1 Basis of Accounting:
 
 The company follows accrual method of accounting and financial
 statements are prepared on historical cost convention as a going
 concern in accordance with requirements of Companies Act, 1956 and
 generally accepted accounting principles and practices in India.
 
 2 Use of Estimate:
 
 The preparation of Financial Statements requires management to make
 assumptions that may affect reported amounts of assets and liabilities,
 the disclosure of contingent liabilities on the date of financial and
 the reported amounts of revenues and expense. Actual results could
 differ from those estimates .Any revisions to accounting estimates are
 recognized prospectively in current and future projects.
 
 3 Inventory Valuation:
 
 (a) Trading Activities:
 
 Inventories are valued at cost or net realizable value whichever is
 lower. Cost of materials is ascertained on FIFO method.
 
 (b) Manufacturing Activities:
 
 Inventories are valued as per the following method:
 
 4 Depreciation:
 
 Depreciation is provided on straight line method at the rates provided
 in Schedule XIV of the Companies Act, 1956 in accordance with the
 provisions of Section 205 (2) (b) of the Companies Act, 1956. In
 respect of Assets costing less than Rs. 5,000/- the rate of
 depreciation is taken as 100%. Depreciation is computed pro-rata with
 reference to the number of months of use during the year.
 
 5 Intangible Asset:
 
 Intangible assets including Export benefits under duty exemption
 passbook are recognised only if it is probable that the future economic
 benefits that are attributable to the asset will flow to the enterprise
 and the cost of the asset can be measured reliably.
 
 The intangible assets are recorded at cost and amortized on straight
 line basis over the estimated useful lives as follows:
 
 6 Loose Tools:
 
 Loose Tools are being written off over a period of 5 years in equal
 Amounts. Damaged or unserviceable tools are charged to revenue in the
 same year.
 
 7.  Revenue Recognition:
 
 Revenue is recognized on accrual basis if there is reasonable certainty
 of its ultimate realization/collection.
 
 (a) In respect of transportation operations, revenue is recognised at
 the point of dispatch to customers.  Revenue in respect of contractual
 transport business is recognised in proportion to the value of work
 completed.
 
 (b) In respect of Wind Energy Generation, revenue is recognised on the
 basis of units generated and billed. Unbilled units are allocated on
 pro-rata basis based on Billing Cycle.
 
 (c) In Manufacturing Division value of sales are exclusive of Excise
 Duty.
 
 (d) In respect of Trading concern, revenue is recognized at the time of
 sale of goods.
 
 8 Fixed Assets:
 
 (a) Fixed asset are stated at cost of acquisition or construction (net
 of Cenvat credits) less depreciation and impairment losses, if any. All
 costs relating to the acquisition and installation of fixed assets are
 capitalised.
 
 (b) Costs including expenses incurred on asset which are not ready for
 use in the financial year are accounted as Capital work in progress
 until the asset is ready for use.
 
 9 Foreign Currency Transactions:
 
 Transactions in foreign currency are recorded at the exchange rates
 prevailing on the date of transaction.  Foreign Currency Assets and
 Liabilities are stated at the exchange rates prevailing at the date of
 balance sheet. Realised gains or losses on foreign exchange transaction
 are recognised in the profit and loss account.
 
 10 Investments:
 
 Current Investments are carried at lower of cost and quoted / fair
 value, computed category wise. 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 other than temporary in the opinion of
 the management.
 
 11 Accounting for employee benefits:
 
 (a) Short Term Benefits
 
 Short term employee benefits are recognized as an expense at the
 undiscounted amount in profit & Loss Account of the year in which
 related service is rendered.
 
 (b) Defined Contribution Plan
 
 As per applicable laws the eligible employees of the company are
 entitled to receive benefits under the provident fund, a defined
 contribution plan, in which both employees and company make monthly
 contribution at specified percentage of the covered employee salary.
 The contributions as specified under the law are paid to the respective
 provident fund authorities as specified by law as per the scheme framed
 under the governing laws.
 
 (c) Defined Benefit Plan
 
 The company has not formulated any specific terms of employment
 providing for specific requirement benefits. However as per applicable
 laws, the company has an obligation towards gratuity, a defined benefit
 retirement plan covering eligible employees at retirement,
 death/disablement while in employment or termination of employment, of
 an amount equivalent to 15 days salary with reference to the number of
 completed year of service and last drawn salary. The Company has taken
 a Group Gratuity Scheme with Life Insurance Corporation of India
 covering all eligible employees. The liability in respect of Gratuity
 is recognised in accordance with Project Unit Credit Method.
 
 12 Borrowing Cost:
 
 Borrowing costs that are attributable to the acquisition, construction
 or production of a qualifying asset are capitalised as a part of the
 cost of such asset. A qualifying asset is one that necessarily takes a
 substantial period of time to get ready for its intended use. All
 others borrowing cost are charged to revenue. There was no such case
 necessitating capitalisation of borrowing costs during the year.
 
 13 Taxes on Income:
 
 (a) Current tax is determined as the amount of tax payable in respect
 of taxable income for the period.  Deferred tax is recognized, subject
 to consideration of prudence, on timing differences, being the
 difference between taxable incomes and accounting incomes that
 originate in one period and is capable of reversal in one or more
 subsequent periods.
 
 (b) Deferred tax is measured based on the tax rate and the tax laws
 enacted or substantively enacted at the Balance Sheet date. Deferred tax
 assets are recognized only to the extent that there is a reasonable
 certainty that sufficient future taxable income will be available
 against such deferred tax assets can be realised.
 
 14 Impairment of Assets:
 
 An Asset is treated as impaired when carrying cost of assets exceeds
 its recoverable value. An impairment loss is charged for when the asset
 is identified as impaired. The impairment loss recognised in prior
 accounting period is reversed if there has been a change in the
 estimate of recoverable amount.
 
 15 Provision, 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 recognised nor disclosed in the
 financial statements.
 
 16 Inter-divisional Transfers:
 
 Inter-divisional transfers of goods for internal use as captive
 consumption are shown as contra items in the Profit & Loss Account to
 reflect the true economic value of the production inter-se the
 divisions. This accounting treatment has no impact on the profit of the
 Company.