i.  Basis of preparation of financial statements
 
 The Financial statements have been prepared to comply in all material
 respect with the mandatory Accounting Sta/idards notified by companies
 (Accounting Standards) rules, 2006 (as amended) & the relevant
 provisions of the companies act 1956. The financial statements have
 been prepared under the historical cost convention on an accrual basis
 in case of assets for which provisions for impairment is made and
 revaluation is carried out. The accounting policies have been
 consistently applied by the company & are consistent with those used in
 the previous year.
 
 ii.  Use of estimates
 
 The preparation of Financial Statements in conformity with the
 generally accepted accounting principles requires management to make
 estimates and assumptions that affect the reported amount of assets &
 liabilities & disclosures of contingent liabilities at the date of
 financial statements & the results of operations during the reporting
 period. Although these estimates are based upon managements best
 knowledge of current events & actions, actual results could differ from
 these estimates.
 
 iii.  Fixed assets
 
 Fixed Assets are stated at cost less accumulated depreciation &
 impairment losses (if any). Cost comprises the purchase price & any
 attributable cost of bringing the asset to its working conditions for
 its intended use. Borrowing cost relating to the acquisition of the
 fixed asset which takes substantial period of time to get ready for its
 intended use are also included to the extent they relate to the period
 till such assets are ready to be put to use.
 
 In respect of accounting periods commencing on or after 7th December,
 2006, exchange difference arising on reporting of the long-term foreign
 currency monetary items at rates different from those at which they
 were initially recorded during the period, or reported in the previous
 financial statements are added to or deducted from the cost of the
 asset and are depreciated over the balance life of the asset, if these
 monetary items pertain to the acquisition of a depreciable fixed asset.
 
 iv.  Expenditure During Construction Period
 
 a) The expenditure incurred for the project is accounted under the head
 preoperative expenditure and shall be capitalized on completion of the
 project.
 
 b) Advances paid, towards acquisition of the fixed assets which have
 not been installed or put to use and the cost of the assets not put to
 use before the period end are disclosed under capital work-
 in-progress.
 
 v.  Depreciation & Amortization
 
 Depreciation on Fixed Assets is provided on Straight Line Method as per
 the useful lives of the assets estimated by the management or at the
 rates specified in Schedule XIV to the Companies Act, 1956, whichever
 is higher except for goodwill which will be amortised over a period of
 five years after the commencement of commercial production of the power
 project. Depreciation on additions is charged proportionately from the
 date of acquisition. Assets individually costing less than or equal to
 rupees Five thousand has been fully depreciated in the year of
 purchase.
 
 The depreciation has been provided on the following basis:
 
 vi.  Impairment of Assets
 
 The carrying amounts of assets are reviewed at each balance sheet date
 if there is any indication of impairment based on internal/ external
 factors. An impairment loss is recognized wherever the carrying amount
 of an asset exceeds its recoverable amount. The recoverable amount is
 the greater of the assets net selling price & value in use. In
 assessing value in use, the estimated future cash flows are discounted
 to their present value at the weighted average cost of capital.
 
 After impairment, depreciation is provided on the revised carrying
 amount of the asset over its remaining useful life.
 
 A previously recognized impairment loss is increased or reversed
 depending upon changes in circumstances. However the carrying value
 after reversal is not increased beyond the carrying value that would
 have prevailed by charging usual depreciation if there was no
 impairment.
 
 vii. Investments
 
 Investments that are readily realizable & intended to be held for not
 more than a year are classified as current investment. All other
 investments are classified as long term investments. Current
 investments are carried at lower of cost & fair value determined on an
 individual investment basis. Long term investments are carried at cost.
 However, provision for diminution in value is made to recognize the
 decline other than te-.iporary in the value of investments.
 
 viii. Foreign Currency transactions
 
 Foreign Currency transactions are recorded at the exchange rate
 prevailing on the date of transaction.  Foreign currency denominated
 asset and liabilities (monetary items) are translated into reporting
 currency at the exchange rates prevailing on the Balance Sheet date.
 Exchange difference arising on settlement of foreign currency
 transactions or restatement of foreign currency denominated assets and
 liabilities (monetary items) are capitalized if related to the project
 or recognized in the profit and loss account.
 
 ix.  Employee benefits
 
 Employee benefits such as salaries, allowances, non-monetary benefits
 which fall due for payment within a period of twelve months after
 rendering service, are charged as expense to the profit and loss
 account in the period in which the service is rendered.
 
 Employee benefits under defined benefit plans, such as leave encashment
 and gratuity which fall due for payment after a period of 12 months
 from rendering serviced or after completion of employment, are measured
 by the projected unit credit method, on the basis of actuarial
 valuation carried out by the third party actuaries at each balance
 sheet date. The Companies obligations recognized in the Balance sheet
 represents the present value of obligations as reduced by the fair
 value of plan assets, where applicable.
 
 Actuarial gains and losses are recognized immediately in the profit and
 loss account.
 
 x.  Borrowing Cost
 
 Borrowing cost which are directly attributable to the acquisition,
 construction or production of an asset that necessarily takes a
 substantial period of time to get ready for its intended use or sale
 are capitalized as part of the respective asset. All other borrowing
 cost are expensed in the period they occur. Borrowing cost consists of
 interest & other cost that an entity incurs in connection with the
 borrowing of funds. In determining the amount of borrowing cost
 eligible for capitalization during a period, any income earned on the
 temporary investments of those borrowings is deducted from the
 borrowing costs incurred.
 
 xi.  Leases
 
 Leases where the lessor effectively retains substantially all the risks
 and benefits of ownership of the leased item are classified as
 operating lease. Operating lease payments are recognized as an expense
 in the Profit and Loss account on a straight-line basis over the lease
 term.
 
 xii. Earning Per Share
 
 Basic earnings per share are calculated by dividing the net profit or
 loss for the period attributable to equity shareholders (after
 deducting preference dividends and attributable taxes) by the weighted
 average number of equity shares outstanding during the period. The
 weighted average number of equity shares outstanding during the period
 is adjusted for events of bonus issue; bonus element in a rights issue
 to existing shareholders; share split; and reverse share split
 (consolidation of shares).  Diluted EPS is computed by dividing the net
 profit or loss for the year by the weighted average number of equity
 shares outstanding during the year as adjusted for the effects of all
 dilutive potential equity shares, except where the results are
 anti-dilutive.
 
 xiii. Taxation :
 
 (i) Deferred tax is measured based on the tax rates and the tax laws
 enacted or substantively enacted at the balance sheet date. Deferred
 tax assets and deferred tax liabilities are offset, if a legally
 enforceable right exists to set off current tax assets against current
 tax liabilities and the deferred tax assets and deferred tax
 liabilities relate to the taxes on income levied by same governing
 taxation laws. Deferred tax assets are recognised only to the extent
 that there is reasonable certainty that sufficient future taxable
 income will be available against which such deferred tax assets can be
 realised. In situations where the company has unabsorbed depreciation
 or carry forward tax losses, all deferred tax assets are recognised
 only if there is virtual certainty supported by convincing evidence
 that they can be realised against future taxable profits.
 
 (ii) At each balance sheet date the Company re-assesses unrecognised
 deferred tax assets.  It recognizes, unrecognised deferred tax assets
 to the extent that it has become reasonably certain or virtually
 certain, as the case may be that sufficient future taxable income will
 be available against which such deferred tax assets can be realised.
 The carrying amount of deferred tax assets are reviewed at each balance
 sheet date. The company writes-down the carrying amount of a deferred
 tax asset to the extent that it is no longer reasonably certain or
 virtually certain, as the case may be, that sufficient future taxable
 income will be available against which deferred tax asset can be
 realised. Any such write-down is reversed to the extent that it becomes
 reasonably certain or virtually certain, as the case may be, that
 sufficient future taxable income will be available
 
 xiv. Provisions
 
 A provision is recognized when the Company has a present obligation as
 a resultof past event; it is probable that an outflow of resources will
 be required to settle the obligation, in respect of which a reliable
 estimate 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.
 
 xv. Contingent Liabilities
 
 Contingent Liabilities, if any, are disclosed in the Notes on Accounts.
 Provision is made in the accounts in respect of those contingencies
 which are likely to materialize into liabilities after the year end
 till the approval of the accounts by the Board of Directors and which
 have material effect on the position stated in the Balance Sheet.
 
 xvi. Cash Flow Statement
 
 The cash flow statement is prepared by indirect method set out in
 accounting standard 3 on Cash Flow Statement and presents the cash
 flow statement by operating investing and financing activities of the
 Company. Cash and cash equivalents presented in the cash flow statement
 consists of cash on hand and balance in current accounts.