Accounting Policies of Logiciel Solutions Ltd. Company

Mar 31, 2025

A Background of the company

Logiciel Solutions Limited is a specialized outsourced software development firm, delivering end-to-end custom software
solutions to enterprises and startups worldwide. Incorporated in 2011 as Logiciel Solutions Private Limited in Ludhiana,

Punjab, the Company was converted into a public limited company on December 14, 2024, and renamed Logiciel Solutions
Limited on January 31, 2025.

With core expertise in Cloud Engineering, AI/ML, Ul/UX Design, and Application Development, Logiciel leverages advanced
technologies to deliver high-performing, scalable digital solutions. Headquartered in Ludhiana, the Company operates through
a hybrid model with a central development center and a distributed remote engineering workforce across India.

A strong focus on innovation and early adoption of Artificial Intelligence tools across the development lifecycle enables
Logiciel to enhance speed, efficiency, and value for clients. The Company’s client-centric approach and consistent delivery
excellence have led to long-standing partnerships, including engagements spanning over a decade.

Logiciel Solutions is driven by a process-oriented culture and deep domain expertise, helping clients build, scale, and optimize
world-class digital products.

B Accounting policies

a. Basis of preparation

The financial statements of the company have been prepared in accordance with the Generally Accepted Accounting
Principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects
with the Companies (Accounts) Rules 2014 and the relevant provisions of the Companies Act, 2013. The financial statements
have been prepared on an accrual basis and under the historical cost convention. The accounting policies adopted in the
preparation of financial statements are consistent with those of previous year.

b. Basis of Accounting

The financial statements are prepared under the historical cost convention in accordance with the Generally Accepted
Accounting Principles in India and the provisions of the Companies Act, 2013.

c. Uses of Estimates

The presentation of financial statements in conformity with the Generally Accepted Accounting Principles requires estimates
and assumptions to be made that affect the reported amount of assets and liabilities (including contingent liabilities) on the
date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference
between the actual results and estimates are recognized in the period in which the results are known/ materialized.

e. Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue
can be reliably measured.

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Sale of Services: - Revenue from sale of services is recognized as the services are rendered based on agreements/arrangements
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Jt. Fixed Assets

i. Property, plant & equipment

PPE Fixed assets are stated at cost, less accumulated depreciation. Cost comprises the purchase price and any attributable cost
of bringing the asset to its working condition for its intended use. Borrowing costs relatingjo acquisition of fixed assets which
takes substantial period of time to get ready for its intended use are also included to tlyc extqit they relate tpi^pcnSShtiJl such
assets are ready to be put to use. ----V L

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ii. Intangible Asset

Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets
are carried at cost less accumulated amortization and accumulated impairment losses, if any. Gains or losses arising from de¬
recognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of
the asset and are recognized in the Statement of profit and loss when the asset is de-recognized.

g. Depreciation and Amortization

Depreciation on Property, Plant and Equipment is provided on Straight Line Method (SLM) on the basis of useful lives of the
asset considering the nature, estimated usage, operating conditions, past history of replacement anticipated technological
changes, manufacturers'' warranties and maintenance support.

Taking into account these factors, the Company has decided to retain the useful life hitherto adopted for various categories of
property, plant and equipments,which might be different from those prescribed in Schedule II of the Act.

h. Cash Flow Statement

Cash Flows are reported using indirect method, whereby profit before tax is adjusted for effects of transactions of non-cash
nature and any deferral or accruals of any past or future cash receipts or payments. The Cash flows from regular revenue
generating, financing and investing activity of the company are segregated.

i. Deferred Taxes

Tax expense comprises of current and deferred taxes. Current Income Tax is measured at the amount expected to be paid to
the tax authorities in accordance with the Indian Income Tax Act. Deferred Income Taxes reflect the impact of current year
timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier
years.

Deferred Income Tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the Balance Sheet
date. Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable
income will be available against which such deferred tax assets can be realized. If the Company has unabsorbed depreciation
or carry forward tax losses, deferred tax assets are recognized only if there is virtual certainty supported by convincing
evidence that such deferred tax assets can be realized against future taxable profits.

At each Balance Sheet date the Company re-assesses unrecognized deferred tax assets, if any. It recognizes unrecognized
deferred tax assets to the extent that it has become reasonably certain or virtually certain, as the case may be, that sufficient
future taxable income will be available against which such deferred tax assets can be realized. The carrying amount of deferred
tax assets are reviewed at each balance sheet date.

j. Earnings Per Share

Basic Earnings per Share are calculated by dividing the net profit or loss for the period attributable to Equity Shareholders
(after deducting preference dividends and attributable taxes, if any) by the weighted average number of Equity Shares
outstanding dunng the period. Partly paid Equity Share, if any is treated as a fraction of an Equity Share to the extent that
they were entitled to participate in dividends relative to a fully paid Equity Share during the reporting period. The weighted
average number of Equity Shares outstanding during the period is adjusted for events of bonus issue, bonus element in a rights
issue to existing shareholders, share split, and reverse share split (consolidation of shares), if any.