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One Mobikwik Systems Ltd. ಖಾತೆಯ ಉಪಯುಕ್ತ ಮಾಹಿತಿ
l) Provisions and Contingent liabilities
Provisions
Provisions are recognised when the Company
has a present obligation (legal or constructive)
as a result of a past event, it is probable that
the Company will be required to settle that
obligation and a reliable estimate can be made
of the amount of the obligation. Provisions are
determined by discounting the expected future
cash flows (representing The amount recognised
as a provision is the best estimate of the
consideration expenditure required to settle the
present obligation at the reporting date) at a pre¬
tax rate that reflects current market assessments
of the time value of money and the risks specific
to the liability, taking into account the risks and
uncertainties surrounding the obligation. Where
a provision is measured using the cash flows
estimated to settle the present obligation, its
carrying amount is the present value of those
cash flows (when the effect of the time value of
money is material). The unwinding of the discount
is recognised as finance cost. Expected future
operating losses are not provided for.
A contingent liability is possible obligation that
arises from past events whose existence will be
confirmed by the occurrence or non-occurrence
of one or more uncertain future events beyond the
control of the Company or a present obligation that
is not recognised because it is not probable that
an outflow of resources will be required to settle
the obligation. A contingent liability also arises
in extremely rare cases where there is a liability
that cannot be recognised because it cannot be
measured reliably.
The Company does not recognise a contingent
liability but discloses its existence in the
Standalone Financial Statements.
m) Impairment of non - financials assets
At the end of each reporting year, the Company
reviews the carrying amounts of its assets to
determine whether there is any indication that
those assets have suffered an impairment loss.
If any such indication exists, the recoverable
amount of the asset is estimated in order to
determine the extent of the impairment loss (if
any). For impairment testing, assets that do not
generate independent cash inflows are grouped
together into cash-generating units. Each cash¬
generating unit represents the smallest group of
assets that generates cash inflows that are largely
independent of the cash inflows of other assets
or cash-generating units. When a reasonable and
consistent basis of allocation can be identified,
corporate assets are also allocated to individual
cash-generating units, or otherwise they are
allocated to the smallest group of cash-generating
units for which a reasonable and consistent
allocation basis can be identified.
Recoverable amount is the higher of fair value less
costs of disposal and value in use. 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 (or cash-generating unit)
for which the estimates of future cash flows have
not been adjusted.
If the recoverable amount of an asset (or cash¬
generating unit) is estimated to be less than its
carrying amount, the carrying amount of the
asset (or cash-generating unit) is reduced to
its recoverable amount. An impairment loss is
recognised immediately in profit or loss.
When an impairment loss subsequently reverses,
the carrying amount of the asset (or a cash¬
generating unit) is increased to the revised
estimate of its recoverable amount, but so that the
increased carrying amount does not exceed the
carrying amount that would have been determined
had no impairment loss been recognised for the
asset (or cash-generating unit) in prior years.
A reversal of an impairment loss is recognised
immediately in profit or loss.
Basic earnings per share are calculated by dividing
the net profit or loss for the year attributable to
equity shareholders by the weighted average
number of equity shares outstanding during the
year. The weighted average number of equity
shares outstanding during the year is adjusted for
bonus issue, bonus element in a rights issue to
existing shareholders and share split
For the purpose of calculating diluted earnings per
share, the net profit or loss for the year attributable
to equity shareholders and the weighted average
number of shares outstanding during the year
are adjusted for the effects of all potential equity
shares except where the results are anti-dilutive.
As permitted by the Guidance Note on Division II
- Ind AS Schedule III to the Companies Act, 2013,
the Company has elected to present earnings
before finance cost, depreciation, amortisation
and tax (EBITDA) as a separate line item on the
face of the Standalone Statement of Profit and
Loss. The Company measures EBITDA on the
basis of profit/(loss) from continuing operations. In
its measurement, the Company does not include
depreciation and amortization expense, finance
costs, exceptional items and tax expense. Finance
costs comprise interest expense on: borrowings,
bank overdraft, lease liability and late payment of
statutory dues.
p) Borrowing Cost
Borrowing costs are interest and other costs
(including exchange differences relating to
foreign currency borrowings to the extent that
they are regarded as an adjustment to interest
costs) incurred in connection with the borrowing
of funds. Borrowing costs directly attributable
to acquisition or construction of an asset which
necessarily take a substantial period of time to get
ready for their intended use are capitalised as part
of the cost of that asset. Other borrowing costs
are recognised as an expense in the year in which
they are incurred.
Equity shares
Incremental costs directly attributable to the issue
of equity shares are recognised as a deduction
from equity. Income tax relating to transaction
costs of an equity transaction is accounted for in
accordance with Ind AS 12.
Preference shares
The Company redeemable preference shares are
classified as financial liabilities, because they bear
nondiscretionary dividends and are redeemable in
cash by the holders. Non-discretionary dividends
thereon are recognised as interest expense in
profit or loss as accrued.
r) Recognition of Dividend Income, Interest in¬
come or expense
Dividend income is recognised in profit or loss on
the date on which the Companyâs right to receive
payment is established.
Interest income or expense is recognised using
the effective interest method.
The âeffective interest rateâ is the rate that exactly
discounts estimated future cash payments or
receipts through the expected life of the financial
instrument to:
- the gross carrying amount of the financial
asset; or
- the amortised cost of the financial liability.
In calculating interest income and expense, the
effective interest rate is applied to the gross
carrying amount of the asset (when the asset is
not credit-impaired) or to the amortised cost of
the liability. However, for financial assets that
have become credit-impaired subsequent to
initial recognition, interest income is calculated
by applying the effective interest rate to the
amortised cost of the financial asset. If the asset is
no longer credit-impaired, then the calculation of
interest income reverts to the gross basis.
Significant accounting judgements, estimates
and assumptions
The preparation of Standalone Financial
Statements in conformity with Ind AS requires the
management to make judgments, estimates and
assumptions that affect the reported amounts of
income, expenses, assets and liabilities and the
disclosure of contingent liabilities, at the end of
the reporting year. Although these estimates are
based on the managementâs best knowledge of
current events and actions, uncertainty about
these assumptions and estimates could result
in the outcomes requiring a material adjustment
to the carrying amounts of assets or liabilities in
future year. Therefore, actual results could differ
from these estimates.
The estimates and underlying assumptions are
reviewed on an ongoing basis. Revisions to
accounting estimates are recognised in the year in
which the estimate is revised if the revision affects
only that year, or in the year of the revision and
future years if the revision affects both current and
future years.
Judgements
In the process of applying the Companyâs
accounting policies, management has made
the following judgements, which have the most
significant effect on the amounts recognised in
the Standalone Financial Statements:
a) Revenue from contracts with customers
The Company applied judgements that
significantly affect the determination of
the amount and timing of revenue from
contracts with customers, such as identifying
performance obligations, wherein, the
Company provides multiple services as part
of the arrangement. The Company allocated
the portion of the transaction price to services
basis on its relative standalone prices.
Before including any amount of variable
consideration in the transaction price, the
Company considers whether the amount of
variable consideration is constrained. The
Company determined that the estimates of
variable consideration are not constrained
based on its historical experience, business
forecast and the current economic conditions.
In addition, the uncertainty on the variable
consideration will be resolved within a short
time frame.
b) Determining lease term
The Company determines the lease term as
the non-cancellable term of the lease, together
with any periods covered by an option to
extend the lease if it is reasonably certain to
be exercised, or any periods covered by an
option to terminate the lease, if it is reasonably
certain not to be exercised. The Company has
some property lease arrangements with its
vendors that include option to terminate the
contract by either party at any time by giving
advance notice or by the Company as per its
discretion. The Company applied judgment in
evaluating whether it is reasonably certain to
exercise the termination option. It considered
all the factors that create economic incentive
for the Company to continue with lease or
terminate including alternatives available
for the office lease, use of underlying
property, leasehold improvements made and
accordingly determined lease term.
Classification and measurement - Refer note
3 (k) and 31.
Assumptions and estimation uncertainties
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.
Deferred tax assets are recognised for unused
tax losses to the extent that it is probable that
future taxable profit will be available against
which the losses can be utilised. In assessing
the probability, the Company considers
whether the entity has sufficient taxable
temporary differences relating to the same
taxation authority and the same taxable entity,
which will result in taxable amounts against
which the unused tax losses or unused tax
credits can be utilised before they expire.
Significant management assumptions are
required to determine the amount of deferred
tax assets that can be recognised, based upon
the likely timing and the level of future taxable
profits together with future tax planning
strategies.
The Company has tax business losses and
unabsorbed depreciation carried forward
amounting to INR 5,100.57 million (31 March
2025: INR 6,869.65 million). The Company
does not expect sufficient future taxable profit
against which such tax losses can be utilised.
On this basis, the Company has not recognised
deferred tax assets on these carried forward
tax losses. Refer Note 26 for further details.
b) Defined benefit plans (gratuity benefit)
The cost of the defined benefit gratuity plan
and the present value of the gratuity obligation
are determined using 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, a defined benefit obligation
is 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 for plans operated in India, the
management considers the interest rates of
government bonds in currencies consistent
with the currencies of the post-employment
benefit obligation.
The mortality rate are current best estimates of
the expected mortality rates of plan members,
both during and after employment. Future
salary increases and gratuity increases are
based on expected future inflation rates,
seniority, promotion and other relevant factors,
such as supply and demand in the employment
market. Refer Note 27 for further details.
c) Useful life of assets of Property, Plant and
Equipment
The charge in respect of periodic depreciation
is derived after determining an estimate of an
assetâs expected useful life and the expected
residual value at the end of its life. The useful
lives and residual values of Company''s assets
are determined by management at the time
the asset is acquired and reviewed at each
financial year end. Refer Note 4 for further
details.
d) Leases - Estimating the incremental
borrowing rate
The Company cannot readily determine the
interest rate implicit in the lease, therefore, it
uses its incremental borrowing rate (âIBRâ) to
measure lease liabilities. The IBR is the rate of
interest that the Company would have to pay
to borrow over a similar term, and with a similar
security, the funds necessary to obtain an
asset of a similar value to the right-of-use asset
in a similar economic environment. The IBR
therefore reflects what the Company âwould
have to payâ, which requires estimation when
no observable rates are available or when
they need to be adjusted to reflect the terms
and conditions of the lease. The Company
estimates the IBR using observable inputs
(such as market interest rates) when available
and is required to make certain entity-specific
estimates (such as stand-alone credit rating).
Refer Note 38 for further details.
e) Calculation of loss allowance
When measuring ECL the Company uses
reasonable and supportable forward-looking
information, which is based on assumptions
for the future movement of different economic
drivers and how these drivers will affect
each other.
Loss given default is an estimate of the loss
arising on default. It is based on the difference
between the contractual cash flows due and
those that the lender would expect to receive.
Probability of default constitutes a key input
in measuring ECL. Probability of default is an
estimate of the likelihood of default over a
given time horizon, the calculation of which
includes historical data, assumptions and
expectations of future conditions.
Also refer to note 31.
f) Fair value of equity-settled share-based
transaction
Estimating fair value for share-based payment
transactions requires determination of the
most appropriate valuation model, which
depends on the terms and conditions
of the grant. This estimate also requires
determination of the most appropriate inputs
to the valuation model including the expected
life of the share option, volatility and dividend
yield and making assumptions about them.
The Company measures the fair value of
equity-settled transactions with employees at
the grant date using Black-Scholes model. The
assumptions for estimating fair value for share-
based payment transactions are disclosed in
Note 28.
g) Adoption of new accounting principles
Deferred tax related to assets and
liabilities arising from a single transaction
(amendments to Ind AS 12 - Income Taxes)
The amendments clarify that lease transactions
give rise to equal and offsetting temporary
differences and financial statements should
reflect the future tax impacts of these
transactions through recognizing deferred tax.
The company has adopted this amendment
effective 1 April 2023. The company previously
accounted for deferred tax on leases on a
net basis. Following the amendments, the
company has recognized a separate deferred
tax asset in relation to its lease liabilities and
a deferred tax liability in relation to its right-
of-use assets. The adoption did not have
any impact on the current and comparative
years presented in the standalone financial
statements.
h) Recently issued accounting pronouncements
Ministry of Corporate Affairs (âMCAâ) notifies
new standards or amendments to the
existing standards under Companies (Indian
Accounting Standards) Rules as issued from
time to time.
In May 2025, MCA notified amendments to
Ind AS 21 - The Effects of Changes in Foreign
Exchange Rates, applicable w.e.f. April 1,2025.
The Company has reviewed the amendment
and based on its evaluation has determined
that it does not have any impact in its financial
statements.
In August 2025, MCA notified the following
amendments to:
1. Ind AS 1, Presentation of Financial
Statements, applicable w.e.f. April 1,2025
- The amendment relates to classification
of liabilities as current or non-current and
non-current liabilities with covenants.
In the context of classifying a liability as
current, it removes the requirement of
existence of a right to defer settlement
for at least 12 months after the reporting
date and instead requires that the said
right should exist on the reporting date
and have substance. The amendment also
introduces guidance on classification of
liabilities with covenants. The Company
has no impact of these amendments in its
classification criteria of current and non¬
current liabilities.
2. Ind AS 7, Statement of Cash Flows
and Ind AS 107, Financial Instruments:
Disclosures, applicable w.e.f. April 1,2025
- The amendment in Ind AS 7 requires
to inform users of financial statements
of the existence of supplier finance
arrangements and explain the nature of
the arrangements, the carrying amount of
liabilities and the range of payment due
dates. Ind AS 107 has been amended to
add supplier finance arrangements as a
factor that may cause concentration of
liquidity risk. The Company has reviewed
the amendment and based on its
evaluation has determined that it does not
have any impact in its financial statements.
3. Ind AS 12, International Tax Reform - Pillar
Two Model Rules applicable immediately
- The amendments provide a temporary
mandatory relief from deferred tax
accounting for top-up tax and disclose that
they have applied the relief. The Company
has reviewed the amendment and based
on its evaluation has determined that it
does not have any impact in its financial
statements.
Not effective
Ind AS 1 - Presentation of Financial Statements
- For accounting periods beginning on or after
1 April 2026, when an entity breaches any
covenant of a long-term loan arrangement on
or before the end of the reporting period with
the effect that the liability becomes payable
on demand, it classifies the liability as current,
even if the lender agreed, after the reporting
period and before the approval of the financial
statements for issue, not to demand payment
as a consequence of the breach. An entity
classifies the liability as current because, at
the end of the reporting period, it does not
have the right to defer its settlement for at
least 12 months after that date. However, an
entity classifies the liability as non-current if
the lender agreed by the end of the reporting
period to provide a period of grace ending at
least 12 months after the reporting period,
within which the entity can rectify the breach
and during which the lender cannot demand
immediate repayment.
This amendment is to be applied retrospectively
for annual reporting periods beginning on or
after 1 April 2026, in accordance with Ind AS
8, Accounting Policies, accounting Estimates
and Errors.
1. During the year ended 31 March 2025, the Company has invested 2,000,000 equity shares of C10 each in wholly owned
subsidiary i.e. Mobikwik Investment Adviser Private Limited.
2. During the year ended 31 March 2026, the Company has invested 2,000,000 equity shares of C10 each (31 March 2025
: 10,000 equity shares of C10 each) in wholly owned subsidiary i.e. Mobikwik Securities Broking Private Limited.
3. The investment in other equity instruments, compulsorily convertible preference shares and units of investment trust
are not held for trading. Instead, these are held for medium to long-term strategic purposes. Accordingly, the Company
has elected to designate these investment as at FVTOCI as they believe that recognising short-term fluctuations in this
investmentsâ fair value in profit or loss would not be consistent with the Companyâs strategy of holding these investment
for long-term purposes and realising their performance potential in the long run. Refer note 29 for further details.
4. During the year ended 31 March 2025, the Company has invested in 524 compulsorily convertible preference shares of
C28,610 each of Blostem Fintech Private Limited.
5. No Investments were disposed of and there were no transfers of any cumulative gain or loss within equity relating to
these investments during the year ended 31 March 2026 and 31 March 2025.
6. During the year ended 31 March 2026, the Company has invested 10,250,000 equity shares of C10 each (31 March
2025 : Nil) in wholly owned subsidiary i.e. Mobikwik Financial Services Private Limited.
1. The Company has incurred share issue expenses of C351.55 million in connection with public offer of equity shares. Out
of this amount C285.38 million has been incurred during the year ended 31 March 2025. The amount of expenses have
been adjusted against securities premium as permissible under Section 52 of the Companies Act, 2013 on successful
completion of Initial Public Offer (IPO) (refer note 44).
2. Recoverable from users includes amounts receivable from users on account of a fraud in Immediate Payment Service
(IMPS) transactions during the year ended 31 March 2018. Pending collection of these amounts, the amounts have been
fully provided for in the books of account. The Company is in the process of recovering the amounts. The total amount
of transfer through the above mode was C200.24 million, out of which C105.88 million has been recovered till date.
3. Incentive receivable in respect of activation of QR code, Sound Box and Electronic Data Capture (EDC) machines.
1. Trade receivables are non-interest bearing and the average credit period is between 0 to 30 days.
2. The Company always measures the loss allowance for trade receivables at an amount equal to lifetime expected credit loss
(ECL). The Company has used a practical expedient by computing the expected credit loss allowance for trade receivables
based on a provision matrix under simplified approach. The provision matrix takes into account historical credit loss experience
and adjusted for forward-looking information. The expected credit loss allowance is based on the ageing of the days the
receivables are due. Based on internal assessment which is driven by the historical experience and current facts available in
relation to default and delays in collection thereof, the credit risk for these trade receivables is considered low.
3. The Company writes off a trade receivable when there is information indicating that the customer is in severe financial difficulty
and there is no realistic prospect of recovery, e.g. when the customer has been placed under liquidation or has entered into
bankruptcy proceedings.
4. Unbilled revenue amounting to C113.69 million recoverable from one of its lending partners has been provided for during
the year. The company reassessed the recoverability of the said revenue in conjunction with the applicable digital lending
guidelines issued by RBI and consequently provided the same.
The following table details the risk profile of trade receivables based on the Companyâs provision matrix. As the Companyâs
historical credit loss experience does not show significantly different loss patterns for different customer segments, the provision
for loss allowance based on past due status is not further distinguished between the Companyâs different customer segments.
10 (c) Terms/ rights attached to shares
i) Terms/ rights attached to equity shares:
Voting
Each holder of equity share is entitled to one vote per share held.
The Company will declare and pay dividend in Indian Rupees. The dividend proposed by the Board of Directors is
subject to approval of the shareholders in ensuing Annual General Meeting, except in the case where interim dividend
is distributed. The Company has not declared or paid any dividend since its incorporation.
In the event of liquidation of the Company, the holders of equity shares shall be entitled to receive all of the remaining
assets of the Company, after distribution of all preferential amounts. Such distribution amounts will be in proportion to
the number of equity shares held by the shareholders.
ii) Terms/rights attached to equity shares- Class A
Voting
To the extent that, and at all times when, applicable laws do not permit the holders of the series A CCCPS to exercise
voting rights on the series A CCCPS in the manner contemplated, the class A equity shares shall carry such number of
votes as may be necessary to permit each holder of the Series A CCCPS to vote, on all matters submitted to the vote of
the shareholders of Company, in such manner and such proportion as each such holder of the Series A CCCPS would
have been entitled to, had each such holder of the Series A CCCPS elected to convert its Series A CCCPS into Equity
shares based on the then applicable Series A Conversion Price. At all other times and in all other events, including the
event that a holder of Class A Equity Shares does not hold any Series A CCCPS, then the Class A Equity Shares held by
such Shareholder shall carry one (1) vote each.
The Company will declare and pay dividend in Indian Rupees. The dividend proposed by the Board of Directors is
subject to approval of the shareholders in ensuing Annual General Meeting, except in the case where interim dividend
is distributed. The Company has not declared or paid any dividend since its incorporation.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of
the Company after distribution of all preferential amounts. The distribution will be in proportion to the number of equity
shares held by the shareholders.
10 (d) The Company had not issued any bonus shares or bought back any shares during the five years immediately
preceding the reporting date, except that the Company issued 15,617,940 equity shares of C2 each as bonus (3 bonus
shares for each equity share), which was approved by the the Board of Directors and shareholders of the Company on
22 June 2021. (Refer note 41).
24.1 With effect from November 21, 2025, the Government of India notified the Code on Social Security, 2020, the
Occupational Safety, Health and Working Conditions Code, 2020, the Industrial Relations Code, 2020, and the Code on
Wages, 2019 (collectively, the Labour Codes), which consolidate and replace the existing central labour laws. The Ministry
of Labour and Employment released the draft rules under the Labour Codes on December 30, 2025; however, these
rules are yet to be notified. In addition, several State Governments have issued state-specific legislations pursuant to the
Labour Codes.
The Company has evaluated the overall impact of the new labour code and considered the impact of past service cost under
exceptional items amounting to C18.38 million for gratuity and C14.59 million for leave provisions. Further, C2.24 million is
impact related to provident fund.
24.2 During the year ended 31 March 2026, the Company filed a First Information Report (F.I.R.) on 13 September 2025,
wherein it was alleged that certain registered merchants and users, primarily located in the Nuh and Mewat regions of Haryana,
colluded to exploit a technical bug in the Company''s application. It is further alleged that these merchants fraudulently
claimed unauthorized settlements totaling C403.59 million from the Company, thereby gaining an unfair financial advantage
and causing wrongful loss to the Company. As of 31 March 2026, the Company has successfully recovered C276.02 million,
which has been credited to its bank accounts. Additionally, C9.26 million remains secured through merchant affidavits and
court order, which the Company expects to recover in due course.
The Company is actively pursuing the recovery of the remaining balance of C118.31 million, on which the Company has
recognized expense for Expected Credit Loss and presented as "exceptional items".
25. Earnings per share (EPS)
Basic EPS amounts are calculated by dividing the loss for the year attributable to equity holders of the Company by the
weighted average number of equity shares outstanding during the year.
Diluted EPS are calculated by dividing the loss for the year attributable to the equity holders of the Company by weighted
average number of Equity shares outstanding during the year plus the weighted average number of equity shares that would
be issued on conversion of all the dilutive potential equity shares into equity shares. The following reflects the income and
share data used in the basic and diluted EPS computations:
The Company offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets
and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the
same tax authority.
27. Employee benefits
A Defined contribution plans
The Company makes contributions towards Provident Fund to a defined contribution retirement benefit plan for
qualifying employees. The Companyâs contribution to the Employee Provident Fund is deposited with the Provident
Fund Commissioner which is recognised by Income Tax authorities.
The Company has recognised C36.58 million during the year ended 31 March 2026 (31 March 2025: C35.43 million)
for provident fund and other funds in the Standalone Statement of Profit and Loss. The contributions payable to these
plans by the Company are at rates specified in the rules of the schemes. (refer note 20 and 24.1)
Gratuity - defined benefit plan
The Companyâs gratuity scheme provides for lump sum payment to vested employees at retirement, death while in
employment or on termination of employment of an amount equivalent to 15 days'' basic salary payable for each
completed year of service or part thereof in excess of 6 months, subject to a maximum limit of C2 million in terms of the
provisions of Gratuity Act, 1972. Vesting occurs upon completion of 5 years of service.
The present value of the defined benefit obligation and the related current service cost were measured using the
Projected Unit Credit Method with actuarial valuations being carried out at each reporting date.
The Company regularly assesses these assumptions with the projected long-term plans and prevalent industry
standards.
d) The plan typically exposes the Company to actuarial risks such as: interest rate, longetivity risk and salary risk.
Interest rate risk
A decrease in the bond interest rate will increase the plan liability.
Longetivity risk
The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of
plan participants both during and after their employment. An increase in the life expectancy of the plan participants will
increase the planâs liability.
Salary risk
The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants.
As such, an increase in the salary of the plan participants will increase the planâs liability.
Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other
assumptions constant, would have affected the defined benefit obligation by the amounts shown below:
28. Employee Stock Option Plan - 2014 ("The 2014 Plan")
(a) The Company established the Employees Stock Option Scheme 2014 (ESOP 2014) which was approved by the
shareholders vide their special resolution dated on 5 August 2014. Under the plan, the Company is authorised to issue
up to 4,564,260 equity shares of C2 each to eligible employees. Employees covered by the plan are granted an option
to purchase shares of the Company subject to the requirements of vesting.
The ESOP 2014 scheme was amended and approved by the Board of Directors of the Company at their meeting
held on 07 July 2021. Further Amended ESOP 2014 scheme was aligned in accordance with the SEBI (Share Based
Employee Benefits and Sweat Equity) Regulations, 2021 which was approved in the board meeting held on 07
December, 2021. The Plan is further amended pursuant to the listing of the Company on Recognized Stock Exchange,
to be in compliance with Securities and Exchange Board of India (Share Based Employee Benefits & Sweat Equity)
Regulations, 2021 ("SEBI (SBEB & SE) Regulations") by the Board on February 04, 2025 and has been further amended
and ratified by the shareholders on March 06, 2025.
The vesting condition of options is subject to continued employment.
The Company has issued above options with graded vesting with vesting period ranging from 1 to 4 years.
Exercise period:
Exercise period would expire at the end of 7 years from the date of vesting of options.
(b) Movements during the year
The following table represents the number and weighted average exercise prices (WAEP) of, and movements in, share
options during the year:
b) The following methods / assumptions were used to estimate the fair values:
i) The carrying value of bank deposits, trade receivables, cash and cash equivalents, trade payables, security
deposits, loans, borrowings and other current financial assets and other current financial liabilities measured at
amortised cost approximate their fair value due to the short-term maturities of these instruments.
ii) The fair value of non-current financial assets and financial liabilities measured are determined by discounting
future cash flows using current rates of instruments with similar terms and credit risk. The current rates used
does not reflect significant changes from the discount rates used initially. Therefore, the carrying value of these
instruments measured at amortised cost approximate their fair value.
iii) Fair value of Investment in NPCI, Blostem Fintech Pvt Ltd and AL trust is based on net asset value and discounted
future cashflows respectively.
c) There were no transfers between any levels for Fair value measurements.
e) The following is the basis of categorising the financial instruments measured at fair value into Level 1 to Level 3:
Level 1: This level includes financial assets that are measured by reference to quoted prices (unadjusted) in active
markets for identical assets or liabilities.
Level 2: This level includes financial assets and liabilities, measured using inputs other than quoted prices included
within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from
prices).
Level 3: This level includes financial assets and liabilities measured using inputs that are not based on observable
market data (unobservable inputs). Fair values are determined in whole or in part, using a valuation model based on
assumptions that are neither supported by prices from observable current market transactions in the same instrument
nor are they based on available market data.
30. Capital management
The Company manages its capital to ensure that it will be able to continue as a going concern while maximising the return
to stakeholders through the optimization of the debt and equity balance. The capital structure of the Company consists of
net debt (note 12) offset by cash and bank balance (note 9) and total equity of the company. The Company is not subject to
any externally imposed capital requirements.
The Company''s board of directors reviews the capital structure of the Company on a periodic basis. As part of this review,
the Board of directors considers the cost of capital, risks associated with each class of capital requirements and maintenance
of adequate liquidity.
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 monitors capital on the basis of the following gearing ratio:
Net debt (total borrowings net of cash and cash equivalents)
divided by
Total equity (as shown in the balance sheet).
The gearing ratio at end of the reporting year was as follows.
31. Financial risk management objectives and policies
The Company''s management monitors and manages key financial risk relating to the operations of the Company by analysing
exposures by degree & magnitude of risk. The risks include market risk (including interest rate risk, currency risk and other
price risk), credit risk and liquidity risk.
The Companyâs board of directors has overall responsibility for the establishment and oversight of the Company''s risk
management framework. The Companyâs risk management policies are established to identify and analyse the risks faced
by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management
policies and systems are reviewed regularly to reflect changes in market conditions and the Companyâs activities.
Credit risk is the risk that a counter party will not meet its obligations under a financial instrument or customer contract,
leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables
and financial guarantee provided by the Company) and from its financing activities, including deposits with banks and
financial institutions, mutual funds and other financial assets. Management has a credit policy in place and the exposure
to credit risk is monitored on an ongoing basis.
The carrying amounts of financial assets and the maximum amount the Company would have to pay if the financial
guarantee is called upon, irrespective of the likelihood of the guarantee being exercised, represents the maximum
credit risk exposure.
Credit risk management considers available reasonable and supportive forward-looking information including indicators
like external credit rating (as far as available), macro-economic information (such as regulatory changes, government
directives, market interest rate).
The Company is exposed to credit risk in the event of non-payment by trade partners. Receivable credit risk is managed
subject to the Company''s established policy, procedures and control relating to trade partners risk management. The
Company uses a provision matrix to determine impairment loss allowance on portfolio of its trade receivables through
a lifetime expected credit loss. The provision matrix is based on its historically observed default rates over the expected
life of the trade receivables and is adjusted for forward-looking estimates.
The Companyâs exposure to credit risk is from the Digital financial services business in which the Company facilitates
credit to its users through financing partners.The Company provides financial guarantees on the Digital financial
services business to its financing partners to cover the loss on the credit extended to its users. Financial guarantees
are capped to the extent agreed with the respective partner in line with Digital Lending guidelines issued by RBI.
A financial guarantee contract is a contract that requires the issuer to make specified payments to reimburse the holder
for a loss it incurs because a specified debtor fails to make payments when due in accordance with the terms of a debt
instrument.
The Company manages and controls credit risk by setting limits on the amount of risk it is willing to accept for individual
users and for geographical and industry concentrations, and by monitoring exposures in relation to such limits.
Credit risk is monitored by the credit risk department of the Companyâs independent Risk Management Unit (RMU). It
is their responsibility to review and manage credit risk, including environmental and social risk for all types of users.
The RMU consist of experts and credit risk managers that have deep expertise in the domain of financial and credit
risk of Digital financial services business and are responsible for managing the risk of Digital financial services portfolio
including credit risk systems, policies, models and reporting.
The Company has established a credit quality review process to provide early warning signals to identify the changes
in the creditworthiness of its Digital financial services users. User limits are established by the use of a credit risk
classification system, which assigns each Digital financial services user a risk rating. Risk ratings are subject to regular
revision. The credit quality review process enables the periodic assessment of the potential loss to which the Company
is exposed thereby allowing it to take corrective actions.
The Company has, based on current available information and based on the policy approved by the Board of Directors,
determined the provision for impairment of financial assets.
Concentrations arise when a number of users are engaged in similar business activities, or activities in the same
geographical region, or have similar economic features that would cause their ability to meet contractual obligations to
be similarly affected by changes in economic, political or other conditions.
In order to avoid excessive concentrations of risk, the Companyâs policies and procedures include specific guidelines
to focus on spreading its lending portfolio across various products/states/customer base with a cap on maximum limit
of exposure for an individual/Company. Accordingly, the Company does not have concentration risk.
While Mobikwik has diversified partners to support platform for financial services products, one of the products that
scaled rapidly during the year ended 31 March 2026, combined with the updated regulations over the past one year,
led to two of Company''s lending partners contributing significantly to overall revenue. The Company is in process to
substantially reduce this concentration risk over the next 12 months.
Expected credit loss on financial guarantee contract
The Company has, based on current available information and based on the policy approved by the Board of Directors,
calculated impairment loss allowance in the Digital financial services business using the Expected Credit Loss (ECL)
model to cover the guarantees provided to its financing partners.
Expected credit loss (ECL) methodology
The Company has assessed the credit risk associated with its financial guarantee contracts for provision of Expected
Credit Loss (ECL) as at the reporting dates. The Company makes use of various reasonable supportive forward-looking
parameters which are both qualitative as well as quantitative while determining the change in credit risk and the
probability of default. The underlying ECL parameters have been detailed out in the note on " Summary of significant
accounting policies".
Since, the Company offers Digital financial services and other credit products to a large retail customer base on its
digital platform via marketplace model, there is no significant credit risk of any individual customer that may impact the
Company adversely, and hence the Company has calculated its ECL allowances on a collective basis.
The Company has developed an ECL Model that takes into consideration the stage of delinquency, Probability of
Default (PD), Exposure at Default (EAD) and Loss Given Default (LGD).
I. Probability of Default (PD): represents the likelihood of default over a defined time horizon. The definition of PD is
taken as 90 days past due for all loans.
II. Exposure at Default (EAD): represents what is the user''s likely borrowing at the time of default.
III. Loss Given Default (LGD): represents expected losses on EAD given the event of default.
Each financial guarantee contract is classified into (a) Stage 1, (b) Stage 2 and (c) Stage 3 (Default or Credit Impaired).
Delinquency buckets have been considered as the basis for the staging of all credit exposure under the guarantee
contract in the following manner:
a) Stage 1: 0-30 days past due loans
b) Stage 2: More than 30 and up to 90 days past due loans
c) Stage 3: Above 90 days past due loans
Inputs, assumptions and estimation techniques used to determine expected credit loss
The Company ECL provision are made on the basis of the Company historical loss experience and future expected
credit loss, after factoring in various macro-economic parameter. In calculating the ECL, given the uncertainty over
the potential macro-economic impact, the Company management has considered internal and external information
including credit reports and economic forecasts up to the date of approval of these financial results. The selection of
variables was made purely based on business sense.
The selected macro- economic variables were used to forecast the forward-looking PDâs with macro-economic overlay
incorporated. Best, base and worst scenarios were created for all the variables and default rates were estimated for
all the scenarios. These default rates were then used with the same LGD and EAD to arrive at the expected credit loss
for all three cases. The three cases were then assigned weights and a final probability-weighted expected credit loss
estimate was computed.
1. Gross exposure at default (A) represents the maximum amount the Company has guaranteed under the
respective financial guarantee contracts including amount outstanding, accrued interest, future interest due and
any expected drawdowns in future from the sanctioned loan limits as on the reporting date.
2. The Expected Credit Loss (B) allowance is computed as a product of PD, LGD and EAD adjusted for time value of
money using a rate which is a reasonable approximation of EIR.
3. Net Carrying Amount (C) represents the Expected Credit Loss (ECL) recognized on financial guarantee contracts.
4. Impact on Standalone Statement of profit or loss (D) is the loss allowance recognized during the financial year.
Note - During the year ended 31 March 2026 and 31 March 2025, financial obligation amounting to C803.74 million
and C351.41 million respectively were paid.
The entire portfolio moved to Stage 3 during FY''25 and was settled as well, hence no further ECL allowance is required.
As per RBI guidelines on Default Loss Guarantee in Digital Lending, the Company has issued default loss guarantees
(DLG) to regulated lending partners in respect of loans provided by the lending partners to customers through
Mobikwik platform. The Companyâs maximum exposure under these guarantees is contractually capped to 5% of the
total disbursed loan amount. These guarantees are initially recognized at fair value using a Level 3 discounted cash
flow model based on expected credit losses. Fair value of these guarantees at inception is likely to equal the premium
received and recognised with equivalent financial guarantee fees receivable balance. These guarantees are backed by
bank fixed deposits, as collateral.
As of the reporting date, the fair value of these guarantees is C982.99 million. Total provision recognized through the
Statement of Profit and Loss account during the year is C981.00 million (31 March 2025 : C402.41 million) and amount
paid / settled during the year is C803.74 million (31 March 2025 : C174.48 million). The Company monitors borrower
performance and maintains a provision based on expected credit losses, which is reassessed quarterly.
Cash and cash equivalents, bank deposits and investments in mutual funds
The Company maintains its cash and cash equivalents, bank deposits and investment in mutual funds with reputed
banks and financial institutions. The credit risk on these instruments is limited because the counterparties are banks
with high credit ratings assigned by international credit rating agencies.
The Company monitors the credit rating of the counterparties on regular basis. These instruments carry very minimal
credit risk based on the financial position of parties and company ''s historical experience of dealing with the parties.
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial
liabilities that are settled by delivering cash or another financial asset. The Companyâs approach to managing liquidity
is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both
normal and stressed conditions, without incurring unacceptable losses or risking damage to the Companyâs reputation.
Ultimate responsibility for liquidity risk management rests with the board of directors, who has established an
appropriate liquidity risk management framework for the management of the Company''s short-term, medium-term
and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining
adequate reserves, banking facilities, by continuously monitoring forecast and actual cash flows, and by matching the
maturity profiles of financial assets and liabilities.
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes
in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as
equity price risk and commodity risk. Financial instruments affected by market risk include foreign currency receivables,
deposits, investments in mutual funds. The Company has in place appropriate risk management policies to limit the
impact of these risks on its financial performance. The Company ensures optimization of cash through fund planning
and robust cash management practices.
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market interest rates. The sensitivity disclosed in the below is attributable to bank overdraft facility availed
by the Company.
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes
in foreign exchange rates. The Company is exposed to currency risk to the extent that there is a mismatch between the
currencies in which sales and purchase of services are denominated (i.e. USD) and the functional currency of Company
(i.e. INR).The sensitivity related to currency risk is disclosed below.
The Companyâs exposure to foreign currency risk was based on the following amounts as at the reporting dates
between USD and INR:
33 Contingent liabilities and commitments (to the extent not provided for)
(a) The income tax assessment for FY 2014-15 and FY 2015-16 was completed by the income tax authorities whereby a
sum of C243.48 million and C1,109.86 million respectively, had been adjusted, primarily, on account of disallowance
of advertisement and business promotion expenses. There is Nil demand for the respective years due to availability of
sufficient brought forward tax losses to offset the tax demand. The Company expects remote possibility for any cash
outlay. The matter is subjudice at appropriate appellate levels.
(b) The income tax assessment for FY 22-23 was completed by the income tax authorities whereby a sum of C57.33 million
had been adjusted solely on account of non-response by certain vendors to the notices issued by the Assessing Officer
under Section 133(6). There is Nil de
Provisions
Provisions are recognised when the Company has a
present obligation (legal or constructive) as a result of a
past event, it is probable that the Company will be required
to settle that obligation and a reliable estimate can be
made of the amount of the obligation. Provisions are
determined by discounting the expected future cash flows
(representing The amount recognised as a provision is the
best estimate of the consideration expenditure required
to settle the present obligation at the reporting date) at a
pre-tax rate that reflects current market assessments of the
time value of money and the risks specific to the liability,
taking into account the risks and uncertainties surrounding
the obligation. Where a provision is measured using the
cash flows estimated to settle the present obligation, its
carrying amount is the present value of those cash flows
(when the effect of the time value of money is material). The
unwinding of the discount is recognised as finance cost.
Expected future operating losses are not provided for.
A contingent liability is possible obligation that arises from
past events whose existence will be confirmed by the
occurrence or non-occurrence of one or more uncertain
future events beyond the control of the Company or a
present obligation that is not recognised because it is not
probable that an outflow of resources will be required to
settle the obligation. A contingent liability also arises in
extremely rare cases where there is a liability that cannot
be recognised because it cannot be measured reliably.
The Company does not recognise a contingent
liability but discloses its existence in the Standalone
Financial Statements.
m) Impairment of non - financials assets
At the end of each reporting year, the Company reviews
the carrying amounts of its assets to determine whether
there is any indication that those assets have suffered
an impairment loss. If any such indication exists, the
recoverable amount of the asset is estimated in order
to determine the extent of the impairment loss (if any).
For impairment testing, assets that do not generate
independent cash inflows are grouped together into
cash-generating units. Each cash-generating unit
represents the smallest group of assets that generates
cash inflows that are largely independent of the cash
inflows of other assets or cash-generating units. When
a reasonable and consistent basis of allocation can
be identified, corporate assets are also allocated to
individual cash-generating units, or otherwise they are
allocated to the smallest group of cash-generating units
for which a reasonable and consistent allocation basis
can be identified.
Recoverable amount is the higher of fair value less costs
of disposal and value in use. 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 (or cash-generating
unit) for which the estimates of future cash flows have
not been adjusted.
If the recoverable amount of an asset (or cash-generating
unit) is estimated to be less than its carrying amount, the
carrying amount of the asset (or cash-generating unit) is
reduced to its recoverable amount. An impairment loss
is recognised immediately in profit or loss.
When an impairment loss subsequently reverses, the
carrying amount of the asset (or a cash-generating unit)
is increased to the revised estimate of its recoverable
amount, but so that the increased carrying amount does
not exceed the carrying amount that would have been
determined had no impairment loss been recognised
for the asset (or cash-generating unit) in prior years. A
reversal of an impairment loss is recognised immediately
in profit or loss.
o) Earnings per share
Basic earnings per share are calculated by dividing
the net profit or loss for the year attributable to equity
shareholders by the weighted average number of equity
shares outstanding during the year. The weighted average
number of equity shares outstanding during the year is
adjusted for bonus issue, bonus element in a rights issue to
existing shareholders and share split
For the purpose of calculating diluted earnings per share,
the net profit or loss for the year attributable to equity
shareholders and the weighted average number of
shares outstanding during the year are adjusted for the
effects of all potential equity shares except where the
results are anti-dilutive.
p) Measurement of EBITDA
As permitted by the Guidance Note on Division II -
Ind AS Schedule III to the Companies Act, 2013, the
Company has elected to present earnings before
finance cost, depreciation, amortisation and tax (EBITDA)
as a separate line item on the face of the Standalone
Statement of Profit and Loss. The Company measures
EBITDA on the basis of profit/(loss) from continuing
operations. In its measurement, the Company does not
include depreciation and amortization expense, finance
costs, exceptional items and tax expense. Finance
costs comprise interest expense on: borrowings,
bank overdraft, lease liability and late payment of
statutory dues.
q) Borrowing Cost
Borrowing costs are interest and other costs (including
exchange differences relating to foreign currency
borrowings to the extent that they are regarded as an
adjustment to interest costs) incurred in connection
with the borrowing of funds. Borrowing costs directly
attributable to acquisition or construction of an asset
which necessarily take a substantial period of time to get
ready for their intended use are capitalised as part of the
cost of that asset. Other borrowing costs are recognised
as an expense in the year in which they are incurred.
r) Share Capital
Equity shares
Incremental costs directly attributable to the issue of
equity shares are recognised as a deduction from equity.
Income tax relating to transaction costs of an equity
transaction is accounted for in accordance with Ind AS 12.
Preference shares
The Company redeemable preference shares are
classified as financial liabilities, because they bear
nondiscretionary dividends and are redeemable in
cash by the holders. NonOdiscretionary dividends
thereon are recognised as interest expense in profit or
loss as accrued.
s) Recognition of Dividend Income, Interest income or
expense
Dividend income is recognised in profit or loss on the
date on which the Company''s right to receive payment
is established.
Interest income or expense is recognised using the
effective interest method.
The âeffective interest rate'' is the rate that exactly
discounts estimated future cash payments or receipts
through the expected life of the financial instrument to:
- the gross carrying amount of the financial asset; or
- the amortised cost of the financial liability.
In calculating interest income and expense, the effective
interest rate is applied to the gross carrying amount of
the asset (when the asset is not credit-impaired) or to
the amortised cost of the liability. However, for financial
assets that have become credit-impaired subsequent
to initial recognition, interest income is calculated by
applying the effective interest rate to the amortised cost
of the financial asset. If the asset is no longer credit-
impaired, then the calculation of interest income reverts
to the gross basis.
3. Significant accounting judgements, estimates
and assumptions
The preparation of Standalone Financial Statements
in conformity with Ind AS requires the management to
make judgments, estimates and assumptions that affect
the reported amounts of income, expenses, assets and
liabilities and the disclosure of contingent liabilities, at
the end of the reporting year. 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 the outcomes
requiring a material adjustment to the carrying amounts
of assets or liabilities in future year. Therefore, actual
results could differ from these estimates.
The estimates and underlying assumptions are reviewed
on an ongoing basis. Revisions to accounting estimates
are recognised in the year in which the estimate is
revised if the revision affects only that year, or in the year
of the revision and future years if the revision affects
both current and future years.
Judgements
In the process of applying the Company''s accounting
policies, management has made the following
judgements, which have the most significant effect
on the amounts recognised in the Standalone
Financial Statements:
a) Revenue from contracts with customers
The Company applied judgements that significantly
affect the determination of the amount and timing
of revenue from contracts with customers, such as
identifying performance obligations, wherein, the
Company provides multiple services as part of the
arrangement. The Company allocated the portion of
the transaction price to services basis on its relative
standalone prices.
Before including any amount of variable
consideration in the transaction price, the
Company considers whether the amount of
variable consideration is constrained. The
Company determined that the estimates of variable
consideration are not constrained based on its
historical experience, business forecast and the
current economic conditions. In addition, the
uncertainty on the variable consideration will be
resolved within a short time frame.
b) Determining lease term
The Company determines the lease term as the
non-cancellable term of the lease, together with
any periods covered by an option to extend the
lease if it is reasonably certain to be exercised,
or any periods covered by an option to terminate
the lease, if it is reasonably certain not to be
exercised. The Company has some property lease
arrangements with its vendors that include option
to terminate the contract by either party at any time
by giving advance notice or by the Company as
per its discretion. The Company applied judgment
in evaluating whether it is reasonably certain to
exercise the termination option. It considered all
the factors that create economic incentive for
the Company to continue with lease or terminate
including alternatives available for the office lease,
use of underlying property, leasehold improvements
made and accordingly determined lease term.
c) Financial Instruments
Classification and measurement - Refer
note 3 (k) and 30.
Assumptions and estimation uncertainties
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
Deferred tax assets are recognised for unused tax
losses to the extent that it is probable that future
taxable profit will be available against which the
losses can be utilised. In assessing the probability,
the Company considers whether the entity has
sufficient taxable temporary differences relating
to the same taxation authority and the same
taxable entity, which will result in taxable amounts
against which the unused tax losses or unused
tax credits can be utilised before they expire.
Significant management assumptions are required
to determine the amount of deferred tax assets that
can be recognised, based upon the likely timing
and the level of future taxable profits together with
future tax planning strategies.
The Company has tax business losses and
unabsorbed depreciation carried forward
amounting to H 6,869.65 million (31 March 2024: H
6,530.85 million). The Company does not expect
sufficient future taxable profit against which
such tax losses can be utilised. On this basis, the
Company has not recognised deferred tax assets
on these carried forward tax losses. Refer Note 25
for further details.
b) Defined benefit plans (gratuity benefit)
The cost of the defined benefit gratuity plan and
the present value of the gratuity obligation are
determined using 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, a defined benefit
obligation is 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 for plans operated in India, the management
considers the interest rates of government bonds
in currencies consistent with the currencies of the
post-employment benefit obligation.
The mortality rate are current best estimates of
the expected mortality rates of plan members,
both during and after employment. Future salary
increases and gratuity increases are based on
expected future inflation rates, seniority, promotion
and other relevant factors, such as supply and
demand in the employment market. Refer Note 26
for further details.
c) Useful life of assets of 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 Company''s assets are determined by
management at the time the asset is acquired and
reviewed at each financial year end. Refer Note 4
for further details.
d) Leases - Estimating the incremental borrowing rate
The Company cannot readily determine the
interest rate implicit in the lease, therefore, it uses
its incremental borrowing rate (âIBRâ) to measure
lease liabilities. The IBR is the rate of interest that
the Company would have to pay to borrow over a
similar term, and with a similar security, the funds
necessary to obtain an asset of a similar value
to the right-of-use asset in a similar economic
environment. The IBR therefore reflects what the
Company âwould have to pay'', which requires
estimation when no observable rates are available
or when they need to be adjusted to reflect the
terms and conditions of the lease. The Company
estimates the IBR using observable inputs (such
as market interest rates) when available and is
required to make certain entity-specific estimates
(such as stand-alone credit rating). Refer Note 37
for further details.
e) Calculation of loss allowance
When measuring ECL the Company uses
reasonable and supportable forward-looking
information, which is based on assumptions for the
future movement of different economic drivers and
how these drivers will affect each other.
Loss given default is an estimate of the loss arising
on default. It is based on the difference between
the contractual cash flows due and those that the
lender would expect to receive.
Probability of default constitutes a key input in
measuring ECL. Probability of default is an estimate
of the likelihood of default over a given time horizon,
the calculation of which includes historical data,
assumptions and expectations of future conditions.
Also refer to note 30.
f) Fair value of equity-settled share-based
transaction
Estimating fair value for share-based payment
transactions requires determination of the most
appropriate valuation model, which depends
on the terms and conditions of the grant. This
estimate also requires determination of the most
appropriate inputs to the valuation model including
the expected life of the share option, volatility and
dividend yield and making assumptions about them.
The Company measures the fair value of equity-
settled transactions with employees at the grant
date using Black-Scholes model. The assumptions
for estimating fair value for share-based payment
transactions are disclosed in Note 28.
g) Adoption of new accounting principles
Deferred tax related to assets and liabilities arising
from a single transaction (amendments to Ind AS
12 - Income Taxes)
The amendments clarify that lease transactions give
rise to equal and offsetting temporary differences
and financial statements should reflect the future tax
impacts of these transactions through recognizing
deferred tax. The company has adopted this
amendment effective 1 April 2023. The company
previously accounted for deferred tax on leases
on a net basis. Following the amendments, the
company has recognized a separate deferred tax
asset in relation to its lease liabilities and a deferred
tax liability in relation to its right-of-use assets. The
adoption did not have any impact on the current
and comparative years presented in the standalone
financial statements.
h) Recently issued accounting pronouncements
Ministry of Corporate Affairs (âMCAâ) notifies
new standards or amendments to the existing
standards under Companies (Indian Accounting
Standards) Rules as issued from time to time. For
the year ended 31 March 2025, MCA has notified
Ind AS 117 Insurance Contracts and amendments to
Ind AS 116 - Leases relating to sale and leaseback
transactions. The Company has reviewed the new
pronouncements and based on its evaluation has
determined that it does not have any significant
impact in its financial statements.
Notes:
1. Trade receivables are non-interest bearing and the average credit period is between 0 to 30 days.
2. The Company always measures the loss allowance for trade receivables at an amount equal to lifetime expected credit loss
(ECL). The Company has used a practical expedient by computing the expected credit loss allowance for trade receivables
based on a provision matrix under simplified approach. The provision matrix takes into account historical credit loss
experience and adjusted for forward-looking information. The expected credit loss allowance is based on the ageing of the
days the receivables are due. Based on internal assessment which is driven by the historical experience and current facts
available in relation to default and delays in collection thereof, the credit risk for these trade receivables is considered low.
3. The Company writes off a trade receivable when there is information indicating that the customer is in severe financial
difficulty and there is no realistic prospect of recovery, e.g. when the customer has been placed under liquidation or has
entered into bankruptcy proceedings.
The following table details the risk profile of trade receivables based on the Company''s provision matrix. As the Company''s
historical credit loss experience does not show significantly different loss patterns for different customer segments, the provision
for loss allowance based on past due status is not further distinguished between the Company''s different customer segments.
10 (c) Terms/ rights attached to shares
i) Terms/ rights attached to equity shares:
Voting
Each holder of equity share is entitled to one vote per share held.
Dividend
The Company will declare and pay dividend in Indian Rupees. The dividend proposed by the Board of Directors is
subject to approval of the shareholders in ensuing Annual General Meeting, except in the case where interim dividend
is distributed. The Company has not declared or paid any dividend since its incorporation.
Liquidation
In the event of liquidation of the Company, the holders of equity shares shall be entitled to receive all of the remaining
assets of the Company, after distribution of all preferential amounts. Such distribution amounts will be in proportion
to the number of equity shares held by the shareholders.
ii) Terms/rights attached to equity shares- Class A
Voting
To the extent that, and at all times when, applicable laws do not permit the holders of the series A CCCPS to exercise
voting rights on the series A CCCPS in the manner contemplated, the class A equity shares shall carry such number
of votes as may be necessary to permit each holder of the Series A CCCPS to vote, on all matters submitted to the
vote of the shareholders of Company, in such manner and such proportion as each such holder of the Series A CCCPS
would have been entitled to, had each such holder of the Series A CCCPS elected to convert its Series A CCCPS
into Equity shares based on the then applicable Series A Conversion Price. At all other times and in all other events,
including the event that a holder of Class A Equity Shares does not hold any Series A CCCPS, then the Class A Equity
Shares held by such Shareholder shall carry one (1) vote each.
Dividend
The Company will declare and pay dividend in Indian Rupees. The dividend proposed by the Board of Directors is
subject to approval of the shareholders in ensuing Annual General Meeting, except in the case where interim dividend
is distributed. The Company has not declared or paid any dividend since its incorporation.
Liquidation
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets
of the Company after distribution of all preferential amounts. The distribution will be in proportion to the number of
equity shares held by the shareholders.
10 (d) The Company had not issued any bonus shares or bought back any shares during the five years immediately preceeding the
reporting date, except that the Company issued 15,617,940 equity shares of H 2 each as bonus (3 bonus shares for each equity
share), which was approved by the the Board of Directors and shareholders of the Company on 22 June 2021. (Refer note 41).
26. Employee benefits
A Defined contribution plans
The Company makes contributions towards Provident Fund to a defined contribution retirement benefit plan for
qualifying employees. The Company''s contribution to the Employee Provident Fund is deposited with the Provident Fund
Commissioner which is recognised by Income Tax authorities.
The Company has recognised H 35.43 million during the year ended 31 March 2025 (31 March 2024: H 26.69 million) for
provident fund and other funds in the Standalone Statement of Profit and Loss. The contributions payable to these plans
by the Company are at rates specified in the rules of the schemes.
B Defined benefit plans
Gratuity - defined benefit plan
The Company''s gratuity scheme provides for lump sum payment to vested employees at retirement, death while in
employment or on termination of employment of an amount equivalent to 15 days'' basic salary payable for each completed
year of service or part thereof in excess of 6 months, subject to a maximum limit of H 2 million in terms of the provisions of
Gratuity Act, 1972. Vesting occurs upon completion of 5 years of service.
The present value of the defined benefit obligation and the related current service cost were measured using the Projected
Unit Credit Method with actuarial valuations being carried out at each reporting date.
The amount included in the standalone balance sheet arising from the Company''s obligation in respect of its gratuity
plan is as follows:
d) The plan typically exposes the Company to actuarial risks such as: interest rate, longetivity risk and salary risk.
Interest rate risk
A decrease in the bond interest rate will increase the plan liability.
Longetivity risk
The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality
of plan participants both during and after their employment. An increase in the life expectancy of the plan participants
will increase the plan''s liability.
Salary risk
The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan
participants. As such, an increase in the salary of the plan participants will increase the plan''s liability.
27. Employee Stock Option Plan - 2014 (âThe 2014 Planâ)
(a) The Company established the Employees Stock Option Scheme 2014 (âESOP 2014â) which was approved by the
shareholders vide their special resolution dated on 5 August 2014. Under the plan, the Company is authorised to issue up
to 4,564,260 equity shares of H 2 each to eligible employees. Employees covered by the plan are granted an option to
purchase shares of the Company subject to the requirements of vesting.
The ESOP 2014 scheme was amended and approved by the Board of Directors of the Company at their meeting held on
07 July 2021. Further Amended ESOP 2014 scheme was aligned in accordance with the SEBI (Share Based Employee
Benefits and Sweat Equity) Regulations, 2021 which was approved in the board meeting held on 07 December, 2021. The
Plan is further amended pursuant to the listing of the Company on Recognized Stock Exchange, to be in compliance with
Securities and Exchange Board of India (Share Based Employee Benefits & Sweat Equity) Regulations, 2021 (âSEBI (SBEB
& SE) Regulationsâ) by the Board on February 04, 2025 and has been further amended and ratified by the shareholders on
March 06, 2025.
28. Fair value measurements (Contd..)
b) The following methods / assumptions were used to estimate the fair values:
i) The carrying value of bank deposits, trade receivables, cash and cash equivalents, trade payables, security deposits,
loans, borrowings and other current financial assets and other current financial liabilities measured at amortised cost
approximate their fair value due to the short-term maturities of these instruments.
ii) The fair value of non-current financial assets and financial liabilities measured are determined by discounting future
cash flows using current rates of instruments with similar terms and credit risk. The current rates used does not reflect
signifcant changes from the discount rates used initially. Therefore, the carrying value of these instruments measured
at amortised cost approximate their fair value.
iii) Fair value of Investment in NPCI and AL trust is based on net asset value and discounted future cashflows respectively.
Further the additional investment in Blostem Fintech Private Limited is made near the reporting date bases the fair
value and accordingly, cost of investment represents fair value as at 31 March 2025.
e) The following is the basis of categorising the financial instruments measured at fair value into Level 1 to Level 3:
Level 1: This level includes financial assets that are measured by reference to quoted prices (unadjusted) in active markets
for identical assets or liabilities.
Level 2: This level includes financial assets and liabilities, measured using inputs other than quoted prices included within
Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).
Level 3: This level includes financial assets and liabilities measured using inputs that are not based on observable market data
(unobservable inputs). Fair values are determined in whole or in part, using a valuation model based on assumptions that are neither
supported by prices from observable current market transactions in the same instrument nor are they based on available market data.
The Company manages its capital to ensure that it will be able to continue as a going concern while maximising the return to
stakeholders through the optimization of the debt and equity balance. The capital structure of the Company consists of net debt
(note 12) offset by cash and bank balance (note 9) and total equity of the company. The Company is not subject to any externally
imposed capital requirements.
The Company''s board of directors reviews the capital structure of the Company on a periodic basis. As part of this review, the Board of
directors considers the cost of capital, risks associated with each class of capital requirements and maintenance of adequate liquidity.
The Company manages its capital structure and makes adjustments in the light of changes in economic environment and the
requirements of the financial covenants.
Gearing ratio
The company monitors capital on the basis of the following gearing ratio:
Net debt (total borrowings net of cash and cash equivalents) divided by Total equity (as shown in the balance sheet).
The gearing ratio at end of the reporting year was as follows.
30. Financial risk management objectives and policies
The Company''s management monitors and manages key financial risk relating to the operations of the Company by analysing
exposures by degree & magnitude of risk. The risks include market risk (including interest rate risk, currency risk and other price
risk), credit risk and liquidity risk.
The Company''s board of directors has overall responsibility for the establishment and oversight of the Company''s risk
management framework. The Company''s risk management policies are established to identify and analyse the risks faced by
the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies
and systems are reviewed regularly to reflect changes in market conditions and the Company''s activities.
i) Credit risk management
Credit risk is the risk that a counter party will not meet its obligations under a financial instrument or customer contract,
leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables
and financial guarantee provided by the Company) and from its financing activities, including deposits with banks and
financial institutions, mutual funds and other financial assets. Management has a credit policy in place and the exposure to
credit risk is monitored on an ongoing basis.
The carrying amounts of financial assets and the maximum amount the Company would have to pay if the financial guarantee
is called upon, irrespective of the likelihood of the guarantee being exercised, represents the maximum credit risk exposure.
Credit risk management considers available reasonable and supportive forward-looking information including indicators like
external credit rating (as far as available), macro-economic information (such as regulatory changes, government directives,
market interest rate).
Trade receivables
The Company is exposed to credit risk in the event of non-payment by trade partners. Receivable credit risk is managed
subject to the Company''s established policy, procedures and control relating to trade partners risk management. The
Company uses a provision matrix to determine impairment loss allowance on portfolio of its trade receivables through a
lifetime expected credit loss. The provision matrix is based on its historically observed default rates over the expected life
of the trade receivables and is adjusted for forward-looking estimates.
Digital financial services
The Company''s exposure to credit risk is from the Digital financial services business in which the Company facilitates
credit to its users through financing partners.The Company provides financial guarantees on the Digital financial services
business to its financing partners to cover the loss on the credit extended to its users. Financial guarantees are capped to
the extent agreed with the respective partner in line with Digital Lending guidelines issued by RBI.
A financial guarantee contract is a contract that requires the issuer to make specified payments to reimburse the holder for a
loss it incurs because a specified debtor fails to make payments when due in accordance with the terms of a debt instrument.
The Company manages and controls credit risk by setting limits on the amount of risk it is willing to accept for individual
users and for geographical and industry concentrations, and by monitoring exposures in relation to such limits.
Credit risk is monitored by the credit risk department of the Company''s independent Risk Management Unit (RMU). It is
their responsibility to review and manage credit risk, including environmental and social risk for all types of users. The RMU
consist of experts and credit risk managers that have deep expertise in the domain of financial and credit risk of Digital
financial services business and are responsible for managing the risk of Digital financial services portfolio including credit
risk systems, policies, models and reporting.
The Company has established a credit quality review process to provide early warning signals to identify the changes in
the creditworthiness of its Digital financial services users. User limits are established by the use of a credit risk classification
system, which assigns each Digital financial services user a risk rating. Risk ratings are subject to regular revision. The
credit quality review process enables the periodic assessment of the potential loss to which the Company is exposed
thereby allowing it to take corrective actions.
The Company has, based on current available information and based on the policy approved by the Board of Directors,
determined the provision for impairment of financial assets.
Concentration of credit risk
Concentrations arise when a number of users are engaged in similar business activities, or activities in the same
geographical region, or have similar economic features that would cause their ability to meet contractual obligations to be
similarly affected by changes in economic, political or other conditions.
In order to avoid excessive concentrations of risk, the Company''s policies and procedures include specific guidelines to
focus on spreading its lending portfolio across various products/states/customer base with a cap on maximum limit of
exposure for an individual/Company. Accordingly, the Company does not have concentration risk.
While MobiKwik has diversified partners to support platform for financial services products, one of the products that scaled
rapidly during the year ended 31 March 2025, combined with the updated regulations over the past one year, led to two
of Company''s lending partners contributing significantly to overall revenue. The Company is in process to substantially
reduce this concentration risk over the next 12 months.
Expected credit loss on financial guarantee contract
The Company has, based on current available information and based on the policy approved by the Board of Directors,
calculated impairment loss allowance in the Digital financial services business using the Expected Credit Loss (ECL) model
to cover the guarantees provided to its financing partners.
Expected credit loss (ECL) methodology
The Company has assessed the credit risk associated with its financial guarantee contracts for provision of Expected Credit
Loss (ECL) as at the reporting dates. The Company makes use of various reasonable supportive forward-looking parameters
which are both qualitative as well as quantitative while determining the change in credit risk and the probability of default.
The underlying ECL parameters have been detailed out in the note on âSummary of significant accounting policiesâ.
Since, the Company offers Digital financial services and other credit products to a large retail customer base on its digital
platform via marketplace model, there is no significant credit risk of any individual customer that may impact the Company
adversely, and hence the Company has calculated its ECL allowances on a collective basis.
The Company has developed an ECL Model that takes into consideration the stage of delinquency, Probability of Default
(PD), Exposure at Default (EAD) and Loss Given Default (LGD).
I. Probability of Default (PD): represents the likelihood of default over a defined time horizon. The definition of PD is
taken as 90 days past due for all loans.
II. Exposure at Default (EAD): represents what is the user''s likely borrowing at the time of default.
III. Loss Given Default (LGD): represents expected losses on EAD given the event of default.
Each financial guarantee contract is classified into (a) Stage 1, (b) Stage 2 and (c) Stage 3 (Default or Credit Impaired).
Delinquency buckets have been considered as the basis for the staging of all credit exposure under the guarantee contract
in the following manner:
a) Stage 1: 0-30 days past due loans
b) Stage 2: More than 30 and up to 90 days past due loans
c) Stage 3: Above 90 days past due loans
Inputs, assumptions and estimation techniques used to determine expected credit loss
The Company ECL provision are made on the basis of the Company historical loss experience and future expected credit
loss, after factoring in various macro-economic parameter. In calculating the ECL, given the uncertainty over the potential
macro-economic impact, the Company management has considered internal and external information including credit
reports and economic forecasts up to the date of approval of these financial results. The selection of variables was made
purely based on business sense.
The selected macro- economic variables were used to forecast the forward-looking PD''s with macro-economic overlay
incorporated. Best, base and worst scenarios were created for all the variables and default rates were estimated for
all the scenarios. These default rates were then used with the same LGD and EAD to arrive at the expected credit loss
for all three cases. The three cases were then assigned weights and a final probability-weighted expected credit loss
estimate was computed.
Note - During the year ended 31 March 2025 and 31 March 2024, financial obligation amounting to H 351.41 milllion and H
843.47 million respectively were paid.
As per RBI guidelines on Default Loss Guarantee in Digital Lending, the Company has issued default loss guarantees
(DLG) to regulated lending partners in respect of loans provided by the lending partners to customers through MobiKwik
platform. The Company''s maximum exposure under these guarantees is contractually capped to 5% of the total disbursed
loan amount. These guarantees are initially recognized at fair value using a Level 3 discounted cash flow model based
on expected credit losses. Fair value of these guarantees at inception is likely to equal the premium received and
recognised with equivalent financial guarantee fees receivable balance. These guarantees are backed by bank fixed
deposits, as collateral.
As of the reporting date, the fair value of these guarantees is H 521.93 million. Total provision recognized through the
Statement of Profit and Loss account during the year is H 402.41 million (31 March 2024 : H 21.65 million) and amount paid
/ settled during the year is H 174.48 million (31 March 2024 : H Nil). The Company monitors borrower performance and
maintains a provision based on expected credit losses, which is reassessed quarterly.
Cash and cash equivalents, bank deposits and investments in mutual funds
The Company maintaines its cash and cash equivalents, bank deposits and investment in mutual funds with reputed banks
and financial institutions. The credit risk on these instruments is limited because the counterparties are banks with high
credit ratings assigned by international credit rating agencies.
Security deposits
The Company monitors the credit rating of the counterparties on regular basis. These instruments carry very minimal credit
risk based on the financial position of parties and company ''s historical experience of dealing with the parties.
ii) Liquidity risk management
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial
liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to
ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and
stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.
Ultimate responsibility for liquidity risk management rests with the board of directors, who has established an appropriate
liquidity risk management framework for the management of the Company''s short-term, medium-term and long-term
funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves,
banking facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of
financial assets and liabilities.
iii) Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market
prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk
and commodity risk. Financial instruments affected by market risk include foreign currency reeivables, deposits, investments in
mutual funds. The Company has in place appropriate risk management policies to limit the impact of these risks on its financial
performance. The Company ensures optimization of cash through fund planning and robust cash management practices.
(a) Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
market interest rates. The sensitivity disclosed in the below is attributable to bank overdraft facility availed by the Company.
(b) The income tax assessment for FY 2014-15 and FY 2015-16 was completed by the income tax authorities whereby a
sum of H 243.48 million and H 1,109.86 million respectively, had been adjusted, primarily, on account of disallowance of
advertisement and business promotion expenses. There is NIL demand for the respective years due to availability of
sufficient brought forward tax losses to offset the tax demand. The Company expects remote possibility for any cash outlay.
The matter is subjudice at appropriate appellate levels.
(c) The Company does not have any long term commitments/contracts including derivative contracts for which there will be
any material foreseeable losses.
(d) The Company does not have any amounts which were required to be transferred to the Investor Education and
Protection Fund.
33 During the year ended 31 March 2023, the Company noted that due to some technical glitch on the MobiKwik platform, some
of the users were able to execute fraudulent transactions for the purchase of Gift cards. Based on the management assessment,
the total amount of transactions executed was H 69.49 million. The Company was able to block the transactions worth H 14.86
million. Accordingly, the net loss on account of the above-mentioned matter was H 54.63 million. No employees or officer of the
Company was involved in this fraud.
The Company has filed a criminal complaint against the accused persons before the Cyber Cell, Gurugram and the matter in
under the police investigation. Further, the Company had also been able to recover H 6.88 million till date.
34. During the Financial year ended 31 March 2023, the Company had issued 39,742 (Thirty-Nine Thousand Seven Hundred
Forty Two) compulsorily convertible cumulative preference shares of a face value of H 100 (Indian Rupees One Hundred only)
at the Subscription Price of H 1,132.30 (Indian Rupees One Thousand One Hundred Thirty Two point Thirty paise) per Series H
CCCPS. Further, the Subscriber had subscribed to the partly paid-up Series H CCCPS of H 1 (Indian Rupee One only) per share
as on date and shall pay the remaining amounts on calls as per the mechanism mentioned in Securities subscription agreement
(âthe agreementâ).
During the year ended 31 March 2024, the Company had sent notice vide dated 5 December 2023 to the partly paid-up series
H CCCPS Holder to call the unpaid money on 39,742 Series H CCCPS. Series H CCCPS holders relinquished their rights subject
to the terms of the agreement and hence the amount had been forfeited.
The paid-up amount of H 0.04 million had been categorized as liability and grouped under other financial liabilities. During the
year ended 31 March 2024, the amount was reversed from liabilities and recorded as other income due to forfeiture of above
mentioned shares.
Major Customers:
Revenues of H 3307.25 million (31 March 2024 : H 4613.81 million) is derived from sales to customers exceeding 10% or more of
the company''s revenue during the year.
36. The Company is authorized to function as a Bharat Bill Payment System Operating Unit (âBBPOUâ) vide license dated 24
January 2019 to allow bill payments of various kinds including but not limited to FASTag recharge. During the year ended 31
March 2022, the Company noted suspicious transactions with respect to the recharge of various FASTags through MobiKwik
ZIP. A total of 617 FASTags issued by a certain Payments Bank (âPBâ) in the State of Assam, India were recharged for a total of
H 107.3 Million.
On investigation, the Company found that the FASTag account in case of the PB was NOT a sub-wallet to the main wallet
which thereby enabled fraudsters to transfer the FASTag recharge amount into the main wallet/bank account/other linked bank
accounts which is in violation of the RBI Master Directions on Prepaid Payment Instruments (âPPIâ), 2021 (âMaster Directionsâ).
On 08 December 2021, the Company filed an FIR before the Officer In charge - BIEO (Bureau of Investigation of Economic
Offences) Guwahati, Assam against masterminds/culprits who orchestrated this FASTag misuse under Section 120B, 406, 420
of the Indian Penal Code, 1860. Pending litigation and recovery proceedings, the Company had expensed off H 106.91 million in
the statement of profit and loss for the year ended 31 March 2022.
39. The Company had incurred losses of H 1,233.26 million during the year 31 March 2025. The Company has net worth of H
6,037.62 million and a positive working capital position (i.e. its current assets exceed its current liabilities) as at 31 March 2025
of H 4,077.30 million, including cash and cash equivalents of H 2,717.75 million. Further, based on the current business plan and
projections prepared by the management, the Company expects to achieve growth in its operations in the coming years with
continuous improvement in operational efficiency. Management has made an assessment of the Company''s ability to continue
as a going concern and believes that the Company will continue to be a going concern considering, amongst other things,
expected growth in operations, existing cash and cash equivalents and other available bank balances.
In view of the above, management has concluded that the going concern assumption is appropriate. Accordingly, the standalone
financial statements do not include any adjustments regarding the recoverability and classification of the carrying amount of
assets and classification of liabilities that might result, should the Company be unable to continue as a going concern.
Notes
Average Trade receivables = (Opening trade receivables Closing trade receivables)/2
Average Trade payables = (Opening trade payables Closing trade payables)/2
EBIT = Profit(Losses)/Earnings Before Interest and Taxes
Capital employed = Total Equity Borrowings (Non-current and Current)
The reason for variances in ratios more than 25% are explained as below :-
a) The Current ratio has increased from 1.03 as at 31 March 2024 to 1.53 as at 31 March 2025 mainly due to increase in cash
& bank balances on account of Net IPO proceeds.
b) The Debt equity ratio has decreased from 1.39 as at 31 March 2024 to 0.51 as at 31 March 2025 on account of increase in
equity share capital due to issue of fresh equity shares through Initial Public Offer (IPO).
c) The Debt service coverage ratio has decreased from 0.13 as at 31 March 2024 to (0.23) as at 31 March 2025 mainly due to
relative decrease in EBITDA as compared to previous year.
d) The Retun on equity ratio has decreased from 0.05 as at 31 March 2024 to (0.20) as at 31 March 2025 mainly due to increase
in total equity as a result of fresh equity issued as part of IPO in december 2024 and losses incurred during the year .
e) The Trade receivable turnover ratio has increased from 11.08 as at 31 March 2024 to 17.09 as at 31 March 2025 mainly due
to increase in revenue from operation and also, decrease in average trade receivables.
f) The Trade payable turnover ratio has increased from 4.38 as at 31 March 2024 to 6.88 as at 31 March 2025 mainly due to
increase in other expenses which was partially offset by the decrease in average trade payables.
g) The Net capital turnover ratio has decreased from 2.04 as at 31 March 2024 to 1.27 as at 31 March 2025 mainly due to
increase in capital employed on account of fresh issues of equity shares through IPO and these were partially offset by the
increase in the revenue from operations.
h) The Net profit ratio has decreased from 0.01 as at 31 March 2024 to (0.11) as at 31 March 2025 mainly due to loss incurred
during the year.
i) The Return on capital employed ratio has decreased from 7.36 as at 31 March 2024 to (9.84) as at 31 March 2025 mainly
due to reduction in EBIT as compared to previous year and increased in capital employed.
44. During the financial year 2013-2014 to 2016-2017, there were some delays in RBI related filings for allotments made to
10 non-resident shareholders due to mismatches in KYC documents and FIRCs. Resubmissions were done with the RBI and
approval have been received on all such submissions. In this regard, the Company has filed a compounding application dated 01
December 2023 and subsequent clarification sought by RBI was replied to on 11 December 2023 with the RBI for compounding
of the same. The Compounding Order and Compounding Certifcate were subsequently issued by RBI dated 28 May 2024 and
12 June 2024 respectively.
45. The Company was incorporated on 20 March 2008 and in December 2024, the Company has completed an initial public
offering (IPO) comprising fresh issue of 2,05,01,792 equity shares with a face value of H 2 each at an issue price of H 279 per
share. The equity shares of the Company got listed on BSE Limited (BSE) and National Stock Exchange of India Limited (NSE)
on 18 December 2024.
The Company has received an amount of H 5,305.17 million (net of IPO expenses of H 414.83 million) as proceeds of fresh issue
of equity shares. Out of total IPO expenses, H 351.55 million (net of taxes) has been adjusted to securities premium.
e. There is no transaction which has been surrendered or disclosed as income during the year in the tax assessments under
the Income Tax Act, 1961
f. There are no charges or satisfaction yet to be registered with ROC beyond the statutory period.
g. There are no funds which have been advanced or loaned or invested (either from borrowed funds or share premium or any
other sources or kind of funds) by Company to or in any other persons or entities, including foreign entities ("Intermediaries"),
with the understanding, whether recorded in writing or otherwise, that the Intermediary shall:
i. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever ("Ultimate
Beneficiaries") by or on behalf of the Company or
ii. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
The Company has 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:
i. 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
ii. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries
46. Other notes (Contd..)
h. 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
i. The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous
financial year.
j. The Company has not revalued its Property, Plant and Equipment (including Right-of-Use Assets) or intangible assets or
both during the current or previous year
k. The Company has used the borrowings from banks and financial institutions for the specific purpose for which it was taken.
l. The Company does not have any immovable properties other than properties where the Company is a lessee and the lease
agreements are duly executed in favour of the lessee.
As per our report of even date attached
For B S R & Associates LLP For and on behalf of the Board of Directors of
Chartered Accountants ONE MOBIKWIK SYSTEMS LIMITED
ICAI Firm Registration No. 116231W/W-100024
Girish Arora Bipin Preet Singh Upasana Rupkrishan Taku
Partner Managing Director Chairperson, Whole-time Director
Membership No.: 098652 & Chief Executive Officer & Chief Financial Officer
UDIN: 25098652BMKXPT5365 DIN:02019594 DIN:02979387
Place: Gurugram
Date: 19 May 2025 Ankita Sharma
Company Secretary
Place: Gurugram
Date: 19 May 2025
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