U. Provisions and contingencies
A provision is recognised when the Company
has a present legal obligation as a result of a
past event and it is probable that an outflow of
resources will be required to settle the obligation,
in respect of which a reliable estimate can be
made. Provisions, excluding retirement benefits,
are not discounted to their present value and
are determined based on the best estimate
required to settle the obligation at the balance
sheet date. These are reviewed at each balance
sheet date and adjusted to reflect the current
best estimates.
Contingent losses arising from claims other than
insurance claims, litigation, assessment, fines,
penalties, etc. are recorded when it is probable
that a liability has been incurred and the amount
can be reasonably estimated.
A disclosure for a contingent liability, other than
those under policies, is made when there is a
possible obligation or a present obligation that
may not result in an outflow of resources.
Show cause notices / summons issued by various
government authorities are not considered as
obligations. When demand notices are raised
against such show cause notices and are
disputed by the Company, these are classified
as disputed obligations.
When there is a possible obligation or a present
obligation, in respect of which, the likelihood of
outflow of resources is remote, no provision or
disclosure is made.
Contingent liabilities are not recognised in the
Financial Statements.
Contingent assets are neither recognised nor
disclosed in the Financial Statements.
V. Receipts and payments account & cash
and cash equivalents
Receipts and Payments Account has been
prepared as prescribed by IRDAI (Actuarial,
Finance and Investment Functions of Insurers)
Regulations, 2024 under the ‘Direct method’
in accordance with Accounting Standard 3
on Cash Flow Statements notified under the
Section 133 of the Companies Act.
Cash and cash equivalents
Cash comprises cash on hand, cheques on
hand and demand deposits with banks. Cash
equivalents are term deposits with an original
maturity of three months or less from the date
of acquisition, highly liquid investments that are
readily convertible into known amount of cash
and which are subject to an insignificant risk of
change in value.
W. Expenses related to issue of securities
Expenses related to issue of Securities are
adjusted against the share premium (securities
premium) account as per section 52 of
Companies Act, 2013.
1. During the year ended March 31, 2026 Go Digit has received Income Tax Assessment Order for FY 2022-23
with a Notice of demand resulting into an addition of Rs.38,443 lakhs in contingent liability (inclusive of
interest) on account of disallowance of certain expenses as inadmissible and on account of non-deduction
of TDS. Company has been advised that the adopted tax position is legally tenable being an industry wise
issue. Appeal against the same has been filed before the appropriate authority.
2. Contingent Liability includes demand of Rs.17,029 lakhs (inclusive of penalty) from Chennai South
Commissionerate towards GST applicability on coinsurance inward premium and reinsurance commission on
reinsurance ceded, originally initiated by DGGI Kolhapur. Matter relates to an industry wide issue and in view
of statutory clarification issued by the Ministry of Finance and the consistent favorable judicial precedents,
management is of the view that the matter is not legally tenable.
3. The company has contingent liability of Rs.1,166 lakhs on account of ongoing enquiry by DGGI Mumbai
Zonal Unit with respect to group health insurance policies issued to SEZ Unit and developers, not eligible for
benefit of zero-rated tax. At present, matter is being kept in abeyance, awaiting the outcome of an industry
wide writ petition filed before Bombay High Court. Accordingly, no immediate financial implication arises for
the Company.
4. Encumbrances on assets
The assets of the Company are free from all encumbrances except for fixed deposit as on March 31, 2026 amount
to ^ 31 Lakhs (as on March 31, 2025 - ^ 29 Lakhs) which is placed under lien against bank guarantee issued by
the banks.
5. Capital commitments
Outstanding capital commitments as on March 31, 2026 amount to ^ 2,906 Lakhs (as on March 31, 2025 - ^ 1,587
Lakhs).
6. Claims
All claims net of reinsurance ceded are incurred and paid in India.
7. Claims where the payment period exceeds four years are Nil (for the year ended
March 31, 2025 - Nil)8. Premium
All premium net of reinsurance is written and received in India.
Premium income recognised on varying risk pattern is Nil (for the year ended March 31, 2025 - Nil).
9. Extent of risks retained and reinsured
Extent of risk retained and reinsured with respect to gross written premium (excluding excess of loss reinsurance
and catastrophe reinsurance premium of ^ 4,862 lakhs (for the year ended March 31, 2025 ^ 4,204 lakhs) is set
out below
11. Managerial Remuneration
Pursuant to the Master Circular on Corporate Governance for Insurers, 2024 issued by the Insurance Regulatory
and Development Authority of India (IRDAI), the Company has adopted revised policies on the appointment and
remuneration of Directors and employees. These policies have been implemented in substitution of the Company’s
erstwhile remuneration policy, in order to align the remuneration framework with the applicable IRDAI regulations
and the Master Circular on Corporate Governance.
No remuneration has been paid to the Non-Executive/Independent directors of the company for financial year
2025-2026 except sitting fees paid for meetings attended.
Expenses towards gratuity and compensated absences provision are determined actuarially on an overall
company basis and accordingly have not been considered in the above information. In addition to the above MD &
CEO and KMPs are entitled to ESOP under the Company’s ESOP Scheme. During the year ended March 31, 2026
Company has granted - 129,274 ESOP’s to MD & CEO & 596,594 to KMPs (For the year ended March 31, 2025 -
21,852 ESOP’s to MD & CEO and 1,85,879 to KMPs).
12. Assets taken on lease
The Company takes commercial premises on lease as well as enters into integrated facilities services agreements
for ‘pay as you go’ model. The minimum lease payments to be made in future towards non-cancellable lease
agreements are as follows:
20. Loan restructuring
The Company has not given any loans as on March 31, 2026 (as on March 31, 2025 - Nil)
21. Summary of Financial Statements
The summary of Financial Statements is included as Annexure VI.
22. Foreign exchange gain / (loss) net
During the year ended March 31, 2026 foreign exchange net loss incurred by the Company is ^ 107 Lakhs (for the
year ended March 31, 2025 net gain ^ 30 Lakhs) which is netted off in Schedule 4 under the heading ‘Miscellaneous
expenses’.
As at March 31, 2026, foreign currency exposure is ^ 1,218 Lakhs (For year ended March 31, 2025 ^ 931 Lakhs).
26. Premium deficiency
Premium deficiency for the Company as on March 31, 2026 is Nil (as on March 31, 2025- Nil) in accordance with
the applicable provisions of the IRDAI Actuarial, Finance and Investment Functions of Insurers Regulations, 2024
read with Master Circular issued their under Actuarial & Allied Functions, 2024.
27. Statement showing age-wise analysis of unclaimed amounts of policyholders
The Statement is included as Annexure VII.
32. Investor Education & Protection Fund
For the year ended March 31, 2026 & March 31, 2025 the Company is not required to transfer any amount into the
Investor Education & Protection Fund.
33. Disclosure of other work given to auditors
Pursuant to Master Circular on Corporate Governance for Insurers, 2024 issued by IRDAI on May 22, 2024, the
services of statutory auditors are disclosed below
29. Provision for free look period
As on March 31, 2026, the provision for free look period is ^ 0.13 Lakhs (as on March 31, 2025 ^ 0.12 Lakhs), as
certified by Appointed Actuary.
30. Litigations
The Company’s pending litigations/proceedings comprise of claims against the Company in various tribunals/
courts, proceedings pending with Tax Authorities and the Company’s/counterparty’s appeal against orders
of lower courts/tribunals/tax authorities. The Company has reviewed all pending litigation/proceedings and
ensured adequate provisions, wherever required and disclosed the contingent liabilities, wherever applicable, in
its financial statements. The Company does not expect any material impact on its financial position with respect
to the outcome of such litigations/proceedings (as on March 31, 2025 - Nil). (Refer Note no.3 of Schedule 16 for
details on contingent liabilities).
31. Long term contracts
As on March 31, 2026 the Company did not have any outstanding long term derivative contracts. (as on March 31,
2025 - Nil)
35. Share Capital
During the year ended March 31, 2026, the Company, pursuant to it’s Employee Stock Option Plan, allotted
876,621 equity shares of ^ 10 each at face value of ^ 10 per share; 219,689 equity shares of ^ 10 each at a
premium of ^ 17 per share ; 213,734 equity shares of ^ 10 each at a premium of ^ 65 per share ; 151,893 equity
shares of ^ 10 each at a premium of ^ 162 per share; 3,419 equity shares of ^ 10 each at a premium of ^ 273 per
share; 7,741 equity shares of ^ 10 each at a premium of ^ 304 per share.
The Company has allotted 4,13,60,294 Equity Shares of ^ 10 each at a premium of ^262 through the Initial Public
Offer during the year ended March 31, 2025.
During the year ended March 31, 2025, the Company, pursuant to it’s Employee Stock Option Plan, allotted
27,07,578 equity shares of ^ 10 each at face value of ^ 10 per share; 24,92,633 equity shares of ^ 10 each at a
premium of ^ 17 per share ; 11,18,816 equity shares of ^ 10 each at a premium of ^ 65 per share ; 1,64,569 equity
shares of ^ 10 each at a premium of ^ 162 per share; 15,587 equity shares of ^ 10 each at a premium of ^ 304 per
share; 2,053 equity shares of ^ 10 each at a premium of ^ 375 per share.
Share Application Money pending allotment as on March 31, 2026 amounts to Nil (as on March 31, 2025- Nil).
36. Impact of Code on Social Security, 2020 and Other New Labour Codes
The Government of India has notified new Labour Code viz Code on wages 2019, Code on Social Security 2020,
Industrial Relation Code 2020, and Occupational Safety, Health and Working Condition Code 2020 (collectively
referred to as the New Labour Codes). These Codes have been made effective from November 21, 2025.
The Company reassessed its employee benefit obligations based on the revised definition of wages and
expanded eligibility criteria. An incremental gratuity expense of ^ 733 lakhs was recognized as past service cost
during the year ended March 31, 2026, reducing profit and increasing gratuity obligations. As of March 31, 2026,
unrecognized past service cost relating to gratuity obligations amounted to ^ 196 lakhs.
37. Borrowings (Non-Convertible Debentures)
On December 11, 2023 & March 14, 2024, The Board of Directors of the Company have approved raising of capital
by issuance of Unsecured, Unrated, Unlisted, Subordinated Redeemable Bonds in the nature of Non-Convertible
Debentures (“NCDs”) of ^ 20,000 Lakhs & ^ 15,000 lakhs on a private placement basis, in accordance with the
provisions of the IRDAI (Other Forms of Capital) Regulations, 2022, and the Companies Act, 2013.
38. Contribution To Environment Relief Fund
During the year, an amount of ^ 54 Lakhs (Previous year ^ 5 Lakhs) was collected towards Environment Relief
Fund for public liability policies and an amount of ^ 53 Lakhs (Previous year ^ 6 Lakhs) has been transferred
to “Central Pollution Board”, “Environment Fund Account” as per Notification of Environment Relief Fund (ERF)
scheme under the Public Liability Insurance Act, 1991 as amended. The balance amount of ^ 0.5 Lakhs (Previous
year ^ 0.5 Lakhs) is included under statutory dues payable in Schedule 13.
39. Disclosure on Expenses Of Management
In line with IRDAI (Expenses of Management, including Commission, of Insurers) Regulations, 2024, the Company’s
expenses relating to the insurance business is in excess of regulatory limits for the year ended March 31, 2026,
the company has applied for forbearance for previous year and is in process of applying for forbearance for the
current year, as available under the regulatory framework, which is currently under consideration with IRDAI.
Further In accordance with the IRDAI Regulations, operating expenses in excess of prescribed limits are
required to be shown under ‘Other Income’ as ‘Contribution from Shareholders Funds towards Excess EOM’ and
simultaneously to be charged to Profit & Loss account as ‘Contribution to Policyholders Funds towards Excess
EOM’. Accordingly operating expenses in excess of overall limits of ^ 46,873 Lakhs (previous year - operating
expenses in excess of overall limits of ^ 32,401 Lakhs) is reported as other income under Miscellaneous segment
of the revenue account.
40. Disclosure on Audit Trail
The Company has implemented a framework to identify relevant applications from the overall IT universe as
"Books of account” as per the Companies Act 2013. The Company’s books of account maintained electronically
comply with the requirements of the Companies Act 2013, read with relevant rules and notifications, except: -
(a) The Company has enabled database level audit trail (edit logs) feature for its accounting on August 05, 2024
and investment management application on June 12, 2024. Access of personnel to database is severely
restricted, provided only on exceptional basis and is well documented during financial year 2025-26. The
application-level audit trail (edit logs) feature was operating effectively during the whole financial year 2025¬
26.
(b) Company has enabled audit trail (edit logs) feature for all identified financial accounting tables on 07 Jun
2024 for policy and claims administration system.
41. Disclosures pursuant to Rule 3(1) of the Companies (Accounts) Rules, 2014:-
The Company has not advanced or loaned or invested (either from borrowed funds or share premium or any other
sources or other kind of funds) to or in any other person or entity, including foreign entity ("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;
The Company has not received any funds from any person or entity, including foreign entity ("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 Party
("Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries
42. Details of Regrouping/Reclassification
Interest income earned on fixed deposits, earlier classified under "Investment Income”, has been reclassified
and presented under "Other Income” based on a reassessment of the nature and purpose of such deposits.
The corresponding prior-year comparatives have been regrouped to maintain consistency in presentation. The
reclassification is limited to presentation only and has no impact on the Company’s total income or profit.
43. Expenses other than those related to Insurance Business (profit and loss account):
Expenses other than those related to insurance business includes, director sitting fees, shareholders charge
for brand value creation expenses, managerial remuneration, audit fee payable for special purpose financial
statements, provision for tax matters, investor engagement expenses, investment operations expenses related to
shareholders funds, rent equalisation levy and ESOPs fair value charge.
44. Proposed Scheme of Amalgamation
The Board of Directors of the Company, at its meeting held on December 19, 2025, has approved in principle a
proposal for the amalgamation of Go Digit Infoworks Services Private Limited ("Transferor Company”) into the
Company, subject to receipt of requisite statutory, regulatory, shareholder, creditor and judicial approvals, as may
be applicable. The proposed amalgamation is intended to be implemented through a Scheme of Amalgamation
under Sections 230 to 232 of the Companies Act, 2013,("Scheme”) and is subject to, inter alia:
• approval of the shareholders and creditors of the respective companies, as may be directed;
• approvals from the stock exchange(s), Securities and Exchange Board of India ("SEBI”), Insurance Regulatory
and Development Authority of India ("IRDAI”), the Competition Commission of India ("CCI”), and other
regulatory authorities, as applicable; and
• sanction of the Hon’ble National Company Law Tribunal (NCLT).
As on the date of approval of these financial statements, the proposed Scheme is under process and has not
yet become effective. Accordingly, no accounting impact of the proposed amalgamation has been given effect
to in these financial statements. The Company will appropriately account for and disclose the effects of the
amalgamation in accordance with applicable accounting standards, upon the Scheme becoming effective.
As per the Scheme, the Appointed Date and the Effective Date are proposed to be the same.
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