Accounting Policies of Infollion Research Services Ltd. Company

Mar 31, 2025

SIGNIFICANT ACCOUNTING POLICIES

The significant accounting policies used in the preparation of the standalone financial statements are as Under:

1. Property, Plant and Equipment

Property Plant and equipment are stated at cost, less accumulated depreciation and accumulated impairment
losses, if any. The cost comprises the purchase price, taxes, duties, freight, and other incidental expenses
directly attributable to and related to the acquisition and installation of the concerned assets and are further
adjusted by the amount of input tax credit availed wherever applicable. Subsequent costs are included in the
asset''s carrying amount or recognized as separate assets, as appropriate, only when it is probable that future
economic benefit associated with the item will flow to the Company and the cost of item the cost of item can
be measured reliably.

Capital work in progress is stated at cost which comprises development cost, purchase cost, taxes, and
incidental expenses. Depreciation will charged as per law after the product is ready and put to use.

Fixed assets acquired in full or part exchange for another asset are recorded at the fair market value or the
net book value of the asset given up, adjusted for any balancing cash consideration. Fair market value is
determined either for the assets acquired or assets given up, whichever is more clearly evident. Fixed assets
acquired in exchange for securities of the Company are recorded at the fair market value of the assets or the
fair market value of the securities issued, whichever is more clearly evident

Depreciation on property, plant, and equipment is provided on a prorated basis on a straight line method
using the useful lives of the assets estimated by the management and in the manner prescribed in Scheduled
II of the Companies Act 2013. The estimated life of various assets is as follows.

2. Revenue Recognition

Revenue from the sale of services is recognized when services are provided to the clients and there are no
longer any unfulfilled obligations. The Performance Obligations in our contracts are fulfilled at the time of
dispatch, delivery, or upon formal customer acceptance depending on customer terms.

Revenue is measured based on the sale price, after the deduction of any trade discounts, volume rebates, and
any taxes or duties collected on behalf of the Government such as goods and services tax, etc. Accumulated
experience is used to estimate the provision for such discounts and rebates. Revenue is only recognized to
the extent that, probably, a significant reversal will not occur.

3. Employee benefits

(i) Short-term employee benefits

Short-term employee benefits are recognized as an expense at the undiscounted amount in the statement
of Profit and loss for the year which includes benefits like salary, wages, and bonus and are recognized as
expenses in the period in which the employee renders the related service

(ii) Post-Employment benefits:

Defined Contribution Plan:

The Company has Defined Contribution Plans for Post-employment benefits in the form of a Provident
Fund for all employees which are administered by the Regional Provident Fund Commissioner. Provident
Fund and Employee State Insurance are classified as defined contribution plans as the Company has no
further obligation beyond making the contributions. The Company''s contributions to Defined Contribution
plans are charged to the Statement of Profit and Loss as and when incurred.

Defined benefit Plans:

The Company has a defined benefit plan for post-employment benefits in the form of Gratuity. Liability for the
above-defined benefit plan is based on valuation, as at the Balance Sheet date, carried out by an independent
actuary. The actuarial method used for measuring the liability is the Projected Unit Credit method.

Provident Fund

Eligible employees receive benefits from the provident fund, which is a defined contribution plan. The
employee and the Company make monthly contributions to the provident fund plan equal to a specified
percentage of the covered employees'' basic salary. The Company has no further obligations under the plan
beyond its monthly contributions. Contributions to the provident fund are charged to the statement of profit
and loss on an accrual basis.

4. Foreign currency transactions:

(i) Initial recognition

Transactions in foreign currencies entered into by the Company are accounted at the exchange rates
prevailing on the date of the transaction or at rates that closely approximate the rate at the date of the
transaction.

(ii) Measurement of foreign currency monetary items at Balance Sheet date

Foreign currency monetary items (other than derivative contracts) of the Company outstanding at the
Balance Sheet date are restated at the year-end rates.

(iii) Exchange difference

Exchange differences arising out of these translations are charged to the Statement of Profit and Loss.

5. Income Taxes

Tax expense for the year comprising current tax & deferred tax is considered in determining the net profit for
the year. Provision is made for current tax and based on tax liability computed by relevant tax laws applicable
to the Company. Provision is made for deferred tax for all timing differences arising between taxable incomes
& accounting income at currently enacted or substantively enacted tax rates, as the case may be. Deferred
tax assets (other than in situations of unabsorbed depreciation and carry-forward losses) are recognized
only if there is reasonable certainty that they will be realized and are reviewed for the appropriateness of
their respective carrying values at each Balance Sheet date. Deferred tax assets, in situations of unabsorbed
depreciation and carry forward losses under tax laws are recognized only to the extent that there is virtual
certainty supported by convincing evidence that sufficient future taxable income will be available against
which such deferred tax assets can be recognized. Deferred Tax Assets and Deferred Tax Liability are been
offset wherever the Company has a legally enforceable right to set off current tax assets against current tax
liability and where the Deferred Tax Asset and Deferred Tax Liability related to Income taxes is levied by the
same taxation authority.

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Mar 31, 2024

SIGNIFICANT ACCOUNTING POLICIES

The significant accounting policies used in the preparation of the standalone financial statements are as Under:

1. Property, Plant and Equipment

Property Plant and equipment are stated at cost, less accumulated depreciation and accumulated impairment losses, if any. The cost comprises the purchase price, taxes, duties, freight, and other incidental expenses directly attributable to and related to the acquisition and installation of the concerned assets and are further adjusted by the amount of input tax credit availed wherever applicable. Subsequent costs are included in the asset''s carrying amount or recognized as separate assets, as appropriate, only when it is probable that future economic benefit associated with the item will flow to the Company and the cost of item the cost of item can be measured reliably.

Capital work in progress is stated at cost which comprises development cost, purchase cost, taxes, and incidental expenses. Depreciation will charged as per law after the product is ready and put to use.

Fixed assets acquired in full or part exchange for another asset are recorded at the fair market value or the net book value of the asset given up, adjusted for any balancing cash consideration. Fair market value is determined either for the assets acquired or assets given up, whichever is more clearly evident. Fixed assets acquired in exchange for securities of the Company are recorded at the fair market value of the assets or the fair market value of the securities issued, whichever is more clearly evident

Depreciation on property, plant, and equipment is provided on a prorated basis on a straight line method using the useful lives of the assets estimated by the management and in the manner prescribed in Scheduled II of the Companies Act 2013. The estimated life of various assets is as follows.

Accelerated Depreciation is charged in case of assets forming part of a restructuring project basis the planned remaining useful life of assets. Leasehold improvements are depreciated on a straight-line basis over the useful life of the asset or the lease period, whichever is lower.

2. Revenue Recognition

Revenue from the sale of services is recognized when services are provided to the clients and there are no longer any unfulfilled obligations. The Performance Obligations in our contracts are fulfilled at the time of dispatch, delivery, or upon formal customer acceptance depending on customer terms.

Revenue is measured based on the sale price, after the deduction of any trade discounts, volume rebates, and any taxes or duties collected on behalf of the Government such as goods and services tax, etc. Accumulated experience is used to estimate the provision for such discounts and rebates. Revenue is only recognized to the extent that, probably, a significant reversal will not occur.

Additionally, there has been a change in accounting policy during the financial year ended 31^st March 2024 for the correct adoption of "AS 9 - Revenue recognition". To take retrospective effect of the changes as per "AS 5 - Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies ", an addition of '' 330.92 Lakh to the opening balance of Reserves and Surplus has been made.

3. Employee benefits

(i) Short-term employee benefits

Short-term employee benefits are recognized as an expense at the undiscounted amount in the statement of Profit and loss for the year which includes benefits like salary, wages, and bonus and are recognized as expenses in the period in which the employee renders the related service

(ii) Post-Employment benefits:

Defined Contribution Plan:

The Company has Defined Contribution Plans for Post-employment benefits in the form of a Provident Fund for all employees which are administered by the Regional Provident Fund Commissioner. Provident Fund and Employee State Insurance are classified as defined contribution plans as the Company has no further obligation beyond making the contributions. The Company''s contributions to Defined Contribution plans are charged to the Statement of Profit and Loss as and when incurred.

Defined benefit Plans:

The Company has a defined benefit plan for post-employment benefits in the form of Gratuity. Liability for the above-defined benefit plan is based on valuation, as at the Balance Sheet date, carried out by an independent actuary. The actuarial method used for measuring the liability is the Projected Unit Credit method.

Provident Fund

Eligible employees receive benefits from the provident fund, which is a defined contribution plan. The employee and the Company make monthly contributions to the provident fund plan equal to a specified percentage of the covered employees'' basic salary. The Company has no further obligations under the plan beyond its monthly contributions. Contributions to the provident fund are charged to the statement of profit and loss on an accrual basis.

4. Foreign currency transactions:

(i) Initial recognition

Transactions in foreign currencies entered into by the Company are accounted at the exchange rates prevailing on the date of the transaction or at rates that closely approximate the rate at the date of the transaction.

(ii) Measurement of foreign currency monetary items at Balance Sheet date

Foreign currency monetary items (other than derivative contracts) of the Company outstanding at the Balance Sheet date are restated at the year-end rates.

(iii) Exchange difference

Exchange differences arising out of these translations are charged to the Statement of Profit and Loss.

5. Income Taxes

Tax expense for the year comprising current tax & deferred tax is considered in determining the net profit for the year. Provision is made for current tax and based on tax liability computed by relevant tax laws applicable to the Company. Provision is made for deferred tax for all timing differences arising between taxable incomes & accounting income at currently enacted or substantively enacted tax rates, as the case may be. Deferred tax assets (other than in situations of unabsorbed depreciation and carry-forward losses) are recognized only if there is reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying values at each Balance Sheet date. Deferred tax assets, in situations of unabsorbed depreciation and carry forward losses under tax laws are recognized only to the extent that there is virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be recognized. Deferred Tax Assets and Deferred Tax Liability are been offset wherever the Company has a legally enforceable right to set off current tax assets against current tax liability and where the Deferred Tax Asset and Deferred Tax Liability related to Income taxes is levied by the same taxation authority.