1.1 BASIS OFACCOUNTINGAND PREPARATION OF FINANCIAL STATEMENTS
 
 The financial statements are prepared under the historical cost
 convention, in accordance with applicable accounting standards notified
 by the companies (Accounting Standards) Rules, 2006 and the relevant
 provisions of the Companies Act,1956.
 
 1.2 FIXED ASSETS
 
 Fixed Assets are stated at cost less accumulated depreciation. Cost is
 inclusive of freight, duties, levies and any directly attributable cost
 of bringing the assets to their working condition for intended use.
 
 1.3 DEPRECIATION/AMORTISATION
 
 Depreciation is provided on Straight Line Method at the rates and in
 the manner specified in Schedule XIV of the Companies Act, 1956, except
 for Wind Mills, which is provided on Written Down Value Method.
 Leasehold land is amortized over the period of lease.
 
 1.4 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
 other than temporary in the opinion of the management. Current
 investments are valued at lower of cost and fair value.
 
 1.5 INVENTORIES
 
 Inventories are valued at lower of cost and net realisable value. The
 cost is determined on the basis of FIFO Method. For the purpose of
 finished goods and work-in-process, cost comprises of material cost
 plus appropriate share of production overheads and excise duty,
 wherever applicable.
 
 1.6 EMPLOYEE BENEFITS
 
 Defined Contribution Plan:
 
 a) In accordance with the provisions of Employees Provident Funds and
 Miscellaneous Provisions Act,1952, eligible employees of the Company
 are entitled to receive benefits with respect to provident fund, a
 defined contribution plan in which both the Company and the employee
 contribute monthly at a determined rate (currently 12% of employee''s
 basic salary). Company''s contribution to PF is charged to Profit & Loss
 Account.
 
 b) The Company has taken a Policy with Life Insurance Corporation of
 India for the payment of gratuity, a defined contribution plan and
 premium paid on the policy has been charged to Profit & Loss Account in
 the year of payment.
 
 Defined Benefit Plan:
 
 a) Gratuity to the Managing Director and Joint Managing Director, who
 are not covered under the policy with LIC has been provided for on the
 basis of Actuarial valuation, which is based on their contractual
 terms.
 
 b) Liability for Managing Director and Joint Managing Director leave
 encashment benefits is accounted on cash basis.
 
 1.7 FOREIGN CURRENCYTRANSACTIONS
 
 Transactions in foreign currency are recorded at the exchange rate
 prevailing on the date of the transaction. In case of liabilities
 incurred for the acquisition of fixed assets, the loss or gain on
 conversion (at the rate prevailing at the year end) is recognized as
 income or expenses in the profit & loss account. Current Assets and
 Liabilities (Other than those relating to fixed assets) are restated at
 the rate prevailing at the year end. The difference between the year
 end rate and the exchange rate at the date of the transaction is
 recognized as income or expense in the profit and loss account.
 
 1.8 REVENUE RECOGNITION
 
 Sale of goods is recognized at the point of despatch to the customer.
 Income from Wind Power is recognized at the point of generation. Sales
 includes excise duty but excludes Sales Tax and discounts.  Other
 Income are accounted on accrual basis.
 
 1.9 TAXATION
 
 Current tax is determined as the amount of tax payable in respect of
 taxable income for the year.  Deferred tax is recognised, subject to
 the consideration of prudence in respect of deferred tax assets, on
 timing difference, being the differences between taxable income and
 accounting income that originate in one period and are capable of
 reversal in one or more subsequent periods except for carried forward
 losses, which are recognized only if there is virtual certainty of
 their realization.
 
 1.10 IMPAIRMENT
 
 An asset is treated as Impaired when the carrying cost of assets
 exceeds its recoverable value. An impairment loss is charged to the
 Profit & Loss Account in the year in which an asset is identified as
 impaired.  The impairment loss recognised in prior accounting periods
 is reversed if there has been a change in the estimate of recoverable
 amount.
 
 1.11 PROVISIONS AND CONTINGENT LIABILITIES
 
 A provision is recognized when there is a present obligation as a
 result of past events for which it is probable that an outflow of
 resources will be required to settle the obligation and in respect of
 which a reliable estimate can be made. These are reviewed at each
 balance sheet date and adjusted to reflect the current best estimates.
 Contingent liabilities are disclosed after an evaluation of the facts and
 legal aspects of the matters involved.