(a) General
 
 i) The financial statements are prepared under the historical cost
 convention, on the accounting principles of a going concern.
 
 ii) Accounting Policies not Specifically referred to otherwise are
 consistent and in consonance with the applicable accounting standards
 prescribed by the Companies (Accounting Standards) Rules, 2006 to the
 extent applicable.
 
 iii) All expenses and income to the extent ascertainable with
 reasonable certainty are accounted for on accrual basis.
 
 iv) The preparation of financial statements in conformity with generally
 accepted accounting principles (GAAP) requires the management to make
 estimates and assumptions that affect the reported amounts of assets
 and liabilities and the disclosures of contingent liabilities on the
 date of financial statements and reported amounts of revenue and
 expenses for that year. Actual result could differ from these
 estimates. Any revision to accounting estimates is recognised
 prospectively.
 
 (b) Revenue Recognition
 
 Revenue is recognised based on the nature of activity when
 consideration can be reasonably measured and there exists reasonable
 certainty of its recovery.
 
 i) Revenue from sale of power is recognised when substantial risks and
 rewards of ownership is transferred to the buyer under the terms of the
 contract.
 
 ii) Revenue from construction / project related activity:
 
 Revenue from construction contract is recognised by reference to the
 overall estimated Profitability of the contract under the percentage of
 completion method. Foreseeable losses in any contract are provided
 irrespective of the stage of completion of the contract activity. The
 stage of completion of the contract is determined considering the
 nature of the contract, technical evaluation of work completed /
 measurement of physical progress and proportion of the cost incurred to
 the estimated total cost.
 
 Contracts cost comprise all cost that relate directly to the specifed
 contract, incidental cost attributable to the contract including
 allocated overheads and warranty cost.
 
 iii) Operator fees and other income are accounted on accrual basis as
 and when the right to receive arises.
 
 (c) Fixed Assets
 
 Fixed assets are stated at cost which includes all direct and indirect
 expenses up to the date of acquisition, installation and / or
 commencement of commercial generation of power.
 
 Expenditure incurred during construction period
 
 Apart from costs related directly to the construction of an asset,
 indirect expenses incurred up to the date of commencement of commercial
 production which are incidental and related to construction are
 capitalised as part of construction cost. Income, if any, earned during
 the construction period is deducted from the indirect costs.
 
 (d) Intangibles
 
 Intangible Assets consisting of Membership fee for Power Trading
 Exchanges and Exchange Trading Software is amortised over the estimated
 useful life of 3 years.
 
 The Company capitalises software where it is reasonably estimated that
 the software has an enduring useful life. Software is depreciated over
 an estimated useful life of 3 years.
 
 (e) Capital Work-in-Progress (CWIP)
 
 Cost of material consumed, erection charges thereon along with other
 related expenses incurred for the projects are shown as CWIP for
 capitalisation.
 
 Expenditure attributable to construction of fixed assets are identifed
 and allocated on a systematic basis to the cost of the related assets.
 
 Interest during construction and expenditure (net) allocated to
 construction are apportioned to capital work-in-progress (CWIP) on the
 basis of the closing balance of Specific asset or part of asset being
 capitalised. The balance, if any, left after such capitalisation is
 kept as a separate item under the CWIP Schedule.
 
 Claims for price variation/exchange rate variation in case of contracts
 are accounted for on acceptance of claims.
 
 Any other expenditure which is not directly or indirectly attributable
 to the construction of the Project / construction of the Fixed Asset,
 is charged off to Profit and loss account in the period in which they
 are incurred.
 
 (f) Depreciation
 
 Depreciation is provided on Straight Line Method at the rates and in
 the manner specifed in Schedule XIV to the Companies Act, 1956.
 
 Depreciation on impaired assets related to a cash generating unit is
 provided by adjusting the depreciation charge in the remaining periods
 so as to allocate the revised carrying amount of the asset over its
 remaining useful life.
 
 (g) Impairment of assets
 
 In accordance with AS-28 Impairment of assets prescribed by the
 Companies (Accounting Standards) Rules, 2006, where there is an
 indication of impairment of the Companys assets related to cash
 generating units, the carrying amounts of such assets are reviewed at
 each balance sheet date to determine whether there is any impairment.
 The recoverable amount of such assets is estimated as the higher of its
 net selling price and its value in use. An impairment loss is
 recognized in the Profit and loss account whenever the carrying amounts
 of such assets exceed its recoverable amount.
 
 (h) Borrowing Costs
 
 (i) Borrowing Costs (including exchange differences) directly
 attributable to the acquisition or construction of qualifying assets
 are capitalized as part of the cost of such assets up to the date when
 the asset is ready for its intended use. A qualifying asset is one that
 necessarily takes substantial period of time to get ready for its
 intended use. The borrowing cost eligible for capitalisation is being
 netted off against any income arising on temporary investment of those
 borrowings.  The capitalization of the borrowing costs shall cease when
 substantially all activities necessary to prepare the qualifying asset
 for its intended use are complete.
 
 (ii) Expenses incurred in connection with the arrangement of borrowings
 are written off over the period of the borrowing
 
 (iii) Other borrowing costs are charged to revenue.
 
 (i) Investments
 
 Long term Investments are stated at cost. In case, there is a decline
 other than temporary in the value of any Investments, a provision for
 the same is made. Current Investments are valued at lower of cost and
 fair value.
 
 (j) Inventories
 
 Inventories are valued at lower of cost and net realisable value. Cost
 is determined on the weighted average basis for valuation. Obsolete,
 defective and unserviceable stocks are duly provided for.
 
 (k) Foreign Exchange Transactions
 
 Foreign Currency transactions are recorded at the exchange rates
 prevailing on the date of the transaction. Monetary Foreign Currency
 assets and liabilities (monetary items) are reported at the exchange
 rate prevailing on the balance sheet date. Pursuant to the notifcation
 of the Companies (Accounting Standards) Amendment Rules, 2006 on 31st
 March, 2009, which amended Accounting Standard 11 on The Effects of
 Changes in Foreign Exchange Rates, exchange differences relating to
 long term monetary items are dealt with in the following manner:
 
 - Exchange differences relating to long-term monetary items, arising
 during the year, in so far as they relate to the acquisition of a
 depreciable capital asset are added to / deducted from the cost of the
 asset and depreciated over the balance life of the asset.
 
 - In other cases such differences are accumulated in a Foreign
 Currency Monetary Item Translation Difference Account and amortised to
 the Profit and loss account over the balance life of the long-term
 monetary item, upto 31st March, 2011.
 
 Non-monetary items such as investments are carried at historical cost
 using the exchange rates on the date of the transaction.
 
 Forward contracts other than those entered into to hedge foreign
 currency risk on unexecuted frm commitments or of highly probable
 forecast transactions are treated as foreign currency transactions and
 accounted accordingly. Exchange differences arising on such contracts
 are recognised in the period in which they arise and the premium paid
 is accounted as expense over the period of the contract.
 
 All other exchange differences are dealt with in the Profit and loss
 account.
 
 (l) Employee benefits
 
 Retirement benefits in the form of Provident Fund and Family pension
 Scheme are defned contribution schemes 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 respective
 trusts.
 
 Stock Based Compensation - The compensation cost of stock options
 granted to employees is calculated using the intrinsic value of the
 stock options. The compensation expense is amortised uniformly over the
 vesting period of the option.
 
 Gratuity liability under the Payment of Gratuity Act, 1972 is a defned
 beneft obligation and is provided for on the basis of the actuarial
 valuation made at the end of each financial year.
 
 Short-term compensated absences are provided for based on estimates.
 Long-term compensated absences are provided for based on actuarial
 valuation.
 
 Actuarial gains/ losses are immediately taken to Profit and loss account
 and are not deferred.
 
 (m) Taxation
 
 Income tax expenses comprise current tax (i.e. amount of tax for the
 period determined in accordance with the income tax law) and deferred
 tax charges or credit (refecting the tax effects of timing differences
 between accounting income and taxable income of the year).
 
 The deferred tax charge or credit and the corresponding deferred tax
 liabilities or assets are recognised using the tax rates that have been
 enacted or substantively enacted by the balance sheet date.
 
 Deferred tax assets are recognised only to the extent there is
 reasonable certainty that the assets can be realised in future; however
 where there is unabsorbed depreciation or carry forward loss under
 taxation laws, deferred tax assets are recognised only if there is a
 virtual certainty of realisation of such assets. Deferred tax assets
 are reviewed at each balance sheet date and written down or written up
 to refect the amount that is reasonably / virtually certain as the case
 may be to be realised.
 
 Tax credit is recognised in respect of Minimum Alternate Tax (MAT) paid
 in terms of Section 115JAA of the Income Tax Act, 1961 based on
 convincing evidence that the Company will pay normal income tax within
 the statutory time frame and the same is reviewed at each balance sheet
 date.
 
 (n) Provisions and Contingent Liabilities
 
 Provisions are recognised based on the best estimate of the expenditure
 required to settle the present obligation at the balance sheet date
 when,
 
 a) the Company has a present obligation as a result of a past event,
 
 b) a probable outflow of resources is expected to settle the obligation
 and
 
 c) the amount of the obligation can be reliably estimated.
 
 Where some or all the expenditure required to settle a provision is
 expected to be reimbursed by another party, such reimbursement is
 recognised to the extent of provision or contingent liability as the
 case may be, only when it is virtually certain that the reimbursement
 will be received.
 
 Contingent liability is disclosed in the case of:
 
 a) a present obligation arising from a past event, when it is not
 probable that a outflow of resources will be required to settle the
 obligation or a reliable estimate of the amount of obligation cannot be
 made.
 
 b) a possible obligation arising from past events, the existence of
 which will be confrmed only by the occurrence or non- ocurrence of one
 or more uncertain future events not within the control of the
 enterprise.