Accounting Policies of Influx Healthtech Ltd. Company

Mar 31, 2025

1 SIGNIFICANT ACCOUNTING POLICIES & NOTES TO ACCOUNTS
A Basis of Preparation of Financial statements

Ihese financial statements have been prepared in accordance with the generally accepted accounting pnnc.plcs in ndia under the
historical cost convention on accrual basis. These financial statements have been prepared to comply in all material .aspects with the
accounting standards notified under the Companies (Accounting Standards) Rules, 2006 fas amended), specified under section 133 and
other relevant provisions of the Companies Act, 2013

All assets and liabilities have been classified as current or non current as per the Company''s operating cycle and other criteria set out in
the Schedule III (Division I) to the Companies Act, 2013. Based on the nature of products and the time between the acquisition of assets
for orocessing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 1? months for the
purpose of current non current classification of assets and liabilities.

B Use of Estimates

The preparation of Financial Statements in conformity with Generally Accepted Accounting Principles in India requires management to
make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses and disclosure of
contingent assets and liabilities at the end of the reporting period. The estimates and assumptions used in the accompanying financial
Statements are based upon management''s evaluation of the relevant facts and circumstances as of the date of the Financial Statements.
Actual results may differ from the estimates and assumptions used in preparing the accompanying I mancial Statements. Any revisions to
accounting estimates are recognized prospectively in current and future periods

C Accounting Convention

The Company follows the mercantile system of accounting, recognizing income and expenditure on accrual basis I he accounts are
prepared on historical cost basis and as a going concern

Accounting policies not referred to specifically otherwise, are consistent with the generally accepted accounting principles
The following significant accounting policies are adopted in the preparation and presentation of these financial statements:

D Current versus non current classification

The assets and liabilities in the balance sheet are presented based on current and non current (lasslfication
An asset is current when it is:

- expected to be realised or intended to be sold or consumed in normal operating cycle, or

- Held primarily for the purpose of trading, or

I xpected to be realised within twelve months after the reporting period, or

Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least
twelve months after the reporting period. All other assets are classified as non-current.

A liability is current when it is:

Expected to be settled in normal operating cycle,or

- Held primarily for the purpose of trading, or

- Due to be settled within twelve months after the reporting period, or

There is no unconditional right to defer the settlement of the liability for at least twelve months after
the reporting period

All other liabilities arc treated as non current. Deferred tax assets / liabilities are classified as non-current assets and liabilities
respectively

L Property, Plant & Equipment and Intangible Assets

(a) Tangible Assets

Property. Plant and Equipment are stated at cost, net ol accumulated depreciation and accumulated impairment losses, if any
Cost comprises of the purchase price including import duties and non-refunrlahle taxes, and directly attributable expenses
ncurrcd to bring the asset to the location and condition necessary for it to be capable of being operated in the manner intended
by management. Subsequent costs related to an item of Property, Plant and I quipment are recognised m the carrying amount
of the item if the recognition criteria are met.

Items of Property, Plant and equipment that have been retired from active use and are held for disposal are stated at the lower
of their net carrying amount and net realisable value and arc shown separately In the financial statements under the head
Other current assets’. Any write-down in this regard is recognised immediately In the Statement of Profit and Loss.

An item of Property, Plant and Equipment is derecognised on disposal or when no future economic benefits arc expected from
its use or disposal. The gain or loss arising on derecognition is recognised in the Statement of Profit and Loss.

(b) Intangible Assets

(i) Acquired Intangible Assets

Intangible assets are stated at acquisition cost, net of accumulated amortisation and accumulated impairment losses, if any.

Gains or losses arising from the retirement or disposal of an Intangible asset are determined as the difference between the net
disposal proceeds and the carrying amount of the asset and recognised as Income or expense in the Statement of Profit and
Loss.

(ii) Impairment of Assets

Assessment is done at each balance sheet date as to whether there is any indication that an asset (tangible and intangible) may
be impaired. If any such indication exists, an estimate ol the recoverable amount of the asset/cash generating unit is made
Recoverable amount is higher of an asset''s or cash generating unit''s net selling price and Its value in use. Value in use is the
present value of estimated future cash flows expected to arise from the continuing use of an asset and from ts disposal at ''tic-
end of its useful life. Tor the purpose of assessing Impairment, the recoverable amount is determined for an individual asset,
unless the asset does not generate cash inflows that arc largely independent of those from other assets or groups ol assets The
smallest Identifiable group of assets that generates cash Inflows from continuing use that are largely independent ol the cash
inflows from other assets or groups of assets, is considered as a cash generating unit (CGU) An assel or CGU whose carrying
value exceeds its recoverable amount is considered impaired and is written down to its recoverable amount. Assessment is also
done at each balance sheet dale as to whether there Is any Indication Lhat an impairment loss recognised for an asset in prior
accounting periods may no longer exist or may have decreased. An Impairment loss is reversed to the extent that the asset''s
carrying amount does not exceed the carrying amount that would have been determined if no impairment loss had previously
been recognised.

(c) Depreciation

Depreciation on tangible assets is provided to the extent depreciable amount on the Written Down Valuc(WDV) Method.
Depreciation is provided based on useful life of assets as prescribed in Schedule II to the Companies Act, 2013

Intangible assets are amortised on a straight line basis over their estimated useful lives. A rebuttable presumption that Hie
useful lile of an intangible asset will not exceed ten years from the date when the asset is available for use is considered by Ihc
management. The amortisation penod arid the amortisation method are reviewed at least at each financial year end l( the
expected useful life of the asset IS significantly different from previous estimates, the amortisation period is changed
accordingly.

The estimates of useful lives of property plant and equipment are as follows

lypes Of Asset Useful life as per Schedule II

Building 30

Plant and Machinery 15

Furniture and rixturcs 10

Office Equipment 5

Motor Vehicles 8

Computer Software 3 to 10

F Inventories

Inventories of Raw Materials are valued at lower nf cost or net realizable value. Tbe method used for valuation or determination
of cost Is as per First-in-First-Out (FIFO) basis.

Inventories of stores, regular spares, fuel and packing material are valued at cost or net realizable value whichever Is lower. First
in-rirst-Out (FIFO) method is used for valuation purpose. Inventories of finished goods are valued at lower of factory cost
(including material, labour and related overheads and depreciation) and net realizable value.

Goods and Service Tax (''GST'') Input, being tax which is set off against GST output, does not form a part of cost of inventory as
prescribed in AS ? on "Valuation of Inventories"

G Cash and Cash Equivalents

In the cash flow statement, cash and cash equivalents include cash in hand, demand deposits with banks, other short term
highly liquid investments witti original maturities of three months or less.