1.1 Basis of Accounting
 
 The financial statements have been prepared under the historical cost
 convention on accrual basis and in accordance with the accounting
 principles generally accepted in India and comply with mandatory
 Accounting Standards notified by the Central Government of India under
 the Companies (Accounting Standards) Rules, 2006 and with the relevant
 provisions of the Companies Act, 1956.
 
 1.2 Use of estimates
 
 The preparation of financial statements in conformity with the
 generally accepted accounting principles requires the management to
 make estimates and assumptions that affect the reported amount of
 assets, liabilities, revenue and expenses and disclosure of contingent
 liabilities as of the date of the financial statements. Actual results
 could differ from those estimated. Difference between the actual
 results and estimates are recognised in the period in which the results
 are known / materialised.
 
 1.3 Revenue Recognition
 
 Income in respect of sale of goods is recognised at the time of
 transfer of title. Sales are inclusive of all taxes.
 
 Revenue in respect of Engineering Contracts is recognised as and when
 progressive bills are raised based on customers measurement acceptance
 and terms of the Contract, taking into consideration technical estimate
 revision, costs to complete and stages of completion.  Profits are
 recognised after charging corresponding proportionate costs relating to
 the Contractual billings. Escalation, which in the opinion of the
 Management is recoverable on the contract are also recognised as and
 when the claims are accepted by the customers.
 
 Provision for anticipated losses on contracts is being made in the year
 they are established.
 
 Revenue from other Contracts is recognised based on completed Contract
 method, when rendering of service is completed or substantially
 completed.
 
 Revenue from sale of windmill development rights is recognized on
 transfer of the rights to the buyer under the terms of contract.
 
 Dividend Income on Investments is accounted for when the right to
 receive the payment is established.
 
 1.4 Investments
 
 Long term investments are stated at cost.  Provision for diminution in
 value is made if the decline is other than temporary in nature.
 Current Investments are stated at lower of cost and fair value
 determined on the basis of each category of investments.
 
 1.5 Fixed Assets and Depreciation
 
 Fixed assets are stated at cost. Cost comprises of the purchase price
 and any attributable cost of bringing the assets to its working
 condition for its intended use. With regard to assets acquired under
 the finance lease, the cost of assets is capitalised while the annual
 charges are charged to revenue. Intangible Assets are stated at cost.
 
 Tangible assets
 
 Depreciation is provided for on Straight Line method at the rates and
 in the manner prescribed under Schedule XIV of the Companies Act, 1
 956.
 
 Leasehold improvements are written off over the primary period of their
 lease.
 
 Individual assets costing Rs.5,000/- each or less is depreciated in
 full in the year of addition.
 
 Intangible assets
 
 Technical Know-how fees are amortised over the period of 5 to 10 years
 based on estimated useful life of the asset.
 
 Software cost is amortised over a period of 5 years based on
 Managements evaluation of their estimated useful life.
 
 Lease hold Land Using Rights is amortised over the primary period of
 lease, which is 20 years.
 
 1.6 Impairment of Assets
 
 At each balance sheet date, the carrying values of the tangible and
 intangible assets ore reviewed to determine whether there is any
 indication that those assets have suffered an impairment loss. If any
 such indication exists, the recoverable amount of the asset is
 estimated in order to determine the extent of the impairment loss (if
 any). Where there is on indication that there is a likely impairment
 loss for a group of assets, the company estimates the recoverable
 amount of the group of assets as a whole and the impairment losses, if
 any, recognised.
 
 1.7 Inventories
 
 Raw Materials and stores and spares are valued at cost. Cost on FIFO
 basis includes freight, taxes and duties net of VAT credit wherever
 applicable.
 
 Stock of land for windmill projects is valued at lower of cost and net
 realisable value. Cost of land includes purchase consideration, stamp
 duties and registration charges for transfer of title.
 
 1.8 Foreign Currency Transaction
 
 Foreign currency transactions are recorded at the rate prevailing on
 the date of transaction. At the year end, all monetary assets and
 liabilities denominated in foreign currency are restated at the year
 end exchange rates.
 
 Exchange differences arising on actual payment/realisation are
 recognised in profit and loss account.
 
 1.9 Employee Benefits:
 
 a.  Short Term Employee Benefits : All employee benefits payable wholly
 within twelve months of rendering the service are classified as short
 term employee benefits. Short term employee benefits, including
 accumulated compensated absences, at the balance sheet date, are
 recognized as an expense as per the Company''s scheme based on expected
 obligations on undiscounted basis.
 
 b.  Long Term Employee Benefits:
 
 (i) Defined Contribution Plans:
 
 Contribution to state governed provident fund scheme and employee state
 insurance scheme ore defined contribution plans. The contribution
 paid/payable under the schemes is recognised during the period in which
 the employee renders the related service.
 
 (ii) Defined Benefit Plans:
 
 The liability for Gratuity to employees as at Balance Sheet date is
 determined on the basis of actuarial valuation based on Projected Unit
 Credit method and is not funded. The contribution there of paid /
 payable is charged in the books of accounts.
 
 The obligation for long term employee benefits such as long term
 compensated absence is provided for based on actuarial valuation as at
 the balance sheet date, using the Projected Unit Credit Method.
 
 Actuarial gains and losses arising from experience adjustments and
 effects of changes in actuarial assumptions are immediately recognised
 in the Profit and Loss Account as income or expense.
 
 1.10 Taxation
 
 Provision for taxation comprise of the Current Tax Provision, Fringe
 Benefits tax and the net change in the Deferred Tax Asset or Liability
 during the year.
 
 Current Tax is determined in accordance with the provisions of Income
 Tax Act, 1961, on the Income for the period chargeable to tax.
 
 Provision for Deferred Tax is made for timing differences arising
 between the taxable incomes and accounting income computed using the
 tax rates and the laws that have been enacted or substantively enacted
 as of the balance sheet date. Deferred Tax assets in respect of
 unabsorbed depreciation and carry forward of losses are recognized if
 there is virtual certainty that there will be sufficient future taxable
 income available to realize such losses. Other deferred tax assets are
 recognized if there is reasonable certainty that there will be
 sufficient future taxable income available to realize such assets.
 
 1.11 Provisions, Contingent Liabilities and Contingent Assets
 
 Provisions are recognized only when there is a present obligation as a
 result of past events and when a reliable estimate of the amount of
 obligation can be made. Provisions are not discounted to its present
 value and are determined based on best estimate required to settle the
 obligation at the balance sheet date.  These are reviewed at each
 balance sheet date and adjusted to reflect the current best estimates.
 Contingent liability is disclosed for (i) Possible obligation which
 will be confirmed only by future events not wholly within the control
 of the Company or (ii) Present obligations arising from past events
 where it is not probable that an outflow of resources will be required
 to settle the obligation or a reliable estimate of the amount of the
 obligation cannot be made. Contingent assets are neither recognized nor
 disclosed in the financial statements.
 
 1.12 Segment reporting:
 
 a.  The generally accepted accounting principles used in the
 preparation of the financial statements are applied to record revenue
 and expenditure in individual segments.
 
 b.  Segment revenue and segment results include transfers between
 business segments.  Such transfers are accounted for at the agreed
 transaction value and such transfers are eliminated in the
 consolidation of the segments.
 
 c.  Expenses that are directly identifiable to segments are considered
 for determining the segment result. Expenses which relate to the
 company as a whole and are not allocable to segments are included under
 unallocated corporate expenses.
 
 d.  Segments assets and liabilities include those directly identifiable
 with the respective segments.  Unallocated corporate assets and
 liabilities represent the assets and liabilities that relate to the
 company as a whole and not allocable to any segment.
 
 1.13 Employee Stock Option Scheme
 
 In respect of stock options granted to the employees under the stock
 option schemes established, the Company determines the compensated cost
 based on the intrinsic value method and the compensation cost is
 amortised on a straight line basis over the vesting period.