1. This statement has been reviewed by the Audit Committee and recommended to the Board and taken on record at the meeting of the Board of Directors of the Company held on February 20, 2009.

2. The Board of Directors of the Company have recommended a dividend of Rs 2.20 per equity share of Rs 2 each for the year ended on December 31, 2008.

3. Revenue from long term contracts are recognised on the percentage of completion method, in proportion that the contract costs incurred for work performed up to the reporting dale bear to the estimated total contract costs. Till December 31, 2007, the Company recognised project cost normally upon receipt of material at project sites. As at December 31, 2008, the Company has recognised cost on all project specific material in transit as at December 31, 2008, where significant risks and rewards of ownership have passed. Consequent to this change, the Company has recognised higher project revenues of Rs 2660 Lakhs and higher profit before tax of Rs 290 Lakhs for the quarter and year ended December 31, 2008.

4. From the quarter ended September 30, 2008, the Company has adopted the principles of AS 30 ´Financial Instruments: Recognition and Measurement´, to account For derivative contracts (including embedded derivatives) to the extent the adoption does not conflict with existing accounting standards, Companies Act, 1956 and other regulatory requirements. Consequent to such adoption, the Company has recognised net gain of Rs 1807.67 Lakhs during the year on mark to market valuation of such derivative contracts, with a consequential impact on profit before tax for the year ended December 31, 2008.

5. The figures of Employee Cost, Other Expenditure and interest are net of amount capitalised during the respective periods.

6. The figures of the previous year/ periods have been regrouped/ reclassified, wherever necessary.

Biplab Majumder
Managing Director