a) BASIS OF ACCOUNTING
 
 The financial statements are prepared under the historical cost
 convention and are in accordance with applicable mandatory Accounting
 Standards notified by the Companies (Accounting Standards) Rules, 2006
 and the relevant provisions of the Companies Act, 1956.
 
 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 amortisation. 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.
 
 c) DEPRECIATION & AMORTIZATION
 
 i) On tangible fixed assets: Cost of Leasehold land is amortised 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 recognised 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 recognise the decline, other than temporary, in the values of
 these investments. Current Investments are carried at lower of cost and
 fair value.  Income from investments is accounted for on accrual basis
 except that no income is recognised in respect of doubtful investments.
 
 f) INVENTORIES
 
 Inventories are valued at lower of cost and net realisable 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 recognises 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 sales includes excise duty but
 are exclusive of sales tax. Revenue from Carbon Credits is recognised
 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 recognised on the basis of actual units generated and
 transmitted to the purchaser and is net of unscheduled interchange
 charges paid. Interest income is recognised on accrual basis, except in
 cases where interest is doubtful of recovery.
 
 h) EMPLOYEE BENEFITS
 
 Short-term employee benefits are recognized as an expense at the
 undiscounted amount in the Profit and Loss Account 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 Profit and Loss Account.  Retirement
 benefits in the form of Gratuity and Leave Encashment are recognized as
 an expense in the Profit and Loss Account 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 Profit and Loss Account.
 
 i) BORROWING COSTS
 
 Borrowing costs that are directly attributable to the acquisition,
 construction or production of a qualifying asset are capitalised as
 part of cost of such asset. Other borrowing costs are charged to Profit
 and Loss Account.
 
 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 recognised 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) CENVAT and VAT CREDIT
 
 Excise duty, Service tax and VAT on inputs and services are carried
 forward in current assets and is included in Balance in Excise,
 Service Tax and VAT Accounts till it is utilized. Consequently such
 inputs and services are accounted for exclusive of excise duty, service
 tax and VAT credits.  
 
 l) FOREIGN CURRENCY TRANSACTIONS
 
 Transactions in foreign currency are recorded in rupees by applying the
 exchange rate at the date of the transaction.  Gains or Losses on
 settlement of the transactions are recognised in the Profit and Loss
 Account. At the Balance Sheet date, monetary assets and liabilities in
 foreign currency are restated by applying the closing rate, and the
 difference arising out of such conversion is recognised in the Profit
 and Loss Account. In respect of forward exchange contracts entered, the
 difference between the forward rate and the exchange rate at the date
 of the transaction is recognised as income or expense over the life of
 such contract. Currency and interest rate swaps are accounted in
 accordance with their contact. 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 Profit and Loss account. Net gains on the
 marked to market basis are not recognised.  
 
 m) PROVISIONS
 
 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.  Figures of the previous year have been
 regrouped or rearranged, wherever necessary, to make them comparable
 with those of the current year.
 
 The company has been advised that the compensation received for phased
 reduction and cessation of CFC production and dismantling of plant,
 unless otherwise used, as stipulated, is a capital receipt and hence,
 the said amount is credited to capital reserve.
 
 Foreign Currency Term Loan from ICICI Bank Limited is secured by
 equitable mortgage of land and hypothecation of all movable property of
 the Company for wind mills situated at Gude Panchgani, District Sangli,
 Maharashtra. Further, the lender also has a charge/lien over the escrow
 account, where the collections of sales of electricity are to be
 deposited.  Foreign Currency Term Loan from BNP Paribas Limited is
 secured by hypothecation of all movable property of the Company’s 18 MW
 coal based captive power plant situated at Plot No.12-A, GIDC Estate,
 Village – Dahej, Taluka Vagra, District Bharuch, Gujarat.
 
 Foreign Currency Term Loan from Citibank NA is secured by first pari
 passu charge over Company’s fixed assets situated at Survey No.16/3, 26
 and 27, Village Ranjitnagar, Taluka Goghamba, District Panchmahals,
 Gujarat (Security is yet to be created).
 
 Foreign Currency Term Loan from DBS Bank Limited is secured by first
 pari passu charge over moveable and immoveable fixed assets of the
 Company at Plot No.12-A, GIDC Estate, Village – Dahej, Taluka Vagra,
 District Bharuch (Security is yet to be created).
 
 Rupee Term Loan from United Bank of India, UCO Bank and Oriental Bank
 of Commerce are secured by joint equitable mortgage of lease hold land
 and building and hypothecation of all movable fixed assets of the
 Company situated at Plot No.12-A, GIDC Estate, Village – Dahej, Taluka
 Vagra, District Bharuch, Gujarat, excluding assets related to Company’s
 18 MW coal based captive power plant situated at Plot No.12-A, GIDC
 Estate, Village – Dahej, Taluka Vagra, District Bharuch, on first pari
 passu basis and by way of second pari passu charge over fixed assets
 situated at Survey No.16/3, 26 and 27, Village Ranjitnagar, Taluka
 Goghamba, District Panchmahals, Gujarat.
 
 Working Capital Loan from Canara Bank is secured by equitable mortgage
 of land and hypothecation of stocks and book debts of the Company’s
 refrigerant plant located at Ranjitnagar, Survey No 16/3, 26 and 27,
 Village Ranjitnagar, Taluka Ghoghamba, District Panchmahals, Gujarat.
 
 Working Capital Loans from HDFC Bank Limited and Royal Bank of Scotland
 are secured by first pari passu charge over stock and book debts of the
 Company’s Dahej Plant situated at Plot No.12-A, GIDC Estate, Village –
 Dahej, Taluka Vagra, District Bharuch, Gujarat.