t. Provisions, contingent liabilities and commitment
Provisions are recognised when the Company has a
present obligation (legal or constructive) as a result
of a past event, it is probable that and outflow
of economic benefits will be required to settle the
obligation, and a reliable estimate can be made of the
amount of the obligation.
The amount recognised as a provision is the best
estimate of the consideration required to settle
the present obligation at the end of the reporting
period, taking into account the risks and uncertainties
surrounding the obligation.
When some or all of the economic benefits
required to settle a provision are expected to be
recovered from a third party, the receivable is
recognised as an asset, if it is virtually certain
that reimbursement will be received and the
amount of the receivable can be measured reliably.
The Company uses significant judgements to
assess contingent liabilities. Contingent liabilities
are recognised when there is a possible obligation
arising from past events, the existence of which
will be confirmed only by the occurrence or non¬
occurrence of one or more uncertain future events
not wholly within the control of the Company or
a present obligation that arises from past events
where it is either not probable that an outflow of
resources will be required to settle the obligation or
a reliable estimate of the amount cannot be made.
Contingent assets are neither recognised nor disclosed
in the standalone financial statements"
u. Cash dividend to equity holders
The Company recognises a liability to make cash to
equity holders when the distribution is authorised
and the distribution is no longer at the discretion of
the Company. As per the corporate laws in India, a
distribution is authorised when it is approved by the
shareholders. A corresponding amount is recognised
directly in equity. Interim dividends are recorded as a
liability on the date of declaration by the Company's
Board of Directors.
v. Recent Indian Accounting Standards (Ind AS)
Ministry of Corporate Affairs ("MCA”) notifies new
standards or amendments to the existing standards
under Companies (Indian Accounting Standards)
Rules as issued from time to time. There are no new
standards or amendments to the existing standards
that are notified impacting the Standalone financial
statements of the company.
application with AAR, the Company had created a receivable of Rs 73.28 million in the books pertaining to 20% TDS amount
deposited with the income tax department (after grossing up for the 10% TDS borne by the Company) and also created
a deferred liability amounting to Rs. 18.83 millions as at March 31, 2025 (March 31, 2024 - Rs 21.10 millions) pertaining to
10% TDS amount payable to Vivo Brazil if the application is decided in favor of the Company. The net amount of exposure
involved (net of forex gain) as at March 31, 2025 is Rs. 54.45 millions (March 31, 2024 - Rs 52.17 millions).
During the year ended March 31, 2020, application filed by the Company was disposed off by the Authority for Advance
Ruling ('AAR') thereby rejecting Company's refund claim of TDS deposited earlier and hold that the amount of market
access fees paid to VIVO SA, Brazil is in the nature of royalty and is liable for tax in India. During the previous year ended
March 31, 2021, the Company has filed a writ application with the Honorable High Court of Karnataka in the month of
June 2020. The said application is admitted by the Honorable High Court and the matter is yet to be taken up for regular
hearings. The Company based on the legal evaluation believes that it will be able to sustain on appeals and accordingly no
provisions are required to be recorded at this stage.
C) Aggregate number of shares allotted as fully paid up pursuant to contracts without payment being received in cash,
bonus shares and buyback of shares for the period of five years immediately proceeding the balance sheet date:
a) During the year ended March 31, 2021, the Board of Directors of the Company in their Board meeting held on
April 9, 2020 have approved buy back of 19,321,429 shares for a maximum value of Rs 541 millions. The Company
has during the period from April 1, 2020 to March 31, 2021 bought back 2,247,881 equity shares of Rs 10 each
at maximum price of Rs 28 per equity share. The total cash outflow towards shares bought back (including
premium and buy-back expenses) amounts to Rs 68.61 millions. The window for the said buy-back was closed on
October 23, 2020. An amount corresponding to face value of the shares bought back was transferred to Capital
Redemption Reserve.
The Company has not allotted any fully paid up shares by way of bonus shares, or bought-back any equity
shares or issues any shares in pursuance to contract without payment being received in cash during the period
of five years immediately preceding the reporting date other than those mentioned above. There are no shares
reserved for issue under options and contracts/ commitments for sale of shares/ disinvestment.
Nature and purpose of other equity
(i) Securities Premium:
Securities premium represents the premium received on issue of shares over and above the face value of equity
shares. The same is available for utilisation in accordance with the provisions of the Companies Act, 2013 "
(ii) General reserve:
This reserve is used from time to time to transfer profits from retained earnings for appropriation purposes."
(iii) Employee Stock Options Outstanding:
The fair value of the equity-settled share based payment transactions with employees is recognised in statement of
profit and loss with corresponding credit to stock options outstanding Account. The amounts recorded in this account
are trnnsferred to share premium upon exercise of stock options by employees. In case of lapse, corresponding
balance is transferred to general reserve.
(iv) Capital redemption reserve:
Capital redemption reserve represents reserve created on the redemption of preference shares.
(v) Retained earnings:
The cumulative gain or loss arising from the operations which is retained by the Company is recognised and
accumulated under the heading of retained earnings. At the end of the year, the profit after tax/ loss is transferred
from the statement of profit and loss to retained earnings. "
Note:
Working Capital Loan from bank amounting to Rs.280.77 million (March 2024: Rs.130.00 million), which carried interest of
10.85% - 11.50% per annum is repayable within 120 days (March 2024: 90 days) from the date of availment of the loan.
These were secured by charge over the receivables of the Company
There are covenants prescribed in the terms of borrowings
During the year ended March 31, 2025, in respect of working capital loans, quarterly returns or statements of current
assets filed by the company with banks are in agreement with the books of accounts.
29 B. Capital commitments
Estimated amount of contracts (net of advances) remaining to be executed on capital account and not provided
for is Rs. 3.90 million (March 31, 2024: Rs.2.55 million).
29 C. Other matters
During the year ended March 31, 2020, the Company had received a summon with respect to survey under
section 133A of the Income Tax Act, 1961. The scope of the survey communicated to the Company was verifying
the deduction under section 10AA claimed by the Company in relation to the income from its SEZ unit. During
the FY 2020-21 and FY 2021-22 the Company received notices under Section 148 of the Act towards reopening
of the assessment for the period from FY 2012-13 to FY 2015-16 and proposing to disallow the SEZ deduction
under section 10AA granted earlier. The Company has challenged the said order and filed writ petitions (for
all FY's) before the Honourable High Court of Karnataka on April 03, 2021 (for FY2012-13 to FY2014-15) and
September 06, 2022 (for FY2015-16). The Honourable High Court has granted stay on the proceedings. The
Company believes that there should be no adverse outcome against the Company on account of this matter.
II Defined benefit plans
The Company has a defined benefit gratuity plan as per the Payment of Gratuity Act, 1972. Under this legislation,
employee who has completed five years of service is entitled to specific benefit. The level of benefits provided
depends on the employee's length of service and salary at retirement/termination age and maximum monetary limit
for gratuity payments is Rs. 2 million. The gratuity plan is a funded plan and the Company makes contributions to a
recognised fund in India.
Notes:
1 The total allowance of INR 139.27 millions as at 31 March 2025 (March 31, 2024: INR 131.84) has been provided for
expected credit loss on other financial assets from related parties.
2 Employment benefits excludes gratuity and compensated absences which cannot be separately identified from the
composite amount advised by the actuary.
3 The transactions with related parties are made on terms equivalent to those that prevail in arm's length transactions.
33 Other statutory matters
i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the
Company for holding any Benami property.
ii) The Company has not traded or invested in Crypto currency or virtual currency during the current year.
iii) A) The Company has not advanced or loaned or invested funds (either from borrowed funds or share premium
or any other sources or kind of funds) to or in any other person(s) or entity(ies), including foreign entities
("Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary
shall directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries.
B) The Company has not received any funds from any person(s) or entity(ies), including foreign entities ("Funding
Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall directly
or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of
the Funding Parties ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries.
iv) The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered
or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or
Fair value heirarchy
This section explains the judgements and estimates made in determining the fair values of the financial instruments
that are recognised at fair value and amortised cost and for which fair values are disclosed in the financial statements.
To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified
its financial instruments under the accounting standard as follows:
Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities,
Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either
directly (i.e. as prices) or indirectly (i.e. derived from prices), and
Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).
There have been no transfers among Level 1, Level 2 and Level 3 during the period.
The management assessed that fair value of cash and short-term deposits, trade receivables, trade payables, other
current financial assets and liabilities approximate their carrying amounts largely due to the short-term maturities
of these instruments.
The fair value of the financial assets and liabilities is included at the amount at which the instrument could be
exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.
The following methods and assumptions were used to estimate the fair values:
i) Long-term fixed-rate receivables are evaluated by the Company based on parameters such as interest rates,
specific country risk factors, individual creditworthiness of the customer. Based on this evaluation, allowances
are taken into account for the expected losses of these receivables.
ii) The fair value of the unquoted mutual fund are based on market observable inputs at reporting date. The fair
value of other financial liabilities is estimated by credit risk and remaining maturities.
iii) The Company enters into derivative financial instruments with various counterparties, principally financial
institutions with investment grade credit ratings. Derivative financials instruments are valued based on quoted
prices for similar assets and liabilities in active markets or inputs that are directly or indirectly observable in the
marketplace.
Capital Management
The Company manages its capital to ensure that it will be able to continue as a going concern while maximising the
return to stake holders to optimise equity. The Company's Corporate Treasury reviews the capital structure on a
quarterly basis.
The capital structure of the company consists of only equity as of March 31, 2025 and March 31, 2024. The company
is not subject to any externally imposed capital requirements.
Financial risk management
The Company's Corporate Treasury function provides services to the business, coordinates access to domestic and
international financial markets, monitors and manages the financial risks relating to the operations of the Company
through internal risk reports which analyse exposures by degree and magnitude of risk.
The Company's primary focus is to foresee the unpredictability of financial markets and seek to minimize potential
adverse effects on its financial performance. The primary market risk to the company is foreign exchange risk along
with credit risk and liquidity risk .
The Company seeks to minimise the effects of these forex by hedging the forex exposures through forward
contracts, liquidity risk by diversifying its investments in various schemes of debt mutual funds and fixed deposits.
The Company manages its credit risks by monitoring the credit rating of the customers, banks and mutual funds.
Corporate Treasury Function reports quarterly to the Company's risk management committee, an independent body
that monitors risks and policies implemented to mitigate risk exposures.
Market Risk
Market risk is the risk of any loss in future earnings, in realizable fair values or in future cash flows that may result
from a change in the price of a financial instrument. The value of a financial instrument may change as a result of
changes in the interest rates, foreign currency exchange rate, equity price fluctuations, liquidity and other market
changes. Future specific market movements cannot be normally predicted with reasonable accuracy.
(i) 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 Company's exposure to the risk of changes in market interest rates relates
primarily to Company's investments. The Company's investments are primarily short term, which do not expose it to
significant interest rate risk.
(ii) Foreign currency exchange rate risk:
The fluctuation in foreign currency exchange rates may have potential impact on the income statement and equity,
where any transaction references more than one currency or where assets/liabilities are denominated in a currency
other than the functional currency of the respective foreign operations. The company enters into forward foreign
exchange contracts to hedge its exposure to foreign currency risk arising on the net export of services.
*Other currencies include Bangladeshi taka (BDT), Egyptian pound (EGP), Brazilian real (BRL), Canadian dollor
(CAD), Mexican peso (MXN), Malaysian ringgit (MYR), Singapore dollor ( SGD), Colombian peso (COP), Peruvian sol
(PEN), South African rand (ZAR) etc.
Sensitivity analysis
A reasonably possible strengthening (weakening) of the US dollar, EUR, against all other currencies at 31 Mar 2025
would have affected the measurement of financial instruments denominated in a foreign currency and affected
equity and profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular
interest rates, remain constant.
In respect of the Company's forward contracts, a 1% decrease/increase in the respective exchange rates of each of
the currencies underlying such contracts would have resulted in:
a) an approximately 0.12% increase and (0.12%) decrease in the Company's net profit and approximately 0.4%
increase and (0.4%) decrease in equity as at March 31, 2025;
b) an approximately 0.20% increase and (0.20%) decrease in the Company's net profit and approximately 0.05%
increase and (0.05%) decrease in equity as at March 31, 2024;"
Credit risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails
to meet its contractual obligations, and arises principally from the Company's receivables from customers and
investment securities. Credit risk arises from cash held with banks and financial institutions, as well as credit exposure
to clients, including outstanding accounts receivable. The maximum exposure to credit risk is equal to the carrying
value of the financial assets. The objective of managing counterparty credit risk is to prevent losses in financial
assets. Credit risk encompasses both the direct risk of default and the risk of deterioration of creditworthiness as
well as concentration risks. The Company assesses the credit quality of the counterparties, taking into account their
financial position, past experience and other factors.
i) Trade and other receivables
The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer. The
demographics of the customer, including the default risk of the industry and country in which the customer operates,
also has an influence on credit risk assessment. The following table gives details in respect of revenues generated
from top customer and customers individually accounting for more than 10% of the total revenue of the Company:
two customer for the year ended March 31, 2025 (2 customers for the year ended March 31, 2024) accounted for more
than 10% of the revenue. No other single customer contributed 10% or more of the Company's revenue for both
2024-25 and 2023-24.
Customer credit risk is managed as per the Company's established policy, procedures and control relating to customer
credit risk management. Credit quality of a customer is assessed based on an extensive credit rating scorecard and
individual credit limits are defined in accordance with this assessment.
As per Ind AS 109, the Company uses the expected credit loss model to assess the impairment loss. In determining
the impairment allowance (Loss allowances for doubtful debts), the Company has used a practical expedient by
computing the expected credit loss allowance for trade receivables based on a provision matrix. The provision matrix
takes into account historical credit loss experience as well as the current economic conditions and is adjusted for
forward looking information. The expected credit loss allowance is based on the ageing of the receivables that are
due and allowance rates used in the provision matrix.
An impairment analysis is performed at each reporting date on an individual basis for major customers. Outstanding
customer receivables are regularly and closely monitored basis the historical trend and the Company provides for any
outstanding receivables beyond 365 days which are doubtful.
The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets
disclosed below. The Company does not hold collateral as security. The Company evaluates the concentration of risk
with respect to trade receivables as low on the basis of past default rates of its customers.
ii) Investments
The Group limits its exposure to credit risk by generally investing in liquid securities and only with counterparties
that have rating of AA/AAA. The Group does not expect any losses from non-performance by these counter¬
parties, and does not have any significant concentration of exposures to specific industry sectors.
Liquidity risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due.
The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available
for use as per requirements. The Company manages its liquidity risk by ensuring, as far as possible, that it will
always have sufficient liquidity to meet its liabilities when due. The Company's corporate treasury department
is responsible for liquidity management, funding as well as settlement management. In addition, processes and
policies related to such risks are overseen by senior management.
43 Subsequent event
The Company has evaluated subsequent events and determined that there have been no events that have occurred that
would require adjustments to these standalone financial statements.
As per our report of even date attached For and on behalf of the Board of Directors of Onmobile Global Limited
For B S R & Co. LLP (CIN: L64202KA2000PLC027860)
Chartered Accountants
Firm registration number: 101248W/W-100022
Praveen Kumar Jain Fran^ois-Charles Sirois Ajai Puri
Partner Executive Chairman & Global CEO Director
Membership Number- 079893 DIN- 06890830 DIN- 06527868
Place: Bengaluru Place: Madrid Place: Gurgaon
Date: May 20, 2025 Date: May 20, 2025 Date: May 20, 2025
Radhika Venugopal P V Varaprasad
Chief Financial Officer Company Secretary
M No- FCS 5877
Place: Bengaluru Place: Bengaluru
Date: May 20, 2025 Date: May 20, 2025
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