a.  Basis of preparation
 
 The financial statements have been prepared to comply in all material
 respects with the accounting standard notified by Companies Accounting
 Standards Rules, 2006 (as amended) and the relevant provisions of the
 Companies Act, 1956. The financial statements have been prepared under
 the historical cost convention on an accrual basis. The accounting
 policies have been consistently applied by the Company and are
 consistent with those used in the previous year.
 
 b.  Use of estimates
 
 The preparation of financial statements are in conformity with
 generally accepted accounting principles in India requires Management
 to make estimates and assumptions that affect the reported amounts of
 assets and liabilities and disclosure of contingent liabilities at the
 date of the financial statements and the results of operations during
 the reporting year end. Although these estimates are based upon
 Managements best knowledge of current events and actions, actual
 results could differ from these estimates.
 
 c.  Fixed assets and depreciation
 
 Fixed assets are stated at cost, less accumulated depreciation and
 impairment losses, if any. Cost comprises the purchase price and any
 attributable cost of bringing the asset to its working condition for
 its intended use.
 
 Depreciation is provided using Straight Line Method at the rates
 estimated by the Management which coincides with the rates prescribed
 under Schedule XIV of the Companies Act, 1956.
 
 Fixed assets individually costing Rs. 5 or less are fully depreciated
 in the year of purchase.
 
 d.  Impairment
 
 The carrying amounts of assets are reviewed at each balance sheet date
 to see if there is any indication of impairment based on
 internal/external factors. An impairment loss is recognized wherever
 the carrying amount of an asset exceeds its recoverable amount. The
 recoverable amount is the greater of the assets net selling price and
 value in use. In assessing value in use, the estimated future cash
 flows are discounted to their present value using a pre-tax discount
 rate that reflects current market assessments of the time value of
 money and risks specific to the asset.
 
 e.  Investments
 
 Investments that are readily realizable and intended to be held for not
 more than a year are classified as current investments. All other
 investments are classified as long-term investments. Current
 investments are carried at lower of cost and fair value determined on
 an individual investment basis. Long-term investments are carried at
 cost. However, provision for diminution in value is made to recognize a
 decline other than temporary in the value of the investments.
 
 f.  Revenue recognition
 
 Revenue is recognized to the extent that it is probable that the
 economic benefits will flow to the Company and the revenue can be
 reliably measured.
 
 i) Rendering of operating and maintenance services
 
 Revenues represent amounts billed or accrued for services rendered and
 for expenses incurred in relation to such services, in accordance with
 the Operation and Maintenance agreement with its customers.
 
 Per the operations and maintenance agreements, the Companys income
 comprises of (a) Operating fees (b) Incentive fees and (c)
 Reimbursement of actual expenses. Operating fees are receivable based
 on certain defined levels of Actual Annual Availability (AAA) of
 plant or Plant load factor (PLF). The Company is also eligible to
 receive incentive fees, if the AAA and/ or if the actual generation of
 power are higher than the defined levels.
 
 The Company recognizes base fees as they become billable, and accrues
 for incentive fees, based on the qualifying operating levels achieved
 as at the tariff year end. Unbilled revenue represents services
 performed, but not billed.
 
 ii) Manpower and consultancy services
 
 Revenue for manpower services are recognised as and when services are
 rendered on time and material basis.
 
 iii) Dividends
 
 Revenue is recognised when the shareholders/unit holders right to
 receive payment is established by the balance sheet date. Dividend from
 subsidiaries is recognised even if same are declared after the balance
 sheet date but pertains to period on or before the date of balance
 sheet as per the requirement of schedule VI of the Companies Act, 1956.
 
 iv) Interest
 
 Revenue is recognized on a time proportion basis taking into account
 the amount outstanding and the rate applicable.
 
 v) Guarantee commission
 
 Revenue is recognized on a time proportion basis taking into account
 the guarantee amount and the commission rate applicable.
 
 g.  Foreign currency transactions 
 
 i) Initial recognition
 
 Foreign currency transactions are recorded in the reporting currency,
 by applying the exchange rate between the reporting currency and the
 foreign currency at the date of the transaction.
 
 ii) Conversion
 
 Foreign currency monetary items are reported using the closing rate.
 Non-monetary items which are carried in terms of historical cost
 denominated in a foreign currency are reported using the exchange rate
 at the date of the transaction; and non-monetary items which are
 carried at fair value or other similar valuation denominated in a
 foreign currency are reported using the exchange rates that existed
 when the values were determined.
 
 iii) Exchange differences
 
 Exchange differences arising on the settlement of monetary items or on
 reporting Companys monetary items at rates different from those at
 which they were initially recorded during the year, or reported in
 previous financial statements, are recognized as income or as expenses
 in the year in which they arise.
 
 h.  Retirement and other employee benefits
 
 i) Retirement benefit in the form of Provident Fund is a defined
 contribution scheme and the contributions are charged to the Profit and
 Loss Account of the year when the contributions to the respective funds
 are due. There are no other obligations other than the contribution
 payable to the provident fund.
 
 ii) Gratuity liability is defined benefit obligation and is provided
 for on the basis of an actuarial valuation on projected unit credit
 method made at the end of each financial year.
 
 iii) Short term compensated absences are provided for based on
 estimates. Long term compensated absences are provided for based on
 actuarial valuation. The actuarial valuation is done as per projected
 unit credit method.
 
 iv) Actuarial gains/losses are immediately taken to profit and loss
 account and are not deferred.
 
 i.  Income taxes
 
 Tax expense comprises of current and deferred tax. Current income tax
 is measured at the amount expected to be paid to the tax authorities in
 accordance with the Indian Income Tax Act, 1961. Deferred income taxes
 reflects the impact of current year timing differences between taxable
 income and accounting income for the year and reversal of timing
 differences of earlier years.
 
 Deferred tax is measured based on the tax rates 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 reasonable
 certainty that sufficient future taxable income will be available
 against which such deferred tax assets can be realized.
 
 The carrying amount of deferred tax assets are reviewed at each balance
 sheet date. The Company writes-down the carrying amount of a deferred
 tax asset to the extent that it is no longer reasonably certain or
 virtually certain, as the case may be, that sufficient future taxable
 income will be available against which deferred tax asset can be
 realized. Any such write-down is reversed to the extent that it becomes
 reasonably certain or virtually certain, as the case may be, that
 sufficient future taxable income will be available.
 
 MAT credit is recognised as an asset only when and to the extent there
 is convincing evidence that the company will pay normal
 
 income tax during the specified period. In the year in which the
 Minimum Alternative tax (MAT) credit becomes eligible to be recognized
 as an asset in accordance with the recommendations contained in
 guidance Note issued by the Institute of Chartered Accountants of
 India, the said asset is created by way of a credit to the profit and
 loss account and shown as MAT Credit Entitlement. The Company reviews
 the same at each balance sheet date and writes down the carrying amount
 of MAT Credit Entitlement to the extent there is no longer convincing
 evidence to the effect that Company will pay normal income tax during
 the specified period.
 
 j.  Earnings per share
 
 Basic earnings per share are calculated by dividing the net profit or
 loss for the year attributable to equity shareholders by the weighted
 average number of equity shares outstanding during the year. The
 weighted average number of equity shares outstanding during the year is
 adjusted for events of bonus issue; bonus element in a rights issue to
 existing shareholders; share split; and reverse share split
 (consolidation of shares).
 
 For the purpose of calculating diluted earnings per share, the net
 profit or loss for the period attributable to equity shareholders and
 the weighted average number of shares outstanding during the period are
 adjusted for the effects of all dilutive potential equity shares.
 
 k.  Leases
 
 Leases where the lessor effectively retains substantially all the risks
 and benefits of ownership over the leased term, are classified as
 operating leases. Operating lease payments are recognized as an expense
 in the Profit and Loss account on a straight-line basis over the lease
 term.
 
 l.  Provisions
 
 A provision is recognized when the enterprise 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, in respect of
 which a reliable estimate can be made. Provisions are not discounted to
 their present values and are determined based on best estimate required
 to settle the obligation at the balance sheet date. These are reviewed
 at each balance sheet date and adjusted to reflect the current best
 estimates.
 
 m. Borrowing costs
 
 Borrowing costs directly attributable to the acquisition, construction
 or production of an asset that necessarily takes a substantial period
 of time to get ready for its intended use or sale are capitalized as
 part of the cost of the respective asset. All other borrowing costs are
 expensed in the period they occur. Borrowing costs consist of interest
 and other costs that an entity incurs in connection with the borrowing
 of funds.
 
 n.  Cash and Cash equivalents
 
 Cash and cash equivalents in the balance sheet comprise cash at bank
 and in hand and short-term investments with an original maturity of
 three months or less.