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Accounting Policies of Turtlemint Fintech Solutions Ltd. Company
2 MATERIAL ACCOUNTING POLICIES2.1 Statement of Compliance and Basis of preparation
The Standalone Financial Statements of Turtlemint Fintech Solutions Limited (formerly
known as Turtlemint Fintech Solutions Private Limited and Fintech Blue Solutions
Private Limited) comprise the balance sheet as at March 31, 2026 and March 31,
2025 the Statement of profit and loss (including other comprehensive income), the
Statement of changes in equity and the Statement of cash flows for the year ended
March 31,2026 and March 31,2025, and notes to the Standalone financial statements,
including a summary of material accounting policies and other explanatory information
(hereinafter collectively referred to as "Standalone Financial Statements" or "SFS").
The Standalone 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 from time to time) and
presentation requirements of Division II of Schedule III to the Companies Act, 2013 (as
amended from time to time), (Ind AS compliant Schedule III), as applicable to the SFS.
i) Historical cost convention
The standalone financial statements have been prepared on the historical cost basis
except for the following:
- certain financial assets and liabilities are measured at fair value
- share based payments
- defined benefit obligations
ii) Functional and presentation currency
These standalone financial statements are presented in Indian Rupees (INR) which is
the functional currency of the Company. All amounts have been rounded off to the
nearest Mn, unless otherwise indicated.
iii) Operating cycle
All the assets and liabilities have been classified as current or non-current as per the
normal operating cycle of the Company.
Based on the nature of services rendered by the Company and the time between the
acquisition of assets for processing and their realization in cash and cash equivalents,
the Company has ascertained its operating cycle as 12 months for the purpose of
current and non-current classification of assets and liabilities.
2.2 Summary of material accounting policies
This note provides a list of material accounting policies adopted in the preparation of
these standalone financial statements. These policies have been consistently applied
to all the years presented, unless otherwise stated.
i) Property, plant and equipment
Property plant and equipment are stated at acquisition cost, net of accumulated
depreciation and accumulated impairment losses, if any. Cost comprizes of the
purchase price and non-refundable taxes, and directly attributable expenses incurred
to bring the asset to the location and condition necessary for it to be capable of being
operated in the manner intended by management.
Subsequent cost related to an item of Property, Plant and Equipment are recognized in
the carrying amount of the item if the recognition criteria are met.
Items of Property, Plant and Equipment that have been retired from active use and are
held for disposal are stated at the lower of their net book value and net realizable value.
Any expected loss is recognized immediately in the Statement of Profit and Loss. An
item of Property, Plant and Equipment is derecognized on disposal or when no future
economic benefits are expected from its use or disposal. The gain or loss arising on
derecognition is recognized in the Statement of Profit and Loss.
The date of disposal of an item of property, plant and equipment is the date the recipient
obtains control of that item in accordance with the requirements for determining when
a performance obligation is satisfied in Ind AS 115.
Depreciation methods, estimated useful lives and residual value :
Depreciation on Property plant and equipments is provided on a pro-rata basis on the
straight line method over the estimated useful life of assets prescribed under Schedule
II to the Companies Act, 2013. The depreciation expense for each year is recognized
in the Standalone Statement of Profit and Loss. The useful life, residual value and the
depreciation method are reviewed at least at each financial year end and adjusted
prospectively if appropriate:
The useful lives have been determined based on lives specified by Schedule II 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.
Intangible Assets are stated at cost, net of accumulated amortization and accumulated
impairment losses, if any. Intangible Assets are amortized on a straight line basis over
their estimated useful lives.
Gains or losses arising from the retirement or disposal of an intangible asset are
determined as the difference between the net disposal proceeds and the carrying
amount of the asset and recognized as income or expense in the Standalone Statement
of Profit and Loss.
Goodwill on acquisition of assets is included in intangible assets (refer note 37).
Goodwill is not amortized but it is tested for impairment annually, or more frequently if
events or changes in circumstances indicate that it might be impaired, and is carried at
cost less accumulated impairment losses, if any.
Customer relationships, Trademark, Non-compete fees
Customer relationships, Trademark and non-compete fees acquired in a Assets
Transfer Agreement are recognized at fair value at the acquisition date. They have a
finite useful life and are subsequently carried at cost less accumulated amortization
and impairment losses, if any.
Amortization methods, estimated useful lives and residual value :
The amortization period and the amortization method are reviewed at least at each
financial year end. If the expected useful life of the asset is significantly different from
previous estimates, the amortization period is changed accordingly.
Impairment of Non financial assets
Assessment is done at each Balance Sheet date as to whether there is any indication
that an asset (tangible and intangible) may be impaired. If any such indication exists,
an estimate of the recoverable amount of the asset/cash generating unit is made.
Recoverable amount is higher of an assets or cash generating units net selling price
and its value in use. Value in use is the present value of estimated future cash flows
expected to arise from the continuing use of an asset and from its disposal at the end
of its useful life.
For the purpose of assessing impairment, the 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 Companyâs of assets. The smallest
identifiable Company of assets that generates cash inflows from continuing use that
are largely independent of the cash inflows from other assets or Companyâs of assets,
is considered as a cash generating unit (CGU). An asset or CGU whose carrying value
exceeds its recoverable amount is considered impaired and is written down to its
recoverable amount. Assessment is also done at each Standalone Balance Sheet date
as to whether there is any indication that an impairment loss recognised for an asset
in prior accounting periods may no longer exist or may have decreased. An impairment
loss is reversed to the extent that the assets carrying amount does not exceed the
carrying amount that would have been determined if no impairment loss had previously
been recognised.
ii) Foreign CurrenciesTransaction and balances
Initial Recognition
On initial recognition, all foreign currency transactions are recorded by applying to the
foreign currency amount the prevailing exchange rate between the reporting currency
and the foreign currency at the date of the transaction.
Subsequent Recognition
As at the reporting date, non-monetary items which are carried in terms of historical
cost denominated in a foreign currency are reported using the exchange rate at the
date of the initial transactions. All non-monetary items which are carried at fair value
or other similar valuation denominated in a foreign currency are reported using the
exchange rates that existed when the values were determined. The gain or loss arising
on translation of non-monetary items measured at fair value is treated in line with the
recognition of the gain or loss on the change in fair value of the item (i.e., translation
differences on items whose fair value gain or loss is recognized in OCI or profit or
loss are also recognized in OCI or profit or loss, respectively). All monetary assets
and liabilities in foreign currency are translated at the functional currency spot rates
of exchange at the reporting date. Exchange differences on translation/ settlement
of foreign currency monetary assets and liabilities are recognized in the Standalone
Statement Profit and Loss.
Operating segments are reported in a manner consistent with internal reporting
provided to chief operating decision maker.
The Board of directors of Turtlemint Fintech Solutions Limited (formerly known as
Turtlemint Fintech Solutions Private Limited and Fintech Blue Solutions Private Limited)
assesses the financial performance and position of the Company and makes strategic
decisions. Board of directors has been identified as being the chief operating decision
maker (Refer note 46).
I. Revenue from services
Revenue is measured based on transaction price, which is the consideration
adjusted for discount, incentives and price concession if any, as specified in
the contract with customer. Revenue is recognized at a point in time when the
Company satisfies performance obligations by transferring the promized services
to its customers. Generally, each service represents a separate performance
obligation for which revenue is recognized when the performance obligation is
satisfied.
The contract generally result in revenue recognized in excess of billings which are
presented as unbilled in the Balance Sheet.
The Company accounts for Revenues from Contracts with Customers in
accordance with ''Ind AS 115â which sets forth a single comprehensive model for
recognizing and reporting revenues. To recognise revenues, the Company applies
the following five step approach:
(1) identify the contract with a customer,
(2) identify the performance obligations in the contract,
(3) determine the transaction price,
(4) allocate the transaction price to the performance obligations in the
contract, and
(5) recognise revenues when a performance obligation is satisfied.
Step 1: Identify contract(s) with a customer: A contract is defined as an agreement
between two or more parties that creates enforceable rights and obligations and
sets out the criteria for every contract that must be met.
Step 2: Identify performance obligations in the contract: A performance obligation
is a promise in a contract with a customer to transfer a good or service to the
customer.
Step 3: Determine the transaction price: The transaction price is the amount
of consideration to which the Company expects to be entitled in exchange for
transferring promised goods or services to a customer, excluding amounts
collected on behalf of third parties.
Step 4: Allocate the transaction price to the performance obligations in the
contract: For a contract that has more than one performance obligation, the
Company allocates the transaction price to each performance obligation in an
amount that depicts the amount of consideration to which the Company expects
to be entitled in exchange for satisfying each performance obligation.
Step 5: Recognize revenue when (or as) the Company satisfies a performance
obligation.
Revenue comprizes of revenue from providing technical and business support
services to customers which includes setting up, maintenance, updates etc.
The Company also provides marketing and advertising services to companies.
Revenue from rendering services are recognized on an accrual basis when
services are rendered.
A. Income from Technical and support services
Revenue from rendering of technical support services is recognized upon
the delivery of the service, when due acknowledgement is received from the
client regarding the same and no significant uncertainty exists regarding the
amount of the consideration that will be derived from rendering the service.
The same are recorded in the year net of taxes based on the invoices raized
at the transaction price as prescribed by the respective agreements.
The revenue from rendering marketing, advertising, and other related services
is recognized upon the delivery of the service when no significant uncertainty
exists regarding the amount of the consideration that will be derived from
rendering the service. The same is recorded in the year net of taxes based on
the invoices raized at the rates as prescribed by the respective agreements
with customers.
C. Referral Income on distribution of financial products
Revenue is recognized upon the delivery of the service, when due
acknowledgement is received from the client regarding the same and no
significant uncertainty exists regarding the amount of the consideration that
will be derived from rendering the service. The same are recorded in the year
net of taxes based on the invoices raized at the rates as prescribed by the
respective agreements.
I nterest income on financial assets at amortized cost is calculated using the
effective interest method is recognized in the statement of profit and loss as part
of other income. Interest income is calculated by applying the effective interest
rate to the gross carrying amount of a financial asset except for financial assets
that subsequently become credit-impaired. For credit-impaired financial assets
the effective interest rate is applied to the net carrying amount of the financial
asset (after deduction of the loss allowance).
These amounts represent liabilities for goods and services provided to the Company
prior to the end of financial year which are unpaid. The amounts are unsecured and are
usually paid within 30 days of recognition. Trade and other payables are presented as
current liabilities unless payment is not due within 12 months after the reporting year.
They are recognized initially at fair value and subsequently measured at amortized cost.
A contract liability is recognized if a payment is received or a payment is due (whichever
is earlier) from a customer before the Company transfers the related services. Contract
liabilities are recognized as revenue when the Company performs under the contract
(i.e., transfers control of the related goods or services to the customer).
Borrowings are initially recognized at fair value, net of transaction costs incurred.
Borrowings are subsequently measured at amortized cost. Any difference between the
proceeds (net of transaction cost) and the redemption amount is recognized in profit or
loss for the year of borrowing using the effective interest method.
Borrowings are recognized as current liabilities unless, the Company has an
unconditional right to defer the settlement of the liability for at least 12 months after
the reporting year. Where there is a breach of a material provision of a long term loan
arrangement on or before the end of the reporting year with the effect that the liability
becomes payable on demand on the reporting date, the entity does not classify the
liability as current, if the lender agreed, after the reporting year and before the approval
of the financial statements for issue, not to demand payment as a consequence of the
breach. Borrowings are removed from the Balance Sheet when the obligation specified
in the contract is discharged, cancelled or expired. The difference between carrying
amount of a financial liability that has been extinguished or transferred to another
party and the consideration paid, is recognized in Statement of Profit and Loss as other
gains/(losses).
viii) Financial instruments
Date of recognition
The Company recognizes financial assets and liabilities when it becomes a party to the
contractual provisions of the instrument.
All financial assets and liabilities are recognized at fair value on initial recognition
which depends on the financial assets contractual cashflow characteristics and the
Companyâs business model for managing them, except trade receivables that do not
contain a significant financing component or for which the Company has applied the
practical expedient are measured at the transaction price determined under Ind AS 115.
Classification and subsequent measurement
Non-derivative financial instruments
Subsequent measurement
For subsequent measurement, the Company classifies its financial assets in the
following measurement categories:
Those to be measured subsequently at fair value (either through other comprehensive
income, or through profit or loss), and those measured at amortised cost. The
classification depends on the entityâs business model for managing the financial assets
and the contractual terms of the cash flows.
Financial liabilities are recognized when the Company becomes a party to the contractual
provisions of the instrument. Financial liabilities in case not at fair value through profit
or loss, are initially measured at fair value minus transaction costs that are attributable
to the acquisition of the financial liabilities. Borrowings are recognized initially at fair
value, net of transaction costs incurred, and subsequently carried at amortized cost,
any difference between the initial carrying value and the redemption value is recognized
in the Statement of Profit and Loss over the year of the borrowings using the effective
interest rate method. Subsequent to initial recognition these financial liabilities are
measured at amortized cost using effective interest method.
In order for a financial asset to be classified and measured at amortized cost or fair
value through OCI, it needs to give rize to cash flows that are ''solely payments of
principal and interest (SPPI) on the principal amount outstanding. This assessment is
referred to as the SPPI test and is performed at an instrument level. Financial assets
with cash flows that are not SPPI are classified and measured at fair value through
profit or loss, irrespective of the business model.
A financial asset is measured at amortized cost when they are held within a business
model whose objective is to hold financial assets in order to collect contractual cash
flows and the contractual terms of the financial assets give rize on specified dates
to cash flow that are solely payments of principal and interest on principal amount
outstanding. The amortized cost of a financial asset is also adjusted for impairment
loss, if any. For assets measured at fair value, gains and losses will either be recorded in
profit or loss or other comprehensive income. For investments in debt instruments, this
will depend on the business model in which the investment is held. For investments in
equity instruments, this will depend on whether the Company has made an irrevocable
election at the time of initial recognition to account for the equity investment at fair
value through other comprehensive income.
An equity instrument is any contract that evidences a residual interest in the assets of
an entity after deducting all of its liabilities. Equity instruments issued by the Company
is recognized at the proceeds received, net of directly attributable transaction costs.
Compound financial instruments
The component parts of compound financial instruments issued by the Company are
classified separately as financial liabilities and equity in accordance with the substance
of the contractual arrangements and the definitions of a financial liability and an equity
instrument. A conversion option that will be settled by the exchange of a fixed amount
of cash or another financial asset for a fixed number of the Companyâs own equity
instruments is an equity instrument.
At the date of issue, the fair value of the liability component is estimated using the
prevailing market interest rate for similar non-convertible instruments. This amount is
recorded as a liability on an amortised cost basis using the effective interest method
until extinguished upon conversion or at the instrumentâs maturity date.
The conversion option classified as equity is determined by deducting the amount of
the liability component from the fair value of the compound instrument as a whole. This
is recognised and included in equity, net of income tax effects, and is not subsequently
remeasured.
Transaction costs that relate to the issue of the convertible instruments are allocated
to the liability and equity components in proportion to the allocation of the gross
proceeds. Transaction costs relating to the equity component are recognised directly in
equity. Transaction costs relating to the liability component are included in the carrying
amount of the liability component and are amortised over the lives of the convertible
instrument using the effective interest method.
Investment in equity shares of subsidiary
Investments in subsidiaries are carried at cost less accumulated impairment losses, if
any. The Company reviews its carrying value of investments carried at cost annually,
or more frequently when there is indication for impairment. If the recoverable amount
is less than its carrying amount, the impairment loss is recorded in the Statement of
Profit and Loss.
When an impairment loss subsequently reverses, the carrying amount of the
Investment is increased to the revized estimate of its recoverable amount, so that the
increased carrying amount does not exceed the cost of the Investment. A reversal of an
impairment loss is recognized immediately in Statement of Profit or Loss.
Derecognition of financial instrument
1. The Company derecognizes the financial asset when the contractual rights to the
cash flow from the financial asset expires or it transfers the contractual rights to
receive the cash flows from the asset. A financial liability is derecognized when the
obligation specified in the contract is discharged or cancelled or expires.
2. The Company has transferred its rights to receive cash flows from the asset and
the Company has transferred substantially all the risks and rewards of the asset,
or the Company has neither transferred nor retained substantially all the risks and
rewards of the asset, but has transferred control of the asset.
3. A financial liability is derecognized when the obligation under the liability is
discharged, cancelled or expires. where 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 a derecognition of the original liability and the recognition of a new
liability. In this case, a new financial liability based on the modified terms is
recognized at fair value. The difference between the carrying value of the original
financial liability and the new financial liability with modified terms is recognized
in profit or loss.
Financial assets and financial liabilities are offset and the net amount presented in the
Balance Sheet when, and only when, the Company currently has a legally enforceable
right to set off the amounts and it intends either to settle them on a net basis or to
realize the asset and settle the liability simultaneously.
The Company measures financial instruments such as derivatives and certain
investments, at fair value at each 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
- I n 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 a financial 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. The Company uses valuation
techniques that are appropriate in the circumstances and for which sufficient data is
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 categorized 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 - Inputs are quoted prices (unadjusted) in active markets for identical assets
or liabilities.
Level 2 - Inputs are 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 are not based on observable market data (unobservable inputs). Fair
values are determined in whole or in part using a valuation model based on assumptions
that are neither supported by prices from observable current market transactions in the
same instrument nor are they based on available market data.
For assets and liabilities that are recognized in the balance sheet on a recurring basis, the
Company determines whether transfers have occurred between levels in the hierarchy
by re-assessing categorization(based on the lowest level input that is significant to the
fair value measurement as a whole) at the end of each reporting year.
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.
ix) Impairment of Financial asset
The Company assesses on a forward-looking basis the expected credit loss associated
with its assets carried at amortized cost. The impairment methodology applied
depends on whether there has been a significant increase in credit risk since its initial
recognition. Note 44.4 (iii) details how the Company determines whether there has
been a significant increase in credit risk.
For trade receivables only, the Company applies the simplified approach permitted
by Ind AS 109 Financial Instruments, which requires expected lifetime losses to be
recognized from initial recognition of the receivables. The impairment losses and
reversals are recognized in Statement of Profit and Loss.
x) Taxes
The income tax expense or credit for the year is the tax payable on the current periodâs
taxable income based on the applicable income tax rate for each jurisdiction adjusted
by changes in deferred tax asset and liabilities attributable to temporary differences
and to unused tax losses.
The current income tax charge is calculated on the basis of the tax laws enacted or
substantively enacted at the end of the reporting period in the countries where the
Company and its subsidiary operate and generate taxable income. Management
periodically evaluates positions taken in tax returns with respect to situations in which
applicable tax regulation is subject to interpretation. It establishes provisions where
appropriate on the basis of amounts expected to be paid to the tax authorities.
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).
Deferred income tax is provided in full, using the balance sheet approach, on temporary
differences arising between the tax base of assets and liabilities and their carrying
amounts in the standalone financial statements. Deferred income tax is also not
recognized if it arizes from initial recognition of an asset or liability in a transaction other
than business combination that at the time of transaction affects neither accounting
profit nor taxable profit (tax loss). Deferred income tax is determined using tax rates
(and laws) that have been enacted or substantially enacted by the end of the reporting
period and are expected to apply when the related deferred income tax asset is realized
or the deferred income tax liability is settled.
Deferred tax is recognized for all deductible temporary and unused tax losses and only
if it is probable that future taxable amounts will be available to utilize those temporary
differences and losses. Considering the past history of consecutive losses, Deferred tax
asset has not been recognized in the Financial Statements.
Deferred tax assets and liabilities are offset when there is a legally enforceable right
to offset current tax assets and liabilities and when the deferred tax balances relate to
the same taxation authority. Current tax assets and tax liabilities are offset when the
Company has a legally enforceable right to offset and intends either to settle on a net
basis, or to realize the asset and settle the liability simultaneously.
Current and deferred tax is recognized in profit or loss, except to the extent that it
relates to items recognized in other comprehensive income or directly in equity. In this
case, the tax is also recognized in the other comprehensive income or directly in equity,
respectively.
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.
Goods and Services Tax (GST) on acquisition of assets or on incurring expenses
Expenses and assets are recognized net of the amount of GST, 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 recognized as part of the cost
of acquisition of the asset or as part of the expense item, as applicable.
- 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 other current/non-current assets/ liabilities in the balance sheet.
Taxation authority will accept tax position taken by the Company. Uncertain tax positions
are reflected in the overall measurement of the Companyâs tax expense and are based
on the most likely amount or the expected value arrived at by the Company which
provides a better prediction of the resolution of uncertainty. Uncertain tax positions
are monitored and updated as and when new information becomes available, typically
upon examination or action by the taxing authorities or through statute expiration and
judicial precedent. The Company considers whether a particular amount payable or
receivable for interest and penalties is an income tax, in which case Ind AS 12 is applied
to that amount. When an amount payable for interest and penalties is determined to
be within the scope of Ind AS 37, it is presented as part of financing cost or other
expenses, respectively unless when there is an overall settlement with tax authority and
the interest and penalties cannot be identified separately in which case it is determined
to be part of income taxes.
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