1.  Basis of Accounting
 
 The financial statements are prepared under historical cost convention,
 on going concern concept and in compliance with the Accounting
 Standards notified under section 211(3C) of the Companies Act, 1956
 (the Act). The Company follows mercantile system of accounting and
 recognises income and expenditure on accrual basis to the extent
 measurable and where there is certainty of ultimate realisation in
 respect of incomes. Accounting policies not specifically referred to
 otherwise, are consistent and in consonance with the generally accepted
 accounting policies.
 
 2.  Fixed Assets
 
 Fixed Assets are stated at cost, inclusive of incidental expenses
 related thereto and are net of Cenvat Credit less accumulated
 depreciation. Cost of software includes license fees and
 implementation/ integration expenses.
 
 3.  Borrowing Costs
 
 Borrowing costs directly attributable to the acquisition/ construction
 of fixed assets are apportioned to the cost of the fixed assets up to
 the date on which the asset is put to use/ commissioned.
 
 4.  Depreciation
 
 a) Depreciation on Fixed Assets is provided on the written-down-value
 method at the rates and in the manner prescribed under Schedule XIV to
 the Companies Act. Depreciation on additions/ deletions to fixed assets
 is calculated pro-rata from/up to the date of such additions/
 deletions.
 
 b) Computer Software is amortized on the straight line method of five
 years.
 
 c) Assets individually costing Rs. 0.05 Lakhs or less are fully
 depreciated in the year of purchase.
 
 5.  Investments
 
 Investments are classified as current and long term investments.
 Current Investments are valued at lower of cost or market value. Long
 term Investments are stated at cost. The decline in the value of Long
 term investments, other than temporary is provided for.
 
 6.  Inventories
 
 Inventories of stores and construction raw materials are valued at
 lower of cost or net realizable value on first-in-first-out basis.
 Works in progress on construction contracts reflects the value of
 material inputs and expenses including appropriate overheads incurred
 on such contracts, at cost.
 
 7.  Taxes on Income
 
 a) Provision for current tax is made considering various allowances and
 benefits available to the Company under the provisions of Income Tax
 Act, 1961.
 
 b) In accordance with Accounting Standard AS-22 Accounting for Taxes
 on Income, deferred tax resulting from timing differences between book
 and tax profits are accounted for at tax rate substantially enacted by
 the Balance Sheet date to the extent the timing differences are
 expected to be crystallized.
 
 Deferred Tax Assets arising on account of carried forward losses and
 unabsorbed depreciation as per Income Tax Act, 1961 are recognised to
 the extent there is a virtual certainty supported by convincing
 evidence that such assets will be realized.
 
 8.  Sales Tax / WCT / VAT:
 
 Where the company has contractual right to claim equal amounts
 regarding the said liability from the clients, the same is not charged
 as expenditure.
 
 Where the ultimate liability is on the Company, the same is accounted
 provisionally as per the information and the final adjustment for the
 same is done as and when the demand is raised by the concerned
 authorities on the Company. During the year under review, sales tax
 expenses include amount paid on account of assessment order during the
 year.
 
 9.  Employee Benefits
 
 a) Defined Contribution Plans
 
 The Company contributes on a defined contribution basis to Employee''s
 Provident Fund, Employee''s State Insurance Fund towards post employment
 benefits, all of which are administered by the respective Government
 authorities, and has no further obligation beyond making its
 contribution, which is expensed in the year to which it pertains.
 
 b) Defined Benefit Plans
 
 The Company has a Defined Benefit Plan namely Gratuity for all its
 employees. The liability for the defined benefit plan of Gratuity is
 determined on the basis of an actuarial valuation carried out by the
 insurer, HDFC Standard Life, from whom the Company has taken out Group
 Gratuity Policy.
 
 Actuarial gains and losses which comprise experience adjustment and the
 effect of changes in actuarial assumptions are recognised in the Profit
 and Loss Account.
 
 c) Employee Leave Entitlement
 
 The employees of the Company are entitled to leave as per the leave
 policy of the Company. The liability in respect of unutilised leave
 balances is provided on the basis of an actuarial valuation carried out
 by the insurer, HDFC Standard Life, as at the year end and charged to
 the Profit and Loss Account.
 
 10. Foreign Currency Transactions
 
 Foreign currency transactions are recorded at the exchange rates
 prevailing on the date of such transactions. Monetary assets and
 liabilities as at the Balance Sheet date are translated at the rates of
 exchange prevailing at the date of the Balance Sheet.  Gains and losses
 arising on account of differences in foreign exchange rates on
 settlement/ translation of monetary assets and liabilities are
 recognised in the Profit and Loss Account. Non-monetary foreign
 currency items are carried at cost.
 
 11. Revenue Recognition
 
 a) Income from Construction is recognized as determined by the Project
 Manager by taking into consideration actual cost incurred and profit
 evaluated and duly certified by the client. All other income
 expenditure are recognized and accounted for on an accrual basis.
 Losses on contracts are fully accounted for as and when incurred.
 Foreseeable losses are accounted for when they are determined.
 Insurance claims are accounted for on cash basis.
 
 b) Turnover represents Work Certified as determined by the Project
 Managers by taking into consideration the actual cost incurred and
 profit evaluated and duly certified by the client and is inclusive of
 service tax.
 
 c) Dividends are accounted for when the right to receive dividend is
 established.
 
 d) Income from interest on deposits, loans and interest bearing
 securities is recognized on time proportionate method.
 
 e) Share of profit/loss from firms, in which the company is a partner,
 is accounted for in the financial year ending on (or immediately
 before) the date of the balance sheet.
 
 12. Impairment of Assets
 
 The Company assesses at each balance sheet date whether there is any
 indication that an asset may be impaired. If any such indication
 exists, the Company estimates the recoverable amount of the asset. If
 such recoverable amount of the asset or recoverable amount of the cash
 generating unit to which the asset belongs is less than its carrying
 amount, the carrying amount is reduced to its recoverable amount. The
 reduction is treated as an impairment loss and is recognised in the
 Profit and Loss Account. If at the Balance Sheet date there is an
 indication that if a previously assessed impairment loss no longer
 exists, the recoverable amount is reassessed and the asset is reflected
 at the recoverable amount.
 
 13. Provisions, Contingent Liabilities and Contingent Assets
 
 The Company recognizes 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.
 
 Where there is a possible obligation or a present obligation but the
 likelihood of outflow of resources is remote, no provision or
 disclosure is made.
 
 Contingent Assets are neither recognized nor disclosed.
 
 14. Accounting Estimates
 
 The preparation of financial statements requires estimates and
 assumptions to be made that affect the reported amounts of assets and
 liabilities on the date of financial statements and the reported
 amounts of revenue and expenses during the reporting period. Difference
 between the actual results and the estimates are recognized in the
 period in which the results are known/ materialised.
 
 15. Leases
 
 Lease arrangements where the risks and rewards incident to ownership of
 an asset substantially vests with the lessor, are recognised as
 operating lease. Lease rental under operating lease are charged off to
 the Profit and Loss Account, as incurred.
 
 16. Accounting for Joint Venture Contracts:
 
 a) Contracts executed in Joint Venture under work sharing arrangements
 (consortium) are accounted in accordance with the accounting policy
 followed by the company as that of an independent contract to the
 extent work is executed.
 
 b) In respect of contracts executed in Integrated Joint Ventures under
 profit sharing arrangements, the services rendered to the joint
 ventures are accounted as income on accrual basis. The profit/loss is
 accounted for, as and when it is determined by the Joint Ventures and
 the net investment in the Joint Ventures is reflected as investments.