2.12 Provisions, Contingent liabilities, Contingent assets and Commitments:
Provisions are recognised when the Company has a present obligation (legal or constructive) as a
result of a past event, it is probable that an outflow of resources embodying economic benefits will
be required to settle the obligation and a reliable estimate can be made of the amount of the
obligation. The expense relating to a provision is presented in the statement of profit and loss.
If the effect of the time value of money is material, provisions are discounted using a current pre¬
tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used,
the increase in the provision due to the passage of time is recognised as a finance cost.
Contingent liability is disclosed in the case of:
• A present obligation arising from past events, when it is not probable that an outflow of
resources will be required to settle the obligation;
• A present obligation arising from past events, when no reliable estimate is possible;
• A present obligation arising from past events, unless the probability of outflow of resources is
remote.
Commitments include the amount of purchase order (net of advances) issued to parties for
completion of assets.
Provisions, contingent liabilities, contingent assets and commitments are reviewed at each
balance sheet date.
2.13 Employee Benefits
Retirement benefit in the form of provident fund, pension fund and superannuation fund are
defined contribution schemes. The Company has no obligation, other than the contribution
payable to such schemes. The Company recognises contribution payable to such schemes as an
expense, when an employee renders the related service. If the contribution payable to the
schemes for service received before the balance sheet date exceeds the contribution already paid,
the deficit payable to the schemes is recognised as a liability after deducting the contribution
already paid. If the contribution already paid exceeds the contribution due for services received
before the balance sheet date, then excess is recognised as an asset to the extent that the pre¬
payment will lead to, for example, a reduction in future payment or a cash refund.
The Company operates a defined benefit gratuity plan, which requires contributions to be made to
a separately administered fund. The Company's net obligation in respect of the gratuity benefit
scheme is calculated by estimating the amount of future benefit that employees have earned in
return for their service in the current and prior periods; that benefit is discounted to determine its
present value, and the fair value of any plan assets is deducted. The present value of the obligation
under such defined benefit plan is determined based on actuarial valuation by an independent
actuary using the Projected Unit Credit Method, which recognises each period of service as giving
rise to additional unit of employee benefit entitlement and measures each unit separately to build
up the final obligation.
The obligation is measured at the present value of the estimated future cash flows. The discount
rates used for determining the present value of the obligation under defined benefit plan are
based on the market yields on Government securities as at the balance sheet date. The Company
recognises the net obligation of a defined benefit plan in its balance sheet as an asset or liability.
Gains or losses through re-measurement of the net defined benefit liability / (asset) are recognised
in other comprehensive income and other components are recognise in the statement of profit
and loss. The effects of any plan amendments are recognised in statement of profit and loss.
Remeasurements, comprising of actuarial gains and losses and the return on plan assets (excluding
amounts included in net interest on the net defined benefit liability), are recognised immediately in
the balance sheet with a corresponding debit or credit to retained earnings through OCI in the
period in which they occur. Remeasurements are not reclassified to profit or loss in subsequent
periods.
Net interest is calculated by applying the discount rate to the net defined benefit liability or asset.
The Company recognises the following changes in the net defined benefit obligation as an
expense in the statement of profit and loss:
• Service costs comprising current service costs; and
• Net interest expense or income
Accumulated leave, which is expected to be utilised within the next 12 months, is classified as a
short-term employee benefit in accordance with the applicable accounting standards. The
Company measures the expected cost of such absences as the additional amount it expects to pay
as a result of the unused leave entitlement that has accumulated at the reporting date.
As per the Company's leave policy, accumulated leave is not encashable under any circumstances,
either during employment or upon termination. The leave can only be utilised through approved
time off from work. Employees are encouraged to avail of their accumulated leave within the
specified period to maintain work-life balance and operational efficiency. The Company does not
recognise a liability for unused leave that is not expected to result in future time off or does not
accumulate beyond a certain limit, in line with the policy governing carry-forward or lapse of
unutilised leave entitlements.
2.14 Financial instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial
liability or equity instrument of another entity.
a. Financial assets
Initial recognition and measurement
All financial assets are recognised initially at fair value plus, in the case of financial assets not
recorded at fair value through profit or loss, transaction costs that are attributable to the
acquisition of the financial asset.
Subsequent measurement
For purposes of subsequent measurement, financial assets are classified in four
categories:
• Financial assets at amortised cost.
• Financial assets at fair value.
When assets are measured at fair value, gains and losses are either recognised entirely in the
statement of profit and loss (i.e. fair value through profit or loss), or recognised in other
comprehensive income (i.e. fair value through other comprehensive income).
A financial asset that meets the following two conditions is measured at amortised cost (net of any
write down for impairment) unless the asset is designated at fair value through profit and loss
under fair value option.
• Business model test: The objective of the Company's business model is to hold the financial
asset to collect the contractual cash flows (rather than to sell the instrument prior to its
contractual maturity to realize its fair value changes).
• Cash flow characteristics test: The contractual terms of the financial asset give rise on
specified dates to cash flows that are solely payments of principal and interest on the principal
amount outstanding.
A financial asset that meets the following two conditions is measured at fair value through other
comprehensive income unless the asset is designated at fair value through profit and loss under
fair value option.
• Business model test: The financial asset is held within a business model whose objective is
achieved by both collected contractual cash flows and selling financial instruments.
• Cash flow characteristics test: The contractual terms of the financial asset give rise on
specified dates to cash flows that are solely payments of principal and interest on the principal
amount outstanding.
Derecognition
When the Company has transferred its rights to receive cash flows from the asset or has assumed
an obligation to pay the received cash flows in full without material delay to a third party under a
'pass-through' arrangement; it evaluates if and to what extent it has retained the risks and rewards
of ownership.
A financial asset (or, where applicable, a part of a financial asset or part of a Company of similar
financial assets) is primarily derecognised when:
• The rights to receive cash flows from the asset have expired, or
• Based on above evaluation, either (a) the Company has transferred substantially all the risks
and rewards of the asset, or (b) the Company has neither transferred nor retained substantially
all the risks and rewards of the asset, but has transferred control of the asset.
When it has neither transferred nor retained substantially all of the risks and rewards of the asset,
nor transferred control of the asset, the Company continues to recognise the transferred asset to
the extent of the Company's continuing involvement. In that case, the Company also recognises an
associated liability. The transferred asset and the associated liability are measured on a basis that
reflects the rights and obligations that the Company has retained.
Continuing involvement that takes the form of a guarantee over the transferred asset is measured
at the lower of the original carrying amount of the asset and the maximum amount of
consideration that the Company could be required to repay.
Impairment of financial assets
In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for
measurement and recognition of impairment loss on the following financial assets and credit risk
exposure:
a) Trade receivables that result from transactions those are within the scope of Ind AS 18
The application of simplified approach does not require the Company to track changes in
credit risk. Rather, it recognises impairment loss allowance based on lifetime ECLs at each
reporting date, right from its initial recognition.
For recognition of impairment loss on other financial assets and risk exposure, the Company
determines that whether there has been a significant increase in the credit risk since initial
recognition. If credit risk has not increased significantly, 12-month ECL is used to provide for
impairment loss. However, if credit risk has increased significantly, lifetime ECL is used. If, in a
subsequent period, credit quality of the instrument improves such that there is no longer a
significant increase in credit risk since initial recognition, then the entity reverts to recognising
impairment loss allowance based on 12-month ECL.
ECL is the difference between all contractual cash flows that are due to the Company in
accordance with the contract and all the cash flows that the entity expects to receive (i.e., all
cash shortfalls), discounted at the original EIR. When estimating the cash flows, an entity is
required to consider:
• All contractual terms of the financial instrument (including prepayment, extension, call
and similar options) over the expected life of the financial instrument. However, in rare
cases when the expected life of the financial instrument cannot be estimated reliably,
then the entity is required to use the remaining contractual term of the financial
instrument
• Cash flows from the sale of collateral held or other credit enhancements that are integral
to the contractual terms
ECL impairment loss allowance (or reversal) recognised during the period is recognised as
income/ expense in the statement of profit and loss. This amount is reflected in the statement
of profit and loss in other expenses. The balance sheet presentation for various financial
instruments is described below:
• Financial assets measured as at amortized cost, trade receivables and lease receivables:
ECL is presented as an allowance, i.e., as an integral part of the measurement of those
assets in the balance sheet. The allowance reduces the net carrying amount. Until the
asset meets write-off criteria, the Company does not reduce impairment allowance from
the gross carrying amount.
b. Financial Liabilities
Initial recognition and measurement
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value
through profit or loss or at amortised cost, as appropriate.
All financial liabilities are recognised initially at fair value and, in the case of loans and
borrowings, net of directly attributable transaction costs.
The Company's financial liabilities include trade payables, lease obligations, and other
payables.
Subsequent measurement
The measurement of financial liabilities depends on their classification, as described below:
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held for trading
and financial liabilities designated upon initial recognition as at fair value through profit or
loss. Financial liabilities are classified as held for trading if they are incurred for the purpose of
repurchasing in the near term. This category also includes derivative financial instruments
entered into by the Company that are not designated as hedging instruments in hedge
relationships as defined by Ind AS 109. Separated embedded derivatives are also classified as
held for trading unless they are designated as effective hedging instruments.
Gains or losses on liabilities held for trading are recognised in the profit or loss.
The Company has not designated any financial liability as at fair value through profit and loss.
Financial liabilities at amortised cost
After initial recognition, interest-bearing loans and borrowings and other payables are
subsequently measured at amortised cost using the EIR method. Gains and losses are
recognised in profit or loss when the liabilities are derecognised as well as through the EIR
amortisation process.
Amortised cost is calculated by taking into account any discount or premium on acquisition
and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance
costs in the statement of profit and loss.
Derecognition
A financial liability is derecognised when the obligation under the liability is discharged or
cancelled or expires.
c. Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the balance
sheet if there is a currently enforceable legal right to offset the recognised amounts and there
is an intention to settle on a net basis, to realise the assets and settle the liabilities
simultaneously.
d. Ordinary shares
Ordinary shares are classified as equity. Incremental costs directly attributable to the issuance
of new ordinary shares and share options are recognised as a deduction from equity, net of
any tax effects.
2.15 Segment Accounting
More than 90% of Company operations are only in one segment i.e. Business Process Outsourcing
services. This in the context of Indian Accounting Standard 108 on 'Operating Segments' is
considered to constitute one single primary segment. As the requirement to assess and disclose
reportable secondary segments, i.e., geographical segments, is applicable for the current financial
year, the Company has identified a reportable geographical segment in accordance with the
applicable accounting standards. The same has been disclosed in the annual report.
2.16 Cash and cash equivalents
Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term
deposits with an original maturity of three months or less, which are subject to an insignificant risk
of changes in value.
For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and
short-term deposits, as defined above, net of outstanding bank overdrafts as they are considered
an integral part of the Company's cash management.
2.17 Foreign currencies:
The Company's financial statements are presented in INR, which is also the Company's functional
currency. For each entity the Company determines the functional currency and items included in
the financial statements of each entity are measured using that functional currency.
Foreign currency transactions are recorded on initial recognition in the functional currency, using
the exchange rates at the date of the transaction. At each balance sheet date, foreign currency
monetary items are reported using the closing exchange rate.
Exchange differences that arise on settlement of monetary items or on reporting at each balance
sheet date of the Company's monetary items at the closing rate are recognised as income or
expense in the period in which they arise. Non-monetary items, which are measured in terms of
historical cost denominated in a foreign currency, are reported using the exchange rate at the date
of the transaction. Non-monetary items, which are measured at fair value denominated in a foreign
currency, are translated using the exchange rate at the date when such fair value was determined.
The gain or loss arising on translation of non-monetary items is recognised in line with the gain or
loss of the item that gave rise to translation difference (i.e. translation difference on items whose
gain or loss is recognised in other comprehensive income or the statement of profit and loss is also
recognised in other comprehensive income or the statement of profit and loss respectively)
The translation of financial statements of the foreign branch to the presentation currency is
performed for assets and liabilities using the exchange rate in effect at the balance sheet date and
for revenue, expense and cash flow items using the average exchange rate for the respective
periods. The gains or losses resulting from such translation are included in currency translation
reserves under other components of equity.
2.18 Earnings per equity share
The Company presents basic and diluted earnings per share ("EPS") data for its equity shares.
Basic EPS is calculated by dividing the profit or loss attributable to equity shareholders of the
Company by the weighted average number of equity shares outstanding during the period. The
diluted EPS is calculated on the same basis as basic EPS, after adjusting for the effects of potential
dilutive equity shares unless the effect of the potential dilutive equity shares is anti-dilutive.
2.19 Significant accounting judgments, estimates and assumptions.
The preparation of the Company's financial statements requires management to make
judgements, estimates and assumptions that affect the reported amounts of revenues, expenses,
assets and liabilities, and the accompanying disclosures, and the disclosure of contingent assets
and contingent liabilities. Although these estimates are based on the management's best
knowledge of current events and actions, uncertainty about these assumptions and estimates
could result in outcomes that require a material adjustment to the carrying amount of assets or
liabilities affected in future periods.
Estimates and assumptions
The key assumptions concerning the future and other key sources of estimation uncertainty at the
reporting date, that have a significant risk of causing a material adjustment to the carrying
amounts of assets and liabilities within the next financial year, are described below. The Company
based its assumptions and estimates on parameters available when the financial statements were
prepared. Existing circumstances and assumptions about future developments, however, may
change due to market changes or circumstances arising that are beyond the control of the
Company. Such changes are reflected in the assumptions when they occur.
A. Taxes
Uncertainties exist with respect to the interpretation of complex tax regulations and the
amount and timing of future taxable income. Given the wide range of business relationships
and the long-term nature and complexity of existing contractual agreements, differences
arising between the actual results and the assumptions made, or future changes to such
assumptions, could necessitate future adjustments to tax income and expense already
recorded. The Company establishes provisions, based on reasonable estimates, for possible
consequences of audits by the tax authorities of the respective countries in which it operates.
The amount of such provisions is based on various factors, such as experience of previous tax
audits and differing interpretations of tax regulations by the taxable entity and the
responsible tax authority. Such differences of interpretation may arise on a wide variety of
issues depending on the conditions prevailing in the Company's domicile.
B. Defined benefit plans (gratuity benefits)
The Company's obligation on account of gratuity is determined based on actuarial valuations.
An actuarial valuation involves making various assumptions that may differ from actual
developments in the future. These include the determination of the discount rate, future
salary increases and mortality rates. Due to the complexities involved in the valuation and its
long-term nature, these liabilities are highly sensitive to changes in these assumptions. All
assumptions are reviewed at each reporting date.
The parameter most subject to change is the discount rate. In determining the appropriate
discount rate, the management considers the interest rates of government bonds in
currencies consistent with the currencies of the post-employment benefit obligation.
The mortality rate is based on publicly available mortality tables for the specific countries.
Those mortality tables tend to change only at interval in response to demographic changes.
Future salary increases and gratuity increases are based on expected future inflation rates for
the respective countries. Further details about gratuity obligations are given in Refer Note 26.
C. Property, plant and equipment
The charge in respect of periodic depreciation is derived after determining an estimate of an
asset's expected useful life and the expected residual value at the end of its life. The useful
lives and residual values of the Company's assets are determined by management at the time
the asset is acquired, and are reviewed periodically, including at each financial year end. The
lives are based on historical experience with similar assets as well as anticipation of future
events, which may impact their life, such as changes in technology. Refer Point (e) for
estimated useful lives of property, plant and equipment. The carrying value of property, plant
and equipment has been disclosed at note 3.
D. Leases
The Company evaluates if an arrangement qualifies to be a lease as per the requirements of
Ind AS 116 and identification of lease requires significant judgement. Ind AS 116 additionally
requires lessees to determine the lease term as the non-cancellable period of lease adjusted
with any option to extend or terminate the lease, if the use of such option is reasonably
certain. The Company makes an assessment on the expected lease term on a lease-by-lease
basis and thereby assesses whether it is reasonably certain that any options to extend or
terminate the contract will be exercised. In evaluating the lease term, the Company considers
factors such as any significant leasehold improvements undertaken over the lease term, costs
relating to the termination of the lease and the importance of the underlying asset to the
Company's operations taking into account the location of the underlying asset and the
availability of suitable alternatives. The lease term in the future periods is reassessed to ensure
the lease term reflects the current economic circumstances.
2.20 Fair value measurement of financial instruments
When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot
be measured based on quoted prices in active markets, their fair value is measured using valuation
techniques including the DCF model. The inputs to these models are taken from observable
markets where possible, but where this is not feasible, a degree of judgement is required in
establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit
risk and volatility. Changes in assumptions about these factors could affect the reported fair value
of financial instruments. Refer Note 29 for further disclosures.
2.21 Business combinations
Business combinations have been accounted for using the acquisition method under the
provisions of Ind AS 103, Business Combinations.
The cost of an acquisition is measured at the fair value of the assets transferred, equity instruments
issued and liabilities incurred or assumed at the date of acquisition, which is the date on which
control is transferred to the Company. The cost of acquisition also includes the fair value of any
contingent consideration. Identifiable assets acquired and liabilities and contingent liabilities
assumed in a business combination are measured initially at their fair value on the date of
acquisition.
Business combinations between entities under common control is accounted for at carrying value.
Transaction costs that the Company incurs in connection with a business combination such as
finders' fees, legal fees, due diligence fees, and other professional and consulting fees are
expensed as incurred.
2.22 Cash flow statement
Cash flows are reported using the indirect method, whereby profit for the period is adjusted for the
effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating
cash receipts or payments and items of income or expenses associated with investing or financing
cash flows. The cash flows from operating, investing and financing activities of the Company are
segregated.
Rights and preferences attached to Equity Shares:
The Company has one class of equity shares having a par value of Rs.2/- each. Each shareholder is eligible for
one vote per share held. In the event of liquidation, the Equity Shareholders are eligible to receive the
remaining assets of the company after distribution of all preferential amounts in proportion to their
shareholding.
Aggregate number of bonus shares issued, shares issued for consideration other than cash and shares
bought back during the period of five years immediately preceding the reporting date
7,10,44,009 equity shares ( 83,58,250 in FY 19-20 and 6,26,85,759 in FY 21-22) were issued as bonus shares.
No shares were issued for which payment has been received by way of consideration other than cash.
Nature and Purpose of Other equity:
a. Securities Premium
This reserve represents the amount received by a company over and above the face value of its shares,
known as securities premium.
The purpose of the Securities Premium Account is restricted by law and can be used only for specific
activities such as issuing fully paid bonus shares, writing off preliminary expenses, writing off discount or
loss on issue of debentures, funding buy-back of shares, or paying premium on redemption of
preference shares or debentures.
b. Retained Earnings
This reserve represents the cumulative profits and can be distributed / utilized by the Company in
accordance with the Companies Act, 2013.
c. Share Application Money pending Allotment
This reserve represents the amount received from investors for warrants that are yet to be allotted by the
company.
Once the shares are allotted, the amount is transferred to share capital or securities premium, as
applicable.
Term Loan From Union Bank is covered by Personal and Corporate guarantee . 2nd charge on Commercial
Property of 1Point1 Solutions situated at Unit no. 501,5th floor, Naman Centre Plot No C 31 , Block No-G
BKC Bandra East Mumbai 400051.
Terms of Secured Loan
(I Kotak Bank -'22 lakhs loan sanctioned in Nov-21 for 5 years at 7.82% interest, with 20 of 60 instalments
pending.
(ii) Saraswat Bank - '150 lakhs loan sanctioned in Jun-23 for 5 years at 8.30% interest, with 39 of 60
instalments pending.
(iii) Union Bank - '95 lakhs loan sanctioned in Oct-24 for 5 years at 8.70% interest, with 54 of 60
instalments pending.
(iv) Indian Bank - Secured against Commercial Property of IPointl Solutions situated at Unit no. 501,5th
floor, Naman Centre Plot No C 31 , Block No-G BKC Bandra East Mumbai 400051.
Cash Credit & Bank Guarantee from Union Bank is secured by the following :
Primary Security : Hypothecation of Debtors less Creditors.
Secondary Collateral :
(i) Commercial Property of 1Point1 Solutions situated at Unit no. 501,5th floor, Naman Centre Plot No C
31 , Block No-G BKC Bandra East Mumbai 400051.
(ii) Corporate Guarantee - Corporate Guarantee of M/s. Tech Worldwide Support (P) Ltd.
(iii) Personal Guarantee - Mr. Akshay Chhabra
(iv) Fixed Deposit - To the extent of bringing the overall collateral level to Rs. 20 Lakhs.
Loan from Others:The loan classified under "Loan from Others" represents an interest-free loan that is
repayable on demand
Cash credit is repayable on demand and carries applicable interest 9.25% (EBLR spread)
Actuarial Assumptions
We have used actuarial assumptions selected by the Company. The Company has been advised that
the assumptions selected should be unbiased and mutually compatible and should reflect the
Company's best estimate of the variables of the future. The Company has also been advised to
consider the requirement of Para 44 of IndAS 19 in this regard.
The discount rate indicated above reflects the estimated timing and currency of benefit payments. It is
based on the yields/ reates available on applicable bonds as on the current valuation date.
The salary growth rate indicated above is the Company's best estimate of an increase in salary of the
employees in future years, determined considering the general trend in inflation, senority,
promotions, past experience and other relevant factors such as demand and supply in employment
market, etc.
(iii) Sensitivity Analysis
Significant actuarial assumptions for the detemination of the defined benefit obligation are discount
rate, expected salary increase and mortality. The sensitivity analysis below have been determined
based on reasonably possible changes of the assumptions occurring at the end of the reporting
period, while holding all other assumptions constant. The results of sensitivity analysis is given below:
NOTE 28: FINANCIAL RISK MANAGEMENT
The Company's activities expose it to a variety of financial risks, including market risk, credit risk and liquidity
risk. The Company continues to focus on a system-based approach to business risk management. The
Company's financial risk management process seeks to enable the early identification, evaluation and effective
management of key risks facing the business. Backed by strong internal control systems, the current Risk
Management System rests on policies and procedures issued by appropriate authorities; process of regular
reviews / audits to set appropriate risk limits and controls; monitoring of such risks and compliance confirmation
for the same.
a) Market risk
The Company's business exposes it to the risk that the fair value or future cash flows of a financial
instrument will fluctuate because of adverse weather conditions and lack of future markets. The Company
closely monitors the changes in market conditions and select the sales strategies to mitigate its exposure
to risk."
i. Foreign currency risk
The Company undertakes transactions denominated in foreign currency which results in exchange
rate fluctuations. Such exchange rate risk primarily arises from transactions made in foreign
exchange and reinstatement risks arising from recognised assets and liabilities, which are not in the
Company's functional currency (Indian Rupees). A significant portion of these transactions are in US
Dollar, Euro, etc.
(ii) Equity Price Risk
The company's investment portfolio consists of investments in quoted instruments like mutual funds
carried at fair value in the balance sheet.
(iii) Credit risk
Credit risk arises from the possibility that counter party may not be able to settle their obligations as
agreed. To manage this, the Company periodically assesses the financial reliability of customers, taking
into account the financial condition, current economic trends, and analysis of historical bad debts and
ageing of accounts receivable. Individual risk limits are set accordingly.
The average credit period on rendering of services is 45 days. Credit risk arising from trade receivables is
managed in accordance with the Company's established policy, procedures and control relating to
customer credit risk management.
(iv) Liquidity risk
Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on
time or at a reasonable price.
The Company's management is responsible for liquidity, funding as well as settlement management.
In addition, processes and policies related to such risks are overseen by senior management.
Management monitors the Company's net liquidity position through rolling forecasts on the basis of
expected cash flows.
Maturity profile of financial liabilities
The table below provides details regarding the remaining contractual maturities of significant financial liabilities
at the reporting date based on contractual undiscounted payments.
(v) Capital management
For the purposes of the Company's Capital Management, capital includes issued capital and all other
equity reserves.
The primary objective of the Company's Capital Management is to maximise shareholder value. The
company manages its capital structure and makes adjustments in the light of changes in economic
environment and the requirements of the financial covenants. The company does not have gearing as its
cash and reserves are substantial to cover up borrowings.
If one or more of the significant inputs is not based on observable market data, the fair value is determined
using generally accepted pricing models based on a discounted cash flow analysis, with the most significant
inputs being the discount rate that reflects the credit risk of counterparty. This is the case with listed
instruments where market is not liquid and for unlisted instruments.
The management consider that the carrying amounts of financial assets (other than those measured at fair
values) and liabilities recognised in the financial statements approximate their fair value as on 31st March 2025
and 31st March 2024
The increase in the gratuity provision during the year is primarily attributable to:
• Increase in the overall salary cost of the company, which impacts the gratuity obligation,
• Re-measurement of actuarial assumptions
• Provisioning for current service cost and interest cost as per actuarial valuation.
• Reclassification of a portion of the liability from non-current to current based on the expected timing of
settlement
The company conducts an independent actuarial valuation annually to assess its gratuity obligations,
in accordance with the applicable accounting standards
Expected Credit Losses
During the financial year, the Company has assessed the credit risk associated with its financial assets in
accordance with the requirements of the Expected Credit Loss (ECL) model under Ind AS 109.
The provision reflects the Company's estimation of potential credit losses arising from trade receivables
considering factors such as historical default rates, and credit risk profiles.
NOTE 31: CORPORATE SOCIAL RESPONSIBILITY
In accordance with the requirements of Section 135 of the Companies Act, 2013, and the Companies
(Corporate Social Responsibility Policy) Rules, 2014, the Company has duly constituted a Corporate Social
Responsibility Committee and developed a CSR Policy.
For the financial year ended 31st March 2025, the Company was required to spend ' 33.01 lakhs, being 2% of
the average net profits of the Company made during the three immediately preceding financial years, towards
CSR activities.
The Company has fully complied with its CSR obligations for the year by making a contribution of ' 33.01 lakhs
to R K HIV & AIDS Research & Care Center & St. Mary's Convent School , a registered trust engaged in carrying
out various eligible CSR activities as specified in Schedule VII of the Companies Act, 2013.
NOTE 32: OTHER NOTES & DISCLOSURES
(a) Preferential Issue of Shares & Warrants
During the financial year ended 31st March 2025, the Company has made a preferential allotment of
equity shares, raising a total amount of 22,823.12 lakhs, in accordance with the provisions of Section 42
and Section 62(1)(c) of the Companies Act, 2013, and applicable rules thereunder, including the SEBI
(Issue of Capital and Disclosure Requirements) Regulations, 2018.
The funds raised through the preferential issue are being utilised in line with the objects stated in the offer
document and the terms of the issue. The utilisation of funds has been periodically reviewed by the
management and reported to the Audit Committee and Board of Directors.
As on 31st March 2025, an amount of 9,788.50 lakhs has been utilised for the stated objectives. The
balance unutilised amount of 13,034.62 lakhs has been temporarily invested in debt-based mutual
funds, in accordance with the Company's treasury and investment policy, ensuring capital preservation,
liquidity, and prudent returns.
There has been no deviation or variation in the utilisation of the funds raised as compared to the purposes
stated at the time of the issue.
(b) Stock & Debtors Statement
In accordance with the terms and conditions of the working capital facilities sanctioned by the Company's
bankers, the Company is required to submit monthly statements of trade receivables (debtors) to the
bank as part of its regular reporting obligations.
The Company has duly submitted these monthly debtors statements during the financial year ended 31st
March 2025. Upon review, it has been noted that the details of trade receivables furnished to the bank
have been consistently in line with the books of accounts maintained by the Company for all months
during the year.
Note 34: NOTES ON ACCOUNTS
1 The Company do not have any Benami property, where any proceeding has been initiated or pending
against the Company for holding any Benami Property.
2 The Company do not have any transactions with companies struck off.
3 The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the
statutory period.
4 The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.
5 The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies),
including foreign entities (Intermediaries) with the understanding that the Intermediary shall directly or
indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of
the Company (Ultimate Beneficiaries) or provide any guarantee, security or the like to or on behalf of the
Ultimate Beneficiaries.
6 The Company have not received any fund from any person(s) or entity(ies), including foreign entities
(Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall
directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or
on behalf of the Funding Party (Ultimate Beneficiaries) or provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries
7 The Company have no such transaction which is not recorded in the books of accounts that has been
surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act,
1961 (such as, search or survey or any other relevant provisions of the IT Act, 1961)
8 The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act
read with the Companies (Restriction on number of Layers) Rules, 2017
9 Other disclosure requirements as required under Schedule III, as amended are either NIL or Not
Applicable.
As per out report of even date attached
For S I G M A C & CO For ONE POINT ONE SOLUTIONS LIMITED
CHARTERED ACCOUNTANTS
FRN : 116351W Akshay Chhabra Akashanand Karnik
Chairman & Managing Director Whole Time Director
DIN: 00958197 DIN: 07060993
Rahul Sarda
Partner, ICAI M. No.: 135501
Place : Mumbai Sunil Kumar Jha Pritesh Sonawane
Date : 23rd May, 2025 Chief Financial Officer Company Secretary
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