(a) Accounting Convention :
 
 The accounts have been prepared under the historical cost convention
 and on accrual system based on the principle of going concern.
 
 (b) Income & Expenditure:
 
 - Income from Sale of Power is recognized on the basis of meter reading
 recorded and confirmed by the Electricity Board authorities upto the
 last month meter reading of the financial year.
 
 - Income from Sale of Entitlements from Wind Farm Projects are
 accounted for as and when sold.
 
 - Income on Inter Corporate Deposits is accounted for on time accrual
 basis
 
 - It is the policy of the company to provide for all income and
 expenses on accrual basis.
 
 (c) Fixed Assets
 
 - Fixed assets are valued at cost less depreciation.
 
 - Land - Leasehold is amortized over the tenure of lease.
 
 (d) Leased Assets
 
 In respect of assets given on operating lease, the company has followed
 Accounting Standard - 19 on Leases issued under Companies (Accounting
 Standards) Rules.
 
 (e) Depreciation :
 
 The company depreciates its assets on straight line method at the rates
 and in the manner prescribed under schedule XIV of the Companies Act,
 1956.
 
 (f) Capital Work In Progress:
 
 All direct expenses incurred for acquiring and erecting fixed assets
 are shown under capital work in progress.  Any purchases made on
 account of capital work in progress is charged to the capital work in
 progress irrespective of its consumption.
 
 (g) Investments:
 
 Long term investments are carried at cost. Provision for dimunition, if
 any, in the value of each long term investment is made to recognise a
 decline, other than of temporary nature.
 
 (h) Borrowing Costs:
 
 Borrowing cost relating to the acquisition / construction of fixed
 assets are capitalised as part of cost of such assets till such time
 the assets are ready for their intended use.
 
 (i) Retirement Benefits:
 
 The Company has covered its gratuity liabilities with Life Insurance
 Corporation of India. Any amount payable to the employee in the year of
 separation in excess of amount received from LIC is charged off to
 revenue.
 
 - The Company has made necessary provisions as per
 
 actuarial valuation for leave encashment and other retirement benefits
 wherever required as per Accounting Standard 15 under Companies
 (Accounting Standards) Rules.
 
 (j) Amortization of Miscellaneous Expenditure:
 
 Preliminary expenses are amortized in the year of incurrence of
 expenditure.
 
 (k) Impairment of Assets:
 
 If the carrying amount of fixed assets exceeds the recoverable amount
 on the reporting date, the carrying amount is reduced to the
 recoverable amount. The recoverable amount is measured as the higher of
 the net selling price and the value in use determined by the present
 value of estimated future cash flows.
 
 (l) Taxation:
 
 Provision for income tax for current year is made on the basis of
 taxable income for the year as determined as per the provisions of the
 Income Tax Act, 1961.
 
 (m) Deferred Tax:
 
 Deferred income tax is accounted for by computing the tax effect on
 timing differences which arise during the year and capable of reversal
 in subsequent periods.
 
 (n) Foreign Currency Transaction:
 
 The transactions in foreign currency are accounted at exchange rate
 prevailing on the date of transaction.  Money items denominated in
 foreign currency outstanding at the year end are translated at the year
 end exchange rate and the unrealised exchange gain or loss is
 recognized in the profit and loss account.