(a) Basis of preparation of financial statements:
 
 The financial statements are prepared on an accrual basis of accounting
 and in accordance with the generally accepted accounting principles in
 India, provisions of the Companies Act, 1956 (the Act) and comply in
 material aspects with the Accounting Standards notified under Section
 211 (3C) of the Act, read with Companies (Accounting Standards) Rules
 2006. Assets and Liabilities created under applicable electricity laws
 continue to be depicted under appropriate heads
 
 (b) Use of Estimate:
 
 The preparation and presentation of financial statements requires
 estimates and assumptions to be made that affect the reported amount of
 assets and liabilities and disclosures of contingent liabilities as on
 date of the financial statements and reported amount of revenue and
 expenses during the reporting period. Difference between the actual
 results and estimates is recognised in the period in which the results
 are known / materialized
 
 (c) Revenue Recognition Policy:
 
 (i) Electricity Business:
 
 Revenue from sale of electrical energy is accounted for on the basis of
 billing to consumers and is inclusive of fuel adjustment charges (FAC)
 and unbilled revenue carried forward in the Balance sheet as Tariff
 Adjustment Account, Generally all consumers are billed on the basis of
 recording of consumption of energy by installed meters. Where meters
 have stopped or are faulty, the billing is done based on the past
 consumption for such period
 
 The Company determines revenue gaps (i.e surplus/shortfall in actual
 returns over assured returns) in respect of its regulated operations
 based on the principles laid down under the relevant Tariff
 Regulations/Tariff Orders notified by MERC. In respect of such revenue
 gaps, appropriate adjustments are made in the revenue of the respective
 year for the amounts which are reasonably determinable and no
 significant uncertainity exists in such determination. These
 adjustments representing unbilled revenue are carried forward as Tariff
 Adjustment Account under the schedule ''Loans and Advances'' which would
 be recovered through future tariff determination by the regulator in
 accordance with the electricity regulations
 
 (ii) EPC and contracts Business:
 
 In respect of construction contracts, revenue is recognised on the
 percentage of completion method based on the stage of completion of a
 contract upto the reporting date
 
 The stage of completion of a contract is determined in proportion that
 the progress billings raised by the Company on the basis of joint
 measurement and works certified by the customers up to the reporting
 date as per the terms of the contract, bear to the total contract value
 
 Profit is recognised when the outcome of the contract can be estimated
 reliably. Profit proportionate to value of work done is arrived at by
 deducting cost of work done plus cost estimated by the management to
 complete the work from the agreed contract value, after deduction of
 contingency
 
 contract in progress is valued at cost plus proportionate profit less
 anticipated loss.
 
 In respect of operation and maintenance contracts, profit proportionate
 to value of work done or the period elapsed as the case may be, is
 recognised
 
 (iii) Others:
 
 insurance and other claims are recognised as revenue on certainty of
 receipt on prudent basis income oninvestments is recognised based on
 the terms of the investment. income from mutual fund scheme having
 fixed maturity plans is accounted on declaration of dividend or on
 maturity of such investments
 
 (d) Foreign Currency Transactions:
 
 (i) Foreign currency transactions are accounted at the exchange rates
 prevailing on the date of the transactions. Gains and losses, if any,
 at the year-end in respect of monetary assets and monetary liabilities
 are recognised in the Profit and Loss Account,
 
 (ii) In respect of integral foreign operations of the Company, its
 fixed assets are translated at the rate on the date of acquisition,
 monetary assets and monetary liabilities are translated at the rate on
 the date of the balance sheet and income and expenditure are translated
 at the average of month-end rates during the year,
 
 (iii) Non-Monetary items denominated in foreign currency are stated at
 the rate prevailing on the date of the transaction
 
 (iv) In respect of derivative transactions, gains / losses are
 recognised in the Profit and Loss Account on settlement.  On a
 reporting date, open derivative contracts are revalued at fair values
 and resulting losses on an overall basis (including reversal of losses
 for earlier periods), if any, are recognised in the Profit and Loss
 Account,
 
 (e) Fixed Assets: Tangible Assets
 
 (i) The gross block of fixed assets is stated at cost of acquisition or
 construction (except revalued assets), including any cost attributable
 to bringing the assets to their working condition for their intended
 use
 
 (ii) All project related expenditure viz. civil works, machinery under
 erection, construction and erection materials pre-operative expenditure
 incidental/ attributable to the construction of project, borrowing cost
 incurred prior to the date of commercial operations and trial run
 expenditure are shown under Capital Work-in-Progress (CWIP) These
 expenses are net of recoveries and income (net of tax) from surplus
 funds arising out of project specific borrowings
 
 Intangible Assets
 
 Acquisition cost of residual Interest in the monthly cash flow of the
 toll road businesses have been accounted as intangible assets
 
 (f) Depreciation / Amortisation: (i) Electricity Business:
 
 Fixed assets are depreciated under the straight line method as per the
 rates and in the manner prescribed under Schedule XIV of the Companies
 Act, 1956 relating to license business and other electricity business.
 The depreciation for the year has been shown after reducing the
 proportion of the amount of depreciation provided on assets created
 against the contributions received from consumers
 
 Depreciation on revalued assets is charged over the balance residual
 life of the assets considering the life prescribed under Schedule XIV
 of the Companies Act, 1956 (ii) EPC and contracts Business:
 
 Fixed assets of EPC Business have been depreciated under the reducing
 balance method at the rates and in the manner prescribed in Schedule
 XIV of the Companies Act, 1956 (iii) Other Activities:
 
 Fixed assets of other activities have been depreciated under the
 straight line method at the rates and in the manner prescribed in
 Schedule XIV of the Companies Act, 1956
 
 (iv) Leased Assets:
 
 Depreciation on all assets given on lease upto March 31, 2001 is
 provided on straight line method at the higher of the rates determined
 with reference to the primary period of the lease and the rates and in
 the manner prescribed in Schedule XIV of the Companies Act, 1956
 
 (v) Intangible Assets:
 
 (i) Softwares are amortised over a period of three years,
 
 (ii) Intangible Assets representing acquisition of Residual Interest in
 Toll Businesses are amortised over a contract period ranging from 1 2
 to 15 years, on the basis of projected revenue which reflects the
 pattern which is beyond the maximum period of 10 years, as specified
 in the Accounting Standard 26 on Intangible Assets, as the economic
 benefits from the underlying assets would be available to the Company
 over such period as per the agreements entered
 
 ((f) Investments:
 
 Long-terminvestments are carried at cost, less provision for
 diminution other than temporary, if any, in the value of such
 investments. Currentinvestments are carried at lower of cost and fair
 value
 
 (h) Inventories:
 
 Inventories are stated at lower of cost and net realisable value. In
 case of fuel, stores and spares cost means weighted average cost.
 Unserviceable / damaged stores and spares are identified and written
 down based on technical evaluation (i) Allocation of Indirect Expenses:
 (i) Electricity Business
 
 The allocation to capital and revenue is done consistently on the basis
 of a technical evaluation (ii) EPC and contracts Business Common
 overheads are absorbed by various jobs in proportion to the prime cost
 of each job (j) Retirement Benefits:
 
 Contributions to defined contribution schemes such as provident fund,
 superannuation fund etc. are charged to Profit and Loss Account/
 Capital Work-in-Progress, as applicable. The Company also provides for
 retirement benefits in the form of
 
 gratuity and leave encashment. Such defined benefits are charged to
 Profit and Loss Account/ Capital Work-in-Progress as applicable, based
 on actuarial valuations, as at the balance sheet date, made by
 independent actuaries,
 
 (k) Borrowing Costs:
 
 Borrowing costs that are attributable to the acquisition or
 construction of qualifying assets are capitalised as part of the cost
 of such assets. A qualifying asset is one that necessarily takes
 substantial period of time to get ready for intended use. All other
 borrowing costs are charged to revenue
 
 (I) Accounting for Taxes on income:
 
 Provision for current tax is made after king into consideration
 benefits admissible under the provisions of the income Tax Act, 1961.
 Deferred tax resulting from timing differences between book and
 taxable profit is accounted for using the tax rates and laws that have
 been enacted or substantively enacted as on the balance sheet date. The
 deferred tax asset is recognised and carried forward only to the extent
 that there is a reasonable certainty that the assets will be realised
 in future. However, in respect of unabsorbed depreciation or carry
 forward loss, the deferred tax asset is recognised and carried forward
 only to the extent that there is a virtual certainty that the assets
 will be realised in future. Since income-tax paid is considered in 
 truing -up for future tariff determination under the applicable tariff
 regulation, the Deferred tax liability/ asset arising on account of
 difference between the depreciation claimed as per Electricity Act,
 2003 and income-tax Act, 1961 is recoverable or payable through future
 tariff. Hence, the recognition of deferred tax asset or liability is
 made with corresponding provision of liability or asset, for payable or
 recoverable, as applicable
 
 (m) Provisions:
 
 Provisions are recognised when the Company has a present obligation, as
 a result of past events, for which it is probable that an outflow of
 economic benefits will be required to settle the obligation and a
 reliable estimate can be made for the amount of the obligation
 
 (n) 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 assets. If
 the carrying amount of fixed assets / cash generating unit 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,
 
 (o) Accounting for Oil and Gas Activity:
 
 The Company follows successful efforts method for accounting of oil
 and gas exploration activities as set out by the guidance note issued
 by the Institute of Chartered Accountants of India on ''Accounting for
 Oil and Gas Producing Activities''. The cost of survey and prospecting
 activities conducted in search of oil and gas are expensed out in the
 year in which the same are incurred