INDEPENDENT AUDITOR’S REPORT

To the Members of HT Mobile Solutions Limited

Report on the Audit of the Financial Statements

Opinion
We have audited the financial statements of HT Mobile Solutions Limited (“the Company”), which
comprise the balance sheet as at 31 March 2020, and the statement of profit and loss (including other
comprehensive income), statement of changes in equity and statement of cash flows for the year then
ended, and notes to the financial statements, including a summary of the significant accounting policies
and other explanatory information.
In our opinion and to the best of our information and according to the explanations given to us, the
aforesaid financial statements, give the information required by the Companies Act, 2013 (“Act”) in the
manner so required and give a true and fair view in conformity with the accounting principles generally
accepted in India, of the state of affairs of the Company as at 31 March 2020, and profit and other
comprehensive income, changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section
143(10) of the Act. Our responsibilities under those SAs are further described in the Auditor’s
Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the
Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India
together with the ethical requirements that are relevant to our audit of the financial statements under the
provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in
accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion on the financial statements.

Other Information

The Company’s management and Board of Directors are responsible for the other information. The other
information comprises the information included in the Company’s annual report, but does not include the
financial statements and our auditor’s report thereon.

Our opinion on the financial statements does not cover the other information and we do not express any
form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
1
 statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based
on the work we have performed, we conclude that there is a material misstatement of this other information,
we are required to report that fact. We have nothing to report in this regard.

Management's and Board of Directors’ Responsibility for the Financial Statements

The Company’s Management and Board of Directors are responsible for the matters stated in section
134(5) of the Act with respect to the preparation of these financial statements that give a true and fair view
of the state of affairs, profit/loss and other comprehensive income, changes in equity and cash flows of the
Company in accordance with the accounting principles generally accepted in India, including the Indian
Accounting Standards (Ind AS) specified under section 133 of the Act. This responsibility also includes
maintenance of adequate accounting records in accordance with the provisions of the Act for
safeguarding of the assets of the Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting policies; making judgments and
estimates that are reasonable and prudent; and design, implementation and maintenance of adequate
internal financial controls that were operating effectively for ensuring accuracy and completeness of the
accounting records, relevant to the preparation and presentation of the financial statements that give a true
and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Management and Board of Directors are responsible for assessing
the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless the Board of Directors either intends to
liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The Board of Directors is also responsible for overseeing the Company’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise
from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional
skepticism throughout the audit. We also:

 Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or
error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for
expressing our opinion on whether the company has adequate internal financial controls with reference to
financial statements in place and the operating effectiveness of such controls.

 Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures in the financial statements made by the Management and Board of Directors.

2
 Conclude on the appropriateness of the Management and Board of Directors use of the going concern
basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt on the Company’s ability to continue as a
going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our
auditor’s report to the related disclosures in the financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the
date of our auditor’s report. However, future events or conditions may cause the Company to cease to
continue as a going concern.

 Evaluate the overall presentation, structure and content of the financial statements, including the
disclosures, and whether the financial statements represent the underlying transactions and events in a
manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies in internal
control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant
ethical requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable, related
safeguards.

Other Matter
We draw your attention to the fact that corresponding figures for the year ended 31 March 2019 are based
on previously issued financial statements of the Company that were audited by the predecessor auditor who
expressed an unmodified opinion on those financial statements dated 8 May 2019.

Our opinion on the financial statements, and our report on Other Legal and Regulatory Requirements
below, is not modified in respect of the above matter.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order, 2016 (“the Order”) issued by the Central
Government in terms of section 143 (11) of the Act, we give in the “Annexure A” a statement on the
matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.

2. (A) As required by Section 143(3) of the Act, we report that:

a) We have sought and obtained all the information and explanations which to the best of our
knowledge and belief were necessary for the purposes of our audit.

b) In our opinion, proper books of account as required by law have been kept by the Company so far
as it appears from our examination of those books.

c) The balance sheet, the statement of profit and loss (including other comprehensive income), the
statement of changes in equity and the statement of cash flows dealt with by this Report are in
agreement with the books of account.

d) In our opinion, the aforesaid financial statements comply with the Ind AS specified under section
133 of the Act.
3
 e) On the basis of the written representations received from the directors as on 31 March 2020 taken
on record by the Board of Directors, none of the directors is disqualified as on 31 March 2020
from being appointed as a director in terms of Section 164(2) of the Act.

f) With respect to the adequacy of the internal financial controls with reference to financial
statements of the Company and the operating effectiveness of such controls, refer to our separate
Report in “Annexure B”.

(B) With respect to the other matters to be included in the Auditors’ Report in accordance with Rule 11
of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our
information and according to the explanations given to us:

i. The Company does not have any pending litigations as at 31 March 2020 which would
impact its financial position;

ii. The Company did not have any long-term contracts including derivative contracts for which
there were any material foreseeable losses.

iii. There were no amounts which were required to be transferred to the Investor Education and
Protection Fund by the Company.

iv. The disclosures in the financial statements regarding holdings as well as dealings in specified
bank notes during the period from 8 November 2016 to 30 December 2016 have not been
made in these financial statements since they do not pertain to the financial year ended 31
March 2020.

(C) With respect to the matter to be included in the Auditor’s Report under section 197(16):

In our opinion and according to the information and explanations given to us, there are no directors
to whom remuneration is paid / payable in accordance with the provisions of Section 197 of the
Act. The Ministry of Corporate Affairs has not prescribed other details under Section 197(16)
which are required to be commented upon by us.

For B S R and Associates

Chartered Accountants
Firm's Registration No.: 128901W

Rajesh Arora
Place: Gurugram Partner
Date: 25 June 2020 Membership No. : 076124
UDIN: 20076124AAAABQ2879

4
Annexure A referred to in our Independent Auditor’s Report to the members of HT Mobile Solutions
Limited on the financial statements for the year ended 31 March 2020

(a) The Company has maintained proper records showing full particulars, including quantitative
details and situation of fixed assets.

(b) The Company has a regular programme of physical verification of its fixed assets by which all
fixed assets are verified in a phased manner over a period of three years. In our opinion, this
periodicity of physical verification by management is reasonable having regard to the size of
the Company and the nature of its assets. In accordance with this programme, certain fixed
assets were physically verified during the year. As informed to us, no material discrepancies
were noticed on such verification.

(c) According to the information and explanations given to us, the Company does not have any
immovable properties. Accordingly, paragraph 3(i)(c) of the Order is not applicable.

(i) The Company is in the business of rendering services and does not hold inventory.
Accordingly, paragraph 3(ii) of the Order is not applicable to the Company.

(ii) According to the information and explanations given to us, the Company has not granted any
loan, secured or unsecured to companies, firms, limited liability partnerships or other parties
covered in the register maintained under Section 189 of the Companies Act, 2013.
Accordingly, paragraph 3(iii) of the Order is not applicable.
(iii) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, there are no loans given or investments made by
the Company which are not in compliance with Section 185 and 186 of the Companies Act,
2013. There are no guarantees given or securities provided by the Company as specified under
Section 185 and 186 of the Companies Act, 2013.
(iv) As per the information and explanations given to us, the Company has not accepted any
deposits as mentioned in the directives issued by the Reserve Bank of India and the provisions
of Section 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the rules
framed there under. Accordingly, paragraph 3(v) of the Order is not applicable.
(v) According to the information and explanations given to us, the Central Government has not
prescribed the maintenance of cost records under sub-section (1) of Section 148 of the
Companies Act, 2013, for any of the services rendered by the Company. Accordingly,
paragraph 3(vi) of the Order is not applicable.
(vi) (a) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, amounts deducted/ accrued in the books of
account in respect of undisputed statutory dues including provident fund, income tax, goods
and services tax, duty of customs, cess, professional tax and other statutory dues have been
regularly deposited during the year by the Company with the appropriate authorities. As
explained to us, the Company did not have any dues on account of sales tax, service tax,
employees’ state insurance, duty of excise and value added taxes.
 According to the information and explanations given to us, no undisputed amounts payable in
respect of provident fund, income tax, goods and services tax, duty of customs, cess,
professional tax and other statutory dues were in arrears as at 31 March 2020 for a period of
more than six months from the date they became payable.

(b) According to the information and explanations given to us, there are no dues of income tax,
service tax, goods and services tax, sales tax, value added tax and duty of customs which have
not been deposited by the Company with the appropriate authorities on account of any dispute
as at 31 March 2020

(vii) According to the information and explanations given to us and on the basis of our examination
of the records of the Company, the Company has not taken any loans or borrowings from
financial institutions, banks and government and has not issued any debentures. Accordingly,
paragraph 3 (viii) of the Order is not applicable to the Company.
(viii) The Company has not raised any money by way of initial public offer or further
public offer (including debt instruments) and terms loans during the year.
Accordingly, paragraph 3(ix) of the Order is not applicable to the Company.
(ix) According to the information and explanations given to us, no material fraud by the
Company or on the Company by its officers or employees has been noticed or
reported during the course of our audit.
(x) According to information and explanations given to us and on the basis of our
examination of the records of the Company, there are no directors to whom remuneration
is paid / payable in accordance with the provisions of Section 197 of the Act. Accordingly,
paragraph 3(xi) of the Order is not applicable to the Company.
(xi) According to the information and explanations given to us, the Company is not a
nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.
(xii) In our opinion and according to the information and explanations given to us and on
the basis of our examination of the records of the Company, the transactions with the
related parties are in compliance with Sections 177 and 188 of the Companies Act,
2013, where applicable and the details have been disclosed in the financial
statements as required by the applicable accounting standards.
(xiii) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the Company has not made any
preferential allotment or private placement of shares or fully or partly convertible
debentures during the current year. Accordingly, paragraph 3(xiv) of the Order is
not applicable.
(xiv) According to information and explanations given to us, the Company has not entered
into any non-cash transactions with directors or persons connected with them.
Accordingly, paragraph 3(xv) of the Order is not applicable.
 (xv) According to the information and explanations given to us, the Company is not required to be
registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly,
paragraph 3(xvi) of the Order is not applicable.

For B S R and Associates

Chartered Accountants
Firm's Registration No.: 128901W

Rajesh Arora
Place: Gurugram Partner
Date: 25 June 2020 Membership No. : 076124
UDIN: 20076124AAAABQ2879
Annexure B to the Independent Auditor’s report on the financial statements of HT Mobile
Solutions Limited for the year ended 31 March 2020.

Report on the internal financial controls with reference to the aforesaid financial statements under
Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013

(Referred to in paragraph 1(A)(f) under ‘Report on Other Legal and Regulatory Requirements’
section of our report of even date)

Opinion

We have audited the internal financial controls with reference to financial statements of HT Mobile
Solutions Limited (“the Company”) as of 31 March 2020 in conjunction with our audit of the financial
statements of the Company for the year ended on that date.

In our opinion, the Company has, in all material respects, adequate internal financial controls with
reference to financial statements and such internal financial controls were operating effectively as at 31
March 2020, based on the internal financial controls with reference to financial statements criteria
established by the Company considering the essential components of internal control stated in the
Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute
of Chartered Accountants of India (the “Guidance Note”).

Management’s Responsibility for Internal Financial Controls

The Company’s management and the Board of Directors are responsible for establishing and maintaining
internal financial controls based on the internal financial controls with reference to financial statements
criteria established by the Company considering the essential components of internal control stated in the
Guidance Note. These responsibilities include the design, implementation and maintenance of adequate
internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of
its business, including adherence to company’s policies, the safeguarding of its assets, the prevention and
detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely
preparation of reliable financial information, as required under the Companies Act, 2013 (hereinafter
referred to as “the Act”).

Auditor’s Responsibility

Our responsibility is to express an opinion on the Company's internal financial controls with reference to
financial statements based on our audit. We conducted our audit in accordance with the Guidance Note
and the Standards on Auditing, prescribed under section 143(10) of the Act, to the extent applicable to an
audit of internal financial controls with reference to financial statements. Those Standards and the
Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether adequate internal financial controls with reference to financial
statements were established and maintained and whether such controls operated effectively in all material
respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal
financial controls with reference to financial statements and their operating effectiveness. Our audit of
internal financial controls with reference to financial statements included obtaining an understanding of
such internal financial controls, assessing the risk that a material weakness exists, and testing and

1
evaluating the design and operating effectiveness of internal control based on the assessed risk. The
procedures selected depend on the auditor’s judgement, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinion on the Company’s internal financial controls with reference to financial statements.

Meaning of Internal Financial controls with Reference to Financial Statements

A company's internal financial controls with reference to financial statements is a process designed to
provide reasonable assurance regarding the reliability of financial reporting and the preparation of
financial statements for external purposes in accordance with generally accepted accounting principles. A
company's internal financial controls with reference to financial statements include those policies and
procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly
reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance
that transactions are recorded as necessary to permit preparation of financial statements in accordance
with generally accepted accounting principles, and that receipts and expenditures of the company are
being made only in accordance with authorisations of management and directors of the company; and (3)
provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or
disposition of the company's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial controls with Reference to Financial Statements

Because of the inherent limitations of internal financial controls with reference to financial statements,
including the possibility of collusion or improper management override of controls, material
misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of
the internal financial controls with reference to financial statements to future periods are subject to the
risk that the internal financial controls with reference to financial statements may become inadequate
because of changes in conditions, or that the degree of compliance with the policies or procedures may
deteriorate.

For B S R and Associates

Chartered Accountants
Firm's Registration No.: 128901W

Rajesh Arora
Place: Gurugram Partner
Date: 25 June 2020 Membership No. : 076124
UDIN: 20076124AAAABQ2879
 HT Mobile Solutions Limited
Balance sheet as at March 31, 2020
Notes As at As at
March 31, 2020 March 31, 2019
(Rs. in '000) (Rs. in '000)

I ASSETS
1) Non-current assets
(a) Property, plant and equipment 3 469 722
(b) Intangible assets 4 299 548
(c) Financial assets
(i) Investments 5A 6,000 -
(d) Deferred tax assets (net) 15 50,141 57,093
(e) Income tax assets (Net) 6 44,544 41,282
Total non- current assets 101,453 99,645
2) Current assets
(a) Financial assets
(i)Trade receivables 7A 4,423 110,189
(ii)Cash and cash equivalents 7B 23,333 57,012
(iii)Bank balances other than (ii) above 8 - 22,500
(iv)Loans 5B 30,150 150
(v)Other financial assets 5C 44,129 20,077
(b) Other current assets 9 119,969 77,337
Total current assets 222,004 287,265
TOTAL ASSETS 323,457 386,910

II EQUITY AND LIABILITIES

1) Equity
(a) Equity share capital 10 354,586 354,586
(b) Other equity 11 (153,341) (168,215)
Total equity 201,245 186,371

2) Liabilities
Non-current liabilities
(a) Provisions 13 472 298
Total Non-current liabilities 472 298
Current liabilities
(a) Financial liabilities
(i) Trade payables
a) Total outstanding dues of micro enterprises and 12A - 137
small enterprises
b) Total outstanding dues of creditors other than 12A 111,035 196,583
micro enterprises and small enterprises
(ii) Other financial liabilities 12B 8,141 1,246
(b) Provisions 13 96 86
(c) Other current liabilities 14 2,468 2,189
Total current liabilities 121,740 200,241
Total liabilities 122,212 200,539
TOTAL EQUITY AND LIABILITIES 323,457 386,910
Summary of significant accounting policies 2

See accompanying notes to the financial statements.

In terms of our report of even date attached
For and on behalf of the Board of Directors of HT Mobile Solutions Limited

For B S R and Associates

Chartered Accountants
(ICAI Firm registration Number: 128901W)

Rajesh Arora Piyush Gupta Umesh Sharma

Partner Director Director
Membership No. 076124 (DIN: 03155591) (DIN: 01490553)

Place: New Delhi Zairus Master Rahul Garg

Date: June 25, 2020 Chief Executive Officer Chief Financial Officer
 HT Mobile Solutions Limited
Statement of Profit and Loss for the year ended March 31, 2020
Particulars Notes Year ended Year ended
March 31, 2020 March 31, 2019
(Rs. in '000) (Rs. in '000)

I Income
a) Revenue from operations 16 227,548 181,274
b) Other Income 17 7,139 8,490
Total Income 234,687 189,764

II Expenses
a) Employee benefits expense 18 8,914 9,825
b) Finance costs 19 125 53
c) Depreciation and amortization expense 20 346 1,472
d) Other expenses 21 203,421 153,496
Total expenses 212,806 164,846
III Profit before tax (I-II) 21,881 24,918
IV Earnings before interest, tax, depreciation and amortization 22,352 26,442
(EBITDA) [III+II(b)+II(c)]
V Tax expense:
(1) Current tax 15 - -
(2) Deferred tax charge/(credit) 15 6,966 (57,093)
[Adjustment of deferred charge/(credit) tax related to earlier years of INR
1,017 thousands {Previous Year-Nil}]
Total tax expense 6,966 (57,093)
VI Profit for the year and attributable to owners (III-V) 14,915 82,011

VII OTHER COMPREHENSIVE INCOME

Items that will not to be reclassified subsequently to profit or loss
- Remeasurement of defined benefit plans 22 (55) 204
- Income tax effect 14 -

Other comprehensive income for the year and attributable to (41) 204
owners, net of tax

VIII Total Comprehensive Income for the year and attributable to 14,874 82,215
owners, net of tax (VI+VII)
IX Earnings per equity share

Basic (Nominal value of shares Rs. 10/-) 23 0.42 2.31

Diluted (Nominal value of shares Rs. 10/-) 23 0.42 2.31

Summary of significant accounting policies 2

See accompanying notes to the financial statements.

In terms of our report of even date attached
For and on behalf of the Board of Directors of HT Mobile Solutions Limited
For B S R and Associates
Chartered Accountants
(ICAI Firm registration Number: 128901W)

Rajesh Arora Piyush Gupta Umesh Sharma

Partner Director Director
Membership No. 076124 (DIN: 03155591) (DIN: 01490553)

Place: New Delhi Zairus Master Rahul Garg

Date: June 25, 2020 Chief Executive Officer Chief Financial Officer
HT Mobile Solutions Limited
Cash Flow Statement for the year ended March 31, 2020

Particulars Year ended Year ended

March 31, 2020 March 31, 2019
(Rs. in '000) (Rs. in '000)

Cash flows from operating activities:

Profit before tax 21,881 24,918

Adjustments for:
Depreciation and amortization 346 1,472
Loss/(gain) on disposal of property, plant and equipment 133 (2)
Interest income from investments and others (2,684) (2,157)
Loss on account of fair value of investments classified at FVTPL 1,000 -
Unclaimed balances/unspent liabilities written back (4,042) (1,700)
Net impairment loss/(gain) on financial assets 534 (475)
Operating profit before working capital changes 17,168 22,056

Working capital adjustments:

Decrease in trade receivables 105,232 29,837
(Increase)/ decrease in current and non-current financial assets and other current (44,305) (38,156)
and non-current assets
Increase/ (decrease) in current and non-current financial liabilities and other (74,337) (41,785)
current and non-current liabilities and provisions

Decrease in other bank balances 22,500 (22,500)

Increase in loans & advances - 773
(Increase)/Decrease in other current and non-current assets (42,632) (12,960)
(Increase)/Decrease in other current and non-current financial assets (24,172) (1,576)

Decrease in inventories - -
Increase in contract assets - (1,893)
Increase/ (Decrease) in trade payables (74,747) (38,605)
Decrease in other liabilities 279 (2,592)
Increase/ (Decrease) in other financial liabilities
Increase in provisions 131 (588)
Total cash from operations 3,758 (28,048)
(Income taxes paid)/refund (3,262) 38,964
Net cash flows from operating activities (A) 496 10,916

Cash flows from investing activities:

Proceeds from sale of property, plant and equipment 21 44
Purchase of investments (7,000) -
Inter corporate deposits given (30,000) -
Interest received on inter corporate deposit given 23 -
Interest received on deposits 2,781 1,826
Net cash flows used in investing activities (B) (34,175) 1,870

Cash flows from financing activities: - -

Net cash flows from/(used in) financing activities (C ) - -

Net increase in cash and cash equivalents (D= A+B+C) (33,679) 12,786

Cash and cash equivalents at the beginning of the year (E) 57,012 44,226

Cash and cash equivalents at year end (D+E) 23,333 57,012

Particulars March 31, 2020 March 31, 2019
(Rs. in '000) (Rs. in '000)
Component of cash and cash equivalent as at end of the year
Balances with banks
- on current accounts 833 12
- on deposit accounts 22,500 57,000
Total Cash and cash equivalents 23,333 57,012

See accompanying notes to the financial statements.

In terms of our report of even date attached
For and on behalf of the Board of Directors of HT Mobile Solutions Limited
For B S R and Associates
Chartered Accountants
(ICAI Firm registration Number: 128901W)

Rajesh Arora Piyush Gupta Umesh Sharma

Partner Director Director
Membership No. 076124 (DIN: 03155591) (DIN: 01490553)

Place: New Delhi Zairus Master Rahul Garg

Date: June 25, 2020 Chief Executive Officer Chief Financial Officer
 HT Mobile Solutions Limited
Statement of changes in equity for the year ended March 31, 2020

A. EQUITY SHARE CAPITAL (Refer Note 10)

Equity Shares of Rs. 10 each issued, subscribed and fully paid up

Particulars Equity share Capital
Number (Rs. in '000)
Balance as at March 31, 2018 35,458,598 354,586
Change during the year - -
Balance as at March 31, 2019 35,458,598 354,586
Change during the year - -
Balance as at March 31, 2020 35,458,598 354,586

B. OTHER EQUITY ATTRIBUTABLE TO EQUITY HOLDERS (Refer Note 11)

Reserve & Surplus Share based Capital Reserve Total

Particulars Securities Retained payment reserve (Rs. in '000)
premium reserve earnings/ General
Reserve
Balance as at March 31, 2018 23,911 (273,750) 652 (1,243) (250,430)
Change during the year - 82,011 (652) - 81,359
Forfeiture of outstanding share based option - 652 - - 652
Items of gain of other comprehensive income recognised directly in
retained earnings
- Remeasurements of defined benefits obligation, net of tax - 204 - - 204
Balance as at March 31, 2019 23,911 (190,883) - (1,243) (168,215)
Change during the year - 14,915 - - 14,915
Items of gain of other comprehensive income recognised directly in
retained earnings
- Remeasurements of defined benefits obligation, net of tax - (41) - - (41)
Balance as at March 31, 2020 23,911 (176,009) - (1,243) (153,341)

See accompanying notes to the financial statements.

In terms of our report of even date attached

For and on behalf of the Board of Directors of HT Mobile Solutions Limited
For B S R and Associates
Chartered Accountants
(ICAI Firm registration Number: 128901W)

Rajesh Arora Piyush Gupta Umesh Sharma

Partner Director Director
Membership No. 076124 (DIN: 03155591) (DIN: 01490553)

Place: New Delhi Zairus Master Rahul Garg

Date: June 25, 2020 Chief Executive Officer Chief Financial Officer
HT Mobile Solutions Limited
Notes forming part of financial statements for year ended 31 March 2020

1. Corporate information

HT Mobile Solutions Limited (“The Company”) is a public company domiciled in India and is
incorporated under the provisions of the Companies Act applicable in India having
investment through HT Digital Media Holdings Limited to carry out mobile marketing, social
media marketing, advertising, mobile CRM and loyalty campaigns, mobile music content and
ring tones and integrates with other media campaigns and strategies.

The registered office of the Company is located at Hindustan Times House, 18-20, Kasturba
Gandhi Marg, New Delhi-110001.

Information on other related party relationships of the Company is provided in Note 26.

The financial statements of the Company for the year ended 31st March, 2020 were
authorised for issue in accordance with a resolution of the Board of Directors on June 25,
2020.

2. Significant accounting policies followed by the company

2.1Basis of preparation

The financial statements of the Company have been prepared in accordance with Indian
Accounting Standards (Ind-AS) notified under the Companies (Indian Accounting Standards)
Rules, 2015 (as amended). For all periods up to and including the year ended March 31,
2016, the Company prepared its financial statements in accordance with Accounting
Standards notified under section 133 of the Companies Act 2013, read together with
paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP).

The accounting policies are applied consistently to all the periods presented in the financial
statements.

The financial statements have been prepared on a historical cost basis, except for the
following assets and liabilities which have been measured at fair value:

 Defined benefit plans - plan assets measured at fair value;

 Certain financial assets and liabilities measured at fair value (refer accounting policy
regarding financial instruments),

The financial statements are presented in Indian Rupees (INR), which is also the Company’s
functional currency. All amounts disclosed in the financial statements and notes have been
rounded off to the nearest thousands as per the requirement of Schedule III, unless
otherwise stated. Rounding of errors has been ignored.

2.2Summary of significant accounting policies

a) Current versus non- current classification

The Company presents assets and liabilities in the balance sheet based on current and non-
current classification. An asset is treated as current when it is:
 Expected to be realised or intended to sold or consumed in normal operating cycle
 Held primarily for the purpose of trading
 Expected to be realised within twelve months after the reporting period, or
 Cash or cash equivalent unless restricted from being exchanged or used to settle a
liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

HT Mobile Solutions Limited
Notes forming part of financial statements for year ended 31 March 2020

A liability is current when:

 It is expected to be settled in normal operating cycle
 It is held primarily for the purpose of trading
 It is due to be settled within twelve months after the reporting period, or
 There is no unconditional right to defer the settlement of the liability for at least twelve
months after the reporting period

The Company classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

The operating cycle is the time between the display of advertisement on website and
delivery of content and their realization in cash and cash equivalent. The Company has
identified 12 months as its operating cycle.

b) Foreign currencies

Transactions in foreign currencies are initially recorded by the Company at their respective
functional currency spot rates at the date the transaction first qualifies for recognition.
However, for practical reasons, the Company uses an average rate if the average
approximates the actual rate at the date of the transaction.

Monetary assets and liabilities denominated in foreign currencies are translated at the
functional currency spot rates of exchange at the reporting date.

Exchange differences arising on the settlement of monetary items or on restatement of the

Company’s monetary items at rates different from those at which they were initially
recorded during the year, or reported in previous financial statements, are recognized as
income or as expenses in the year in which they arise.

Non-monetary items that are measured in terms of historical cost in a foreign currency are
translated using the exchange rates at the dates of the initial transactions.

c) Fair value measurement

The Company measures certain financial instruments such as, derivatives and certain
investments at fair value at each reporting/ balance sheet date.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in
an orderly transaction between market participants at the measurement date. The fair value
measurement is based on the presumption that the transaction to sell the asset or transfer
the liability takes place either:

 In the principal market for the asset or liability, or

 In the absence of a principal market, in the most advantageous market for the asset or
liability

The principal or the most advantageous market must be accessible by the Company.
The fair value of an asset or a liability is measured using the assumptions that market
participants would use when pricing the asset or liability, assuming that market participants
act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant’s
ability to generate economic benefits by using the asset in its highest and best use or by
selling it to another market participant that would use the asset in its highest and best use.
HT Mobile Solutions Limited
Notes forming part of financial statements for year ended 31 March 2020

The Company uses valuation techniques that are appropriate in the circumstances and for
which sufficient data are available to measure fair value, maximising the use of relevant
observable inputs and minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial
statements are categorised within the fair value hierarchy, described as follows, based on
the lowest level input that is significant to the fair value measurement as a whole:

 Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or
liabilities
 Level 2 — Valuation techniques for which inputs are inputs other than quoted prices
included within Level 1 that are observable for the asset or liability, either directly or
indirectly
 Level 3 — Valuation techniques for which inputs are unobservable inputs for the asset
or liability

For assets and liabilities that are recognised in the financial statements on a recurring basis,
the Company determines whether transfers have occurred between levels in the hierarchy
by reassessing categorisation (based on the lowest level input that is significant to the fair
value measurement as a whole) at the end of each reporting period.

For the purpose of fair value disclosures, the Company has determined classes of assets and
liabilities on the basis of the nature, characteristics and risks of the asset or liability and the
level of the fair value hierarchy as explained above.

d) Revenue recognition

Effective April 1, 2018 the Company has adopted Ind AS 115 “Revenue from Contracts with
Customers” using the cumulative catch-up up transition method which is applied to
contracts that were not completed as of April 1, 2018.

Revenue is recognised to the extent that it is probable that the economic benefits will flow
to the Company and the revenue can be reliably measured, regardless of when the payment
is being made. Revenue is measured based on the transaction price, which is the
consideration, adjusted for allowances, trade discounts, volume rebates, if any, as specified
in the contract with the customer. Revenue excludes taxes collected from customers. The
Company has concluded that it is the principal in all of its revenue arrangements since it is
the primary obligor in all the revenue arrangements as it has pricing latitude and is also
exposed to inventory and credit risks.

Goods and Service tax / Service tax is not received by the Company on its own account.
Accordingly, it is excluded from revenue.

Contract asset and unbilled receivables

Contract asset represents the Company’s right to consideration in exchange for services that
the Company has transferred to a customer when that right is conditioned on something other
than the passage of time.

When there is unconditional right to receive cash, and only passage of time is required to do
invoicing, the same is presented as unbilled receivable.

A contract liability is recognised if a payment is received or a payment is due (whichever is

earlier) from a customer before the Company transfers the related goods or services.
Contract liabilities are recognised as revenue when the Company performs under the
contract (i.e., transfers control of the related goods or services to the customer).
HT Mobile Solutions Limited
Notes forming part of financial statements for year ended 31 March 2020

The specific recognition criteria described below must also be met before revenue is
recognised.

Revenue from services

Revenue from services is recognised basis music and video content monetised during the
month through various publishers (websites).
Revenue from SMS pushes/voice calls
Revenue is recognised after the delivery of SMS pushes/voice calls.

Revenue from Content

Revenue is recognised basis of log records of operators.

Revenue from Digital Services/Social Media

Revenue from social media is recognised based on actual output delivered in a month to the
client as per the terms of the RO/email from client/agreement.

Interest income
Interest income is recorded using the effective interest rate (ElR). EIR is the rate that
exactly discounts the estimated future cash payments or receipts over the expected life of
the financial instrument or a shorter period, where appropriate, to the gross carrying
amount of the financial asset or to the amortised cost of a financial liability. When
calculating the effective interest rate, the Company estimates the expected cash flows by
considering all the contractual terms of the financial instrument (for example, prepayment,
extension, call and similar options) but does not consider the expected credit losses.
Interest income is included in other income in the statement of profit and loss.

e) Taxes

The Government of India, on September 20, 2019, vide Taxation Laws (Amendment)
Ordinance 2019, inserted a new Section 115BAB in the Income Tax Act, 1961, which gives
option to the Company to pay Income Tax at reduced rates as per the provisions/ conditions
defined in the said section. The Company is in the process of evaluating the impact of this
Ordinance.

Current income tax

Tax expense is the aggregate amount included in the determination of profit or loss for the
period in respect of current tax and deferred tax.

Current income tax is measured at the amount expected to be paid to the tax authorities in
accordance with the Income Tax Act, 1961.

Current income tax assets and liabilities are measured at the amount expected to be
recovered from or paid to the taxation authorities. The tax rates and tax laws used to
compute the amount are those that are enacted or substantively enacted, at the reporting
date.
Current income tax relating to items recognised outside profit or loss is recognised outside
profit or loss (either in other comprehensive income or in equity). Current tax items are
recognised in correlation to the underlying transaction either in OCI or directly in equity.
Management periodically evaluates positions taken in the tax returns with respect to
situations in which applicable tax regulations are subject to interpretation and establishes
provisions where appropriate.

Appendix C to Ind AS 12, Income Taxes dealing with accounting for uncertainty over income
tax treatments is applicable from accounting periods beginning on or after 1 April 2019. It
does not have any material impact on financial statements of the Company.
HT Mobile Solutions Limited
Notes forming part of financial statements for year ended 31 March 2020

Deferred tax
Deferred tax is provided considering temporary differences between the tax bases of assets
and liabilities and their carrying amounts for financial reporting purposes at the reporting
date.

Deferred tax liabilities are recognised for all taxable temporary differences except:
• When the deferred tax liability arises from the initial recognition of goodwill or an asset or
liability in a transaction that is not a business combination and, at the time of the transaction,
affects neither the accounting profit nor taxable profit or loss

• In respect of taxable temporary differences associated with investments in subsidiaries

and associates, when the timing of the reversal of the temporary differences can be
controlled and it is probable that the temporary differences will not reverse in the
foreseeable future

Deferred tax assets are recognised for all deductible temporary differences, the carry forward
of unused tax credits and any unused tax losses. Deferred tax assets are recognised to the
extent that it is probable that taxable profit will be available against which the deductible
temporary differences, and the carry forward of unused tax credits and unused tax losses can
be utilised, except:

• When the deferred tax asset relating to the deductible temporary difference arises from
the initial recognition of an asset or liability in a transaction that is not a business
combination and, at the time of the transaction, affects neither the accounting profit nor
taxable profit or loss

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced
to the extent that it is no longer probable that sufficient taxable profit will be available to
allow all or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets
are re-assessed at each reporting date and are recognized to the extent that it has become
probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply
in the year when the asset is realized or the liability is settled, based on tax rates (and tax
laws) that have been enacted or substantively enacted at the reporting date.

Deferred tax relating to items recognized outside profit or loss is recognized outside profit or
loss. Deferred tax items are recognized in correlation to the underlying transaction either in
OCI or directly in equity.

Deferred tax assets and deferred tax liabilities are offset if and only if it has a legally
enforceable right to set off current tax assets and current tax liabilities and the deferred tax
assets and deferred tax liabilities relate to income taxes levied by the same taxation
authority on either the same taxable entity or different taxable entities which intend either
to settle current tax liabilities and assets on a net basis, or to realise the assets and settle
the liabilities simultaneously, in each future period in which significant amounts of deferred
tax liabilities or assets are expected to be settled or recovered.

GST / value added taxes paid on acquisition of assets or on incurring expenses

Expenses and assets are recognised net of the amount of sales tax / value added taxes/
goods and service tax paid, except:

 When the tax incurred on a purchase of assets or services is not recoverable from the
taxation authority, in which case, the tax paid is recognised as part of the cost of
acquisition of the asset or as part of the expense item, as applicable
HT Mobile Solutions Limited
Notes forming part of financial statements for year ended 31 March 2020

 When receivables and payables are stated with the amount of tax included

The net amount of tax recoverable from, or payable to, the taxation authority is included as
part of receivables or payables in the balance sheet.

f) Property, plant and equipment

Property, plant and equipment are stated at cost, net of accumulated depreciation and
accumulated impairment losses, if any. Such cost includes the cost of replacing part of the
plant and equipment and borrowing costs for long-term construction projects if the
recognition criteria are met.

Cost comprises the purchase price, borrowing costs (if any) if capitalization criteria are met
and any directly attributable cost of bringing the asset to its working condition for the
intended use. Any trade discounts and rebates are deducted in arriving at the purchase
price.

Recognition:

The cost of an item of property, plant and equipment shall be recognised as an asset if, and
only if:
a) it is probable that future economic benefits associated with the item will flow to the
entity;
and
b) the cost of the item can be measured reliably.

All other expenses on existing assets, including day-to day- repairs and maintenance
expenditure and cost of replacing arts, are charged to the Statement of Profit and Loss for
the period during which such expenses are incurred.

Depreciation on property, plant and equipment is provided on a Straight Line Method over
its economic useful lives of the assets as follows:

Useful lives estimated by

Type of asset
management (Years)
General plant and machinery 3–6
Furniture and fixtures 2-10
Leasehold improvements amortized over the lease period

The Company, based on technical assessment made by the management depreciates

certain assets over estimated useful lives which are different from the useful life prescribed
in Schedule ll to the Companies Act, 2013. The management believes that these estimated
useful lives are realistic and reflect fair approximation of the period over which the assets
are likely to be used.

Property, Plant and Equipment which are added/disposed off during the year, depreciation is
provided on pro-rata basis with reference to the month of addition/deletion.

Modification or extension to an existing asset, which is of capital nature and which becomes
an integral part thereof is depreciated prospectively over the remaining useful life of that
asset.

An item of property, plant and equipment and any significant part initially recognised is
derecognised upon disposal or when no future economic benefits are expected from its use
or disposal. Any gain or loss arising on de-recognition of the asset (calculated as the
HT Mobile Solutions Limited
Notes forming part of financial statements for year ended 31 March 2020

difference between the net disposal proceeds and the carrying amount of the asset) is
included in the income statement when the asset is derecognised.

The residual values, useful lives and methods of depreciation of property, plant and
equipment are reviewed at each financial year end and adjusted prospectively, if
appropriate.

g) Intangible assets

Intangible assets acquired separately are measured on initial recognition at cost. The cost of
intangible assets acquired in a business combination is their fair value at the date of
acquisition. Following initial recognition, intangible assets are carried at cost less any
accumulated amortization and accumulated impairment losses. Internally generated
intangibles, excluding capitalized development costs, are not capitalized and the related
expenditure is reflected in profit or loss in the period in which the expenditure is incurred.

The useful lives of intangible assets are assessed as either finite or indefinite.

Intangible assets with finite lives are amortized over the useful economic life and assessed
for impairment whenever there is an indication that the intangible asset may be impaired.
The amortization period and the amortization method for an intangible asset with a finite
useful life are reviewed at least at end of each reporting period. Changes in the expected
useful life or the expected pattern of consumption of future economic benefits embodied in
the asset are considered to modify the amortization period or method, as appropriate, and
are treated as changes in accounting estimates. The amortization expense on intangible
assets with finite lives is recognized in the Statement of Profit and Loss.

Intangible assets with indefinite useful lives are not amortized, but are tested for
impairment annually either individually or at the cash generating unit level. The assessment
of indefinite life is reviewed annually to determine whether the indefinite life continues to be
supportable. If not, the change in useful life from indefinite to finite is made on a
prospective basis.

Gains or losses arising from derecognition of an intangible asset are measured as the
difference between the net disposal proceeds and the carrying amount of the asset and are
recognized in the income statement when the asset is derecognized.

Intangible assets with finite lives are amortised on straight line basis using the estimated
life as follows:

Intangible Assets Useful Life (in Years)

Software Licenses 6
Non- compete fees Amortized over the agreement
period

h) Provisions

Provisions are recognised when the Company has a present obligation (legal or
constructive) as a result of a past event, it is probable that an outflow of resources
embodying economic benefits will be required to settle the obligation and a reliable estimate
can be made of the amount of the obligation. When the Company expects some or all of a
provision to be reimbursed, for example, under an insurance contract, the reimbursement is
recognised as a separate asset, but only when the reimbursement is virtually certain. The
expense relating to a provision is presented in the statement of profit and loss net of any
reimbursement.
HT Mobile Solutions Limited
Notes forming part of financial statements for year ended 31 March 2020

If the effect of the time value of money is material, provisions are discounted using a
current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When
discounting is used, the increase in the provision due to the passage of time is recognised
as a finance cost.

i) Impairment of non-financial assets

The Company assesses, at each reporting date, whether there is an indication that an asset
may be impaired. If any indication exists, or when annual impairment testing for an asset is
required, the Company estimates the asset’s recoverable amount. An asset’s recoverable
amount is the higher of an asset’s or cash-generating unit’s (CGU) fair value less costs of
disposal and its value in use. Recoverable amount is determined for an individual asset,
unless the asset does not generate cash inflows that are largely independent of those from
other assets or groups of assets. When the carrying amount of an asset or CGU exceeds its
recoverable amount, the asset is considered impaired and is written down to its recoverable
amount.

In assessing value in use, the estimated future cash flows are discounted to their present
value using a pre-tax discount rate that reflects current market assessments of the time
value of money and the risks specific to the asset. In determining fair value less costs of
disposal, recent market transactions are taken into account. If no such transactions can be
identified, an appropriate valuation model is used. These calculations are corroborated by
valuation multiples, quoted share prices for publicly traded Company’s or other available fair
value indicators.

The Company bases its impairment calculation on detailed budgets and forecast
calculations, which are prepared separately for each of the Company’s CGUs to which the
individual assets are allocated. These budgets and forecast calculations generally cover a
period of five years. For longer periods, a long-term growth rate is calculated and applied to
project future cash flows after the fifth year. To estimate cash flow projections beyond
periods covered by the most recent budgets/forecasts, the Company extrapolates cash flow
projections in the budget using a steady or declining growth rate for subsequent years,
unless an increasing rate can be justified. In any case, this growth rate does not exceed the
long-term average growth rate for the products, industries, or country or countries in which
the entity operates, or for the market in which the asset is used.

Impairment losses of continuing operations, including impairment on inventories, are

recognised in the statement of profit and loss.

An assessment is made at each reporting date to determine whether there is an indication

that previously recognised impairment losses no longer exist or have decreased. If such
indication exists, the Company estimates the asset's or CGU's recoverable amount. A
previously recognised impairment loss is reversed only if there has been a change in the
assumptions used to determine the asset's recoverable amount since the last impairment
loss was recognised. The reversal is limited so that the carrying amount of the asset does
not exceed its recoverable amount, nor exceed the carrying amount that would have been
determined, net of depreciation, had no impairment loss been recognised for the asset in
prior years. Such reversal is recognised in the Statement of Profit or Loss unless the asset is
carried at a revalued amount, in which case, the reversal is treated as a revaluation
increase.

Intangible assets with indefinite useful lives are tested for impairment annually at the CGU
level, as appropriate, and when circumstances indicate that the carrying value may be
impaired.

j) Employee benefits
HT Mobile Solutions Limited
Notes forming part of financial statements for year ended 31 March 2020

Short term employee benefits and defined contribution plans:

All employee benefits payable/available within twelve months of rendering the service are
classified as short-term employee benefits. Benefits such as salaries, wages and bonus etc.
are recognised in the statement of profit and loss in the period in which the employee
renders the related service.

Retirement benefit in the form of provident fund is a defined contribution scheme. The
Company has no obligation, other than the contribution payable to the provident fund. The
Company recognizes contribution payable to the provident fund scheme as an expense,
when an employee renders the related service. If the contribution payable to the scheme for
service received before the balance sheet date exceeds the contribution already paid, the
deficit payable to the scheme is recognized as a liability after deducting the contribution
already paid. If the contribution already paid exceeds the contribution due for services
received before the balance sheet date, then excess is recognized as an asset to the extent
that the pre-payment will lead to, for example, a reduction in future payment or a cash
refund.

Gratuity

Gratuity is a defined benefit scheme. The cost of providing benefits under the defined
benefit plan is determined using the projected unit credit method.

Re-measurements, comprising of actuarial gains and losses, the effect of the asset ceiling,
excluding amounts included in net interest on the net defined benefit liability and the return
on plan assets (excluding amounts included in net interest on the net defined benefit
liability), are recognised immediately in the balance sheet with a corresponding debit or
credit to retained earnings through OCI in the period in which they occur. Re-measurements
are not reclassified to profit or loss in subsequent periods.

Past service costs are recognised in profit or loss on the earlier of:
 The date of the plan amendment or curtailment, and
 The date that the Company recognises related restructuring cost

Net interest is calculated by applying the discount rate to the net defined benefit liability or
asset.

The Company recognises the following changes in the net defined benefit obligation as an
expense in the Statement of profit and loss:
 Service costs comprising current service costs, past-service costs, gains and losses on
curtailments and non-routine settlements; and
 Net interest expense or income

Termination benefits

Termination benefits are payable when employment is terminated by the company before the
normal retirement date. The Company recognises termination benefits at the earlier of the
following dates: (a) when the Company can no longer withdraw the offer of those benefits;
and (b) when the Company recognises costs for a restructuring that is within the scope of Ind
AS 37 and involves the payment of terminations benefits. Benefits falling due more than 12
months after the end of the reporting period are discounted to present value.
HT Mobile Solutions Limited
Notes forming part of financial statements for year ended 31 March 2020

Compensated Absences

Accumulated leave, which is expected to be utilized within the next 12 months, is treated as
short term employee benefit. The Company 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 Company treats leaves expected to be carried forward for measurement purposes. Such
compensated absences are provided for based on the actuarial valuation using the projected
unit credit method at the year end. Actuarial gains/losses are immediately taken to the
statement of profit and loss and are not deferred. The Company 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 12 months after the reporting date. Where Company has the unconditional legal
and contractual right to defer the settlement for a period beyond 12 months, the same is
presented as non- current liability.

k) 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.

Financial assets

Initial recognition and measurement

All financial assets (Other than trade receivable which is recognised at transaction price as per
Ind AS 115) are recognised initially at fair value plus, in the case of financial assets not
recorded at fair value through profit or loss, transaction costs that are attributable to the
acquisition of the financial asset.

Subsequent measurement
For purposes of subsequent measurement, Debt instruments are measured at amortised cost.

A 'debt instrument' is measured at the amortised cost if both the following conditions are met:

 The asset is held within a business model whose objective is to hold assets for
collecting contractual cash flows, and

 Contractual terms of the asset give rise on specified dates to cash flows that are solely
payments of principal and interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortised cost
using the effective interest rate (EIR) method. Amortised cost is calculated by taking into
account any discount or premium on acquisition and fees or costs that are an integral part of
the EIR. The EIR amortisation is included in finance income in the profit or loss. The losses
arising from impairment are recognised in the profit or loss. This category generally applies to
trade and other receivables.

Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a Company of
similar financial assets) is primarily derecognised (i.e. removed from the Company’s balance
sheet) when:

 The rights to receive cash flows from the asset have expired, or
HT Mobile Solutions Limited
Notes forming part of financial statements for year ended 31 March 2020

 The Company has transferred its rights to receive cash flows from the asset or has
assumed an obligation to pay the received cash flows in full without material delay to a
third party under a ‘pass-through' arrangement; and either (a) the Company has
transferred substantially all the risks and rewards of the asset, or (b) the Company has
neither transferred nor retained substantially all the risks and rewards of the asset, but
has transferred control of the asset.

When the Company has transferred its rights to receive cash flows from an asset or has
entered into a pass-through arrangement, it evaluates if and to what extent it has retained the
risks and rewards of ownership. When it has neither transferred nor retained substantially all
of the risks and rewards of the asset, nor transferred control of the asset, the Company
continues to recognise the transferred asset to the extent of the Company continuing
involvement. In that case, the Company also recognises an associated liability. The transferred
asset and the associated liability are measured on a basis that reflects the rights and
obligations that the Company has retained.

Continuing involvement that takes the form of a guarantee over the transferred asset is
measured at the lower of the original carrying amount of the asset and the maximum amount
of consideration that the Company could be required to repay.

Impairment of financial assets

In accordance with Ind-AS 109, the Company applies expected credit loss (ECL) model for
measurement and recognition of impairment loss on the following financial assets and credit
risk exposure:

a) Financial assets that are debt instruments, and are measured at amortised cost e.g. loans,
debt securities, deposits, trade receivables and bank balance
b) Trade receivables or any contractual right to receive cash or another financial asset that
result from transactions that are within the scope of Ind-AS 115 (referred to as ‘contractual
revenue receivables' in these financial statements).

The Company follows ‘simplified approach' for recognition of impairment loss allowance on:

 Trade receivables or contract revenue receivables;

The application of simplified approach does not require the Company to track changes in credit
risk. Rather, it recognises impairment loss allowance based on lifetime ECLs at each reporting
date, right from its initial recognition.

For recognition of impairment loss on other financial assets and risk exposure, the Company
determines that whether there has been a significant increase in the credit risk since initial
recognition. If credit risk has not increased significantly, 12-month ECL is used to provide for
impairment loss. However, if credit risk has increased significantly, lifetime ECL is used. If, in a
subsequent period, credit quality of the instrument improves such that there is no longer a
significant increase in credit risk since initial recognition, then the entity reverts to recognising
impairment loss allowance based on 12-month ECL.

Lifetime ECL are the expected credit losses resulting from all possible default events over the
expected life of a financial instrument. The 12-month ECL is a portion of the lifetime ECL which
results from default events that are possible within 12 months after the reporting date.

As a practical expedient, the Company uses a provision matrix to determine impairment loss
allowance on portfolio of its trade receivables. The provision matrix is based on its historically
observed default rates over the expected life of the trade receivables and is adjusted for
forward-looking estimates. At every reporting date, the historical observed default rates are
updated and changes in the forward-looking estimates are analysed.
HT Mobile Solutions Limited
Notes forming part of financial statements for year ended 31 March 2020

ECL impairment loss allowance (or reversal) recognized during the period is recognized as
income/ expense in the statement of profit and loss. This amount is reflected under the head
‘other expenses' in the Profit and Loss. The balance sheet presentation for various financial
instruments is described below:

Financial assets measured as at amortised cost, contractual revenue receivables and lease
receivables: ECL is presented as an allowance, i.e., as an integral part of the measurement of
those assets in the balance sheet. The allowance reduces the net carrying amount. Until the
asset meets write-off criteria, the Company does not reduce impairment allowance from the
gross carrying amount. For assessing increase in credit risk and impairment loss, the Company
combines financial instruments on the basis of shared credit risk characteristics with the
objective of facilitating an analysis that is designed to enable significant increases in credit risk
to be identified on a timely basis.

The Company does not have any purchased or originated credit-impaired (POCI) financial
assets, i.e., financial assets which are credit impaired on purchase/ origination.

Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value
through profit or loss, loans and borrowings, payables, as appropriate. All financial liabilities
are recognised initially at fair value and, in the case of and payables, net of directly
attributable transaction costs.

The Company’s financial liabilities mainly include trade and other payables.

Subsequent measurement

Trade and other payables are subsequently measured at amortised cost using the effective
interest method.

De-recognition

A financial liability is derecognised when the obligation under the liability is discharged or
cancelled or expires. When an existing financial liability is replaced by another from the same
lender on substantially different terms, or the terms of an existing liability are substantially
modified, such an exchange or modification is treated as the de-recognition of the original
liability and the recognition of a new liability. The difference in the respective carrying amounts
is recognised in the Statement of Profit or Loss.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance
sheet if there is a currently enforceable legal right to offset the recognised amounts and there
is an intention to settle on a net basis, to realise the assets and settle the liabilities
simultaneously.

l) Leases

A contract is, or contains, a lease if the contract conveys the right to control the use of an
identified asset for a period of time in exchange for consideration.

Company as a lessee
HT Mobile Solutions Limited
Notes forming part of financial statements for year ended 31 March 2020

The Company recognises right-of-use asset representing its right to use the underlying asset
for the lease term at the lease commencement date. The cost of the right-of-use asset
measured at inception shall comprise of the amount of the initial measurement of the lease
liability adjusted for any lease payments made at or before the commencement date less any
lease incentives received, plus any initial direct costs incurred and an estimate of costs to be
incurred by the lessee in dismantling and removing the underlying asset or restoring the
underlying asset or site on which it is located. The right-of-use assets is subsequently
measured at cost less any accumulated depreciation, accumulated impairment losses, if any
and adjusted for any remeasurement of the lease liability. The right-of-use assets is
depreciated using the straight-line method from the commencement date over the shorter of
lease term or useful life of right-of-use asset. The estimated useful lives of right-of-use assets
are determined on the same basis as those of property, plant and equipment. Right-of-use
assets are tested for impairment whenever there is any indication that their carrying amounts
may not be recoverable. Impairment loss, if any, is recognised in the statement of profit and
loss.

The Company measures the lease liability at the present value of the lease payments that are
not paid at the commencement date of the lease. The lease payments are discounted using
the interest rate implicit in the lease, if that rate can be readily determined. If that rate
cannot be readily determined, the Company uses incremental borrowing rate. The lease
payments shall include fixed payments, variable lease payments, residual value guarantees,
exercise price of a purchase option where the Company is reasonably certain to exercise that
option and payments of penalties for terminating the lease, if the lease term reflects the
lessee exercising an option to terminate the lease. After the commencement date, the
amount of lease liabilities is increased to reflect the accretion of interest and reduced for the
lease payments made. The lease liability is subsequently remeasured by increasing the
carrying amount to reflect interest on the lease liability, reducing the carrying amount to
reflect the lease payments made and remeasuring the carrying amount to reflect any
reassessment or lease modifications or to reflect revised in-substance fixed lease payments.
The Company recognises the amount of the re-measurement of lease liability due to
modification as an adjustment to the right-of-use asset and statement of profit and loss
depending upon the nature of modification. Where the carrying amount of the right-of-use
asset is reduced to zero and there is a further reduction in the measurement of the lease
liability, the Company recognises any remaining amount of the re-measurement in statement
of profit and loss.

The Company has elected not to apply the requirements of Ind AS 116 to short-term leases
of all assets that have a lease term of 12 months or less and leases for which the underlying
asset is of low value. The lease payments associated with these leases are recognised as an
expense on a straight-line basis over the lease term.

As a practical expedient a lessee (the company) has elected, by class of underlying asset, not
to separate lease components from any associated non-lease components. A lessee (the
company) accounts for the lease component and the associated non-lease components as a
single lease component.

Company as a lessor

At the inception of the lease the Company classifies each of its leases as either an operating
lease or a finance lease. The Company recognises lease payments received under operating
leases as income on a straight- line basis over the lease term. In case of a finance lease,
finance income is recognised over the lease term based on a pattern reflecting a constant
periodic rate of return on the lessor’s net investment in the lease.
HT Mobile Solutions Limited
Notes forming part of financial statements for year ended 31 March 2020

Transition to Ind AS 116

Ministry of Corporate Affairs (“MCA”) through Companies (Indian Accounting Standards)

Amendment Rules, 2019 and Companies (Indian Accounting Standards) Second Amendment
Rules, has notified Ind AS 116 Leases which replaces the existing lease standard, Ind AS 17
leases and other interpretations. Ind AS 116 sets out the principles for the recognition,
measurement, presentation and disclosure of leases for both lessees and lessors. It
introduces a single, on-balance sheet lease accounting model for lessees.

The Company has adopted Ind AS 116, effective annual reporting period beginning April 1,
2019 and applied the standard to its leases, retrospectively, with the cumulative effect of
initially applying the Standard, recognised on the date of initial application (April 1, 2019).
Accordingly, the Company has not restated comparative information. As on April 1, 2019, the
Company has recognized a right of use asset at an amount equivalent to the lease liability
and consequently there is no adjustment to the opening balance of retained earnings as on
April 1, 2019. On application of Ind AS 116, the nature of expenses has changed from lease
rent in previous periods to depreciation cost for the right-to-use asset, and finance cost for
interest accrued on lease liability.

Identification of lease:

 The Company has reassessed whether a contract is, or contains, a lease at the date of
initial application.

Leases previously classified as operating leases:

 The Company has recognised a lease liability at the date of initial application for leases
previously classified as an operating lease applying Ind AS 17 (other than those which
does not satisfy the lease definition criteria under Ind AS 116). The Company has
measured lease liability at the present value of the remaining lease payments, discounted
using the Company’s incremental borrowing rate at the date of initial application.

 The Company has recognised a right-of-use asset at the date of initial application for
leases previously classified as an operating lease applying Ind AS 17 (other than those
which does not satisfy the lease definition criteria under Ind AS 116). The Company has
opted to measure right-of-use asset at an amount equal to the lease liability, adjusted by
the amount of any prepaid or accrued lease payments relating to that lease recognised in
the balance sheet immediately before the date of initial application.

 The Company has relied on its assessment of whether leases are onerous applying Ind AS
37, Provisions, Contingent Liabilities and Contingent Assets, immediately before the date
of initial application as an alternative to performing an impairment review.

 The Company has opted not to apply the above transition requirements to leases for
which the lease term ends within 12 months of the date of initial application.

Leases previously classified as finance leases:

 For leases that were classified as finance leases applying Ind AS 17, the carrying
amount of the right-of-use asset and the lease liability at the date of initial application
is the carrying amount of the lease asset and lease liability immediately before that
date measured applying Ind AS 17.

There is no impact on transition as on 1 April 2019.

HT Mobile Solutions Limited
Notes forming part of financial statements for year ended 31 March 2020

m) Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-
term deposits with an original maturity of three months or less, which are subject to an
insignificant risk of changes in value.

For the purpose of the statement of cash flows, cash and cash equivalent consists of cash and
short-term deposits, as defined above, net of outstanding bank overdrafts as they are
considered an integral part of the Company’s cash management.

n) Measurement of EBITDA

The Company has elected to present earnings before interest, tax, depreciation and
amortization (EBITDA) as a separate line item on the face of the statement of profit and loss.
The company measures EBITDA on the basis of profit/ (loss) from continuing operations. In its
measurement, the Company does not include depreciation and amortization expense, finance
costs and tax expense.

o) Contingent Liabilities

A contingent liability is a possible obligation that arises from past events whose existence will
be confirmed by the occurrence or non–occurrence of one or more uncertain future events
beyond the control of the Company or a present obligation that is not recognized because it is
not probable that an outflow of resources will be required to settle the obligation. A contingent
liability also arises in extremely rare cases where there is a liability that cannot be recognized
because it cannot be measured reliably. The Company does not recognize a contingent liability
but discloses its existence in the financial statements. Contingent assets are only disclosed
when it is probable that the economic benefits will flow to the entity.

p) Earnings Per Share

Basic earnings per share

Basic earnings per share are calculated by dividing:

-the profit attributable to equity holders of the Company

-by the weighted average number of equity shares outstanding during the financial year,
adjusted for bonus elements in equity shares issued during the year and excluding treasury
shares.

Diluted earnings per share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per
share to take into account:

- The after income tax effect of interest and other financing costs associated with dilutive
potential equity shares, and

- The weighted average number of additional equity shares that would have been outstanding
assuming the conversion of all dilutive potential equity shares.

q) Equity-settled transactions
HT Mobile Solutions Limited
Notes forming part of financial statements for year ended 31 March 2020

The cost of equity-settled transactions is determined by the fair value at the date when the
grant is made using an appropriate valuation model. The Company has availed option under
Ind-AS 101, to apply intrinsic value method to the options already vested before the date of
transition and applied Ind-AS 102 Share-based payment to equity instruments that remain
unvested as of transition date.

That cost is recognised, together with a corresponding increase in share-based payment (SBP)
reserves in equity, over the period in which the performance and/or service conditions are
fulfilled in employee benefits expense. The cumulative expense recognised for equity-settled
transactions at each reporting date until the vesting date reflects the extent to which the
vesting period has expired and the Company’s best estimate of the number of equity
instruments that will ultimately vest. The Statement of Profit and Loss expense or credit for a
period represents the movement in cumulative expense recognised as at the beginning and
end of that period and is recognised in employee benefits expense.

Service and non-market performance conditions are not taken into account when determining
the grant date fair value of awards, but the likelihood of the conditions being met is assessed
as part of the Company’s best estimate of the number of equity instruments that will
ultimately vest. Market performance conditions are reflected within the grant date fair value.
Any other conditions attached to an award, but without an associated service requirement, are
considered to be non-vesting conditions. Non-vesting conditions are reflected in the fair value
of an award and lead to an immediate expensing of an award unless there are also service
and/or performance conditions.

No expense is recognised for awards that do not ultimately vest because non-market
performance and/or service conditions have not been met. Where awards include a market or
non-vesting condition, the transactions are treated as vested irrespective of whether the
market or non-vesting condition is satisfied, provided that all other performance and/or
service conditions are satisfied.

When the terms of an equity-settled award are modified, the minimum expense recognised is
the expense had the terms had not been modified, if the original terms of the award are met.
An additional expense is recognised for any modification that increases the total fair value of
the share-based payment transaction, or is otherwise beneficial to the employee as measured
at the date of modification. Where an award is cancelled by the entity or by the counterparty,
any remaining element of the fair value of the award is expensed immediately through profit
or loss.

The dilutive effect of outstanding options is reflected as additional share dilution in the
computation of diluted earnings per share.

2.3 Significant accounting judgments, estimates and assumptions

The preparation of the Company’s financial statements requires management to make

judgments, estimates and assumptions that affect the reported amounts of revenues,
expenses, assets and liabilities, and the accompanying disclosures. Uncertainty about these
assumptions and estimates could result in outcomes that require a material adjustment to the
carrying amount of assets or liabilities affected in future periods.

The areas involving critical estimates or judgment are as below:

Taxes

Uncertainties exist with respect to the interpretation of complex tax regulations, changes in
tax laws, and the amount and timing of future taxable income. Given the wide range of
business relationships and the long-term nature and complexity of existing contractual
HT Mobile Solutions Limited
Notes forming part of financial statements for year ended 31 March 2020

agreements, differences arising between the actual results and the assumptions made, or
future changes to such assumptions, could necessitate future adjustments to tax income
and expense already recorded. The Company establishes provisions, based on reasonable
estimates. The amount of such provisions is based on various factors, such as experience of
previous tax assessments and differing interpretations of tax regulations by the taxable
entity and the responsible tax authority. Such differences of interpretation may arise on a
wide variety of issues depending on the conditions prevailing in the respective domicile of
the Companies.

Deferred tax assets are recognised for unused tax losses to the extent that it is probable
that taxable profit will be available against which the losses can be utilised. Significant
management judgment is required to determine the amount of deferred tax assets that can
be recognised, based upon the likely timing and the level of future taxable profits together
with future tax planning strategies.

Further details on taxes are disclosed in Note 15.

Defined benefit plans

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 is based on publicly available mortality tables for the specific countries.
Those mortality tables tend to change only at interval in response to demographic changes.
Future salary increases and gratuity increases are based on expected future inflation rates for
the respective countries.

Further details about gratuity obligations are given in Note 24.

Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the balance sheet
cannot be measured based on quoted prices in active markets, their fair value is measured
using valuation techniques including the DCF model. The inputs to these models are taken
from observable markets where possible, but where this is not feasible, a degree of judgement
is required in establishing fair values. Judgements include considerations of inputs such as
liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect
the reported fair value of financial instruments. For more information refer Note 25.

Impairment of financial assets

The impairment provisions for financial assets are based on assumptions about risk of default
and expected loss rates. The Company uses judgement in making these assumptions and
selecting the inputs to the impairment calculation, based on Company’s past history, existing
market conditions as well as forward looking estimates at the end of each reporting period.
HT Mobile Solutions Limited
Notes forming part of financial statements for year ended 31 March 2020

Impairment of Non-financial assets

The Company assesses at each reporting date whether there is an indication that an asset may
be impaired. If any indication exists, or when annual impairment testing for an asset is
required, the Company estimates the asset’s recoverable amount. An asset’s recoverable
amount is the higher of an asset’s or CGU’s fair value less costs of disposal and its value in
use. It is determined for an individual asset, unless the asset does not generate cash inflows
that are largely independent of those from other assets or group of assets. Where the carrying
amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired
and is written down to its recoverable amount. In assessing value in use, the estimated future
cash flows are discounted to their present value using a pre-tax discount rate that reflects
current market assessments of the time value of money and the risks specific to the asset. In
determining fair value less costs of disposal, recent markets transactions are taken into
account. If no such transactions can be identified, an appropriate valuation model is used.
These calculations are corroborated by valuation multiples, quoted share prices for publicly
traded subsidiaries or other available fair value indicators.
HT Mobile Solutions Limited
Notes to financial statements for the year ended March 31, 2020

Note 3 : Property, plant and equipment

(Rs. in '000)
Particulars Improvement Plant and Furniture and Total
to leasehold machinery fixtures
premises
Cost
As at April 1, 2018 472 13,452 17 13,941
Additions during the year - - - -
Less : Disposals/ adjustments - 234 - 234
As at March 31, 2019 472 13,218 17 13,707
As at April 1, 2019 472 13,218 17 13,707
Additions during the year - - - -
Less : Disposals/ adjustments - 3,560 - 3,560
As at March 31, 2020 472 9,658 17 10,147

Accumulated Depreciation/
Impairment
As at April 1, 2018 449 11,540 6 11,995
Charge for the year 4 1,176 2 1,182
Less : Disposals/ adjustments - 192 - 192
As at March 31, 2019 453 12,524 8 12,985
As at April 1, 2019 453 12,524 8 12,985
Charge for the year 4 92 2 97
Less : Disposals/ adjustments 3,405 3,405
As at March 31, 2020 457 9,211 10 9,678

Net Block
As at March 31, 2020 15 447 7 469
As at March 31, 2019 19 694 9 722
HT Mobile Solutions Limited
Notes to financial statements for the year ended March 31, 2020

Note 4 : Intangible assets

(Rs. in '000)

Software Non compete

Particulars Total
licenses fees

Gross carrying amount

As at April 1, 2018 11,430 1,391 12,821
Additions during the year - - -
Less : Disposals/ adjustments - - -
As at March 31, 2019 11,430 1,391 12,821
As at April 1, 2019 11,430 1,391 12,821
Additions during the year - - -
Less : Disposals/ adjustments - - -
As at March 31, 2020 11,430 1,391 12,821

Accumulated Amortization/
Impairment
As at April 1, 2018 10,596 1,387 11,983
Charge for the year 290 - 290
As at March 31, 2019 10,886 1,387 12,273
As at April 1, 2019 10,886 1,387 12,273
Charge for the year 249 - 249
As at March 31, 2020 11,135 1,387 12,522

Net carrying amount

As at March 31, 2020 295 4 299
As at March 31, 2019 544 4 548
HT Mobile Solutions Limited
Notes to financial statements for the year ended March 31, 2020

Note 5A : Investments (Rs. in '000)

Particulars As at As at
March 31, 2020 March 31, 2019
Investments at fair value through profit and loss

Unquoted
Investment in equity instruments and warrants (refer note 25) 6,000 -
Total investments 6,000 -
Current - -
Non - current 6,000 -

Note 5B :Loans (Rs. in '000)

Particulars As at As at
March 31, 2020 March 31, 2019
Unsecured considered good at amortised cost
Inter- corporate loan given (refer note 26A) (also refer note 32) 30,000 -
Security deposit 150 150
Total Loans 30,150 150
Current 30,150 150
Non - Current - -

Particulars As at As at
March 31, 2020 March 31, 2019
Secured, considered good - -
Unsecured, considered good 30,150 150
Total 30,150 150

Note 5C : Other financial assets (Rs. in '000)

Particulars As at As at
March 31, 2020 March 31, 2019
Other financial assets (at amortised cost)
Interest accrued on fixed deposits - 331
Interest accrued on inter-company deposits (refer note 26A) 211 -
Unbilled revenue 24,196 1,893
Other receivables from related party (refer note 26A) 19,722 17,853
Total Other Financial Assets 44,129 20,077
Current 44,129 20,077
Non - Current - -

Note 6 : Income tax assets (net) (Rs. in '000)

Particulars As at As at
March 31, 2020 March 31, 2019
Income tax assets (net) [related to current tax] 44,544 41,282
Current - -
Non-Current 44,544 41,282

Note 7A : Trade Receivables (Rs. in '000)

Particulars As at As at
March 31, 2020 March 31, 2019
Trade receivables 4,234 17,092
Receivables from related parties (refer note 26A) 189 93,097
Total trade receivables 4,423 110,189
Current 4,423 110,189
Non - Current - -

(Rs. in '000)
Particulars As at As at
March 31, 2020 March 31, 2019
Secured, considered good - -
Unsecured, considered good 4,423 110,189
Unsecured, considered doubtful 9,614 9,092
Total 14,037 119,281
Loss allowance for bad & doubtful debts 9,614 9,092
Total trade receivables 4,423 110,189

No trade receivable is due from directors or other officers of the Company either severally or jointly with any other person.

Note 7B : Cash and cash equivalents (Rs. in '000)

Particulars As at As at
March 31, 2020 March 31, 2019
Balance with banks :
- On current accounts 833 12
- Deposit with original maturity of three months or less 22,500 57,000
Total 23,333 57,012
Short-term deposits are made for varying periods of between one day and three months, depending on the immediate cash requirements of the Company and earn
interest at the respective short-term deposit rates.

Note 8 : Other Bank balances (Rs. in '000)

Particulars As at As at
March 31, 2020 March 31, 2019
Bank balances other than (7B) above
- Deposits with original maturity of more than three months but less than 12 months - 22,500
Total - 22,500

Note 9 : Other current assets (Rs. in '000)

Particulars As at As at
March 31, 2020 March 31, 2019
Advances to vendors (includes Rs. Nil (PY - Rs. 576 thousand) advance given to related parties) (refer note 33,617 18,054
26A)
Balance with statutory/government authorities 86,352 59,283
Total 119,969 77,337

Break up of financial assets carried at amortised cost

(Rs. in '000)
Particulars As at As at
March 31, 2020 March 31, 2019
Trade receivables (Note 7A) 4,423 110,189
Cash and cash equivalents (Note 7B) 23,333 57,012
Other bank balances (Note 8) - 22,500
Loans (Note 5B) 30,150 150
Other financial assets (Note 5C) 44,129 20,077
Total financial assets carried at amortised cost 102,035 209,927
HT Mobile Solutions Limited
Notes to financial statements for the year ended March 31, 2020

Note 10 : Share capital

Authorised share capital

Equity share capital

Particulars No. of shares (Rs. in '000)

At March 31, 2018 41,000,000 410,000
Increase/(decrease) during the year - -
At March 31, 2019 41,000,000 410,000
Increase/(decrease) during the year - -
At March 31, 2020 41,000,000 410,000

Terms/ rights attached to equity shares

The Company has only one class of equity share having par value of Rs.10 each per share. Each holder of equity share is entitled to one vote per share. The Company declares and pays dividend in Indian
rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in
proportion to the number of equity shares held by the shareholders

(B) Instruments entirely equity in nature

Optionally Convertible Cumulative Preference Shares (OCCPS) of Rs. 0.10 each

Particulars No. of shares (Rs. in '000)

At March 31, 2018 50,000,000 5,000
Increase/(decrease) during the year - -
At March 31, 2019 50,000,000 5,000
Increase/(decrease) during the year - -
At March 31, 2020 50,000,000 5,000

Issued and subscribed capital

Equity shares capital

Equity shares of Rs. 10 each issued, subscribed & fully paid No. of shares (Rs. in '000)
Balance as at March 31, 2018 35,458,598 354,586
Changes during the year - -
Balance as at March 31, 2019 35,458,598 354,586
Changes during the year - -
Balance as at March 31, 2020 35,458,598 354,586

Reconciliation of the equity shares outstanding at the beginning and at the end of the year :

Particulars March 31, 2020 March 31, 2019

No. of shares Amount No. of shares Amount

(Rs. in '000) (Rs. in '000)
Shares outstanding at the beginning of the year 35,458,598 354,586 35,458,598 354,586
Equity shares issued during the year - - - -
Shares outstanding at the end of the year 35,458,598 354,586 35,458,598 354,586
HT Mobile Solutions Limited
Notes to financial statements for the year ended March 31, 2020

Shares held by holding/ ultimate holding Company and/ or their subsidiaries/ associates
Out of equity and preference shares issued by the Company, shares held by its holding Company, ultimate holding Company and their subsidiaries/ associates are as below:

Particulars 31-Mar-20 31-Mar-19

(Rs. in '000) (Rs. in '000)
Equity Shares of Rs. 10 each of fully paid:
HT Digital Media Holdings Limited 321,712 321,712
# 32,171,158 (March 31,2019 - # 32,171,157) equity shares of Rs. 10 each fully paid
HT Media Limited, Holding Company of HT Digital Media Holdings Limited
# 2,990,653 (March 31,2019 - # 2,990,653) equity shares of Rs. 10 each fully paid 29,907 29,907

Details of shareholders holding more than 5% shares in the Company

As at As at
Particulars
'March 31, 2020 'March 31, 2019
% holding in % holding in
No. of shares No. of shares
the No in class the No in
class
Equity Shares with voting rights:
HT Digital Media Holdings Limited 32,171,158 90.73% 32,171,157 90.73%
# 32,171,158 (March 31,2019 - # 32,171,157) equity shares of Rs. 10 each fully paid
HT Media Limited, Ultimate Holding Company 2,990,653 8.43% 2,990,653 8.43%
# 2,990,653 (March 31,2018 - # 2,990,653) equity shares of Rs. 10 each fully paid
As per records of the Company, including its register of shareholders/members and other declaration received from the shareholders regarding beneficial interest, the above shareholding represents both legal
and beneficial ownerships of shares.

Aggregate number of equity shares issued as bonus, shares issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting
date:
Particulars 31-Mar-20 31-Mar-19
No. of shares No. of shares
197,850 number of equity shares and 98,926 number of equity shares with voting rights were allotted during year ended March 31, 2014
296,776 296,776
and year ended March 31, 2015 respectively as fully paid-up pursuant to contracts for consideration other than cash
HT Mobile Solutions Limited
Notes to financial statements for the year ended March 31, 2020

Note 11 : Other equity (Rs. in '000)

As at As at
Particulars
March 31, 2020 March 31, 2019
Securities premium 23,911 23,911
Capital reserve (1,243) (1,243)
Retained earnings & general reserves (176,009) (190,883)
Share based payment reserve - -
Total (153,341) (168,215)

Securities premium
Particulars (Rs. in '000)
At March 31, 2018 23,911
Changes during the year -
At March 31, 2019 23,911
Changes during the year -
At March 31, 2020 23,911

Retained earnings & general reserves (Rs. in '000)

Particulars Retained earnings General reserves Total
At March 31, 2018 (273,784) 34 (273,750)
Net Profit for the year 82,011 - 82,011
Forfeiture of outstanding share based options 652 652
Items of gain of other comprehensive income recognised directly in retained earnings
- Remeasurements of defined benefits obligation, net of tax 204 - 204
At March 31, 2019 (190,917) 34 (190,883)
Net Profit for the year 14,915 - 14,915
Items of gain of other comprehensive income recognised directly in retained earnings
- Remeasurements of defined benefits obligation, net of tax (41) - (41)
At March 31, 2020 (176,043) 34 (176,009)

Share based payment reserve

Particulars (Rs. in '000)
At 31 March 2018 652
Forfeiture of outstanding share based options (652)
At 31 March 2019 -
Changes during the year -
At 31 March 2020 -

Capital reserve*
Particulars (Rs. in '000)
At 31 March 2018 (1,243)
Changes during the year -
At 31 March 2019 (1,243)
Changes during the year -
At 31 March 2020 (1,243)
* In relation to merger of HT Campus undertaking of Firefly e-Ventures Limited.
HT Mobile Solutions Limited
Notes to financial statements for the year ended March 31, 2020

Note 12A : Trade payables (Rs. in '000)

Particulars As at As at
March 31, 2020 March 31, 2019
Trade Payables
(i) Total outstanding dues of micro enterprises and small enterprises (refer note 30) - 137
(ii) total outstanding dues of creditors other than micro enterprises and small enterprises
- payable to related parties (refer note 26A) - 104,650
- Payable to others 111,035 91,933
Total 111,035 196,720
Current 111,035 196,720
Non- Current - -

Note 12B : Other financial liabilities (Rs. in '000)

Particulars As at As at
March 31, 2020 March 31, 2019
Other financial liabilities at amortised cost
Employee payables 1,141 1,246
Security deposit 7,000 -
Total financial liabilities carried at amortised cost 8,141 1,246
Current 8,141 1,246
Non- Current - -

Note 13 : Provisions (Rs. in '000)

Particulars As at As at
March 31, 2020 March 31, 2019
Provision for employee benefits
Provision for compensated absences (refer note 24) 90 81
Provision for gratuity (refer note 24) 478 303
Total Provisions 568 384
Current 96 86
Non- current 472 298

Note 14 : Other liabilities (Rs. in '000)

Particulars As at As at
March 31, 2020 March 31, 2019
Customers and agents balances (includes Rs. Nil thousand (PY - Rs. 235 thousand) pertaining to 1,689 1,449
related parties) (refer note 26A)
Statutory dues 779 740
Total other current liabilities 2,468 2,189
Current 2,468 2,189
Non- Current - -
 HT Mobile Solutions Limited
Notes to financial statements for the year ended March 31, 2020

Note 15 : Income Tax

The major components of income tax expense for the year ended March 31, 2020 and March 31, 2019 are :

Statement of profit and loss :

(Rs. in '000)
Particulars As at As at
March 31, 2020 March 31, 2019
Current income tax - -
Deferred tax charge/(credit) 5,949 (57,093)
Adjustments in respect of previous year 1,017 -
Income tax expense reported in the statement of profit and loss 6,966 (57,093)

OCI section :
Deferred tax related to items recognised in OCI during in the year ended March 31, 2020:
(INR Lakhs)
Particulars As at As at
March 31, 2020 March 31, 2019
Income tax credit on remeasurements of defined benefit plans (14) -
Income tax charged to OCI (14) -

Reconciliation of deferred tax assets (net):

Particulars As at As at
March 31, 2020 March 31, 2019
Opening balance 57,093 -
Tax income/(expense) during the year recognised in profit or loss (6,952) 57,093
Closing balance 50,141 57,093

Reconciliation of tax expense and the accounting profit multiplied by India's domestic tax rate for March 31, 2020 and March 31, 2019:

(Rs. in '000)
Particulars As at As at
March 31, 2020 March 31, 2019
Accounting profit before tax 21,881 24,918
Accounting profit before income tax 21,881 24,918
At India's statutory income tax rate of 26% 5,688 6,479
Effects of
Unrecognised deferred tax (net for the year ended 31 March) 260 -
Deferred tax recognised on Brought forward losses & Unabsorbed depreciation - (45,503)
Deferred tax recognised on temporary differences pertaining to previous years - (15,727)
Current year tax loss on which deferred tax is recognised - (2,342)
Adjustments in respect of previous year 1,017 -
6,965 (57,093)

Deferred tax relates to the following:

(Rs. in '000)
Particulars As at As at
March 31, 2020 March 31, 2019
Temporary differences arising on:
Unabsorbed brought forward losses 22,774 28,264
Provision for defined benefit obligation 147 100
Unabsorbed depreciation carried forward 17,239 17,239
Impairment of doubtful debts and advances 2,500 2,364
Difference in WDV of tangible and intangible fixed assets as per books of account and tax books 2,119 2,747

Effect of expenditure debited to Statement of profit and loss in the current year but allowed for tax 5,362 6,379
purposes in following year
Deferred tax Asset (net) 50,141 57,093

Deductible temporary differences, unused tax losses, and unused tax credits for which no deferred tax asset is recognised in the balance sheet
as on 31 March 2020:
(Rs. in '000)
Particulars As at As at
March 31, 2020 March 31, 2019
Temporary differences arising on:
Unabsorbed brought forward losses 90,097 93,626
Fair value of investment through profit and loss 260
Provision for defined benefit obligation - -
Unabsorbed depreciation carried forward - -
Impairment of doubtful debts and advances - -
Difference in WDV of tangible and intangible fixed assets as per books of account and tax books - -

Deferred tax Asset (net) 90,357 93,626

HT Mobile Solutions Limited
Notes to financial statements for the year ended March 31, 2020

Note 16 : Revenue from operations (Rs. in '000)

Particulars Year ended Year ended
March 31, 2020 March 31, 2019
Sales of services - digital services 227,548 181,274
Total 227,548 181,274

Note 17 : Other income (Rs. in '000)

Particulars Year ended Year ended
March 31, 2020 March 31, 2019
Interest income on EIR method
- Bank deposits 2,451 2,157
- Interest on inter corporate deposit 234 -
- Income tax refund - 3,554

Other non - operating income

Unclaimed balances/unspent liabilities written back (net) 4,042 1,700
Net impairment gain on financial assets - 475
Net gain on disposal of property, plant and equipment - 2
Foreign exchange fluctuation income 412 475
Miscellaneous income - 127
Total 7,139 8,490

Note 18 : Employee benefits expense (Rs. in '000)

Particulars Year ended Year ended
March 31, 2020 March 31, 2019
Salaries, wages and bonus 8,455 9,249
Contribution to provident and other funds (refer note 24) 323 351
Gratuity expense (refer note 24) 121 176
Workmen and staff welfare expenses 15 49
Total 8,914 9,825

Note 19 : Finance costs (Rs. in '000)

Particulars Year ended Year ended
March 31, 2020 March 31, 2019
Bank charges 125 53
Total 125 53

Note 20 : Depreciation and amortization expense (Rs. in '000)

Particulars Year ended Year ended
March 31, 2020 March 31, 2019
Depreciation on property, plant and equipment (Refer Note 3) 97 1,182
Amortization of intangible assets (Refer Note 4) 249 290
Total 346 1,472

Note 21 : Other expenses (Rs. in '000)

Particulars Year ended Year ended
March 31, 2020 March 31, 2019
Power and fuel - 7
Rent - 1,840
Rates and taxes 1,163 271
Insurance 87 30
Repairs and maintenance:
- Plant and machinery 364 844
- Building - 55
Travelling and conveyance 2,235 1,749
Communication costs 504 970
Legal and professional fees 1,413 1,255
Payment to auditor (refer details below) 900 1,100
Net impairment loss on financial assets 534 -
Loss on sale/discard of property, plant and equipment 133 -
Services for mobile and music content 194,741 142,140
Loss on account of fair value of investments classified at FVTPL 1,000 -
Miscellaneous expenses 347 3,235
Total 203,421 153,496

Payment to auditors (Rs. in '000)

Particulars Year ended Year ended
March 31, 2020 March 31, 2019
As auditor :
- Audit fee 700 800
- Tax audit fee 150 200
- Reimbursement of expenses 50 100
Total 900 1,100
HT Mobile Solutions Limited
Notes to financial statements for the year ended March 31, 2020

Note 22 : Other Comprehensive Income

The disaggregation of changes to OCI by each type of reserve in equity is shown below :

During the year ended March 31, 2020

(Rs. in '000)
Particulars Retained Total
earnings
Re- measurement gains(losses) on defined benefit plans (55) (55)
Income tax relating to items that will not be reclassified to profit or loss 14 14
Total (41) (41)

During the year ended March 31, 2019

(Rs. in '000)
Particulars Retained Total
earnings
Re- measurement gains(losses) on defined benefit plans 204 204
Income tax relating to items that will not be reclassified to profit or loss - -
Total 204 204

Note 23 : Earnings per share (EPS)

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the Company by the
weighted average number of Equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the Company by the weighted
average number of Equity shares outstanding during the year plus the weighted average number of Equity shares that would be
issued on conversion of all the dilutive potential Equity shares into Equity shares.
The following reflects the income and share data used in the basic and diluted EPS computations:
(Rs. in '000 except earnings per share)
Year ended Year ended
Particulars March 31, 2020 March 31, 2019

Profit/ (loss) attributable to equity holders for basic earnings 14,915 82,011
Profit attributable to equity holders adjusted for the effect of dilution 14,915 82,011

Weighted average number of equity shares for basic EPS (No.) 35,458,598 35,458,598

Weighted average number of equity shares adjusted for the effect of dilution
35,458,598 35,458,598
(No.)

Earning per share

Basic EPS (Rs.) 0.42 2.31
Diluted EPS (Rs.) 0.42 2.31
HT Mobile Solutions Limited
Notes to financial statements for the year ended March 31, 2020

Note 24 : Employee Benefits

A. Define Benefit Plan: Gratuity (Rs. in '000)

Particulars Year ended Year ended
March 31, 2020 March 31, 2019
Gratuity 478 303
Total 478 303
Current 7 5
Non- current 471 298

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of services gets a gratuity on separation at 15 days
salary (last drawn salary) for each completed year of service. The liability is provided as per actuarial valuation.
The gratuity plan is governed by the Payment of Gratuity Act, 1972. The Company has purchased insurance policy, which is basically a year-on-year cash
accumulation plan in which the interest rate is declared on yearly basis and is guaranteed for a period of one year. The insurance company, as part of the
policy rules, makes payment of all gratuity outgoes happening during the year (subject to sufficiency of funds under the policy). The policy, thus, mitigates
the liquidity risk. However, being a cash accumulation plan, the duration of assets is shorter compared to the duration of liabilities. Thus, the Company is
exposed to movement in interest rate (in particular, the significant fall in interest rates, which should result in a increase in liability without corresponding
increase in the asset.
The following tables summaries the components of net benefit expense recognised in the statement of profit or loss and amounts recognised in the balance
sheet for the respective plans:

Gratuity Plan
Changes in the defined benefit obligation and fair value of plan assets as at March 31, 2020 :

Present value of Obligation (Rs. in '000)

Particulars Year ended Year ended
March 31, 2020 March 31, 2019
Opening Balance 303 967
Current Service Cost 97 99
Interest Expense or cost 24 77
Re-measurement (or Actuarial) (gain) / loss arising from:
- change in financial assumptions 74 8
- experience variance (i.e. Actual experience vs assumptions) (20) (212)
Benefits Paid - (636)
Total 478 303

The principal assumptions used in determining gratuity obligation for the Company's plans are shown below:

Particulars Year ended Year ended

March 31, 2020 March 31, 2019
Discount Rate 6.85% 7.85%
Salary Growth Rate 7.50% 7.50%
Withdrawal Rate
Up to 30 years 3.00% 3.00%
31 - 44 years 2.00% 2.00%
Above 44 years 1.00% 1.00%

A quantitative sensitivity analysis for significant assumption as at 31 March 2020 is as shown below:
(Rs. in '000)
Year ended Year ended
Particulars
March 31, 2020 March 31, 2019
Defined Benefit Obligation (Base) 478 303

Impact on defined benefit obligation (Rs. in '000)

Year ended Year ended
Particulars
March 31, 2020 March 31, 2019
Assumptions Decrease Increase Decrease Increase
Discount Rate (-/+ 1%) 91 74 59 48
Salary Growth Rate (-/+ 1%) (74) (90) (48) (59)
Attrition Rate (-/+ 50%) 7 7 1 1

The sensitivity analysis above have been determined based on a method that extrapolates the impact on defined benefit obligation as a result of reasonable
changes in key assumptions occurring at the end of the reporting period.
The following represents the maturity profile of the defined benefit plan in future years:
(Rs. in '000)
Year ended Year ended
Particulars
March 31, 2020 March 31, 2019
Within the next 12 months (next annual reporting period) 7 5
Between 2 and 5 years 41 31
Between 6 and 10 years 61 47
Beyond 10 years 1,689 1,374
Total expected payments 1,798 1,457

Average duration of the defined benefit plan obligation is 18 years (Previous year- 17 years)

B. Defined Contribution Plan

Year ended Year ended

Particulars
March 31, 2020 March 31, 2019
Contribution to Provident and Other funds
Charged to Statement of Profit and Loss 323 351

C. Leave Encashment (unfunded)

The Company recognises the leave encashment expenses in the Statement of profit & loss based on actuarial valuation.
The expenses recognised in the statement of profit & loss and the leave encashment liability at the beginning and at the end of the year :
(Rs. in '000)
Year ended Year ended
Particulars
March 31, 2020 March 31, 2019
Liability at the beginning of the year 81 210
Provided during the year 9 (129)
Liability at the end of the year 90 81
HT Mobile Solutions Limited
Notes to financial statements for the year ended March 31, 2020

Note 25 : Fair value

Set out below, is a comparison by class of the carrying amounts and fair value of the companies financial instruments, other than those with carrying amounts that are reasonable
approximations of fair values:

(Rs. in '000)
Particulars Carrying Value Fair value Fair value mechanism
March 31, 2020 March 31, 2019 March 31, 2020 March 31, 2019 Hierarchy
Financial assets measured at fair value through
profit and loss (FVTPL)
Investment in equity instruments and warrants - 6,000 - 6,000 - Level 3
Unquoted (refer note 5A)

The management assessed that fair value of loans given, trade receivables, cash and cash equivalents, other bank balances, other current financial assets, trade payables and
other current financial 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 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:
- The fair value of the investment in unquoted equity shares has been estimated using a Discounted Cash Flow (DCF) model and/or comparable investment price such as last round
of funding made in the investee Company. The valuation requires management to make certain assumptions about the model inputs, including forecast cash flows, discount rate,
credit risk and volatility. The probabilities of the various estimates within the range can be reasonably assessed and are used in management’s estimate of fair value for these
unquoted investments.

The significant unobservable inputs used in the fair value measurement categorized within Level 3 of the fair value hierarchy together with a quantitative sensitivity analysis as at
31 March 2020 is shown below:

Particulars Valuation Significant unobservable Range Impact of Impact of Decrease in

technique inputs (weighted Increase in inputs inputs to fair value(INR
average) to fair value(INR Lakhs)
Lakhs)

Investment in equity instruments and warrants Unquoted Discounted cash Volatility (+/- 5%) 43.8% 3 (2)
at Level 3 flow/Option Pricing
(refer note below) Model
Environment Risk (+/- 15% (4) 4
5%)

Reconciliation of fair value measurement of investment in unquoted equity shares measured at FVTPL (Level III) :

Particulars Total
(Rs. in '000)
As at March 31, 2018 -
Purchases -
Impact of fair value movement -
Transfers* -
As at March 31, 2019 -
Purchases 7,000
Impact of fair value movement (1,000)
Transfers* -
As at March 31, 2020 6,000
*During the year an Investment having book value of INR Nil (previous year Nil) has been transferred from Level 2 to Level 3

Note 26: Related party transactions

i) List of Related Parties and Relationships:-

Parties having direct or indirect control over the Company Earthstone Holding (Two) Private Limited (Ultimate controlling party is the Promoter
(Holding Company) Group)
The Hindustan Times Limited#
Holding Company of HT Digital Media Holdings Limited HT Media Limited
Holding Company HT Digital Media Holdings Limited
Fellow Subsidiaries (with whom transactions have HT Learning Centers Limited
occurred during the year)
# The Hindustan Times Limited (HTL) does not hold any direct investment in the Company. However, HTL’s subsidiary HT Media Limited holds shares in the Company.

ii) Transactions with related parties

Refer Note 26A

iii) Terms and conditions of transactions with related parties

The sales to and purchases from related parties are made on terms equivalent to those that prevail in arm's length transactions. Outstanding balances at the year-end are
unsecured and interest free and settlement occurs in cash (other than Inter-corporate Deposit refer note 5B).
HT Mobile Solutions Limited
Notes to financial statements for the year ended March 31, 2020

Note 26A : Related party transactions

(Rs. in '000)
Particulars Holding Company of HT Digital Media Holding Company Fellow Subsidiaries Total
Holdings Limited
March 31, 2020 March 31, 2019 March 31, 2020 March 31, 2019 March 31, 2020 March 31, 2019 March 31, 2020 March 31, 2019

INCOME
Interest earned on inter corporate loan - - - - 234 - 234 -

EXPENSE
Office rent and other expenses - 1,840 - - - - - 1,840
Advertising and Sales Promotion 844 844 -

OTHERS
Reimbursement of expenses incurred on behalf of the Company 201 631 - - - 6,922 201 7,553

Reimbursement of expenses incurred on behalf of the parties by 867 - - - - - 867

company

Inter corporate deposit given by the company - - - - 30,000 - 30,000 -

BALANCE OUTSTANDING
Equity Share Capital 29,907 29,907 321,712 321,712 - - 351,619 351,619
Inter corporate deposit given & interest accrued on it - - - - 30,211 - 30,211 -
Trade and other receivable 179 - - - 19,733 19,505 19,912 19,505
Trade payable and other liabilities - 12,369 - - - 494 - 12,863
HT Mobile Solutions Limited
Notes to financial statements for the year ended March 31, 2020

Note 27: Financial risk management objectives and policies

The company's principal financial liabilities comprise trade and other payables. The main purpose of these financial liabilities is to finance the company's operations. The
company's principal financial assets include investments, loans given, trade and other receivables, and cash and cash equivalents that derive directly from its operations.

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 equity price risk.
The sensitivity analyses in the following sections relate to the position as at March 31, 2020 and March 31, 2019.
The analysis exclude the impact of movements in market variables on: the carrying values of gratuity and other post retirement obligations and provisions.
The sensitivity of the relevant profit and loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities
held at March 31, 2020 and March 31, 2019.

(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.

(ii) Foreign 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. The Company's exposure
to the risk of changes in foreign exchange rates relates primarily to the Company's operating activities (when revenue or expense is denominated in a foreign currency).

Foreign currency sensitivity

The following tables demonstrate the sensitivity to a reasonably possible change in exchange rates, with all other variables held constant. The impact on the Company’s
profit before tax is due to changes in the fair value of monetary assets and liabilities.

(Rs. in '000)
Particulars Change in USD rate Effect on profit before tax

Year ended Year ended Year ended Year ended

March 31, 2020 March 31, 2019 March 31, 2020 March 31, 2019
Change in USD rate
Trade receivables +/(-) 1% +/(-) 1% - 148
Unbilled revenue +/(-) 1% +/(-) 1% 222 -

(iii)Equity price risk

The Company invests in listed and non-listed equity securities which are susceptible to market price risk arising from uncertainties about future values of the investment
securities. The Company manages the equity price risk through diversification and by placing limits on individual and total equity instruments. Reports on the equity portfolio
are submitted to the Company's senior management on a regular basis. The Company's Investment Committee reviews and approves all equity investment decisions.

Credit risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to
credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions and foreign
exchange transactions.

Trade receivables and other financial assets

An impairment analysis is performed at each reporting date on an individual basis for major clients. The maximum exposure to credit risk at the reporting date is the carrying
value of each class of financial assets disclosed in Note 7A and Note 5C. The Company does not hold collateral as security.

The Company evaluates the concentration of risk with respect to trade receivables and contract as low, as its customers are located in several jurisdictions and industries and
operate in largely independent markets.

Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company’s treasury department in accordance with the Company’s policy. Investments of
surplus funds are made as per guidelines and within limits approved by Board of Directors. Board of Directors/ Management reviews and update guidelines, time to time as
per requirement. The guidelines are set to minimize the concentration of risks and therefore mitigate financial loss through counterparty’s potential failure to make
payments.

Liquidity risk
The Company monitors its risk of a shortage of funds using a liquidity planning tool.

The table below summarizes the maturity profile of the Company's financial liabilities based on contractual undiscounted payments.
(Rs. in '000)
With in 1 year More than 1 Total
years
As at March 31, 2020
Trade and other payables (refer note 12A) 111,035 - 111,035
Other financial liabilities (refer note 12B) 8,141 - 8,141

As at March 31, 2019

Trade and other payables (refer note 12A) 196,720 - 196,720
Other financial liabilities (refer note 12B) 1,246 - 1,246
HT Mobile Solutions Limited
Notes to financial statements for the year ended March 31, 2020

Note 28 : Segment information

The Company’s operations comprise of only one segment i.e. “Rendering of Digital Services”. The management also reviews and measures the operating results taking the
whole business as one segment and accordingly make decision about the resources allocation. In view of the same, separate segment information is not required to be
given as per the requirement of Ind-AS 108 on “Operating Segments”

Information about major customers:

There are certain customers which represent 10% or more of the Company’s total revenue with total amounting to Rs. 214,348 thousands and Rs. 167,206 thousands for
the year ended March 31, 2020 and March 31, 2019 respectively.

Note 29: Capital management

For the purpose of the Company's capital management, capital includes issued equity capital, share premium and all other equity reserves. The primary objective of the
Company's capital management is to maximize the shareholder value.

The Company manages its capital structure through equity funding and it's own operations. It does not have any debt.
No changes were made in the objectives, policies or processes for managing capital during the years ended March 31, 2020 and March 31, 2019.

Note 30: Based on the information available with the Company, details of dues to Micro and Small Enterprises as defined under the MSMED Act, 2006 :

(Rs. in '000)
Particulars March 31, 2020 March 31, 2019

Principal Amount - 137

Interest due thereon at the end of the accounting year - -
The amount of interest paid by the buyer in terms of Section 16, of the - -
MSMED Act, 2006 along with the amounts of the payment made to the
supplier beyond the appointed day during each accounting year

The amount of interest due and payable for the period for delay in - -
making payment (which have been paid but beyond the appointed day
during the year) but without adding the interest specified under MSMED
Act, 2006.

The amount of interest accrued and remaining unpaid at the end of the - -
accounting year
The amount of further interest remaining due and payable even in the - -
succeeding years, until such date when the interest dues as above are
actually paid to the small enterprise for the purpose of disallowance as a
deductible expenditure under Section 23 of MSMED Act, 2006.

Note 31 : Scheme of amalgamation between Firefly e-Ventures Limited (FEVL), HT Digital Media Holdings Limited (HTDH), HT Education Liited (HTEL), HT
Learning Centers Limited (HTLC), India Education Services Privale Limited (IESPL), Topmovies Entertainment Limited (TMEL) with HT Mobile Solutions
Limited (HTMSL)

A scheme of amalgamation u/s 230-232 of the Companies Act, 2013 which provides for merger of Firefly e-Ventures Limited (FEVL), HT Digital Media Holdings Limited
(HTDMH), HT Education Limited (HTEL), HT Learning Centers Limited (HTLC), India Education Services Private Limited (IESPL) and Topmovies Entertainment Limited
(TMEL) with HT Mobile Solutions Limited (HTMS) (“Scheme”), has been approved by the respective Board of Directors of companies at their meetings held on March 18,
2020.
Pending filing of the Scheme with Hon’ble NCLT, New Delhi Bench, impact thereof has not been considered in HTMS’s standalone results for FY 19-20.
On effectiveness of the Scheme, the loan given by HTMS to HTLC will get eliminated in the books of accounts of HTMS.
HT Mobile Solutions Limited
Notes to financial statements for the year ended March 31, 2020

Note 32 Disclosure required under section 186(4) of the Companies Act, 2013

Included in loans and advances, loan to fellow subsidiary the particulars of which are disclosed in below as required by Sec 186(4) of Companies Act 2013:

(Rs. in '000)
Name of the Loanee Rate of Interest Due Date Secured/ Purpose of Loan March 31, 2020 March 31, 2019
Unsecured
HT Learning Centers 9.60% p.a. Repayable on Unsecured To meet the business 30,000 -
Limited compounded demand requirements and other
(Fellow Subsidiary) annually general corporate
purposes.

For further details of loans and advances provided to related parties, refer note 5B.

Note 33 Standards issued but not effective

"Ministry of Corporate Affairs ("MCA") notifies new standard or amendments to the existing standards. There is no such notification which would have been
applicable from April 1, 2020."
Note 34: Management has considered the possible effects that may result from the pandemic relating to COVID-19 on the carrying amount of assets of
the Company. In developing the assumptions relating to the possible future uncertainties because of this pandemic, the Company, as at the date of
adoption of these financial results has used internal and external sources of information. The Company has performed sensitivity analysis on the
assumptions used and based on current estimates expects that the carrying amount of assets will be recovered. The impact of COVID-19 on the Company's
financial results may differ from that estimated as at the date of adoption of audited financial statements for the year ended 31 March 2020.

Note 35: Previous year figures have been regrouped and reclassified wherever necessary to conform to the current year classification.

See accompanying notes to the financial statements.

In terms of our report of even date attached

For B S R and Associates For and on behalf of the Board of Directors of HT Mobile Solution Limited
Chartered Accountants
(ICAI Firm registration Number: 128901W)

Rajesh Arora Piyush Gupta Umesh Sharma

Partner Director Director
Membership No. 076124 (DIN: 03155591) (DIN: 01490553)

Place: New Delhi Zairus Master Rahul Garg

Date: June 25, 2020 Chief Executive Officer Chief Financial Officer