m Provisions and Contingencies
A provision is recognised when the Company has
a present obligation as a result of past events and
it is probable that an outflow of resources will be
required to settle the obligation in respect of which
a reliable estimate can be made of the amount of
the obligation.
Contingent liabilities are disclosed when there is
a possible obligation arising from past events,
the existence of which will be confirmed only by
occurrence or non-occurrence of one or more
uncertain future events not wholly within the control
of the Company or a present obligation that arises
from past events where it is either not probable
that an outflow of resources will be required to
settle or a reliable estimate of the amount cannot
be made. Contingent liabilities are disclosed in
the notes. Contingent assets are not recognised in
the financial statements. A contingent asset is not
recognized unless it becomes virtually certain that
an inflow of economic benefits will arise. When an
inflow of economic benefits is probable, contingent
assets are disclosed in IndAS financial statements.
If the effect of the time value of money is material,
provisions are discounted using a current pre-tax
rate that reflects, when appropriate, the risks
specific to the liability. When discounting is used,
the increase in the provision due to the passage of
time is recognised as a finance cost.
Provisions and contingent liabilities are reviewed at
each balance sheet date.
n Share Based Payment arrangements
Equity-settled share based payments to employees
(including senior executives) are measured at the
fair value of the equity instruments at the grant
date. Details regarding the determination of the
fair value of equity-settled share based payments
transactions are set out in Note 31.
The fair value determined at the grant date of
the equity-settled share based payments is
expensed on a straight-line basis over the vesting
period, based on the Company's estimate of
equity instruments that will eventually vest, with a
corresponding increase in equity. At the end of each
reporting period, the Company revises its estimate
of the number of equity instruments expected
to vest. The impact of the revision of the original
estimates, if any, is recognized in Statement of
Profit and Loss such that the cumulative expenses
reflects the revised estimate, with a corresponding
adjustment to the Share Based Payments Reserve.
No expense is recognised for awards that do not
ultimately vest because non-market performance
and/or service conditions have not been met.
The dilutive effect of outstanding options is reflected
as additional share dilution in the computation of
diluted earnings per share.
Equity-settled share-based payment transactions
with parties other than employees are measured
at the fair value of the services received, except
where that fair value cannot be estimated reliably,
in which case they are measured at the fair value
of the equity instruments granted, measured at the
date the counterparty renders the service.
o Financial Instruments
i. Financial assets
Initial Recognition and Measurement
Financial assets are classified, at initial
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at amortised cost, fair value through other
comprehensive income (OCI), and fair value
through profit or loss.
The classification of financial assets at initial
recognition depends on the financial asset's
contractual cash flow characteristics and the
Company's business model for managing
them. With the exception of trade receivables
that do not contain a significant financing
component or for which the Company has
applied the practical expedient, the Company
initially measures a financial asset at its fair
value plus, in the case of a financial asset not
at fair value through profit or loss, transaction
costs. Trade receivables that do not contain
a significant financing component or for
which the Company has applied the practical
expedient are measured at the transaction
price determined under Ind AS 115. Refer to
the accounting policies in section (e) Revenue
from contracts with customers.
In order for a financial asset to be classified
and measured at amortised cost or fair value
through OCI, it needs to give rise to cash
flows that are ‘solely payments of principal
and interest (SPPI)' on the principal amount
outstanding. This assessment is referred to as
the SPPI test and is performed at an instrument
level. Financial assets with cash flows that are
not SPPI are classified and measured at fair
value through profit or loss, irrespective of the
business model.
Subsequent measurement
For purposes of subsequent measurement,
financial assets are classified in two categories:
(i) Financial assets at amortised cost
(debt instruments)
(ii) Financial assets at fair value
through profit or loss
(iii) Financial assets at fair value through
other comprehensive income (FVTOCI)
with recycling of cumulative gains and
losses (debt instruments)
(iv) Financial assets designated at fair
value through OCI with no recycling
of cumulative gains and losses upon
derecognition (equity instruments)
ii. Financial assets at fair value through
other comprehensive income (FVTOCI)
Financial assets are measured at fair value
through other comprehensive income if
these financial assets are held within a
business whose objective is achieved by both
collecting contractual cash flows that give
rise on specified dates to solely payments of
principal and interest on the principal amount
outstanding and by selling financial assets.
Debt instruments included within the
FVTOCI category are measured initially as
well as at each reporting date at fair value.
Fair value movements are recognized in
the other comprehensive income (OCI).
However, the Company recognizes interest
income, impairment losses & reversals and
foreign exchange gain or loss in the statement
of profit & loss. On de-recognition of the asset,
cumulative gain or loss previously recognised
in OCI is reclassified from the equity to P&L.
Interest earned whilst holding FVTOCI debt
instrument is reported as interest income
using the EIR method
Equity instruments at FVTOCI
All equity instruments in scope of Ind AS 109
are measured at fair value. Equity instruments
which are held for trading and contingent
consideration recognised by an acquirer in
a business combination to which Ind AS 103
applies are classified as at FVTPL. For all
other equity instruments, the Company may
make an irrevocable election to present
subsequent changes in the fair value in other
comprehensive income. The Company makes
such election on an instrument-by-instrument
basis. The classification is made on initial
recognition and is irrevocable.
If the Company decides to classify an
equity instrument as at FVTOCI, then all fair
value changes on the instrument, excluding
dividends, are recognized in the OCI. There is
no recycling of the amounts from OCI to P&L,
even on sale of investment. However, the
Company may transfer the cumulative gain or
loss within equity.
Equity instruments included within the FVTPL
category are measured at fair value with
all changes recognized in the statement
of profit & loss.
iii. Financial assets at fair value through
profit or loss (FVTPL)
Financial assets are measured at fair value
through statement of profit or loss unless it is
measured at amortised cost or at fair value
through other comprehensive income on
initial recognition.
In addition, the Company may elect to
classify a financial asset, which otherwise
meets amortized cost or FVTOCI criteria, as
at FVTPL. However, such election is allowed
only if doing so reduces or eliminates a
measurement or recognition inconsistency
(referred to as ‘accounting mismatch').
iv. De-recognition
A financial asset (or, where applicable, a part
of a financial asset or part of a Company
of similar financial assets) is primarily
de-recognised (i.e. removed from the
Company's balance sheet) when:
• The rights to receive cash flows from the
asset have expired, or
• The Company has transferred its rights
to receive cash flows from the asset
or has assumed an obligation to pay
the received cash flows in full without
material delay to a third party under
a ‘pass-through' arrangement; and
either (a) the Company has transferred
substantially all the risks and rewards of
the asset, or (b) the Company has neither
transferred nor retained substantially all
the risks and rewards of the asset, but
has transferred control of the asset.
When the Company has transferred its rights
to receive cash flows from an asset or has
entered into a pass-through arrangement, it
evaluates if and to what extent it has retained
the risks and rewards of ownership. When it has
neither transferred nor retained substantially
all of the risks and rewards of the asset, nor
transferred control of the asset, the Company
continues to recognise the transferred asset
to the extent of the Company's continuing
involvement. In that case, the Company also
recognises an associated liability.
The transferred asset and the associated
liability are measured on a basis that
reflects the rights and obligations that the
Company has retained.
Continuing involvement that takes the form
of a guarantee over the transferred asset is
measured at lower of the original carrying
amount of the asset and maximum amount
of consideration that the Company could be
required to repay.
v. Impairment of financial assets:
In accordance with Ind-AS 109, the Company
applies expected credit loss (ECL) model for
measurement and recognition of impairment
loss on the following financial assets and
credit risk exposure:
- Financial assets that are debt instruments,
and are measured at amortised cost
e.g., loans, debt securities, deposits,
trade receivables and bank balance
- Financial assets that are debt instruments
and are measured as at FVTOCI
- Lease receivables under Ind-AS 17.
- Contract assets and trade receivables
under Ind-AS 18.
The Company follows ‘simplified approach' for
recognition of impairment loss allowance on:
- Trade receivables, and
- All lease receivables resulting from
transactions within the scope of Ind AS 17.
The application of simplified approach does
not require the Company to track changes in
credit risk. Rather, it recognises impairment
loss allowance based on lifetime ECLs at each
reporting date, right from its initial recognition.
For recognition of impairment loss on other
financial assets and risk exposure, the
Company determines that whether there has
been a significant increase in the credit risk
since initial recognition. If credit risk has not
increased significantly, 12-month ECL is used
to provide for impairment loss. However, if
credit risk has increased significantly, lifetime
ECL is used. If, in a subsequent period, credit
quality of the instrument improves such that
there is no longer a significant increase in
credit risk since initial recognition, then the
entity reverts to recognising impairment loss
allowance based on 12-month ECL.
Lifetime ECL are the expected credit losses
resulting from all possible default events over
the expected life of a financial instrument.
The 12-month ECL is a portion of the lifetime
ECL which results from default events on a
financial instrument that are possible within
12 months after the reporting date.
ECL is the difference between all contractual
cash flows that are due to the Company in
accordance with the contract and all the cash
flows that the entity expects to receive (i.e.,
all cash shortfalls), discounted at the original
EIR. When estimating the cash flows, an entity
is required to consider:
- All contractual terms of the financial
instrument (including prepayment
extension, call and similar options)
over the expected life of the financial
instrument. However, in rare cases
when the expected life of the financial
instrument cannot be estimated reliably,
then the entity is required to use the
remaining contractual term of the
financial instrument.
- Cash flows from the sale of collateral
held or other credit enhancements that
are integral to the contractual terms.
As a practical expedient, the Company uses a
provision matrix to determine impairment loss
allowance on portfolio of its trade receivables.
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. At every reporting
date, the historical observed default rates are
updated and changes in the forward-looking
estimates are analysed.
ECL impairment loss allowance (or reversal)
recognized during the period is recognized
as income/expense in the statement of profit
and loss (P&L). This amount is reflected
under the head ‘other expenses' in the P&L.
The balance sheet presentation for various
financial instruments is described below:
The balance sheet presentation for various
financial instruments is described below:
- For financial assets measured as at
amortised cost and lease receivables:
ECL is presented as an allowance, i.e.
as an integral part of the measurement
of those assets in the balance sheet.
The allowance reduces the net carrying
amount. Until the asset meets write-off
criteria, the Company does not reduce
impairment allowance from the gross
carrying amount.
- Loan commitments and financial
guarantee contracts: ECL is presented
as a provision in the balance sheet, i.e.
as a liability.
- Debt instruments measured at FVTOCI:
Since financial assets are already
reflected at fair value, impairment
allowance is not further reduced
from its value. Rather, ECL amount is
presented as ‘accumulated impairment
amount' in the OCI.
For assessing increase in credit risk and
impairment loss, the Company combines
financial instruments on the basis of shared
credit risk characteristics with the objective
of facilitating an analysis that is designed to
enable significant increases in credit risk to
be identified on a timely basis.
The Company does not have any purchased
or originated credit-impaired (POCI) financial
assets, i.e., financial assets which are credit
impaired on purchase/ origination.
Financial liabilities and Equity instruments
Initial Recognition and Measurement
Debt and equity 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.
i. 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 a Company entity are recognised
at the proceeds received, net of
direct issue costs.
ii. Financial liabilities
All financial liabilities are recognised
initially at fair value and subsequently
measured at amortised cost using the
effective interest method or at FVTPL.
All the financial assets and financial liabilities
of the Company are currently measured
at amortized cost except for investment
in Mutual Fund.
The Company's financial liabilities include
trade and other payables and loans
Subsequent measurement
For purposes of subsequent measurement,
financial liabilities are classified in two
categories:
• Financial liabilities at fair value
through profit or loss
• Financial liabilities at amortised cost
(loans and borrowings)
Derecognition
A financial liability is derecognised when the
obligation under the liability is discharged
or cancelled or expires. When an existing
financial liability is replaced by another from
the same lender on substantially different
terms, or the terms of an existing liability are
substantially modified, such an exchange or
modification is treated as the derecognition of
the original liability and the recognition of a
new liability. The difference in the respective
carrying amounts is recognised in the
statement of profit and loss.
Re-classification of Financial Assets
The Company determines classification
of financial assets and liabilities on initial
recognition. After initial recognition, no
reclassification is made for financial assets
which are equity instruments and financial
liabilities. For financial assets which are debt
instruments, a reclassification is made only
if there is a change in the business model
for managing those assets. Changes to the
business model are expected to be infrequent.
The Company's senior management
determines change in the business model as
a result of external or internal changes which
are significant to the Company's operations.
Such changes are evident to external parties.
A change in the business model occurs
when the Company either begins or ceases
to perform an activity that is significant to
its operations. If the Company reclassifies
financial assets, it applies the reclassification
prospectively from the reclassification date
which is the first day of the immediately
next reporting period following the change
in business model. The Company does not
restate any previously recognised gains,
losses (including impairment gains or
losses) or interest.
Offsetting of financial instruments
Financial assets and financial liabilities
are offset and the net amount is reported
in the balance sheet if there is a currently
enforceable legal right to offset the recognised
amounts and there is an intention to settle on
a net basis, to realise the assets and settle the
liabilities simultaneously
p Cash and Cash Equivalents
Cash comprises cash on hand. Cash equivalents
are short-term balances (with an original maturity of
three months or less from the date of acquisition),
highly liquid investments that are readily convertible
into known amounts of cash and which are subject
to insignificant risk of changes in value.
q Security Deposit
The Company, at the time of buyer registration,
collects refundable security deposits (“RSD”)
from prospective bidder, which entitles bidder
to bid during auction. The RSD is towards
ensuring performance of the contract.
As per contractual terms, the RSD is refunded
upon demand after adjustments of facilitation fee.
The Company generally accounts for unclaimed
RSD upon completion of limitation period of 3
years. Security deposits are forfeited and treated
as other income, on the earlier of expiry of three
years; or uncertainty over repayment
r Earning Per Share
Basic earnings per share has been computed by
dividing profit or loss for the year by the weighted
average number of shares outstanding during
the year. Diluted earnings per share has been
computed using the weighted average number of
shares and dilutive potential shares, except where
the result would be anti-dilutive.
s Inventories
Inventories are valued at the lower of cost and net
realisable value.
Traded goods comprises of used car: cost
includes cost of purchase and other costs
incurred in bringing the inventories to their present
location and condition. Cost is determined on
weighted average basis.
Net realisable value is the estimated selling price
in the ordinary course of business, less estimated
costs of completion and the estimated costs
necessary to make the sale.
t Investment in Subsidiary
The Company recognizes its investment in
subsidiary companies at cost less accumulated
impairment loss if any. Cost represents amount
paid for acquisition of said investments. The details
of such investment is given in note 5.
On disposal of an investment, the difference
between the net disposal proceeds and carrying
amount is charged to statement of profit
and loss account.
Impairment of investments
The Company reviews its carrying value of
investments carried at cost annually, or more
frequently when there is indication for impairment.
If the recoverable amount is less than its carrying
amount, the impairment loss is recorded in the
Statement of Profit and Loss.
2.3 Critical accounting judgements and key sources of
estimation uncertainty
In application of Company's accounting policies, which
are described above, the directors of the Company
are required to make judgements, estimations and
assumptions about the carrying value of assets and
liabilities that are not readily apparent from other
sources. The estimates and associated assumptions
are based on historical experience and other factors
that are considered to be relevant. Actual results may
differ from these estimates.
The estimates and underlying assumptions are reviewed
on an ongoing basis. Revisions to accounting estimates
are recognised in the period in which the estimate is
revised if the revision affects only that period, or in the
period of revision or future periods if the revision affects
both current and future periods.
A Judgments
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
financial statements
Operating lease commitments - Company as a
lessee
The Company has entered into lease agreements
with lessor and has determined, based on
an evaluation of the terms and conditions of
the arrangements, such as the lease term not
constituting a major part of the economic life of
the commercial property and the fair value of the
asset, that it does not retains the significant risks
and rewards of ownership of these properties and
accounts for the contracts as operating leases.
B Estimates and assumptions
The key assumptions concerning the future and
other key sources of estimation uncertainty at the
reporting date, that have a significant risk of causing
a material adjustment to the carrying amounts of
assets and liabilities within the next financial year,
are described below. The Company based its
assumptions and estimates on parameters available
when the financial statements were prepared.
Existing circumstances and assumptions about
future developments, however, may change due to
market changes or circumstances arising that are
beyond the control of the Company. Such changes
are reflected in the assumptions when they occur.
Estimates and underlying assumptions are reviewed
on an ongoing basis. Revisions to accounting
estimates are recognised prospectively.
a) Impairment of non-financial assets:
The carrying amounts of the Company's
non-financial assets, other than deferred
tax assets, are reviewed at the end of each
reporting period to determine whether there
is any indication of impairment. If any such
indication exists, then the asset's recoverable
amount is estimated.
The recoverable amount of an asset or
cash-generating unit (‘CGU') is the greater
of its value in use and its fair value less
costs to sell. 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 CGU. For the purpose
of impairment testing, assets that cannot
be tested individually are accompanied
together into the smallest Company of assets
that generates cash inflows from continuing
use that are largely independent of the
cash inflows of other assets or Company of
assets (‘CGU').
Market related information and estimates are
used to determine the recoverable amount.
Key assumptions on which management
has based its determination of recoverable
amount include estimated long term growth
rates, weighted average cost of capital and
estimated operating margins. Cash flow
projections take into account past experience
and represent management's best estimate
about future developments.
the Company applies expected credit loss
(ECL) model for measurement and recognition
of impairment loss on the following financial
assets and credit risk exposure:
- Contract assets and trade receivables
under Ind-AS 18.
- Loan commitments which are not
measured as at FVTPL.
- Financial guarantee contracts which are
not measured as at FVTPL
b) Impairment of financial assets:
The impairment provisions for financial
assets are based on assumptions about risk
of default and expected cash loss rates.
The Company uses judgements in making
these assumptions and selecting the inputs
to the impairment calculations based on
Company's history, existing market conditions
as well as forward looking estimates at the
end of each reporting period.
c) Taxes
Deferred tax assets are recognized for
unused tax losses to the extent that it is
probable that taxable profit will be available
against which the losses can be utilized.
Significant management judgement is
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. Provision for tax liabilities
require judgements on the interpretation of
tax legislation, developments in case law
and the potential outcomes of tax audits and
appeals which may be subject to significant
uncertainty. Therefore, the actual results
may vary from expectations resulting in
adjustments to provisions, the valuation of
deferred tax assets, cash tax settlements and
therefore the tax charge in the Statement of
Profit or Loss.
d) Estimated useful life of property plant and
equipment and intangible assets
The charge in respect of periodic depreciation/
amortization is derived after determining
an estimate of an asset's expected useful
life and the expected residual value at the
end of its life. Management at the time the
asset is acquired/ capitalized periodically,
including at each financial period/year end,
determines the useful lives and residual
values of Company's assets. The lives are
based on historical experience with similar
assets as well as anticipation of future events,
which may affect their life, such as changes
in technology. The estimated useful life is
reviewed at least annually.
e) 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 (IBR) 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
f) Share-based payment
The cost of equity-settled transactions is
determined by the fair value at the date
when the grant is made using an appropriate
valuation model. Further details are
given in Note 31
That cost is recognised, together with a
corresponding increase in share-based
payment (SBP) reserves in equity, over the
period in which the performance and/or
service conditions are fulfilled in employee
benefits expense. The cumulative expense
recognised for equity-settled transactions
at each reporting date until the vesting date
reflects the extent to which the vesting period
has expired and the Company's best estimate
of the number of equity instruments that will
ultimately vest. The expense or credit in
the statement of profit and loss for a period
represents the movement in cumulative
expense recognised as at the beginning
and end of that period and is recognised in
employee benefits expense.
Service and non-market performance
conditions are not taken into account when
determining the grant date fair value of
awards, but the likelihood of the conditions
being met is assessed as part of the
Company's best estimate of the number of
equity instruments that will ultimately vest.
Market performance conditions are reflected
within the grant date fair value. Any other
conditions attached to an award, but without
an associated service requirement, are
considered to be non-vesting conditions.
Non-vesting conditions are reflected in the fair
value of an award and lead to an immediate
expensing of an award unless there are also
service and/or performance conditions.
g) Provision for Trade Receivable
The Company creates provision based on
days past due for Companying's of various
customer segments that have similar loss
patterns (i.e., by customer type).
Trade receivables do not carry any interest
and are stated at their nominal value
as reduced by appropriate allowances
for estimated irrecoverable amounts.
Estimated irrecoverable amounts are based
on the ageing of the receivable balances
and historical experience adjusted for
forward-looking estimates. Individual trade
receivables are written off when management
deems them not to be collectible.
For details of allowance for doubtful debts
please refer Note 8.
h) Defined Benefit plans
The cost of the defined benefit gratuity plan
and other post-employment benefit 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 and
future salary increases. Due to 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. The mortality rate
is based on publicly available mortality table
in India. The mortality tables tend to change
only at interval in response to demographic
changes. Further salary increases and
gratuity increases are based on expected
future inflation rates.
2.4 New and amended standards
The Company applied for the first-time certain standards
and amendments, which are effective for annual periods
beginning on or after 1 April 2024. The Company
has not early adopted any standard, interpretation or
amendment that has been issued but is not yet effective.
(i) Amendments to Ind AS 116 Leases - Lease
Liability in a Sale and Leaseback
The MCA notified the Companies (Indian
Accounting Standards) Second Amendment Rules,
2024, which amend Ind AS 116, Leases, with
respect to Lease Liability in a Sale and Leaseback.
The amendment specifies the requirements that a
seller-lessee uses in measuring the lease liability
arising in a sale and leaseback transaction, to
ensure the seller-lessee does not recognise any
amount of the gain or loss that relates to the right of
use it retains.
The amendment is effective for annual reporting
periods beginning on or after 1 April 2024 and must
be applied retrospectively to sale and leaseback
transactions entered into after the date of initial
application of Ind AS 116.
The amendments do not have any impact on the
Company's financial statements.
(ii) Deferred Tax related to Assets and Liabilities
arising from a Single Transaction - Amendments to
Ind AS 12
The amendments narrow the scope of the initial
recognition exception under Ind AS 12, so that
it no longer applies to transactions that give
rise to equal taxable and deductible temporary
differences such as leases.
The Company previously recognised for deferred
tax on leases on a net basis. As a result of these
amendments, the Company has recognised a
separate deferred tax asset in relation to its lease
liabilities and a deferred tax liability in relation to its
right-of-use assets. Since, these balances qualify
for offset as per the requirements of paragraph
74 of Ind AS 12,there is no impact in the balance
sheet. There was also no impact on the opening
retained earnings as at 1 April 2022.
Apart from these, consequential amendments and
editorials have been made to other Ind AS like Ind
AS 101, Ind AS 102, Ind AS 103, Ind AS 107, Ind
AS 109, Ind AS 115 and Ind AS 34.
2.5 Standards notified but not yet effective
There are no new standards that are notified, but
not yet effective, upto the date of issuance of the
financial statements.
Note on Goodwill
The goodwill of ' 78,409.27 Lakhs was created on merger of Automotive Exchange Private Limited (‘AEPL') with an
appointed date of April 1, 2017. By acquisition of this business the Company was able to bring synergies of the brand
name and trade mark as well as that of their franchisee business. Accordingly, for the purpose of testing impairment of
goodwill allocated to this transaction, the “website services and fees” is considered as one Cash Generating Unit (CGU).
The recoverable amount of this CGU is determined based on fair value less cost of disposal and its value in use as per
requirement of Ind AS 36. The fair value is computed as per Discounted Cash Flow method, covering generally a period
of five years which are based on key assumptions such as margins, expected growth rates based on past experience
and Management's expectations/extrapolation of normal increase/steady terminal growth rate and appropriate discount
rates that reflects current market assessments of time value of money. The management believes that any reasonable
possible change in key assumptions on which recoverable amount is based is not expected to cause the aggregate
carrying amount to exceed the aggregate recoverable amount of the cash generating unit. Due to use of significant
unobservable input to compute the fair value, it is classified as level 3 in the fair value hierarchy as per the requirement
of Ind AS 113. Refer to the key assumptions below:
23: Employee Benefits
a) Defined Contribution Plans
The Company makes contributions towards a provident fund under a defined contribution retirement benefit plan
for qualifying employees. The provident fund is administered by Employee Provident Fund Organisation. Under this
scheme, the Company is required to contribute a specified percentage of payroll cost to fund the benefits.
Both the employees and the Company make pre-determined contributions to the provident fund. Amount recognized
as expense amounts to ' 367.14 Lakhs for the year ended March 31, 2025 (March 31, 2024: ' 335.43) under
contributions to provident and other funds (Note 19 Employee benefits expense).
b) Defined Benefit Plans
(i) The Gratuity scheme is defined benefit plan that provides for lump sum payments to employees whose right to
receive gratuity had vested at the time of resignation, retirement, death while in employment or on termination
of employment of an amount equivalent to 15 days salary for each completed year of service or part thereof in
excess of six months. Vesting occurs upon completion of five years of service except in case of death.
The present value of gratuity obligation is determined based on actuarial valuation using the Projected Unit
credit Method, which recognises each period, of service as giving rise to additional unit of employee benefit
entitlement and measures each unit separately to build up the final obligation.
ii) The plan typically exposes the Company to actuarial risk such as interest rate risk, salary risk and
demographic risk:
Interest rate risk - The defined benefit obligation is calculated using a discount rate based on government
bonds. If bond yields fall, the defined benefit obligation will tend to increase.
Salary risk - Higher than expected increases in salary will increase the defined benefit obligation.
Demographic risk - This is the risk of variability of results due to unsystematic nature of decrements that
include mortality, withdrawal, disability and retirement. The effect of these decrements on the defined benefit
obligation is not straight forward and depends upon the combination of salary increase, discount rate and
vesting criteria. It is important not to overstate withdrawals because in the financial analysis the retirement
benefit of a short career employee typically costs less per year as compared to a long service employee.
iii) The most recent actuarial valuation of the defined benefit obligation was carried out as at March 31, 2025 by
an independent actuary
iv) The details in respect of the amounts recognised in the Company's financial statements for the year ended
March 31,2025 and year ended March 31,2024 for the defined benefit scheme is as under:
(ii) Financial risk management objectives and policies
The Company's principal financial liabilities comprise trade and other payables and lease liabilities. The main
purpose of these financial liabilities is to finance the Company's operations. The Company's principal financial assets
include trade receivables, and cash and cash equivalents that derive directly from its operations. The Company
holds investments mutual funds.
The Company is exposed to market risk, credit risk and liquidity risk. The Company's senior management oversees
the management of these risks. The Company's senior management is supported by a financial risk committee that
advises on financial risks and the appropriate financial risk governance framework for the Company. The financial
risk committee provides assurance to the Company's senior management that the Company's financial risk activities
are governed by appropriate policies and procedures and that financial risks are identified, measured and managed
in accordance with the Company's policies and risk objectives. The Board of Directors reviews and agrees policies
for managing each of these risks, which are summarised below.
(ii) (a) 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 of currency risk and other price risk, such as equity price.
Financial instruments affected by market risk include debt and equity investments
(b) Credit risk management
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial
loss to the Company.
The Company has adopted a policy of only dealing with creditworthy counterparties, as a means of mitigating
the risk of financial loss from defaults. The Company obtains market feedback on the creditworthiness of the
customer concerned. Customer wise outstanding receivables are reviewed on a monthly basis and where
necessary, the credit allowed to particular customers for subsequent sales is adjusted in line with their past
payment performance. Credit exposure is controlled by counterparty limits that are reviewed and approved by
the management on a quarterly basis.
(c) Financial instruments and cash deposits note
The Company invests in mutual funds with Balanced risk. The Company recognised provision for expected
credit losses/profit on its instruments at fair value through profit and loss.
The Company's maximum exposure to credit risk for the components of the balance sheet at March 31,2025
and March 31,2024 is the carrying amounts as per Note 5.
(d) Liquidity risk management
The following tables detail the Company's remaining contractual maturity for its financial liabilities with agreed
repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial
liabilities based on the earliest date on which the Company can be required to pay. The table below provides
details regarding the contractual maturities of financial liabilities including estimated interest payments as at
respective reporting dates
28: Fair Value Measurement
Fair value of financial assets and financial liabilities that are measured at fair value on recurring basis
The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged
in a current transaction between willing parties, other than in a forced or liquidation sale. In accordance with Ind AS,
the Company's investments in debt mutual funds have been fair valued. The Company has designated investments
as fair value through profit and loss. Management assessed that the carrying values of cash and cash equivalents,
trade receivables, trade payables, and other current liabilities approximate their fair values largely due to the short-term
maturities of these instruments.
Set out below, is a comparison by class of the carrying amounts and fair value of the Company's financial assets and
liabilities with carrying amounts that are reasonable approximations of fair values
30. Capital Management
For the purpose of the Company's capital management, capital includes equity capital and all other equity reserves
attributable to the equity shareholders of the Company. The Company does not have any external debt / loans.
The primary objective of the Company when managing capital is to safeguard its ability to continue as a going concern
and to maintain an optimal capital structure so as to maximize shareholder value.
As at each year end, the Company has only one class of equity shares and has lease liabilities and no debt. Consequent to
such capital structure, there are no externally imposed capital requirements. In order to maintain or achieve an optimal
capital structure, the Company allocates its capital for re-investment into business based on its long term financial plans.
No changes were made in the objectives, policies or processes for managing capital during the years ended March 31,
2025 and March 31,2024
31. Employee Stock Option Scheme
(a) In 2010, 2012, 2014, 2016 and 2021 the Company had instituted an Equity settled “Employee Stock Option Plan
2010” (ESOP 2010), "Employee Stock Option Plan 2011” (ESOP 2011), “Employee Stock Option Plan 2014” (ESOP
2014), “Employee Stock Option Plan 2015” (ESOP 2015), “Employee Stock Option Plan 2021 (I)” [ESOP 2021 (I)],
and “Employee Stock Option Plan 2021 (II)” [ESOP 2021 (II)] respectively, for its employees and directors. The “ESOP
2010”, “ESOP 2011” ,”ESOP 2014”, “ESOP 2015”, “ESOP 2021 (I)” and “ESOP 2021 (II)” are administered through
by the Nomination and Remuneration Committee (NRC). Under the scheme, the NRC has accorded its consent to
grant options exercisable into not more than 447,500 (under “ESOP 2010”), 802,608 (under “ESOP 2011”), 300,710
(under “ESOP 2014”), 1,350,000 (under “ESOP 2015”), 11,34,241 [under “ESOP 2021 (I)”] and 2,000,000 [under
“ESOP 2021 (II)”] Equity Shares of ' 10 each of the Company.
Note :
a. Increase in investment in mutual fund in current year has resulted in return on investment.
b. Increase in Profit has resulted in an increase in these ratios.
c. Since Company does not have any debt , hence Debt equity and debt service ratio is not applicable.
36: Acquistion of Subsidiary
On August 11,2023, Pursuant to Regulation 30 read with Para A of Part A of Schedule III of the Securities and
Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, and in continuation to
the intimation letter dated July 10, 2023, Company completed the acquisition of 100% stake of Sobek Auto India Private
Limited (“Sobek”) from its holding company OLX India B.V As part of the deal, the Company had acquired 100% of
Sobek for a consideration of ' 52,385.01 lakhs, which is engaged in the business of automotive digital platform and
classifieds internet business. On October 25, 2023, the Board of Directors of Sobek made a strategic decision to
close its C2B operations i.e. auto transaction business segment (“C2B Segment”) considering the challenges faced
with its unit economics. Sobek, therefore, decided to reduce human resources and other administrative costs of the
said business . Sobek has continued to focus and grow its Classified business (Olx.in - which includes both auto and
non-auto verticals).
37: Other Statutory Information
i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the
Company for holding any Benami property.
ii) The Company does not have any transactions with companies struck off.
iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the
statutory period.
iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
v) The Company has not received any fund from any persons or entities, including foreign entities (Funding Party) with
the understanding (whether recorded in writing or otherwise) that the Company shall:
(a) directly or indirectly lend or invest in other persons or
(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,
(vi) The Company has not advanced or loaned or invested funds to any other persons or entities, including foreign
entities (Intermediaries) with the understanding that the Intermediary shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the company (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like to or on behalf
vii) The Company does not have any such transaction which is not recorded in the books of accounts that has been
surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such
as, search or survey or any other relevant provisions of the Income Tax Act, 1961.
38: Audit Trail Reporting
The Company has used accounting and revenue software for maintaining its books of account which has a feature of
recording audit trail (edit log) facility except that audit trail feature is not enabled for direct changes to data when using
certain access rights for the entire year. Further no instance of audit trail feature being tampered with was noted in
respect of accounting softwares where the audit trail has been enabled. The date of enablement of audit trail on direct
changes to data is as below:
Further, in respect of the financial year 2023-24 and 2024-25, the audit trail has been preserved by the Company as per
the statutory requirements for record retention to the extent it was enabled and recorded in the respective years.
39: The provision of Section 135 of the Companies Act, 2013 is applicable to the company. The Company is
not required to spend on CSR basis the average net profit computed as per section 135(5) of Companies
Act 2013.
As per our report of even date
For S. R. Batliboi & Associates LLP For and on behalf of the Board of Directors
Chartered Accountants CarTrade Tech Limited
ICAI Firm Registration number:101049W/E300004 CIN: L74900MH2000PLC126237
per Govind Ahuja Vinay Vinod Sanghi Aneesha Bhandary Lalbahadur Pal
Partner Chairman and Executive Director and Company Secretary and
Managing Director Chief Financial officer Compliance officer
Membership no: 048966 DIN: 00309085 DIN: 07779195 ACS :40812
Place: Mumbai Place: Mumbai Place: Mumbai Place: Mumbai
Date: May 07, 2025 Date: May 07, 2025 Date: May 07, 2025 Date: May 07, 2025
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