Mar 31, 2015
2.1 Basis of accounting and preparation of financial statements
The financial statements ofthe Company have been prepared in accordance
with the Generally Accepted Accounting Principles in India (Indian
GAAP) including Accounting Standards specified under section 133 of the
Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules,
2014 and the relevant provisions ofthe Companies Act, 2013. The
financial statements have been prepared on accrual basis underthe
historical cost convention. The accounting policies adopted in the
preparation of the financial statements are consistent with those
followed in the previous year.
2.2 Use of estimates
The preparation of the financial statements in conformity with Indian
GAAP requires the Management to make estimates and assumptions
considered in the reported amounts of assets and liabilities (including
contingent liabilities) and the reported income and expenses during the
year. The Management believes that the estimates used in preparation of
the financial statements are prudent and reasonable. Future results
could differ due to these estimates and the differences between the
actual results and the estimates are recognised in the periods in which
the results are known /materialise.
2.3 Cash and cash equivalents (for purposes of Cash Flow Statement)
Cash comprises cash on hand and demand deposits with banks. Cash
equivalents are short-term balances highly liquid investments that are
readily convertible into known amounts of cash and which are subject to
insignificant riskof changes in value.
2.4 Cash flow statement
Cash flows are reported using the indirect method, whereby profit /
(loss) before extraordinary items and tax is adjusted for the effects
of transactions of non-cash nature and any deferrals or accruals of
past or future cash receipts or payments. 'The cash flows from
operating, investing and financing activities ofthe Company are
segregated based on the available information.
2.5 Depreciation and amortisation
Depreciation/amortisation on fixed assets, including revaluation cost
and the capitalisation of capital expenditure, are charged over the
period ofthe remaining useful life of the asset, arrived at after
considering the asset life as prescribed under Schedule-ll to the
Companies Act, 2013, adopting straight line method of
depreciation/amortisation.
2.6 Revenue recognition-Income from Financing Activity
(i) Interest income is recognised in the Profit and Loss Account as it
accrues except in the case of non-performing assets where it is
recognised upon realization as per the prudential norms of the Reserve
Bank of India. Accrual of income is also suspended on certain other
loans where in the opinion ofthe management, significant uncertainties
exist as at the year end.
All otherfees are recognised upfront on their becoming due.
2.7 Revenue recognition-Income from Non-Financing Activity
(i) Power income is recognised on accrual basis as they are earned or
incurred.
(ii) Dividend income is accounted for when the right to receive it is
established.
(iii) Income from otherfinancing activities and services is recognised
on accrual basis.
2.8 Tangible fixed assets
Fixed assets are stated at historical cost less accumulated
depreciation.
2.9 Investments
Long-term investments, are carried individually at cost less provision
for diminution, other than temporary, in the value of such investments.
Current investments are carried individually, at the lowerof cost and
fair value.
2.10 Employee benefits
The Company has not formulated any policy for employee benefits,
including Provident Fund, ESI or Gratuity.
2.11 Borrowing costs
Borrowing costs include interest, amortisation of ancillary costs
incurred and exchange differences arising from foreign currency
borrowings to the extent they are regarded as an adjustment to the
interest cost. Costs in connection with the borrowing of funds to the
extent not directly related to the acquisition of qualifying assets are
charged to the Statement of Profit and Loss over the tenure of the
loan.
2.12 Segment Reporting
The company is operating in two business segment viz., Non-Banking
Finance and Power Generation.
Details of Segment-wise Assets and Profit & Loss Statement can be
reffered in Note No. 21.7.
2.13 Earnings Per Share
Basic earnings per share is computed by dividing the profit / (loss)
after tax (including the post tax effect of extraordinary items, if
any) by the weighted average number of equity shares outstanding during
the year. Diluted earnings per share is computed by dividing the profit
/ (loss) after tax (including the post tax effect of extraordinary
items, if any) as adjusted for dividend, interest and other charges to
expense or income relating to the dilutive potential equity shares, by
the weighted average number of equity shares considered for deriving
basic earnings per share and the weighted average number of equity
shares which could have been issued on the conversion of all dilutive
potential equity shares.
2.14 Taxes on income
"Current tax is the amount of tax payable on the taxable income for the
year as determined in accordance with the provisions of the Income
TaxAct, 1961. Minimum Alternate Tax (MAT) paid in accordance with the
tax laws, which gives future economic benefits in the form of
adjustment to future income tax liability, is considered as an asset if
there is convincing evidence that the Company will pay normal income
tax. Accordingly, MAT is recognised as an asset in the Balance Sheet
when it is probable that future economic benefit associated with it
will flow to the Company. Deferred tax is recognised on timing
differences, being the differences between the taxable income and the
accounting income that originate in one period and are capable of
reversal in one or more subsequent periods. Deferred tax is measured
using the tax rates and the tax laws enacted or substantially enacted
as at the reporting date. Deferred tax liabilities are recognised for
all timing differences.
2.15 Impairmentofassets
The carrying values of assets are reviewed for impairment at each
balance sheet date to ascertain impairment based on internal / external
factors. An impairment loss is recognised when the carrying amount of
an asset exceeds its recoverable amount. The recoverale amount is
higher of the netsellilng price of the assets and their value in use.
2.16 Provisions
Provisions are recognised when the Company has present legal or
constructive obligations, 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.
Mar 31, 2014
1.1 Basis of accounting and preparation of financial statements
The financial statements of the Company have been prepared in
accordance with the Generally Accepted Accounting Principles in India
(Indian GAAP) to comply with the Accounting Standards notified under
the Companies (Accounting Standards) Rules, 2006 (as amended) and the
relevant provisions of the Companies Act, 1956. The financial
statements have been prepared on accrual basis under the historical
cost convention except for categories of fixed assets acquired before 1
April, 200X, that are carried at revalued amounts.
1.2 Use of estimates
The preparation of the financial statements in conformity with Indian
GAAP requires the Management to make estimates and assumptions
considered in the reported amounts of assets and liabilities (including
contingent liabilities) and the reported income and expenses during the
year. The Management believes that the estimates used in preparation of
the financial statements are prudent and reasonable. Future results
could differ due to these estimates and the differences between the
actual results and the estimates are recognised in the periods in which
the results are known /materialise.
1.3 Inventories
Inventories include, Energy generated from Wind Mills and not sold.
1.4 Cash and cash equivalents (for purposes of Cash Flow Statement)
Cash comprises cash on hand and demand deposits with banks. Cash
equivalents are short-term balances highly liquid investments that are
readily convertible into known amounts of cash and which are subject to
insignificant risk of changes in value.
1.5 Cash flow statement
The cash flows from operating, investing and financing activities of
the Company are segregated based on the available information.
1.6 Depreciation and amortisation
Depreciation is provided on the straight-line method as per the rates
prescribed in Schedule XIV to the Companies Act, 1956 except in case of
windmills where Depreciation is provided at equilant to rates
prescribed under Income Tax Act, treating the rates precribed under
schedule XIV to the Companies Act, 1956 as minimum.
1.7 Revenue recognition
Power income is recognised on accrual basis as they are earned or
incurred.
Interest Income is recognised on the basis of circular issued by RBI
for "Non-Banking Financial (Non -Deposit Accepting or Holding)
Companies Prudential Norms (Reserve Bank) Directions, 2007" Income from
other financing activities and services is recognised on accrual basis.
1.8 Other income
Interest income is accounted on accrual basis. Dividend income is
accounted for when the right to receive it is established.
1.9 Tangible fixed assets
Fixed assets are stated at historical cost less accumulated
depreciation.
1.10 Investments
Long-term investments, are carried individually at cost less provision
for diminution, other than temporary, in the value of such investments.
Current investments are carried individually, at the lower of cost and
fair value.
1.11 Employee benefits
The Company has not formulated any policy for employee benefits,
including Provident Fund, ESI or Gratuity.
The Company is in the position to meet Employee Liability when it
becomes due.
1.12 Borrowing costs
Borrowing costs include interest, amortisation of ancillary costs
incurred and exchange differences arising from foreign currency
borrowings to the extent they are regarded as an adjustment to the
interest cost. Costs in connection with the borrowing of funds to the
extent not directly related to the acquisition of qualifying assets are
charged to the Statement of Profit and Loss over the tenure of the
loan.
1.13 Segment Reporting
The company is operating in two business segment viz., Non-Banking
Finance and Power Generation.
Details of Segment-wise Assets and Profit & Loss Statement can be
reffered in Note No. 21.7.
1.14 Earnings Per Share
Basic earnings per share is computed by dividing the profit / (loss)
after tax (including the post tax effect of extraordinary items, if
any) by the weighted average number of equity shares outstanding during
the year. Diluted earnings per share is computed by dividing the profit
/ (loss) after tax (including the post tax effect of extraordinary
items, if any) as adjusted for dividend, interest and other charges to
expense or income relating to the dilutive potential equity shares, by
the weighted average number of equity shares considered for deriving
basic earnings per share and the weighted average number of equity
shares which could have been issued on the conversion of all dilutive
potential equity shares.
1.15 Taxes on income
"Current tax is the amount of tax payable on the taxable income for the
year as determined in accordance with the provisions of the Income Tax
Act, 1961. Minimum Alternate Tax(MAT) paid in accordance with the tax
laws, which gives future economic benefits in the form of adjustment to
future income tax liability, is considered as an asset if there is
convincing evidence that the Company will pay normal income tax.
Accordingly, MAT is recognised as an asset in the Balance Sheet when it
is probable that future economic benefit associated with it will flow
to the Company. Deferred tax is recognised on timing differences, being
the differences between the taxable income and the accounting income
that originate in one period and are capable of reversal in one or more
subsequent periods. Deferred tax is measured using the tax rates and
the tax laws enacted or substantially enacted as at the reporting date.
Deferred tax liabilities are recognised for all timing differences."
1.16 Impairment of assets
The carrying values of assets are reviewed for impairment at each
balance sheet date to ascertain impairment based on internal / external
factors.
An impairment loss is recognised when the carrying amount of an asset
exceeds its recoverable amount. The recoverable amount is higher of the
net selling price of the assets and their value in use.
1.17 Provisions
Provisions are recognised when the Company has present legal or
constructive obligations, 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.
1.18 Provisioning requirement as per circular issued by RBI for
"NonBanking Financial (Non -Deposit Accepting or Holding) Companies
Prudential Norms (Reserve Bank) Directions, 2007" The Circular states
that Provision has to be made for Non-Performing Asset on its value if
it satisfy certain criteria. The Criteria mentioned in the Circular is
reproduced here:
(1) The provisioning requirement in respect of loans, advances and
other credit facilities including bills purchased and discounted shall
be as under:
(i) Loss Assets
The entire asset shall be written off. If the assets are permitted to
remain in the books for any reason, 100% of the outstanding should be
provided for;
(ii) Doubtful Assets
(a) 100% provision to the extent to which the advance is not covered by
the realisable value of the security to which the mortgage guarantee
company has a valid recourse shall be made. The realisable value is to
be estimated on a realistic basis;
(b) In addition to item (a) above, depending upon the period for which
the asset has remained doubtful, provision to the extent of 20% to 50%
of the secured portion (i.e. estimated realisable value of the
outstanding) shall be made.
(iii) Sub-standard assets
Ageneral provision of 10% of total outstanding shall be made.
Mar 31, 2013
1.1 Basis of accounting and preparation of financial statements
The financial statements of the Company have been prepared in
accordance with the Generally disclosed the Sale Consideration as
Income and an amount equal to written down value of asset sold
1.2 The preparation of the financial statements in conformity with
Indian GAAP requires the Management
1.3 Inventories
Inventories include, Energy generated from Wind Mills and not sold.
1.4 Cash and cash equivalents (for purposes of Cash Flow Statement)
The cash flows from operating, investing and financing activities of
the Company are segregated
1.6 Depreciation the life of the assets has been assessed as under: 9 9
Plant & Machinery - Depreciation has been provided based on the
expected useful life of the assets for
Plants Machine^ has been provided for the assets acquired during the
earlier years at
1.7 Power income is recognised on accrual basis as they are earned or
incurred.
Income from otherfinancing activities and services is recognised on
accrual basis.
1.8 Other income
Interest income is accounted on accrual basis. Dividend income is
accounted for when the right to Other income received from sale of windmill.
1.9 Tangible fixed assets
Fixed assets are stated at historical cost less accumulated
depreciation.
1.10 Investments
1.11 EmpSyeebTneflte''
The Company has not formulated any policy for employee benefits,
including Provident Fund, ESI or
Thecompany is in the position to meet Employee Liability when it
becomes due.
1.12 Borrowing costs
Borrowing costs include interest, amortisation of ancillary costs
incurred and exchange differences acquisition of qualifying assets are
charged to the Statement of Profit and Loss over the tenure of the
1.13 Segment Reporting
The company is operating in two business segment viz., Non-Banking
Finance and Power
DeSfSegment-wise Assets and Profit & Loss Statement can be reffered in
Note No. 21.7.
1.14 Earnings PerShare
1.15 TaSonYnTome
Current tax is the ameunt ef tax payable on the taxable income for the
year as determined in Pobable that future economic benefit associated
with it will flow to the Company Deferred tax is SeSdak
1.16 Impairment of assets
Amount of an asset exceeds its recoverable amount The recoverale amount
is higher of thenet sellilngpriceoftheassetsandtheirvalueinuse. 9
1.17 Provisions
settletheebligation and a reliable estimate can be madeforthe amountef
theobligation.
1.18 Provisioning requirement as per circular issued by RBI for
"Non-Banking Financial (Non - Deposit Accepting or Holding) Companies
Prudential Norms (Reserve Bank) Directions, 2007"
The Circular states that Provision has to be made for Non-Performing
Asset on its value if it satisify certain criteria. The Criteria
mentioned in the Circular is reproduced here:
(1) The provisioning requirement in respect of loans, advances and
other credit facilities including bills purchased and discounted shall
be as under:
(i) Loss Assets:
The entire asset shall be written off. If the assets are permitted to
remain in the books for any reason, 100% of the outstanding should be
provided for;
(ii) DoubtfulAssets:
(a) 100% provision to the extent to which the advance is not covered by
the realisable value of the security to which the mortgage guarantee
company has a valid recourse shall be made. The realisable value is to
be estimated on a realistic basis;
(b) In addition to item (a) above, depending upon the period for which
the asset has remained doubtful, provision to the extent of 20% to 50%
of the secured portion (i.e. estimated realisable value of the
outstanding) shall be made.
(ill) Sub-standard assets:
Ageneral provision of 10% of total outstanding shall be made.
The Company has followed the above said prudential norms except in the
following cases. Details of such asset along with the Auditor''s
recommendation are given below:
Mar 31, 2012
1.1 Basis of accounting and preparation of financial statements
The financial statements of the Company have been prepared in
accordance with the Generally Accepted Accounting Principles in India
(Indian GAAP) to comply with the Accounting Standards notified under
the Companies (Accounting Standards) Rules, 2006 (as amended) and the
relevant provisions of the Companies Act, 1956. The financial
statements have been prepared on accrual basis under the historical
cost convention. The accounting policies adopted in the preparation of
the financial statements are consistent with those followed in the
previous year.
1.2 Use of estimates
The preparation of the financial statements in conformity with Indian
GAAP requires the Management to make estimates and assumptions
considered in the reported amounts of assets and liabilities (including
contingent liabilities) and the reported income and expenses during the
year. The Management believes that the estimates used in preparation of
the financial statements are prudent and reasonable. Future results
could differ due to these estimates and the differences between the
actual results and the estimates are recognised in the periods in which
the results are known/materialise.
1.3 Inventories
Inventories represent, Energy generated from Wind Mills and not sold.
1.4 Cash and cash equivalents (for purposes of Cash Flow Statement)
Cash comprises cash on hand and demand deposits with banks.
1.5 Cash flow statement
The cash flows from operating, investing and financing activities of
the Company are segregated based on the available information.
1.6 Depreciation and amortisation
Depreciation has been provided on the straight-line method as per the
rates prescribed in Schedule XIV to the Companies Act, 1956 except in
respect of the following categories of assets, in whose case the life
of the assets has been assessed as under:
Plant & Machinery - Depreciation has been provided based on the
expected useful life of the assets forthe assets added during the year.
Plant & Machinery - Depreciation has been provided for the assets
acquired during the earlier years at the rates prescribed in Schedule
XIV.
The Company has provided depreciation as permitted under Income Tax
Act, 1961 on wind mills investments for FY 11-12. Accordingly the
current year's depreciation includes Rs. 75,562,500/- charged on such
wind mills.
1.7 Revenue recognition
Power income is recognised on accrual basis as they are earned or
incurred.
Income from otherfinancing activities and services is recognised on
accrual basis.
1.8 Other income
Interest income is accounted on accrual basis. Dividend income is
accounted for when the right to receive it is established.
1.9 Tangible fixed assets
Fixed assets are stated at historical cost less accumulated
depreciation.
1.10 Intangible assets
The Company has written off during the year the intangible assets
against the profits.
1.11 Investments
Long-term investments, are carried individually at cost less provision
for diminution, other than temporary, in the value of such investments.
Current investments are carried individually, at the lower of cost and
fair value.
1.12 Employee benefits
The Company has not formulated any policy for employee benefits,
including Provident Fund, ESI or Gratuity.
1.13 Borrowing costs
Borrowing costs are recognised as expenses in the period in which they
are actually incurred.
1.14 Taxes on income
Current tax is provided on the taxable income for the year.
Deferred tax liabilities arising from timing differences have been
fully provided. Deferred tax assets are recognised on the consideration
of prudence.
1.15 Impairment of assets
The carrying values of assets are reviewed for impairment at each
balance sheet date to ascertain impairment based on internal / external
factors. An impairment loss is recognised when the carrying amount of
an asset exceeds its recoverable amount. The recoverale amuont is
higher of the net sellilng price of the assets and their value in use.
1.16 Provisions
Provisions are recognised when the Company has present legal or
constructive obligations, 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
amuont of the obligation.
Mar 31, 2010
1. Basis of Accounting
The Financial Statements are prepared on Accrual Basis under the
Historic Cost Convention.
2.. Recognition of Income and Expenditure
Revenues / Incomes and Costs / Expenditure are generally accounted on
Accrual Basis as they are earned or incurred.
Finance Charges in respect of Hire-Purchase transactions are
apportioned over the period of the contract on the basis of internal
rate of return method.
Lease income is accounted as per the terms of lease agreement entered
into with the lessees from time to time in respect of leases entered
prior to 31st March 2001. No lease agreements have been entered since
1st April 2001.
3. Fixed Assets
Fixed Assets are stated at cost, less accumulated depreciation.
4. Amortisation Policy
a) Leased Assets - Depreciation on all leased assets are provided over
the primary lease period.
b) Assets held for own use - Depreciation on Assets held for own use is
provided under Straight Line Method, at the rates prescribed by
Schedule XIV of the Companies (Amendment), Act 1988.
5. Investments
Investments are stated at cost. Income from investments is included in
the Profit and Loss Account. As the investments are long term in
nature, fluctuation in its market value from time to time has not been
considered.
6. Borrowing Costs
Interest and other costs incurred by the Company in connection with the
borrowing of funds are recognized as an expense in the period in which
they are actually incurred.
7. Lease Rentals
Lease Rentals are being accounted for on accrual basis.
8. Retirement Benefits
The Company has not provided for any retirement benefits to the
employees. No Provision has been made for any liability for gratuity
payable to the employees.
9. Impairment of Assets:
The carrying amounts of assets are reviewed at each balance sheet date
to ascertain impairment based on internal / external factors. An
impairment loss is recognized when the carrying amount of an asset
exceeds its recoverable amount. The recoverable amount is higher of the
net selling price of the assets and their value in use.
10. Provisions:
Provisions are recognized when the company has present legal or
constructive obligations, 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.
11. Taxation:
Current Tax is provided on the taxable income for the year.
" Deferred tax liabilities arising from timing differences have been
fully provided for. Deferred tax assets are recognized on the
consideration of prudence.