1) Basis of preparation of fnancial statements
 
 The fnancial statements are prepared under the historical cost
 convention on accrual and going concern basis and in compliance with
 the accounting standards issued by the Institute of Chartered
 Accountants of India, in accordance with the Generally Accepted
 Accounting Principles (GAAP) and provisions of the Companies Act, 1956.
 
 2) use of estimates
 
 The preparation of fnancial statements in conformity with the generally
 accepted accounting principles requires management to make estimates
 and assumptions that affect the reported amounts of assets and
 liabilities and the disclosure of contingent liabilities on the date of
 fnancial statements and reported amounts of revenue and expenses during
 the reporting period. Actual results could differ from those estimates.
 Any revision to accounting estimates is recognized prospectively in
 current and future periods.
 
 3) Fixed 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 fxed
 assets.
 
 4) 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 fxed assets on completion of construction/ erection of
 the capital project/ fxed assets.
 
 5) 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 signifcant economic benefts
 expected to fow there from for a period longer than one year.
 
 6) depreciation
 
 i) Depreciation on fxed assets is provided on Straight Line Method at
 rates and in the manner specifed in
 
 Schedule XIV to the Companies Act, 1956.  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 Lease
 hold land is amortized over the period of lease.  v) Costs of
 Intangible assets are amortized over a period of 5 years.
 
 7) Leases
 
 Assets acquired on leases where a signifcant portion of risks and
 rewards incidental to ownership is retained by the lessor are classifed
 as operating lease.
 
 8) 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.
 
 9) revenue recognition
 
 i) Revenue (income) is recognized when no signifcant uncertainty as to
 the measurability or collectability exist.
 
 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.
 
 10) inventories
 
 Inventories are valued at weighted average cost or net realizable
 value, whichever is lower.
 
 11) Borrowing costs
 
 Borrowing costs that are attributable to the acquisition / construction
 of qualifying assets are capitalized as part of the cost of such
 assets. A qualifying asset is one that necessarily takes substantial
 period of time to get ready for intended use.
 
 12) 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
 Proft and Loss Account in the period in which an asset is identifed 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.
 
 13) 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 on account of exchange differences either on
 settlement or on translation are recognized in the Proft and Loss
 Account except in respect of the project cost, same are recognized as
 Capital Work-in-Progress.
 
 v) Pursuant to the Companies (Accounting Standards) Amendment Rules,
 2009, the Company has exercised the option of deferring the charge to
 the Proft and Loss Account arising on exchange differences in respect
 of accounting periods commencing on or after December 7, 2006, on
 long-term foreign currency monetary items (i.e. monetary assets or
 liabilities expressed in foreign currency and having a term of 12
 months or more at the date of origin). As a result of such exchange
 differences, so far as they relate to the acquisition of depreciable
 capital assets, have been adjusted to the cost of such assets and would
 be adjusted over the balance life of the assets.
 
 14) 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.
 
 15) Employee benefts
 
 i) Gratuity:
 
 The Company has an obligation towards gratuity, a defned beneft
 retirement plan covering eligible employee through Group Gratuity
 Scheme of Life Insurance Corporation of India. The Company accounts for
 the liability for the gratuity benefts 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 Benefts in the form of Provident Fund and Family Pension
 Fund, which are defned beneft contribution schemes, are charged to the
 Project Development Expenditure Account till the
 
 commencement of commercial production or to the Proft and Loss Account
 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.
 
 16) 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/ Recoverable in respect of the taxable
 income/ loss for the reporting period.
 
 Deferred tax is measured based on the tax rates and the tax laws
 enacted or substantively enacted at the Balance Sheet date. In view of
 the Company availing tax deduction under Section 80IAB of the Income
 Tax Act, 1961, deferred tax is recognized in respect of timing
 difference, which originates during the tax holiday period but reverse
 after the tax holiday period. Deferred tax assets and deferred tax
 liabilities are offset, if a legally enforceable right exists to set
 off current tax assets against the current tax liabilities and the
 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 suffcient 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 profts. 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 be realized.
 
 17) 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 outfow of resources.
 Contingent liabilities are not recognised but are disclosed in the
 notes. Contingent assets are neither recognized nor disclosed in the
 fnancial statements.