Analysis of Financial Statements

A. INTRODUCTION OF THE COMPANY

About
Paytm (Pay through Mobile) is an Indian multinational financial technology company, that
specialises in digital payments & financial services, based in Noida. Paytm was founded in
August 2010 with an initial investment of Rs.16.45 Cr approximately by its founder Vijay
Shekhar Sharma under One97 Communication in New Delhi, India. Paytm initially started as
a platform for mobile recharges, DTH recharge & bill payments. Over the years, Paytm has
expanded its services to include digital wallets, online shopping, ticket booking & financial
services such as insurance & mutual funds.

History
Paytm was founded in Noida in August 2010. It began as a prepaid mobile and DTH recharge
platform before expanding to include debit card, postpaid mobile, and landline bill payments.
It launched the Paytm Wallet in 2014, which Indian Railways and Uber accepted as a payment
method. It began e-commerce with online sales and bus tickets. It added education fees, metro
recharges and electricity, gas and water bill payments in 2015. In 2016, it introduced ticketing
for movies, events, and amusement parks, as well as flight ticket bookings and Paytm QR.
Later that year, it introduced rail reservations and gift cards.

Paytm was funded by a number of major investors, including Alibaba Group, SoftBank, and
Berkshire Hathaway. It became India's first payment app to surpass 10 million app downloads
in 2017. It also introduced Paytm Gold, a product that allowed users to purchase as little as one
gramme of pure gold online. Paytm Payments Bank and 'Inbox,' a messaging platform with in-
chat payments, were also introduced. By 2018, merchants could accept Paytm, UPI, and card
payments directly into their bank accounts at no cost. It also released the 'Paytm for Business'

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app (now known as the Business with Paytm App), which allows merchants to track payments
and day-to-day settlements. It formed a joint venture with Alibaba Group-owned gaming
company AGTech Holdings in January 2018 to launch Gamepind, a mobile gaming platform.
In June 2019, it was renamed Paytm First Games. In March 2019, the company launched Paytm
First, a subscription-based loyalty programme, and in May 2019, it partnered with Citibank to
launch the Paytm First credit card.

Paytm launched its initial public offering (IPO) in November 2021, raising Rs 18,300 crore
(US$2.3 billion) at a valuation of Rs 20 billion. It was India's largest IPO ever. However, the
stock price plummeted sharply on the day of the IPO, marking the largest drop on a listing day
in Indian IPO history.

In December 2021, Paytm launched Paytm Wealth Academy.

Mission:
To bring 500 million unserved and underserved Indians into the mainstream economy through
its financial services.

Vision:
To empower millions of Indians with innovative financial solutions, drive digital inclusion, and
transform the way people transact and interact with money.

The company’s vision tagline is ‘Paytm Karo’.

Founder:
Mr. Vijay Shekhar Sharma

Industry:
Fintech (Financial Technology)

Parent Company:
One97 Communication

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Promoters:
Mr. Vijay Shekhar Sharma Mr. Ravi Chandra Mr. Neeraj Arora
Chairman, MD & CEO Adusumalli Non-Executive Independent
(Founder) Non-Executive Director Director

Mr. Madhur Deora

Mr. Ashit Ranjit Lilani
Executive Director, President, Mr. Douglas Feagin
Non-Executive Independent
and Group Chief Financial Non-Executive Director
Director
Officer
Mr. Mark Schwartz
Mrs. Pallavi Shardul Shroff Mr. Amit Khera
Non-Executive Independent
Non-Executive Independent Company Secretary &
Director
Director Compliance officer

Products:
1) Paytm Insider
Paytm Insider is a mobile app that helps to book tickets for Cricket matches, live
entertainment shows and sports games online.
2) Paytm Payments Bank
Paytm Payments Bank is an Indian payments bank, founded in 2017 and headquartered
in Noida and is part of mobile payment company Paytm.
3) Paytm Money
Paytm Money is a SEBI registered Investment Adviser (IA) that offers investment
execution & advisory services.
4) Paytm Insurance
Paytm Insurance Broking offers you a wide variety of insurances ranging from car
insurance, two-wheeler insurance to health insurance, life insurance and so on.
5) Paytm First Games
First Games is the platform for sports and online card game fans.

Services:
1) Mobile payments
A mobile payment, also referred to as mobile money, mobile money
transfer and mobile wallet, is any of various payment processing services operated
under financial regulations and performed from or via a mobile device.

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Board Of Directors:
1. Mr. Vijay Shekhar Sharma
He is the Managing Director and Chief Executive Officer of our Company and the
Chairman of our Board. He holds a bachelor’s degree in electronics and
communications from the Delhi College of Engineering. Mr. Sharma is the founder of
the Company and oversees the Company’s key strategic efforts including engineering,
design and marketing. Mr. Sharma has featured in ‘2017 Time 100’, the list of ‘hundred
most influential people in the world’ by Time magazine.

2. Mr. Ravi Chandra Adusumalli

He is a Non-Executive Director of a Company and a nominee of SAIF and Elevation
Capital. Mr. Adusumalli holds a bachelor’s degree in economics and government from
Cornell University. He is currently the managing partner of Elevation Capital.

3. Mr. Madhur Deora

Mr. Madhur Deora has been associated with the Company since October 3, 2016. He
holds a bachelor’s degree of Science in Economics from the Wharton School of the
University of Pennsylvania. In his present role with the Company, he is responsible for
devising the financial and operational strategy, investor relations, assisting with a
commercial roadmap to realize the long-term vision of the organization and driving
overall governance. He was previously associated with Citi Investment Banking for 17
years.

4. Mr. Neeraj Arora

Mr. Neeraj Arora is an Independent Director of paytm. He holds a bachelor’s degree of
technology in mechanical engineering from the Indian Institute of Technology, Delhi
and has completed a post graduate program in management from the Indian School of
Business. He was previously associated with Google Inc. and WhatsApp, Inc. He is the
founder of halloapp, Inc.

5. Mr. Ashit Ranjit Lilani

Mr. Ashit Ranjit Lilani is an Independent Director of paytm. He holds a bachelor’s
degree in commerce from the Bangalore University and a master’s degree in business

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 administration from Philadelphia College of Textiles and Science. He is the managing
partner and co-founder of Saama Capital.

6. Mrs. Pallavi Shardul Shroff

She is an Independent Director of at paytm. Ms. Shroff holds a bachelors’ degree in law
and a master’s degree in management studies from the University of Bombay. She
currently serves as the managing partner of Shardul Amarchand Mangaldas & Co. Mrs.
Shroff was recently conferred the ‘Lifetime Achievement Award’ at the Chambers India
Awards 2019 and also been recognised as one of the ‘most powerful women in Indian
business’ by Business Today, seven years in succession.

7. Mr. Gopalasamudram S Sundararajan

He is an Independent Director of our Company. Mr. Sundararajan holds a Bachelor of
Engineering degree from Coimbatore and a Post Graduate Diploma in Management
from the Indian Institute of Management (IIM), Ahmedabad. Mr. Gopalasamudram
Srinivasaraghavan Sundararajan is presently serving on Boards of several reputed
companies in the Banking and Financial Service Industry.

Awards and recognition

Paytm won the award for Best UPI App, Most Design User-friendly Fintech App and
the Most Innovative Use of Technology at Global Fintech Fest 2022.
The Divide: A Social Experiment by Paytm won at the ET Brand Equity Spott Awards
2022 under Social Awareness through Short film/Videos category.
Paytm won the Best Unicorn title at BW Businessworld Unicorn Summit and Awards
2022.
At the Rural and Urban Development Summit and Awards 2022 presented by the
Minister of State for Ministry of Housing and Urban Affairs, Government of India,
Paytm won the awards for Most Trusted Brand of the Year and Paytm Soundbox won
the award for Best IoT Solution of the Year.
Paytm was recognised as the 'Employer of the Future' by the Fortune India magazine.
It won the IAMAI's India Digital Award 2021 for Best FinTech Growth Story by the
Internet and Mobile Association of India.

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 It was conferred Outstanding Startup of the Year Award at Forbes Leadership Awards
2016.
Paytm was awarded the FT Future of Fintech Awards by the Financial Times in 2016.
Paytm was announced as the finalist of the Meffys Awards 2015 under the mobile
money category.
It won the MMA Smarties Award Gold for Mobile App & Silver for mCommerce by
the Mobile Marketing Association in 2014.

Location:
• Paytm Corporate Office, One Skymark, Tower-D, Plot No. H-10B, Sector-98, Noida,
Uttar Pradesh - 201304, India
• One97 Communications Ltd, IV Floor, Enterprise Centre, Domestic Airport, Vile Parle
East, Mumbai - 400 099

Website:
• paytm.com

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B. ECONOMIC ANALYSIS

Paytm has had significant economic influence in India. It has aided the expansion of the digital
payments industry, resulting in a more efficient and transparent financial system. Paytm has
also contributed to lower transaction costs for both businesses and consumers. This has
simplified business operations and facilitated customer transactions.

Furthermore, Paytm has created jobs and aided India's economic growth. The company directly
employs over 20,000 people and indirectly supports millions of jobs through its merchant and
partner ecosystem. Paytm adds to the government's tax revenue as well.

• Digital payments growth: Paytm helped in the expansion of digital payments in India.
Only 10% of Indians made digital payments in 2010. Over 80% of Indians now make
digital payments. Paytm has played a significant part in this transformation.
• Cost reduction: Paytm helped in lowering transaction costs for both businesses and
consumers. Paytm, for example, provides merchants with a free payment gateway. This
has enabled corporations to cut costs while increasing earnings.
• Job creation: Paytm has produced jobs and aided India's economic growth. The
company directly employs over 20,000 people and indirectly supports millions of jobs
through its merchant and partner ecosystem. Paytm adds to the government's tax
revenue as well.

In addition to these direct economic benefits, Paytm has a variety of indirect economic
impacts. Paytm, for example, has helped to increase financial inclusion, which has resulted
in more people having access to financial services.

Overall, Paytm has had a good economic impact in India. It has contributed to the
promotion of cashless transactions, financial inclusion, economic growth, and job creation.

However, Paytm is still a young startup. It is facing increased competition from other digital
payment companies such as Google Pay and PhonePe. Paytm is also encountering
regulatory problems. For example, the Reserve Bank of India has placed limits on Paytm
Payments Bank.

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C. MARKET ANALYSIS

Paytm is an important digital payments and financial services firm in India. It is India's
largest digital payments company, with 90 million average monthly transacting users and
over 8 million merchants. Paytm provides a diverse range of products and services,
including mobile payments, e-commerce, bill payments, financial services, and more.

The Indian digital payments market is quickly expanding. The market is anticipated to be
valued $19 trillion by 2025, up from $13 trillion in 2022. Paytm is well-positioned to
benefit from this expansion. The company has a strong brand, a significant user base, and
a diverse product and service offering.

Paytm is expected to maintain its position as a prominent participant in the Indian digital
payments business. The corporation has several advantages over its competitors, including
a vast user base, a diverse product and service offering, and a strong brand.

Here are some key trends in the Indian digital payments market that are likely to
impact Paytm:

• The growth of e-commerce: E-commerce is quickly expanding in India. As more

consumers shop online, this is fuelling the expansion of digital payments.
• The rise of UPI: UPI is a real-time payment system that enables users to
instantaneously transfer money between bank accounts. UPI is gaining popularity
in India, and it poses a significant challenge to Paytm, which has always relied on
its own wallet system.
• The government's push for digital payments: The Indian government encourages
digital payments in a variety of ways. The government, for example, has created the
Digital India initiative, which aspires to transform India into a cashless society.

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D. INDUSTRY ANALYSIS
About
Paytm is a company that specializes in digital payments and financial services in India. This
market is rapidly growing because of increased smartphone and internet adoption and the
government's push to promote cashless transactions. Payment gateways & digital wallets
marked the beginning of India's fintech sector. Some of the pioneers in this field included
businesses like Paytm & freecharge. The main emphasis during this time was on digitalizing
and improving payment processes. Now, Paytm is a leading player in the Indian digital
payments market, and it is well-positioned to benefit from the continued growth of this market.

The introduction of the Unified Payment Interface (UPI) is 2016 is also played a significant
role in the growth of the fintech industry. It is a game-changer for India's digital payments
ecosystem. UPI transactions in India witnessed a growth of 650% at the semi-urban and rural
stores in India.

Competitors
Paytm is India's leading digital payments and financial services company. It competes against
a variety of other players, including:

• Other popular digital wallets in India include Google Pay, PhonePe, and Amazon Pay.
• Traditional banks provide digital payments and financial services as well.
• In the Indian digital payments and financial services business, several new entrants are
also developing.

Market Share
PhonePe and Google Pay had the highest UPI app market share of about 43 percent as of first
half of financial year 2022. This was followed by Paytm with app market share of 8 percent.

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 E. FINANCIAL ANALYSIS

Stock Market Price:

• 839.00 INR as on September 21, 2023

Traded as
• NSE: PAYTM
• BSE: 543396

ISIN Number:
• INE982J01020

Cashflow Statement
₹ in crore

Year ended Year ended Year ended Year ended

Particulars March 31, 2022 March 31, 2021 March 31, 2020 March 31, 2019
Cash flow from operating activities:
Loss before tax (2385.1) (1,698.31) (2958.12) (4223.69)
Depreciation and amortization expense 247.3 178.45 174.2 99.51
Interest income (251.8) (222.85) (59.34) (69.58)
Interest Income on unwinding of discount - financial
(9.2) (21.77) (33.44) (45.75)
assets measured at amortized cost
Interest on borrowing at amortized cost 29.4 21.58 25.25 15.08
Interest and finance charges on lease liabilities 8.6 12.31 21.79 -
Gain on lease termination (0.3) (5.00) - -
Stock acquisition rights (PayPay Corporation) - (22.14) - -
Trade receivables / advances written off 39.1 6.69 1.82 1.62
Provision for advances 6.2 1.86 6.50 12.24
Loss allowance for financial assets 43.2 42.80 31.96 20.56
(Gain) / loss on sale of investment in associates and
- (1.85) 10.29 (42.20)
subsidiaries
Liabilities no longer required written back (1.9) (3.04) (5.12) (5.91)
Provision for impairment of investments in associates - 30.00 9.96 4.55
Property, plant and equipment and intangible assets
1.1 0.32 0.20 22.30
written off
Impairment of goodwill 2.4 - 284.41 120.17
Rent equalisation reserve - - - 0.31

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 Share based payment expenses 809.3 112.54 166.06 154.19
Provision for employee incentive 1.5 6.70 46.71 (9.84)
Share of result of associates/ joint ventures 45.9 74.01 56.00 (14.61)
Fair value gain on financial instruments measured at
(21.5) (89.92) (135.33) (218.91)
FVTPL (net)
Profit on sale of property, plant, and equipment (net) (0.7) (1.83) (1.19) (1.01)
Operating loss before working capital changes (1436.5) (1,579.45) (2,357.07) (4,180.97)
Working capital adjustments:
Increase/(decrease) in trade payables 148.1 (3.33) (119.95) 284.01
Increase/(decrease) in provisions 43.4 (8.52) 21.19 11.74
Increase /(decrease) in other current liabilities and
141.2 (27.27) 349.63 457.70
contract liabilities
Increase/(decrease) in other financial liabilities 1333.8 266.91 (477.09) 449.43
(Increase)/decrease in trade receivables (319.2) (6.7) (74.47) 224.76
(Increase)/decrease in other financial assets (918.7) (638.4) 213.61 (628.56)
(Increase)/decrease in other current and non-current
80.5 (272.90) 147.20 (846.89)
assets
(Increase)/decrease in loans - - (53.06) (83.36)
Cash generated from/(used in) operations (1088.4) (2,269.67) (2,350.04) (4,312.14)
Tax paid, net of refunds (147.9) 187.11 (26.51) (183.49)
Net cash inflow / (outflow) from operating activities (A) (1236.3) (2,082.56) (2,376.55) (4,495.63)

₹ in crore

Year ended Year ended Year ended Year ended

Particulars March 31, 2022 March 31, 2021 March 31, 2020 March 31, 2019
Cash flow from/(used in) investing activities
Purchase of property, plant and equipment and
(507.1) (192.65) (190.65) (177.33)
intangible assets
Proceeds from sale of property, plant, and equipment 2.7 5.57 4.10 2.36
Proceeds from sale of gaming business - - - 33.91
Acquisition of subsidiaries (net of cash acquired) - - - (1.43)
Investment in fixed and other deposits with banks (9632.2) (2,153.44) (1,442.72) (138.19)
Investment in bank deposits (having original maturity
- - - (80.48)
of more than 3 months but less than 12 months)
Maturity of bank deposits 4320.6 1,041.94 112.75 258.49
Proceeds from repayment of inter corporate loans 90.8 0.54 252.22 -
Inter corporate loans given (165.3) (160.75) - (274.21)
Investments in joint ventures and associates - (8.66) (145.69) (59.33)
Proceeds from sale of non-current investments 1.3 103.57 0.67 750.37
Payment for purchase of non-current investments (26.1) - - -
Proceeds from sale of current investments 8569.6 9,945.57 7,335.18 4829.41
Payment for purchase of current investments (8420.4) (6,746.79) (7,960.31) (3,296.34)
Interest received 277.5 95.01 38.14 68.54
Net cash inflow / (outflow) from investing activities (B) (5488.6) 1,929.91 (1,996.31) 1,915.77

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 ₹ in crore

Year ended Year ended Year ended Year ended

Particulars March 31, 2022 March 31,2021 March 31,2020 March 31,2019
Cash flow from/(used in) financing activities
Proceeds from issue of shares (including security
8306.7 10.72 5,054.05 2.189.29
premium)
Share issue expenses (140.1) - (14.04) (2.45)
Share application money received during the year
- 0.20 - -
(pending allotment)
Acquisition of non-controlling interests - (6.27) (8.00) (36.87)
Repayment of term loan - (72.91) (60.61) (3.10)
Repayment of other borrowings - (0.56) - (7.24)
Net change in working capital demand loan (43.5) (84.66) 128.18
Interest paid (38) (33.89) (47.05) (14.17)
Proceeds from loan - - 136.35 -
Principal elements of lease payments (31.6) (34.61) (29.06) -
Net cash inflow / (outflow) from financing activities (C ) 8053.5 (221.98) 5,159.82 2,125.46
Net increase/(decrease) in cash and cash equivalents
1328.6 (374.63) 786.96 (454.40)
(A+B+C)
Cash and cash equivalent at the beginning of the year 45.4 416.11 (370.13) 89.72
Effect of exchange differences on restatement of foreign
4.9 3.95 (0.72) (5.45)
currency cash and cash equivalents
Cash and cash equivalent at the end of the year 1378.9 45.43 416.11 (370.13)

Cash Flow Statement Analysis

A. For the year 2019 – 2020
- Paytm has experienced a positive balance in the current year which is 287 Cr. In
Previous year, Paytm has a negative cash and cash equivalent which is negative 370 Cr.
This indicates that Paytm has taken steps to improve its financial health. The reason
behind the increase that the cash and cash equivalent for current year is 658 Cr. It is
huge increase of 177% on YOY basis.
- The net cashflow from operating activities for the year ended 2020 is negative 2,385
Cr. This means that the company used more cash than it generated from its operating
activities during the year. In Previous year company utilized 4495 Cr. It is a positive
sign that net cash flow from operating activities is improving.
The generated cash flow has been utilized in following manner:

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 - The cash flow from investing activities is negative 1,987 Cr in 2020 and negative 1,915
Cr in 2019. It shows that the company is investing heavily new projects.
- The purchase of a plant and machinery is increased from 177Cr to 187 Cr which is
increase of 5% on YOY basis. Also, the company has heavily invested in bank deposits
than previous year. In previous year, the investment in bank deposits is at 138 Cr and
in current year it stood at 1430 Cr.
- In 2020, the company paid 7,960 Cr to purchase current investments. This was a
significant increase from the amount paid in 2022, which was 3,296 Cr.
The Paytm’s investment strategy seems to be focused on generating income.
- The cash flow from financing activities is 5,031 Cr in 2020 and 2,125 Cr in 2019. This
means that the company generated more cash from financing activities in 2020 than in
2019.
- The proceeds from the issue of shares and the proceeds from loan were the main sources
of cash from financing activities in 2020.
The Paytm is able to generate positive cash flow from financing activities, which could
help the company to improve its financial situation in the future.

B. For the year 2021 – 2022

- Paytm's cash flow increased from Rs 455 million to Rs 13,789 Million, showing an
improvement. It is an enormous increase of about 2930 % on YOY basis. The increase
is due to an increase in cash & cash equivalents to Rs 13,286 Million during the current
financial year.
- Paytm's cash flow from operational activities is negative Rs 12363 million, down from
negative Rs 20825 M. It indicates on improvement in the company's ability to generate
cash from its operations.
The generated cash flow has been utilized in following manner:
- Compared to the previous year, the company utilized Rs 5071 million on purchasing
plant & equipment, property and. intangible which is an increase of 163 %
approximately.
- Additionally, the company has significantly increased its fixed and other bank deposits
amounting to Rs 96322 Million, as compared to FY 2020-2021
- There is a 24% rise in the payment for purchase of current investment.

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 - The company is clearly making its shift from profitability to long term growth. It can
be concluded that the company has a sound investment plan because they are steadily
expanding their investments.
- In terms of financing activities, the company received Rs 83,067 Million in proceeds
from the issue of shares (including security premium), compared to Rs 107 Million in
FY 2020-2021.
- In addition, the payment of for the net change in working capital demand loans has been
lowered from 847 to 435 million Rs.
All the above numbers show that the company is improving as compared to
the previous year.

Balance Sheet
₹ in crore
Particulars As on March 31,
2022
As on March 31,
2021
As on March 31,
2020

ASSETS
Non-current assets
Property, plant and equipment 561.6 299.20 261.63
Right-of-use-assets 294.5 128.26 267.37
Capital work-in-progress 10.2 20.83 13.08
Goodwill 44.3 46.70 46.70
Other intangible assets 13.5 17.09 17.79
Intangible assets under development 1.8 2.79 1.59
Financial assets
Investment in joint ventures - - 76.22
Investment in associates 223.3 231.67 246.83
Other investments 1,006.2 34.13 227.60
Loans 136.2 125.76 155.54
Other financial assets 4,213.1 261.30 1,971.99
Current tax assets 431.7 301.60 493.71
Deferred tax assets 7 3.51 3.18
Other non-current assets 303.2 278.63 84.23
Total Non-Current Assets 7,246.6 1,751.47 3,867.46
Current assets
Financial assets
Other investments - 147.18 3,189.45

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Trade receivables 746.4 339.26 300.95
Cash and cash equivalents 1,379.0 546.81 423.16
Bank balances other than cash and cash
3,823.0 2,329.62 116.98
equivalents
Loans 51.4 256.40 70.24
Other financial assets 3,229.5 2,375.31 1,020.69
Other current assets 1,515.7 1,405.29 1,314.18
Total Current Assets 10,745 7,399.87 6,435.65
TOTAL ASSETS 17,991.6 9,151.34 10,303.11
EQUITY AND LIABILITIES
EQUITY
Share capital 64.9 60.48 60.43
Other equity 14,086.7 6.474.32 8,044.83
Equity attributable to owners of the parent 14,151.6 6,534.80 8,105.26
Non-controlling interests (22.1) (18.59) (14.03)
Total Equity 14,129.5 6,516.21 8,091.23
LIABILITIES
Non-current liabilities
Financial liabilities
Lease liabilities 182.2 42.65 182.24
Deferred tax liabilities 0.2 0.62 1.11
Contract Liabilities 316.5 411.91 342.25
Provisions 30.7 24.69 20.33
Total Non-Current Liabilities 529.6 479.87 545.93
Current liabilities
Financial liabilities
Borrowings 0.1 544.90 208.14
Lease liabilities 39.2 24.40 37.20
Trade payables
(a) Total Outstanding dues of micro
22.9 5.56 11.39
and small enterprises
(b) Total Outstanding dues other than
728.5 599.66 600.20
(a) above
Other financial liabilities 1,800.5 515.28 233.83
Contract Liabilities 207.6 158.13 318.06
Other current liabilities 451.4 264.35 201.35
Provisions 82.3 42.98 55.78
Total Current Liabilities 3,332.5 2,155.26 1,665.95
Total Liabilities 3,862.1 2,635.13 2,211.88
TOTAL EQUITY AND LIABILITIES 17,991.6 9,151.34 10,303.11

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 Profit & Loss Account
₹ in crore
As on March As on March As on March
Particulars 31, 2022 31, 2021 31, 2020

Income
Revenue from operations 4,974.2 2,802.41 3,280.84
Other income 290.1 384.39 259.93
Total income 5,264.3 3,186.80 3,540.77

Expenses
Payment processing charges 2,753.8 1,916.78 2,265.91
Marketing and promotional expenses 855.4 532.52 1,397.05
Employee benefits expense 2,431.9 1,184.90 1,119.30
Software, cloud and data centre expenses 499.9 349.80 360.28
Depreciation and amortization expense 247.3 178.45 174.52
Finance costs 39.4 34.83 48.52
Other expenses 773.4 585.67 772.65
Total expenses 7,601.1 4,782.95 6,138.23

Loss before share of profit / (loss) of associates / joint

(2,336.8) (1,596.15) (2,597.46)
ventures, exceptional items and tax

Share of profit/ (loss) of associates / joint ventures (45.9) (74.01) (56.00)

Loss before exceptional items and tax (2,382.7) (1,670.16) (2,653.46)

Exceptional items (2.4) (28.15) (304.66)

Loss before tax (2,385.1) (1,698.31) (2,958.12)
Income Tax expense
Current tax 15.1 3.44 1.63
Deferred tax expense/(credit) (3.8) (0.74) (17.39)
Total Tax expense 11.3 2.70 (15.76)
Loss for the year (2,396.4) (1,701.01) (2,942.36)
Other comprehensive income

Items that will not be reclassified to profit or loss in

subsequent years
Re-measurement gains/ (losses) on defined benefit plans (2.1) (1.64) (0.44)
Changes in fair value of equity instruments at FVTOCI 937.6 (5.31) 0.20
Items that may be reclassified to profit or loss in subsequent
years
Exchange differences on translation of foreign operations 19.4 3.95 (0.72)
Total Other Comprehensive Income/(Loss) for the year 954.9 (3.00) (0.96)

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Total Comprehensive Income/ (Loss) for the year (1,441.5) (1,704.01) (2,943.32)

Loss for the year

Attributable to:
Owners of the parent (2,392.9) (1,696.07) (2,842.17)
Non-controlling interests (3.5) (4.94) (100.19)
2,396.4 (1,701.01) (2,942.36)
Other comprehensive income for the year
Attributable to:
Owners of the parent 954.9 (3.05) (0.95)
Non-controlling interests - 0.05 (0.01)
954.9 (3.00) (0.96)
Total comprehensive income for the year
Attributable to:
Owners of the parent (1,438.0) (1,699.12) (2,843.12)
Non-controlling interests (3.5) (4.89) (100.20)
(1,441.5) (1,704.01) (2,943.32)
Earnings per share (J per share of J 1 each)
Basic
Diluted

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 Ratio Analysis
A. Liquidity Ratio
Particulars Mar
March 21 March 20
Formula ch 22

Current Assets
1. Current Ratio 3.22 3.12 3.86
Current Liabilities
Quick Assets − Stock − Prepaid Expenses
2. Quick Ratio 1.56 1.33 0.32
Current Liabilities
Cash & Bank Balance + Marketable Securities
3. Cash Ratio 1.56 1.33 0.32
Current Liabilities
4. Operating Operating Cash flow
-0.64 -0.70 2.2
Cashflow Ratio Current Liabilities

B. Leverage Financial Ratio

Particulars
March 22 March 21 March 20
Formula
Total Liabilities
5. Debt Ratio 0.21 0.28 0.21
Total Assets
6. Debt to Equity Total Debt
0.27 0.40 0.27
Ratio Shareholders Equity
7. Interest Coverage EBIT
62.76 50.11 62.87
Ratio Interest
8. Debt Service EBIT
-0.61 -0.64 -1.33
Coverage Ratio Total Debt Service

C. Efficiency Ratio
Particulars
March 22 March 21 March 20
Formula
9. Asset Turnover Net Sales
0.27 0.30 0.31
Ratio Average Total Assets

10. Inventory COGS

NIL NIL NIL
Turnover Ratio Average Inventory

11. Receivable Net Credit Sales

Turnover Ratio Average Account Receivable

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 D. Profitability Ratio
Particulars
March 22 March 21 March 20
Formula
12. Gross Margin Gross Profit
0.23 0.13 -0.14
Ratio Net Sales
13. Operating Margin Operating Income
-0.47 -0.60 -0.90
Ratio Net Sales
14. Net Profit Margin NOPAT
-0.48 -0.60 -0.89
Ratio Net Sales

E. Market Value Ratio

Particulars
March 22 March 21 March 20
Formula
15. Book Value Per (Shareholders Equity − Preferred Equity)
227.9 1088.4 1394.4
Share Ratio No. of Outstanding Shares

16. Earning Per Share NOPAT − Preference Dividend

-38.18 -282.5 -502.9
Ratio No. of Outstanding Shares
17. Dividend Payout Dividend
0 0 0
Ratio EPS
18. Dividend yield Dividend per share
0 0 0
ratio Market Price Per Share
19. Price-earnings Market Price Per Share
0 0 0
ratio Earning Per Share

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Interpretation
1. Current Ratio
Paytm's current ratio has declined slightly over the past three years, from 3.86 in 2020 to 3.22 in
2022. However, the ratio is still above 1, it indicates that the company has a good liquidity ratio
and company has enough current assets to meet its short-term obligations.

2. Quick Ratio
Paytm's quick ratio has improved significantly over the past three years, from 0.32 in 2020 to 1.56
in 2022. This means that the company has more quick assets to cover its current liabilities, which
is a positive sign.

3. Cash Ratio
Paytm's cash ratio increased from 0.32 in 2020 to 1.56 in 2022, a significant rise over the previous
three years. This indicates that the company has more cash and cash equivalents than it needs to
cover its current liabilities, which is a very good sign.

4. Operating Cashflow ratio

Paytm's operating cashflow ratio has declined significantly over the past three years, from 2.2 in
2020 to -0.64 in 2022. This means that the company is now generating less cash from operations
than it is using to cover its operating expenses. This is a negative sign, as it indicates that the
company is burning cash.

5. Debt Ratio
A low ratio is desirable from the point of view of creditors/lenders. Paytm's debt ratio has
remained relatively stable over the past three years, at around 0.21-0.28. This means that the
company has a relatively healthy debt level.

6. Debt to Equity Ratio

This ratio speaks about the relationship between borrowed funds and owner’s capital. In 2022,
Debt to Equity Ratio was 0.27, which means that the company has 0.27 times more debt than
equity. This is a healthy ratio, as it indicates that the company is not overly reliant on debt.

7. Interest Coverage Ratio

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 This ratio speaks about the problem in servicing the debt. Over the last three years, Paytm's
interest coverage ratio has fluctuated but stayed high. It was 62.76 in 2022, which indicates that
the business earned enough money to cover its interest payments 62.76 times over.

8. Debt Service Coverage Ratio

This ratio shows higher the debt coverage ratio is good for company or better for company future.
Paytm's debt service coverage ratio (DSCR) has been negative for the past three years, meaning
that the company has not been generating enough cash from operations to cover its debt service
obligations.

9. Asset Turnover Ratio

Paytm's asset turnover ratio has declined over the past three years, from 0.31 in 2020 to 0.27 in
2022. This means that the company is generating less revenue from its assets than it did in the
past.

10. Inventory Turnover Ratio

Since Paytm does not have inventory, the inventory turnover ratio cannot be calculated. The
inventory turnover ratio is a measure of how quickly a company sells its inventory, and Paytm
does not have any inventory to sell.

11. Gross Margin Ratio

Paytm's gross margin ratio has significantly risen over the last three years, rising from -0.14 in
2020 to 0.23 in 2022. This signifies that the business is now making more money from its sales
than it was previously.

12. Operating Margin Ratio

Paytm's operating margin ratio has improved slightly over the past three years, from -0.90 in 2020
to -0.47 in 2022. However, the ratio is still negative, which means that the company is still losing
money on its operations.

13. Net Profit Margin Ratio

Paytm's net profit margin ratio has slightly risen over the last three years, rising from -0.89 in
2020 to -0.48 in 2022. However, the ratio remains negative, indicating that the business continues
to lose money on its entire operations.

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14. Book Value Per Share Ratio
The book value per share ratio calculates the per-share value of a company based on the equity
available to shareholders. Paytm's book value per share ratio has decreased significantly over the
past three years, from 1394.4 in 2020 to 227.9 in 2022.

15. Earning Per Share Ratio

Paytm's earnings per share (EPS) ratio has improved significantly over the past three years, from -
502.9 in 2020 to -38.18 in 2022, but it is still negative. This means that the company is still losing
money per share.

16. Dividend Payout Ratio

Paytm is not paying any dividends, there is no dividend payout ratio (DPR) to calculate.

17. Dividend yield ratio

Paytm is not paying any dividends, there is no dividend yield ratio (DYR) to calculate.

18. Price-earnings ratio

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