2. Material accounting policies
2.1 Basis of preparation
These Financial Statements of the Company have
been prepared in accordance with Indian Accounting
Standards ('Ind AS') prescribed under Section 133 of
the Act read with the Companies (Indian Accounting
Standards) Rules, 2015 and other relevant provisions
of the Act as amended from time to time.
The financial statements have been prepared on
a historical cost basis, except for certain financial
assets and liabilities measured at fair value and
amortised cost (refer accounting policies on financial
instruments and Share-based payments).
Accounting policies have been consistently applied
except where a newly issued accounting standard is
initially adopted or a revision to an existing accounting
standard requires a change in the accounting policy
hitherto in use.
All the amounts included in the financial statements
are presented in Indian Rupees ('Rupees' or 'Rs.' or
'INR') and are rounded to the nearest millions, except
per share data and unless stated otherwise.
Standards notified but not yet effective
There are no standards that are notified and not yet
effective as on the date.
New and amended standards adopted by the Company
Ministry of Corporate Affairs ("MCA") notifies new
standards or amendments to the existing standards
under Companies (Indian Accounting Standards)
Rules as issued from time to time. During the year
ended March 31, 2025, MCA has notified Ind AS 117
'Insurance Contracts' and amendments to Ind AS 116
'Leases', relating to sale and lease back transactions,
applicable from April 1, 2024. The Company has
assessed that there is no significant impact on its
financial statements.
.2 Summary of material accounting policies
a. Current versus non-current classification
The Company presents assets and liabilities
in the balance sheet based on current / non¬
current classification.
An asset is classified 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.
A liability is classified as current when it is
expected to be settled in normal operating cycle,
it is held primarily for the purpose of trading, it
is due to be settled within twelve months after
the reporting period, or there is no unconditional
right to defer the settlement of the liability for at
least twelve months after the reporting period.
The Company classifies all other liabilities
as non-current.
Deferred tax assets and liabilities, are classified
as non-current assets and liabilities.
The operating cycle is the time between the
acquisition of assets for processing and their
realisation in cash and cash equivalents. The
Company has identified twelve months as its
operating cycle.
b. Fair value measurement
The Company measures certain financial
instruments (e.g. investments) at fair value at
each balance sheet date.
Fair value is the price that would be received to
sell an asset or paid to transfer a liability in an
orderly transaction between market participants
at the measurement date.
The fair value measurement is based on the
presumption that the transaction to sell the
asset or transfer the liabilities takes place either
in the principal market for the asset or liability
or in absence of principal market, in the most
advantageous market for the asset or liability.
A fair value measurement of a non-financial
asset takes into account a market participant's
ability to generate economic benefits by using
the asset in its highest and best use or by selling
it to another market participant that would use
the asset in its highest and best use.
The Company uses valuation techniques that are
appropriate in the circumstances and for which
sufficient data are available to measure fair value,
maximising the use of relevant observable inputs
and minimising the use of unobservable inputs.
All assets and liabilities for which fair value is
measured or disclosed in the financial statements are
categorised within the fair value hierarchy, described
as follows, based on the lowest level input that is
significant to the fair value measurement as a whole:
Level 1- Quoted (Unadjusted) marked prices in
the active markets for identical assets or liabilities
Level 2- Valuation techniques for which the lowest
level input that is significant to the fair value
measurement is directly or indirectly observable
Level 3- Valuation techniques for which the
lowest level input that is significant to the fair
value measurement is unobservable.
For assets and liabilities that are recognised in
the financial statements on a recurring basis, the
Company determines whether transfers have
occurred between levels in the hierarchy by re¬
assessing categorisation (based on the lowest level
input that is significant to the fair value measurement
as a whole) at the end of each reporting period.
At each reporting date, the management analyses
the movements in the values of assets and
liabilities which are required to be re-measured
or re-assessed as per the Company's accounting
policies. For this analysis, the management or
its expert verifies the major inputs applied in the
latest valuation by agreeing the information in
the valuation computation to contracts and other
relevant documents.
For the purpose of fair value disclosures, the
Company has determined classes of assets
and liabilities on the basis of the nature,
characteristics and risks of the asset or liability
and the level of the fair value hierarchy as
explained above.
c. Revenue recognition
Revenue is measured based on the consideration
specified in a contract with a customer
(transaction price) net of variable consideration
e.g. discounts, volume rebates, any payments
made to a customer (unless the payment is for
a distinct good or service received from the
customer) and excludes amounts collected on
behalf of third parties. The Company recognises
revenue when it transfers control over a product
or service to a customer. Revenue is only
recognised to the extent that it is highly probable
that a significant reversal will not occur.
The Company provides incentives to its users in
various forms including cashbacks. Incentives
which are consideration payable to the
customer that are not in exchange for a distinct
good or service are generally recognized as a
reduction of revenue.
Where the Company acts as an agent for selling
goods or services, only the commission income
is included within revenue. The specific revenue
recognition criteria described below must also be
met before revenue is recognized. Typically, the
Company has a right to payment before or at the
point that services are delivered. Cash received
before the services are delivered is recognised as
a contract liability. The amount of consideration
does not contain a significant financing component
as payment terms are less than one year.
Incremental cost of obtaining contracts is
recorded under marketing and promotional
expenses.
Sale of services
Revenue from services is recognized when the
control in services is transferred as per the terms
of the agreement with customer i.e. as and when
services are rendered. Revenues are disclosed
net of the Goods and Services Tax charged on
such services. In terms of the contract, excess of
revenue over the billed at the year-end is carried
in the balance sheet as trade receivables where
the amount is recoverable from the customer
without any future performance obligation and
the Company has unconditional right over such
consideration (i.e. if only the passage of time is
required before payment of such consideration
is due). Cash received before the services are
delivered is recognised as a contract liability.
Commission
The Company facilitates recharge of talk time,
bill payments and availability of bus tickets and
earns commission for the respective services.
Commission income is recognized when the control
in services is transferred to the customer when the
services have been provided by the Company.
Service fees from merchants
The Company earns service fee from merchants
and recognizes such revenue when the control in
services have been transferred by the Company i.e.
as and when services have been provided by the
Company. Such service fee is generally determined
as a percentage of transaction value executed by
the merchants. Amount received by the Company
pending settlement are disclosed as payable to the
merchants under other financial liabilities.
Government Grants
The Company recognises government grants
only when there is reasonable assurance that the
conditions attached to them will be complied with,
and the grants will be received. Government grants
related to revenue are recognized on a systematic
basis in the Standalone Statement of Profit and
Loss as other operating revenue over the periods
necessary to match them with the related costs, if
any, which they are intended to compensate.
Interest income
For all debt instruments measured either at
amortised cost or at fair value through other
comprehensive income ("OCI"), interest income
is recorded using the effective interest rate
(EIR). EIR is the rate that exactly discounts the
estimated future cash payments or receipts
over the expected life of the financial instrument
or a shorter period, where appropriate, to the
gross carrying amount of the financial asset
or to the amortised cost of a financial liability.
When calculating the effective interest rate, the
Company estimates the expected cash flows
by considering all the contractual terms of the
financial instrument but does not consider
the expected credit losses. Interest income is
included in other income in the statement of
profit and loss.
d. Trade receivable
Trade receivables are amounts due from
customers for services performed in the
ordinary course of business and reflects group's
unconditional right to consideration (that is,
payment is due only on the passage of time).
Trade receivables are recognised 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
amortised cost using the effective interest
method, less loss allowance.
e. Taxes
Current income tax
Current income tax assets and liabilities
are measured at the amount expected to
be recovered from or paid to the taxation
authorities. The tax rates and tax laws used to
compute the amount are those that are enacted
or substantively enacted, at the reporting date in
the countries where the Company operates and
generates taxable income.
Current income tax relating to items recognised
outside statement of profit and loss is recognised
either in OCI or in equity. Current tax items
are recognised in correlation to the underlying
transaction either in OCI or directly in equity.
Management periodically evaluates positions
taken in the tax returns with respect to situations
in which applicable tax regulations are subject
to interpretation and considers whether it is
probable that a taxation authority will accept an
uncertain tax treatment. The Company measures
its tax balances either based on the most likely
amount or the expected value, depending on
which method provides a better prediction of the
resolution of the uncertainty.
Deferred tax
Deferred tax is provided using the liability method
on temporary differences between the tax
bases of assets and liabilities and their carrying
amounts for financial reporting purposes at the
reporting date.
Deferred tax liabilities are recognised for all
taxable temporary differences, except:
When the deferred tax liability arises from the
initial recognition of goodwill or an asset or
liability in a transaction that is not a business
combination and, at the time of the transaction,
affects neither the accounting profit nor taxable
profit or loss.
Deferred tax assets are recognised for all
deductible temporary differences, the carry
forward of unused tax credits and any unused
tax losses. Deferred tax assets are recognised to
the extent that it is probable that taxable profit
will be available against which the deductible
temporary differences, and the carry forward of
unused tax credits and unused tax losses can
be utilised. The carrying amount of deferred
tax assets is reviewed at each reporting date
and reduced to the extent that it is no longer
probable that sufficient taxable profit will be
available to allow all or part of the deferred tax
asset to be utilised. Unrecognised deferred tax
assets are re-assessed at each reporting date
and are recognised to the extent that it has
become probable that future taxable profits will
allow the deferred tax asset to be recovered.
Deferred tax assets and liabilities are measured
at the tax rates that are expected to apply in the
year when the asset is realised or the liability is
settled, based on tax rates (and tax laws) that
have been enacted or substantively enacted at
the reporting date.
Deferred tax relating to items recognised outside
statement of profit and loss is recognised
either in OCI or in equity. Deferred tax items
are recognised in correlation to the underlying
transaction either in OCI or directly in equity.
Deferred tax assets and deferred tax liabilities are
offset if a legally enforceable right exists to set
off current tax assets against current tax liabilities
and the deferred taxes relate to the same taxable
entity and the same taxation authority.
Taxes paid on acquisition of assets or on
incurring expenses
Assets are recognised net of the amount of
GST paid, except when the tax incurred on
a purchase of assets is not recoverable from
the taxation authority, in which case, the
tax paid is recognised as part of the cost of
acquisition of the asset.
Expenses are recognised net of the amount of
GST paid, except when the tax incurred on a
purchase of services is not recoverable from the
taxation authority, in which case, the tax paid is
expensed off in statement of profit and loss.
The net amount of tax recoverable from, or
payable to, the taxation authority is included
as part of other current/ non- current assets or
other current liabilities in the balance sheet.
f. Property, plant and equipment
Property, plant and equipment are carried at cost
less accumulated depreciation and any accumulated
impairment, if any. Property, plant and equipment
is depreciated on a written down value basis to its
residual value over its estimated useful life.
Costs directly attributable to acquisition
are capitalized until the property, plant and
equipment are ready for use, as intended by
the management.
Subsequent costs are capitalised on the carrying
amount or recognised as a separate asset, as
appropriate, only when future economic benefits
associated with the item are probable to flow
to the Company and cost of the item can be
measured reliably. When significant parts of
property, plant and equipment are required
to be replaced at intervals, the Company
depreciates them separately based on their
specific useful lives. The carrying amount of any
component accounted for as a separate asset
is derecognised when replaced. All repair and
maintenance are charged to statement of profit
and loss during the reporting period in which
they are incurred.
Advances paid towards the acquisition of
property, plant and equipment outstanding at
each balance sheet date is classified as capital
advances under the non-current assets and the
cost of assets not ready to use before such date
are disclosed under 'Capital work in progress'.
The gain or loss arising on the disposal or
retirement of an item of property, plant and
equipment is determined as the difference
between the sales proceeds and the carrying
amount of the asset and is recognised in the
statement of profit and loss on the date of
disposal or retirement'
Depreciation is provided using the written down
value method, except for plant and machinery
on which straight line method is used, based on
technical evaluation done by the management
and charged to statement of profit and loss,
unless such expenditure forms part of carrying
value of another asset, as per the useful life
prescribed under schedule II of the Companies
Act, 2013, given below:
Leasehold improvements are depreciated over
the shorter of their useful life or the lease term,
unless the entity expects to use the assets
beyond the lease term'
The residual values, useful lives and methods of
depreciation of property, plant and equipment
are reviewed at each financial year end and
adjusted prospectively, if appropriate.
g. Intangible assets
Separately acquired intangible assets, such
as software are measured initially at cost.
Following initial recognition, intangible assets are
carried at cost less accumulated amortization
and accumulated impairment losses, if any.
Costs associated with maintaining software
programmes are recognised as an expense
as incurred. Development costs that are
directly attributable to the design and testing
of identifiable and unique software products
controlled by the Company are recognised
as intangible assets where the following
criteria are met:
• it is technically feasible to complete
the software so that it will be available
for use or sale
• management intends to complete the
software and use or sell it
• there is an ability to use or sell the software
• it can be demonstrated how the software will
generate probable future economic benefits
• adequate technical, financial and other
resources to complete the development and
to use or sell the software are available, and
• the expenditure attributable to the
software during its development can be
reliably measured.
Directly attributable costs that are capitalised as
part of the software include employee costs.
Research and development costs
Research expenditure and development
expenditure that do not meet the criteria above
are recognised as an expense as incurred.
Development costs previously recognised as
an expense are not recognised as an asset in a
subsequent period.
Amortization methods and periods
Amortization of intangible assets begins when
development is complete and the asset is
available for use. Software, licenses acquired
and internally generated software are amortized
at the rate of 40% per annum on written down
value method. During the period of development,
the asset is tested for impairment annually.
The amortization period and the amortization
method are reviewed at least at each financial
year end. Changes in the expected useful life or
the expected pattern of consumption of future
economic benefits embodied in the asset are
considered to modify the amortization period
or method, as appropriate, and are treated
as changes in accounting estimates. The
amortization expense on intangible assets is
recognized in the statement of profit and loss
unless such expenditure forms part of carrying
value of another asset.
Gains or losses arising from de-recognition of an
intangible asset are measured as the difference
between the net disposal proceeds and the
carrying amount of the asset and are recognized
in the statement of profit and loss when the
asset is derecognized.
h. Impairment of non-financial assets
For all non-financial assets, the Company
assesses whether there are indicators of
impairment. If such an indicator exists, the
recoverable amount of the asset is estimated in
order to determine the extent of the impairment
loss, if any. Where the asset does not generate
cash flows that are independent from other
assets, the Company estimates the recoverable
amount of the cash-generating unit (CGU) to
which the asset belongs.
The recoverable amount for an asset or CGU is
the higher of its value in use and fair value less
costs of disposal. If the recoverable amount of
an asset or CGU is estimated to be less than its
carrying amount, the asset or CGU is considered
impaired and the carrying amount of the asset
or CGU is reduced to its recoverable amount. An
impairment loss is recognised immediately in the
statement of profit and loss.
In assessing value in use, the estimated future cash
flows of the asset or CGU are discounted to their
present value using a pre-tax discount rate that
reflects current market assessments of the time
value of money and the risks specific to the asset.
In determining fair value less costs of disposal,
recent market transactions are taken into account.
If no such transactions can be identified, an
appropriate valuation model is used. These
calculations are corroborated by valuation
multiples, quoted share prices for publicly traded
Companies or other available fair value indicators.
The Company bases its impairment calculation
on detailed budgets and forecast calculations.
These budgets and forecast calculations
generally cover a period of five years. For longer
periods, a long-term growth rate is calculated
and applied to project future cash flows after
the fifth year. To estimate cash flow projections
beyond periods covered by the most recent
budgets/forecasts, the Company extrapolates
cash flow projections in the budget using a
steady or declining growth rate for subsequent
years, unless an increasing rate can be justified.
In any case, this growth rate does not exceed the
long-term average growth rate for the products,
industries, or country or countries in which
the entity operates, or for the market in which
the asset is used.
An assessment is made at each reporting date
to determine whether there is an indication that
previously recognised impairment losses no
longer exist or have decreased. If such indication
exists, the Company estimates the asset's
or CGU's recoverable amount. A previously
recognised impairment loss is reversed only if
there has been a change in the assumptions used
to determine the asset's or CGU's recoverable
amount since the last impairment loss was
recognised. The reversal is limited so that the
carrying amount of the asset does not exceed
its recoverable amount, nor exceed the carrying
amount that would have been determined, net
of depreciation, had no impairment loss been
recognised for the asset in prior years. Such
reversal is recognised in the statement of
profit or loss.
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