Financial Instruments

12 Months Ended

Mar. 31, 2021

Disclosure Of Financial Instruments [Abstract]

35)	FINANCIAL INSTRUMENTS

Credit Risk

Exposure to Credit Risk

The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk at the reporting date was:

	As at March 31
Particulars	2020		2021
Trade and other receivables		56,065		27,331
Receivable from related party		—		55
Term deposits		38,030		154,868
Cash and cash equivalents (except cash in hand)		129,791		295,001
Total		223,886		477,255

The cash and cash equivalents and term deposits are mainly held with banks, which are rated A+, A, AA-, BB+, BBB-, based on rating agency Fitch ratings.

The maximum exposure to credit risk for trade and other receivables at the reporting date by geographic region was:

	As at March 31
Particulars	2020		2021
India		48,758		23,571
Thailand		3,901		1,324
Malaysia		318		157
Singapore		562		188
Others		2,526		2,091
Total		56,065		27,331

The maximum exposure to credit risk for trade and other receivables and term deposits at the reporting date by type of counterparty was:

	As at March 31
Particulars	2020		2021
Airlines		16,564		6,239
Retail customers		3,145		117
Corporate customers		26,625		10,757
Deposit with hotels and others		8,152		5,900
Term deposits with bank		38,030		154,868
Others		1,579		4,318
Total		94,095		182,199

Impairment Losses

The Group uses a provision matrix to compute the expected credit loss allowance for trade and other receivables. The provision matrix takes into account available external and internal credit risk factors such as credit default and the Group's historical experience for customers.

The age of trade and other receivables, term deposits, and security deposits at the reporting date was:

	As at March 31
	2020				2021
Particulars	Gross		Impairment		Gross		Impairment
Not past due		58,418		—		166,805		—
Past due 0-30 days		14,834		—		7,600		—
Past due 30-120 days		13,531		—		4,704		—
More than 120 days		10,205		2,893		5,571		2,481
Total		96,988		2,893		184,680		2,481

The movement in the allowance for impairment in respect of trade and other receivables during the year was as follows:

	For the year ended March 31
Particulars	2020			2021
Balance at the beginning of the year		1,851			2,893
Allowance for impairment		1,563			358
Amounts written off against the allowance		(346	)		(908	)
Effects of movement in exchange rate		(175	)		138
Balance at the end of the year		2,893			2,481

Allowance for impairment mainly represents amounts due from airlines and retail customers. Based on historical experience, the Group believes that no impairment allowance is necessary, apart from above, in respect of trade and other receivables.

Liquidity risk

The following are the contractual maturities of financial liabilities, including estimated interest payments and excluding the impact of netting agreements:

As at March 31, 2020

Non-derivative financial liabilities (including hybrid financial liabilities)	Carrying amount		Contractual cash flows*			6 months or less			6 -12 months			1 -2 years			2 -5 years			More than 5 years
Lease liabilities		24,553		(35,539	)		(3,236	)		(2,779	)		(4,978	)		(12,463	)		(12,083	)
Secured bank loans		1,031		(1,188	)		(207	)		(205	)		(371	)		(405	)		—
Trade and other payables		70,747		(70,747	)		(70,747	)		—			—			—			—
Other liabilities (related to business combination)		14,921		(16,710	)		(5,570	)		—			(5,570	)		(5,570	)		—
Refund due to customers		22,558		(22,558	)		(22,558	)		—			—			—			—
Total		133,810		(146,742	)		(102,318	)		(2,984	)		(10,919	)		(18,438	)		(12,083	)

Notes: *

Represents undiscounted cash flows of interest and principal

As at March 31, 2021

Non-derivative financial liabilities (including hybrid financial liabilities)	Carrying amount		Contractual cash flows*			6 months or less			6 -12 months			1 -2 years			2 -5 years			More than 5 years
Convertible notes		187,574		(230,000	)		—			—			—			(230,000	)		—
Lease liabilities		15,646		(21,956	)		(1,745	)		(1,798	)		(3,636	)		(8,318	)		(6,459	)
Secured bank loans		735		(824	)		(186	)		(174	)		(258	)		(206	)		—
Trade and other payables		53,581		(53,581	)		(53,581	)		—			—			—			—
Other liabilities (related to business combination)		14,875		(17,055	)		(5,685	)		—			(5,685	)		(5,685	)		—
Refund due to customers		49,527		(49,527	)		(49,527	)		—			—			—			—
Total		321,938		(372,943	)		(110,724	)		(1,972	)		(9,579	)		(244,209	)		(6,459	)

Notes: *

Represents undiscounted cash flows of interest and principal

The balanced view of liquidity and financial indebtedness (excluding lease liabilities) is stated in the table below:

	As at March 31
Particulars	2020			2021
Cash and cash equivalents		129,881			295,066
Term deposits		38,030			154,868
Loans and borrowings		(1,031	)		(188,309	)
Net cash position		166,880			261,625

Currency Risk

Exposure to Currency Risk

The Group is exposed to currency risk to the extent that there is a mismatch between the currencies in which sales and purchase of services are denominated and the respective functional currencies of Group companies. The functional currencies of Group companies are primarily the INR and USD. The currencies in which these transactions are primarily denominated are INR and USD.

The Group’s exposure to foreign currency risk was based on the following amounts as at the reporting dates (in equivalent USD):

Between USD and INR

	As at March 31
Particulars	2020			2021
Trade and other receivables		1,403			956
Trade and other payables		(168,676	)		(210,884	)
Cash and cash equivalents		605			136
Net exposure		(166,668	)		(209,792	)

The following significant exchange rates applied during the year:

	Average exchange rate per unit			Reporting date rate per unit
	Financial Year			As at March 31
USD	2019-20	2020-21		2020	2021
INR 1	0.0141		0.0135	0.0134		0.0136

Sensitivity Analysis

Any change in the exchange rate of USD against currencies other than INR is not expected to have significant impact on the Group’s profit or loss. Accordingly, a 10% appreciation of the USD as indicated below, against the INR would have increased loss by the amounts shown below. This analysis is based on foreign currency exchange rate variances that the Group considered to be reasonably possible at the end of the reporting period. The analysis assumes that all other variables remain constant.

For the year ended

March 31

Particulars

2020

2021

10% strengthening of USD against INR

(15,152

)

(19,072

)

A 10% depreciation of the USD against INR, would have had the equal but opposite effect on the above currency to the amounts shown above, on the basis that all other variables remain constant.

Interest Rate Risk

Profile

At the reporting date the interest rate profile of the Group’s fixed rate interest-bearing financial instruments was as follows:

	As at March 31
Particulars	2020			2021
Fixed rate instruments
Financial assets
Term deposits		38,030			154,868
Receivable from related party		—			55

Financial liabilities
Secured bank loans		(1,031	)		(735	)
		36,999			154,188

Fair Value Sensitivity Analysis

The Group does not account for any fixed rate financial assets and liabilities at fair value through profit or loss. Therefore, a change in interest rates at the reporting date would not affect profit or loss.

The Group does not have any variable rate interest bearing financial instruments.

Fair Values

Fair Values versus Carrying Amounts

The fair values of financial assets and liabilities, together with the carrying amounts shown in the statement of financial position, are as follows:

	As at March 31, 2020				As at March 31, 2021
	Carrying amount		Fair value		Carrying amount		Fair value
Financial assets measured at fair value
Other investments - equity securities (FVOCI)		3,584		3,584		5,409		5,409
		3,584		3,584		5,409		5,409

Financial assets not measured at fair value (Amortised cost)
Other investments - other securities		99		99		99		99
		99		99		99		99

Financial liabilities measured at fair value
Other liabilities (related to business combination)		14,921		14,921		14,875		14,875
		14,921		14,921		14,875		14,875

Financial liabilities not measured at fair value (Other financial liabilities)
Secured bank loans		1,031		1,031		735		735
Convertible notes		-		-		187,574		187,574
		1,031		1,031		188,309		188,309

The fair value measurements of financial assets and liabilities reported above have been categorized as Level 3 fair values based on the inputs to the valuation techniques used.

Fair value of trade and other receivables, term deposits, cash and cash equivalents, receivable from related party, trade and other payables, and refund due to customers is reasonably approximates to its carrying amount.

Fair value hierarchy

The table below analyses financial instruments carried at fair value, by valuation method. The different levels have been defined as follows:

•

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

•

Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

•

Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

	As at March 31, 2021
Particulars	Level 1		Level 2		Level 3		Total
Other investments (equity securities-FVOCI)		—		—		5,409		5,409
Total Assets		—		—		5,409		5,409

Other liabilities (related to business combination)		—		—		14,875		14,875
Total Liabilities		—		—		14,875		14,875

	As at March 31, 2020
Particulars	Level 1		Level 2		Level 3		Total
Other investments (equity securities-FVOCI)		—		—		3,584		3,584
Total Assets		—		—		3,584		3,584

Other liabilities (related to business combination)		—		—		14,921		14,921
Total Liabilities		—		—		14,921		14,921

The following tables shows a reconciliation from the beginning balances to the ending balances for fair value measurement in Level 3 of the fair value hierarchy:

	As at March 31, 2021
Particulars	Other liabilities (related to business combination)			Other investments (equity securities-FVOCI)
Opening balances		14,921			3,584
Total gains and losses recognized in:
—profit or loss		(350	)		—
—other comprehensive income
-net change in fair value		—			1,825
-effect of movements in foreign exchange rates		304			—
Closing balances		14,875			5,409

	As at March 31, 2020
Particulars	Other liabilities (related to business combination)			Other investments (equity securities-FVOCI)			Right to receive equity stake in a travel entity
Opening balances		—			5,563			411
Acquired through business combination (refer note 7)		14,550			—			—
Total gains and losses recognized in:
—profit or loss		1,421			—			30
—other comprehensive income
-net change in fair value		—			(1,979	)		—
-effect of movements in foreign exchange rates		(1,050	)		—			—
Settlement by issuance of shares (refer note 24)		—			—			(441	)
Closing balances		14,921			3,584			—

There were no transfers between Level 1, Level 2 and Level 3 during the year.

Valuation Techniques and significant unobservable inputs

The following tables show the valuation techniques used in measuring Level 3 fair values as at March 31, 2021 and March 31, 2020, as well as the significant unobservable inputs used.

Financial Instruments measured at fair value:

Type

Valuation technique

Significant

unobservable inputs

Inter- relationship

between significant

unobservable inputs and

fair value measurement

Other investments - equity securities

Discounted cash flows: The valuation model considers the present value of expected free cash flows, discounted using a risk adjusted discount rate.

Forecast annual revenue growth rate : 4% - 25%

(March 31, 2020: (47%) - 50%)

Forecast EBITDA margin:

(3%) - 25%

(March 31, 2020: (13%) - 26%)

Risk adjusted discount rate: 17.0% (March 31, 2020: 17.0%)

The estimated fair value would increase (decrease) if :

- the annual revenue growth rate were higher (lower)

- the EBITDA margin were higher (lower)

- the risk adjusted discount rate was lower (higher)

Other liabilities (related to business combination)

Discounted cash flows: The valuation model considers the present value of the expected future payments, discounted using a risk-adjusted discount rate.

Expected cash flows: USD 17,054 (March 31, 2020: USD 16,710)

Risk-adjusted discount rate: 10.20% (March 31, 2020: 10.20%)

The estimated fair value would increase (decrease) if:

– the expected cash flows were higher (lower);

– the risk-adjusted discount rate were lower (higher).

Financial Instruments not measured at fair value:

Type		Valuation technique		Significant unobservable inputs
Other financial assets and liabilities*		Discounted cash flows		Not applicable

Notes: *

Other financial assets include trade and other receivables, term deposits, cash and cash equivalents, receivable from related party and other investments-other securities. Other financial liabilities include secured bank loans, trade and other payables, refund due to customers, convertible notes and lease liabilities.

Sensitivity Analysis

Other investments – equity securities

For the fair values of other investments-equity securities, reasonably possible changes of 100 basis points at the reporting date to one of the significant unobservable inputs, holding other inputs constant, would have the following effects:

	For the year ended March 31, 2020						For the year ended March 31, 2021
	Other Comprehensive Income						Other Comprehensive Income
	Increase			Decrease			Increase			Decrease
Annual revenue growth rate		314			(312	)		424			(414	)
EBITDA Margin		145			(145	)		265			(265	)
Risk adjusted discount rate		(280	)		330			(419	)		492

Other liabilities (related to business combination)

For the fair values of other liabilities related to business combination, reasonably possible changes of 100 basis points at the reporting date to one of the significant unobservable inputs, holding other inputs constant, would have the following effects:

	For the year ended March 31, 2020					For the year ended March 31, 2021
	Profit or loss					Profit or loss
	Increase		Decrease			Increase		Decrease
Risk adjusted discount rate		144		(149	)		179		(185	)

Impact of COVID-19 pandemic

Financial assets carried at fair value as at March 31, 2021 is USD 5,409 (March 31, 2020: USD 3,584), which is measured using level 3 inputs. This financial asset represents investment made in equity shares of companies engaged in travel business, which is fair valued based on discounted cash flow method after considering the uncertainties arising out of COVID-19 pandemic.

Financial assets of USD 450,088 as at March 31, 2021(March 31, 2020: USD 168,010), carried at amortised cost is in the form of cash and cash equivalents, term deposits with bank, other investments - other securities and receivable from related party where the Group has assessed the counterparty credit risk. Trade and other receivables of USD 27,331 as at March 31, 2021 (March 31, 2020: USD 56,065), forms a significant part of the financial assets carried at amortised cost which is valued considering provision for allowance using expected credit loss method. In addition to the historical pattern of credit loss, management have considered the likelihood of increased credit risk and consequential default considering emerging situations due to the COVID-19 pandemic. This assessment is not based on any mathematical model but an assessment considering the nature of counterparty, impact immediately seen in the demand outlook of these counterparties and the financial strength of the counterparties in respect of whom amounts are receivable.