A) CHANGE IN ACCOUNTING POLICY
 
 The Company has opted for accounting of exchange differences arising on
 reporting of long term monetary items under Clause 46a of AS 11 DThe
 Effects of Changes in Foreign Exchange RatesD as per notification no.
 G.S.R. 914(E) dated 29th December, 2011 issued by the Ministry of
 Corporate Affairs, Government of India.
 
 Accordingly, the exchange difference of Rs. 5098.21 Lacs, arising after
 1st April, 2011 on the reporting of long term foreign currency monetary
 items at the rates different from those at which they were initially
 recorded during the period, or reported in previous financial
 statements, in so far they relate to acquisition of depreciable capital
 assets, have been added to the cost of assets and shall be depreciated
 over the balance useful life of the assets.
 
 Up to the last year such exchange difference were charged to statement
 of profit and loss. Due to this change in accounting policy the profit
 before tax for the current year is higher by Rs. 4941.65 (net of
 depreciation charge of Rs. 156.56 Lacs) and cost of fixed assets is
 higher by Rs.3662.73 Lacs (excluding Rs. 1435.48 transfer under slump
 sale).
 
 B) FIXED ASSETS
 
 Freehold land is carried at cost. Leasehold Land is carried at cost,
 comprising of lease premium and expenses on acquisition thereof, as
 reduced by accumulated amortization. Other Fixed Assets are carried at
 cost less accumulated depreciation. Cost comprises of purchase price /
 cost of construction, including any expenses attributable to bring the
 asset to its working condition for its intended use, and is net of
 CENVAT & VAT Credit. Borrowing costs directly attributable to
 acquisition or construction of qualifying fixed assets are capitalized.
 In respect of accounting period commencing on or after 1st April 2011,
 consequent to the amendment of para 46 of AS 11, [The Effects of
 Changes in Foreign Exchange Rates'', notified under the Companies
 (Accounting Standards) Rules, 2006, as stated in para (k)(ii), the cost
 of depreciable capital assets includes foreign exchange differences
 arising on translation of long term foreign currency monetary items.
 
 C) DEPRECIATION & AMORTIZATION
 
 i) On tangible fixed assets: Cost of Leasehold Land is amortized over
 the period of the lease. Depreciation on other Fixed Assets, excluding
 Freehold Land, is provided on straight line method at the rates and in
 the manner specified in Schedule XIV to the Companies Act, 1956. Fixed
 Assets costing Rs 5,000 or less are fully depreciated in the year of
 acquisition. Based on technical opinion Windmill is considered as a
 continuous process plant and depreciation is provided at the rate
 applicable thereto.
 
 ii) On intangible fixed assets: Cost of Technical Know-how is amortized
 equally over a period of ten years and cost of Software is amortized @
 16.21 % p.a. on straight line method.
 
 D) IMPAIRMENT OF ASSETS
 
 Consideration is given at each Balance Sheet date to determine whether
 there is any indication of impairment of the carrying amount of the
 Company''s assets and impairment loss is recognized wherever the
 carrying amount of an asset exceeds its recoverable amount.
 
 E) INVESTMENTS
 
 Long Term Investments are carried at cost. Provision for diminution is
 made to recognize the decline, other than temporary, in the values of
 these investments. Current Investments are carried at lower of cost and
 fair value.
 
 F) INVENTORIES
 
 Inventories are valued at lower of cost and net realizable value. Cost
 is determined using Weighted Average Method and is inclusive of
 appropriate overheads. Closing stock of finished goods and imported
 materials include excise duty and customs duty payable thereon,
 wherever applicable. Obsolete, defective and unserviceable stocks are
 duly provided for.
 
 G) REVENUE RECOGNITION
 
 The Company recognizes sales when the significant risks and rewards of
 ownership of the goods have passed to the customers, which is generally
 at the point of dispatch of goods. Gross revenue from operations
 includes excise duty but are exclusive of sales tax. Revenue from
 Carbon Credits is recognized on delivery thereof or sale of rights
 therein, as the case may be, in terms of the contract with the
 respective buyer and is net of payment towards cancellation of
 contracts. Income on sale of electricity generated is recognized on the
 basis of actual units generated and transmitted to the purchaser and is
 net of unscheduled interchange charges paid. Interest income is
 recognized on a time proportion basis, except in cases where interest
 is doubtful of recovery. Dividend income is recognized when the
 Company''s right to receive the dividend is established by the reporting
 date.
 
 H) EMPLOYEE BENEFITS
 
 Short-term employee benefits are recognized as an expense at the
 undiscounted amount in the Statement of profit and loss in the year in
 which the related service is rendered. Company''s contributions towards
 provident and pension funds viz.  Defined Contribution Plan
 paid/payable during the year are charged to the Statement of profit and
 loss. Retirement benefits in the form of Gratuity and Leave Encashment
 are recognized as an expense in the Statement of profit and loss at the
 present value of the amounts payable determined on the basis of
 actuarial valuation techniques, using the projected unit credit method.
 Actuarial gains and losses are recognized in the Statement of profit
 and loss.
 
 I) BORROWING COSTS
 
 Borrowing costs that are directly attributable to the acquisition,
 construction or production of a qualifying asset are capitalized as
 part of cost of such asset. Other borrowing costs are charged to
 Statement of profit and loss.
 
 J) TAXES ON INCOME
 
 Income tax expense comprises of current tax & deferred tax charge.
 Deferred tax is recognised on timing differences, subject to
 consideration of prudence, being the differences between taxable income
 and accounting income that originates in one period and are capable of
 reversal in one or more subsequent periods. The deferred tax in respect
 of timing differences which reverse during the tax holiday period is
 not recognized to the extent the Company''s gross total income is
 subject to the deduction during the tax holiday period. Minimum
 Alternate Tax (MAT) paid on the book profits, which gives rise to
 future economic benefits in the form of tax credit against future
 income-tax liability, is recognized as an asset in the Balance Sheet if
 there is convincing evidence that the Company will pay normal tax
 within the period prescribed for utilization of such credit.  K)
 
 FOREIGN CURRENCY TRANSACTIONS AND FORWARD CONTRACTS
 
 (i) Transactions in foreign currency are recorded in rupees by applying
 the exchange rate at the date of the transaction.  At the Balance Sheet
 date, monetary assets and liabilities in foreign currency are restated
 by applying the closing rate.  Gains or losses on settlement of the
 transactions and restatement of monetary assets and liabilities are
 recognized in the Statement of Profit and Loss, except as mentioned in
 Para (ii) below. In respect of forward exchange contracts entered, the
 difference between the forward rate and the exchange rate at the date
 of the transaction is recognized as income or expense over the life of
 such contract. Currency and interest rate swaps are accounted in
 accordance with the respective contracts. All other derivatives, which
 are not covered by AS 11, are measured using the mark-to- market
 principles and the net loss after considering the offsetting effect on
 the underlying hedge items is charged to the Statement of Profit and
 Loss. Net gains on the mark-to-market basis are not recognized.
 
 (ii) The Central Government has vide its Notification no. G.S.R. 914(E)
 dated 29th December 2011, amended AS 11 - [The Effects of Changes in
 Foreign Exchange Rates'', notified under the Companies (Accounting
 Standards) Rules, 2006, to the extent it relates to the recognition of
 losses or gains arising on restatement of long-term foreign currency
 monetary items in respect of accounting periods commencing on or after
 1st April 2011.
 
 As stipulated in the Notification, the Company has exercised the option
 to adopt the following policy irrevocably for accounting periods
 commencing from 1st April 2011:
 
 Long term foreign currency monetary items are translated at the
 exchange rate prevailing on the balance sheet date and the net exchange
 gain / loss on such conversion and on settlement of the liability, is
 adjusted to the cost of the asset, where the long-term foreign currency
 monetary items relate to the acquisition of a depreciable capital asset
 (whether purchased within or outside India), and depreciated over the
 balance life of the assets.
 
 L) PROVISIONS AND CONTINGENT LIABILITIES
 
 A provision is recognized when the Company has a present obligation as
 a result of past event and 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. 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 possible obligation or a present obligation in respect of
 which the likelihood of outflow of resource is remote, no provision or
 disclosure is made.
 
 M) USE OF ESTIMATES
 
 The preparation of financial statements in conformity with Indian GAAP
 requires the management to make judgments, estimates and assumptions
 that affect the reported balances of assets and liabilities and
 disclosure of contingent liabilities, at the end of the accounting year
 and reported amounts of revenue and expenses during the year. Although
 these estimates are based on the managements best knowledge of current
 events and actions, uncertainty about these assumptions and estimates
 could result in outcomes requiring a material adjustment to the
 carrying amounts of assets or liabilities in future periods.