a) Basis of Preparation of Financial Statements
 
 (i) The accounts are prepared on the historical cost basis and on the
 principles of a going concern.
 
 (ii) Accounting policies not specifically referred to otherwise are
 being consistently followed and are in accordance with generally
 accepted accounting principles.
 
 b) Revenue Recognition
 
 (i) 300 MW BASPA-II HEP : Revenue from sale of electrical energy is
 accounted for on the basis of billing to Himachal Pradesh State
 Electricity Board (HPSEB) as per Tariff approved by Himachal Pradesh
 Electricity Regulatory Commission (HPERC) in accordance with the
 provisions of Power Purchase Agreement dated 4th June 1997, Amendment
 No.1 dated 07.01.1998 executed between the Company and HPSEB.  400 MW
 Vishnuprayag HEP : Revenue from sale of electrical energy is accounted
 for on the basis of billing to Uttar Pradesh Power Corporation Limited
 (UPPCL) as per Tariff approved by Uttar Pradesh Electricity Regulatory
 Commission (UPERC) in accordance with the provisions of Power Purchase
 Agreement dated 16.01.2007, executed between the Company and UPPCL.
 
 (ii) Revenue from sale of Verified Emission Reductions (VERs) is
 accounted for on receipt basis.
 
 (iii) Insurance claims are accounted for on receipt basis or as
 acknowledged by the Insurance Company.
 
 (iv) Other Income and cost/expenditure are accounted for on accrual
 basis as they are earned or incurred.
 
 (v) Advance against depreciation claimed/to be claimed as part of
 tariff in terms of PPA during the currency of loans to facilitate
 repayment installment is treated as `Deferred Revenue''. Such Deferred
 Revenue shall be included in Sales in subsequent years.
 
 c) Fixed Assets
 
 Fixed Assets are stated at Cost of procurement or construction
 inclusive of freight, erection & commissioning charges, duties and
 taxes, expenditure during construction period, Interest on borrowings
 and financing cost up to the date of commissioning.
 
 d) Depreciation
 
 (i) Premium on Leasehold Land is amortised over the period of lease.
 
 (ii) (a) 300 MW BASPA-II HEP : Depreciation has been provided @ 2.71%
 p.a. on straight line method on Hydro Electric Works w.e.f. 24.5.2003
 as approved by The Ministry of Corporate Affairs, Government of India
 in exercise of the powers conferred under Section 205 (2) (c ) of the
 Companies Act 1956 vide their letter no.  45/1/2006-CL-III dated
 26.6.2006.
 
 (b) 400 MW Vishnuprayag HEP : Depreciation has been provided @ 2.71%
 p.a. on straight line method on Hydro Electric Works w.e.f. 17.06.2006
 as approved by The Ministry of Corporate Affairs, Government of India
 in exercise of the powers conferred under Section 205 (2) (c ) of the
 Companies Act 1956 vide their letter no.  45/7/2006-CL-III dated
 03.05.2007.
 
 (iii) Fixed Assets other than Hydro Electric Works are depreciated as
 per straight-line method at the rates specified in Schedule XIV to the
 Companies Act, 1956.
 
 (iv) Depreciation on Assets of the Rs. 5,000 or less is provided at
 100% irrespective of the actual period of use.
 
 e) Expenditure during Construction Period
 
 Expenditure incurred on projects/assets during construction/
 implementation is capitalized and apportioned to projects/assets on
 commissioning.
 
 f) Foreign Currency Transactions
 
 (i) Transactions in Foreign Currency are recorded in the Books of
 Accounts in Indian Currency at the rate of exchange prevailing on the
 date of transaction.
 
 (ii) All loans and deferred credits repayable in Foreign Currency and
 outstanding at the close of the year are expressed in Indian Currency
 at the rate of exchange prevailing on the date of the Balance Sheet.
 
 (iii) Foreign Exchange gain/loss is being adjusted against the cost of
 assets in terms of the amendment to Accounting Standard (AS–11) issued
 vide Notification dated 31st March, 2009 by Ministry of Corporate
 Affairs, Govt. of India.
 
 g) Investments
 
 Investments are stated at Cost and where there is permanent diminution
 in the value of Investments a provision is made wherever applicable.
 Dividend will be accounted for as and when received.
 
 h) Inventories
 
 (a) Inventories of Stores & Spares are valued on the basis of weighted
 average cost method.
 
 (b) Material-in-transit is valued at cost.
 
 i) Employees Benefits
 
 Employees Benefits are provided in the books as per AS-15 (revised) in
 the following manner:
 
 (a) Provident Fund and Pension contribution as a percentage of
 salary/wages as per provisions of Employees Provident Funds and
 Miscellaneous Provisions Act, 1952.
 
 (b) Gratuity and Leave Encashment is defined benefit obligation.  The
 liability is provided for on the basis on Projected Unit Credit Method
 adopted in the actuarial valuation made at the end of each financial
 year.
 
 j) Borrowing Costs
 
 Borrowing costs attributable to the procurement/construction of fixed
 assets are capitalised as part of the cost of the respective assets up
 to the date of commissioning. Other borrowing costs are recognized as
 expense during the year in which they are incurred.
 
 k) Taxes on Income
 
 Provision for current tax is being made after taking into consideration
 benefits admissible to the Company under the provisions of the Income
 Tax Act, 1961.
 
 Deferred tax liability, if any, is computed as per Accounting Standard
 (AS-22). Deferred Tax Asset and Deferred Tax Liability are computed by
 applying rates and tax laws that have been enacted up to the Balance
 Sheet date.
 
 l) Provisions, Contingent Liabilities and Contingent Assets
 
 Provisions involving substantial degree of estimation in measurement
 are recognized when there is a present obligation as a result of past
 events and it is probable that there will be an outflow of resources.
 Contingent Liabilities are not recognized but are disclosed in the
 notes (as per AS-29). Contingent Assets are neither recognized nor
 disclosed in the financial statements.
 
 m) Earnings per share
 
 Basic earning per equity share is being computed by dividing net profit
 after tax by the weighted average number of equity shares outstanding
 during the year. Diluted earnings per equity share is computed by
 dividing adjusted net profit after tax by the aggregate of weighted
 average number of equity shares and dilutive potential equity shares
 outstanding during the year.
 
 n) Impairment of Assets
 
 At each balance sheet date, the management reviews the carrying amounts
 of its assets included in each cash generating unit to determine
 whether there is any indication that those assets were impaired. If any
 such indication exists, the recoverable amount of the asset is
 estimated in order to determine the extent of impairment loss.
 Recoverable amount is the higher of an asset''s net selling price and
 value in use. In assessing value in use, the estimated future cash
 flows expected from the continuing use of the asset and from its
 disposal are discounted to their present value using a pre-tax discount
 rate that reflects the current market assessments of time value of
 money and the risks specific to the asset.
 
 Reversal of impairment loss is recognised immediately as income in the
 profit and loss account.
 
 o) Intangible Assets
 
 (i) Intangible assets are stated at cost of acquisition less
 accumulated amortisation on straight line basis from the date the
 assets are put for commercial use.
 
 (ii) As provided in the Scheme of Amalgamation approved by Hon''ble High
 Court of Himachal Pradesh at Shimla, ''Amalgamation Reserve'' being
 created on merger of Bina Power Supply Company Limited and Jaypee
 Karcham Hydro Corporation Limited with the Company Jaiprakash Power
 Ventures Limited, will be utilized for writing off the Goodwill arised
 on previous amalgamation and outstanding in the books as on 1st April,
 2010.
 
 p) Premium on Redemption of Debentures
 
 Premium paid/payable on Redemption of Debentures are adjusted against
 Share Premium Account.
 
 (q) Segment Reporting
 
 Revenue, operating results, assets and liabilities have been identified
 to represent separate segments on the basis of their relationship to
 the operating activities of the segment. Assets, Liabilities, Revenue
 and Expenses which are not allocable to separate segment on a
 reasonable basis, are included under Unallocated.