MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
The following discussion is intended to convey the managements perspective on our financial condition and results of operations for Fiscals 2021, 2022, 2023 and the six months ended September 30, 2023. Unless otherwise stated, the financial information in this section has been derived from the Restated Consolidated Financial Information. For further information, see "Financial Statements" on page 296.
Our Companys Fiscal commences on April 1 and ends on March 31 of the immediately subsequent year, and references to a particular Fiscal are to the 12 months ended March 31 of that year. References to "H1FY24" in this section are to the six months ended September 30, 2023.
Unless the context otherwise requires, in this section, references to "we", "us", or "our" or "Group" refers to ONE MOBIKWIK SYSTEMS LIMITED on a consolidated basis and references to "the Company" or "our Company" refers to ONE MOBIKWIK SYSTEMS LIMITED on a standalone basis.
Till the financial year ended March 31, 2022, we had three reportable segments under Ind AS 108, namely (a) consumer payments, (b) digital financial services (previously known as BNPL), and (c) payment gateway. The performance of each of these segments was evaluated based on segment revenue, segment results and adjusted EBITDA. During the financial year ended March 31, 2023, we reassessed the basis of segment reporting and concluded that though there are different business units of the Group, including financial services and, payment services, review of financial information was conducted at an overall level and the Group does not allocate revenue from operations, operating costs and expenses, assets and liabilities across the units. Allocation of resources and assessment of financial performance is done at the consolidated level. Accordingly, we assessed that the Group operates only in a single operating segment. For further information, "Financial Inforamtion - Restated Consoldiated Financial Inforamtion Note 32: Operating Segments" on page 359.
Unless otherwise indicated, industry and market data used in this section has been derived from the report "Deep dive into India Fintech Market" dated January 2, 2024 (the "RedSeer Report") prepared and issued by Redseer Strategy Consultants Private Limited, which has been commissioned and paid for by us as well as exclusively prepared for the purposes of the Issue. RedSeer was appointed by our Company through an engagement letter dated December 4, 2023. For the disclaimers associated with the RedSeer Report, see "Certain Conventions, Use of Financial Information and Market Data and Currency of Presentation Disclaimer of RedSeer" on page 22. The RedSeer Report is available on the website of our Company at www.mobikwik.com/ir.
All figures in the charts in this section have been rounded up and expressed in whole numbers.
Overview
Please see "Our Business - Overview" on page 190.
Financial Overview
In the six months ended September 30, 2023, we delivered a total income of 3,873.73 million, EBITDA of 205.39 million and profit for the period of 94.78 million. Our profitability is the result of our products, which have significant operating margins and have grown in scale, while we have managed to keep our fixed costs (such as employee benefits expenses and business promotion expenses) in check. This growth is primarily an outcome of our focused business strategy (as outlined in "Our Business Overview" on page 190). Our managements key focus is to build a high growth and profitable business to capitalise on the substantial market opportunity in financial services (as outlined in "Our Business Market Opportunity" on page 193).
We track our business performance through a set of financial and operational KPIs. Our operational KPIs are detailed below.
OPERATIONAL KEY PERFORMANCE | As of and for the Financial Year ended 31st March |
Half Year ended 30th Sep | |||
Unit | |||||
INDICATORS | 2021 | 2022 | 2023 | H1 - 2024 | |
Platform Spend GMV | Mn. | 1,48,303.37 | 2,36,321.97 | 2,62,350.26 | 1,74,319.66 |
Payment GMV | Mn. | 1,18,345.95 | 1,79,473.88 | 2,07,250.06 | 1,41,435.47 |
Payment Gateway GMV | Mn. | 27,974.18 | 43,362.35 | 14,072.10 | 5,288.63 |
MobiKwik ZIP GMV (Disbursements) | Mn. | 1,983.24 | 13,485.74 | 41,028.10 | 27,595.56 |
ZIP EMI GMV (Disbursements) | Mn. | 1,016.19 | 1,636.42 | 10,121.73 | 13,567.84 |
Registered Users | Mn. | 101.37 | 123.56 | 139.89 | 146.94 |
New Registered Users | Mn. | 18.44 | 22.19 | 16.33 | 7.05 |
Customer Acquisition Cost | Rs. | 13.02 | 17.53 | 20.30 | 31.29 |
Activated - MobiKwik Zip Users | Mn. | 0.53 | 2.44 | 4.07 | 4.78 |
Activated - Zip EMI Users | Mn. | 0.21 | 0.28 | 0.54 | 0.78 |
Repeat MobiKwik Zip Users | % | 79.19% | 82.89% | 90.35% | 93.00% |
Credit - Partner AUM | Mn. | 1,508.26 | 1,768.17 | 7,184.89 | 16,897.43 |
Wealth - AUA | Mn. | 58.22 | 3,236.84 | 8,169.98 | 28,858.88 |
Our total income comprising primarily of revenue from payment services and revenue from financial services has grown at a CAGR of 36.25% from Fiscal 2021 to Fiscal 2023. Our total income was 3,022.56 million in the Fiscal 2021, 5,432.19 million in Fiscal 2022, 5,611.16 million in Fiscal 2023 and 3,873.73 million in the six months ended September 30, 2023
Key Factors affecting our Financial Condition and Results of Operations
Our financial condition and results of operations are affected by numerous factors and uncertainties, including those discussed in the section titled "Risk Factors" beginning on page 33. For further information on our critical accounting policies and significant accounting judgements, estimates and assumptions, see "- Summary of Material Accounting Policies" on 400. The chart below provides an overview of revenue and cost drivers for each of our businesses:
Payments Services Business
Key factors affecting our payments services business include the following:
A large base of users
We had 139.89 million Registered Users on our platform, as of March 31, 2023 which grew to 146.94 million Registered Users as of September 30, 2023. The relatively high proportion of users acquired organically has helped us keep our CAC low, which amounted to 17.53 per New Registered User in Fiscal 2022, 20.30 per New Registered User in Fiscal 2023 and 31.29 (not annualized) per New Registered User in the six months ended September 30, 2023. The marginal increase in CAC over these periods is primarily as a result in decrease in new Registered Users on our MobiKwik platform in these years, reflecting our focus on driving existing consumers and users from our payment services business to our financial services business.
Platform Spend GMV and Merchant Fee
GMV on our platform (Platform Spend GMV) is largely driven by our user base, merchant network and brand awareness, subject to seasonal fluctuations. Further our MobiKwik ZIP product boosts our payments services business as users spend on our payments platform through MobiKwik ZIP. We earn revenue in the form of merchant fees when users pay merchants to buy goods or services. The merchant fee is charged depending upon the category of the merchant.
Financial Services Revenue Drivers
Our financial services business consists of the following two key products: MobiKwik ZIP and ZIP EMI.
MobiKwik ZIP
Key factors affecting our MobiKwik ZIP business include the following:
Large base of pre-approved users and increase in user spends
As of September 30, 2023, we had 30.29 million Pre-approved Users for MobiKwik ZIP out of which 4.78 million were Activated MobiKwik ZIP Users. The number of Activated MobiKwik ZIP Users has grown from 0.53 million as on March 31, 2021 to 4.07 million as of March 31, 2023. Further, the MobiKwik ZIP
GMV (Disbursements) per user per month has increased from 2,477.90 in Fiscal 2021 to 6,687.40 in the six months ended September 30, 2023.
High Repeat Rate
Repeat MobiKwik ZIP Users was at a high of 79.19% in Fiscal 2021 and 82.89% in Fiscal 2022, which further increased to 90.35% in Fiscal 2023 although the Activated MobiKwik ZIP Users grew multifold. In the six months ended September 30, 2023 Repeat MobiKwik ZIP Users further improved to 93.00%.
MobiKwik ZIP Gross Merchandise Value (Disbursements)
MobiKwik ZIP GMV (Disbursements) has risen by approximately 20.69 times to 41,028.10 million in Fiscal 2023 from 1,983.24 million in Fiscal 2021. MobiKwik ZIP GMV (Disbursements) amounted to 1,983.24 million in Fiscal 2021, 13,485.74 million in Fiscal 2022, 41,028.10 million in Fiscal 2023 and
27,595.56 million in the six months ended September 30, 2023. Further, the average ticket size of this product has also increased, as reflected in the growth of MobiKwik ZIP GMV (Disbursements) per user per month, which increased from 2,477.90 in Fiscal 2021 to 3,349.35 in Fiscal 2022 to 6,333.52 in Fiscal 2023 to 6,687.40 in the six months ended September 30, 2023. Strategically as well, there has been a concerted effort to drive growth in this product.
MobiKwik ZIP Revenue Drivers
MobiKwik ZIP is primarily a spend-driven product since it is offered as a credit product that funds purchases of goods/ services by users of our payment services business. Revenue from MobiKwik ZIP is earned primarily through (i) merchant fees earned on the MobiKwik ZIP GMV (Disbursements); (ii) a one-time activation fee for new users; and (iii) late payment fees. Revenue trends for MobiKwik ZIP have broadly mirrored the underlying MobiKwik ZIP GMV (Disbursements).
ZIP EMI
Key factors affecting our ZIP EMI business include the following:
Large Base of Users
ZIP EMI users primarily comprise consumers on our platform who have already availed of our MobiKwik ZIP product, to whom we upsell our ZIP EMI product after assessing their transaction history and modelling their MobiKwik ZIP credit behaviour. As of September 30, 2023, we had 4.78 million Activated MobiKwik ZIP Users, of which 93% were Repeat MobiKwik ZIP Users, thereby forming a large source for potential ZIP EMI users. As of September 30, 2023, we had 0.78 million Activated ZIP EMI Users.
ZIP EMI Gross Merchandise Value (Disbursements)
ZIP EMI GMV (Disbursements) has risen by approximately 9.96 times to 10,121.73 million in the Fiscal 2023 from 1,016.19 million Fiscal 2021. ZIP EMI GMV (Disbursements) amounted to 1,016.19 million Fiscal 2021, 1,636.42 million in Fiscal 2022, 10,121.73 million in the Fiscal 2023 and 13,567.84 million in the six months ended September 30, 2023. Similar to MobiKwik ZIP, there has been a strategic effort to drive growth in this product.
ZIP EMI Revenue Drivers
Revenue from our ZIP EMI product are primarily earned through sourcing and collection fees from our lending partners for providing various services to them in connection with the loans disbursed by our lending partners, typically as a percentage on the loan amounts disbursed to our consumers. Revenues from ZIP EMI has grown significantly over the last three years in line with the increase in ZIP EMI GMV (Disbursements).
Key revenue drivers for our ZIP EMI product are:
- Sourcing and collection fees: Sourcing and collection fee are charged to lending partners as recovered from users, generally as a percentage of amounts disbursed by the lending partners as loans.
- Processing fees: Processing fees are charged upfront to lending partners towards approving and getting loans disbursed, typically as a percentage of the amounts disbursed.
Key Cost Drivers for our businesses
Key cost drivers in our businesses primarily include the following:
a. Payment gateway cost This refers to the costs incurred by us to the payment gateway processors or acquiring banks. Payment gateway costs have broadly moved in line with movement in Payments GMV over the last three Fiscals and the six months ended September 30, 2023, with the exception of Fiscal 2023. During Fiscal 2023, the share of transactions from lower revenue generating modes increased significantly, consequently reducing our payment gateway costs and also the revenue for our payment services business. Payment gateway costs have remained largely stable as a percentage of payment services revenue. a. User Incentives Expenses Includes all our user incentives including cashbacks, discounts and
Supercash, our loyalty programme. User incentive expenses increased from 563.03 million in Fiscal 2021 to 656.94 million in Fiscal 2022 due to strategic increases in promotional activity, and thereafter, declined to 514.19 million in Fiscal 2023 on account of increased focus in monetizing our existing consumer base, leading to streamlining of our promotional strategies and campaigns, which resulted in reduced incentive outlays. The user incentive expenses as a percentage of total income has come down significantly from 18.63% in Fiscal 2021 to 9.16% in Fiscal 2023. During the six months ended
September 30, 2023 the user incentive expenses was 238.50 million which was 6.16% of total income during this period. b. Lending operational expenses Lending operational expenses comprise of the cost of capital borne by us for our MobiKwik ZIP that provides an interest-free credit limit (upto 30 days) from our lending partners for our consumers to use to pay to any MobiKwik onboarded merchants. Since MobiKwik ZIP is interest-free for our consumers, the cost of capital accrues on account of interest subvention, meaning that we pay the interest component on the credit extended by our lending partners to our consumers.
For our ZIP EMI product, lending operational expenses also includes other fees, such as facilitation fee and technology fees for our usage of our lending partners platforms to disburse loans to our consumers.
Lending operational expenses have significantly increased in Fiscals 2021, 2022, 2023 and the six months ended September 30, 2023 in line with the increase of MobiKwik ZIP GMV (Disbursements) and ZIP EMI GMV (Disbursements).
c. Financial Guarantee Expenses: Financial guarantee expenses are credit expenses borne under the credit portfolios created for our lending partners prior to the change in the regime for digital lending through the Digital Lending Guidelines in Fiscal 2023. During the course of Fiscal 2023, the RBI disallowed lending service providers from providing financial guarantees to lending partners. Accordingly, we stopped providing any new financial guarantees. As a result, financial guarantee expenses decreased thereafter in Fiscal 2023 since they pertained to older and pre-existing loan portfolios which were decreasing with time and repayments. With the RBI now allowing the provision of DLGs of upto 5% through the DLG Guidelines, we expect financial guarantee expenses to continue to be a part of our financial statements.
Margin Profile
In the last three Fiscals and six months ending September 30, 2023, both our Gross Margin Payment Services (%) and Gross Margin Financial Services (%) have improved significantly. While payment gateway cost and user incentives have decreased or sustained at similar levels, lending operational expenses and financial guarantee expenses have reduced (as % of revenue from financial services). This has resulted in growth of Overall Contribution Margin at the consolidated level.
Payment Services Gross Margin
Our Gross Margin Payments Services (%) has improved from 9.31% in Fiscal 2021 to 21.65% in the six months ended September 30, 2023.
Financial Services Gross Margin
Our Gross Margin - Financial Services (%) has improved significantly from (8.79)% in Fiscal 2021 to 45.06% in the six months ended September 30, 2023, as disbursements from our lending partners have scaled.
Our Contribution Margin for the last three Fiscals and six months ended September 30, 2023
Our Contribution Margin for our businesses (in aggregate) is set forth below.
Contribution Margin Build Up
Summarised below is the build-up of our Contribution Margin and its evolution from Fiscal 2021 to the six months ended September 30, 2023.
Fixed Costs
Fixed costs is primarily composed of Employee benefit expenses, which we have been able to keep in check, while scaling revenues. This is displayed below as employee benefits expenses as a percentage of total income was 17.55% in Fiscal 2021, 19.74% in Fiscal 2022, 17.51% in Fiscal 2023 and 13.34% in the six months ended September 30, 2023. The employee benefit expense during Fiscals 2021, 2022, 2023 and the six months ended September 30, 2023 was 530.31 million, 1,072.46 million, 982.25 million and 516.63 million, respectively.
Our EBITDA margin as % of Total Income has improved significantly from (33.68%) in Fiscal 2021 to (21.24%) in Fiscal 2022 to (9.97%) in Fiscal 2023 to 5.30% in the six months ended September 30, 2023. Our EBITDA was (1,018.14) million in Fiscal 2021, (1,154.06) million in Fiscal 2022, (559.20) million in Fiscal 2023 and
205.39 million in the six months ended September 30, 2023. For reconciliation of EBITDA and EBITDA
Margin, see " Non-GAAP Measures Reconciliation of EBITDA and EBITDA Margin to Profit/ (Loss) for the Year/ period" on page 383.
We have been able to turn profitable by achieving profit for the period in the six months ended September 30, 2023 of 94.78 million. Our profit as a percent of total income has improved significantly from (36.82 %) in Fiscal 2021 to (23.59%) in Fiscal 2022 to (14.94%) in Fiscal 2023 to 2.45% in the six months ended September 30, 2023. Our losses were 1,113.00 million in Fiscal 2021, 1,281.62 million in Fiscal 2022, 838.14 million in Fiscal 2023.
Principal Components of Income and Expenditure
Income
Our total income include revenue from operations and other income.
Revenue from Operations
Revenue from operations comprises the following:
Revenue from financial services: Revenue from financial services includes revenues from MobiKwik ZIP, ZIP EMI and other credit products as well as revenue from wealthtech and fintech products, platform services specifically designed to drive credit business and amounts received from online promotions on such platforms.
MobiKwik ZIP primarily generates revenue in the form of (a) merchant fee collected from a merchant when a user pays with MobiKwik Zip on a merchant platform; (b) one time MobiKwik Zip activation fee collected from a user; and (c) late fees collected from those users who repay their MobiKwik Zip due amount after the due date.
ZIP EMI primarily generates revenue in the form of sourcing and collection fees from our lending partners for providing various services to them in connection with the loans disbursed by our lending partners, typically as a percentage on the loan amounts disbursed to our consumers.
Revenue from payment services: Revenue from payment services includes merchant fee collected from a merchant when a user purchases goods or services on a merchant platform and pays via the MobiKwik Wallet. Further, it also includes convenience fees collected from users under certain categories of services.
Other Income
Other income primarily include interest income from financial assets at amortised cost and write-back of provisions / liabilities no longer required.
Expenses
Our expenses primarily include lending operational expenses, payment gateway cost, employee benefits expense, financial guarantee expenses and other expenses.
Payment Gateway costs
Payment gateway costs are expenses comprises amounts paid by us to online payment gateways for facilitating online payments by our consumers on the MobiKwik app, typically as a percentage of the transaction amount.
Lending operational expenses
Lending operational expenses comprise of the cost of capital borne by us for our MobiKwik ZIP that provides an interest-free credit limit (upto 30 days) from our lending partners for our consumers to use to pay to any MobiKwik onboarded merchants. Since MobiKwik ZIP is interest-free for our consumers, the cost of capital accrues on account of interest subvention, meaning that we pay the interest component on the credit extended by our lending partners to our consumers. For our ZIP EMI product, lending operational expenses also includes other fees, such as facilitation fee and technology fees for our usage of our lending partners platforms to disburse loans to our consumers.
Financial Guarantee Expenses
Financial guarantee expenses are credit expenses borne under the credit portfolios created for our lending partner prior to the change in the regime for digital lending through the Digital Lending Guidelines in Fiscal 2023. With the RBI now allowing the provision of DLGs of upto 5% through the DLG Guidelines, we expect financial guarantee expenses to continue to be a part of our financial statements.
Employee Benefits Expenses
Employee benefits expenses comrpise (i) salaries, allowances, and bonus; (ii) gratuity expense; (iii) leave encashment expense; (iv) contribution to provident and other funds; (v) employee stock options expense equity settled; and (vi) staff welfare expenses.
Finance Costs
Finance costs primarily comprise of: (i) interst expense on financial liabilities mentioned at amortised cost; (ii) interest expenses on delayed payment of statutory dues, and (iii) others.
Depreciation and Amortisation Expenses
Depreciation and amortization expenses primarily include depreciation of computer hardware and our Companys lease of office space.
Other Expenses
Other expenses primarily include (i) business promotion expenses, (ii) outsource service costs; (iii) server and related costs. For further information, see "Financial Information - Restated Consoldiated Financial Information
Note 24: Other Expenses" on page 345.
Non-GAAP Measures
Earnings before finance cost, Taxes, Depreciation and Amortization Expenses ("EBITDA")/ EBITDA
Margin
EBITDA and EBITDA Margin presented in this Draft Red Herring Prospectus is a supplemental measure of our performance and liquidity that is not required by Ind AS, Indian GAAP, IFRS or US GAAP. Further, EBITDA and EBITDA Margin is not a measurement of our financial performance or liquidity under Ind AS, Indian GAAP, IFRS or US GAAP and should not be considered in isolation or construed as an alternative to cash flows, profit/ (loss) for the years/ periods or any other measure of financial performance or as an indicator of our operating performance, liquidity, profitability or cash flows generated by operating, investing or financing activities derived in accordance with Ind AS, Indian GAAP, IFRS or US GAAP. In addition, EBITDA and EBITDA Margin is not a standardised term, hence a direct comparison of EBITDA and EBITDA Margin between companies may not be possible. Other companies may calculate EBITDA and EBITDA Margin differently from us, limiting its usefulness as a comparative measure. Although EBITDA and EBITDA Margin is not a measure of performance calculated in accordance with applicable accounting standards, our Companys management believes that it is useful to an investor in evaluating us because it is a widely used measure to evaluate a companys operating performance.
Reconciliation of EBITDA and EBITDA Margin to Profit/ (Loss) for the Year/ period
EBITDA is calculated as profit/ (loss) for the year/ period plus total tax expense/ (credit), finance cost and depreciation and amortization expense. EBITDA Margin is the percentage of EBITDA divided by total income.
The table below reconciles profit/ (loss) for the year/period to EBITDA and EBITDA Margin.
Particulars | Fiscal | For the six | ||
2021 | 2022 | 2023 | months ended September 30, 2023 | |
Profit/ (Loss) for the year/ period (A) | (1,113.00) | (1,281.62) | (838.14) | 94.78 |
Total Tax expense/ (credit) (B) | 10.37 | (2.56) | 31.88 | 0.55 |
Profit/ (Loss) before tax for the year/ period (C=A+B) | (1,102.63) | (1,284.18) | (806.26) | 95.33 |
Adjustments: | ||||
Add: Finance Costs (D) | 71.35 | 109.13 | 204.24 | 90.38 |
Add: Depreciation and Amortization (E) | 13.14 | 20.99 | 42.82 | 19.68 |
Earnings before finance cost, taxes, depreciation and | (1,018.14) | (1,154.06) | (559.20) | 205.39 |
amortization expenses (EBITDA) (F= C+D+E) | ||||
Total Income (G) | 3,022.56 | 5,432.19 | 5,611.16 | 3,873.73 |
EBITDA Margin (F/G%) | (33.68) | (21.24) | (9.97) | 5.30 |
Reconciliation of Net Asset Value (per equity share)
Particulars | Fiscal | For the six | ||
2021 | 2022 | 2023 | months ended | |
September 30, | ||||
2023 | ||||
( million, except percentages) |
||||
Equity share capital (I) | 10.05 | 114.38 | 114.38 | 114.38 |
Instruments entirely equity in nature (II) | 144.27 | - | - | - |
Other equity (III) | (354.45) | 2,051.04 | 1,312.56 | 1,419.46 |
Total Equity (IV) = (I + II + III) | (200.13) | 2,165.42 | 1,426.94 | 1,533.84 |
Other Comprehensive Income (V) | - | 2.67 | 8.51 | 8.51 |
Net Worth (VI) = (IV - V) | (200.13) | 2,162.75 | 1,418.43 | 1,525.33 |
No of Equity Share # (VII) | 5,01,80,679 | 5,56,15,263 | 5,71,92,579 | 5,90,43,771 |
Net Asset Value (per equity share) (VIII) | (3.99) | 38.89 | 24.80 | 25.83 |
= (VI/ VII) |
# Includes cumulative compulsorily convertible preference shares on fully converted basis outstanding as at the end of the year / period and adjusted for the impact of stock split and bonus issue after the end of the year March 31, 2021, but before the date of filing of the Draft Red Herring Prospectus.
Reconciliation of Return on Net Worth
Particulars | Fiscal | For the six | ||
2021 | 2022 | 2023 | months ended | |
September 30, | ||||
2023 | ||||
( million, except percentages) |
||||
Equity share capital (I) | 10.05 | 114.38 | 114.38 | 114.38 |
Instruments entirely equity in nature (II) | 144.27 | - | - | - |
Other equity (III) | (354.45) | 2,051.04 | 1,312.56 | 1,419.46 |
Total Equity (IV) = (I + II + III) | (200.13) | 2,165.42 | 1,426.94 | 1,533.84 |
Other Comprehensive Income (V) | - | 2.67 | 8.51 | 8.51 |
Net Worth (VI) = (IV - V) | (200.13) | 2,162.75 | 1,418.43 | 1,525.33 |
Particulars | Fiscal | For the six | ||
2021 | 2022 | 2023 | months ended September 30, 2023 | |
( million, except percentages) |
||||
Restated Profit/ (loss) for the year/period (V) | (1,113.00) | (1,281.62) | (838.14) | 94.78 |
Return on net worth (VI) = (V / (IV)) | (556.13%) | (59.26%) | (59.09%) | 6.21% |
Results of Operations
For Fiscal 2021, Fiscal 2022 and Fiscal 2023 and Six Month Ended September, 2023
(in million)
Particulars | Fiscal 2021 |
Fiscal 2022 | Fiscal 2023 | Six months ended September 30, 2023 |
Revenue from operations | 2,885.71 | 5,265.65 | 5,394.67 | 3,810.88 |
Other income | 136.85 | 166.54 | 216.49 | 62.85 |
Total Income | 3,022.56 | 5,432.19 | 5,611.16 | 3,873.73 |
Payment gateway cost | 1,511.60 | 2,276.75 | 1,566.52 | 835.99 |
Lending operational expenses | 67.04 | 176.07 | 685.04 | 1,026.93 |
Financial guarantee expenses | 583.67 | 907.69 | 1,095.93 | 313.46 |
Employee benefits expense | 530.31 | 1,072.46 | 982.25 | 516.63 |
Other expenses | 1,348.08 | 2,153.28 | 1,840.62 | 975.33 |
Total expenses | 4,040.70 | 6,586.25 | 6,170.36 | 3,668.34 |
Finance costs | 71.35 | 109.13 | 204.24 | 90.38 |
Depreciation and amortisation | 13.14 | 20.99 | 42.82 | 19.68 |
expense | ||||
Profit / (Loss) before tax | (1,102.63) | (1,284.18) | (806.26) | 95.33 |
Current tax | 2.89 | 2.16 | 0.73 | 0.55 |
Deferred tax | 7.48 | (4.72) | 31.15 | - |
Total tax expense/ (credit) | 10.37 | (2.56) | 31.88 | 0.55 |
Profit / (Loss) for the period / year | (1,113.00) | (1,281.62) | (838.14) | 94.78 |
Earnings before finance costs, tax, depreciation and amortisation (EBITDA) | ( 1,018.14) | (1,154.06) | (559.20) | 205.39 |
Remeasurement of net defined benefit liability | 3.02 | 13.24 | (1.42) | 0.83 |
Fair value charges on equity | - | 2.67 | 5.84 | - |
instruments through OCI | ||||
Income tax relating to above item | - | - | - | - |
Other comprehensive income for the period / year | 3.02 | 15.91 | 4.42 | 0.83 |
Total comprehensive income for the period / year | (1,109.97) | (1,265.71) | (833.72) | 95.61 |
For Fiscal 2021, Fiscal 2022 and Fiscal 2023 and Six Month Ended September, 2023 (as a % of total income)
Particulars | Fiscal 2021 | Fiscal 2022 | Fiscal 2023 | Six months ended September 30, 2023 |
Percentage of Total Income | Percentage of Total Income | Percentage of Total Income | Percentage of Total Income | |
(%) | (%) | (%) | (%) | |
Revenue from operations | 95.47 | 96.93 | 96.14 | 98.38 |
Other income | 4.53 | 3.07 | 3.85 | 1.62 |
Total Income | 100.00 | 100.00 | 100.00 | 100.00 |
Payment gateway cost | 50.01 | 41.91 | 27.92 | 21.58 |
Lending operational expenses | 2.22 | 3.24 | 12.21 | 26.51 |
Financial guarantee expenses | 19.31 | 16.71 | 19.53 | 8.09 |
Particulars | Fiscal 2021 | Fiscal 2022 | Fiscal 2023 | Six months ended September 30, 2023 |
Percentage of Total Income | Percentage of Total Income | Percentage of Total Income | Percentage of Total Income | |
(%) | (%) | (%) | (%) | |
Employee benefits expense | 17.55 | 19.74 | 17.51 | 13.34 |
Other expenses | 44.60 | 39.64 | 32.80 | 25.18 |
Total expenses | 133.68 | 121.24 | 109.97 | 94.70 |
Finance costs | 2.36 | 2.01 | 3.64 | 2.33 |
Depreciation and amortisation | 0.43 | 0.39 | 0.76 | 0.51 |
expense | ||||
Profit / (Loss) before tax | (36.48) | (23.64) | (14.37) | 2.46 |
Current tax | 0.10 | 0.04 | 0.01 | 0.01 |
Deferred tax | 0.25 | 0.09 | 0.56 | - |
Total tax expense/ (credit) | 0.34 | (0.05) | 0.57 | 0.01 |
Profit / (Loss) for the period / year | (36.82) | (23.59) | (14.94) | 2.45 |
Earnings before finance costs, tax, depreciation and amortisation (EBITDA) | (33.68) | (21.24) | (9.97) | 5.30 |
Remeasurement of net defined benefit liability | 0.10 | 0.24 | (0.03) | 0.02 |
Fair value charges on equity instruments through OCI | - | 0.05 | 0.10 | - |
Income tax relating to above item | - | - | - | - |
Other comprehensive income for the period / year | 0.10 | 0.29 | 0.08 | 0.02 |
Total comprehensive income for the period / year | (36.72) | (23.30) | (14.86) | 2.47 |
Six months ended September 30, 2023
Income
Total income amounted to 3,873.73 million in the six months ended September 30, 2023, comprising primarily of revenue from operations.
Revenue from Operations
Revenue from operations amounted to 3,810.88 million in the six months ended September 30, 2023.
Revenue from financial services: Revenue from financial services amounted to 2,439.53 million in the six months ended September 30, 2023, driven by MobiKwik ZIP GMV (Disbursements) and ZIP EMI GMV (Disbursements) collectively amounting to 41,163.40 million. As of September 30, 2023, the total Credit Partner
AUM for MobiKwik ZIP and ZIP EMI amounted to 16,897.43 million.
Revenue from payment services: Revenue from payment services amounted to 1,371.35 million in the six months ended September 30, 2023, driven by Payments GMV amounting to 141,434.97 million. In the six months ended
September 30, 2023, we added 7.05 million New Registered Users to our platform, which was marginally lower than the corresponding period in Fiscal 2023, primarily on account of an increase in our focus towards driving existing payment services consumers to our financial services products (such as MobiKwik ZIP).
Other Income
Other income amounted to 62.85 million in the six months ended September 30, 2023, comprising primarily of interest income from bank deposits measured at amortised cost of 58.67 million.
Expenses
Total expenses amounted to 3,668.34 million in the six months ended September 30, 2023.
Payment Gateway Cost
Payment gateway cost amounted to 835.99 million in the six months ended September 30, 2023, driven primarily by payments made by consumers on our MobiKwik platform through payment gateways or acquiring banks.
Lending operational expenses
Lending operational expenses for the six months ended September 30, 2023 amounted to 1,026.93 million, driven primarily by expenses such as technology fees and facilitation fees paid to our lending partners who disbursed loans through our MobiKwik ZIP and ZIP EMI products.
Financial guarantee expenses
Financial guarantee expenses for the six months ended September 30, 2023 amounted to 313.46 million, driven primarily by guarantees given by us to our lending partners to cover losses from loans extended by them to our consumers through the MobiKwik ZIP and ZIP EMI products.
Employee Benefits Expenses
Employee benefits expenses amounted to 516.63 million in the six months ended September 30, 2023, driven primarily by salaries, allowance and bonus amounting to 483.93 million.
Other Expenses
Other expenses increased amounted to 975.33 million, driven primarily by the following:
Business promotion expenses amounting to 459.07 million, primarily due to consumer incentives granted to drive Payments GMV.
Outsource service cost amounting to 138.39 million due to engagement with third party collection agencies for provision of loan collection services for our lending partners.
Server and related cost amounting to 84.15 million due to maintenance of cloud servers and technology infrastructure.
Earnings before Finance Costs, Taxes, Depreciation and Amortisation (EBITDA)
For the various reasons discussed above, EBITDA amounted to 205.39 million in the six months ended September 30, 2023, while EBITDA Margin (EBITDA as a percentage of our total income) was 5.30% in the six months ended September 30, 2023. For reconciliation of EBITDA and EBITDA Margin, see " Non-GAAP Measures Reconciliation of EBITDA and EBITDA Margin to Profit/ (Loss) for the Year/ period" on page 383.
Finance Costs
Finance costs amounted to 90.38 million in the six months ended September 30, 2023, primarily driven by interest expense on overdraft measured at amortised cost amounting to 40.42 million and interest expense on non-convertible debentures measured at amortised cost amounting to 34.01 million.
Depreciation and Amortisation Expenses
Depreciation and amortisation expenses amounted to 19.68 million, driven primarily by depreciation on right of use of assets, which primarily related to office space.
Tax Expense
Tax expense amounted to 0.55 million in the six months ended September 30, 2023, comprising expenses in relation to current tax.
Profit for the Period
For the various reasons discussed above, profit in the six months ended September 30, 2023 amounted to 94.78 million.
Fiscal 2023 compared to Fiscal 2022
Income
Total income increased by 3.29% from 5,432.19 million in Fiscal 2022 to 5,611.16 million in Fiscal 2023 primarily on account of an increase in revenue from operations.
Revenue from Operations
Revenues from operations increased by 2.45% from 5,265.65 million in Fiscal 2022 to 5,394.67 million in Fiscal 2023 primarily due to an increase in revenue from operations from financial services in Fiscal 2023, which was partially offset by a decrease in revenue from operations from payment services.
Revenue from financial services: Our revenue from operations from financial services increased by 191.86% from
976.57 million in Fiscal 2022 to 2,850.21 million in Fiscal 2023, reflecting our increased focus on distribution of financial services (primarily through our MobiKwik ZIP and ZIP EMI products) to users in our payments services business. This was manifested by:
an increase in the MobiKwik ZIP GMV (disbursements) by 204.23% from 13,485.74 million in Fiscal
2022 to 41,028.10 million in Fiscal 2023;
an increase in ZIP EMI GMV (disbursements) by 518.53% from 1,636.42 million in Fiscal 2022 to 10,121.73 million in Fiscal 2023;
an increase in MobiKwik ZIP GMV (disbursements per user per month by 89.10% from 3,349.35 in
Fiscal 2022 to 6,333.52 in Fiscal 2023;
an increase in the number of Activated MobiKwik ZIP Users and Activated ZIP EMI Users by 70.08% from 2.72 million in Fiscal 2022 to 4.61 million in Fiscal 2023;
an increase in Repeat MobiKwik ZIP Users from 82.89% in Fiscal 2022 to 90.35% in Fiscal 2023; and
an increase in the Credit Partner AUM for MobiKwik ZIP and ZIP EMI by 306% from 1,768.17 million as of March 31, 2022 to 7,184.19 million as of March 31, 2023.
Our focus on conversion of users from our payments services business to our financial services business was also reflected by the fact that while the number of Activated MobiKwik ZIP Users and Activated ZIP EMI Users increased in Fiscal 2023 from Fiscal 2022, there was lower growth in New Registered Users on our MobiKwik platform by 26.44% from 22.19 million in Fiscal 2022 to 16.33 million in Fiscal 2023. This decrease also resulted in a marginal increase in our CAC from 17.53 in Fiscal 2022 to 20.30 in Fiscal 2023.
Revenue from payment services: Our revenue from operations from payment services decreased by 40.68% from
4,289.08 million in Fiscal 2022 to 2,544.46 million in Fiscal 2023, primarily on account of modes of payments skewing towards lower payment processing cost modes, as well as the suspension of our payment gateway business in Fiscal 2023. This was also reflected in a decrease in Payment Gateway GMV by 67.55% from 43,362.35 million in Fiscal 2022 to 14,072.10 million in Fiscal 2023.
Other Income
Other income increased by 29.99% from 166.54 million in Fiscal 2022 to 216.49 million in Fiscal 2023, primarily as a result of increase in interest income from bank deposits measured at amortised cost by 33.48% from
69.32 million in Fiscal 2022 to 92.53 million in Fiscal 2023.
Expenses
Total expenses decreased by 6.31% from 6,586.25 million in Fiscal 2022 to 6,170.36 million in Fiscal 2023.
Payment Gateway Cost
Payment gateway cost decreased by 31.19% from 2,276.75 million in Fiscal 2022 to 1,566.52 million in Fiscal 2023, primarily as a result of modes of payments skewing towards lower payment processing cost modes, consequently reducing our payment gateway costs and also the revenue for our payment services business, as well as discontinuation of our payments gateway business in Fiscal 2023.
Lending operational expenses
Lending operational expenses increased by 289.07% from 176.07 million in Fiscal 2022 to 685.04 million in Fiscal 2023. This increase was in line with the increase in our MobiKwik ZIP GMV (disbursements) and ZIP EMI products, which resulted in an increase in expenses such as technology fees and facilitation fees paid to our lending partners who disbursed loans through these products.
Financial Guarantee expenses
Financial guarantee expenses increased by 20.74% from 907.69 million in Fiscal 2022 to 1,095.93 million in Fiscal 2023, primarily on account of increase in the amount of guarantees given by us to our lending partners to cover losses from loans extended by them to our consumers, in line with the increase in the MobiKwik ZIP GMV (Disbursements) and ZIP EMI GMV (Disbursements). This increase was partially offset by the reduction in financial guarantee expenses after the RBI disallowed lending service providers from giving financial guarantees during the course of Fiscal 2023 through the Digital Lending Guidelines.
Employee Benefits Expenses
Employee benefits expenses decreased by 8.41% from 1,072.46 million in Fiscal 2022 to 982.25 million in Fiscal 2023, primarily due to a decrease by 63.37% in employee stock options expenses from 260.04 million in Fiscal 2022 to 95.24 million in Fiscal 2023, on account of grant of lesser stock options in Fiscal 2023.
Other Expenses
Other expenses decreased by 14.52% from 2,153.28 million in Fiscal 2022 to 1,840.62 million in Fiscal 2023, primarily due to the following reasons:
Business promotion decreased by 19.14% from 1,045.90 million in Fiscal 2022 to 845.62 million in
Fiscal 2023 on account of reduction in user incentives granted due to streamlined promotional strategies and campaigns.
There were no provisions for loss on MobiKwik Zip product made in Fiscal 2023, as against a provision of 106.91 million in Fiscal 2022. This provision was made on account of certain suspicious transactions made by users through the MobiKwik wallet to recharge Fast Tags issued by a certain payments bank, for which criminal proceedings were filed by our Company.
There were no share issue expenses incurred in Fiscal 2023, as against share issue expenses of 61.12 million in Fiscal 2022. These were incurred in connection with our Companys earlier proposed IPO of equity shares and expensed on account of expected delays in such IPO filing.
Advertisement expenses decreased by 47.71% from 84.24 million in Fiscal 2022 to 44.05 million in Fiscal 2023 on account of optimisation of our marketing strategies.
Outsource service expenses increased by 167.19% from 105.17 million in Fiscal 2022 to 281.00 million in Fiscal 2023 on account of higher engagement with third party collection agencies for provision of loan collection services for our lending partners, in line with growth in our MobiKwik ZIP GMV (Disbursements) and ZIP EMI GMV (Disbursements).
Earnings before Finance Costs, Taxes, Depreciation and Amortisation (EBITDA)
For the various reasons discussed above, EBITDA increased from (1,154.06) million in Fiscal 2022 to (559.20) million in Fiscal 2023, while EBITDA Margin (EBITDA as a percentage of our total income) increased from (21.24)% in Fiscal 2022 to (9.97)% in Fiscal 2023. For reconciliation of EBITDA and EBITDA Margin, see " Non-GAAP Measures Reconciliation of EBITDA and EBITDA Margin to Profit/ (Loss) for the Year/ period" on page 383.
Finance Costs
Finance costs increased by 87.15% from 109.13 million in Fiscal 2022 to 204.24 million in Fiscal 2023 primarily due to:
increase in interest expense on overdraft measured at amortised cost from 67.28 million in Fiscal 2022 to 111.91 million in Fiscal 2023 on account of higher overdraft limits availed; and
increase in interest expense on non-convertible debentures measured at amortised cost from NIL in Fiscal 2022 to 51.73 million in Fiscal 2023 on account of non-convertible debentures issued in Fiscal 2023.
Depreciation and Amortisation Expenses
Depreciation and amortisation expenses increased by 104.00% from 20.99 million in Fiscal 2022 to 42.82 million in Fiscal 2023, primarily due to increase in the depreciation on right of use of assets, which primarily related to office space.
Tax Expense
We incurred total tax expenses of 31.88 million in Fiscal 2023 as opposed to a total tax credit of 2.56 million in Fiscal 2022, primarily on account of deferred tax expense amounting to 31.15 million in Fiscal 2023 as against a deferred tax credit of 4.72 million in Fiscal 2022.
Loss for the Year
For the various reasons discussed above, loss for the year decreased by 34.60% from 1,281.62 million in Fiscal
2022 to 838.14 million in Fiscal 2023.
Fiscal 2022 compared to Fiscal 2021
Income
Total income increased by 79.72% from 3,022.56 million in Fiscal 2021 to 5,432.19 million in Fiscal 2022 on account of an increase in revenue from operations.
Revenue from Operations
Revenue from operations increased by 82.47% from 2,885.71 million in Fiscal 2021 to 5,265.65 million in Fiscal 2022 as revenue from financial services as well as payment services experienced significant growth.
Revenue from financial services: Our revenue from operations from financial services increased by 63.27% from
598.13 million in Fiscal 2021 to 976.57 million in Fiscal 2022, reflecting our increased focus on distribution of financial services (primarily through our MobiKwik ZIP and ZIP EMI products) to users in our payments services business. This was manifested by:
an increase in MobiKwik ZIP GMV (Disbursements) by 579.18% from 1,983.24 million in Fiscal 2021 to 13,485.74 million in Fiscal 2022;
an increase in MobiKwik ZIP EMI GMV (Disbursements) by 61.19% from 1,016.19 million in Fiscal 2021 to 1,636.42 million in Fiscal 2022;
an increase in MobiKwik ZIP GMV (Disbursements) per user per month by 35% from 2,477.90 in
Fiscal 2021 to 3,349.35 in Fiscal 2022;
an increase in the number of Activated MobiKwik ZIP Users and Activated ZIP EMI Users by 266.49% from 0.74 million in Fiscal 2022 to 2.71 million in Fiscal 2022;
an increase in Repeat MobiKwik ZIP Users from 79.19% in Fiscal 2021 to 82.89% in Fiscal 2022; and
an increase in the Credit Partner AUM for MobiKwik ZIP and ZIP EMI by 17.23% from 1,508.26 million as of March 31, 2021 to 1,768.17 million as of March 31, 2022.
Revenue from payment services: Our revenue from operations from payment services increased by 87.49% from
2,287.58 million in Fiscal 2021 to 4,289.08 million in Fiscal 2022 primarily due to:
an increase by 51.65% of Payments GMV from 118,345.95 million in Fiscal 2021 to 179,473.88 million in Fiscal 2022; and
an increase by 55.01% of Payments Gateway GMV from 27,974.18 million in Fiscal 2021 to
43,362.35 million in Fiscal 2022.
The increase in Payments GMV and Payment Gateway GMV was primarily driven by 22.19 million New Registered Users on our platform in Fiscal 2022.
Other Income
Other income increased by 21.70% from 136.85 million in Fiscal 2021 to 166.54 million in Fiscal 2022, primarily due to an increase by 36.37% in the write-back of liabilities/ provisions no longer required from 63.48 million in Fiscal 2021 to 86.57 million in Fiscal 2022.
Expenses
Total expenses increased by 63.00% from 4,040.70 million in Fiscal 2021 to 6,586.25 million in Fiscal 2022.
Payment Gateway Cost
Payment gateway cost increased by 50.62% from 1,511.60 million in Fiscal 2021 to 2,276.75 million in Fiscal 2022. This was in line with the increase in our Payments GMV and Payment Gateway GMV.
Lending operational expenses
Lending operational expenses increased by 162.63% from 67.04 million in Fiscal 2021 to 176.07 million in Fiscal 2022. This increase was in line with the increase in the MobiKwik ZIP GMV (Disbursements) and ZIP EMI GMV (Disbursements), which resulted in an increase in expenses such as technology fees and facilitation fees paid to our lending partners who disbursed loans through these products.
Financial Guarantee expenses
Financial guarantee expenses increased by 55.51% from 583.67 million in Fiscal 2021 to 907.69 million in Fiscal 2022, primarily on account of increase in the amount of guarantees given by us to our lending partners to cover losses from loans extended by them to our consumers, in line with the increase in the MobiKwik ZIP GMV (Disbursements) and ZIP EMI GMV (Disbursements).
Employee Benefits Expenses
Employee benefits expenses increased by 102.23% from 530.31 million in Fiscal 2021 to 1,072.46 million in Fiscal 2022, primarily due to:
an increase by 63.53% in salaries, allowance and bonus from 471.95 million in Fiscal 2021 to 771.77 million in Fiscal 2022 on account of increase in the number of our employees and general salary increments; and
an increase by 734.53 % in employee stock options expenses from 31.16 million in Fiscal 2021 to 260.04 million in Fiscal 2022 on account of increase in the number of employee stock options granted in Fiscal 2022.
Other Expenses
Other expenses decreased by 59.73% from 1,348.08 million in Fiscal 2021 to 2,153.28 million in Fiscal 2022, primarily due to the following reasons:
Business promotion increased by 30.22% from 803.18 million in Fiscal 2021 to 1,045.90 million in
Fiscal 2022 on account of increase in advertising and user incentives provided on account of a rise in user incentives, in line with the growth in our payments services business.
Legal and professional fees increased by 203.44% from 62.80 million in Fiscal 2021 to 190.57 million in Fiscal 2022 primarily on account of legal and professional expenses incurred in connection with a proposed initial public offering of our Company, as well as a fund-raising of approximately 3,500 million by our Company from private investors.
There were no provisions for loss on MobiKwik Zip product made in Fiscal 2021, as against a provision of 106.91 million in Fiscal 2022. This provision was made on account of certain suspicious transactions made by users through the MobiKwik wallet to recharge Fast Tags issued by a certain payments bank, for which criminal proceedings were filed by our Company.
There were no share issue expenses incurred in Fiscal 2021, as against share issue expenses of 61.12 million in Fiscal 2022. These were incurred in connection with our Companys earlier proposed IPO of equity shares and expensed on account of expected delays in such IPO filing.
Outsource service cost increased by 138.75% from 44.05 million in Fiscal 2021 to 105.17 million in
Fiscal 2022 on account of higher engagement with third party collection agencies for provision of loan collection services for our lending partners, in line with growth in the MobiKwik ZIP GMV (Disbursements) and ZIP EMI GMV (Disbursements).
Earnings before Finance Costs, Taxes, Depreciation and Amortisation (EBIT?)
For the various reasons discussed above, EBITDA decreased from (1,018.14) million in Fiscal 2021 to (1,154.06) million in Fiscal 2022, while EBITDA Margin (EBITDA as a percentage of our total income) increased from (33.68)% in Fiscal 2021 to (21.24)% in Fiscal 2022. For reconciliation of EBITDA and EBITDA Margin, see " Non-GAAP Measures Reconciliation of EBITDA and EBITDA Margin to Profit/ (Loss) for the Year/ period" on page 383.
Finance Costs
Finance costs increased by 52.95% from 71.35 million in Fiscal 2021 to 109.13 million in Fiscal 2022 primarily due to an increase by 54.81% in interest expense on overdraft at amortised cost from 43.46 million in Fiscal
2021 to 67.28 million in Fiscal 2022.
Depreciation and Amortisation Expenses
Depreciation and amortisation expenses increased by 59.74% from 13.14 million in Fiscal 2021 to 20.99 million in Fiscal 2022, primarily due to increase in the depreciation of property, plant and equipment.
Tax Expense
We had total tax credit of 2.56 million in Fiscal 2022 as opposed to total tax expense of 10.37 million in Fiscal 2022, primarily on account of a deferred tax credit of 4.72 million in Fiscal 2022 against deferred tax expense amounting to 7.48 million in Fiscal 2021.
Loss for the Year
For the various reasons discussed above, loss for the year increased by 15.15% from 1,113.00 million in Fiscal 2021 to 1,281.62 million in Fiscal 2022.
Liquidity and Capital Resources
We have historically financed the expansion of our business and operations primarily through cash flows from operations, equity infusions from shareholders and borrowings. We believe that, after taking into account the expected cash to be generated from operations, our borrowings and the proceeds from the Issue, we will have sufficient liquidity for our present requirements and anticipated requirements for capital expenditure and working capital.
Cash Flows
The following table sets forth certain information relating to our cash flows in the periods indicated:
Particulars | 2021 | Fiscal 2022 | 2023 | For the six months ended September 30, 2023 |
Net cash generated from/ (used in) operating activities | (345.06) | (3,205.86) | 270.13 | (48.56) |
Net cash generated from/ (used in) investing activities | 104.92 | (847.72) | (6.78) | 359.90 |
Net cash generated from/ (used in) financing activities | 725.72 | 3,294.16 | 179.68 | (229.46) |
Net (decrease)/ increase in cash and cash equivalents | 485.58 | (759.42) | 443.03 | 81.88 |
Cash and cash equivalents at the end of the year/ period | 22.85 | (736.57) | (293.54) | (211.66) |
For further information, see "Financial Information - Restated Consolidated Financial Information Restated Consolidated Statement of Cash Flows" on page 304.
Operating Activities
Six months ended September 30, 2023
Net cash used in operating activities for the six months ended September 30, 2023 was 48.56 million due to operating profit generated during the period which was completely offset by the corresponding increase in working capital requirements. Our operating profit before working capital changes was 469.60 million. The difference was primarily attributable to decrease in other financial liabilities, trade receivables, other bank balances (escrow and nodal accounts) and other liabilities of 910.12 million, 84.28 million, 45.79 million and 37.69 million, respectively, which was partially offset by increase in trade payables, other financial assets, other current assets and provisions of 693.77 million, 100.53 million, 215.28 million and 3.63 million, respectively.
Fiscal 2023
Net cash generated from operating activities for Fiscal 2023 was 270.13 million primarily due to operating profit for the year partially set off by change in working capital during the year. Our operating profit before working capital changes was 555.07 million. The difference was primarily attributable to increase in trade receivables, other current assets, decrease in other financial liabilities of 482.09 million, 84.35 million and 2,303.91 million, respectively, which was partially offset by decrease in other financial assets, other bank balances (escrow and nodal accounts), increase in Other liabilities, increase in provision and increase in trade payables of 1,186.19 million, 754.32 million, 32.70 million, 2.88 million and 497.21 million, respectively.
Fiscal 2022
Net cash used in operating activities for Fiscal 2022 was 3,205.86 million, primarily on account of increase in advances to suppliers, increase in amount recoverable from users and business partners. Our operating profit before working capital changes was 122.48 million. The difference was primarily attributable to increase in other financial assets, other current assets and bank balances (escrow and nodal accounts) of 1,391.50 million, 1,010.31 million and 1,012.87 million, respectively, partially offset by increase in trade payables, decrease in other financial liabilities, increase in provisions and decrease in other liabilities of 92.44 million, 11.26 million, 16.77 million and 28.41 million, respectively, as well as decrease in trade receivables of 99.04 million.
Fiscal 2021
Net cash used in operating activities for Fiscal 2021 was 345.06 million primarily due to operating loss for the year partially set off by change in working capital during the year. Our operating loss before working capital changes was 462.71 million. The difference was primarily attributable to increase in trade receivables, other financial assets and other current assets of 209.59 million, 459.85 million and 353.38 million, respectively, partially offset by decrease in other bank balances (escrow and nodal accounts) of 570.19 million and increase in other trade payables, other liabilities, provisions and other financial liabilities of 376.93 million, 38.82 million , 14.13 million and 134.75 million, respectively.
Investing Activities
Six months ended September 30, 2023
Net cash generated from investing activities for the six months ended September 30, 2023 was 359.90 million, primarily on account of proceeds from the maturity of bank deposits of 313.78 million.
Fiscal 2023
Net cash used in investing activities for Fiscal 2023 was 6.78 million primarily due to movements in bank deposits. Net cash used in investing activities for Fiscal 2023 primarily included investments in bank deposits of
1,199.65 million and purchase of property, plant and equipment of 14.51 million, partially offset by proceeds from the maturity of bank deposits of 1,141.98 million.
Fiscal 2022
Net cash used in investing activities for Fiscal 2022 was 847.72 million, primarily due to net investments in bank deposits. Net cash used in investing activities for Fiscal 2022 primarily included investments in bank deposits and purchase of property, plant and equipment of 5,974.49 million and 33.45 million, respectively, which was partially offset by proceeds from the maturity of bank deposits of 5,112.02 million, respectively.
Fiscal 2021
Net cash generated from investing activities for Fiscal 2021 was 104.92 million, which primarily included interest received on bank deposits, proceeds from sale of mutual funds and proceeds from the maturity of bank deposits of 60.09 million, 38.12 million, and 20.50 million.
Financing Activities
Six months ended September 30, 2023
Net cash used in financing activities for the six months ended September 30, 2023 was 229.46 million, primarily on account of repayment of non-convertible debentures, payment of lease liabilities and interest and borrowing costs of 132.00 million, 15.75 million and 81.71 million, respectively.
Fiscal 2023
Net cash generated from financing activities for Fiscal 2023 was 179.68 million and primarily included proceeds of non-convertible debentures of 543.04 million, partially offset by interest and borrowing cost, repayment of borrowings, repayment of non-convertible debentures and payment of lease liabilities of 188.88 million, 95.08 million, 54.00 million and 25.44 million, respectively.
Fiscal 2022
Net cash generated from financing activities for Fiscal 2022 was 3,294.16 million and primarily included proceeds from the issue of equity shares, proceeds from the issue of preference shares and proceeds from borrowings of 1,059.99 million, 2,154.44 million, 363.00 million, partially offset by interest and borrowing cost, share issue expenses, repayment of borrowings and repayment of non-convertible debentures of 108.77 million, 77.42 million, 67.92 million and 25.45 million, respectively.
Fiscal 2021
Net cash generated from financing activities was 725.72 million in Fiscal 2021, and primarily included proceeds from issuance of preference shares of 998.30 million, partially offset by repayment of non-convertible debentures, repayment of borrowings and interest and borrowing cost of 114.55 million, 75.00 million and
72.19 million, respectively.
Indebtedness
As of September 30, 2023, we had total borrowings of 1,511.79 million. For further information on our indebtedness, see "Financial Indebtedness" on page 412.
The following table sets forth certain information relating to our outstanding indebtedness as of September 30, 2023, and our repayment obligations in the periods indicated:
Particulars | As of September 30, 2023 Payment due by period ( million) | ||||
Total | Not later than 1 year | 1-3 years | 3 -5 years | More than 5 years | |
Short Term Borrowings | |||||
Secured bank overdraft | 949.20 | 949.20 | - | - | - |
Term Loan | 200.00 | 200.00 | - | - | - |
Current maturity of non-convertible | 289.65 | 289.65 | - | - | - |
debentures | |||||
Long Term Borrowings | |||||
Non-convertible debentures | 362.59 | - | 362.59 | - | - |
(Less) Current maturity of non-convertible | (289.65) | (289.65) | |||
debentures | |||||
Total Borrowings | 1511.79 | 1438.85 | 72.94 | - | - |
Contingent Liabilities and Commitments
The summary of our contingent liabilities as on September 30, 2023, as indicated in our Restated Consoldiated Financial Information are as follows:
Particulars | As of September 30, 2023 |
( million) | |
(a) Claims against the Group not acknowledged as debts: | |
- Income tax matters for financial year 2016-17* | - |
- Other income tax matters | 4.14 |
- Amount paid under protest relating to the above matter | 1.83 |
(b) The Group does not have any long term commitments/ contracts including derivative | - |
contracts for which there will be any material foreseeable losses. | |
(c) The Group does not have any amounts which were required to be transferred to the | - |
Investor Education and Protection Fund |
* During Fiscal 2022, our Company had received an assessment order dated June 15, 2021 imposing a demand of INR 583.00 million on account of additions made under section 68 of the Income Tax Act, 1961 for the financial year 2016-17. The said demand has been made by the assessing officer, in respect of documents sought for the identity of the investor, their creditworthiness and genuineness of the funding received by our Company during the said financial year. Basis the facts of the matter and the advice obtained from tax counsel, our Company filed a writ petition with High Court and the said order has been set aside by the High Court on July 7, 2021.
394
For further details of our contingent liabilities as on March 31, 2023, see "Managements Discussion and Analysis of Financial Condition and Results of Operations", "Outstanding Litigation and Material Developments" and
" Financial Statements" beginning on pages 369, 415 and 296, respectively.
We do not have any off-balance sheet arrangements, derivative instruments or other relationships with other entities that would have been established for the purpose of facilitating off-balance sheet arrangements.
Contractual Obligations and Commitments
The following table sets forth certain information relating to future payments due under known contractual commitments as of September 30, 2023, aggregated by type of contractual obligation:
Particulars | Payment due by period Within | Total | |
1 year Between | 1 - 5 years ( million) | ||
Trade payables | 1,872.25 | - | 1,872.25 |
Lease liabilities | 31.50 | 122.43 | 153.93 |
Other financial liabilities | 1,299.46 | 0.35 | 1,299.81 |
Financial guarantee obligation | 384.67 | - | 384.67 |
Borrowings | 1,441.20 | 72.00 | 1,513.20 |
Total | 5,029.08 | 194.78 | 5,223.86 |
Capital Expenditures
Our historical capital expenditure was, and we expect our future capital expenditure to be, primarily for technology hardware including computer systems and peripheral.
The following table sets forth the net block of our capital assets for the periods indicated:
Particulars | Fiscal | For the six | ||
2021 | 2022 | 2023 | months ended September 30, 2023 | |
Property, plant and equipment | 9.39 | 26.45 | 21.16 | 21.68 |
Other tangible assets | - | - | - | - |
Goodwill | - | - | - | - |
Total | 9.39 | 26.45 | 21.16 | 21.68 |
Related Party Transactions
We have entered into transactions with certain related parties, including our Subsidiaries, our Promoters, Directors and certain KMPs. In particular, we have entered into various transactions with such parties in relation to, amongst others, investment in Subsidiaries, payment for services received from Subsidiaries and remuneration to KMPs.
For further information relating to our related party transactions, see "Financial Information Restated Consolidated Financial Information Note 34: Related Party Transactions" on page 360.
Changes in Accounting Policies
There have been no changes in our accounting policies during Fiscals 2021, 2022 and 2023 and the six months ended September 30, 2023.
Auditors Observations
Qualification
Our Statutory Auditors in their audit report on our consolidated financial statements for Fiscal 2021 have included a qualification in relation to certain allotments of preference shares during the year ended March 31, 2018 and
March 31, 2017 for which our Company received proceeds of 707.50 million and 472.52 million, respectively. However, our Company did not keep 451.73 million and 100.00 million from the respective years proceeds in a separate bank account and inadvertently utilized these amounts for payment towards business purposes before allotment of shares to the investors, in contravention of Section 42 of the Companies Act, 2013. Subsequent to March 31, 2021, on April 19, 2021, our Company has also filed an application before the Regional Director (Northern Region), Registrar of Companies, Delhi and Haryana, for compounding of this contravention, submitting (among other grounds) that the relevant actions had been taken without any mala fide intentions. Further, the same has been compounded vide order dated August 13, 2021. The above-mentioned matter does not require any adjustments.
Financial risk management objectives and policies
Our management monitors and manages key financial risk relating to the operations of our Company by analysing exposures by degree and magnitude of risk. The risks include market risk (including interest rate risk, currency risk and other price risk), credit risk and liquidity risk.
Our Board of Directors has overall responsibility for the establishment and oversight of our risk management framework. Our risk management policies are established to identify and analyse the risks faced by us, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and our activities.
Credit Risk
Credit risk is the risk that a counter party will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. We are exposed to credit risk from our operating activities (primarily trade receivables and financial guarantees provided by us) and from our financing activities, including deposits with banks, mutual funds and financial institutions, and other financial assets. Our management has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis.
The carrying amounts of financial assets and the maximum amount that we would have to pay if the financial guarantee is called upon, irrespective of the likelihood of the guarantee being exercised, represents the maximum credit risk exposure.
Credit risk management considers available reasonable and supportive forward-looking information including indicators, such as, external credit rating (as far as available), macro-economic information (including regulatory changes, government directives, market interest rate).
Trade Receivables
We are exposed to credit risk in the event of non-payment by trade partners. Receivable credit risk is managed subject to our established policy, procedures and control relating to trade partners risk management. We use a provision matrix to determine impairment loss allowance on portfolio of its trade receivables through a lifetime expected credit loss. The provision matrix is based on its historically observed default rates over the expected life of the trade receivables and is adjusted for forward-looking estimates.
Digital Financial Services
Our exposure to credit risk is from the digital financial services business in which we facilitate credit to our users through financing partners. We provide financial guarantees on the digital financial services business to its financing partners to cover the loss on the credit extended to its users. Financial guarantees are capped to the extent agreed with the respective partner. Further, with effect from December 1, 2022 in line with the recent RBI guidelines in relation to routing of flow of funds between users and financing partners, there have been a change in our arrangements with the financing partners and as per the revised arrangements, we do not have any exposure to credit risk for the new credits given to our users through financing partners. Therefore, the exposure for credit risk still exists at the year-end on the credits which were given prior to the new guidelines till the date they are being settled and paid off as per the agreed terms.
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. We manage and controls credit risk by setting limits on the amount of risk we are willing to accept for individual users and for geographical and industry concentrations, and by monitoring exposures in relation to such limits.
Credit risk is monitored by the independent Risk Management ("RM") department within our digital financial services business. The RMs responsibility is to review and manage credit risk, including environmental and social risk for all types of counterparties. Our risk team consists of experienced credit risk professionals who have deep expertise in the domain of financial and credit risk of digital financial services business and are responsible for managing the risk of our digital financial services portfolio including credit risk systems, policies, models and reporting.
We have established a credit quality review process to provide early warning signals to identify the changes in the creditworthiness of our digital financial services users. User limits are established by the use of a credit risk classification system, which assigns each digital financial services user a risk rating. Risk ratings are subject to regular revision. The credit quality review process enables the periodic assessment of the potential loss to which we are exposed thereby allowing us to take corrective actions.
Concentration of credit risk
Concentrations arise when a number of users are engaged in similar business activities, or activities in the same geographical region, or have similar economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic, political or other conditions.
In order to avoid excessive concentrations of risk, our policies and procedures include specific guidelines to focus on spreading our digital financial services portfolio across various products/states/customer base with a cap on maximum limit of exposure for an individual/ group. Accordingly, we do not have concentration risk.
Expected credit loss on financial guarantee contract
We have, based on current available information and based on the policy approved by the Board of Directors, calculated impairment loss allowance in the digital financial services business using the Expected Credit Loss (ECL) model to cover the guarantees provided to our financing partners.
For further information, see "Financial Information - Restated Consolidated Financial Information Note 31: Financial Risk Management Objectives and Policies (i) Credit Risk Management" on page 353.
Liquidity Risk
Liquidity risk is the risk that we will encounter difficulty in meeting the obligations associated with our financial liabilities that are settled by delivering cash or another financial asset. Our approach to managing liquidity is to ensure, as far as possible, that we will have sufficient liquidity to meet our liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to our reputation.
Ultimate responsibility for liquidity risk management rests with the Board, who has established an appropriate liquidity risk management framework for the management of our short-term, medium-term and long-term funding and liquidity management requirements. We manage liquidity risk by maintaining adequate reserves, banking facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.
Till Financial Year 2022-23, the Company had incurred losses, whereas during the six months period ended September 30, 2023, there has been improvement in the financial performance of the Company and the Company has generated a profit of 94.78 million. The Company has net worth of 1,525.33 million and a positive working capital position (i.e. its current assets exceed its current liabilities) as at September 30, 2023 of 244.44 million, including cash and cash equivalents of 737.54 million. Further, based on the current business plan and projections prepared by the management, the Company expects to achieve growth in its operations in the coming years with continuous improvement in operational efficiency. The management has made an assessment of the Companys ability to continue as a going concern and believes that the Company will continue to be a going concern considering, amongst other things, expected growth in operations, existing cash and cash equivalents and other available bank balances. In view of the above, Board has concluded that the going concern assumption is appropriate.
Market Risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include foreign currency receivables, deposits, investments in mutual funds. We have in place appropriate risk management policies to limit the impact of these risks on its financial performance. We ensure optimization of cash through fund planning and robust cash management practices.
Interest Rate Risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The sensitivity disclosed in the below is attributable to bank overdraft facility availed by us. Our other borrowings have fixed interest rate.
For further information, see "Financial Information - Restated Consolidated Financial Information Note 31: Financial Risk Management Objectives and Policies" on page 353.
Currency Risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. We are exposed to currency risk to the extent that there is a mismatch between the currencies in which sales and purchase of services are denominated (i.e. USD) and the respective functional currencies of us (i.e. INR).
Unusual or Infrequent Events or Transactions
Except as described in this Draft Red Herring Prospectus, there have been no unusual or infrequent events or transactions that have in the past or may in the future affect our business operations or future financial performance.
Significant Economic Changes that materially affect or are likely to affect Income from Continuing Operations
Except as described in this Draft Red Herring Prospectus, there have been no significant economic changes that materially affect or are likely to affect Income from continuing operations.
Known Trends or Uncertainties
Our business has been affected and we expect will continue to be affected by the trends identified above in " Key Factors Affecting our Results of Operations" and the uncertainties described in the section titled "Risk Factors" beginning on page 33. To our knowledge, except as described or anticipated in this Draft Red Herring Prospectus, there are no known factors which we expect will have a material adverse impact on our sales or revenues or income from continuing operations.
Future Relationship between Cost and Income
Other than as described in "Risk Factors", "Our Business" and "Managements Discussion and Analysis of
Financial Condition and Results of Operations" on pages 33, 190 and 369 respectively, to our knowledge there are no known factors that may adversely affect our business prospects, results of operations and financial condition.
New Product Segments
Except as set out in this Draft Red Herring Prospectus, we have not announced and do not expect to announce in the near future any new product segments. For further information, see "Business Our Strategies" on page 220.
Competitive Conditions
We operate in a competitive environment. See "Our Business", "Industry Overview" and "Risk Factors" on pages 190, 164 and 33, respectively, for further details on competitive conditions that we face across our various businesses.
Extent to which material increases in Net Sales or Revenue are due to increased Sales Volume, introduction of New Products or Services or increased Sales Prices
Changes in revenue in the last three Fiscals are as described in "Managements Discussion and Analysis of
Financial Condition and Results of Operations Fiscal 2023 compared to Fiscal 2022" and "Managements Discussion and Analysis of Financial Condition and Results of Operations Fiscal 2022 compared to Fiscal 2021" above on pages 387 and 389, respectively.
Segment Reporting
Till the financial year ended March 31, 2022, the information reported to our Groups Chief Executive Officer
(CEO), the Chief Operating Decision Maker (CODM)) for the purposes of resource allocation and assessment of segment performance was focused on the degree of homogeneity of products, services and material businesses. Segments performance was evaluated based on segment revenue, segment results and adjusted earnings before interest, taxes, depreciation and amortisation (adjusted EBITDA). Accordingly, our Groups reportable segments under Ind AS 108 were (a) consumer payments, (b) digital financial services (previously known as BNPL), and (c) payment gateway. The performance of each of these segments was evaluated based on segment revenue, segment results and adjusted EBITDA. During Fiscal 2023, we have reassessed the basis of segment reporting. This reassessment was required due to change in the business strategy over the period, increased interdependency between various services, increased interchangeability of resources and common costs, change in our Chief
Executive Officer (CEO) (Chief Operating Decision Maker or "CODM") reviews our performance, etc.
Accordingly, to align with the above shift in business strategy and the consequent change in the way the CODM reviews the performance, our has modified the segment disclosure and concluded that though there are different business units of us, including financial services and payment services, but CODM reviews the information at the overall level and we do not allocate revenue from operations, operating costs and expenses, assets and liabilities across the units. Allocation of resources and assessment of financial performance is done at the consolidated level. Accordingly, it has been assessed that we operates in a single operating segment only.
See also "Financial Statements - Restated Consolidated Financial Information Note 32: Operating Segment" on page 359.
Seasonal nature of business
While there is no significant impact on our business due to seasonal fluctuations, there is typically an uptick in transactions volumes in our platform during major festivals.
Significant dependence on single or few customers
Given the nature of our business operations, we do not believe our business is dependent on any single or a few customers.
Significant developments after September 30, 2023 that may affect our future results of operations
Except as disclosed below and elsewhere in this Draft Red Herring Prospectus, there have been no significant developments after September 30, 2023, which materially and adversely affects, or is likely to affect, our operations or profitability, or the value of our assets, or our ability to pay our material liabilities within the next 12 months:
Our Company had allotted 30,910 partially paid-up Series H CCCPS to Blacksoil Capital Private Limited and 8,832 CCCPS to Blacksoil India Credit Fund on January 16, 2023 (Paid 1 per CCCPS only at the time allotment). Such shares were forfeited pursuant to a resolution passed by the Board of Directors on December 5, 2023, due to non-payment of the balance of a total sum of 4,49,60,124.60 on such CCCPS when called upon.
Summary of Material Accounting Policies
Basis of Consolidation
The following table sets forth certain information in relation to the subsidiaries, which are considered in the consolidation and our Companys holdings, therein:
Name of the Company | Country of Incorporation | Nature | Percentage of ownership as on March 31 | Percentage of | ||
2021 | 2022 | 2023 | ownership as on September 30, 2023 | |||
1 ZAAK EPAYMENT SERVICES PRIVATE LIMITED | India | Subsidiary | 100% | 100% | 100% | 100% |
2 MOBIKWIK FINANCE PRIVATE LIMITED | India | Subsidiary | 100% | 100% | 100% | 100% |
3 MOBIKWIK CREDIT PRIVATE LIMITED | India | Subsidiary | 100% | 100% | 100% | 100% |
4 MOBIKWIK INVESTMENT ADVISER PRIVATE LIMITED (formerly known as HARVEST FINTECH PRIVATE LIMITED) | India | Subsidiary | 100% | 100% | 100% | 100% |
Significant Accounting Judgements, Estimates and Assumptions
The preparation of the Restated Consolidated Financial Informationin conformity with Ind AS requires our management to make judgments, estimates and assumptions that affect the reported amounts of income, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on our managements best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods. Therefore, actual results could differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
Judgements
In the process of applying the Groups accounting policies, management has made the following judgements, which have the most significant effect on the amounts recognised in the Restated Consolidated Financial Information:
a) Revenue from contracts with customers
The Group applied judgements that significantly affect the determination of the amount and timing of revenue from contracts with customers, such as identifying performance obligations, wherein, the Group provides multiple services as part of the arrangement. The Group allocated the portion of the transaction price to services basis on its relative standalone prices.
Before including any amount of variable consideration in the transaction price, the Group considers whether the amount of variable consideration is constrained. The Group determined that the estimates of variable consideration are not constrained based on its historical experience, business forecast and the current economic conditions. In addition, the uncertainty on the variable consideration will be resolved within a short time frame.
b) Determining lease term
The Group determines the lease term as the non-cancellable term of the lease, together with any periods covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate the lease, if it is reasonably certain not to be exercised. The Group has some property lease arrangements with its vendors that include option to terminate the contract by either party at any time by giving advance notice or by the Group as per its discretion. The Group applied judgment in evaluating whether it is reasonably certain to exercise the termination option. It considered all the factors that create economic incentive for the Group to continue with lease or terminate including alternatives available for the office lease, use of underlying property, leasehold improvements made and accordingly determined lease term.
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 Group 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 Group. Such changes are reflected in the assumptions when they occur.
a) Taxes
Deferred tax assets are recognised for unused tax losses to the extent that it is probable that future taxable profit will be available against which the losses can be utilised. In assessing the probability the Group considers whether the entity has sufficient taxable temporary differences relating to the same taxation authority and the same taxable entity, which will result in taxable amounts against which the unused tax losses or unused tax credits can be utilised before they expire. Significant management assumptions are required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.
The Group has tax business losses and unabsorbed depreciation carried forward amounting to 7,612.93 million (31 March 2022: 6,803.13 million). The Group does not expect sufficient future taxable profit against which such tax losses can be utilised. On this basis, the Group has not recognised deferred tax assets on these carried forward tax losses.
b) Defined benefit plans (gratuity benefit)
The cost of the defined benefit gratuity plan and the present value of the gratuity obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.
The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans operated in India, the management considers the interest rates of government bonds in currencies consistent with the currencies of the post-employment benefit obligation.
The mortality rate are current best estimates of the expected mortality rates of plan members, both during and after employment. Future salary increases and gratuity increases are based on expected future inflation rates, seniority, promotion and other relevant factors, such as supply and demand in the employment market.
c) Useful life of assets - Property, Plant and Equipment
The charge in respect of periodic depreciation is derived after determining an estimate of an assets expected useful life and the expected residual value at the end of its life. The useful lives and residual values of Groups assets are determined by management at the time the asset is acquired and reviewed at each financial year end.
d) Leases Estimating the incremental borrowing rate
The Group 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 Group would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment. The IBR therefore reflects what the Group
‘would have to pay, which requires estimation when no observable rates are available or when they need to be adjusted to reflect the terms and conditions of the lease. The Group estimates the IBR using observable inputs (such as market interest rates) when available and is required to make certain entity-specific estimates (such as stand-alone credit rating). f) Calculation of loss allowance
When measuring ECL the Group uses reasonable and supportable forward-looking information, which is based on assumptions for the future movement of different economic drivers and how these drivers will affect each other.
Loss given default is an estimate of the loss arising on default. It is based on the difference between the contractual cash flows due and those that the lender would expect to receive.
Probability of default constitutes a key input in measuring ECL. Probability of default is an estimate of the likelihood of default over a given time horizon, the calculation of which includes historical data, assumptions and expectations of future conditions.
g) Fair value of equity-settled share-based transaction
Estimating fair value for share-based payment transactions requires determination of the most appropriate valuation model, which depends on the terms and conditions of the grant. This estimate also requires determination of the most appropriate inputs to the valuation model including the expected life of the share option, volatility and dividend yield and making assumptions about them. The Group measures the fair value of equity-settled transactions with employees at the grant date using Black-Scholes model.
Summary of significant accounting policies
Revenue from contract with customers
The Group derives revenue primarily from following services:
Commission income from sale of recharge, bill payments and merchant payments;
Fees for money transfer service from users wallet to bank account;
Revenue from share in interest income, processing fee, activations fees, penalties and other such incomes on account of servicing of loans products through lending partners ( Digital Financial Services)
Revenue from technology platform services;
Payment gateway services; and
Income from advertisement/sale of space.
The Group recognises revenue from contracts with customers when it satisfies a performance obligation by transferring promised service to a customer. The revenue is recognised to the extent of transaction price allocated to the performance obligation satisfied. Performance obligation is satisfied upon transfer of control of service to a customer.
Transaction price is the amount of consideration to which the Group expects to be entitled in exchange for transferring good or service to a customer excluding taxes or duties collected on behalf on Government. An entity estimates the transaction price at contract inception, including any variable consideration, and updates the estimate each reporting period for any changes in circumstances.
Variable consideration such as discounts, volume based incentives, any payments made to a customer (unless the payment is for a distinct good or service received from the customer) is estimated using the expected value method or most likely amount as appropriate in a given circumstance. An entity includes estimates of variable consideration in the transaction price only to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognised will not occur when the uncertainty associated with the variable consideration is resolved.
The Group provides incentives to its users in various forms including cashbacks and supercash. Cashbacks and Supercash given to users where the Group recovers a convenience fee are classified as reduction of revenue. However, when these incentives offered to the users are higher than the income earned from the users, the excess (i.e., the incentive given to a user less income earned from the users) on an individual transaction basis is classified under business promotion expenses.
Where the Group acts as an agent for selling goods or services, only the commission income is included within revenue. Typically, the Group 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.
The Groups contracts with customers may include multiple performance obligations. For such arrangements, the
Group allocate revenues to each performance obligation based on its relative standalone selling price. The Group generally determine standalone selling prices based on the prices charged to customers or using expected cost-plus margin.
Commission income from sale of recharge, bill payments and merchant payments:
The Group facilitates recharge of talk time, utility bill payments and merchant payments and earns commission for the respective services. Commission income is recognized when the control of services is transferred to the customer i.e. when the services have been provided by the Group.
Such commission is generally determined as a percentage of monetary value of transactions processed or gross merchandise value. The Group typically contracts with merchants, financial institutions, or affiliates of those parties. Contracts stipulate the types of services and articulate how fees will be incurred and calculated. Commission income are recognized each day based on the value of transaction at the time the transactions are processed.
Amount received by the Group pending settlement are disclosed as payable to the merchants under other financial liabilities.
Fees for money transfer service from users wallet to bank account:
Commission on money transfer represents the amount earned from the users in the form of commission on the withdrawal of money by the users from their wallets and transfer the same to the bank accounts of their choice using the IMPS facility. Commission on money transfer is recognised on satisfaction of the associated performance obligation i.e. on transfer of money, and basis the standard agreement entered with the respective users.
Commission on payment gateway services:
The Group facilitates payment gateway services and earns commission from merchants and recognises such revenue when the control of services is transferred to the customer i.e. when the services have been provided by the Group. Such commission is generally determined as a percentage of transaction value processed by the Group.
Revenue from share in interest income, processing fee, penalties and other such incomes on account of servicing of loans products through lending partners:
Share in interest income (net) is earned on the loans to users by respective lending partners. This income is shared by the Group as per terms of agreement with service providers and accounted on accrual basis. Processing fees is recognised on satisfaction of associated performance obligation i.e. on sourcing of customers for lending partners and when amount of loan or credit is made available to the user based on standard agreements entered with the respective lending partners. Penalty fees for customer defaults i.e. delayed payment of instalment of loan product, is recognised as revenue on receipt of payment from customer. Other such incomes on account of loan facilitation services, collection, monitoring etc is recognised in line with the period of service obligation.
Revenue from technology platform services services:
The Group has contracts with customers to provide technology platform services services, in the form of service of design, development, operation and maintenance of technology-based products, one-time integration, setup and technology fee, etc. either independently or bundled with merchants, transaction processing and loan processing services. The Group typically contracts with financial institutions and merchant aggregators. Contracts stipulate the types of services and articulate how fees will be incurred and calculated. Service fee for design and development of technology-based products are recognised over the period of satisfaction of relative performance obligation i.e. development of product.
The services of one-time integration, setup, and technology fee, etc. are generally billed to the customers upfront. However, the underlying obligation to keep up and run the platform continues for the entire period of the contract with customer, and the pattern of benefits to the customer from such services rendered is generally even, throughout the period of contract. Revenue against such upfront technology platform service fee is recognized on a straight-line basis over a period (i.e. over the contractual term).
Income from advertisement/sale of space:
Revenue from sale of advertisement space is recognised, on satisfaction of associated performance obligation i.e. as and when the relevant advertisement is displayed on the application.
Contract balance
Trade receivables
A receivable represents the Groups 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 the obligation to transfer goods or services to a customer for which the Group has received consideration (or an amount of consideration is due) from the customer. If a customer pays consideration before the Group transfers goods or services to the customer, a contract liability is recognised when the payment is made, or the payment is due (whichever is earlier). The Group recognises contract liability for consideration received in respect of unsatisfied performance obligations and reports these amounts as "Deferred revenue" or "Advance from customers" in the balance sheet. Provisions for customer incentives are also reported as contract liabilities.
Employee benefits
Employee benefits include provident fund, employee state insurance scheme, gratuity, compensated absences and other incentives to employees.
Post-employment and termination benefit costs
Payments to defined contribution benefit plans (i.e. provident fund and employee state insurance scheme) are recognised as an expense when employees have rendered service entitling them to the contributions.
For defined benefit plans, the cost of providing benefits is determined using the projected unit credit method, with actuarial valuations being carried out at the end of each annual reporting period. Remeasurement, comprises actuarial gains and losses which is reflected immediately in the balance sheet with a charge or credit recognised in other comprehensive income in the period in which they occur. Remeasurement recognised in other comprehensive income is reflected immediately in retained earnings and is not reclassified to profit or loss. Past service cost is recognised in profit or loss in the period of a plan amendment. Net interest is calculated by applying the discount rate at the beginning of the period to the net defined benefit liability or asset. Defined benefit costs are categorised as follows:
service cost (including current service cost, past service cost, as well as gains and losses on curtailments and settlements); net interest expense or income; and remeasurement.
Short-term and other long-term employee benefits
A liability is recognised for short-term employee benefits accruing to employees in respect of salaries, annual leave and sick leave, performance incentives etc. in the period the related service is rendered at the undiscounted amount of the benefits expected to be paid in exchange for that service.
Liabilities recognised in respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for the related service.
Accumulated leave, which is expected to be utilized within the next twelve months, is treated as short-term employee benefit. The Group measures the expected cost of such absences as the additional amount that it expects to pay as a result of the unused entitlement that has accumulated at the reporting date.
The Group treats accumulated leave expected to be carried forward beyond twelve months, as long-term employee benefit for measurement purposes. Such long-term compensated absences are provided for based on the actuarial valuation using the projected unit credit method at the year-end. Actuarial gain/loss are immediately taken to the statement of profit and loss and are not deferred. The Group presents the entire leave as a current liability in the balance sheet, since it does not have an unconditional right to defer its settlement for twelve months after the reporting date.
Share-based payments
Employees of the Group also receive remuneration in the form of share-based payment transactions under Groups Employee stock option plan (ESOP)-2014.
Equity-settled transactions
The grant date fair value of equity settled share-based payment awards granted to employees is recognised as an employee expense, with a corresponding increase in equity, over the period that the employees unconditionally become entitled to the awards. The amount recognised as expense is based on the estimate of the number of awards for which the related service conditions are expected to be met, such that the amount ultimately recognised as an expense is based on the number of awards that do meet the related service conditions at the vesting date.
Financial instruments
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. Trade receivables and debt securities issued are initially recognised when they are originated. All other financial assets and financial liabilities are recognised when a Group becomes a party to the contractual provisions of the instruments.
Financial assets (unless it is a trade receivable without a significant financing component) and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in profit or loss. A trade receivable without a significant financing component is initially measured at the transaction price.
Financial assets
All recognised financial assets are subsequently measured in their entirety at either amortised cost or fair value, depending on the classification of the financial assets.
Classification of financial instruments
For purposes of subsequent measurement, financial assets are classified in four categories:
Financial asset at amortised cost
Debt instruments at fair value through other comprehensive income (FVTOCI)
Debt instruments, derivatives and equity instruments at fair value through profit or loss (FVTPL)
Equity instruments measured at fair value through other comprehensive income (FVTOCI)
A financial asset that meet the following conditions are subsequently measured at amortised cost (except for financial asset that are designated as at fair value through profit or loss on initial recognition):
the asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows; and
the contractual terms of the instrument give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
Debt instruments that meet the following conditions are subsequently measured at fair value through other comprehensive income (except for debt instruments that are designated as at fair value through profit or loss on initial recognition):
the asset is held within a business model whose objective is achieved both by collecting contractual cash flows and selling financial assets; and the contractual terms of the instrument give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
On initial recognition of an equity investment that is not held for trading, the Group may irrevocably elect to present subsequent changes in the investments fair value in OCI. This election is made on an investment by investment basis.
All financial assets not classified as measured at Debt instruments that do not meet the amortised cost criteria or FVTOCI criteria (see above) are measured at FVTPL. In addition, debt instruments financial assets that meet the amortised cost criteria or the FVTOCI criteria may irrevocably be but are designated as at FVTPL are measured at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.
Subsequent measurement of financial instruments
Financial assets at FVTPL | These assets are subsequently measured at fair value. Net gains and losses, |
including any interest or dividend income, are recognised in profit or loss. | |
Financial assets at amortised cost | These assets are subsequently measured at amortised cost using the effective |
interest method. The amortised cost is reduced by impairment losses. Interest | |
income, foreign exchange gains and losses and impairment are recognised in | |
profit or loss. Any gain or loss on derecognition is recognised in profit or loss. | |
Debt instruments at FVTOCI | These assets are subsequently measured at fair value. Interest income under |
the effective interest method, foreign exchange gains and losses and | |
impairment are recognised in profit or loss. Other net gains and losses are | |
recognised in OCI. On derecognition, gains and losses accumulated in OCI | |
are reclassified to profit or loss. | |
Equity instruments at FVTOCI | These assets are subsequently measured at fair value. Dividends are |
recognised as income in profit or loss unless the dividend clearly represents a | |
recovery of part of the cost of the investment. Other net gains and losses are | |
recognised in OCI and are not reclassified to profit or loss. |
Impairment of financial assets
The Group applies the expected credit loss model for recognising impairment loss on financial assets measured at amortised cost, debt instruments, trade receivables, other contractual rights to receive cash or other financial asset and financial guarantees not designated as at FVTPL. The amount of expected credit losses is updated at each reporting date to reflect changes in credit risk since initial recognition of the respective financial instrument.
The Group always recognises lifetime expected credit losses (ECL) for trade receivables. The expected credit losses on these financial assets are estimated using a provision matrix based on the Groups historical credit loss experience, adjusted for factors that are specific to the debtors, general economic conditions and an assessment of both the current as well as the forecast direction of conditions at the reporting date, including time value of money where appropriate.
For measurement of loss allowance in case of financial guarantee contracts, the Group recognises lifetime ECL when there has been a significant increase in credit risk since initial recognition. However, if the credit risk on the financial instrument has not increased significantly since initial recognition, the Group measures the loss allowance for that financial instrument at an amount equal to 12-month ECL.
Lifetime ECL represents the expected credit losses that will result from all possible default events over the expected life of a financial instrument. In contrast, 12-month ECL represents the portion of lifetime ECL that is expected to result from default events on a financial instrument that are possible within 12 months after the reporting date.
(i) Significant increase in credit risk
For financial guarantee contracts, the date that the Group becomes a party to the irrevocable commitment is considered to be the date of initial recognition for the purposes of assessing the financial instrument for impairment. In assessing whether there has been a significant increase in the credit risk since initial recognition of a financial guarantee contracts, the Group considers the changes in the risk that the specified debtor will default on the contract. In making this assessment, the Group considers both quantitative and qualitative information that is reasonable and supportable, including historical experience and forward-looking information that is available without undue cost or effort.
The Group applies a three-stage approach to measure ECL on financial guarantee contracts. The underlying receivables of debtors migrate through the following three stages based on the change in credit quality since initial recognition.
Stage 1: 12-months ECL
For exposures where there has not been a significant increase in credit risk since initial recognition and that are not credit impaired upon origination, the portion of the lifetime ECL associated with the probability of default events occurring within the next 12 months is recognized.
Exposures with days past due (DPD) less than or equal to 30 days are classified as stage 1.
Stage 2: Lifetime ECL not credit impaired
For credit exposures where there has been a significant increase in credit risk since initial recognition but that are not credit impaired, a lifetime ECL is recognized. Exposures with DPD equal to 31 days but less than or equal to 89 days are classified as stage 2. At each reporting date, the Group assesses whether there has been a significant increase in credit risk for underlying receivables of debtors since initial recognition by comparing the risk of default occurring over the expected life between the reporting date and the date of initial recognition.
Stage 3: Lifetime ECL credit impaired
Receivable of debtor is assessed as credit impaired when one or more events that have a detrimental impact on the estimated future cash flows of that asset have occurred. For receivable of debtors that have become credit impaired, a lifetime ECL is recognized on principal outstanding as at period end.
Exposures with DPD equal to or more than 90 days are classified as stage 3.
The definition of default for the purpose of determining ECLs has been aligned to the Reserve Bank of India definition of default, which considers indicators that the debtor is unlikely to pay and is no later than when the exposure is more than 90 days past due.
The measurement of all expected credit losses for financial guarantee contracts held at the reporting date are based on historical experience, current conditions, and reasonable and supportable forecasts. The measurement of ECL involves increased complexity and judgement, including estimation of PDs, LGD, a range of unbiased future economic scenarios, estimation of expected lives and estimation of EAD and assessing significant increases in credit risk.
The Group regularly monitors the effectiveness of the criteria used to identify whether there has been a significant increase in credit risk and revises them as appropriate to ensure that the criteria are capable of identifying significant increase in credit risk before the amount becomes past due.
(ii) Measurement and recognition of expected credit losses
The measurement of expected credit losses is a function of the probability of default, loss given default (i.e. the magnitude of the loss if there is a default) and the exposure at default. The assessment of the probability of default and loss given default is based on historical data adjusted by forward-looking information as described above.
As for the exposure at default, for financial assets, this is represented by the assets gross carrying amount at the reporting date; for financial guarantee contracts, the exposure includes the amount drawn down as at the reporting date, together with any additional amounts expected to be drawn down in the future by default date determined based on historical trend, the Groups understanding of the specific future financing needs of the debtors, and other relevant forward-looking information.
For financial assets, the expected credit loss is estimated as the difference between all contractual cash flows that are due to the Group in accordance with the contract and all the cash flows that the Group expects to receive, discounted at the original effective interest rate.
For a financial guarantee contract, as the Group is required to make payments only in the event of a default by the debtor in accordance with the terms of the instrument that is guaranteed, the expected loss allowance is the expected payments to reimburse the holder for a credit loss that it incurs less any amounts that the Group expects to receive from the holder, the debtor or any other party.
If the Group has measured the loss allowance for a financial instrument at an amount equal to lifetime ECL in the previous reporting period, but determines at the current reporting date that the conditions for lifetime ECL are no longer met, the Group measures the loss allowance at an amount equal to 12-month ECL at the current reporting date, except for assets for which the simplified approach was used.
The Group recognises an impairment gain or loss in profit or loss for all financial instruments with a corresponding adjustment to their carrying amount through a loss allowance account, except for investments in debt instruments that are measured at FVTOCI, for which the loss allowance is recognised in other comprehensive income and accumulated in a separate component of equity wherein fair value changes are accumulated, and does not reduce the carrying amount of the financial asset in the balance sheet.
Derecognition of financial assets
The Group derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party or when the Group neither transfers nor retains substantially all of the risks and rewards of ownership and does not retain control of the financial asset. If the Group neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Group recognises its retained interest in the asset and an associated liability for amounts it may have to pay. If the Group retains substantially all the risks and rewards of ownership of a transferred financial asset, the Group continues to recognise the financial asset and also recognises a collateralised borrowing for the proceeds received.
On derecognition of a financial asset in its entirety, the difference between the assets carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss that had been recognised in other comprehensive income and accumulated in equity is recognised in profit or loss if such gain or loss would have otherwise been recognised in profit or loss on disposal of that financial asset.
Financial liabilities and equity instruments
Classification as debt or equity
Debt and equity instruments issued by the Group are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.
Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of the Group after deducting all of its liabilities. Equity instruments issued by the Group are recognised at the proceeds received, net of direct issue costs.
Financial liabilities a) contractual obligation:
(i) to deliver cash or another financial asset to another entity; or
(ii) to exchange financial assets or financial liabilities with another entity under conditions that are potentially unfavourable to the entity; or
b) a contract that will or may be settled in the entitys own equity instruments and is:
(i) a non-derivative for which the entity is or may be obliged to deliver a variable number of the entitys own equity instruments; or (ii) a derivative that will or may be settled other than by the exchange of a fixed amount of cash or another financial asset for a fixed number of the entitys own equity instruments.
All financial liabilities are subsequently measured at amortised cost using the effective interest method or at FVTPL.
Financial liabilities at FVTPL
Financial liabilities are classified as at FVTPL when the financial liability is either contingent consideration recognised by the Group as an acquirer in a business combination to which Ind AS 103 applies or is held for trading or it is designated as at FVTPL.
Financial liabilities at FVTPL are stated at fair value, with any gains or losses arising on remeasurement recognised in profit or loss.
Financial liabilities subsequently measured at amortised cost
Other financial liabilities are subsequently measured at amortised cost at the end of subsequent accounting periods. The carrying amounts of financial liabilities that are subsequently measured at amortised cost are determined based on the effective interest method. Interest expense that is not capitalised as part of costs of a qualifying asset is included in the ‘Finance costs line item.
The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter period, to the net carrying amount on initial recognition.
Financial guarantee contract liabilities
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 contract liabilities are measured initially at their fair values and, if not designated as at FVTPL and do not arise from a transfer of an asset, are measured subsequently at the higher of:
the amount of the loss allowance determined in accordance with Ind AS 109 (see section of impairment of financial assets above); and the amount recognised initially less, where appropriate, cumulative amortisation recognised in accordance with the revenue recognition policies set out above.
Although the fee income from financial guarantee contracts is recognised in accordance with the principles of Ind AS 115, the financial guarantee contract is in the scope of Ind AS 109 and the fee income from it is not revenue from contracts with customers. The Group presents the fee income from financial guarantees as part of revenue from share in interest income.
Derecognition of financial liabilities
The Group derecognises financial liabilities when, and only when, the Groups obligations are discharged, cancelled or have expired. An exchange between with a lender of debt instruments with substantially different terms is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. Similarly, a substantial modification of the terms of an existing financial liability (whether attributable to the financial difficulty of the debtor) is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. The difference between the carrying amount of the financial liability derecognised and the consideration paid and payable is recognised in profit or loss.
Interest income
For all financial assets measured at amortised 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 net carrying amount of the financial asset or to the amortised cost of a financial liability. When calculating EIR, the Group 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.
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www.indiainfoline.com is part of the IIFL Group, a leading financial services player and a diversified NBFC. The site provides comprehensive and real time information on Indian corporates, sectors, financial markets and economy. On the site we feature industry and political leaders, entrepreneurs, and trend setters. The research, personal finance and market tutorial sections are widely followed by students, academia, corporates and investors among others.
Copyright © IIFL Securities Ltd. All rights Reserved.
Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213, IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
This certificate demonstrates that IIFL as an organization has defined and put in place best-practice information security processes.