Accounting Policies of Logica Infoway Ltd. Company

Mar 31, 2025

2.5.1 The Company has taken Cash Credit facilities from State Bank of India, SME N. S. Road Branch, with a sanctioned limit of ? 80.00 crores,

(inculding the Foreign Currency Demand Loan of USD 6,949,000.00 hereinafter called FCNRB(DL), from and out of the deposits held hy the Bank under
FCNR(B) deposit scheme as allowed by RBI vide their circular AD/MA/22 dated the 31st October, 1996 which has been availed by way of a Demand
Loan within the said fund based working capital limit of ? 80.00 crores) which is secured as follows, as per the sanction letter terms:-

(A) Primary Securities (State Bank of India)

1) Hypothecation of all stocks & receivables and other current assets and movable fixed assets (both present and future) created out of the Bank Finance.

(B) Collateral Securities (State Bank of India)

1) Equitable Mortgage of office space located at 2, Saklat Place, 1st Floor, Kolkata 700072, in the name of Gaurav Goel, Sweta Goel & Rakesh Kumar
Goel. vide Title deed no 09062.

2) Extension of Equitable Mortgage on the residual value of Residential Flat [228.14 Sq.M.] on the Entire first Floor of Property Bearing No.D-941, an
area measuring 492 sq. Yard or 411.37 sqm with One Car Parking & one Servant Quarter, situated at New Friends Colony, New Delhi in favor of Shri
Gaurav Goel & Smt.Shweta Goel, which is duly registered as document No.3752,ln Addl.Book No.l, Volume No.381,on pages 108 to 126, dated
09.08.2017 registered in the office of Suh Registrar-V(l), New Delhi.

3) Lien on SBI Mutual Funds of units 486722.757 [Invested amount: ?2.00 Crore; Fund Name: SBI Magnum Medium Duration F Reg G].

4) Lien on SBI Mutual Funds of units 1784302.068 [Invested amount: ?10.18 Crore; Fund Name: SBI Magnum Gilt Fund Regular Growth],

5) Lien on SBI Mutual Funds of units 5077791.61 [Invested amount: ?0.50 Crore; Fund Name: SBI Dynamic Bond Fund- Regular Growth].

6) Lien on SBI Mutual Fund of Rs. 7,50,00;000/- or Fixed Deposits of Rs.7,05,00,000/- or combination of both by considering appropriate margin as
applicable (Proposed).

(C) Guarantees

1) Personal guarantee of Mr. Gaurav Goel, Mrs.Shweta Goel, Mr. Rakesh Goel (Personal Guarantee of Shri. R. K. Goel is restricted to the value of the
property mortgaged i.e., ? 4.16 Crores (ERV) Guarantee is restricted to the value of the collateral security situated at 2, Saklat place, 1 st floor, Kolkata
700072.

2) Corporate Guarantee - M/s. Himadri Dealcom Pvt Ltd. to the extent of its TNW at any point of time.

The Additional GECL (WCTL) facility shall rank second charge with the existing credit facilities, in respect of existing securities already charged to the
Bank as well as cash flows for repayment._

2.5.2 The Company has availed Guaranteed Emergency Credit Line ("GECL") by way of Working Capital Term Loan Facility from State Bank of India, N.
S. Road Branch Kolkata to the extent of? 5.30 Crore repayable in 36 equal monthly installment after a moratorium period of 12 months from the date of
disbursement of the loan. Moratorium on Principal amount for a period of 12 months and Interest will continue to accrue and become payable during the
Moratorium Period. Principal outstanding amount is being repaid in 36 equal monthly instalments i.e ?14.72 Lakhs after the expiry of the Moratorium
Period. The same has been repaid during the year.

2.5.3 The Company has availed Guaranteed Emergency Credit Line ("GECL") - Extension by way of Working Capital Term Loan Facility from State Bank
of India, N. S. Road Branch Kolkata to the extent of? 2.65 Crore repayable in 36 equal monthly installment after a moratorium period of 24 months from
the date of disbursement of the loan. Moratorium on Principal amount for a period of 24 months and Interest will continue to accrue and become payable
during the Moratorium Period. Principal outstanding amount to be repaid in 36 equal monthly instalments i.e ?7.36 Lakhs after the expiry of the
Moratorium Period.

2.5.4 During the year the company has availed a Cash Credit Facility along with Export Packing Credit (EPC)/Packing Credit in Foreign Currency (PCFC),
a Working capital demand loan (WCDL) from ICICI Bank Limited R.N.Mukheijee Road Branch of? 32 Crores which is secured as follows, as per
sanction letter terms:-

(A) Primary Security

1. Lien of Fixed Deposits with ICICI Bank Limited (A/c No. 000610083440) of? 7.50 crores and(A/cNo. 0006103096914) of? 2.10 crores

2. Exclusive hypothecation charge on all stocks and receivables (both present and future) created out of the Bank Finance.

(B) Guarantees:

Personal Guarantee of Mr Gaurav Goel and Mrs Sweta Goel.

2.5.5 The company has availed Channel Financing Facility of ? 2 Crore from ICICI Bank Limited for the purchase of inventory from Ingram Micro India
Pvt Ltd. Against this facility security is provided is a Fixed Deposit with ICICI Bank of ? 10 Lakh personal Guarantee given by Mr. Gaurav Goel and Mrs.
Shweta Goel and Corporate Guarantee of Himadri Dealcom Private Limited.

2.5.6 The year the company has availed Channel Financing Facility of ? 2 Crore from ICICI Bank Limited for the purchase of inventory
from Rashi Peripherals Ltd. Against this facility security provided is a Fixed Deposit with ICICI Bank of? 10 Lakh personal Guarantee
given by Mr. Gaurav Goel and Mrs. Shweta Goel and Corporate Guarantee of Himadri Dealcom Private Limited.

2.5.7 The company has availed Channel Financing Facility of ? 3 Crore from ICICI Bank Limited for the purchase of inventory from Savex
Technologies Pvt Ltd. Against this facility security provided is a Fixed Deposit with ICICI Bank of? 15 Lakh personal Guarantee given hy
Mr. Gaurav Goel and Mrs. Shweta Goel and Corporate Guarantee of Himadri Dealcom Private Limited.

2.5.8 The company has availed Channel Financing Facility of ? 5 Crore from ICICI Bank Limited for the purchase of inventory from
Redington (India) Ltd. Against this facility security provided is a Fixed Deposit with ICICI Bank of? 25 Lakh personal Guarantee given hy
Mr. Gaurav Goel and Mrs. Shweta Goel and Corporate Guarantee of Himadri Dealcom Private Limited.

2.5.9 The company has availed Channel Financing Facility of ? 3 Crore from Axis Bank Limited for the purchase of inventory from Savex
Technologies Pvt Ltd. Against this facility security provided is a Fixed Deposit with Axis Bank of? 18.00 Lakh and personal Guarantee
given by Mr. Gaurav Goel and Mrs. Shweta Goel along with Corporate Guarantee of Himadri Dealcom Pvt Ltd.

2.5.10 The company has availed Channel Financing Facility of ? 2 Crore from Axis Bank Limited for the purchase of inventory from
Redington (India) Ltd. Against this facility security provided is a Fixed Deposit with Axis Bank of? 12.00 Lakh and personal Guarantee
given by Mr. Gaurav Goel and Mrs. Shweta Goel along with Corporate Guarantee of Himadri Dealcom Pvt Ltd.

2.5.11 The Company has taken Invoice Based Financing facility for buying from Redington Ltd., Link Telecom Ltd, Savex Technologies
Pvt. Ltd. & Rashi Perpiherals Ltd. of? 15 Cr. from The Federal Bank Limited against Term Deposits of ? 0.75 Cr. in the name of Company
along with Personal Gaurantee of Mr. Gaurav Goel & Mrs. Shweta Goel and Corporate Guarantee of Himadri Dealcom Private Limited.

2.5.12 The Company has availed the Channel Financing facility of ? 5 Crore from Aditya Birla Finance Ltd for the purchase of inventory
from Redington India Ltd. Against this loan personal Guarantee was given by Mr. Gaurav Goel and Mrs. Shweta Goel.

2.5.13 During the year, the company has availed the Channel Financing facility of ? 1 Crore from Aditya Birla Finance Ltd for the purchase
of inventory from Supertron Electronics Pvt. Ltd. Against this loan personal Guarantee was given by Mr. Gaurav Goel and Mrs. Shweta
Goel.

2.5.14 During the year, the company has availed availed Channel Financing facility of ? 1 Crore from Aditya Birla Finance Ltd for the
purchase of inventory from Rashi Peripherals Ltd. Against this loan personal Guarantee was given by Mr. Gaurav Goel and Mrs. Shweta
Goel.

2.5.15 The Company has taken Channel Financing i.e Renewal cum enhancement of Purchase Invoice Discounting of channel partner
buying from Rashi Peripherals Ltd., Redington India Ltd. and Superton Electronics Pvt Ltd of ? 6 Crore from Hero Fincorp Ltd against
Corporate Gurantee of Himadri Dealcom Pvt Ltd and Personal Gurantee given by Mr. Gaurav Goel, Mrs. Shweta Goel.

2.5.16 The Company has taken Channel Financing i.e Renewal cum enhancement of Purchase Invoice Discounting of channel partner
buying from Savex Technologies Private Limited of ? 3 Crore from Tata Capital Finance Service Limited with collateral FD of ? 25 Lakhs
with a bank as acceptable to TCL, duty lien marked on Principal and Interest in favour of TCL. With the nature of Deposit: Reinvestment of
Interest and Maturity Instruction of Auto-renewal Principal and Interest, and irrevocable and unconditional personal guarantee of Mr.

Gaurav Goel and Mrs. Shweta Goel along with 25 Lakhs Liquid Security for all 3 OEM taken from Tata Capital Limited.

2.5.17 The Company has taken Channel Financing i.e Renewal cum enhancement of Purchase Invoice Discounting of channel partner
buying from Rashi Peripherals Limited of ? 1 Crore from Tata Capital Finance Service Limited with collateral FD of ? 25 Lakhs with a
hank as acceptable to TCL, duty lien marked on Principal and Interest in favour of TCL. With the nature of Deposit: Reinvestment of
Interest and Maturity Instruction of Auto-renew Principal and Interest, and irrevocable and unconditional personal guarantee of Mr. Gaurav
Goel and Mrs. Shweta Goel, along with 25 Lakhs Liquid Security for all 3 OEM taken from Tata Capital Limited.

2.5.18 The Company has taken Channel Financing i.e Renewal cum enhancement of Purchase Invoice Discounting of channel partner
buying from Redington Limited of ? 1 Crore from Tata Capital Finance Service Limited with irrevocable and unconditional personal
guarantee of Mr. Gaurav Goel and Mrs. Shweta Goel along with 25 Lakhs Liquid Security for all 3 OEM taken from Tata Capital Limited.

2.5.19 The Company has taken Channel Financing i.e Renewal cum enhancement of Purchase Invoice Discounting of channel partner
buying from Ingram Micro India Private Limited of ? 5 Crore from Tata Capital Finance Service Limited lien of STDR of ? 25 Lakhs
brought in the name of promoter Mr. Gaurav Goel and Guarantee given by Mr. Gaurav Goel and Mrs. Shweta Goel. The same has been
repaud during the year.

2.5.20 The Company has taken Channel Financing i.e Renewal cum enhancement of Purchase Invoice Discounting of channel partner
buying from Savex Technlogies Pvt Ltd, Rashi Peripherals Pvt. Ltd., Redington India Ltd. and Superton Electronics Pvt Ltd of ? 5 Crore
from Cholamandalam Investment and Finance Company Ltd. Against this loan personal Guarantee given by Mr. Gaurav Goel and Mrs.
Shweta Goel.

2.5.21 The Company has taken Line of Credit facility of ? 5 Crore from Aditya Birla Finance Ltd for Working Capital and purchase of
inventory for the purpose of sales through Amazon Seller Services Limited. Against this loan personal Guarantee given by Mr. Gaurav Goel
and Mrs. Shweta Goel. The same has been repaid during the year.

2.5.22 The company has availed an Auto Loan from ICICI Bank Limited of ? 5,00,000 with an interest rate of 9.30% and payable in 36
Equated Monthly Installments (EMIs) of ?15,974.00. EMI begins on 1st September 2023 and is payable till 1st August 2026. The loan is
secured against the hypothecation of the car, and charges for the same are registered with the respective Public Vehicle Department where
the car is registered. As such, no separate charge with ROC has been registered, as a matter of general practice adopted by the financing
bank in such cases.

2.5.23 The company has availed an Auto Loan from ICICI Bank Limited of ? 36,00,000 with an interest rate of 9.16% and payable in 36
Equated Monthly Installments (EMIs) of ? 1,35,450.00. EMI beginning from 1st May 2024 and payable till 1st April 2027. The loan is
secured against the hypothecation of the car and charges for the same are registered with the respective Public Vehicle Department where
the car is registered. As such, no separate charge with ROC has been registered, as a matter of general practice adopted by the financing
bank in such cases.

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Mar 31, 2024

SIGNIFICANT ACCOUNTING POLICIES COMPANY OVERVIEW

Logica Infoway Lid. (Formerly Known As Eastern Logica Infoway Limited) was formed in the year 1995. The company has established two branches one in Delhi and another in Hyderabad in the year 2015 and in Mumbai in the year 2016. The company is engaged in trading of Computer, Laptop, Mobile & Mobile Accessories in Head Office (Kolkata) and Mobiles & Laptops in branches.

1.01 Accounting Convention

The financial Statements are prepared in accordance with applicable Accounting Standards under the historical cost convention on accrual basis.

1.02 Revenue Recognition

All income and expenses are accounted for on accrual basis. Revenue is recognized when no significant uncertainties exist in relation to the amount of eventual receipts. Revenue from operations is net off all the indirect taxes.

1.03 Use of estimates

The preparation of financial statements requires the management of the company to make estimates and assumption that affect the reported balances of assets and liabilities and disclosures relating to contingent liabilities as at the date of the financial statements and the reported amount of revenues and expenses during the period. Difference between the actual results and estimates are recognized in the period in which the results are knowa/ materialized.

1.04 Property. Plant & Equipment

Property,Plant and Equipment are stated at cost net of Cenvat Credit, less accumulated depreciation and impairment loss, if any. Cost comprises of the purchase price and any attributable cost of bringing the asset to working condition for its intended use.

Depreciation:

Depreciation on Property.Plant & Equipment is provided on written down value method at the rates and in the manner prescribed in schedule II of the Companies Act, 2013.

1 05 Stock in Trade

Items of inventories are measured at lower of cost or net realizable value after providing for obsolescence, if any.

1.06 Investment

Investments that are intended to be held for not more than a year arc classified as current investment. All other investments are classified as long-term investments. Current investments arc carried at lower of cost & fair value determined on an individual investment basis. Long-term

Investments are carried at cost; provision for diminution in value is made only if, in the opinion ol the management, such a decline is permanent in nature.

1.07 F.molovee Benefit

The Company makes contribution to the defined benefit gratuity plan. The cost of providing benefits under the defined benefit obligations is calculated by Independent Actuary using the Projected Unit Credit method.

1.08 Provisions, Contingent liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow ot resources. Contingent liabilities are not recognized but arc disclosed in Notes. Contingent assets arc neither recognized nor disclosed in the financial statements.

1.09 Provision for Current Tax & Deferred l ax

a. Provision for current tax is made after taking into consideration benefits admissible under the provisions of Income tax Act. 1961.

b. Deferred tax resulting from "timing differences” between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date. The deferred tax assets is recognized and carried forward only to the extent the management has estimated that there is a reasonable/virtual certainty that the asset will be realized in future.