ಕಂಪನಿಯ ಅಕೌಂಟಿಗ್ ಪಾಲಿಸಿ Infinity Infoway Ltd.

Mar 31, 2026

1.3 Significant Accounting Policies:

1.3.1 Basis of Preparation and Presentation

The Financial Statements have been prepared on the historical cost basis except for following
assets and liabilities which have been measured at fair value amount:

(a) Certain Financial Assets and Liabilities (including derivative instruments if any), and

(b) Defined Benefit Plans - Plan Assets

(c) Certain Property Plant And Equipment Which are Revalued (if any).

The financial statements of the Company have been prepared to comply with the
Indian Accounting standards find AS’), including the rules notified under the relevant
prov isions of the Companies Act. 2013.

The Company’s Financial Statements are presented in Indian Rupees, which is also its
functional currency

1.3.2 Fair Value Measurement

Some of the Company’s accounting policies and disclosures require the measurement
of fair values, for both financial and non-llnancial assets and liabilities.

The Company lias an established control framework with respect to the measurement of
fair values. This includes a financial reporting team that has overall responsibility for
overseeing all significant fair value measurements, including Level 3 fair values.

The financial reporting team regularly reviews significant unobservable inputs and
valuation adjustments. If third party information, such as pricing services, is used to
measure fair values, then the financial reporting team assesses the evidence obtained from
the third parties to support the conclusion that these valuations meet the requirements of
hid AS. including the level in the fair value hierarchy in which the valuations should be
classified.

Fair values arc categoOriscd into different levels in a fair value hierarchy based on the
inputs used in the valuation techniques as follows.

Level 1; quoted prices (unadjusted) in active markets lor identical assets or liabilities.

Level 2: inputs other than quoted prices included in Level I that are observable for the
asset or liability, cither directly (i.c. as prices) or indirectly (i.c. derived from prices).

Level 3: inputs for the asset or liability that are not based on observable market data
(unobservable inputs).

When measuring the fair value of an asset or a liability, the Company uses observable
market data as far as possible. If the inputs used to measure the fair value of an asset or
a liability fall into different levels of the lair value hierarchy, then the fair value
measurement is categorized in its entirety in the same level of the fair value hierarchy
as the lowest level input that is significant to the entire measurement.

The Company recognizes transfers between levels of the fair value hierarchy at the end of
the reporting period during which the change has occurred.

1.3.3 Current and Non-Current Classification

The Company presents assets and liabilities in the Balance Sheet based on Current
Non- Current classification.

An asset is treated as Current when it is

- Expected to be realised or intended to be sold or consumed in normal operating cycle;

- Held primarily for the purpose of trading;

- Expected 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 alter the reporting period.

All other assets arc classified as non-current.

A liability is current when:

- It is expected to be settled in normal operating cycle;

- It is held primarily for the purpose of trading;

- It is due to be settled within twelve months alter the reporting period, or

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

The Company classifies all other liabilities as non-current.

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

1.3.4 Properly, Plant and Equipment
(a) Tangible Assets

Property, Plant and Equipment are stated at cost, net of recoverable taxes, trade discount
and rebates less accumulated depreciation and impairment losses, if any. Such cost
includes purchase price, borrowing cost and any cost directly attributable to bringing the
assets 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 costs are included in die asset’s carrying amount or recognised as a

separate asset, as appropriate, only when it is probable that future economic benefits

associated with the item will flow to the entity and the cost can be measured reliablv.

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Property, Plant and Equipment which are significant to the total cost of that item of
Property. Plant and Equipment and having different useful life arc accounted
separately.

Other Indirect Expenses incurred relating to project, net of income earned during the
project development stage prior to its intended use, arc considered as pre-operative
expenses and disclosed under Capital Work-in-Progress.

Depreciation

Depreciable amount for assets is the cost of an asset, or other amount substituted for cost,
less its estimated residual value. Based on technical evaluation carried out by management,
depreciation on fixed assets has been provided on the Written down value method as
per the useful life and residual value prescribed Schedule II to the Companies Act, 2013.
Residual value has been assessed at 5% of cost of the assets.

Depreciation and amortization on addition to fixed assets is provided on pro-rata basis
from the date the assets are ready for intended use. Depreciation and amortization on sale/
discard from fixed assets is provided for up to the date of sale, deduction or discard
of lixed assets as the ease may be.

Individual assets costing Rs. 5.000 or below are depreciated/ amortized in hill in the
year of purchase. Depreciation/ Amortization method and useful lives are reviewed at each
reporting date. If the useful life of an asset is estimated to be significantly different
from previous estimates, the depreciation/ amortization period is changed accordingly.

(c) Intangible Assets

Intangible Assets are stated at cost of acquisition net of recoverable taxes, trade
discount and rebates less accumulated amortisation/depletion and impairment losses, if
any. Such cost includes purchase price, borrowing costs, and any cost directly attributable
to bringing the asset to its working condition for the intended use, net charges on foreign
exchange contracts and adjustments arising from exchange rate variations attributable to
the Intangible Assets.

Subsequent costs arc included in the asset''s carrying amount or recognised as a
separate asset, as appropriate, only when it is probable that future economic benefits
associated with the item will flow to the entity and the cost can be measured reliably.

Amortization

Hie amortization expenses on Intangible assets with the finite lives are recognized in
the Statement of Profit and Loss. The Company''s intangible assets comprises assets
with finite useful life which are amortised on a Written down value over the period of their
expected useful life.

The amortization period and the amortization method for an intangible asset with finite
useful life is reviewed at each financial year end and adjusted prospectively, if appropriate.

1.3.5 Impairment of Non-Financial Assets - Property, Plant and Equipment and Intangible

Assets

The Company assesses at each reporting date ns to whether there is any indication that any
Property, Plant and Equipment and Intangible Assets or group of Assets, called Cash
Generating Units (CGU) may be impaired. If any such indication exists, the recoverable
amount of an asset or CGU is estimated to determine the extent of impairment, if any.
When it is not possible to estimate the recoverable amount of an individual asset, the
Company estimates the recoverable amount of the CGU to which the asset belongs.

An impairment loss is recognised in the Statement of Profit and l.oss to the extent, asset’s
carrying amount exceeds its recoverable amount. The recoverable amount is higher of an
asset’s fair value less cost of disposal and value in use. Value in use is based on the
estimated future cash flows, discounted lo their present value using pre-tax discount rate
that reflects current market assessments of the time value of money and risk specific to the
assets.

The impairment loss recognised in prior accounting period is reversed if there has been a
change in the estimate of recoverable amount.

There are no losses from impairment of assets to be recognized in the financial statements.

1.3.6 Investment Properties

Investment properties (if any), are measured initially at cost, including transaction
costs. Subsequent to initial recognition. Items of investment properties are measured at
cost less accumulated depreciation/ amortization and accumulated impairment losses.
Cost includes expenditure that is directly attributable to bringing the asset to the
location and condition necessary for its intended use. Investment properties are depreciated
on straight line method on pro-rata basis at the rates specified therein. Subsequent
expenditure including cost of major overhaul and inspection is recognized as an
increase in the carrying amount of the asset when it is probable that future economic
benefits associated with the item will flow to the Company and the cost of the item
can be measured reliably.

Long-term investments arc stated at cost. Provision for diminution in the value of Long
Term investment is being made only if such decline is of other than temporary in nature in
the opinion of management. Current investments arc stated at lower of cost or fair value.

1.3.7 Borrowing Costs

Borrowing costs include exchange differences arising from foreign currency borrowings
to the extent they are regarded as an adjustment to the interest cost. Borrowing costs that
are directly attributable to the acquisition or construction of qualifying assets are
capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes
substantial period of time to get ready for its intended use.

Interest income earned on the temporary investment of specific borrowings pending their
expenditure on qualifying assets is deducted from the borrowing costs eligible for
Capitalisation.

All other borrowing costs are charged to the Statement of Profit and Loss lor the period for

which they are incurred.

*

1.3.8 Employee Benefits

(A) Short-Term Employee Benefits

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

(B) Post-Employment Benefits

(i) Defined Contribution Plans

The Company recognizes contribution payable to the provident fund scheme as an
expense, when an employee renders the related service. If the contribution payable to the
scheme for sendee received before the balance sheet date exceeds the contribution already
paid, the deficit payable to the scheme is recognized as a liability. If the contribution
already paid exceeds the contribution due for sendees received before the balance sheet
date, then excess is recognized as an asset to the extent that the pre-payment will lead to a
reduction in future payment ora cash refund.

(ii) Defined Benefit Plans

(a) Gratuity Scheme: The Company pays gratuity to the employees who have completed
five years of service with the Company at the time of resignation/superannuation. The
gratuity is paid % 15 days basic salary and dearness allowances for every completed
year of service as per the Payment of Gratuity Act, 1972. The liability in respect of
gratuity and other post-employment benefits is calculated using the Projected Unit Credit
Method and spread over the period during which the benefit is expected to be derived from
employees'' services.

Remeasurement gains and losses arising from adjustments and changes in actuarial
assumptions are recognised in the period in which they occur in Other Comprehensive
Income.

1.3.9 Revenue Recognition

The Company’s contracts with customers include promises to transfer multiple
products and services to a customer. Revenues from customer contracts are considered for
recognition and measurement when the contract has been approved, in writing, by the
parties to the contract, the parties to contract arc committed to perform their respective
obligations under the contract, and the contract is legally enforceable. The Company
assesses the services promised in a contract and identifies distinct performance
obligations in the contract. Identification of distinct performance obligations to determine
the deliverables and the ability of the customer to benefit independently from such
deliverables, and allocation of transaction price to these distinct performance obligations
involves significant judgment.

Fixed-price maintenance revenue is recognized ratably on a straight-line basis when
services arc performed through an indefinite number of repetitive acts over a specified
period. Revenue from fixed-price maintenance contract is recognized ratably using a
pereentage-ol-completion method when the pattern of benefits from the services rendered
to the customer and Company’s costs to fillfil the contract is not even through the
period of the contract because the services are generally discrete in nature and not
repetitive. The use of method to recognize the maintenance revenues requires judgment
and is based on the promises in the contract and nature of the deliverables.

The Company uses the percentage-of-completion method in accounting for other fixed-
price contracts. Use of the perccntage-of-compiction method requires the Company to
Determine the actual efforts or costs expended to date as a proportion of the
estimated total efforts or costs to be incurred. Efforts or costs expended have been
used to measure progress towards completion as there is a direct relationship between
input and productivity. The estimation of total efforts or costs involves significant
judgment and is assessed throughout the period of the contract to reflect any changes
based on the latest available information.

Provisions for estimated losses, if any, on incomplete contracts arc recorded in the period
in which such losses become probable based on the estimated efforts or costs to complete
the contract.

Dividend Income

Dividend Income is recognised when the Company’s right to receive the amount has
been established.

Surplus / (Loss) on disposal of Property, Plants and Equipment / Investments

Surplus or loss on disposal of property, plants and equipment or investment is recorded on
transfers of title from the Company, and is determined as the difference between the
sales price and carrying value of the property, plants and equipment or investments and
other incidental expenses.

Rental Income

Rental income arising from operating lease on investments properties is accounted for on
a straight - line basis over the lease term except the case where the incremental lease
reflects inflationary effect and rental income is accounted in such case by actual rent for
the period.

Insurance Claim

Claim receivable on account of insurance is accounted for to the extent the Company is
reasonably certain of their ultimate collections.

Other Income

Revenue from other income is recognized on accrual basis.

1.3.10 Foreign Currency Transactions and Translation

Transactions in foreign currencies are recorded at the exchange rate prevailing on the date
of transaction. Monetary assets and liabilities denominated in foreign currencies are
translated at the functional currency closing rates of exchange at the reporting date.
Exchange differences arising on settlement or translation of monetary items are recognised
in Statement of Profit and Loss except to the extent of exchange differences which are
regarded as an adjustment to interest costs on foreign currency borrowings that are
directly attributable to the acquisition or construction of qualifying assets which are
capitalised as cost of assets.

Non-monctary items that arc measured in terms of historical cost in a foreign currency are
recorded using the exchange rates at the date of the transaction. Non-monctary items
measured at fair value in a foreign currency are translated using the exchange rates at the
date when the fair value was measured. The gain or loss arising on translation of non-
monctary items measured at fair value is treated in line with the recognition of the gain or
loss on the change in fair value of the item (t.e., translation differences on items whose fair
value gain or loss is recognised in Other Comprehensive Income or Statement of Profit and
Loss are also recognised in Other Comprehensive Income or Statement of Profit and Loss,
respectively).

1.3.11 Government Grants and Subsidies

Grants in the nature of subsidies which are non-refundable arc recognized as income where
there is reasonable assurance that the Company will comply with all the necessary
conditions attached to them. Income from grants is recognized on a systematic basis
over periods in which the related costs that are intended to be compensated by such grants
arc recognized.

Refundable government grants are accounted in accordance with the recognition and
measurement principle of Ind AS 109, "Financial Instruments”. It is recognized as
income when there is a reasonable assurance that the Company will comply with all
necessary conditions attached to the grants. Income from such benefit is recognized on a
systematic basis over the period of the giants during which the Company recognizes
interest expense corresponding to such grants.

1.3.12 Financial Instruments - Financial Assets
(A) Initial Recognition and Measurement

All Financial Assets are initially recognised at lair value. Transaction costs that are
directly attributable to the acquisition or issue of Financial Assets, which arc not at Fair
Value Through Profit or Loss, are adjusted to the fair value on initial recognition.
Purchase and sale of Financial Assets are recognised using trade date accounting.

(B) Subsequent Measurement

a) Financial Assets measured at Amortised Cost (AC)

A Financial Asset is measured at Amortised Cost if it is held within a business model
whose objective is to hold the asset in order to collect contractual cash flows and the
contractual terms of the Financial Asset give rise to cash flows on specified dates that
represent solely payments of principal and interest on the principal amount
outstanding.

b) Financial Assets measured at Fair Value Through Other Comprehensive Income
(FVTOC1)

A Financial Asset is measured at FVTOCI if it is held within a business model whose
objective is achieved by both collecting contractual cash flows and selling Financial
Assets and the contractual terms of the Financial Asset give rise on specified dates to cash
flows that represents solely payments of principal and interest on the principal amount
outstanding.

Further, the Company, through an irrevocable election at initial recognition, has measured
certain investments in equity instruments at FVTOCI. The Company has made such
election on an instniment-by-instrument basis. These equity instruments are neither held
for trading nor arc contingent consideration recognized under a business combination.
Pursuant to such irrevocable election, subsequent changes in the fair value of such
equity instruments are recognized in OCL However, the Company recognizes dividend
income from such instruments in the Statement of Profit and Loss.

c) Financial Assets measured at Fair Value Through Profit or Loss (FVTPL)

A Financial Assei which is not classified in anv of the above categories is measured at
FVTPL. Financial assets are reclassified subsequent to their recognition, if the Company
changes its business model for managing those financial assets. Changes in business model
arc made and applied prospectively from the reclassification date which is the first day
of immediately next reporting period following the changes in business model in
accordance with principles laid down under Ind AS 109 - Financial Instruments.

(C) Investments

Investments are classified in to Current or Non-Current Investments. Investments that arc
readily realizable and intended to be held for not more than a year from the date of
acquisition are classified as Current Investments. All other Investments are classified as
Non - Current Investments. However, that part of Non - Current Investments which arc
expected to be realized within twelve months from the Balance Sheet date is also presented
under “Current Investments” under “Current portion of Non-Current Investments” in
consonance with Currcnt/Non-Current classification of Schedule - III of the Act.

All the equity investment which covered under the scope of Ind AS 109, “Financial
Instruments" is measured at the fair value. Investment in Mutual Fund is measured at fair
value through profit and loss (FVTPL). Trading Instruments arc measured al fair
value through profit and loss (FVTPL).

(D) Investment in Subsidiaries, Associates and Joint Ventures

The Company has accounted for its investments in Subsidiaries, associates and joint
venture at cost less impairment loss (if any).

(E) Impairment of Financial Assets

In accordance with Ind AS 109. the Company uses ‘Expected Credit Loss'' (ECL)
model, for evaluating impairment of Financial Assets other than those measured at Fair
Value Through Profit and Loss (FVTPL).

1.3.13 Financial Instruments - Financial Liabilities

(A) Initial Recognition and Measurement

All Financial Liabilities are recognised at fair value and in case of borrowings, net of
directly attributable cost. Fees of recurring nature are directly recognised in the Statement
of Profit and Loss as finance cost.

(B) Subsequent Measurement

Financial Liabilities are carried at amortised cost using the effective interest method.
For trade and other payables maturing within one year from the balance sheet date,
the carrying amounts approximate fair value due to the short maturity of these instruments.

1.3.14 Derivative Financial Instruments and Hedge Accounting

The Company enters into derivative contracts in the nature of forward currency contracts
with external panics to hedge its foreign currency risks relating to foreign currency
denominated financial assets measured at amortised cost.

The Company formally establishes a hedge relationship between such forward currency
contracts (‘hedging instrument'') and recognised financial assets (‘hedged item’)
through a formal documentation at the inception of the hedge relationship in line with (lie
Company’s Risk Management objective and strategy.

The hedge relationship so designated is accounted for in accordance with the
accounting principles prescribed for a cash flow hedge under Ind AS 109, ‘Financial
Instruments’.

Recognition and measurement of cash flow hedge:

The Company strictly uses foreign currency forward contracts to hedge its risks associated
with foreign currency fluctuations relating to certain forecasted transactions. As per Ind
AS 109 - Financial Instruments, foreign currency forward contracts are initially measured
at fair value and are rc-mcasurcd at subsequent reporting dates. Changes in the fair value
of these derivatives that are designated and effective as hedges of future cash flows arc
recognised in hedge reserve (under reserves and surplus) through other comprehensive
income and the ineffective portion is recognised immediately in the statement of profit
and loss.

The accumulated gains ¹ losses on the derivatives accounted in hedge reserve arc
transferred to the statement of profit and loss in the same period in which gains /
losses on the underlying item hedged are recognised in the statement of profit and
loss.

Derecognition:

Hedge accounting is discontinued when the hedging instrument expires or is sold,
terminated, or exercised, or no longer qualifies for hedge accounting. When hedge
accounting is discontinued for a cash flow hedge, the net gain or loss will remain in
hedge reserve and he reclassified to the statement of profit and loss in the same period or
periods during which the formerly hedged transaction is reported in the statement of
profit and loss. If a hedged transaction is no longer expected to occur, the net cumulative
gains / losses recognised in hedge reserve is transferred to the statement of profit and loss.

Fair Value Hedge:

The Company designates derivative contracts or non-derivative Financial
Assets/Liabilities as hedging instruments to mitigate the risk of change in fair value of
hedged item due to movement in interest rates, foreign exchange rates and commodity
prices.

Changes in the fair value of hedging instruments and hedged items that are designated and
qualify as fair value hedges are recorded in the Statement of Profit and Loss. If the hedging
relationship no longer meets the criteria for hedge accounting, the adjustment to the
carrying amount of a hedged item lor which the effective interest method is used is
amortised to Statement of Profit and Loss over the period of maturity.

1.3.15 Derecognition of Financial Instruments

The Company derecognises a Financial Asset when the contractual rights to the cash
flows from the Financial Asset expire or it transfers the Financial Asset and the transfer
qualifies for derecognition under Ind AS 109. A Financial liability (ora part of a financial
liability) is derecognised from the Company’s Balance Sheet when the obligation
specified in the contract is discharged or cancelled or expires.

1.3.16 Financial Instruments - Offsetting

Financial Assets and Financial Liabilities are offset and the net amount is presented in
the balance sheet when, and only when, the Company has a legally enforceable right to set
off the amount and it intends, either to settle them on a net basis or to realise the asset and
settle the liability simultaneously.

1.3.17 Taxes on Income

The tax expenses for the period comprises of current tax and deferred income tax. Tax
is recognised in Statement of Profit and Loss, except to the extent that it relates to
items recognised in the Other Comprehensive Income. In which case, the tax is also
recognised in Other Comprehensive Income.

(a) Current Tax

Current tax assets and liabilities are measured at the amount expected to be recovered from
or paid to the Income Tax authorities, based on tax rates and laws that arc enacted at
the Balance sheet dale.

(b) Deferred Tax

Deferred tax is recognised on temporary differences between the carrying amounts of
assets and liabilities in the Financial Statements and the corresponding tax bases used
in the computation of taxable profit.

Deferred tax assets arc recognised to the extent it is probable that taxable profit will be
available against which the deductible temporary* differences, and the carry forward of
unused tax losses can be utilised. Deferred tax liabilities and assets are measured at the tax
rates that are expected to apply in the period in which the liability is settled or the asset
realised, based on tax rates (and tax laws) that have been enacted or substantively
enacted by the end of the reporting period. The carrying amount of Deferred tax liabilities
and assets are reviewed at the end of each reporting period.

Presentation

The Company offsets current tax assets and current tax liabilities, where it has a legally
enforceable right to set off die recognized amounts and where it intends either to
settle on a net basis, or to realize the asset and settle the liability simultaneously. In
case of deferred tax assets and deferred tax liabilities, the same are offset if the Company
has a legally enforceable right to set off corresponding current tax assets against current
tax liabilities and the deferred tax assets and deferred tax liabilities relate to income
taxes levied by the same tax authority on the Company.

1.3.18 Segment Reporting

Segments arc identified having regard to the dominant source and nature of risks and
returns and the internal organization and management structure. The company
primarily operates in customized and integrated online ERP Software for industries like
manufacturing, education, retail, construction, supply chain management (SCM). customer
relationship management (CRM), sales force and many more, hi view of which the
disclosure requirement of segment reporting is not applicable to company.

1.3.19 Research and Development

Revenue expenditure pertaining to research is charged to the Statement of Profit and Loss
as and when incurred.

Development costs are capitalised as an intangible asset if it can be demonstrated that the
project is expected to generate future economic benefits, it is probable that those future
economic benefits will flow to the entity and the costs of the asset can be measured
reliably, else it is charged to the Statement of Profit and Loss.

1.3.20 Earnings per Share

Basic earnings per share is calculated by dividing the net profit after tax by the
weighted average number of equity shares outstanding during the year adjusted for bonus
element in equity share. Diluted earnings per share adjusts the figures used in
determination of basic earnings per share to take into account the conversion of all dilutive
potential equity shares. Dilutive potential equity shares are deemed converted as at the
beginning of the period unless issued at a later date.