which these are incurred.
 
 i) CLAIMS AND COUNTER CLAIMS Claims and counter claims (related to
 customers), including those under arbitration, are accounted for on
 their final disposal. Other contract related claims are recognised when
 there is reasonable certainity as to their recoverability.
 
 j) TRANSACTIONS IN FOREIGN CURRENCIES Transactions in respect of
 Foreign Currencies are recorded at exchange rates prevailing on the
 date of the transaction. Monetary items denominated in foreign currency
 are restated at the exchange rate prevailing on the Balance Sheet date.
 Foreign currency non-monetary items carried in terms of historical cost
 are reported using the exchange rate at the date of transactions.
 Exchange differences arising on settlement of transactions and/or
 restatements are dealt with in the Profit and Loss Account.
 
 In respect of Forward Exchange Contracts with underlying transaction,
 the premium or discount arising at the inception of such contract is
 amortised as expenses or income over the life of contract.
 
 In respect of the financial statements of foreign branches (having been
 treated as non-integral operations) the assets and liabilities, both
 monetary and non-monetary, are translated at the closing rate and
 income and expense items are translated at the average rate for the
 period. Te resultant exchange differences are accumulated in Foreign
 Currency Translation Reserve Account.
 
 k) EMPLOYEE BENEFITS
 
 a) Short term Employee Benefits:
 
 The undiscounted amount of Short-term Employee Benefits expected to be
 paid in exchange for the services rendered by employees is recognised
 during the period when the employee renders the service.
 
 b) Post Employment benefit Plans:
 
 Contributions under defined Contribution Plans payable in keeping with
 the related schemes are recognised as expenses for the year.
 
 For defined benefit Plans, the cost of providing Benefits is determined
 using the Projected Unit Credit Method, with actuarial valuations being
 carried out at each Balance Sheet date. Actuarial gains and losses are
 recognised in full in the Profit and Loss Account for the period in
 which they occur. Past service cost is recognised immediately to the
 extent that the Benefits are already vested, and otherwise is amortised
 on a straight-line basis over the average period until the Benefits
 become vested. Te retirement benefit obligation recognised in the
 Balance Sheet represents the present value of the defined Benefit
 obligation as adjusted for unrecognised past service cost, and as
 reduced by the fair value of scheme assets. Any asset resulting from
 this calculation is limited to the present value of any economic Benefit
 available in the form of refunds from the plan or reductions in future
 contributions to the plan.
 
 c) Other Long-term Employment Benefits (unfunded):
 
 Te Cost of providing long term employee Benefits is determined using
 Projected Unit Credit Method with actuarial valuation being carried out
 at each Balance Sheet date. Actuarial gains and losses and past service
 cost are recognised immediately in the Profit and Loss Account for the
 period in which they occur.  Other long term employee benefit obligation
 recognised in the Balance Sheet represents the present value of related
 obligation.
 
 l) TAXATION Current Tax in respect of taxable income is provided for
 the year based on applicable tax rates and laws.  Deferred tax is
 recognised subject to the consideration of prudence in respect of
 deferred tax assets, on timing difference, 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 and is
 measured using tax rates and laws that have been enacted or
 substantively enacted by the Balance Sheet date. Deferred tax assets
 are reviewed at each Balance Sheet date to re-assess realisability
 thereof.
 
 m) RESEARCH AND DEVELOPMENT EXPENDITURE
 
 Revenue expenditure on Research and Development (R & D) is charged in
 the year in which it is incurred.  Fixed assets for R & D are
 capitalised.
 
 n) PROVISION AND CONTINGENT LIABILITIES
 
 The Company recognises a provision when there is a present obligation as
 a result of a past event that probably requires an outflow of resources
 and a reliable estimate can be made of the amount of the obligation. A
 disclosure for a contingent liability is made when there is a possible
 obligation or a present obligation that may, but probably will not,
 require an outflow of resources or there is a present obligation,
 reliable estimate of the amount of which cannot be made. Where there is
 a possible obligation or a present obligation and the likelihood of
 outflow of resources is remote, no provision or disclosure for
 contingent liability is made.