1.  Method of Accounting
 
 The Company follows mercantile system of accounting and recognizes
 income and expenditure on an accrual basis. Financial Statements are
 prepared under historical cost convention, in accordance with the
 Generally Accepted Accounting Principles in India (GAAP) and comply in
 all material aspects, with mandatory accounting standards as notified
 by the Companies (Accounting Standards) Rules, 2006, relevant
 provisions of the Companies Act and statements issued by the Institute
 of Chartered Accountants of India. The significant accounting policies
 followed by the Company are set out below. Management has made certain
 estimates and assumptions in conformity with the GAAP in the
 preparation of these financial statements, which are reflected in the
 preparation of these financial statements. Difference between the
 actual results and estimates are recognised in the year in which the
 results are known.
 
 2.  Fixed Assets
 
 Fixed assets are carried at cost of acquisition less accumulated
 depreciation. The Cost includes all expenses related to acquisition and
 installation of such assets.
 
 3.  Depreciation
 
 Depreciation for the year is provided on Straight Line Method at the
 rates specified in Schedule XIV to the Companies Act, 1956 on pro-rata
 basis. In case of fixed assets given on lease, the cost of fixed assets
 is written off over the period of lease. Lease Adjustment Account
 represents the difference between the cost of assets required to be
 written off during the particular year and the amount written off by
 way of depreciation thereon.
 
 4.  Investments
 
 Investments are stated at cost less provision for diminution in the
 value of investment of permanent nature, if any. Unquoted investments
 are valued on the basis of book value as per audited balance sheet of
 the investee company.
 
 Investment in shares of the Subsidiaries registered outside India, are
 stated at cost by converting at the rate of exchange prevailing at the
 time of setting up the Subsidiary and date of remittance of funds in
 case of additional investment.
 
 5.  Revenue Recognition
 
 a) Income from sale of traded goods is recognized on transfer of all
 significant risk and ownership of the goods on to the customers, which
 is generally on dispatch of goods.
 
 b) Income from sale of electricity is recognized as per the terms and
 conditions of the agreement with the Customer.
 
 6.  Retirement Benefits
 
 Provision for gratuity is not made since no employee is eligible for
 the same.
 
 7.  Impairment of Fixed Assets
 
 Wherever events or changes in circumstances indicate that the carrying
 value of fixed assets may be impaired, such assets are subject to a
 test of recoverability, based on discounted cash flows expected from
 use or disposal thereof. If the assets are impaired, loss is recognized
 
 8.  Borrowing Cost
 
 Borrowing costs directly attributable to acquisition and construction
 of capital assets are capitalized till the asset is ready for use. All
 other borrowing costs are recognised as expenditure in the period when
 they were incurred.
 
 9.  Tax on Income
 
 a) Tax expense comprises both current and deferred tax at the
 applicable enacted/substantively enacted rates. Current tax represents
 the amount of income tax payable in respect of the taxable income for
 the reporting period.
 
 b) Deferred tax represents the effect of timing differences between
 taxable income and accounting income for the reporting period that
 originate in one period and are capable of reversal in one or more
 subsequent periods. Deferred tax assets are recognized only to the
 extent there is reasonable certainty of realization in future. Such
 assets are reviewed as at each Balance Sheet date to reassess
 realization.
 
 10.  Provisions & Contingent Liabilities
 
 Provisions are recognised when the company has a legal and constructive
 present obligation as a result of a past event, for which it is
 probable that outflow of resources will be required and a reliable
 estimate can be made of the amount of the obligation. Contingent
 liabilities are disclosed when there is a possible obligation that may
 result in an outflow of resources. Contingent assets are neither
 recognised nor disclosed.
 
 11.  Foreign Exchange Transactions
 
 Transactions in foreign currency are recorded at exchange rates
 prevailing on the dates of respective transactions. The difference in
 translation and realized gains and losses on foreign exchange
 transactions are recognized in the Profit and Loss Account.
 Premium/Discount in respect of Forward Contracts is accounted over the
 period of Contracts.
 
 12.  Carbon Credit Income
 
 Carbon Credit Income is recognized as and when realised.
 
 13.  Inventories
 
 Inventory is valued at cost or net realizable value whichever is lower.