Background
 
 Suryachakra Power Corporation Limited (the Company) was incorporated
 on 28 February 1995, as a Public Limited Company. The Company was
 converted into a Private Limited Company with effect from 9 August
 2000. Pursuant to this, the name of the Company was changed to
 Suryachakra Power Corporation Private Limited. The Company was re-
 converted into a public limited company with effect from 8 September
 2005. Pursuant to this, the name of the Company was changed to
 Suryachakra Power Corporation Limited.
 
 The Company is engaged in the generation and sale of electricity. The
 commercial operation started with effect from 1 April 2003. The Company
 is listed in Bombay Stock Exchange since 23 July 2007. The Company is
 also engaged in business of trading of coal from the year 31 March
 2009.
 
 1.  Revenue from A&N Administration
 
 a) The Company''s revenue from sale of electricity is based on the Power
 Purchase agreement (PPA) entered into the Andaman and Nicobar (A & N)
 Administration. The PPA is for a period of 15 years and contains a set
 of pre-defined formulae for calculation of the revenue to be billed on
 a monthly basis. Such billings as per terms of the PPA include a fixed
 charge payment, a variable charge payment, incentive payment, foreign
 exchange adjustment and change-in-law adjustment.
 
 b) The Company, for the purpose of determining the fixed charge monthly
 billings, invoices the A & N Administration based on the capital cost
 as envisaged in the PPA. Pending final confirmation of actual capital
 expenditure, no adjustment is made to the revenue. Such adjustments, if
 any will be made in the period in which the amount becomes determinable
 and is confirmed by the A & N Administration.
 
 c) Revenues for the year ended 31 March 2011 include an amount of Rs.
 59,494,972 (Previous year: Rs. 47,835,455) billed by the company as
 variable charge payment under the PPA, which has been rejected/
 withheld by the A & N Administration on the grounds of the technical
 interpretation of the formulae for computation of such charges. The
 Company also has receivables amounting to Rs. 85,904,780 as at 31 March
 2011 (Previous year: Rs. 118,640,315) on account of such rejections/
 withheld. Further, the Company has accrued interest on such unpaid
 invoices amounting to Rs. 43,721,965 for the year ended 31 March 2011
 (Previous year: Rs. 28,503,384).  Total Interest accrued on such
 disagreements and included in the total receivables as at 31 March 2011
 amounts to Rs. 127,574,329 (Previous year: Rs. 83,852,364). The Company
 has during the year ended 31 March 2011 received an amount of Rs.
 92,230,508 towards such receivables as mentioned above.
 
 d) The Company believes that the amounts billed including interest
 thereon are recoverable based on the interpretation that can be
 inferred from the formulae contained in the PPA.
 
 2.  Deferred taxes
 
 The Company had started claiming deduction under Section 80-IA of the
 Income Tax Act, 1961 from the year ended 31March 2011. Based on the
 assessment of the deferred tax as on 31 March 2011, the timing
 differences arising in the current year will reverse within the tax
 holiday period. Accordingly, no deferred tax has been recognised in the
 books of accounts of the Company as on 31 March 2011.
 
 3.  Related parties
 
 (a) The related parties where control exists are subsidiaries and step
 down subsidiaries. There are no other parties over which the company
 has control.
 
 (b) Related parties where control exists with whom transactions have
 taken place during the year are follows:
 
 (i) Subsidiary
 
 · Suryachakra Global Enviro Power Limited
 
 · Suryachakra Energy (Chattisgarh) Private Limited (from 05 March 2011)
 
 · Suryachakra Global Ventures Limited (from 26 January 2011)
 
 · Suryachakra Power Venture Private Limited (for the period 16
 September 2010 to 21 March 2011)
 
 (ii) Step down subsidiaries
 
 · South Asian Agro Industries Limited (Subsidiary till 20 January 2010)
 
 · MSM Energy Limited (Subsidiary till 20 January 2010)
 
 · Sri Panchajanya Power Private Limited (Subsidiary till 20 January
 2010)
 
 (iii) Key Management Personnel (KMP) represented on the Board of
 Directors
 
 · Dr. S. M. Manepalli, Managing Director
 
 (iv) Enterprises over which Key Managerial Personnel has significant
 influence (Significant interest entities)
 
 · Suryachakra Thermal Energy (Andhra) Private Limited
 
 · Suryachakra Thermal (Madhya Pradesh) Private Limited
 
 · Suryachakra Power Venture Private Limited
 
 · Suryachakra Energy (Chattisgarh) Private Limited (till 04 March 2011)
 
 (v) Non-executive on the Board of Directors
 
 · Mr. P. K.. Bhattarcharjee
 
 · Mr. Mahesh Chand
 
 · Mr. K. Satyanarayana
 
 · Mr. V. S. Murthy
 
 · Commodore K. V. Subramaniyam, YSM (Retd.)
 
 · Mr. M. Seshavatharam (Son of Managing Director)
 
 · Mr. A Ramesh Kumar (from 10 August 2010)
 
 · Mr. K. B. Trehan (from 11 November 2010)
 
 · Mr. P. Visweswara Rao, IAS (Retd.) (from 22 November 2010)
 
 Schedule 20. Notes to the accounts (Continued)
 
 The managerial personnel are covered by the Company''s gratuity policy
 and are eligible for leave encashment along with other employees of the
 Company. The proportionate amount of gratuity and leave encashment cost
 pertaining to the managerial personnel has not been included in the
 aforementioned disclosures as these are not determined on an individual
 basis.
 
 Discount rate: The discount rate is based on the prevailing market
 yields of Indian government securities as at the balance sheet date for
 the estimated term of the obligations.
 
 Expected rate of return on plan assets: This is based on the
 expectation of the average long term rate of return expected on
 investments of the fund during the estimated term of the obligations.
 
 Salary escalation rate: The estimates of future salary increases
 considered takes into account the inflation, seniority, promotion and
 other relevant factors.
 
 4.  Segment reporting
 
 The Company''s business is organised and management views the
 performance based on the business segments as mentioned below:
 
 · Electricity sale: This division of the Company is engaged in the
 generation and sale of electricity.
 
 · Coal trading: This division of the Company is engaged in the trading
 of coal.
 
 Since the business operations of the Company are primarily concentrated
 in India, the Company is considered to operate only in one geographical 
 segment.
 
 Segment policies
 
 The accounting policies consistently used in the preparation of the
 financial statements are also applied to record revenue and expenditure
 in individual segments.
 
 Revenue and direct expenses in relation to segments are categorised
 based on items that are individually identifiable to that segment.
 Certain expenses are not specifically allocable to individual segments
 and pertain to the entity as a whole and are disclosed as unallocated 
 expenses.
 
 Assets and liabilities are either specifically identifiable with
 individual segments or have been allocated to segment on a systematic
 basis. Assets that pertain to the entity as a whole such as income tax
 balances have been disclosed as unallocated assets. Liabilities other
 than loan balances and income tax balances have been identified against
 each segment or have been allocated on a reasonable basis.
 
 5.  Discontinuing operations
 
 The Company''s Board of Directors at their meeting held on 29 October
 2009 approved a definitive plan wherein, its coal trading business will
 be transferred to a separate legal entity to enable to focus on the
 core business of power generation, subject to the receipt of all
 regulatory and other approvals. The execution of the above plan is in
 process and expected to be completed by October 2011. In accordance
 with AS 24 (Discontinuing operations), as the initial event has
 occurred during the year ended 31 March 2010, the coal trading business
 (representing coal trading segment) would therefore qualify as a
 discontinuing operation under the above accounting standard.
 
 6. The Ministry of Micro, Small and Medium Enterprises has issued an
 Office Memorandum dated 26 August 2008 which recommends that the Micro
 and Small Enterprises should mention in their correspondence with its
 customers the Entrepreneurs Memorandum Number as allotted after filing
 of the Memorandum. Accordingly, the disclosure in respect of the
 amounts payable to such enterprises as at 31 March 2011 has been made
 in the financial statements based on information received and available
 with the Company. Further in the view of the management, the impact of
 interest, if any, that may be payable in accordance with the provisions
 of the Micro, Small and Medium Enterprises Development Act, 2006 is not
 expected to be material. The Company has not received any claim for
 interest from any supplier under the said Act.
 
 7.  Exceptional items, net
 
 (a) The Company has restructured its investments in subsidiaries and
 accordingly transferred its investment in subsidiaries MSM Energy
 Limited, South Asian Agro Industries Limited and Sri Panchajanya Power
 Private Limited having a total carrying value of Rs. 500,683,000 to its
 wholly owned subsidiary Suryachakra Global Enviro Power Limited
 (Formerly Lahari Power and Steels Limited) for total consideration of
 Rs. 569,374,243 to be settled in the form of additional share to be
 issued in Suryachakra Global Enviro Power Limited resulting in a profit
 of Rs. 68,691,243 which has been disclosed as an exceptional item in
 the year ended 31 March 2010.  Further, the Company has been issued
 shares in Suryachakra Global Enviro Power Limited of Rs. 143,402,645,
 representing the share application money and un-secured loan in all the
 above mentioned subsidiaries. Climate Change Investment I I S.A. SICAR
 (CCI) has invested Rs. 400,000,000 and was allotted a 22.01% stake in
 Suryachakra Global Enviro Power Limited.
 
 (b) In March 2006, one of the DG Set with a capacity of 5 MW output had
 suffered major damages. The Company made a claim of Rs. 99,141,696 with
 the insurance authorities (net of allowances of Rs.5,000,000). Pending
 final assessment of the claim, the Company had received interim amounts
 totaling to Rs.54,957,102 from the insurance Company including
 Rs.11,829,899 during the year ended 31 March 2010. The insurance
 company vide its letter dated 11 May 2010 has confirmed that all the
 amounts paid till date are final and no claim would be payable.
 Accordingly, the balance amount of claims receivable amounting to Rs.
 44,184,594 has been written off during the year which has been
 disclosed as an exceptional item in the year ended 31 March 2010.
 
 8.  During the year ended 31 March 2011, the Company has transferred
 the coal based thermal power project under development in Chhattisgarh
 to Suryachakra Energy (Chhattisgarh) Private Limited (SECPL) for a
 consideration of Rs.356,400,000 (including Rs. 39,785,160 incurred
 during the year), being the carrying value of the assets in the said
 power project against equity shares in SECPL.
 
 9.  During the year ended 31 March 2010, the unamortised expenses
 related to the Initial Public Offer of the Company amounting is
 Rs.39,474,865 was adjusted to the Securities Premium account. These
 were carried forward in earlier years as Miscellaneous Expenditure and
 amortised over a period of 5 years. Had the Company followed amortising
 these over a period of 5 years, the profit for the year ended 31 March
 2010 and the accumulated profits as at 31 March 2010 would have been
 lower by Rs.10,765,872.
 
 10.  The Board of directors in the meeting dated 22 November 2010,
 approved the Scheme of Amalgamation (‘the scheme'') of Suryachakra
 Energy & Infrastructure Limited (SEIPL), a Company belonging to the
 promoter group of the Company.  The Company has not filed the Scheme
 with the honorable High Court for necessary approvals as the Company is
 contemplating certain changes in the Scheme.
 
 11.  Subsequent to the year end, the Company has issued 3,650,000
 Global Depository Receipts (GDRs) at USD 6.3 per GDR. These GDRs have
 been listed in the Euro MTF Market on 28 April 2011. The Company has
 listed the underlying 73,000,000 equity shares in Bombay Stock Exchange
 on 19 May 2011.
 
 12.  Previous year figures
 
 Previous years'' figures have been regrouped / reclassified wherever
 necessary, to conform to current years'' classification.