Roadzen Inc. Commitments Disclosure

22 Commitments and contingencies

 

A. Leases - Accounted as per ASC 842 for the Period Ended March 31, 2025

 

Operating leases

 

The Company leases office space under non-cancellable operating lease agreements, which expire on various dates through April 2031. Some property leases contain extension options exercisable by the Company. The lease agreements do not contain any material residual value guarantees or material restrictive covenants. The components of lease cost for the period ended March 31, 2025 are summarized below:

 

i) The following tables presents the various components of lease costs:

 Components of Lease Cost

Particulars		For the Year ended March 31, 2025
Lease :
Operating lease cost			273,316
Short-term lease cost			122,091
Total lease cost			395,407

 

ii) The following table presents supplemental information relating to the cash flow and non cash flows arising from lease transactions. Cash payments related to short-term leases are not included in the measurement of operating liabilities, and, as such, are excluded from the amounts below.

Schedule of Supplemental Cash Flow Information Related to Leases and Non Cash Flows Arising from Lease Transactions 

Particulars		For the Year ended March 31, 2025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases			383,416

 

iii) Balance sheet information related to leases are as follows:

Schedule of Balance Sheet Information Related to Leases 

Particulars		For the Year ended March 31, 2025
Operating Leases:
Operating Lease ROU Asset, net			1,109,219
Short term liabilities			318,921
Long term liabilities			628,400
Total operating lease liabilities			947,321

 

iv) Weighted Average

 Summary of Weighted Average Remaining Lease Terms and Discount Rates

		For the Year ended March 31, 2025
Remaining Lease term (in years)			4.28
Discount rate			14.74	%

 

v) Maturities of lease liabilities were as follows:

 Schedule of Maturities of Lease Liabilities

Particulars		Lease Liabilities (USD)*
For Period Ended March 31, 2025
2025			437,534
2026			305,795
2027			147,450
2028			88,133
2029			91,952
Thereafter			137,942
Total Lease Payments			1,208,806
Less: Imputed Interest			(261,485	)
Total			947,321

 

*

The lease liabilities are translated into U.S. Dollars using the closing rate for the period ended March 31, 2025

 

C. Litigation and loss contingencies

 

From time to time, the Company may be subject to other legal proceedings, claims, investigations, and government inquiries (collectively, Legal Proceedings) in the ordinary course of business. It may receive claims from third parties asserting, among other things, infringement of their intellectual property rights, defamation, labor and employment rights, privacy, and contractual rights. There are no currently pending Legal Proceedings that the Company believes will have a material adverse impact on the business or consolidated financial statements.

 

 

Roadzen Inc.

Notes to the consolidated financial statements

(in US $, except share count)

 

D. Indemnifications

 

In the ordinary course of business, the Company enters into contractual arrangements under which the Company agrees to provide indemnification of varying scope and terms to customers, business partners, and other parties with respect to certain matters, including losses arising out of intellectual property infringement claims made by third parties, if the Company has violated applicable laws, if the Company is negligent or commits acts of willful misconduct, and other liabilities with respect to its products and services and its business. In these circumstances, payment is typically conditional on the other party making a claim pursuant to the procedures specified in the particular contract. To date, the Company has not incurred any material costs as a result of such indemnifications and has not accrued any liabilities related to such obligations in its consolidated financial statements.