Note 1:

Notes attached to and forming part of the Balance Sheet as at 31-3-2015 and the Profit and Loss account for the year ended on that date:

Company overview;

Gita Renewable Energy Limited (the company) incorporated under the Companies Act, 1956, in the year 2010, is engaged in power generation. The company's shares are listed on the Bombay Stock Exchange Limited and the shares are traded regularly.

2. significant accounting policies

2.1 Basis of brparation of financial statements:

The financial statements are brpared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual method of accounting except as disclosed in the notes. GAAP comprises mandatory accounting standards as brscribed under Section 133 of the Companies Act,2013 ('the Act'), read with Rule 7 of the Companies(Accounts) Rules, 2014 and guidelines issued by the Securities and Exchange Board of India (SEBI). The accounting policies adopted in brparation of fi nancial statements are consistent with those of brvious year except for change in accounting policy initially adopted or a revision to the existing accounting policy that requires a change as against the one hitherto in use.

2.2 Use of Estimates

The brparation of the financial statements in conformity with GAAP requires the Management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent liabilities as at the date of the financial statements and reported amounts of income and expenses during the year. The Company believes that the estimates used in the brparation of the financial statements as prudent and reasonable. Actual results could differ from those estimates.

2.3 Revenue Recognition:

Revenue from Power Supply and Transmission Charges are accounted for on the basis of billings to consumers' up-to the end of the accounting year.

2.4 Debrciation:

Debrciation on Tangible assets is provided on the straight line method over the useful lives of assets as per the rates specified under Schedule II of the Companies Act, 2013 on pro-rata basis.

2.5 Fixed Assets:

Fixed Assets are stated at cost less accumulated debrciation and impairment, if any. Direct costs like inland freight, duties, taxes and incidental expenses related to acquisition are capitalized with due adjustments for Cenvat / VAT credits.

2.6 Impairment

At each Balance sheet date, the Management assesses, whether there is any indication that Fixed Asset have suffered an impairment loss. If any such indication exists the recoverable amount of the Assets is estimated in order to determine the extent of the impairment if any. Where it is not possible to estimate the recoverable amount of individual asset, the Company estimates the recoverable amount of the cash generating unit to which the asset belongs.

As per the assessment conducted by the company at March 31, 2015, there was no indication that fixed asset have suffered an impairment loss.

2.7 Foreign Exchange Transactions:

Transactions in foreign currencies are recorded at the exchange rates brvailing at the date of the transactions. In respect of the transactions covered by Forward Exchange Contracts, the difference between the forward rate and the exchange rate on the date of the transaction is recognized as Income or Expense over the life of the Contract. Transactions not covered by forward exchange rates and outstanding at year end are translated at exchange rates brvailing at the year end and the profit/loss so determined and also the realized exchange gain/losses are recognized in the Statement of Profit & Loss. The Company has not entered into foreign exchange contract during the year under review.

2.8 Borrowing Cost:

All borrowing costs are charged to revenue except to the extent they are attributable to qualifying assets, which are capitalized. During the year under review, there was no borrowing attributable to qualifying assets and hence no borrowing cost was capitalized.

2.9 Segment Accounting:

The company's primary segment is identified as business segment based on nature of product, risks, returns and internal business reporting system and secondary segment is identified based on geographical locations of the customers as per Accounting Standard-17. The company is principally engaged in a single business segment viz., Power Generation Further there is no reportable secondary segment. Ie., Geographical segment.

2.10 Taxes on Income:

(a) Provision for current tax is made in accordance with the Income Tax Act, 1961.

(b) I n accordance with the Accounting Standard AS-22 'Accounting for Taxes on Income' issued by the Institute of Chartered Accountants of India, Deferred Tax Liability / Asset arising from timing differences between book and income tax profts is accounted for at the current rate of tax to the extent these differences are expected to crystallize in later years. However, Deferred Tax Assets are recognized only if there is a reasonable / virtual certainty of realization thereof. During the year under review, the company has generated deferred tax asset to the extent of Rs.60,21,955/-.

2.11 Provisions and Contingencies:

Provisions involving a substantial degree of estimation in measurement are recognized when there is a brsent obligation as a result of past events and it is probable that there will be an outfi ow of resources. Contingent liabilities are not recognized but are disclosed in the accounts by way of a note. Contingent assets are neither recognized nor disclosed in the fnancial statements.

Contingencies are recorded when it is probable that a liability will be incurred and the amounts can reasonably be estimated.

Differences between the actual results and estimates are recognized in the year in which the results are known materialized. During the year under review, the company has not recognized any contingent liability/asset

16. Additional Information to the Financial Statements

i) Contingent liability not provided for:

(a) Counter Guarantees furnished to the bank Nil (Previous year Rs. Nil).

(b) Towards outstanding Letter of Credit Rs Nil (Previous year Rs. Nil) on account of import of raw materials.

ii) Estimated amount of contracts remaining to be executed on capital accounts and not provided for Rs. Nil (Previous year Rs. Nil).

iii) Claims against the Company not acknowledged as Debt Rs. Nil. Contingent liabilities not provided for Rs. Nil.

iv) Employee / Retirement Benefits: No provision for Retirement Benefits / gratuity to employees has been made since there are no employees eligible for the same.

v) There are no dues to enterprises as def ned under Micro, Small and Medium Enterprises Development Act, 2006, as at March 31, 2015 which is on the basis of such parties having been identified by the management and relied upon by the auditors.

vi) As on the closing date, Company has circularized/sought confi rmation of balance letters to/from sundry debtors and Loans and Advance paid to parties / sundry creditors. In the absence of negation, the balances appearing the books are taken as correct.

vii) Value of Imported & Indigenous Raw Materials, Spare Parts Components consumed Rs. Nil (brvious year Rs. Nil).

viii) CIF Value of Imports: Rs. Nil

ix) Remittance in Foreign Currency towards Dividend - Rs. Nil.

x) Earnings in Foreign Currency Rs. Nil (Previous year Rs. Nil) Expenditure in Foreign Currency Rs. Nil (Previous year Rs. Nil)

xi) Licence Agreement:

The company has entered into a License Agreement on 26-04-2008 to give on license the 10MW power plant to OPG Renewable Energy Private Limited (OPGREPL) on the understanding that OPGREPL shall pay lease rent of Rs.2,50,000/- p.m. plus applicable taxes to the company an interest free deposit of Rs.44,40,00,000/- and The Interest free deposit is grouped under unsecured loan.

xii) RELATED PARTY DISCLOSURES

Details of related parties including summary of transactions entered into by the Company during the year ended 31 March 2015 are summarized below

xv) Previous year figures:

Previous year's figures have been regrouped/ reclassifed wherever necessary to correspond with the current year's classifcation / disclosure.

As per the report of even date annexed

For CHATURVEDI & COMPANY

CHARTERED ACCOUNTANTS

FRN 302137E

R- Natarajan  

Chairman & Managing Director

R. Saraswathi

Director

S GANESAN FCA

Partner (MNR:217119)

C. Chandrasekar  

Company Secretary

V. Kumar

Chief Financial Off cer

Place  : Chennai, 29-05-2015

Date : 2014-2015