I.  BASIS OF PREPARATION
 
 The financial statements have been prepared to comply in all material
 respects with the Accounting Standards notified by Companies
 (Accounting Standards) rules, 2006, (as amended) and the relevant
 provisions of the Companies Act, 1956. The financial statements have
 been prepared under the historical cost convention on an accrual basis.
 The accounting policies have been consistently applied by the Company.
 
 II.  USE OF ESTIMATES
 
 The preparation of financial statements in conformity with generally
 accepted accounting principles require management to make estimates and
 assumptions that affect the reported amounts of assets and liabilities
 and disclosure of contingent liability at the date of the financial
 statements and the results of operations during the reporting period.
 Although these estimates are based upon management''s best knowledge of
 current events and actions, actual results could differ from these
 estimates.
 
 III.  FIXED ASSETS
 
 Fixed assets are stated at cost, less accumulated depreciation and
 impairment loses if any. Cost comprises the purchase price and any
 attributable cost of bringing the asset to its working condition for
 its intended use.  Borrowing costs relating to acquisition to fixed
 assets which takes substantial period of time to get ready for its
 intended use are also included to the extent they relates to the period
 till such assets are ready to be put to use.
 
 IV.  DEPRECIATION
 
 Depreciation on assets is provided using the Straight Line Method at
 the rates computed based on estimated useful life of the assets, which
 are equal to corresponding rates prescribed under Schedule XIV to the
 Companies Act, 1956.
 
 V.  IMPAIRMENT
 
 The carrying amounts are reviewed at each balance sheet date if there
 is any indication of impairment based on internal/external factors. An
 impairment loss is recognized wherever the carrying amount of an asset
 exceeds its recoverable amount. The recoverable amount is greater of
 the asset''s net selling price and value in use. In assessing value in
 use, the estimated future cash flows are discounted to their present
 value at the weighted average cost of capital.
 
 After impairment, depreciation is provided on the revised carrying
 amount of the assets over its remaining useful life.
 
 VI INVESTMENTS
 
 Investments that are readily realizable and intended to be held for not
 more than a year are classified as current investments. All other
 investment are classified as long-term investment. Current investments
 are carried at lower of cost and fair value determined on an individual
 investment basis. Long Term Investments are carried at cost. However,
 provision for diminution in value is made to recognize a decline other
 than temporary in the value of the investments.
 
 VII.  RETIREMENT AND OTHER EMPLOYEE BENEFITS.
 
 Defined Contribution Plan
 
 Contributions to the provident and pension funds are made monthly at a
 predetermined rate to the Regional Provident Fund Commissioner and
 debited to the profit and loss account on an accrual basis. There are
 no other obligations other than the contribution payable to the
 respectable funds.
 
 Defined Benefit Plan
 
 Gratuity liability is defined benefit obligations and liability toward
 gratuity is provided on the basis of an actuarial valuation as at
 balance sheet date using the Projected Unit Credit method and debited
 to the profit and loss account on an accrual basis. Actuarial gains and
 losses arising during the year are recognized in the profit and loss
 account.
 
 Long term compensated absence is similarity valued on an actuarial
 basis. Short term compensated absence are provided for on estimates
 basis.
 
 VIII.  INVENTORIES
 
 Inventories are stated at cost or net realizable value, whichever is
 lower. The cost is arrived at on first in first out method (FIFO).
 
 IX.  REVENUE RECOGNITION
 
 Sales have been recognized on the basis of works completed and billed
 to the customers.
 
 X.  PRIOR PERIOD ITEMS
 
 Income and Expenses pertaining to the earlier year, if any, which have
 a material impact on the financial statements are disclosed
 separately,.
 
 XI.  TAXATION
 
 Tax expense comprises of current and deferred tax. Current income tax
 is measured at the amount expected to be paid to the authority in
 accordance with Income-tax Act, 1961. Deferred income taxes reflects
 the impact of current year timing differences between taxable income
 and accounting income for the year and reversal of timing differences
 of earlier years.
 
 Deferred tax is measured based on the tax rates and the tax laws
 enacted or substantively enacted at the balance sheet date. Deferred
 tax assets and deferred tax liabilities are offset, if a legally
 enforceable right exists to set off current tax assets against current
 tax liabilities and the deferred tax and deferred tax liabilities
 relate to the taxes on income levied by some governing taxation laws.
 Deferred tax assets are recognized only to the extent that there is
 reasonable certainty that sufficient future taxable income will be
 available against such deferred tax assets can be realized. In
 situation where the company has unabsorbed depreciation or carry
 forward tax losses, all deferred tax assets are recognized only if
 there is virtual certainty supported by convincing evidence that they
 can be realized against future taxable profits.
 
 At each balance sheet date the Company re-assesses unrecognized
 deferred tax assets. It recognized unrecognized deferred tax assets to
 the extent that it has become reasonable certain or virtually certain,
 as the case may be that sufficient future taxable income will be
 available against which such deferred tax assets can be realized.
 
 XII.  EARNING PER SHARE
 
 Basic earning per share are calculated by dividing the net profit or
 loss for the period attributable to equity shareholders (after
 deducting attributable taxes) by the weighted average number of equity
 shares outstanding during the period. Partly paid equity shares are
 treated as fraction of an equity share to the extent that they were
 entitled to participate in dividends relative to a fully paid equity
 share during the reporting period.
 
 XIII PROVISIONS
 
 A provision is recognized when an enterprise has a present obligation
 as a result of past event; it is probable that an outflow 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 bases 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. Contingent liabilities are not recognized but are disclosed
 in the notes. Contingent assets are neither recognized not disclosed in
 the financial statement.