2 Summary of significant accounting policies
2.1 Basis of preparation
The Standalone financial statements have been prepared to comply in all material aspects with the Indian Accounting Standard ('Ind AS')
notified under section 133 of the Companies Act, 2013, read together with rule 3 of the Companies (Indian Accounting Standards) Rules,
2015 as amended and presentation requirements of Division II of Schedule III to the Companies Act, 2013 (Ind AS compliant Schedule III).
The financial statements comply with Ind AS notified by the Ministry of Corporate Affairs (MCA).
These financial statements are authorized for issue by the Company's Board of Directors on May 29, 2025.The accounting policies, as
set out in the following paragraphs of this note, have been consistently applied, by the Company, to all the years presented in the said
financial statements.
The preparation of the said financial statements requires the use of certain critical accounting estimates and judgements. It also requires
the management to exercise judgement in the process of applying the Company's accounting policies.
All the amounts included in the financial statements are reported in lakhs of Indian Rupees and are rounded to the nearest lakhs, except
per share data and unless stated otherwise. These Ind AS Financial Statements comprise Standalone Statement of Assets and Liabilities
as at 31st March, 2025 and as at 31st March, 2024, Standalone Statement of Profit and Loss (including Other Comprehensive Income) for
the year ended 31st March, 2025 and year ended 31st March, 2024, Standalone Statement of Cash Flows, the Statement of Changes in
Equity for the years then ended, and a summary of significant accounting policies and other explanatory information.
2.2 Fair value measurement
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market
participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or
transfer the liability takes place either:
• In the principal market for the asset or liability, or
• In the absence of a principal market, in the most advantageous market for the asset or liability
The principal or the most advantageous market must be accessible by the Company. The fair value of an asset or a liability is measured
using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act
in their economic best interest. 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, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs. All assets and liabilities for
which fair value is measured or disclosed in the financial statements are categorized 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) market prices in 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 recognized in the financial statements on a recurring basis, the Company determines whether transfers
have occurred between levels in the hierarchy by re-assessing categorization (based on the lowest level input that is significant to the fair
value measurement as a whole) at the end of each reporting year.
At each reporting date, the Company 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 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.
2.3 Current versus non-current classification
The Company presents assets and liabilities in the balance sheet based on current / non-current classification. Deferred tax assets
and liabilities are classified as non-current assets and liabilities. An asset is classified as current when it is expected to be realized or
intended to be sold or consumed in the normal operating cycle, held primarily for the purpose of trading, expected to be realized within
twelve months after the reporting year, or cash or cash equivalent unless restricted from being exchanged or used to settle a liability for
at least twelve months after the reporting year.
A liability is classified as current when it is expected to be settled in the normal operating cycle, it is held primarily for the purpose of
trading, it is due to be settled within twelve months after the reporting year, or there is no unconditional right to defer the settlement
of the liability for at least twelve months after the reporting year. The operating cycle is the time between the acquisition of assets for
processing and their realization in cash and cash equivalents.
2.4 Property, plant and equipment ('PPE')
An item is recognized as an asset, if and only if, it is probable that the future economic benefits associated with the item will flow to the
Company and its cost can be measured reliably. PPE is stated at cost, net of accumulated depreciation and accumulated impairment
losses, if any.
The initial cost of PPE comprises purchase price (including non-refundable duties and taxes but excluding any trade discounts and
rebates), borrowing costs if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for
the intended use. Subsequent costs are included in the asset's carrying amount or recognized as separate assets, as appropriate, only
when it is probable that the future economic benefits associated with expenditure will flow to the Company and the cost of the item can
be measured reliably. All other repairs and maintenance are charged to the Statement of Profit and Loss at the time of incurrence. Gains
or losses arising from the de-recognition of PPE 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.
Depreciation on property, plant and equipment is calculated on a Written down Value basis using the rates arrived at based on the useful
lives estimated by the management which are in line with the useful lives prescribed in Schedule II of the Companies Act, 2013.
The useful lives, residual values and depreciation method of PPE are reviewed, and adjusted appropriately, at least as at each reporting
date so as to ensure that the method and period of depreciation are consistent with the expected pattern of economic benefits from
these assets. The effects of any change in the estimated useful lives, residual values and/or depreciation method are accounted for
prospectively, and accordingly, the depreciation is calculated over the PPE's remaining revised useful life.
Subsequent costs are capitalized on the carrying amount or recognized as a separate asset, as appropriate, only when future economic
benefits associated with the item are probable to flow to the Company and the 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 recognizes such components separately
and depreciates them based on their specific useful lives. All repair and maintenance are charged to the statement of profit and loss
during the reporting year in which they are incurred.
2.5 Intangible assets
Identifiable intangible assets are recognised when the Company controls the asset, it is probable that future economic benefits attributed
to the asset will flow to the Company and the cost of the asset can be measured reliably.
Intangible assets are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less
accumulated amortization and accumulated impairment losses, if any.
Intangible assets are amortized on a straight-line basis over the estimated useful economic life. The Company amortizes software over
the best estimate of its useful life which is 12 years. Website maintenance costs are charged to expenses as incurred.
The amortization period and the amortization method are reviewed at least at each financial year end. If the expected useful life of the
asset is significantly different from previous estimates, the amortization period is changed prospectively. If there has been a significant
change in the expected pattern of economic benefits from the asset, the amortization method is changed to reflect the changed pattern.
Such changes are accounted for in accordance with Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors.
2.6 Borrowing cost
Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial
period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective asset. All other borrowing
costs are expensed in the year they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with
the borrowing of funds.
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of
another entity.
(i) Financial assets
All financial assets are recognized initially at fair value. Transaction costs that are directly attributable to the acquisition of financial
assets (other than financial assets at fair value through profit or loss) are added to the fair value measured on initial recognition of
financial assets. Purchase and sale of financial assets are accounted for at the settlement date.
Cash and cash equivalents
Cash and cash equivalents in the balance sheet comprise cash in banks and short-term deposits with an original maturity of three months
or less, which are subject to an insignificant risk of changes in value.
Classification
The Company determines the classification of its financial instruments at initial recognition. Financial assets are classified, at initial
recognition, as subsequently measured at amortized cost, fair value through other comprehensive income (OCI) with recycling of
cumulative gains and losses (debt instruments), designated at fair value through OCI with no recycling of cumulative gains and losses
upon derecognition (equity instruments) and fair value through profit or loss.
Financial instruments at amortized cost
A financial instrument is measured at the amortized cost if both the following conditions are met:
a) The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and
b) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the
principal amount outstanding.
After initial measurement, such financial assets are subsequently measured at amortized cost using the effective interest rate (EIR)
method. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral
part of the EIR. The EIR amortization is included in other income in the statement of profit and loss. The losses arising from impairment
are recognized in the statement of profit and loss. This category includes cash and bank balances, loans, unbilled revenue, trade and
other receivables.
Financial instruments at Fair Value through Other Comprehensive Income ('FVTOCI')
Any financial instrument, which does not meet the criteria for categorization at amortized cost or at fair value through other comprehensive
income, is classified at fair value through profit and loss. Financial instruments included in the fair value through profit and loss category
are measured at fair value with all changes recognized in the statement of profit and loss.
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 recognized amounts and there is an intention to settle on a net basis, to realize the assets and settle the liabilities
simultaneously.
Financial guarantee contracts
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. Financial guarantee
contracts issued by the Company are initially measured at their fair values and, if not designated as at FVTPL, are subsequently measured
at the higher of:
• The amount of loss allowance determined in accordance with impairment requirements of Ind AS 109; and
• The amount initially recognized less, when appropriate, the cumulative amount of income recognized in accordance with the principles
of Ind AS 115.
Equity investments
All equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments which are held for trading are classified as
at FVTPL. For all other equity instruments, the Company may make an irrevocable election to present in other comprehensive income
subsequent changes in the fair value. The Company makes such an 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 the sale of an investment.
Equity instruments included within the FVTPL category are measured at fair value with all changes recognized in the statement of profit
& loss.
The Company follows a simplified approach for recognition of impairment loss allowance on trade receivables. The application of a
simplified approach does not require the company to track changes in credit risk. Rather, it recognizes impairment loss allowance based
on lifetime ECLs at each reporting date, right from its initial recognition.
All financial liabilities are recognized initially at fair value. The Company's financial liabilities include trade payables and other payables.
After initial recognition, financial liabilities are subsequently measured either at amortized cost using the effective interest rate (EIR)
method, or at fair value through profit or loss.
Gains and losses are recognized in the statement of profit and loss when the liabilities are derecognized as well as through the EIR
amortization process. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that
are an integral part of the EIR. The EIR amortization is included as finance costs in the statement of profit and loss.
Loans and borrowings
After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized cost using the EIR method.
Gains and losses are recognized in profit or loss when the liabilities are de-recognised as well as through the EIR amortization process.
Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part
of the EIR. The EIR amortization is included as finance costs in the statement of profit and loss. This category generally applies to
borrowings.
2.8 Revenue Recognition
Revenue from contracts with customers is recognized when control of the services are transferred to the customer at an amount that
reflects the consideration to which the Company expects to be entitled in exchange for those services. Revenue is recognized to the
extent that it is probable that economic benefits will flow to the Company and revenue can be reliably measured. Revenue is measured
at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding
taxes and duty.
Ind AS 115 was issued on March 28, 2018, and establishes a five-step model to account for revenue arising from contracts with customers
Under Ind AS 115, revenue is recognized at an amount that reflects the consideration to which an entity expects to be entitled in exchange
for transferring goods or services to a customer. The Company has adopted the new standard on the transition date using the full
retrospective method.
A. Income from services
i) Commission income earned from Travel Services (Sale of Bus Ticket, Hotel and Flight Bookings)
Commission income by providing travel services is recognized on the basis of value of the commission earned on the bus tickets, hotels
and flights booked by agent through Company's Web site. Gross commission earned on the sale of such tickets, Hotel, Train and Flight
bookings on accrual basis have been booked as income of the Company & Corresponding share of Dealer Company has been shown as
expenses.
ii) Commission income earned from the Fintech Services (Domestic Money transfers, AEPS Withdrawal, Micro ATM Withdrawal and Bill
Payment)
Commission income by providing Fintech Services is recognized on the basis of value of the commission earned on the transaction done by agent related
to Domestic Money transfers, AEPS Withdrawal, Micro ATM Withdrawal and Bill Payment through Company's Web site. Gross commission earned on
Domestic Money transfers, AEPS Withdrawal, Micro ATM Withdrawal and Bill Payment have been booked as income of the Company & Corresponding
share of Banks/ Dealer company's has been shown as expenses.
iii) Train Tickets booking and Railway ID Renewal:
Income from Train Ticket Booking
Income from Train Ticket Booking is recognized on the basis of value of the service charges earned on the tickets booked by agent
through Company's Web site. Gross service charges earned on the sale of such tickets on accrual basis have been booked as income
of the Company & Corresponding distributors share is shown as expenses.
Income from Railway ID Renewal:
Income from Railway ID Renewal is annual maintenance charges collected from agent by the company which has been recognized in
the books on receipt basis.
iv) Mobile Recharge sales
Income from mobile recharges has been booked on the basis of gross value of mobile recharges as and when the agent make the mobile
recharges through company's website.
v) Sale of AEPS and Micro ATM devices
Revenue from sale AEPS and Micro ATM devices is recognized when control of the goods sold, which coincides with the delivery, is
transferred to the customer and it is reasonable to expect ultimate collection.
vi) Income from tour Operation
Revenue from tour Operation including ancillary services is recognized as and when the tour is completed and consideration for
transaction measurable and receivable.
vii) Interest Income
Interest income is recognized on a time proportionate basis taking into account the amount outstanding and the applicable effective
interest rate. Interest income is included under the head "Interest Income” in the statement of profit & loss.
viii) Dividends
Dividends income is recognized when the company's receives the dividend. Profit on Sale of Investment is calculated on Selling Price less
the Cost of Acquisition for the Investment.
ix) Insurance Claim
Insurance claims are recognized as income when there is reasonable certainty regarding the ultimate collection of the amount. In cases
where such certainty arises only upon receipt of the claim amount, income is recognized on a receipt basis. The claims are presented
under "Other Income” in the Statement of Profit and Loss.
x) Other services:
Revenue from other services such as selling of franchisee services are recognized as when the consideration is received.
Contract balances
Contract assets
A contract asset is a right to consideration in exchange for goods or services transferred to the customer. If the Company performs
by transferring goods or services to a customer before the customer pays consideration or before payment is due, a contract asset is
recognized for the earned consideration that is conditional.
Trade Receivables
A receivable represents the Company's right to an amount of consideration that is unconditional (i.e., only the passage of time is required
before payment of the consideration is due).
Contract liabilities
A contract liability is an obligation to transfer goods or services to a customer for which the Company has received consideration (or an
amount of consideration is due) from the customer. If a customer pays consideration before the Company transfers goods or services to
the customer, a contract liability is recognized when the payment is made, or the payment is due (whichever is earlier). Contract liabilities
are recognized as revenue when the Company performs under the contract.
Non- cash Consideration
Ind AS 115 requires that the fair value of such non-cash consideration, received or expected to be received by the customer, is included in
the transaction price. The Company measures the non-cash consideration at fair value. If the Company cannot reasonably estimate the
fair value of the non-cash consideration, the Company measures the consideration indirectly by reference to the standalone selling price
of the goods or services promised to the customer in exchange for the consideration.
Interest income
For all debt instruments measured at amortized cost, 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 amortized cost of 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.
2.9 Inventory
Inventories comprise costs of purchase. Inventories are value at the lower of cost or net realizable value.Cost is determined based on the
First in First Out (FIFO) method.
2.10 Employee benefits (Retirement & Other Employee benefits)
Retirement benefit in the form of a Provident Fund is a defined contribution scheme and the Company has no obligation, other than
the contribution payable to the provident fund. The Company recognizes the contribution payable to the provident fund scheme as an
expenditure when an employee renders the related service. If the contribution payable to the scheme for service received before the
balance sheet date exceeds the contribution already paid, the deficit payable to the scheme is recognized as a liability after deducting
the contribution already paid.
The Company operates a defined benefit plan for its employees, viz., gratuity. The costs of providing benefits under the plan are determined
on the basis of actuarial valuation at each year-end. The actuarial valuation is carried out using the projected unit credit method. In
accordance with local laws and regulations, all employees in India are entitled to the Gratuity plan. The said plan requires a lump-sum
payment to eligible employees (meeting the required vesting service condition) at retirement or termination of employment, based on
a pre-defined formula. The obligation towards the said benefits is recognized in the balance sheet, at the present value of the defined
benefit obligations less the fair value of plan assets (being the funded portion). The present value of the said obligation is determined by
discounting the estimated future cash outflows, using interest rates of government bonds. The interest income / (expense) is calculated
by applying the above-mentioned discount rate to the plan assets and defined benefit obligations liability. The net interest income /
(expense) on the net defined benefit liability is recognized in the statement of profit and loss. However, the related re-measurements
of the net defined benefit liability are recognized directly in the other comprehensive income in the year in which they arise. The said
re-measurements comprise of actuarial gains and losses (arising from experience adjustments and changes in actuarial assumptions),
and the return on plan assets (excluding interest). Re-measurements are not re-classified to the statement of profit and loss in any of the
subsequent years.
2.11 Income taxes
The income tax expense comprises current and deferred income tax. Income tax is recognized in the statement of profit and loss, except
to the extent that it relates to items recognized in the other comprehensive income or directly in equity, in which case the related income
tax is also recognized accordingly.
a. Current tax
The current tax is calculated on the basis of the tax rates, laws and regulations, which have been enacted or substantively enacted as
of the reporting date. The payment made in excess / (shortfall) of the Company's income tax obligation for the year is recognized in the
balance sheet as current income tax assets/liabilities. Any interest, related to accrued liabilities for potential tax assessments are not
included in Income tax charges or (credit), but are rather recognized within finance costs.
Current income tax assets and liabilities are set off against each other and the resultant net amount is presented in the balance sheet,
if and only when, (a) the Company currently has a legally enforceable right to set off the current income tax assets and liabilities, and
(b) when it relates to income tax levied by the same taxation authority and where there is an intention to settle the current income tax
balances on a net basis.
b. Deferred tax
Deferred tax is recognized, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and
their carrying values in the financial statements.
Deferred tax assets are recognized only to the extent that it is probable that future taxable profit will be available against which the
temporary differences can be utilized.
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 utilized. Unrecognized deferred tax assets are
re-assessed at each reporting date and are recognized 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 realized or the
liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.
2.12 Earnings per share
Basic earnings per share are calculated by dividing the 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 events such as bonus issue, bonus element in a rights issue, share split, and reverse share split (consolidation of shares)
that have changed the number of equity shares outstanding, without a corresponding change in resources.
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 dilutive potential equity shares.
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