Borrowings

12 Months Ended

Mar. 31, 2024

Debt Disclosure [Abstract]

Borrowings

14. Borrowings

A. Long-term borrowings consist of the following:

	As of  March 31, 2024			As of March 31, 2023
Loans from banks (note a)		112,169			307,228
Secured debentures (note b)		2,214,754			3,198,569
Convertible debenture (note c)		1,374,481			-
Less: current portion of long-term borrowings		(2,228,471	)		(2,852,528	)
		1,472,933			653,269

a.Loans from banks:

Particulars	Interest rate	Maturity date	Amount outstanding
Long-term borrowings from banks	8.75%	10-Aug-30		112,169
				112,169

The above loan is a vehicle loan and secured by way of hypothecation against vehicle for which loan is granted.

b. Secured debentures:

Particulars	Interest rate			Maturity date	Amount outstanding
N1 Series Debentures		19.50	%	31-May-24		578,137
N2 Series Debenture		19.50	%	31-Jul-24		327,412
N3 Series Debentures		19.25	%	31-May-24		409,643
N4 Series Debentures		20.00	%	31-Jan-24		899,562
						2,214,754

The debentures are secured by a subordinated lien on intellectual property, current assets and movable property and equipment of certain material foreign subsidiaries. The Company has not honored the repayment of debentures on the due date.

c. Convertible debenture

During the year ended March 31, 2024, the Company issued $1.10 million unsecured convertible debentures to different parties which has a maturity of December 15, 2025. The instruments carry an interest of 13% per annum.

Redemption/Conversion features of the instrument

On Maturity: If any amount of principal or interest under the notes remain outstanding on the maturity date, the Company shall repay the principal together with payment of accrued interest.

Optional Conversion: The unpaid principal amount of this Debenture (together with all accrued but unpaid interest thereon) shall be convertible, in whole or in part, at the option of the Holder at any time prior to the payment in full of the principal amount of this Debenture, into such number of shares of fully paid up Ordinary Shares as is determined by dividing the principal amount of the Debenture so converted (together with all accrued but unpaid interest thereon) by the Conversion Price i.e. $10 per share.

However the conversion price would undergo a change in case the volume weighted average price ("VWAP") of the Ordinary Shares is lesser than the conversion price.

Mandatory Conversion by Company: If at any time after the Original Issuance Date, of the closing price of the Common Stock of the company for any 20 Trading Days within a consecutive 30 Trading Day-period exceeding 130% of the then-applicable Conversion Price, then the Company shall thereafter have the right, at any time upon written notice to the Holder, to convert the unpaid principal amount of this Debenture (together with all accrued but unpaid interest thereon) into such number of shares of fully paid and non-assessable shares of Common Stock as is determined by dividing the principal amount of the Debenture (together with all accrued but unpaid interest thereon) by the Conversion Price (a “Company Conversion”).

Warrants Entitlement: Company shall issue the warrants to the debentureholder within 90 days of the closing of the securities purchase agreement. The warrants shall be equivalent to the 10% of the original principal balance of the notes.The exercise price of the Warrants shall be eight dollars and fifty cents ($8.50) per Warrant Share. The Warrants shall expire five (5) years after issuance.

A comparison of the assumptions used in calculating estimated fair value of warrants due as of March 31, 2024 is as follows:

Risk free rate	4.13% - 4.47%
Volatility	108.18% - 126.55%
Annual Interest rate		13	%
Conversion Price	$10

d. As of March 31, 2024, the aggregate maturities of long-term borrowings are as follows:

Period ending March 31, 2025	2,228,471
Period ending March 31, 2026	1,389,426
Period ending March 31, 2027	16,306
Period ending March 31 2027 onwards	67,201
	3,701,404

B. Short-term borrowings

	As of  March 31, 2024		As of March 31, 2023
Loans from banks (note a)		781,455		84,587
Loans from related parties		1,096,109		485,747
Loans from others (note b)		13,877,265		4,305,467
		15,754,829		4,875,801

a)Loans from banks and others

Particulars	Weighted average borrowing rate
Short-term borrowings from banks and others		14.00	%

Loan from banks includes a loan facility taken by Good Insurance Brokers Private Limited from The Hongkong and Shanghai Banking Corporation Limited for an amount of $0.5 million and same is secured by way of exclusive charge of hypothecation of entire current assets both present and future, exclusive charge over deposit under lien to the extent of 50% and Corporate Guarantee (CGT) from Roadzen (DE) alongwith relevant certified true copy of the Board Resolution and constitutional documents.

b)Loan from others

1.During the quarter ended June 30, 2023, Roadzen (DE) entered into a $7.5 million senior secured notes agreement with a syndicate of lenders which has a maturity date of June 28, 2024. The secured notes carry an interest of 15% per annum. The syndicate of lenders are entitled to receive a warrant to purchase an agreed number of Ordinary Shares in case the loan is not fully repaid by Roadzen (DE) within six months from the issue date.

2.As the accounting acquirer, Roadzen (DE) is deemed to have assumed promissory note amounting to $2.46 million at a discount of 10% which was obtained to finance transaction costs in connection with the Business Combination. The Promissory note is not convertible and interest of 20% per annum is due and payable upon earlier of the date on which the Company consummates its initial Business Combination or the date of the liquidation of the Company. The company has not honored repayment of the promissory note on the due date.

3.During the quarter ended December 31, 2023, Good Insurance Brokers Private Limited has taken a loan facility from Mufin Green Finance Limited for $0.94 million bearing interest repayable in the monthly installments upto November 2024 @ 17.5% and from Hindon Mercantile Limited $0.48 millions bearing interest @ 21% repayable in bullet payment of each tranche within 60 days from the date of disbursement.

4.During the quarter ended March 31, 2024, the company has issued $0.5 million notes at an interest rate of 17.5% per annum and mature on the sixth month anniversary of the the funding of the notes. The interest rate on the notes can be increased maximum upto 29% as per the applicable condition of repayment.

5.As the accounting acquirer, Roadzen (DE) is deemed to have assumed Convertible Promissory Note amounting to $1.03 million which was obtained to finance transaction costs in connection with a Business Combination. The Convertible Promissory Notes is a non-interest bearing instrument and payable upon the consummation of a Business Combination or may be convertible into warrants of the post-Business Combination entity at a price of $1.00 per warrant at the holder's discretion. The warrants would be identical to the private placement warrants described in note 19. The company has not honored repayment of the promissory note on the due date.
 

Fair Value of the Warrants:

Closing price	$	0.09
Open price	$	0.09
High	$	0.09
Low	$	0.09