a.  Accounting Convention
 
 The Financial Statements have been prepared and presented under the
 historical cost convention on the accrual basis of accounting in
 accordance with Generally Accepted Accounting Principles in India
 (GAAP) and comply with the mandatory Accounting Standards as specified
 in the Companies (Accounting Standards) Rules 2006 (''Rules''), other
 pronouncements of the Institute of Chartered Accountants of India
 (ICAI) to the extent applicable, the provisions of Companies Act, 1956
 and guidelines issued by Securities and Exchange Board of India.
 
 b.  Use of estimates
 
 The Preparation of financial statements in conformity with GAAP
 requires management to make estimates and assumptions that affect the
 reported amounts of assets and liabilities and the disclosure relating
 to contingent assets and contingent liabilities as on date of financial
 statements and the reported amounts of income and expenses during the
 period. Actual results could differ from the estimates. Any revision to
 accounting estimates is recognized prospectively in current and future
 periods.
 
 c.  Fixed assets and depreciation
 
 Fixed assets are stated at cost of acquisition. Cost of acquisition is
 inclusive of freight, duties, levies and all incidentals directly or
 indirectly attributable to bringing the asset to its working condition
 for its intended use. The cost of fixed assets includes cost of initial
 warranty/ insurance spares purchased along with the capital asset,
 which are grouped as single item under respective assets.
 
 Borrowing costs directly attributable to the acquisition or
 construction of those fixed assets which necessarily take a substantial
 period of time to get ready for their intended use are capitalised.
 
 Depreciation has been provided on Straight Line Method at the rates and
 in the manner specified in Schedule XIV of the Companies Act, 1956
 except for assets costing up to Rs. 5,000/-, which are fully
 depreciated in the year of capitalisation. Depreciation is calculated
 on a pro-rata basis from the date of installation till the date the
 assets are sold or disposed.
 
 Depreciation on initial/ warranty spares are provided on the same rates
 applicable for that Asset group, irrespective of its actual usage.
 
 Intangible assets, viz., computer software is recognized as per the
 criteria specified in the Accounting Standard (AS) 26 Intangible
 Assets notified by the Government of India under Section 211 (3C) of
 the Companies Act, 1956 and is amortized over a period of three years.
 
 Leasehold improvements are amortized over the period of lease.
 
 d.  Foreign currency transactions
 
 Foreign Currency transactions are initially recorded at the rates of
 exchange ruling at the date of transaction.
 
 At the Balance Sheet date, foreign currency monetary items are reported
 using the closing/contracted rate. Non monetary items denominated in
 foreign currency are reported at the exchange rate ruling at the date
 of transaction.
 
 All exchange differences are recognized as income or expense in the
 period in which they arise.
 
 e.  Investments
 
 Long-term investments are stated at cost. A provision for diminution is
 made to recognise a decline, other than temporary, in the value of
 long-term investments. Current investments are carried at the lower of
 cost and fair value.  The comparison of cost and fair value is done
 separately in respect of each category of investment.
 
 f.  Revenue recognition
 
 Revenue in the form of project development fees for services rendered
 in relation to development work of potential power projects is
 recognized when such fees is assured and determinable under the terms
 of the respective contract.
 
 Consultancy income is recognised proportionately with the degree of
 completion of contract.
 
 Dividend income is recognized when the right to receive the same is
 established.
 
 Interest income is recognized on time proportion basis taking into
 account the amount outstanding and at the rate applicable.
 
 Sale of energy is recognised on accrual basis in accordance with the
 relevant agreements.
 
 Corporate support service income is recognised when such income is
 assured and determinable under the terms of the respective contract.
 
 g.  Retirement benefits
 
 Contributions payable to the recognised provident fund, which is a
 defined contribution scheme, is charged to the Profit and Loss account.
 
 Gratuity, which is defined benefits, are provided for on the basis of
 an actuarial valuation at the Balance Sheet date, carried out by an
 independent actuary.
 
 Actuarial gains and losses arising during the year are recognised in
 the profit and loss account.
 
 h.  Cash flow statement
 
 Cash flows are reported using the indirect method, where by the net
 profit before tax is adjusted for the effects of transactions of a non
 cash nature, any deferrals or accruals of past or future operating cash
 receipts or payments and item of income or expenses associated with
 investing or financing cash flows. The cash flows from operating,
 investing and financing activities of the Company are segregated and
 presented separately.
 
 i.  Taxes on income
 
 Income tax expense comprises current tax, deferred tax and MAT credit.
 
 Current tax
 
 The current charge for income taxes is calculated in accordance with
 the relevant tax regulations applicable to the Company.
 
 MAT Credit
 
 MAT credit is recognised as an asset only when and to the extent there
 is convincing evidence that the company will pay normal income tax
 during the specified period. In the year in which the Minimum
 Alternative tax (MAT) credit becomes eligible to be recognized as an
 asset in accordance with the recommendations contained in Guidance Note
 issued by the Institute of Chartered Accountants of India, the said
 asset is created by way of a credit to the profit and loss account and
 shown as MAT Credit Entitlement. The Company reviews the same at each
 balance sheet date and writes down the carrying amount of MAT credit
 entitlement to the extent there is no longer convincing evidence to the
 effect that Company will pay normal Income Tax during the specified
 period.
 
 Deferred tax
 
 Deferred tax charge or credit reflects the tax effects of timing
 differences between accounting income and taxable income for the
 period. 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 substantially 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 of
 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 reflect the amount that is reasonably/virtually
 certain (as the case may be) to be realised.
 
 The break-up of the deferred tax assets and liabilities as at the
 Balance Sheet date has been arrived at after setting-off deferred tax
 assets and liabilities where the Company has no legally enforceable
 right and an intention to set-off assets against liabilities and where
 such assets and liabilities relate to taxes on income levied by the
 same governing taxation laws.
 
 j.  Earnings per share
 
 Basic earnings per share is computed by dividing the net profit or loss
 after tax attributable to equity shareholders for the year by the
 weighted average number of equity shares outstanding during the year.
 For the purpose of calculating diluted earnings per share, net profit
 or loss after tax attributable to equity shareholders and the weighted
 average number of shares outstanding during the year are adjusted for
 the effects of all dilutive potential equity shares. Dilutive potential
 equity shares are deemed converted as of the beginning of the period,
 unless they have been issued at a later date. In computing the dilutive
 earnings per share, only potential equity shares that are dilutive and
 that either reduces the earnings per share or increases loss per share
 are included.
 
 k.  Provisions and contingencies
 
 The Company recognises a provision when there is a present obligation
 as a result of past obligating event that probably requires an outflow
 of resources and a reliable estimate can be made of the amount of the
 obligation. A disclosure for a contingent liability is made when there
 is a possible obligation or a present obligation that may, but probably
 will not, require an outflow of resources. Where there is a possible
 obligation or a present obligation that the likelihood of outflow of
 resources is remote, no provision or disclosure is made.
 
 l.  Leases
 
 Lease that do not transfer substantially all the risks and rewards of
 ownership are classified as operating leases and recorded as expense as
 and when the payments are made over the lease term.
 
 m. Impairment of assets
 
 The Company assesses at each balance sheet date whether there is any
 indication that an asset may be impaired. If any such indication
 exists, the Company estimates the recoverable amount of the asset. If
 such recoverable amount of the asset or the recoverable amount of the
 cash generating unit to which the asset belongs is less than its
 carrying amount, the carrying amount is reduced to its recoverable
 amount. The reduction is treated as an impairment loss and is
 recognized in the profit and loss account. For an asset that does not
 generate largely independent cash inflows, the recoverable amount is
 determined for the cash-generating unit to which the asset belongs. If
 at the balance sheet date there is an indication that a previously
 assessed impairment loss no longer exists, the recoverable amount is
 reassessed and the asset is reflected at the recoverable amount subject
 to a maximum of depreciated historical cost.