1.  Background information
 
 Entegra Limited (Entegra or the Company) was incorporated in 1995
 as a private limited company. In 2000, the Company was converted into a
 public limited company. The Company is listed on Bombay Stock Exchange
 Limited and National Stock Exchange of India Limited. Entegra is
 engaged in the development of integrated global renewable energy
 projects.
 
 2.  Basis of presentation
 
 The financial statements are prepared and presented under the
 historical cost convention on the accrual basis of accounting and in
 accordance with the Accounting Standards notified in the Companies
 (Accounting Standard) Rules, 2006 and the relevant provisions of the
 Companies Act, 1956, to the extent applicable.
 
 3.  Use of estimates
 
 The preparation of the financial statements in conformity with
 generally accepted accounting principles requires management to make
 estimates and assumptions that affect the reported amount of assets and
 liabilities and disclosure of contingent liabilities on the date of the
 financial statements. Management believes that the estimates made in
 the preparation of financial statements are prudent and reasonable.
 Actual future period''s results could differ from those estimates. Any
 revisions to accounting estimates are recognised in the period in which
 such revisions are made.
 
 4.1.  Revenue recognition
 
 i.  Revenues from sales of goods are recognized on shipment or dispatch
 to customers and are recorded exclusive of Value Added Taxes but are 
 net of any sales returns, 
 
 ii.  Revenues from services rendered are recognized on completion of the service and are recorded exclusive
of Service Tax.  
 
 iii.  Interest income on deposits with banks and investments is recognized 
 on a time proportion basis, 
 
 iv Dividend incomes on investments are accounted for when the right to 
 receive the payment is established.
 
 4.2.  Purchases
 
 Purchases are shown exclusive of Value Added Tax.
 
 4.3.  Fixed assets and depreciation
 
 Fixed assets are stated at cost of acquisition/construction including
 any cost attributable to bringing the assets to their working
 condition, less accumulated depreciation and impairment loss, if any.
 Intangible assets are recorded at the consideration paid for
 acquisition of such assets and are carried at cost less accumulated
 amortization and impairment.
 
 Depreciation on fixed assets is provided on straight line method at
 the rates and in the manner prescribed in Schedule XIV of the Companies
 Act, 1956 and on pro-rata basis with reference to the month of
 additions / deductions. Fixed assets having value lower than Rs.5,000
 are depreciated fully in the year of acquisition / installation.
 Intangible assets are amortised over the irrespective individual
 estimated useful lives on a straight-line basis, commencing from the
 date the asset is available to the Company for its use.
 
 4.4.  Expenditure during construction period
 
 Expenditure during construction period reflects an element of capital
 work in progress and includes directly attributable costs that relate
 to the project and general and administration overheads as are specifi
 cally attributable to the construction of the project. Such expenditure
 is included under ''Pre operative expenses (pending allocation) and will
 be capitalized under relevant fixed asset accounts upon commencement
 of commercial generation of power.
 
 4.5.  Inventories
 
 Inventories of components used for renewable energy projects have been
 valued at lower of cost or net realizable value. Civil construction
 materials are valued at cost.
 
 4.6.  Investments
 
 Long term investments are stated at cost and provision is made to
 recognise any decline, other than temporary, in the value of such
 investments.
 
 4.7.  Foreign currency transactions
 
 Transactions denominated in foreign currencies are recorded at the
 exchange rates prevailing on the date of the transactions. Gains or
 losses resulting from the settlement of such transactions and from
 translation of monetary assets and liabilities denominated in foreign
 currency are recognised in the statement of Profit and Loss.
 
 4.8.  Employee benefits
 
 Gratuity
 
 Employees in India are entitled to benefits under the Payment of
 Gratuity Act, 1972, a defined benefit retirement plan covering
 eligible employees of the Company. The Plan provides a lump-sum payment
 to eligible employees at retirement or on termination of employment.
 The gratuity benefit conferred by the Company on its employees is
 equal to or greater than the statutory minimum.
 
 The Company provides for liability towards gratuity plan on the basis
 of actuarial valuation. The entire amount of gratuity is unfunded.
 
 Compensated absences
 
 The Company''s liability towards compensated absences (leave encashment)
 is determined on an actuarial basis for the entire unavailed vacation
 balance standing to the credit of each employee as at period-end.
 
 4.9.  Borrowing costs
 
 Borrowing costs that are attributable to the acquisition or
 construction of qualifying assets are capitalised as part of the cost
 of such assets. A qualifying asset is one that necessarily takes a
 substantial period of time to get ready for its intended use or sale.
 All other borrowing costs are charged to the income statement.
 
 4.10.  Impairment of assets
 
 The carrying amounts of assets are reviewed at each Balance Sheet date
 if there is any indication of impairment based on internal/external
 factors. An asset is treated as impaired when the carrying cost of
 assets exceeds its recoverable value. An impairment loss, if any, is
 charged to statement of Profit and Loss in the year in which an asset
 is identified as impaired. Reversal of impairment losses recognised in
 prior years is recorded when there is an indication that the impairment
 losses recognised for the assets no longer exist or have decreased.
 
 After impairment depreciation is provided on the revised carrying
 amount of the asset over its remaining useful life. However, the
 carrying value after reversal is not increased beyond the carrying
 value that would have prevailed by charging usual depreciation if there
 was no impairment.
 
 4.11.  Provisions and contingent liabilities
 
 The Company creates a provision when there is present obligation as a
 result of a past event and it is probable that an outfl ow of resources
 embodying economic benefits will be required, and a reliable estimate
 can be made of the amount required to settle 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. When there is a possible obligation
 or a present obligation in respect of which the likelihood of outfl ow
 of resources is remote, no provision or disclosure is made.
 
 4.12.  Income taxes
 
 Income tax expense comprises current income tax, deferred tax and
 fringe benefit tax.
 
 Current taxes
 
 Provision for current income-tax is recognised in accordance with the
 provisions of Indian Income Tax Act, 1961, and is made annually based
 on the tax liability after taking credit for tax allowances and
 exemptions.
 
 Deferred taxes
 
 Deferred tax assets and liabilities are recognised for the future tax
 consequences attributable to timing differences that result between the
 Profits offered for income taxes and the Profits as per the fi
 nancial statements. Deferred tax assets and liabilities are measured
 using the tax rates and the tax laws that have been enacted or
 substantively enacted at the balance sheet date. The effect of a change
 in tax rates on deferred tax assets and liabilities is recognised in
 the year that includes the enactment date.
 
 Deferred tax assets are recognised only to the extent there is
 reasonable certainty that the assets can be realised in the future,
 however, where there is unabsorbed depreciation or carried forward loss
 under taxation laws, deferred tax assets are recognised only if there
 is virtual certainty, supported by convincing evidence of recognition
 of such assets. Deferred tax assets are reassessed for the
 appropriateness of their respective carrying values at each balance
 sheet date.
 
 4.13.  Leases
 
 For operating leases, lease payments (excluding costs for services such
 as insurance and maintenance) are recognised as an expense in the
 statement of Profit and loss on a straight line basis unless another
 systematic basis is more representative of the time pattern of the
 user''s benefit, except where the rental is for pre operative
 activities in which case it is charged to ''Pre operative expenses
 (pending allocation)''.