2 Material Accounting Policies
2.1 Statement of compliance
The Standalone Financial Statements of the Company
comprise of the Standalone Balance Sheet as at March
31, 2026, the Standalone Statement of Profit and
Loss including Other Comprehensive Income ("OCI"),
the Standalone Statement of Changes in Equity, the
Standalone Statement of Cash Flows for the year ended
March 31,2026, Material Accounting Policies, Notes to the
Standalone Financial Statements as at and for the year
ended March 31,2026 (together referred to as 'Standalone
Financial Statements') has been prepared and presented
in accordance with the Indian Accounting Standards ('Ind
AS') notified under Section 133 of the Companies Act,
2013, ('the Act'), read with Rule 3 of the Companies (Indian
Accounting Standards) Rules 2015 and other relevant
provisions of the Act as amended from time to time.
The Standalone Financial Statements of the Company
for the year ended March 31, 2026 were approved and
authorised for issue in accordance with the resolution of
the Board of Directors on May 19, 2026.
Historical cost convention
The financial statements have been prepared on a
historical cost basis, except for the following:
- certain financial assets and liabilities are
measured at fair value
- defined benefit plans - measured as per projected
unit credit method
- share-based payments - measured at fair value
at the Grant date
Rounding off
All amounts disclosed in the Standalone financial
statements and notes have been rounded off to
the nearest million with two decimals as per the
requirement of Schedule III, unless otherwise stated.
Amounts mentioned as "0.00" in the Standalone financial
statements denote amounts rounded off being less than
Rupees five thousand.
New and amended standards adopted by the
Company
The Ministry of Corporate Affairs has vide notification
dated 7 May 2025 and 13 August 2025 , notified
Companies (Indian Accounting Standards) Amendment
Rules, 2025 which amends certain accounting standards,
and are effective 1 April 2025.
This table lists the recent changes to the Accounting
Standards that are required to be applied by an entity with
an annual reporting period beginning on 1 April 2025 to
the extent applicable for the company.
Ind AS 21, The Effects of Changes in Foreign Exchange Rates
The amendment defines 'exchangeability', requiring
entities to assess exchangeability at the measurement
date for a specific purpose, and mandating that entities
estimate a spot exchange rate when a currency is
non-exchangeable.
Companies are now required to disclose:
a. nature and financial implications of the currency's
lack of exchangeability
b. spot exchange rates used and methods used
to estimate them
c. risks associated with the inability to
exchange the currency
d. affected transactions, assets, and liabilities
Ind AS 1, Presentation of Financial Statements
* A liability was earlier classified as current if the
entity did not have an unconditional right to defer
settlement for at least 12 months after the reporting
date. Under the amendment, the requirement for
the right to be unconditional has been removed.
Instead, the entity must show that a substantive right
to defer settlement exists at the reporting date.
* Companies must also disclose information about
non-current liabilities subject to future covenants in
the notes to the financial statements.
* The amendments to Ind AS 1 are applied
retrospectively for annual periods beginning on or
after 1 April 2025.
Ind AS 107 - Financial Instruments: Disclosures and Ind AS
7 - Statement of Cash Flows
* New disclosure requirements apply to supplier
finance arrangements where:
A finance provider pays suppliers on behalf
of the Company.
The Company pays on the same or a later date.
The Company receives extended terms or suppliers
receive early-payment benefits.
* Required disclosures include:
a. Terms and conditions of the arrangements.
b. At beginning and end of the reporting period:
i. Carrying amounts and balance-
sheet line items of liabilities under
these arrangements.
ii. Liabilities already paid to suppliers by
finance providers.
iii. Payment-due-date ranges for these
liabilities and comparable trade payables
c. Type and effect of non-cash changes (e.g.,
exchange differences, business combinations).
i. Entities must also disclose the type and
effect of non-cash changes in the carrying
amounts of the financial liabilities that are
part of a supplier finance arrangement.
ii. Supplier finance arrangements are
now explicitly included in Ind AS 107
as examples for quantitative liquidity
risk disclosures.
Standards issued but not yet effective
Ind AS 1 - Presentation of Financial Statements
If a covenant breach occurs on or before the
reporting date and the liability becomes payable
on demand, it must be classified as current
even if the lender subsequently agrees not to
demand repayment. It is classified as current
because, at the reporting date, the entity does
not have the right to defer settlement for at least
12 months. However, if the lender has already
provided—by the reporting date—a grace
period extending at least 12 months beyond
that date, during which the breach can be
rectified and repayment cannot be demanded,
the liability is classified as non-current. The
Company has no impact of these amendments
in its classification criteria of current and non¬
current liabilities.
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, Changes in Accounting
Estimates and Errors.
2.2 Current and Non-current classification
The operating cycle is the time between the acquisition of
assets/inputs for processing and their realisation in cash
and cash equivalents. The Company has identified twelve
months as its operating cycle. The Company presents
assets and liabilities in the balance sheet based on
current/non-current classification.
An asset is treated as current when it is:
* expected to be realised or intended to be sold or
consumed in normal operating cycle
* held primarily for the purpose of trading
* expected to be realised within twelve months after
the reporting period, or
* cash or cash equivalent unless restricted from being
exchanged or used to settle a liability for at least
twelve months after the reporting period
All other assets are classified as non-current.
Other tax assets and deferred tax assets are classified as
non-current assets.
A liability is current when it is:
* expected to be settled in the normal operating cycle.
* held primarily for the purpose of trading.
* due to be settled within twelve months after the
reporting period, or
* it does not have the right at the reporting date to
defer settlement of the liability for atleast twelve
months after the reporting period
The Company classifies all other liabilities as non current.
2.3 Property, plant and equipment, capital work-in¬
progress
Property, plant and equipment
Property, plant and equipment are stated at historical
cost, net of accumulated depreciation and accumulated
impairment losses if any.
The cost of an item of property, plant and equipment
shall be recognised as an asset if, and only if it is probable
that future economic benefits associated with the item
will flow to the Company and the cost of the item can be
measured reliably.
Cost of property, plant and equipments comprises of the
purchase price including import duties and non-refundable
taxes, and directly attributable expenses incurred to bring
the asset to the location and condition necessary for it to
be capable of being operated in the manner intended by
management. Subsequent costs related to an item of PPE
are recognised in the carrying amount of the item if the
recognition criteria are met.
An item of property, plant and equipment is derecognised
on disposal or when no future economic benefits are
expected from its use or disposal. The gain or loss
arising on derecognition is recognised in the Standalone
Statement of Profit and Loss.
Capital work in progress
The cost of property, plant and equipment incurred and
not ready for their intended use before the reporting date
are disclosed under capital work-in-progress. The capital
work- in-progress is carried at cost, comprising direct cost,
related incidental expenses and attributable interest. No
depreciation is charged on the capital work in progress
until the asset is ready for their intended use.
Impairment of property, plant and equipment
Assessment is done at each balance sheet date as to
whether there is any indication that an asset may be
impaired. For the purpose of assessing impairment, the
smallest identifiable Group of assets that generate cash
inflows from continuing use that are largely independent
of the cash inflows from other assets or Group of assets, is
considered as a cash generating unit. If any such indication
exists, an estimate of the recoverable amount of the asset/
cash generating unit is made. Assets whose carrying value
exceeds their recoverable amount are written down to the
recoverable amount. Recoverable amount is higher of an
asset's or cash generating unit's net selling price and its
value in use. Value in use is the present value of estimated
future cash flows expected to arise from the continuing
use of an asset and from its disposal at the end of its
useful life. Assessment is also done at each Standalone
Balance Sheet date as to whether there is any indication
that an impairment loss recognised for an asset in prior
accounting periods may no longer exist or may have
decreased. An impairment loss is reversed to the extent
that the asset's carrying amount does not exceed the
carrying amount that would have been determined if no
impairment loss had previously been recognised.
Depreciation method, estimated useful lives and
residual value
Depreciation is provided on a pro-rata basis on the
straight-line method over the estimated useful lives of the
assets as prescribed under part C of the Schedule II of the
Act or useful life based on technical evaluation done by
management in order to reflect the actual usage of the
assets. The useful life, residual value and the depreciation
method are reviewed at least at each financial year end.
If the expectations differ from previous estimates, the
changes are accounted for prospectively as a change in
accounting estimate.
The estimates of useful lives of property, plant and
equipment are as follows:
Leasehold improvements are amortized over the
remaining lease term or the estimated useful life of 10
years, whichever is lower.
2.4 Trade receivables
Trade receivables are amounts due from customers for
services performed in the ordinary course of business and
reflects Company's unconditional right to consideration
(that is, payment is due only on the passage of time). Trade
receivables are recognized initially at the transaction price
as they do not contain significant financing components.
The Company holds the trade receivables with the
objective of collecting the contractual cash flows and
therefore measures them subsequently at amortized
cost less loss allowance. Unbilled receivables where the
Company has satisfied all performance obligations and
hence has an unconditional right to consideration are
included under trade receivables.
For trade receivables only, the Company applies the
simplified approach permitted by Ind AS 109 Financial
Instruments, which requires expected lifetime losses to be
recognized from initial recognition of the receivables.
2.5 Cash and cash equivalents
For the purpose of presentation in the statement of cash
flows, cash and cash equivalents includes cash on hand,
deposits held at call with financial institutions, other short¬
term, highly liquid investments with original maturities
of three months or less that are readily convertible to
known amounts of cash and which are subject to an
insignificant risk of changes in value. Bank overdrafts
are shown within borrowings in current liabilities in the
Standalone Balance Sheet.
2.6 Income tax
The income tax expense or credit for the year is the tax
payable on the current period's taxable income based
on the applicable income tax rate adjusted by changes in
deferred tax assets and liabilities attributable to temporary
differences and to unused tax losses.
The current income tax charge is calculated on the basis of
the tax laws enacted or substantively enacted at the end of
the reporting period in the countries where the Company
operates and generates taxable income. Management
periodically evaluates positions taken in tax returns with
respect to situations in which applicable tax regulation is
subject to interpretation. It establishes provisions where
appropriate on the basis of amounts expected to be paid
to the tax authorities.
Deferred income tax is provided in full, using the liability
method, on temporary differences arising between
the tax bases of assets and liabilities and their carrying
amounts in the financial statements. Deferred income
tax is determined using tax rates (and laws) that have
been enacted or substantially enacted by the end of the
reporting period in the countries where the Company
operates and generates taxable income and are expected
to apply when the related deferred income tax asset is
realised or the deferred income tax liability is settled.
Deferred tax assets and liabilities are offset when there
is a legally enforceable right to offset current tax assets
and liabilities and when the deferred tax balances relate
to the same taxation authority. Current tax assets and
tax liabilities are offset where the entity has a legally
enforceable right to offset and intends either to settle on
a net basis, or to realise the asset and settle the liability
simultaneously.
Current and deferred tax is recognised in profit or loss,
except to the extent that it relates to items recognised
in OCI or directly in equity. In this case, the tax is also
recognised in other comprehensive income or directly in
equity, respectively.
2.7 Equity
Classification as debt or equity
Financial instruments issued by the Company are classified
as either financial liabilities or as equity in accordance with
the substance of the contractual arrangements and the
definitions of a financial liability and an equity instrument.
Equity instruments
An equity instrument is any contract that evidences a
residual interest in the assets of an entity after deducting
all of its liabilities. Equity instruments issued by the
Company are recognised at the proceeds received, net of
direct issue costs.
2.8 Leases
The Company's lease asset classes primarily consist of
leases for office premises. The Company assesses whether
a contract contains a lease, at inception of a contract. A
contract is, or contains, a lease if the contract conveys
the right to control the use of an identified asset for a
period of time in exchange for consideration. To assess
whether a contract conveys the right to control the use of
an identified asset, the Company assesses whether:
(i) the contract involves the use of an identified asset
(ii) the Company has substantially all of the economic
benefits from use of the asset through the period
of the lease and
(iii) the Company has the right to direct the
use of the asset.
At the date of commencement of the lease, the
Company recognizes a right-of-use asset ("ROU") and a
corresponding lease liability for all lease arrangements in
which it is a lessee, except for leases with a term of twelve
months or less (short term leases) and low value leases.
For these short-term and low value leases, the Company
recognizes the lease payments as an operating expense
on a straight-line basis over the term of the lease.
Certain lease arrangements includes the options to extend
or terminate the lease before the end of the lease term.
ROU assets and lease liabilities includes these options
when it is reasonably certain that they will be exercised.
The right-of-use assets are initially recognized at cost,
which comprises the initial amount of the lease liability
adjusted for any lease payments made at or prior to the
commencement date of the lease plus any initial direct
costs less any lease incentives. They are subsequently
measured at cost less accumulated depreciation and
impairment losses, if any.
Right-of-use assets are depreciated from the
commencement date on a straight-line basis over
the shorter of the lease term and useful life of the
underlying asset.
The lease liability is initially measured at the present value
of the future lease payments. The lease payments are
discounted using the interest rate implicit in the lease or, if
not readily determinable, using the incremental borrowing
rates in the country of domicile of these leases.
Lease liabilities are remeasured with a corresponding
adjustment to the related ROU asset if the Company
changes its assessment if whether it will exercise an
extension or a termination option.
Lease liability and ROU asset have been separately
presented in the Standalone Balance Sheet and lease
payments have been classified as financing cash flows in
the Standalone Statement of Cash Flows.
Rental contracts for leases of office premises and
residential accommodations are typically entered for fixed
periods of 11 months to 5 years.
2.9 Contract liabilities
Deferred revenue:
In case of subscription contracts relating to telematic
services and other services on the platform, as the Company
fulfil the obligations over the tenure of subscription, these
are presented as deferred revenue and are recognised as
revenue as and when the obligations are fulfilled under
the contract with the customers.
Advance from customer:
Advance from customer is recorded as contract liability,
when the payment is received from the customer before
the Company transfers services to the customer. These
are recognised as revenue, as and when the service is
provided to the customer under the agreements.
2.10 Employee benefits obligations
(a) Short-term obligations
Liabilities for wages and salaries, including non¬
monetary benefits that are expected to be settled
wholly within 12 months after the end of the period in
which the employees render the related service are
recognised in respect of employees' services up to
the end of the reporting period and are measured at
the amounts expected to be paid when the liabilities
are settled. Refer note 11 for details.
(b) Other long-term employee benefit obligations
The obligations are presented as current liabilities
in the balance sheet if the Company does not have
the right at the end of the reporting period to defer
the settlement for at least twelve months after the
reporting date.. They are therefore measured as
the present value of expected future payments
to be made in respect of services provided by
employees up to the end of the reporting period
using the projected unit credit method. The benefits
are discounted using the market yields at the end
of the reporting period on government bonds
that have terms approximating to the terms of the
related obligation. Remeasurements as a result of
experience adjustments and changes in actuarial
assumptions are recognised in profit or loss. Refer
note 11 for details.
(c) Defined contribution plans
The Company pays provident fund contributions to
publicly administered provident funds, employee
state insurance and labour welfare fund as per
local regulations. The Company has no further
payment obligations once the contributions have
been paid. The contributions are accounted for as
defined contribution plans and the contributions
are recognised as employee benefit expense
when they are due.
(d) Gratuity obligations
The liability recognised in the Standalone Balance
Sheet in respect of defined benefit gratuity plan is
the present value of the defined benefit obligation
at the end of the reporting period less the fair value
of plan assets, if any. The defined benefit obligation
is calculated annually by actuary using the projected
unit credit method.
The present value of the defined benefit obligation
is determined by discounting the estimated future
cash outflows by reference to market yields at the
end of the reporting period on government securities
that have terms approximating to the terms of the
related obligation.
The interest cost is calculated by applying the rate
on the net defined benefit liability (asset), both as
determined at the start of the annual reporting
period, taking into account any changes in the net
defined benefit liability (asset) during the period as
a result of contributions and benefit payments. This
cost is included in employee benefit expense in the
Standalone Statement of Profit and Loss.
Remeasurement gains and losses arising from
experience adjustments and changes in actuarial
assumptions are recognised in the period in which
they occur, directly in OCI. They are included in
retained earnings in the Standalone Statement of
Changes in Equity and in the Standalone Balance
Sheet. Changes in the present value of the defined
benefit obligation resulting from plan amendments
or curtailments are recognised immediately in profit
or loss as past service cost.
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