a.  Basis of Preparation of Financial Statements
 
 The financial statements of the Company have been prepared in
 accordance with the Generally Accepted Accounting Principles in India
 (Indian GAAP) to comply with the Accounting Standards notified under
 the Companies (Accounting Standards) Rules, 2006 (as amended) and the
 relevant provisions of the Companies Act, 1956. The financial
 statements have been prepared on accrual basis under historical cost
 convention and going concern basis. The accounting policies adopted in
 the preparation of the financial statements are consistent with those
 followed in the previous year except for change in the accounting
 policy for depreciation as described in Note 35.
 
 b.  Use of Estimates
 
 The preparation of the financial statements in conformity with Indian
 GAAP requires the Management to make estimates and assumptions
 considered in the reported amounts of assets and liabilities (including
 contingent liabilities) and the reported income and expenses during the
 year.  The Management believes that the estimates used in preparation
 of the financial statements are prudent and reasonable. Future results
 could differ due to these estimates and the differences between the
 actual results and the estimates are recognised in the periods in which
 the results are known / materialise.
 
 c.  Tangible Assets
 
 Fixed assets are stated at cost of acquisition including any
 attributable cost for bringing the assets to its working condition for
 its intended use, less accumulated depreciation and impairment losses,
 if any. Borrowing costs directly attributable to qualifying assets /
 capital projects are capitalized and included in the cost of fixed
 assets.
 
 d.  Project Development Expenditure
 
 Expenditure related to and incurred during implementation of capital
 projects is included under Capital Work in Progress or Project
 Development Expenditure as the case may be. The same is allocated to
 the respective fixed assets on completion of construction/ erection of
 the capital project/ fixed assets.
 
 e.  Intangible assets
 
 Computer Software cost is capitalized and recognized as Intangible
 Assets in terms of Accounting Standard-26 Intangible Assets based on
 materiality, accounting prudence and significant economic benefits
 expected to flow there from for a period longer than one year.
 
 f.  Depreciation
 
 i) Depreciation is provided on additions / deductions of the assets
 during the period from / upto the month in which the asset is added /
 deducted.
 
 In respect of tangible assets, depreciation is provided on Straight
 Line Method considering the rates provided in Appendix III of CERC
 (Terms and conditions of Tariff) Regulations, 2009.
 
 ii) Depreciation on assets acquired / disposed off during the year is
 provided on pro-rata basis with reference to the date of addition/
 disposal.
 
 iii) Assets costing less than Rs 5,000 are written off in the year of
 purchase.
 
 iv) Cost of Leasehold land is amortized over a period of lease.
 
 v) Cost of intangible assets are amortised over a period of five years.
 
 g.  Leases
 
 Assets acquired on leases where a significant portion of risks and
 rewards incidental to ownership is retained by the lessor are
 classified as operating lease.
 
 h.  Investments
 
 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
 permanent in the opinion of the management. Current Investments are
 carried at lower of cost or fair value.
 
 i.  Revenue recognition
 
 i) Revenue (income) is recognized when no significant uncertainty as to
 the measurability or collectability exists.
 
 ii) Interest income is accounted for on an accrual basis. Dividend
 income is accounted for when the right to receive income is
 established.
 
 iii) Delayed payment charges and interest on delayed payment for power
 supply are recognized, on grounds of prudence, as and when recovered.
 
 j. Inventories
 
 Inventories are valued at weighted average cost or net realizable
 value, whichever is lower.
 
 k. Borrowing costs
 
 Borrowing costs includes interest on borrowings and amortisation of
 ancillary costs incurred for borrowings. Such costs to the extent not
 directly related to the acquisition of qualifying assets are charged to
 the Statement of Profit and Loss over the tenure of the borrowings.
 
 l.  Impairment of Assets
 
 An asset is treated as impaired when the carrying cost of assets
 exceeds its recoverable value. An impairment loss is charged to the
 Statement of Profit and Loss in the period in which an asset is
 identified as impaired. The impairment loss, if any, recognized in
 prior accounting periods is reversed if there has been a change in the
 estimate of recoverable amount.
 
 m. Foreign exchange transactions
 
 i) Transactions denominated in foreign currencies are normally recorded
 at the exchange rates prevailing at the time of the transaction.
 
 ii) Monetary items denominated in foreign currencies at the balance
 sheet date are restated at the rates prevailing on that date. In case
 of monetary items which are covered by forward exchange contracts, the
 difference between the rate prevailing on the balance sheet date and
 rate on the date of the contract is recognized as exchange difference
 and the premium paid on forward contracts is recognized over the life
 of the contract.
 
 iii) Non monetary foreign currency items are carried at cost.
 
 iv) Any income or expense arising on restatement / settlement, other
 than that arising on long-term foreign currency monetary items, are
 recognised in the Statement of Profit and Loss for the period in which
 the difference takes place.
 
 v) The exchange differences arising on restatement / settlement of
 long-term foreign currency monetary items are regarded entirely as
 exchange differences and capitalized as part of the depreciable fixed
 assets to which the monetary item relates and depreciated over
 remaining useful life of such assets.
 
 n. Derivative transactions
 
 Pursuant to the announcement on accounting for derivatives issued by
 the Institute of Chartered Accountants of India, the Company, in
 accordance with the principle of prudence as enunciated in AS - 1,
 Disclosure of Accounting Policies, provides for losses in respect of
 all outstanding derivative contracts at the Balance Sheet date by
 marking them to market. Any net unrealized gains arising on such mark
 to market are not recognized as income.
 
 o.  Employee Benefits
 
 i) Gratuity
 
 The Company has an obligation towards gratuity, a defined benefit
 retirement plan covering eligible employees through Group Gratuity
 Scheme of Life Insurance Corporation of India. The Company accounts for
 the liability for the gratuity benefits payable in future based on an
 independent actuarial valuation carried out using Projected Unit Credit
 Method considering discounting rate relevant to Government Securities
 at the Balance Sheet Date.
 
 ii) Provident fund
 
 Retirement Benefits in the form of Provident Fund and Family Pension
 Fund, which are defined benefit contribution schemes, are charged to
 the Project Development Expenditure Account till the commencement of
 commercial production otherwise, the same is charged to the Statement
 of Profit and Loss for the period, in which the contributions to the
 respective funds accrue.
 
 iii) Leave Encashment
 
 Provision for Leave Encashment is determined and accrued on the basis
 of actuarial valuation.
 
 p. Taxes on Income
 
 Provision for income tax is made on the basis of estimated taxable
 income for the year at current rates.
 
 Current Tax represents the amount of Income Tax Payable in respect of
 the taxable income for the reporting period as determined in accordance
 with the provisions of the Income Tax Act, 1961.
 
 Deferred tax is measured based on the tax rates and the tax laws
 enacted or substantively enacted at the Balance Sheet date. Deferred
 tax is recognised on timing differences, being the differences between
 the taxable income and the accounting income that originate in one
 period and are capable of reversal in one or more subsequent periods.
 Deferred tax assets and deferred tax liabilities are offset, if a
 legally enforceable right exists to set off. Deferred tax assets and
 deferred tax liabilities relate to the taxes on income levied by the
 same 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 which such deferred tax assets
 can be realized. If the Company has carry forward unabsorbed
 depreciation or carry forward tax losses, deferred tax assets are
 recognized only if there is a virtual certainty supported by convincing
 evidences that they can be realized against future taxable profits.
 Unrecognized deferred tax assets of earlier years are re- assessed and
 recognized to the extent that it has become reasonably certain that
 future taxable income will be available against which such deferred tax
 assets can be realized.
 
 q. Provisions, contingent liabilities and contingent assets
 
 Provisions involving substantial degree of estimation in measurement
 are recognised when there is a present obligation as a result of past
 events and it is probable that there will be an outflow of resources.
 Contingent liabilities are not recognised but are disclosed in the
 notes. Contingent assets are neither recognized nor disclosed in the
 financial statements.