a) GENERAL
 
 The Accounts are prepared under the historical cost convention and in
 accordance with generally accepted accounting practices. The financial
 statements are prepared to comply in all respects with the Accounting
 Standards notified under section 211 (3C) of the Companies Act, 1956
 and all the relevant provisions thereof.
 
 b) USE OF ESTIMATES
 
 The preparation of financial statements requires the management of the
 Company to make judgments, estimates and assumptions that affect the
 reported balance of assets and liabilities, revenues and expenses and
 disclosures relating to the contingent liabilities and commitments. The
 management believes that the estimates used in preparation of the
 financial statements are prudent and reasonable. The judgments,
 estimates and underlying assumptions are made with the management''s
 best knowledge of the business environment and are reviewed on an
 ongoing basis. However, future results could differ from these
 estimates.  Any revision to these accounting estimates is recognised
 prospectively in the current and future periods.
 
 C) TANGIBLE FIXED ASSETS
 
 Fixed Assets are stated at cost, net of Cenvata/AT, less accumulated
 depreciation. Cost of acquisition of fixed assets is inclusive of
 directly attributable cost of bringing the assets to their working
 condition for the intended use and interest on borrowings till the date
 of commissioning of the assets.
 
 d) INTANGIBLE ASSETS
 
 Intangible assets are stated at cost of acquisition less accumulated
 amortization. All costs including borrowing costs, if any, on specific
 borrowings utilized for financing the assets till its usage are
 capitalized.
 
 e) BORROWING COSTS
 
 Borrowing Costs, that are directly attributable to the acquisition or
 construction of assets, that necessarily take a substantial period of
 time to get ready for its intended use, are capitalised as part of the
 cost of qualifying asset when it is possible that they will result in
 future economic benefits and the cost can be measured reliably.
 
 f) DEPRECIATION AND AMORTISATION
 
 
 Depreciation is written off in accordance with the provisions of
 Schedule XIV of the Companies Act, 1956 as follows:
 
 i) Under Straight line method in respect of Plant and Machinery of Wind
 Mill division.
 
 ii) Under Written down value method on the remaining assets of the
 company.
 
 iii) The intangible assets, being Computer Software is amortized over a
 period of 5 years on Straight Line Method.
 
 g) INVESTMENTS
 
 Non-current Investments are stated at cost and income thereon is
 accounted for on accrual. Provision towards decline in the value of
 long term investments is made only when such decline is other than
 temporary.
 
 h) INVENTORIES
 
 i) Finished Goods are valued at lower of cost or net realizable value.
 
 ii) Cost of Work-in-Progress and Finished Goods includes appropriate
 portion of overheads etc., and excise duty wherever applicable.
 
 iii) Raw Materials, Stores and Spares are valued at cost using weighted
 average method.
 
 iv) Work-in-Progress, Raw Materials, Stores, Spares, Material in
 Transit, are valued at cost except where the net realizable value of
 the finished goods they are used in is less than the cost of finished
 goods and in such an event, if the replacement cost of such materials
 etc., is less than their book values, they are valued at replacement
 cost.
 
 v) By-products and scrap are valued at net realizable value.
 
 vi) Dedicated machinery spares which can be used only in connection
 with an item of fixed assets and whose use is expected to be irregular
 are amortized over the estimated useful life of the principal assets.
 
 i) 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) Revenue from sale of products is recognised when the risks and
 rewards of ownership are transferred to the buyer under the terms of
 the contract which usually coincide on the dispatch of goods to the
 customer or when they are unconditionally appropriated under the terms
 of sale.
 
 ii) Sales include excise duty and Service charges recovered and are
 stated net of trade discounts and sales tax.
 
 iii) Revenue realized on processing charges is booked based on
 agreements/arrangements with the concerned parties.
 
 iv) Power consumed in other units is accounted at market price.
 
 v) Interest on investments and deposits is booked on a time proportion
 basis taking into account the amounts invested and the rate of
 interest.
 
 vi) Dividend income is accounted for in the year in which the right to
 receive the payment is established.
 
 j) TAXES ON INCOME
 
 Current tax is determined as per the provisions of Income Tax Act, 1961
 in respect of taxable income for the year. Deferred tax liability is
 recognized, subject to the consideration of prudence on timing
 differences, being the difference between taxable incomes and
 accounting income that originate in one period and are capable of
 reversal in one or more subsequent periods.
 
 Deferred tax assets arising on account of brought forward losses and
 unabsorbed depreciation as per Income Tax laws are recognized only when
 there is virtual certainty supported by convincing evidence that such
 assets will be realized. Deferred tax assets arising on other temporary
 differences are recognized only if there is a reasonable certainty of
 realization.
 
 k) SEGMENT REPORTING
 
 The accounting policies adopted for segment reporting are in line with
 the accounting policies of the Company with the following additional
 policies for segment reporting.
 
 Inter segment revenue has been accounted for based on the market
 related prices.
 
 Revenue and expenses have been identified to segments on the basis of
 their relationship to the operating activities of the segment. Revenue
 and expenses which relate to the enterprise as a whole and are not
 allocable to segments on a reasonable basis, have been included under
 Unallocated expenses.
 
 l) RETIREMENT BENEFITS
 
 The Company provides retirement benefits in the form of Provident Fund,
 Superannuation and Gratuity etc.,
 
 Contribution to Provident Fund, a defined contribution scheme, is made
 at the prescribed rates to the Provident Fund Commissioner and is
 
 charged to the Statement of Profit and Loss. There is no other
 obligation other than the contribution payable.
 
 Gratuity, a defined Benefit scheme is covered by a Group Gratuity cum
 Life Assurance policy with LIC. Annual contribution to the fund as
 determined by LIC is expensed in the year of contribution. The short
 fall between the accumulated funds available with LIC and liability as
 determined on the basis of actuarial valuation is provided for as at
 the year end. The actuarial valuation is done as per the Projected Unit
 Credit method.  Actuarial gains/losses are immediately taken to
 Statement of Profit and Loss.
 
 The liability in respect of compensated absences due or expected to be
 availed within one year from the balance sheet date is recognized on
 the basis of undiscounted value of estimated amount required to be
 paid. Liability in respect of compensated absences becoming due or
 expected to be availed more than one year after the balance sheet date
 is estimated on the basis of actuarial valuation using projected unit
 credit method at the end of each year.
 
 Contribution to Superannuation Fund, a defined contribution scheme, is
 made to the LIC as per arrangement with them.
 
 m) RESEARCH & DEVELOPMENT EXPENDITURE
 
 Revenue expenditure is charged to Profit & Loss Account and Capital
 expenditure is added to the cost of Fixed Assets in the year in which
 it is incurred.
 
 n) FOREIGN EXCHANGE TRANSACTIONS
 
 Transactions in foreign currency are initially accounted at the
 exchange rate prevailing on the date of the transaction, and adjusted
 appropriately, with the difference in the rate of exchange arising on
 actual receipt/ payment during the year.
 
 At each Balance Sheet date
 
 i.  Foreign currency monetary items are reported using the rate of
 exchange on that date.
 
 ii.  Foreign currency non-monetary items are reported using the
 exchange rate at which they were initially recognized.
 
 o) IMPAIRMENT OF ASSETS:
 
 An asset is treated as impaired when the carrying cost of the same
 exceeds its recoverable amount. An impairment loss is charged to the
 Statement of Profit and Loss in the year in which an asset is
 identified as impaired. The impairment loss recognized in prior
 accounting period is reversed if there has been a change in the
 estimate of recoverable amount.
 
 p) 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
 obligation can be made. Provisions are not discounted to their present
 value and are determined based on the best estimate required to settle
 the obligation at the reporting date.  These estimates are reviewed at
 each reporting date and adjusted to reflect the current best estimates.
 
 Contingent liability is disclosed for (i) Possible obligation which
 will be confirmed only by future events not wholly within the control
 of the Company or (ii) 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. The company does not recognise contingent
 liabilities but the same are disclosed in the Notes.
 
 Contingent assets are not recognised in the financial statements since
 this may result in the recognition of income that may never be
 realised.