1 Basis of preparation of Accounts
 
 The financial statements are prepared under the historical cost
 convention and in accordance with applicable Accounting Standards in
 India. The financial statements adhere to the relevant presentational
 requirement of the Companies Act, 1956.
 
 2 Fixed Assets
 
 i. Fixed Assets are stated at original cost less accumulated
 depreciation.  Cost of acquisition is inclusive of freight, duties,
 taxes and other incidental expenses related to acquisition,
 installation and commissioning.  Expenses incurred on
 tangible/intangible assets are carried forward as capital work in
 progress at cost till the same are ready for use.
 
 ii. Depreciation is provided on Written Down Value method as per the
 rates and in the manner prescribed in the Schedule XIV to the Companies
 Act, 1956. Assets costing upto Rs. 5,000/- are fully depreciated in the
 year of capitalization.
 
 iii. Computer software recognized as intangible asset is amortised on
 straight line method on pro-rata basis over a year of three years.
 
 iv. Capital expenditure on assets not owned by the Company is reflected
 as distinct item in Capital work-in-progress till the period of
 completion and thereafter in the Fixed Assets and is amortised over a
 period of 3 years.
 
 v. No amortization is provided for in case of leasehold land on
 perpetual lease. Other Leasehold land are amortised over the lease
 period.
 
 3 Revenue
 
 i. Revenue from sale of power is accounted for based on rates agreed
 with the beneficiaries, excluding service charges wherever separately
 indicated in the agreement.
 
 ii. Service charges include transaction fee charged under the contracts
 of purchase and supply of power.
 
 iii. Revenue in the form of Management and/or Success Fee for services
 rendered in relation to development work of Potential Power Projects is
 recognised when such fee is assured and determinable under the terms of
 the respective contract.
 
 iv. The surcharge on late/non-payment of dues by sundry debtors for
 sale of energy is not treated as accrued due to uncertainty of its
 realization and is, therefore, accounted for on receipt basis.
 
 v. Consultancy income is recognized proportionately with the degree of
 completion of services.
 
 vi. Interest is recognized on a time proportion basis taking into
 account the amount outstanding and the rate applicable
 
 vii. Dividend is accounted when the right to receive is established
 
 4 Prepaid and prior-period items
 
 Prepaid and prior-period items up to Rs. 5000/- are accounted to
 natural heads of accounts.
 
 5 Employee Benefits
 
 i.  Short Term Benefits
 
 Employee benefits (other than post employment benefits) which fall due
 wholly within twelve months after the end of the year in which the
 employees render the related service are recognized at the amount
 expected to be paid for it.
 
 ii.  Post Employment Benefits
 
 Defined contribution plans
 
 Liability in respect of defined contribution plans are accounted for to
 the extent of contributions paid/payable to the separate
 entity/trust/fund
 
 Defined Benefit plan
 
 (a) Liability in respect of defined benefit plans is accounted for on
 actuarial valuation basis at the period/year end.
 
 (b) Actuarial gains and losses are recognized in the statement of
 profit & loss in the year of its occurrence.
 
 iii. Liability in respect of gratuity, leave encashment and provident
 fund of employees on deputation with the company are accounted for on
 the basis of terms and conditions of deputation of the parent
 organizations
 
 6.  Foreign Exchange
 
 Transactions in foreign currencies are recorded at the exchange rate
 prevailing on the date of the transaction. Liability / receivables on
 account of foreign currency are converted at the exchange rates
 prevailing as at the end of the year and gains / losses thereon are
 taken to profit and loss account.
 
 7 Employee Stock option based compensation
 
 The excess of market price of underlying equity shares as of the date
 of the grant of options over the exercise price of the options given to
 employees under the employee stock option plan is recognize as deferred
 stock compensation cost and amortized over the vesting period, on a
 straight line basis.
 
 8 Investments
 
 i. Long term investments are carried at cost less provision, if any,
 for permanent diminution in the value of such investments. Short term
 investments are carried at lower of cost or fair value.
 
 ii. Equity stock futures are recognized at the end of the year/year in
 the books to the extent of initial/Mark to Market margin paid/received.
 Equity stock futures are carried at cost where they are used as an
 instrument for hedging and independent open positions of equity stock
 future are being carried at lower of cost or fair value.
 
 iii. Equity index/stock options are recognized at the end of the
 year/year in the books to the extent of premium paid. Equity
 index/stock options are carried at cost where they are used as an
 instrument for hedging and independent open positions of equity
 index/stock options are being carried at lower of cost or fair value.
 
 9 Earnings per Share
 
 In determining basic earnings per share, the company considers the net
 profit attributable to equity shareholders. The number of shares used
 in computing basic earnings per share is the weighted average number of
 shares outstanding during the period. In determining diluted earnings
 per share, the net profit attributable to equity shareholders and
 weighted average number of shares outstanding during the period are
 adjusted for the effect of all dilutive potential equity shares.
 
 10 Provisions and Contingencies
 
 A provision is recognized when the company has a present obligation as
 a result of a past event, when it is probable that an outflow of
 resources embodying economic benefits will be required to settle the
 obligation and reliable estimate can be made of the amount of the
 obligation.Contingent Liabilities are not recognized but are disclosed
 in the notes. Contingent Assets are neither recognized nor disclosed in
 the financial statements.
 
 11 Income Tax
 
 Provision for current tax is ascertained on the basis of assessable
 profits computed in accordance with the provisions of the Income-tax
 Act, 1961
 
 Deferred tax is recognized, subject to the consideration of prudence,
 on timing differences, being the difference between taxable income and
 accounting income that originate in one period and are capable of
 reversal in one or more subsequent periods. Deferred tax assets are
 recognized on unabsorbed depreciation and carry forward of losses based
 on virtual certainty that sufficient future taxable income will be
 available against which such deferred tax assets can be realized
 
 12 Impairment of Assets
 
 An asset is treated as impaired when the carrying cost of asset exceeds
 its recoverable value. An impairment loss is charged to the Profit and
 Loss Account 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.
 
 13 Use of Estimates
 
 The preparation of financial statements requires the management of the
 Company to make estimates and assumptions that affect the reported
 balances of assets and liabilities, revenues and expenses and
 disclosures relating to the contingent liabilities. The management
 believes that the estimates used in preparation of the financial
 statements are prudent and reasonable. Future results could differ from
 these estimates. Any revision to accounting estimates is recognized
 prospectively in the current and future periods.