i.  Basis of Consolidation and Preparation
 
 The consolidated financial statements are prepared in accordance with
 Accounting Standard 21 on Consolidated Financial Statements as
 notified under the Companies (Accounting Standards) Rules, 2006, as
 amended. Reference in these notes to Company, Holding Company,
 Companies or Group shall mean to include Indiabulls Power Limited.
 (IPL) or any of its subsidiaries, unless otherwise stated.
 
 ii.  Principles of Consolidation
 
 The Consolidated Financial Statements comprise of the Financial
 Statements of Indiabulls Power Limited. (Parent Company) and its
 subsidiaries (Subsidiary Companies). The Consolidated Financial
 Statements are prepared according to uniform accounting policies, in
 accordance with accounting principles generally accepted in India.
 
 The Consolidated Financial Statements are combined on a line-by-line
 basis by adding together the book values of like items of assets,
 liabilities, income and expenses, after fully eliminating intra-group
 balances and intra-group transactions resulting in unrealised profits
 or losses in accordance with Accounting Standard 21 (Consolidated
 Financial Statements as notified under the Companies (Accounting
 Standards) Rules, 2006, as amended.
 
 iii.  Goodwill / Capital Reserve on Consolidation
 
 Goodwill / Capital Reserve represents the difference between the
 Company''s share in the net worth of subsidiaries, and the cost of
 acquisition at each point of time of making the investment in the
 subsidiaries. For this purpose, the Company''s share of net worth is
 determined on the basis of the latest financial statements prior to the
 acquisition after making necessary adjustments for material events
 between the date of such financial statements and the date of
 respective acquisition. Capital Reserve on consolidation is adjusted
 against Goodwill. The Goodwill on Consolidation recorded in these
 consolidated financial statements has not been amortised, but instead
 evaluated for impairment whenever events or changes in circumstances
 indicate that its carrying amount may be impaired.
 
 vi.  Basis of Accounting
 
 The financial statements are prepared under the historical cost
 convention on an accrual basis, in accordance with the generally
 accepted accounting principles in India (GAAP) and in compliance with
 the applicable Accounting Standards as notified under the Companies
 (Accounting Standards) Rules, 2006, as amended.
 
 vii.  Use of Estimates
 
 The presentation of financial statements in conformity with GAAP
 requires estimates and assumptions to be made that affect the reported
 amount of assets and liabilities and disclosure of contingent
 liabilities on the date of the financial statements and the reported
 amount of revenues and expenses during the reporting year. Differences
 between the actual results and estimates are recognised in the
 reporting year in which the results are known / materialized.
 
 viii. Revenue Recognition
 
 Income from Power Consultancy / Advisory Services is recognised on an
 accrual basis. Interest income from deposits and others is recognised
 on an accrual basis. Dividend income is recognised when the right to
 receive the dividend is unconditionally established.  Profit/loss on
 sale of investments is recognised on the date of the transaction of
 sale and is computed with reference to the original cost of the
 investment sold.
 
 ix.  Fixed Assets
 
 Tangible fixed assets are stated at cost, net of tax / duty credits
 availed, less accumulated depreciation and impairment losses, if any.
 Cost includes original cost of acquisition or installation, including
 incidental expenses related to such acquisition.
 
 Intangible assets are stated at cost, net of tax / duty credits availed
 less accumulated amortisation and impairment losses, if any. Cost
 includes original cost of acquisition and construction, including
 incidental expenses related to such acquisition or construction.
 
 x.  Depreciation/Amortization
 
 Depreciation on fixed assets is provided on the Straight-Line Method at
 the rates and in the manner prescribed under Schedule XIV of the
 Companies Act, 1956.
 
 Depreciation on additions / deletions to fixed assets is provided on a
 pro-rata basis from / upto the date the asset is put to use/discarded.
 Individual assets costing less than Rs. 5,000 are fully depreciated in
 the year of purchase. The acquisition value of Leasehold Land is
 amortized over the period of the Lease.
 
 The right-to-use leased asset (land) is amortised on a Straight-Line
 basis over the lease term.
 
 Intangible assets consisting of Software are amortized on a Straight
 Line basis over a period of four years from the date when the assets
 are available for use.
 
 xi.  Expenditure During Construction Pending Capitalisation
 
 Any expenditure directly/indirectly related and attributable to the
 construction of power projects and incidental to setting up power
 project facilities, incurred prior to the date of commencement of
 commercial operation of the power project, are accumulated under
 Expenditure During Construction Pending Capitalisation, to be
 capitalised on completion of construction of the respective power
 projects and on commencement of commercial operations.
 
 xii.  Impairment of Assets
 
 The Company assesses at each Balance Sheet date whether there is any
 indication that an asset may be impaired. If any such indication
 exists, the Company estimates the recoverable amount of the asset. The
 recoverable amount is the higher of an asset''s net selling price and
 its value in use. If such recoverable amount of the asset or the
 recoverable amount of the cash generating unit to which the asset
 belongs is less than its carrying amount, the carrying amount is
 reduced to its recoverable amount. The reduction is treated as an
 impairment loss and is recognised in the Profit and Loss Account. If at
 the Balance Sheet date there is an indication that a previously
 assessed impairment loss no longer exists, the recoverable amount is
 reassessed and the asset is reflected at the recoverable amount.
 
 xiii. Borrowing Costs
 
 Borrowing costs that are attributable to the acquisition, construction
 or production of qualifying assets are capitalised as a part of the
 cost of such assets.  Any income earned on the temporary deployment /
 investment of those borrowings is deducted from the borrowing costs so
 incurred. A qualifying asset is one that necessarily takes substantial
 period of time to get ready for its intended use. All other borrowing
 costs are charged to revenue.
 
 xiv.  Investments
 
 Investments are classified as long term and current.  Long term
 investments are carried at cost less provision, if any, for diminution
 other than temporary in the value of such investment. Current
 investments are valued at lower of cost and fair value.
 
 xv.  Foreign Currency Transactions
 
 Transactions denominated in foreign currencies are recorded at the
 exchange rate prevailing at the time of occurrence of the transaction.
 Monetary items denominated in foreign currency at the year end are
 translated at year end rates. In respect of monetary items which are
 covered by forward exchange contracts, premium / discount arising on
 inception of the contract is amortized over the life of the contract.
 Any exchange differences arising on settlement / translation are dealt
 with in the Profit and Loss account.
 
 Exchange differences arising on a monetary item that in substance forms
 part of the company''s net investment in a non-integral foreign
 operation is accumulated in the Foreign Currency Translation Reserve
 until disposal of the net investment, when it is recognised as an
 income or expense in the Profit and Loss account.
 
 Non-Monetary items carried in terms of historical cost denominated in
 foreign currency are reported using the exchange rate at the date of
 the transaction.
 
 xvi.  Employee Benefits
 
 The Company''s contribution to Provident Fund is charged to the Profit
 and Loss account/Expenditure During Construction Pending
 Capitalisation, as applicable. The Company has unfunded defined benefit
 plans namely leave encashment (long term compensated absences) and
 gratuity for eligible employees, the liabilities for which is
 determined on the basis of actuarial valuations, conducted by an
 independent actuary at the end of the financial year using the
 Projected Unit Credit Method in accordance with Accounting Standard 15
 (Revised 2005) - Employee Benefits, notified under the Companies
 (Accounting Standards) Rules, 2006, as amended.
 
 Superannuation (Pension & Medical coverage) payable to a Director on
 retirement is actuarially valued at the end of the year using the
 Projected Unit Credit Method.  Actuarial gains and losses comprise
 experience adjustments and the effects of change in actuarial
 assumptions and are recognised in the Profit and Loss account as income
 or expenses / Expenditure During Construction Pending Capitalisation,
 as applicable.
 
 xvii. Taxes on Income
 
 Current tax is determined as the tax payable in respect of taxable
 income for the reporting year and is computed in accordance with
 relevant tax regulations.
 
 Deferred tax resulting from timing differences between book and tax
 profits is accounted for at the current rate of tax / substantively
 enacted tax rates as on the Balance Sheet date, to the extent that the
 timing differences are expected to crystallize.
 
 Deferred Tax Assets are recognised where realisation is reasonably
 certain whereas in case of carried forward losses or unabsorbed
 depreciation, deferred tax assets are recognised only if there is a
 virtual certainty of realisation supported by convincing evidence.
 Deferred Tax Assets are reviewed for the appropriateness of their
 respective carrying values at each Balance Sheet date.
 
 xviii. Leases
 
 In case of assets taken on operating lease, the lease rentals are
 charged to the Profit and Loss account / Expenditure During
 Construction Pending Capitalisation, as applicable, in accordance with
 Accounting Standard 19 - Leases, as notified by the Companies
 (Accounting Standards) Rules, 2006, as amended.
 
 xix.  Share Issue Expenses
 
 Share issue expenses are adjusted against securities premium account to
 the extent of balance available and thereafter, the balance portion is
 charged off to the Profit and Loss account, as incurred.
 
 xx.  Deferred Employee Stock Compensation Costs
 
 Deferred Employee Stock Compensation Costs for Stock Options are
 recognised in accordance with the Guidance Note on Accounting for
 Employee Share Based Payments issued by the Institute of Chartered
 Accountants of India, which establishes financial accounting and
 reporting principles for employee share based payment plans. The
 Company has elected to apply the Intrinsic Value method of accounting.
 Accordingly, employee stock compensation costs are measured as the
 difference between the intrinsic value of the company''s shares of stock
 options at the grant date and the exercise price to be paid by the
 option holders. The compensation expense is amortised over the vesting
 period of the options. The fair value of options for disclosure
 purpose, is measured on the basis of an independent valuation performed
 by an independent firm of Chartered Accountants in respect of stock
 options granted.
 
 xxi. Provisions, Contingent Liabilities and Contingent Assets
 
 Provisions are recognised only when there is a present obligation as a
 result of past events and when a reliable estimate of the amount of the
 obligation can be made. Contingent liability is disclosed for (1)
 Possible obligations which will be confirmed only by future events not
 wholly within the control of the Company or (2) Present obligations
 arising from past events where it is not probable that an outflow of
 resources will be required to settle the obligation or a reliable
 estimate of the amount of the obligation cannot be made. Contingent
 Assets are not recognised in the financial statements since this may
 result in the recognition of income that may never be realised.