1.  BASIS OF PREPARATION OF FINANCIAL STATEMENTS:
 
 The financial statements have been prepared and presented under the
 historical cost convention using the accrual basis of accounting and
 comply with all mandatory Accounting Standards [AS] as specified in the
 Companies (Accounting Standard) Rules 2006 and the relevant provisions
 of Companies Act, 1956.
 
 2.  USE OF ESTIMATES:
 
 The preparation of financial statements is in conformity with the
 Generally Accepted Accounting Principles {GAAP} requires management to
 make estimates and assumptions that affects the amounts reported in the
 financial statements and accompanying notes. Although these estimates
 are based on management''s best knowledge of current events and actions
 the Company may undertake in future, actual results ultimately may
 differ from the estimates. Any revision to the accounting estimates is
 recognized in current and future periods.
 
 3.  FIXED ASSETS:
 
 a) Free Hold Land / Lease Hold Land is stated at cost of acquisition
 inclusive of incidental expenses thereto.
 
 b) Fixed Assets are recorded at cost of acquisition or construction
 inclusive of inward freight, duties, taxes and other directly
 attributable incidental expenses relating thereto less accumulated
 depreciation.
 
 c) Capital Work-in-Progress includes Advances paid to acquire Fixed
 Assets and the cost of Fixed Assets together with incidental Expenses
 and attributable interest on borrowed Fund for the purpose of acquiring
 these assets that were not put to use for their intended use.
 
 d) When assets are sold or discarded, their cost and accumulated
 depreciation are removed from fixed asset and any gain/loss resulting
 therefrom is reflected in Profit 8c Loss account.
 
 4.  INTANGIBLEASSETS
 
 Acquired Intangible Assets represented Software is recorded at its
 acquisitions price and related expenses thereon is amortised over its
 estimated useful life on straight-line basis, commencing from the date,
 the asset is available for its use.  The Management has estimated the
 useful life for such software as 3 (Three) Years.The useful life of the
 Assets shall be reviewed by the management at each Balance Sheet Date.
 
 5.  DEPRECIATION /AMORTISATION
 
 a) Cost of Lease Hold land is amortized over the period of the lease on
 straight-line Method.
 
 b) Depreciation is provided on the Straight Line Method (SLM) as per
 rates specified in Schedule XIV of the Companies Act, 1956 (as
 amended).
 
 6.  INVESTMENTS:
 
 Long Term Investments are carried at cost after deducting provision, if
 any, for diminution in value considered to be other than temporary in
 nature.
 
 7.  INVENTORIES:
 
 Inventories are valued as under:
 
 a) Raw Materials are valued at lower of cost computed on FIFO basis and
 net realizable value less VAT where applicable.
 
 b) Finished goods are valued at cost (less realizable value of
 by-products) or net realizable value whichever is lower.
 
 c) Stores & Spares, Packing Material etc, are valued at cost less VAT
 wherever applicable.
 
 d) By-Products are valued at estimated realizable value.
 
 8.  REVENUE RECOGNITION:
 
 a) Domestic sale is recognized on dispatch to customers and are
 recorded net of trade discounts, rebates, etc.  Export sale is
 recognized on the date, Company ships the goods as evidenced by their
 bill of lading. Sale of energy is accounted on actual net billing plus
 claims for short generation wherever applicable and includes income
 from Lease Rent of WTG.
 
 b) Export incentives are recognized when the right to receive credit as
 per the terms of incentive is established in respect of Export made and
 when there is no significant uncertainty regarding the ultimate
 collection of the relevant Export Proceeds.
 
 c) Sale of Certified Emission Reduction (CER) is recognized as income
 on the delivery of the CER to the customer''s account as evidenced by
 the receipt of confirmation of execution of delivery instructions.
 
 d) Other items of revenue are recognized in accordance with the
 Accounting Standard (AS-9). Accordingly, wherever there are
 uncertainties in the ascertainment / realization of income, the same is
 accounted when it is measured with certainty.
 
 e) Interest income is recognized on time proportion base taking into
 account the amount outstanding and the rates applicable.
 
 f) Profit / Loss on sale of investments is booked on the basis of
 contract notes/delivery of shares.
 
 g) Dividend income is recognized when the right to receive Dividend is
 established.
 
 h) Income from Operating Lease is recognized as rentals, as accrued
 during the year.
 
 9.  FOREIGN CURRENCY TRANSACTIONS:
 
 a) Foreign currency transactions are recorded by applying the relevant
 exchange rates. Exchange differences arising on foreign currency
 transactions settled during the year are recognized in the Profit &
 Loss account for the year.
 
 b) All foreign currency denominated monetary Assets 8c Liabilities are
 translated at the Exchange rates prevailing on the Balance Sheet date.
 The resultant exchange differences are recognized in the Profit & Loss
 Account for the year.
 
 c) The Company uses Derivative financial instruments such as forward
 exchange contracts to hedge its risk associated with foreign currencies
 fluctuations. Profit / loss on derivatives and financial instruments
 such as forward exchange contracts and interest rate swap to hedge
 risks associated with foreign currency fluctuations and interest rates
 are considered as revenue items on maturity of the contracts.
 
 d) Gain or Loss on restatement of forward exchange contracts for
 hedging underlying outstanding if anyat the Balance Sheet date are
 recognized for the year in which it occurs. The Premium or Discounts on
 such contracts is recognized in the Profit & Loss account over the
 period of the contract.
 
 10.  ACCOUNTING OF CLAIMS:
 
 a) Insurance claims receivable are accounted at the time when certainty
 of receivable is established.
 
 b) Claims raised by the Government Authorities '' regarding taxes &
 duties which are disputed by the company are accounted based on the
 merits of each claim.
 
 11.  BORROWING COST:
 
 Borrowing costs are recognized as an expense in the year in which they
 are incurred, except cost that are directly attributable to the
 acquisition, construction or installation of qualifying assets which
 are either kept in Capital work in progress or being capitalized as
 part of the cost of the asset.
 
 12.  SECURITIES ISSUE EXPENSE:
 
 Foreign Currency Convertible Bonds (FCCBs), Qualified Institutional
 Placement (QIP''s) , Right Issue, &, Debenture issue expenses incurred
 are adjusted against the Securities Premium Account in the year in
 which they are incurred in terms of Section 78 (2) of the Companies
 Act, 1956.
 
 13.  IMPAIRMENT OF ASSETS:
 
 The company tests on annual basis the carrying amount of the asset for
 impairment so as to determine -
 
 a) The provision for impairment loss, if any, or
 
 b) The reversal, if any, required on account of impairment loss
 recognized in previous periods.
 
 14.  EMPLOYEE BENEFITS:
 
 a) Short Term Employee Benefits:
 
 The undiscounted amount of short term employee benefit expected to be
 paid in exchange for the services rendered by employee is recognized
 during the year when the employee remain under the service. This
 benefit includes salary, wages, short term compensatory absences and
 bonus.
 
 b) Long Term Employee Benefits:
 
 i) Defined Contribution Scheme- This benefit includes contribution to
 Employee''s State Insurance Corporation {ESI} and Provident Fund
 Contribution {PF} to the Regional Provident Fund Commissioner.  These
 contributions are defined as an expense in the Profit & Loss account as
 and when such contributions are due.
 
 ii) Defined Benefit Scheme- For Gratuity and compensated leave-
 
 The Company records its liability for Gratuity and compensated leave to
 its employees based on actuarial valuation as at the balance Sheet
 date, using the projected unit credit method. Effects of changes in
 actuarial valuations are immediately recognized in the Profit & Loss
 account. The retirement benefit obligation recognized in the balance
 sheet represents. value of defined benefit obligation as reduced by the
 fair value of planned assets. Actuarial gains/losses are recognized in
 full during the year in which they occur.
 
 15.  PROPOSED DIVIDEND:
 
 Dividend proposed by the Board of Directors is provided for in the
 books of accounts pending approval at the Annual General Meeting.
 
 16.  TAXATION:
 
 Current Tax is determined on the profit of the year in accordance with
 the provisions of Income Tax Act, 1961.  Deferred tax is calculated at
 the tax rates and laws that have been enacted or substantively enacted
 by the Balance sheet date and is recognised on timing differences that
 originate in one period and are capable of reversal in one or more
 subsequent periods. Deferred tax assets, subject to consideration of
 prudence, are recognized and carried forward only to the extent that
 they can be realized.
 
 17.  PROVISIONS, CONTINGENT LIABILITIES & CONTINGENT ASSETS:
 
 a) Provision is created when there is present obligation as a result of
 past events that probably requires an outflow of resources and a
 reliable estimate can be made of the amount of obligation.
 
 b) Contingent Liability is disclosed, unless the possibility of an
 outflow of resources embodying the economic benefit is remote.
 
 c) Contingent Assets are neither recognized nor disclosed in Financial
 Statements.
 
 18.  EARNING PER SHARE:
 
 Basic Earning Per Share (EPS) is computed by dividing, the net profit
 for the period attributable to equity shareholders by the weighted
 average number of equity shares outstanding during the period. Diluted
 Earning per Share are computed after adjusting the effects of all
 dilutive potential equity shares, if any.