Note 22: Significant Accounting Policies And Notes To Accounts

A. COMPANY INFORMATION

The Company was originally formed & incorporated as a Private
Limited Company in the state of Delhi under the Companies Act,

bearing Corporate Identity Number U73100DL2009PTC194077 issued
by the Registrar of Companies, Delhi. Subsequently, the company
was converted into a Public Limited Company vide a special
resolub''on passed by our shareholders at the Extra Ordinary General
Meeh''ng held on 3 September 2022. The name of the company was
changed to Infollion Research Services Limited under the issuance of
a Fresh Certificate of Incorporation dated by October 12th, 2022
Registrar of Companies, Delhi with Corporate Identification Number
is U73100DL2009PLC194077. Additionally, the Company listed its
shares on the SME Platform of the National Stock Exchange of India
Limited (''NSE EMERGE’) on June 08, 2023. The Registered Office of

B. BASIS OF PREPRATION OF FINANCIAL STATEMENTS

BASIS OF PREPARATION AND MEASUREMENT

The accompanying standalone financial statements are prepared in
compliance with the requirements under Section 133 of the
Companies Act, 2013 ("the Act"), read with the Companies
(Accounting Standards) Rules, 2021 as amended ("Accounting
Standards") and other accounting principles generally accepted in
India., under the historical cost convention, on the accrual basis of
accounting.

These standalone financial statements are prepared in ? lakhs, which
is the Company''s functional and presentation currency. All amounts
have been rounded-off to the nearest lakhs and two decimals except
share data and per share data, unless otherwise stated.

All the assets and liabilities have been classified as current or non-
current as per the Company’s normal operating cycle and other
criteria set out in Schedule III of the Companies Act, 2013. Based on
the nature of activities, the Company has ascertained its operating
cycle as 12 months for current and non-current classification of
assets and liabilities.

Current and non-current classification

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
Schedule III to the Companies Act, 2013. Based on the nature of
products/services and the time between the acquisition of assets for
processing and their realization in cash and cash equivalents, the
Company has ascertained its operating cycle to be within 12 months
for the purpose of current and non-current classification of assets
and liabilities.

An asset shall be classified as current when it satisfies any of the
following criteria: (a) it is expected to be realized in, or is intended for
sale or consumption in, the company''s normal operating cycle; (b) it
is held primarily for the purpose of being traded; (c) it is expected to
be realized within twelve months after the reporting date; or (d) it is

C. SIGNIFICANT ACCOUNTING POLICIES

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

1. Property, Plant and Equipment and Intangible Assets

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

the Company has changed from the state of Delhi to state of Haryana
and the same has been approved by Registrar of Companies, Delhi
vide its Certificate of Registration dated November 28, 2024 and the
CIN has been accordingly updated as L73100HR2009PLC126450.

The company is mainly engaged in the business of providing service
of on-demand contingent hiring under the brand name of
“INFOLLION". The Company has a registered office at the 5th Floor,
Tower C, Unitech Cyber Park, Sector-39, Gurugram, Haryana -
122001.

cash or cash equivalent unless it is restricted from being exchanged
or used to settle a liability for at least twelve months after the
reporting date. All other assets shall be classified as non-current.

A liability shall be classified as current when it satisfies any of the
following criteria: (a) it is expected to be settled in the company''s
normal operating cycle; (b) it is held primarily for the purpose of
being traded; (c) it is due to be settled within twelve months after
the reporting date; or (d) the company does not have an
unconditional right to defer settlement of the liability for at least
twelve months after the reporting date. Terms of a liability that
could, at the option of the counterparty, result in its settlement by
the issue of equity instruments do not affect its classification. All
other liabilities shall be classified as non-current.

Deferred tax assets and liabilities are classified as non-current assets
and non- current liabilities respectively.

KEY ACCOUNTING ESTIMATES AND JUDGEMENTS

The preparation of financial statements in conformity with IGAAP
requires management to make judgments, estimates and
assumptions that affect the application of accounting policies and
reported amounts of assets and liabilities, the disclosure of
contingent liabilities at the date of financial statements and the
results of operations during the reporting periods. Examples of such
estimates include useful life of property, plant and equipment and
intangible assets, future obligations under employee benefits and
income taxes etc. Management believes that the estimates used in
the preparation of these financial statements are prudent and
reasonable. Actual results could vary from these estimates. Estimates
and underlying assumptions are reviewed on an ongoing basis.
Appropriate changes in estimates are made as the management
becomes aware of the changes in circumstances surrounding the
estimates. Any revision to accounting estimates is recognized
prospectively in current and future periods.

associated with the item will flow to the Company and the cost of
item the cost of item can be measured reliably.

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.

Intangibles Assets — Intangible assets are carried at cost less
accumulated amortisation and impairment losses, if any. Internally
generated assets for which the cost is clearly identifiable are
capitalised at cost. Research expenditure is recognised as an expense
when it is incurred. Development costs are capitalised only after the
technical and commercial feasibility of the asset for sale or use has
been established. Thereafter, all directly attributable expenditure
incurred to prepare the asset for its intended use are recognised as
the cost of such assets.

Employee benefits relating to employees directly engaged in the
development of software are capitalised as Intangible Assets under
Development, to the extent such expenditure qualifies for
capitalisation under the applicable accounting standards.

Intangibles Assets Under Development — Expenditure directly
attributable to Droiects under implementation is classified as CWIP/

Intangible Assets under Development and capitalised under the
appropriate heads upon completion and readiness for intended use.
Capital advances relating to such projects are disclosed under long
term loans and advances. Depreciation will be charged as per law
after the product is ready and put to use.

Depreciation and amortisation — Depreciation on property, plant,
and equipment is provided on a prorated basis on a Written Down
Value 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.

Amortisation on Intangible under development will be charged as per
law after the product is ready and put to use.

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 in respect of services completed during the reporting
period, for which invoices have not yet been raised as at the
reporting date, is recognised as revenue from operations as unbilled
revenue.

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.

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 income¹â€™ in the Statement of Profit and Loss.

Investments in short-term liquid assets qualifying as cash and cash
equivalents are included under cash and cash equivalents. Gains on
such investments are recognised in the Statement of Profit and Loss
based on the difference between their carrying value and the value
determined as at the reporting date.

3. Employee benefits

(i) Short-term employee benefits — All employee benefits falling due
within twelve months of the end of the period in which the
employees render the related services are classified as short-term
employee benefits, which include benefits such as salaries, wages
and bonus etc. and are recognized as expenses in the statement of
profit and loss in the period in which the employee renders the
related service and measured accordingly.

(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 is 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: For defined benefit plans, is recognized in the
books of account based on actuarial valuation using projected unit
credit method as at balance sheet date by an independent actuary.
Actuarial gains and losses are immediately recognized in the
statement of profit and loss as an income or expense. The defined
benefit obligation recognized in the balance sheet represents the
present value of the defined benefit obligation.

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.

i) Current Tax — Current tax is measured at the amount expected to
be paid to (recovered from) the taxation authorities, using the
applicable tax rates and tax laws.

ii) Deferred Tax — Deferred tax charge or credit reflects the tax
effects of timing differences between accounting income and taxable
income for the current year and reversal of timing differences for

earlier years. The deferred tax charge or credit and the
corresponding deferred tax liabilities or assets are recognized using
the tax rates that have been enacted or substanh''vely enacted by the
balance sheet date. Deferred tax assets are recognized only to the
extent there is reasonable certainty that the assets can be realized in
future; however, where there is unabsorbed depreciation or carry
forward of losses, deferred tax assets are recognized only if there is a
virtual certainty of realization of such assets. Deferred tax assets are
reviewed at each balance sheet date and are written-down or
written-up to reflect the amount that is reasonably/virtually certain
(as the case may be) to be realized.

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.

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.