Accounting Policies of One Point One Solutions Ltd. Company

Mar 31, 2025

2. Summary of material accounting policies
Basis of preparation and presentation

These standalone financial statements are prepared in accordance with Indian Accounting Standards,
under the historical cost convention on the accrual basis except for certain financial instruments which
are measured at fair values, the provisions of the Companies Act, 2013 (the ''Act'') (to the extent notified)
and guidelines issued by the Securities and Exchange Board of India (SEBI). The Ind AS are prescribed
under Section 133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules,
2015 and relevant amendment rules issued thereunder.

The Company has consistently applied the following accounting policies to all periods presented in these
financial statements.

2.1 Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date. The fair value
measurement is based on the presumption that the transaction to sell the asset or transfer the
liability takes place either:

â¢ In the principal market for the asset or liability, or

â¢ In the absence of a principal market, in the most advantageous market for the asset or liability
The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would
use when pricing the asset or liability, assuming that market participants act in their economic best
interest.

The Company uses valuation techniques that are appropriate in the circumstances and for which
sufficient data are available to measure fair value, maximising the use of relevant observable inputs and
minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are
categorised within the fair value hierarchy, described as follows, based on the lowest level input that is
significant to the fair value measurement as a whole:

â¢ Level 1 â Quoted (unadjusted) market prices in active markets for identical assets or liabilities

â¢ Level 2 â Valuation techniques for which the lowest level input that is significant to the fair value
measurement is directly or indirectly observable

â¢ Level 3 â Valuation techniques for which the lowest level input that is significant to the fair value
measurement is unobservable

For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company
determines whether transfers have occurred between levels in the hierarchy by re-assessing
categorisation (based on the lowest level input that is significant to the fair value measurement as a
whole) at the end of each reporting period.

2.2 Revenue recognition

The Company earns revenue primarily from providing BPO services.

Revenue is recognized upon transfer of control of promised products or services to customers in an
amount that reflects the consideration which the Company expects to receive in exchange for
those products or services. The Company, in its contracts with customers, promises to transfer
distinct services rendered. Each distinct service, results in a simultaneous benefit to the
corresponding customer. Also, the Company has an enforceable right to payment from the
customer for the performance completed to date.

â¢ Revenue from time and material and job contracts is recognized on output basis measured by
units delivered, efforts expended, number of transactions processed, etc.

Revenue is measured based on the transaction price, which is the consideration, adjusted for
volume discounts, service level credits, performance bonuses, price concessions and incentives, if
any, as specified in the contract with the customer. Revenue also excludes taxes collected from
customers.

Contract assets are recognized when there is excess of revenue earned over billings on contracts.
Contract assets are classified as unbilled revenue (only act of invoicing is pending) when there is
unconditional right to receive cash, and only passage of time is required, as per contractual terms.

The billing schedules agreed with customers include periodic performance-based payments
and/or milestone-based progress payments. Invoices are payable within contractually agreed
credit period.

Contracts are subject to modification to account for changes in contract specification and
requirements. The Company reviews modification to contract in conjunction with the original
contract, basis which the transaction price could be allocated to a new performance obligation, or
transaction price of an existing obligation could undergo a change. In the event transaction price is
revised for existing obligation, a cumulative adjustment is accounted for. The Company
disaggregates revenue from contracts with customers by geography and business verticals.

Use of significant judgments in revenue recognition

distinct performance obligation involves judgment to determine the deliverables and the
ability of the customer to benefit independently from such deliverables.

â¢ Judgment is also required to determine the transaction price for the contract. The transaction
price could be either a fixed amount of customer consideration or variable consideration with
elements such as volume discounts, service level credits, performance bonuses, price
concessions and incentives. The transaction price is also adjusted for the effects of the time
value of money if the contract includes a significant financing component. Any consideration
payable to the customer is adjusted to the transaction price, unless it is a payment for a distinct
product or service from the customer. The estimated amount of variable consideration is
adjusted in the transaction price only to the extent that it is highly probable that a significant
reversal in the amount of cumulative revenue recognized will not occur and is reassessed at
the end of each reporting period. The Company allocates the elements of variable
considerations to all the performance obligations of the contract unless there is observable
evidence that they pertain to one or more distinct performance obligations.

â¢ The Company uses judgment to determine an appropriate standalone selling price for a
performance obligation. The Company allocates the transaction price to each performance
obligation on the basis of the relative standalone selling price of each distinct product or
service promised in the contract. Where standalone selling price is not observable, the
Company uses the expected cost-plus margin approach to allocate the transaction price to
each distinct performance obligation.

â¢ The Company exercises judgment in determining whether the performance obligation is
satisfied at a point in time or over a period of time. The Company considers indicators such as
how customer consumes benefits as services are rendered or who controls the asset as it is
being created or existence of enforceable right to payment for performance to date and
alternate use of such product or service, transfer of significant risks and rewards to the
customer, acceptance of delivery by the customer, etc.

Interest: Interest income is recognised on a time proportion basis taking into account the amount
outstanding and the applicable interest applicable. Interest income is included under the head
"Other income" in the statement of profit & loss account. For all instruments measured either at
amortised cost or at fair value through other comprehensive income, interest income is recorded
using the effective interest rate (EIR). EIR is the rate that exactly discounts the estimated future cash
payments or receipts over the expected life of the financial instrument or a shorter period, where
appropriate, to the gross carrying amount of the financial asset or to the amortised cost of a
financial liability. When calculating the effective interest rate, the Company estimates the expected
cash flows by considering all the contractual terms of the financial instrument but does not consider
the expected credit losses.

Dividends: Dividend income is recognised when the Company''s right to receive dividend is
established by the balance sheet date.

2.3 Income Tax.

Income tax expense consists of current and the net change in the deferred tax asset or liability
during the period. Income tax expense is recognised in profit or loss except to the extent that it
relates to items recognised in OCI or directly in equity, in which case it is recognised in OCI or
directly in equity respectively.

a. Current income tax

Current tax is the expected tax payable on the taxable profit for the year, using tax rates
enacted or substantively enacted by the end of the reporting period, and any adjustment to
tax payable in respect of previous years. Current tax assets and tax liabilities are offset where
the Company has a legally enforceable right to offset and intends either to settle on a net
basis, or to realise the asset and settle the liability simultaneously. Current income tax assets
and liabilities are measured at the amount expected to be recovered from or paid to the
taxation authorities.

Current income tax relating to items recognised outside profit or loss is recognised outside
profit or loss (either in other comprehensive income or in equity). Current tax items are
recognised in correlation to the underlying transaction either in OCI or directly in equity.
Management periodically evaluates positions taken in the tax returns with respect to
situations in which applicable tax regulations are subject to interpretation and establishes
provisions where appropriate.

The Govt. of India had issued the Taxation Laws (Amendment) Act 2019 which provides
Domestic Companies an option to pay corporate tax at reduced rates from April 1, 2019
subject to certain conditions. The company has opted lower tax regime, accordingly provision
for income tax has been made. Also there would be no liability for Minimum alternate Tax
(MAT). The company had recognised consequential impact by reversing deferred tax assets.

b. Deferred tax

Deferred income tax is recognised using the balance sheet approach. Deferred income tax
assets and liabilities are recognised for deductible and taxable temporary differences arising
between the tax base of assets and liabilities and their carrying amount as at the reporting
date.

Deferred tax liabilities are recognised for all taxable timing differences, except:

â¢ When the deferred tax liability arises from the initial recognition of an asset or liability in
a transaction that is not a business combination and, at the time of the transaction,
affects neither the accounting profit nor taxable profit or loss

â¢ In respect of taxable timing differences associated with investments in subsidiaries and
interests in joint ventures when the timing of the reversal of the timing differences can be
controlled and it is probable that the timing differences will not reverse in the
foreseeable future.

Deferred tax assets are recognised for all deductible timing differences and the carry
forward of any unused tax losses. Deferred tax assets are recognised to the extent that it
is probable that taxable profit will be available against which the deductible timing
differences, and the carry forward of unused tax losses can be utilised, except:

â¢ When the deferred tax asset relating to the deductible timing difference arises from the
initial recognition of an asset or liability in a transaction that is not a business
combination and, at the time of the transaction, affects neither the accounting profit nor
taxable profit or loss

â¢ In respect of deductible timing differences associated with investments in subsidiaries
and interests in joint ventures deferred tax assets are recognised only to the extent that
it is probable that the timing differences will reverse in the foreseeable future and
taxable profit will be available against which the timing differences can be utilised.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to
the extent that it is no longer probable that sufficient taxable profit will be available to allow all
or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are reÂ¬
assessed at each reporting date and are recognised to the extent that it has become probable
that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in
the year when the asset is realised or the liability is settled, based on tax rates (and tax laws)
that have been enacted or substantively enacted at the reporting date.

Deferred tax relating to items recognised outside profit or loss is recognised outside profit or
loss (either in other comprehensive income or in equity). Deferred tax items are recognised in
correlation to the underlying transaction either in OCI or directly in equity.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to
set off current tax assets against current tax liabilities and the deferred taxes relate to the same
taxable entity and the same taxation authority.

2.4 Property, plant and equipment

Property, Plant and equipment is stated at cost of acquisition or constructions including
attributable borrowing cost till such assets are ready for their intended use, less of accumulated
depreciation and accumulated impairment losses, if any. Cost of acquisition for the aforesaid
purpose comprises its purchase price, including import duties and other non-refundable taxes or
levies and any directly attributable cost of bringing the asset to its working condition for its
intended use, net of trade discounts, rebates and credits received if any.

Such cost includes the cost of replacing part of the plant and equipment and borrowing costs for
long-term construction projects if the recognition criteria are met. When significant parts of plant
and equipment are required to be replaced at intervals, the Company depreciates them separately
based on their specific useful lives. Likewise, when a major inspection is performed, its cost is
recognised in the carrying amount of the plant and equipment as a replacement if the recognition
criteria are satisfied. All other repair and maintenance costs are recognised in profit or loss as
incurred.

Property, Plant and equipment are eliminated from financial statements, either on disposal or when
retired from active use. Losses arising in case of retirement of Property, Plant and equipment and
gains or losses arising from disposal of property, plant and equipment are recognised in statement
of profit and loss in the year of occurrence.

The assets'' residual values, useful lives and methods of depreciation are reviewed at each financial
year and adjusted prospectively, if appropriate.

Depreciation is provided as per useful life prescribed by Schedule II of the Companies Act, 2013 on
Straight Line Method on Plant and Machinery and on other Tangible PPE.

Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets.
Useful lives used by the Company are same as prescribed rates prescribed under Schedule II of the
Companies Act 2013. The range of useful lives of the property, plant and equipment are as follows:

2.5 Intangible Assets

The useful lives of intangible assets are assessed as either finite or indefinite. The estimated useful
life of an identifiable intangible asset is based on a number of factors including the effects of
obsolescence, demand, competition, and other economic factors (such as the stability of the
industry, and known technological advances), and the level of maintenance expenditures required
to obtain the expected future cash flows from the asset. Amortization methods and useful lives are
reviewed periodically including at each financial year end. Intangible assets with finite lives are
amortised over the useful economic life and assessed for impairment whenever there is an
indication that the intangible asset may be impaired. Intangible assets are amortised as follows:

> Software - 5 years

software are recognised as expense as incurred. The capitalised costs are amortised over the lower
of the estimated useful life of the software and the remaining useful life of the asset.

Software product development costs are expensed as incurred during the research phase until
technological feasibility is established. Software development costs incurred subsequent to the
achievement of technological feasibility are capitalised and amortised over the estimated useful
life of the products as determined by the management. This capitalisation is done only if there is an
intention and ability to complete the product, the product is likely to generate future economic
benefits, adequate resources to complete the product are available and such expenses can be
accurately measured. Such software development costs comprise expenditure that can be directly
attributed, or allocated on a reasonable and consistent basis, to the development of the product.
The amortisation of software development costs is allocated on a systematic basis over the best
estimate of its useful life after the product is ready for use. The factors considered for identifying
the basis include obsolescence, product life cycle and actions of competitors.

2.6 Investments in the nature of equity in subsidiaries.

The Company has elected to recognise its investments in equity instruments in subsidiaries at cost
in the separate financial statements in accordance with the option available in Ind AS 27, ''Separate
Financial Statements''.

2.7 Investment properties

Investment properties comprise portions of office buildings and/or residential premises that are
held for long-term rental yields and/or for capital appreciation. Investment properties are initially
recognised at cost. Subsequently investment property comprising of building is carried at cost less
accumulated depreciation and accumulated impairment losses.

The cost includes the cost of replacing parts and borrowing costs for long-term construction
projects if the recognition criteria are met. When significant parts of the investment property are
required to be replaced at intervals, the Group depreciates them separately based on their specific
useful lives. All other repair and maintenance costs are recognised in profit and loss as incurred.

Depreciation on building is provided over the estimated useful lives as specified in Schedule II to
the Companies Act, 2013. The residual values, useful lives and depreciation method of investment
properties are reviewed, and adjusted on prospective basis as appropriate, at each financial year
end. The effects of any revision are included in the statement of profit and loss when the changes
arise.

Investment properties are derecognised when either they have been disposed of or when the
investment property is permanently withdrawn from use and no future economic benefit is
expected from its disposal.

The difference between the net disposal proceeds and the carrying amount of the asset is
recognised in the statement of profit and loss in the period of de-recognition.

2.8 Impairment of non-financial assets

The Company assesses, at each reporting date, whether there is an indication that an asset may be
impaired. The Company recognizes loss allowances using the expected credit loss (ECL) model for
the financial assets which are not fair valued through profit and loss. Loss allowance for trade
receivables with no significant financing component is measured at an amount equal to lifetime
ECL. For all other financial assets, expected credit losses are measured at an amount equal to the
12 month expected credit losses or at an amount equal to the life time expected credit losses if the
credit risk on the financial asset has increased significantly since initial recognition. If any indication
exists, or when annual impairment testing for an asset is required, the Company estimates the
asset''s recoverable amount. An asset''s recoverable amount is the higher of an asset''s or cashÂ¬
generating unit''s (CGU) fair value less costs of disposal and its value in use. 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 Company''s assets. When the carrying amount of an
asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written
down to its recoverable amount.

In assessing value in use, the estimated future cash flows are discounted to their present value
using a pre-tax discount rate that reflects current market assessments of the time value of money
and the risks specific to the asset. In determining fair value less costs of disposal, recent market
transactions are taken into account. If no such transactions can be identified, an appropriate
valuation model is used.

Impairment losses of continuing operations, including impairment on inventories, are recognised
in the statement of profit and loss.

An assessment is made at each reporting date to determine whether there is an indication that
previously recognised impairment losses no longer exist or have decreased. If such indication
exists, the Company estimates the asset''s or CGU''s recoverable amount. A previously recognised
impairment loss is reversed only if there has been a change in the assumptions used to determine
the asset''s recoverable amount since the last impairment loss was recognised. The reversal is
limited so that the carrying amount of the asset does not exceed its recoverable amount, nor
exceed the carrying amount that would have been determined, net of depreciation, had no
impairment loss been recognised for the asset in prior years. Such reversal is recognised in the
statement of profit or loss.

2.9 Borrowing costs:

a. Borrowing costs that are attributable to the acquisition, construction, or production of a
qualifying asset are capitalised as a part of the cost of such asset till such time the asset is ready
for its intended use or sale. A qualifying asset is an asset that necessarily requires a substantial
period of time (generally over twelve months) to get ready for its intended use or sale.

b. All other borrowing costs are recognised as expense in the period in which they are incurred.

2.10 Leases

The Company as a lessee:

The Company enters into an arrangement for lease of land, buildings, plant and machinery
including computer equipment and vehicles. Such arrangements are generally for a fixed period
but may have extension or termination options. The Company assesses, whether the contract is, or
contains, a lease, at its inception. A contract is, or contains, a lease if the contract conveys the right
to

a) control the use of an identified asset,

b) obtain substantially all the economic benefits from use of the identified asset, and

c) direct the use of the identified asset.

The Company determines the lease term as the non-cancellable period of a lease, together with
periods covered by an option to extend the lease, where the Company is reasonably certain to
exercise that option.

The Company at the commencement of the lease contract recognizes a Right-of-Use (RoU) asset
at cost and corresponding lease liability, except for leases with term of less than twelve months
(short term leases) and low-value assets. For these short term and low value leases, the Company
recognizes the lease payments as an operating expense on a straight-line basis over the lease
term.

The cost of the right-of-use asset comprises the amount of the initial measurement of the lease
liability, any lease payments made at or before the inception date of the lease, plus any initial direct
costs, less any lease incentives received. Subsequently, the right-of-use assets are measured at
cost less any accumulated depreciation and accumulated impairment losses, if any. The right-of-
use assets are depreciated using the straight-line method from the commencement date over the
shorter of lease term or useful life of right-of-use asset. The estimated useful lives of right-of-use
assets are determined on the same basis as those of property, plant and equipment.

The Company applies Ind AS 36 to determine whether a RoU asset is impaired and accounts for
any identified impairment loss as described in the impairment of non-financial assets below.

For lease liabilities at the commencement of the lease, the Company measures the lease liability at
the present value of the lease payments that are not paid at that date. The lease payments are
discounted using the interest rate implicit in the lease, if that rate can be readily determined, if that
rate is not readily determined, the lease payments are discounted using the incremental
borrowing rate that the Company would have to pay to borrow funds, including the consideration
of factors such as the nature of the asset and location, collateral, market terms and conditions, as
applicable in a similar economic environment.

After the commencement date, the amount of lease liabilities is increased to reflect the accretion
of interest and reduced for the lease payments made. The Company recognizes the amount of the
re-measurement of lease liability as an adjustment to the right-of-use assets. Where the carrying
amount of the right-of-use asset is reduced to zero and there is a further reduction in the
measurement of the lease liability, the Company recognizes any remaining amount of the reÂ¬
measurement in statement of profit and loss. Lease liability payments are classified as cash used in
financing activities in the statement of cash flows.

2.11 Corporate Social Responsibility (CSR) Expenditure

The Companies Act, 2013, read with the Companies (Corporate Social Responsibility Policy) Rules,
2014 (the "CSR Rules"), requires that companies meet certain thresholds of net worth, turnover or
net profits to constitute a CSR Committee and to spend 2% of the company''s average profits,
before taxes for the previous three fiscal years, on certain identified areas of CSR. This requirement
became effective April 1,2014. We have complied with this requirement, and a detailed report on
CSR will form part of the Annual Report of the Company for fiscal year 2025. CSR spend are
charged to the statement of profit and loss as an expense in the period they are incurred.

Mar 31, 2024

2. Summary of material accounting policies Basis of preparation and presentation

The financial statements have been prepared on the historical cost basis, except for: (i) certain financial instruments that are measured at fair values at the end of each reporting period; (ii) defined benefit plans - plan assets that are measured at fair values at the end of each reporting period, as explained in the accounting policies below. Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.

The Company has consistently applied the following accounting policies to all periods presented in these financial statements.

a) Current versus non-current classification

Assets and Liabilities are classified as current or non - current, inter-alia considering the normal operating cycle of the company''s operations and the expected realization/settlement thereof within 12 months after the Balance Sheet date.

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

b) Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

â¢ In the principal market for the asset or liability, or

â¢ In the absence of a principal market, in the most advantageous market for the asset or liability

The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

â¢ Level 1 â Quoted (unadjusted) market prices in active markets for identical assets or liabilities

â¢ Level 2 â Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable

â¢ Level 3 â Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable

For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

c) Revenue recognition

The Company earns revenue primarily from providing BPO services.

â¢ Revenue from time and material and job contracts is recognized on output basis measured by units delivered, efforts expended, number of transactions processed, etc.

â¢ Revenue related to fixed price maintenance and support services contracts where the Company is standing ready to provide services is recognized based on time elapsed mode and revenue is straight lined over the period of performance.

â¢ In respect of other fixed-price contracts, revenue is recognized using percentage-of-completion method (''POC method'') of accounting with contract costs incurred determining the degree of completion of the performance obligation.

Revenue is measured based on the transaction price, which is the consideration, adjusted for volume discounts, service level credits, performance bonuses, price concessions and incentives, if any, as specified in the contract with the customer. Expenses reimbursed by customers during the project execution are recorded as reduction to associated costs. Revenue also excludes taxes collected from customers.

Contract assets are recognized when there is excess of revenue earned over billings on contracts. Contract assets are classified as unbilled revenue (only act of invoicing is pending) when there is unconditional right to receive cash, and only passage of time is required, as per contractual terms.

Unearned revenue ("contract liability") is recognized when there are billings in excess of revenues.

The billing schedules agreed with customers include periodic performance-based payments and/or milestone-based progress payments. Invoices are payable within contractually agreed credit period.

In accordance with Ind AS 37, the Company recognizes an onerous contract provision when the unavoidable costs of meeting the obligations under a contract exceed the economic benefits to be received.

Contracts are subject to modification to account for changes in contract specification and requirements. The Company reviews modification to contract in conjunction with the original contract, basis which the transaction price could be allocated to a new performance obligation, or transaction price of an existing obligation could undergo a change. In the event transaction price is revised for existing obligation, a cumulative adjustment is accounted for. The Company disaggregates revenue from contracts with customers by geography and business verticals.

Use of significant judgments in revenue recognition

â¢ The Company''s contracts with customers could include promises to transfer multiple products and services to a customer. The Company assesses the products/services promised in a contract and

identifies distinct performance obligations in the contract. Identification of distinct performance obligation involves judgment to determine the deliverables and the ability of the customer to benefit independently from such deliverables.

â¢ Judgment is also required to determine the transaction price for the contract. The transaction price could be either a fixed amount of customer consideration or variable consideration with elements such as volume discounts, service level credits, performance bonuses, price concessions and incentives. The transaction price is also adjusted for the effects of the time value of money if the contract includes a significant financing component. Any consideration payable to the customer is adjusted to the transaction price, unless it is a payment for a distinct product or service from the customer. The estimated amount of variable consideration is adjusted in the transaction price only to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur and is reassessed at the end of each reporting period. The Company allocates the elements of variable considerations to all the performance obligations of the contract unless there is observable evidence that they pertain to one or more distinct performance obligations.

â¢ The Company uses judgment to determine an appropriate standalone selling price for a performance obligation. The Company allocates the transaction price to each performance obligation on the basis of the relative standalone selling price of each distinct product or service promised in the contract. Where standalone selling price is not observable, the Company uses the expected cost-plus margin approach to allocate the transaction price to each distinct performance obligation.

â¢ The Company exercises judgment in determining whether the performance obligation is satisfied at a point in time or over a period of time. The Company considers indicators such as how customer consumes benefits as services are rendered or who controls the asset as it is being created or existence of enforceable right to payment for performance to date and alternate use of such product or service, transfer of significant risks and rewards to the customer, acceptance of delivery by the customer, etc.

â¢ Revenue for fixed-price contracts is recognized using percentage-of-completion method. The Company uses judgment to estimate the future cost-to-completion of the contracts which is used to determine the degree of the completion of the performance obligation.

Royalties: Royalty revenue is recognised on an accrual basis in accordance with the substance of the relevant agreement (provided that it is probable that economic benefits will flow to the Company and the amount of revenue can be measured reliably). Royalty arrangements that are based on production, sales and other measures are recognised by reference to the underlying arrangement.

Dividends: Dividend income is recognised when the Company''s right to receive dividend is established by the balance sheet date.

d) Income Tax.

Income tax expense consists of current and deferred tax. Income tax expense is recognised in profit or loss except to the extent that it relates to items recognised in OCI or directly in equity, in which case it is recognised in OCI or directly in equity respectively

i. Current income tax

Current tax is the expected tax payable on the taxable profit for the year, using tax rates enacted or substantively enacted by the end of the reporting period, and any adjustment to tax payable in respect of previous years. Current tax assets and tax liabilities are offset where the Company has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously. Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities.

Current income tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other comprehensive income or in equity). Current tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

The Govt. of India had issued the Taxation Laws (Amendment) Act 2019 which provides Domestic Companies an option to pay corporate tax at reduced rates from April 1, 2019 subject to certain conditions. The company has opted lower tax regime, accordingly provision for income tax has been made. Also there would be no liability for Minimum alternate Tax (MAT). The company had recognised consequential impact by reversing deferred tax assets.

ii. Deferred tax

Deferred tax is provided using the liability method on timing differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date.

Deferred tax liabilities are recognised for all taxable timing differences, except:

â¢ When the deferred tax liability arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss

â¢ In respect of taxable timing differences associated with investments in subsidiaries and interests in joint ventures when the timing of the reversal of the timing differences can be controlled and it is probable that the timing differences will not reverse in the foreseeable future

Deferred tax assets are recognised for all deductible timing differences and the carry forward of any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible timing differences, and the carry forward of unused tax losses can be utilised, except:

â¢ When the deferred tax asset relating to the deductible timing difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss

â¢ In respect of deductible timing differences associated with investments in subsidiaries and interests in joint ventures deferred tax assets are recognised only to the extent that it is probable that the timing differences will reverse in the foreseeable future and taxable profit will be available against which the timing differences can be utilised.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are reassessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.

Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other comprehensive income or in equity). Deferred tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

e) Property, plant and equipment

Plant and equipment is stated at cost of acquisition or constructions including attributable borrowing cost till such assets are ready for their intended use, less of accumulated depreciation and accumulated impairment losses, if any. Cost of acquisition for the aforesaid purpose comprises its purchase price, including import duties and other non-refundable taxes or levies and any directly attributable cost of bringing the asset to its working condition for its intended use, net of trade discounts, rebates and credits received if any.

Such cost includes the cost of replacing part of the plant and equipment and borrowing costs for long-term construction projects if the recognition criteria are met. When significant parts of plant and equipment are required to be replaced at intervals, the Company depreciates them separately based on their specific useful lives. Likewise, when a major inspection is performed, its cost is recognised in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied. All other repair and maintenance costs are recognised in profit or loss as incurred.

Property Plant and equipment are eliminated from financial statements, either on disposal or when retired from active use. Losses arising in case of retirement of Property, Plant and equipment and gains or losses arising from disposal of property, plant and equipment are recognised in statement of profit and loss in the year of occurrence.

The assets'' residual values, useful lives and methods of depreciation are reviewed at each financial year and adjusted prospectively, if appropriate,

Depreciation is provided as per useful life prescribed by Schedule II of the Companies Act, 2013 on Straight Line Method on Plant and Machinery and on other Tangible PPE.

Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets. Useful lives used by the Company are same as prescribed rates prescribed under Schedule II of the Companies Act 2013. The range of useful lives of the property, plant and equipment are as follows:

f) Intangible Assets

Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and accumulated impairment losses. Internally generated intangibles are not capitalised and the related expenditure is reflected in profit or loss in the period in which the expenditure is incurred.

The useful lives of intangible assets are assessed as either finite or indefinite. Intangible assets with finite lives are amortised over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. Intangible assets are amortised as follows:

> Software - 5 years

Software for internal use, which is primarily acquired from third-party vendors and which is an integral part of a tangible asset, including consultancy charges for implementing the software, is capitalised as part of the related tangible asset. Subsequent costs associated with maintaining such software are recognised as expense as incurred. The capitalised costs are amortised over the lower of the estimated useful life of the software and the remaining useful life of the tangible fixed asset.

g) Investments in the nature of equity in subsidiaries.

The Company has elected to recognise its investments in equity instruments in subsidiaries at cost in the separate financial statements in accordance with the option available in Ind AS 27, ''Separate Financial Statements''.

h) Investment properties

Investment properties comprise portions of office buildings and residential premises that are held for long-term rental yields and/or for capital appreciation. Investment properties are initially recognised at cost. Subsequently investment property comprising of building is carried at cost less accumulated depreciation and accumulated impairment losses.

The cost includes the cost of replacing parts and borrowing costs for long-term construction projects if the recognition criteria are met. When significant parts of the investment property are required to be replaced at intervals, the Group depreciates them separately based on their specific useful lives. All other repair and maintenance costs are recognised in profit and loss as incurred.

Depreciation on building is provided over the estimated useful lives as specified in Schedule II to the Companies Act, 2013. The residual values, useful lives and depreciation method of investment properties are reviewed, and adjusted on prospective basis as appropriate, at each financial year end. The effects of any revision are included in the statement of profit and loss when the changes arise.

Though the group measures investment property using cost based measurement, the fair value of investment property is disclosed in the notes.

Investment properties are derecognised when either they have been disposed of or when the investment property is permanently withdrawn from use and no future economic benefit is expected from its disposal.

The difference between the net disposal proceeds and the carrying amount of the asset is recognised in the statement of profit and loss in the period of de-recognition.

i) Impairment of non-financial assets

The Company assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset''s recoverable amount. An asset''s recoverable amount is the higher of an asset''s or cash-generating unit''s (CGU) fair value less costs of disposal and its value in use. 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 Company''s assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs of disposal, recent market transactions are taken into account. If no such transactions can be identified, an appropriate valuation model is used.

Impairment losses of continuing operations, including impairment on inventories, are recognised in the statement of profit and loss.

An assessment is made at each reporting date to determine whether there is an indication that previously recognised impairment losses no longer exist or have decreased. If such indication exists, the Company estimates the asset''s or CGU''s recoverable amount. A previously recognised impairment loss is reversed only if there has been a change in the assumptions used to determine the asset''s recoverable amount since the last impairment loss was recognised. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years. Such reversal is recognised in the statement of profit or loss.

j) Non- current Asset held for sale.

Non-current assets and disposal groups are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. This condition is regarded as met only when the asset (or disposal group) is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such asset (or disposal group) and its sale is highly probable. Management must be committed to the sale, which should be expected to qualify for recognition as a completed sale within one year from the date of classification. Non-current assets (and disposal groups) classified as held for sale are measured at the lower of their carrying amount and fair value less costs to sell. Non-current assets are not depreciated or amortised.

k) Borrowing costs:

a. Borrowing costs that are attributable to the acquisition, construction, or production of a qualifying asset are capitalised as a part of the cost of such asset till such time the asset is ready for its intended use or sale. A qualifying asset is an asset that necessarily requires a substantial period of time (generally over twelve months) to get ready for its intended use or sale.

b. All other borrowing costs are recognised as expense in the period in which they are incurred.

l) Leases

The Company as a lessee:

The Company enters into an arrangement for lease of land, buildings, plant and machinery including computer equipment and vehicles. Such arrangements are generally for a fixed period but may have extension or termination options. The Company assesses, whether the contract is, or contains, a lease, at its inception. A contract is, or contains, a lease if the contract conveys the right to

a) control the use of an identified asset,

b) obtain substantially all the economic benefits from use of the identified asset, and

c) direct the use of the identified asset.

The Company determines the lease term as the non-cancellable period of a lease, together with periods covered by an option to extend the lease, where the Company is reasonably certain to exercise that option.

The Company at the commencement of the lease contract recognizes a Right-of-Use (RoU) asset at cost and corresponding lease liability, except for leases with term of less than twelve months (short term leases) and low-value assets. For these short term and low value leases, the Company recognizes the lease payments as an operating expense on a straight-line basis over the lease term.

The cost of the right-of-use asset comprises the amount of the initial measurement of the lease liability, any lease payments made at or before the inception date of the lease, plus any initial direct costs, less any lease incentives received. Subsequently, the right-of-use assets are measured at cost less any accumulated depreciation and accumulated impairment losses, if any. The right-of-use assets are depreciated using the straight-line method from the commencement date over the shorter of lease term or useful life of right-of-use asset. The estimated useful lives of right-of-use assets are determined on the same basis as those of property, plant and equipment.

The Company applies Ind AS 36 to determine whether a RoU asset is impaired and accounts for any identified impairment loss as described in the impairment of non-financial assets below.

For lease liabilities at the commencement of the lease, the Company measures the lease liability at the present value of the lease payments that are not paid at that date. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined, if that rate is not readily determined, the lease payments are discounted using the incremental borrowing rate that the Company would have to pay to borrow funds, including the consideration of factors such as the nature of the asset and location, collateral, market terms and conditions, as

applicable in a similar economic environment.

After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. The Company recognizes the amount of the re-measurement of lease liability as an adjustment to the right-of-use assets. Where the carrying amount of the right-of-use asset is reduced to zero and there is a further reduction in the measurement of the lease liability, the Company recognizes any remaining amount of the remeasurement in statement of profit and loss. Lease liability payments are classified as cash used in financing activities in the statement of cash flows.

The Company as a lessor

Leases under which the Company is a lessor is classified as finance or operating leases. Lease contracts where all the risks and rewards are substantially transferred to the lessee, the lease contracts are classified as finance leases. All other leases are classified as operating leases. For leases under which the Company is an intermediate lessor, the Company accounts for the head-lease and the sub-lease as two separate contracts. The sub-lease is further classified either as a finance lease or an operating lease by reference to the RoU asset arising from the head-lease.

m) Corporate Social Responsibility (CSR) Expenditure

CSR spend are charged to the statement of profit and loss as an expense in the period they are incurred. During the year there was no CSR obligation in view of losses in earlier years.

Mar 31, 2023

1. Corporate information/General Information

One Point One Solutions Limited (the company), is a limited company, domiciled in India and incorporated under the provisions of the Companies Act, 1956. The company is mainly engaged in the business of BPO which started its operations in the year 2013, specialises in the business of Customer Life cycle management, Business Process Management and Technology Servicing catering to about 40 marque customers. The company has PAN India team spread across 8 delivery centres with 5500 IT experts, offering complete solutions across verticals in B-B, B-C, New age digital space and market space and have hired the latest state of the art technology for delivery and thus satisfying the clients need. The mission of the company is to become pioneers in the niche area of its business and thereby giving constant value addition to its client business thus ensuring complete client satisfaction. The company''s shares are listed on NSE main stock exchange.

The financial statements of the Company for the year ended 31st March 2023 were authorized for issue by Company''s Board of Directors on 29th May, 2023.

The standalone financial statements are presented in Indian Rupee (In Rs. Lakhs) except shares and per share data, unless otherwise stated and all values are rounded to the nearest rupees lakhs except when otherwise indicated.

2. Summary of significant accounting policies Basis of preparation and presentation

The Company has consistently applied the following accounting policies to all periods presented in these financial statements.

a) Current versus non-current classification

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

b) Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

â¢ In the principal market for the asset or liability, or

â¢ In the absence of a principal market, in the most advantageous market for the asset or liability

The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

The Company uses valuation techniques that are appropriate in the circumstances and for which

sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.