A provision is recognised when the Companyhas a present legal obligation as a result of apast event and it is probable that an outflow ofresources will be required to settle the obligation,in respect of which a reliable estimate can bemade. Provisions, excluding retirement benefits,are not discounted to their present value andare determined based on the best estimaterequired to settle the obligation at the balancesheet date. These are reviewed at each balancesheet date and adjusted to reflect the currentbest estimates.
Contingent losses arising from claims other thaninsurance claims, litigation, assessment, fines,penalties, etc. are recorded when it is probable
that a liability has been incurred and the amountcan be reasonably estimated.
A disclosure for a contingent liability, other thanthose under policies, is made when there is apossible obligation or a present obligation thatmay not result in an outflow of resources.
Show cause notices / summons issued by variousgovernment authorities are not considered asobligations. When demand notices are raisedagainst such show cause notices and aredisputed by the Company, these are classifiedas disputed obligations.
When there is a possible obligation or a presentobligation, in respect of which, the likelihood ofoutflow of resources is remote, no provision ordisclosure is made.
Contingent liabilities are not recognised in theFinancial Statements.
Contingent assets are neither recognised nordisclosed in the Financial Statements.
Receipts and Payments Account has beenprepared as prescribed by IRDAI (Actuarial,Finance and Investment Functions of Insurers)Regulations, 2024 under the ‘Direct method’in accordance with Accounting Standard 3on Cash Flow Statements notified under theSection 133 of the Companies Act.
Cash comprises cash on hand, cheques onhand and demand deposits with banks. Cashequivalents are term deposits with an originalmaturity of three months or less from the dateof acquisition, highly liquid investments that arereadily convertible into known amount of cashand which are subject to an insignificant risk ofchange in value.
Expenses related to issue of Securities areadjusted against the share premium (securitiespremium) account as per section 52 ofCompanies Act, 2013.
1. During the year ended March 31, 2026 Go Digit has received Income Tax Assessment Order for FY 2022-23with a Notice of demand resulting into an addition of Rs.38,443 lakhs in contingent liability (inclusive ofinterest) on account of disallowance of certain expenses as inadmissible and on account of non-deductionof TDS. Company has been advised that the adopted tax position is legally tenable being an industry wiseissue. Appeal against the same has been filed before the appropriate authority.
2. Contingent Liability includes demand of Rs.17,029 lakhs (inclusive of penalty) from Chennai SouthCommissionerate towards GST applicability on coinsurance inward premium and reinsurance commission onreinsurance ceded, originally initiated by DGGI Kolhapur. Matter relates to an industry wide issue and in viewof statutory clarification issued by the Ministry of Finance and the consistent favorable judicial precedents,management is of the view that the matter is not legally tenable.
3. The company has contingent liability of Rs.1,166 lakhs on account of ongoing enquiry by DGGI MumbaiZonal Unit with respect to group health insurance policies issued to SEZ Unit and developers, not eligible forbenefit of zero-rated tax. At present, matter is being kept in abeyance, awaiting the outcome of an industrywide writ petition filed before Bombay High Court. Accordingly, no immediate financial implication arises forthe Company.
4. Encumbrances on assets
The assets of the Company are free from all encumbrances except for fixed deposit as on March 31, 2026 amountto ^ 31 Lakhs (as on March 31, 2025 - ^ 29 Lakhs) which is placed under lien against bank guarantee issued bythe banks.
5. Capital commitments
Outstanding capital commitments as on March 31, 2026 amount to ^ 2,906 Lakhs (as on March 31, 2025 - ^ 1,587Lakhs).
6. Claims
All claims net of reinsurance ceded are incurred and paid in India.
7. Claims where the payment period exceeds four years are Nil (for the year endedMarch 31, 2025 - Nil)8. Premium
All premium net of reinsurance is written and received in India.
Premium income recognised on varying risk pattern is Nil (for the year ended March 31, 2025 - Nil).
9. Extent of risks retained and reinsured
Extent of risk retained and reinsured with respect to gross written premium (excluding excess of loss reinsuranceand catastrophe reinsurance premium of ^ 4,862 lakhs (for the year ended March 31, 2025 ^ 4,204 lakhs) is setout below
Pursuant to the Master Circular on Corporate Governance for Insurers, 2024 issued by the Insurance Regulatoryand Development Authority of India (IRDAI), the Company has adopted revised policies on the appointment andremuneration of Directors and employees. These policies have been implemented in substitution of the Company’serstwhile remuneration policy, in order to align the remuneration framework with the applicable IRDAI regulationsand the Master Circular on Corporate Governance.
No remuneration has been paid to the Non-Executive/Independent directors of the company for financial year2025-2026 except sitting fees paid for meetings attended.
Expenses towards gratuity and compensated absences provision are determined actuarially on an overallcompany basis and accordingly have not been considered in the above information. In addition to the above MD &CEO and KMPs are entitled to ESOP under the Company’s ESOP Scheme. During the year ended March 31, 2026Company has granted - 129,274 ESOP’s to MD & CEO & 596,594 to KMPs (For the year ended March 31, 2025 -21,852 ESOP’s to MD & CEO and 1,85,879 to KMPs).
The Company takes commercial premises on lease as well as enters into integrated facilities services agreementsfor ‘pay as you go’ model. The minimum lease payments to be made in future towards non-cancellable leaseagreements are as follows:
20. Loan restructuring
The Company has not given any loans as on March 31, 2026 (as on March 31, 2025 - Nil)
21. Summary of Financial Statements
The summary of Financial Statements is included as Annexure VI.
22. Foreign exchange gain / (loss) net
During the year ended March 31, 2026 foreign exchange net loss incurred by the Company is ^ 107 Lakhs (for theyear ended March 31, 2025 net gain ^ 30 Lakhs) which is netted off in Schedule 4 under the heading ‘Miscellaneousexpenses’.
As at March 31, 2026, foreign currency exposure is ^ 1,218 Lakhs (For year ended March 31, 2025 ^ 931 Lakhs).
26. Premium deficiency
Premium deficiency for the Company as on March 31, 2026 is Nil (as on March 31, 2025- Nil) in accordance withthe applicable provisions of the IRDAI Actuarial, Finance and Investment Functions of Insurers Regulations, 2024read with Master Circular issued their under Actuarial & Allied Functions, 2024.
27. Statement showing age-wise analysis of unclaimed amounts of policyholders
The Statement is included as Annexure VII.
32. Investor Education & Protection Fund
For the year ended March 31, 2026 & March 31, 2025 the Company is not required to transfer any amount into theInvestor Education & Protection Fund.
33. Disclosure of other work given to auditors
Pursuant to Master Circular on Corporate Governance for Insurers, 2024 issued by IRDAI on May 22, 2024, theservices of statutory auditors are disclosed below
29. Provision for free look period
As on March 31, 2026, the provision for free look period is ^ 0.13 Lakhs (as on March 31, 2025 ^ 0.12 Lakhs), ascertified by Appointed Actuary.
30. Litigations
The Company’s pending litigations/proceedings comprise of claims against the Company in various tribunals/courts, proceedings pending with Tax Authorities and the Company’s/counterparty’s appeal against ordersof lower courts/tribunals/tax authorities. The Company has reviewed all pending litigation/proceedings andensured adequate provisions, wherever required and disclosed the contingent liabilities, wherever applicable, inits financial statements. The Company does not expect any material impact on its financial position with respectto the outcome of such litigations/proceedings (as on March 31, 2025 - Nil). (Refer Note no.3 of Schedule 16 fordetails on contingent liabilities).
31. Long term contracts
As on March 31, 2026 the Company did not have any outstanding long term derivative contracts. (as on March 31,2025 - Nil)
During the year ended March 31, 2026, the Company, pursuant to it’s Employee Stock Option Plan, allotted876,621 equity shares of ^ 10 each at face value of ^ 10 per share; 219,689 equity shares of ^ 10 each at apremium of ^ 17 per share ; 213,734 equity shares of ^ 10 each at a premium of ^ 65 per share ; 151,893 equityshares of ^ 10 each at a premium of ^ 162 per share; 3,419 equity shares of ^ 10 each at a premium of ^ 273 pershare; 7,741 equity shares of ^ 10 each at a premium of ^ 304 per share.
The Company has allotted 4,13,60,294 Equity Shares of ^ 10 each at a premium of ^262 through the Initial PublicOffer during the year ended March 31, 2025.
During the year ended March 31, 2025, the Company, pursuant to it’s Employee Stock Option Plan, allotted27,07,578 equity shares of ^ 10 each at face value of ^ 10 per share; 24,92,633 equity shares of ^ 10 each at apremium of ^ 17 per share ; 11,18,816 equity shares of ^ 10 each at a premium of ^ 65 per share ; 1,64,569 equityshares of ^ 10 each at a premium of ^ 162 per share; 15,587 equity shares of ^ 10 each at a premium of ^ 304 pershare; 2,053 equity shares of ^ 10 each at a premium of ^ 375 per share.
Share Application Money pending allotment as on March 31, 2026 amounts to Nil (as on March 31, 2025- Nil).
The Government of India has notified new Labour Code viz Code on wages 2019, Code on Social Security 2020,Industrial Relation Code 2020, and Occupational Safety, Health and Working Condition Code 2020 (collectivelyreferred to as the New Labour Codes). These Codes have been made effective from November 21, 2025.The Company reassessed its employee benefit obligations based on the revised definition of wages andexpanded eligibility criteria. An incremental gratuity expense of ^ 733 lakhs was recognized as past service costduring the year ended March 31, 2026, reducing profit and increasing gratuity obligations. As of March 31, 2026,unrecognized past service cost relating to gratuity obligations amounted to ^ 196 lakhs.
On December 11, 2023 & March 14, 2024, The Board of Directors of the Company have approved raising of capitalby issuance of Unsecured, Unrated, Unlisted, Subordinated Redeemable Bonds in the nature of Non-ConvertibleDebentures (“NCDs”) of ^ 20,000 Lakhs & ^ 15,000 lakhs on a private placement basis, in accordance with theprovisions of the IRDAI (Other Forms of Capital) Regulations, 2022, and the Companies Act, 2013.
During the year, an amount of ^ 54 Lakhs (Previous year ^ 5 Lakhs) was collected towards Environment ReliefFund for public liability policies and an amount of ^ 53 Lakhs (Previous year ^ 6 Lakhs) has been transferredto “Central Pollution Board”, “Environment Fund Account” as per Notification of Environment Relief Fund (ERF)scheme under the Public Liability Insurance Act, 1991 as amended. The balance amount of ^ 0.5 Lakhs (Previousyear ^ 0.5 Lakhs) is included under statutory dues payable in Schedule 13.
In line with IRDAI (Expenses of Management, including Commission, of Insurers) Regulations, 2024, the Company’sexpenses relating to the insurance business is in excess of regulatory limits for the year ended March 31, 2026,the company has applied for forbearance for previous year and is in process of applying for forbearance for thecurrent year, as available under the regulatory framework, which is currently under consideration with IRDAI.
Further In accordance with the IRDAI Regulations, operating expenses in excess of prescribed limits arerequired to be shown under ‘Other Income’ as ‘Contribution from Shareholders Funds towards Excess EOM’ andsimultaneously to be charged to Profit & Loss account as ‘Contribution to Policyholders Funds towards ExcessEOM’. Accordingly operating expenses in excess of overall limits of ^ 46,873 Lakhs (previous year - operatingexpenses in excess of overall limits of ^ 32,401 Lakhs) is reported as other income under Miscellaneous segmentof the revenue account.
40. Disclosure on Audit Trail
The Company has implemented a framework to identify relevant applications from the overall IT universe as"Books of account” as per the Companies Act 2013. The Company’s books of account maintained electronicallycomply with the requirements of the Companies Act 2013, read with relevant rules and notifications, except: -
(a) The Company has enabled database level audit trail (edit logs) feature for its accounting on August 05, 2024and investment management application on June 12, 2024. Access of personnel to database is severelyrestricted, provided only on exceptional basis and is well documented during financial year 2025-26. Theapplication-level audit trail (edit logs) feature was operating effectively during the whole financial year 2025¬26.
(b) Company has enabled audit trail (edit logs) feature for all identified financial accounting tables on 07 Jun2024 for policy and claims administration system.
41. Disclosures pursuant to Rule 3(1) of the Companies (Accounts) Rules, 2014:-
The Company has not advanced or loaned or invested (either from borrowed funds or share premium or any othersources or other kind of funds) to or in any other person or entity, including foreign entity ("Intermediaries”), withthe understanding, whether recorded in writing or otherwise, that the Intermediary shall, directly or indirectlylend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company(“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
The Company has not received any funds from any person or entity, including foreign entity ("Funding Parties”),with the understanding, whether recorded in writing or otherwise, that the Company shall, directly or indirectly,lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party("Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries
42. Details of Regrouping/Reclassification
Interest income earned on fixed deposits, earlier classified under "Investment Income”, has been reclassifiedand presented under "Other Income” based on a reassessment of the nature and purpose of such deposits.The corresponding prior-year comparatives have been regrouped to maintain consistency in presentation. Thereclassification is limited to presentation only and has no impact on the Company’s total income or profit.
43. Expenses other than those related to Insurance Business (profit and loss account):
Expenses other than those related to insurance business includes, director sitting fees, shareholders chargefor brand value creation expenses, managerial remuneration, audit fee payable for special purpose financialstatements, provision for tax matters, investor engagement expenses, investment operations expenses related toshareholders funds, rent equalisation levy and ESOPs fair value charge.
44. Proposed Scheme of Amalgamation
The Board of Directors of the Company, at its meeting held on December 19, 2025, has approved in principle aproposal for the amalgamation of Go Digit Infoworks Services Private Limited ("Transferor Company”) into theCompany, subject to receipt of requisite statutory, regulatory, shareholder, creditor and judicial approvals, as maybe applicable. The proposed amalgamation is intended to be implemented through a Scheme of Amalgamationunder Sections 230 to 232 of the Companies Act, 2013,("Scheme”) and is subject to, inter alia:
• approval of the shareholders and creditors of the respective companies, as may be directed;
• approvals from the stock exchange(s), Securities and Exchange Board of India ("SEBI”), Insurance Regulatoryand Development Authority of India ("IRDAI”), the Competition Commission of India ("CCI”), and otherregulatory authorities, as applicable; and
• sanction of the Hon’ble National Company Law Tribunal (NCLT).
As on the date of approval of these financial statements, the proposed Scheme is under process and has notyet become effective. Accordingly, no accounting impact of the proposed amalgamation has been given effectto in these financial statements. The Company will appropriately account for and disclose the effects of theamalgamation in accordance with applicable accounting standards, upon the Scheme becoming effective.
As per the Scheme, the Appointed Date and the Effective Date are proposed to be the same.