ಕಂಪನಿಯ ಅಕೌಂಟಿಗ್ ಪಾಲಿಸಿ JD Cables Ltd.

a. Basis of Accounting

The financial statement of the company have been prepared in accordance with the Generally Accepted
Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards specified under
Section 133 the Companies Act, 2013, read with Rule 7 of the Companies Accounting Rules, 2014 and
the relevant provisions of the Companies Act (“the 2013 Act”), 2013. 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.

b. Inventories

Inventories are valued at lower of cost or net realizable value.

1. Cost of raw materials includes the purchase price as well as incidental expenses such as freight and
other cost incurred in bringing them to their respective present location and situation.

2. Work in Progress & Finished goods are valued at lower of Weighted Average Cost or Net Realisable
Value.

3. Scrap Generated is valued at Net Realisable Value.

4 Stores, Spares & Packing Materials : At Cost

c. Tangible Assets and Depreciation

Tangible Assets are stated at cost net of recoverable taxes, trade discounts and rebates and include
amounts added on revaluation, less accumulated depreciation and impairment loss, if any. The Cost of
Tangible assets comprises its purchase price, borrowing cost, and any other cost directly attributable
to bringing the asset to its working condition for its intended use, net charges on foreign exchange
contracts and adjustments arising from exchange rate variations attributable to the assets.

Subsequent expenditure related to an item of fixed asset is added to its book value only if it increases
the future benefits from the existing asset beyond its previously assessed standard of performance. All
other expenses on existing fixed assets, including day-to-day repair and maintenance expenditure and
cost of replacing parts, are charged to the statement of profit and loss for the period during which such
expenses are incurred.

Advances paid towards the acquisition of fixed assets outstanding at each balance sheet date are
disclosed as “Capital Advances” under Long Term Loans and advances.

Depreciation on Tangible Assets has been provided as per Schedule II to the Companies Act 2013 and
depreciation is charged based on useful life of the assets as prescribed in schedule II to the Companies
Act, 2013. Intangible assets are amor zed over their respective individual estimated useful lives on
straight line basis.

Leasehold land is being amortized over the period of lease or balance life of the project, whichever is earlier
Gains or losses arising from derecognition of fixed assets are measured as the difference between the
net disposal proceeds and the carrying amount of the asset and are recognized in the statement of profit

d. Revenue Recognition

Revenue is recognized to the extent it is probable that the economic benefits will flow to the Company
and it can be reliably measured. Revenue to the extent considered receivable, unless specifically stated
to be otherwise, are accounted for on mercantile basis.

Sale of Goods & Services

Revenue from Operations includes sale of goods & services including cartage is recognised in the
statement of profit and loss account when the significant risk and reward of ownership have been
transferred to the buyer. The Company collects Goods and Services Tax on behalf of the government
and, therefore, these are not economic benefits flowing to the Company. Hence, they are excluded from
revenue.

Interest income

Interest income is recognized on a time proportion basis taking into account the amount outstanding
and the applicable interest rate. Interest income is included under the head “other income” in the
statement of profit and loss.

Other Income

Other income is recognized on accrual basis.
e Expenditure

Expenditure is accounted on accrual basis and provision is made for all known losses and liabilities.

f. Employees Retirement Benefits

(i) Short Term Employee Benefits

The undiscounted amount of short term employee benefits expected to be paid in exchange for the
services rendered by employees are recognised as an expense during the period when the employees
render the services.

(ii) Post-Employment Benefit
Defined Contribution Plans

A defined contribution plan is a post-employment benefit plan under which the Company pays specified
contributions to a separate entity. The Company makes specified monthly contributions towards
Provident Fund, Superannuation Fund and Pension Scheme. The Company''s contribution is recognised
as an expense in the Profit and Loss Statement during the period in which the employee renders the
related services.

Defined Benefit Plans

Gratuity liability is a defined benefit obligation and is provided for on the basis of an actuarial valuation
on projected unit credit (PUC) method at the end of each year. Actuarial gains/losses are immediately
taken to the statement of profit and loss and are not deferred. Accumulated gratuity, which is expected to
be utilized within the next 12 months, is treated as short-term employee benefit and which is expected
to be carried forward beyond 12 months, as long term employees benefit for measurement purpose.

g. Taxation

1 Current Tax is determined on the profit of the year in accordance with the provisions of the Income
Tax Act, 1961.

2 Deferred Tax is calculated at the rates and laws that have been enacted or substantively enacted as
at the Balance Sheet date and is recognized on timing difference that originate in one period and are
capable of reversal in one or more subsequent periods. Deferred tax assets, subject to consideration

h. Borrowing Costs

Borrowing cost includes interest, amortization of ancillary cost incurred in connection with the
arrangement of borrowings and exchange differences arising from foreign currency borrowings to the
extent they are regarded as an adjustment to the interest cost.

Borrowing costs 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 cost of the respective asset. All other borrowing costs are expensed in the period they occur.