a) 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.
 
 (ii) 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.
 
 (iii) 1000 MW Karcham Wangtoo HEP : Revenue from sale of electrical
 energy is accounted for on the basis of billing to various buyers as
 per short term/medium term Power Purchase Agreements executed with them
 and sale through Power Exchange(s).
 
 (iv) Revenue from sale of Verified Emission Reductions (VERs) is
 accounted for on receipt basis.
 
 (v) Insurance claims are accounted for on receipt basis or as
 acknowledged by the Insurance Company.
 
 (vi) Other Income and cost/expenditure are accounted for on accrual
 basis as they are earned or incurred.
 
 (vii) Advance against depreciation claimed/to be claimed as part of
 tariff in terms of PPA during the currency of loans to facilitate
 repayment installments is treated as ''Deferred Revenue''. Such Deferred
 Revenue shall be included in Sales in subsequent years.
 
 b) 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,
 financing cost and foreign exchange loss/ gain, up to the date of
 commissioning.
 
 c) 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.
 
 (c) 1000 MW Karcham Wangtoo HEP : Depreciation has been provided @
 2.57% p.a. on straight line method on Hydro Electric Works w.e.f.
 01.04.2011 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. 45/6/2011-CL-III dated
 09.08.2011.
 
 (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 Rs. 5,000 or less is provided at 100%
 irrespective of the actual period of use.
 
 d) Expenditure during Construction Period
 
 Expenditure incurred on projects/assets during construction/
 implementation is capitalized and apportioned to projects/ assets on
 commissioning.
 
 e) 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 and revised notification dated
 29th December, 2011 by Ministry of Corporate Affairs, Govt.  of India.
 
 f) 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 the Company has a right to
 receive the same on or before the Balance Sheet date.
 
 g) Inventories
 
 (a) Inventories of stores & spares are valued on the basis of weighted
 average cost method.
 
 (b) Material-in-transit is valued at cost.
 
 h) Retirement & Other Employee 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.
 
 i) 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.
 
 j) 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.
 
 k) 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.
 
 l) Earning 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.
 
 m) 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.
 
 n) Intangible Assets
 
 Intangible assets are stated at cost of acquisition less accumulated
 amortization on straight line basis from the date the assets are put
 for commercial use.
 
 o) Premium on Redemption of Debentures
 
 Premium paid/payable on Redemption of Debentures are adjusted against
 Securities premium reserve/Surplus.
 
 p) 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.