Influx Healthtech Ltd. நிறுவனத்தின் கணக்கியல் கொள்கைகள்

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

These financial statements have been prepared in accordance with the generally accepted accounting principles in India 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, 2021 (as 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
ill (Division I) to the Companies Act, 2013. Based on the nature of products and the time between the acquisition of assets for processing and their
realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 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 Financial 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. The 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 mon-current classification

The assets and liabilities in the balance sheet are presented based on current and non-current classification:

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

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

E Property, Plant & Equipment and Intangible Assets

(a) Tangible Assets

Property, Plant and Equipment are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. Cost
comprises of the purchase price including import duties and non-refundable taxes, and directly attributable expenses incurred 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 Equipment are recognised in 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 are 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 are 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 amortization 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 of 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 its disposal at the end of its useful life. For the purpose
of assessing impairment, the recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows
that are largely independent of those from other assets or groups of assets. The smallest identifiable group of assets that generates cash
inflows from continuing use that are largely independent of the cash inflows from other assets or groups of assets, is considered as a cash
generating unit (CGU). An asset 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 date as to whether there is any indication that 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) Capital Work-in-Progress (CWIPl

Capital Work-in-Progress comprises the cost of assets that are in the process of construction/erection and are not yet ready for their
intended use as at the Balance Sheet date. CWIP is carried at cost, which includes direct costs and other directly attributable
expenditures. Upon completion and readiness for intended use, the accumulated cost is transferred to the respective head of Property,
Plant and Equipment.

(d) Intangible Assets Under Development

Intangible Assets Under Development represents expenditure incurred on intangible assets that are under development and not yet
ready for their intended use as at the Balance Sheet date. Such expenditure is capitalised only when the Company can demonstrate
technical feasibility, intention and ability to complete the asset. Upon completion readiness for intended use, the accumulated cost is
transferred to Intangible Assets.

(e) Depreciation

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

Intangibie assets are amortised on a straight line basis over their estimated useful lives. A rebuttable presumption that the useful life of
an intangibie asset will not exceed ten years from the date when the asset is available for use is considered by the management. The
amortisation period and the amortisation method are reviewed at least at each financial year end. If 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 :

Types Of Asset Useful life as per Schedule I!

Building 30

Plant and Machinery 15

Furniture and Fixtures 10

Office Equipment 5

Motor Vehicles 8

Computer Software 3 to 10

F Non-Current Investments

Non-current investments are investments other than current investments and are intended to be held for more than one year from the
date of acquisition. Non-current investments are carried at cost less provision for diminution, if any.

Provision for diminution in value is made only if such diminution is considered other than temporary in nature, and is determined
separately for each individual investment.

On disposal, the difference between the carrying amount and net disposal proceeds is recognised in the Statement of Profit and Loss.

G Current Investments

Current investments are investments that are by nature readily realisable and intended to be held for not more than one yearfrom the
date of acquisition.

Current investments are carried at the lower of cost and fair value, determined on an individual investment basis.

Any reduction to fair value and any reversals of such reductions are recognised in the Statement of Profit and Loss.

H Inventories

Inventories of Raw Materials are valued at lower of cost or net realizable value. The method used for vaiuation or determination of cost is
as per First-in-First-Out (FIFO) basis,

Inventories of stores, regular spares, fuel and packing materia! are valued at cost or net realizable value whichever is lower. First in First
Out (FIFO) method is used for valuation purpose. Inventories of finished goods are vaiued 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 - 2 on "Vaiuation of Inventories".

! 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 with original maturities of three months or less.

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.