Exhibit 99.3

 

UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION

 

On September 2, 2024, Yatra Online, Inc. (the “Company”), through its subsidiary, Yatra Online Limited (“Yatra India”), acquired of Globe All India Services Limited (“GAISL”), engaged in the business of providing reservation and booking services relating to tours and travels (corporate, MICE and leisure and tour planning) and car rental.

 

The following unaudited pro forma condensed combined financial information and related notes present the historical condensed combined financial information of the Company and its subsidiaries (hereinafter referred to as “we,” “our,” “us” and similar terms unless the context indicates otherwise) and GAISL after giving effect to the GAISL Acquisition that was completed on September 11, 2024 (the “Acquisition Date”). The unaudited pro forma condensed combined financial information gives effect to the GAISL Acquisition based on the assumptions, reclassifications and adjustments described in the accompanying notes to the unaudited pro forma condensed combined financial information.

 

The unaudited pro forma condensed combined statement of financial position as of March 31, 2024 is presented as if the GAISL Acquisition had occurred on April 1, 2023. The unaudited pro forma condensed combined statements of profit or loss and other comprehensive income for the year ended March 31, 2024 is presented as if the acquisition had occurred on April 1, 2023. The historical financial information is adjusted in the unaudited pro forma condensed combined financial information to give effect to pro forma events that are (1) directly attributable to the proposed acquisition, (2) factually supportable, and (3) with respect to the condensed combined statements of profit or loss and other comprehensive income, expected to have a continuing impact on the combined results.

 

The historical financial statements of GAISL have been adjusted to reflect certain reclassifications in order to align financial statement presentation.

 

The determination and preliminary allocation of the purchase consideration used in the unaudited pro forma condensed combined financial information are based upon preliminary estimates, which are subject to change during the measurement period as we finalize the valuations of the net tangible and intangible assets acquired.

 

The unaudited pro forma adjustments are not necessarily indicative of or intended to represent the results that would have been achieved had the transaction been consummated as of the dates indicated or that may be achieved in the future. The actual results reported by the combined company in periods following the acquisition may differ significantly from those reflected in this unaudited pro forma condensed combined financial information for a number of reasons, including cost saving synergies from operating efficiencies and the effect of the incremental costs incurred to integrate the two companies.

 

The unaudited pro forma condensed combined financial information should be read in conjunction with our historical consolidated financial statements and accompanying notes included in our Annual Report on Form 20-F for the year ended March 31, 2024, and the historical financial statements of GAISL for the year ended March 31, 2024 contained in this Form 6-K.

 

 

 

 

Yatra Online, Inc.

PRO FORMA UNAUDITED CONDENSED COMBINED STATEMENT OF FINANCIAL POSITION

AS OF MARCH 31, 2024

 (AMOUNTS ARE IN THOUSANDS UNLESS OTHERWISE STATED)

 

   The Company   The Company   GAISL   GAISL   Transaction Accounting Adjustments   Transaction Accounting Adjustments   Pro Forma Combined   Pro Forma Combined 
   INR   USD   INR   USD   INR   USD   INR   USD 
Assets                                        
Non Current Assets                                        
Property, plant and equipment   73,835    881    25,991    312    21,045    251(b)   1,20,871    1,444 
Right-of-use assets   1,60,037    1,909    -    -         -    1,60,037    1,909 
Intangible assets and goodwill   9,13,434    10,896    2,879    35    13,67,200    16,309(b)   22,83,513    27,240 
Prepayments and other assets   755    9    2,945    35         -    3,700    44 
Other financial assets   24,039    287    3,374    40         -    27,413    327 
Term deposits   1,37,169    1,636    -    -         -    1,37,169    1,636 
Other non-financial assets   2,07,555    2,476    -    -         -    2,07,555    2,476 
Deferred tax assets   10,932    130    2,492    30         -    13,424    160 
Total non-current assets   15,27,756    18,224    37,681    452    13,88,245    16,560    29,53,682    35,237 
                                         
Current assets                                        
Inventories   53    1    -    -         -    53    1 
Trade and other receivables   46,37,243    55,317    9,15,783    10,989         -    55,53,026    66,306 
Prepayments and other assets   14,87,861    17,749    2,97,527    3,570         -    17,85,388    21,319 
Income tax recoverable   3,39,317    4,048    19,724    237         -    3,59,041    4,285 
Other current financial assets   1,34,930    1,610    3,417    40         -    1,38,347    1,650 
Term deposits   26,20,655    31,262    221    3         -    26,20,876    31,265 
Cash and cash equivalents   17,41,950    20,780    6,846    82    (12,80,000)   (15,269)(a)   4,68,796    5,593 
Total current assets   1,09,62,009    1,30,765    12,43,518    14,921    (12,80,000)   (15,269)   1,09,25,527    1,30,417 
Total assets   1,24,89,765    1,48,989    12,81,199    15,373    1,08,245    1,291    1,38,79,209    1,65,653 
                                         
Equity and liabilities                                        
Equity                                        
Share capital   857    10    47,877    574    (47,877)   (571)(d)   857    13 
Share premium   2,05,11,478    2,44,679    1,46,885    1,762    (1,46,885)   (1,752)(d)   2,05,11,478    2,44,689 
Treasury shares   (2,22,152)   (2,650)   -    -         -    (2,22,152)   (2,650)
Other capital reserve   3,78,695    4,517    -    -         -    3,78,695    4,517 
Accumulated deficit   (2,02,66,628)   (2,41,759)   (6,580)   (79)   1,30,178    1,553(b)   (2,01,43,030)   (2,40,285)
Non-controlling interest reserve   50,32,282    60,030    -    -         -    50,32,282    60,030 
Foreign currency translation reserve   (46,059)   (549)   -    -         -    (46,059)   (549)
Total equity attributable to equity holders of the Parent Company   53,88,473    64,279    1,88,182    2,257    (64,584)   (770)   55,12,071    65,765 
Total non-controlling interest   23,71,799    28,293    -    -              23,71,799    28,293 
Total equity   77,60,272    92,572    1,88,182    2,257    (64,584)   (770)   78,83,870    94,058 
                                         
Non-current liabilities                                        
Borrowings   1,14,677    1,368    2,62,857    3,154         -    3,77,534    4,522 
Deferred tax liabilities   4,669    56    -    -    1,72,829    2,062(c)   1,77,498    2,117 
Employee benefits   55,850    666    14,621    175         -    70,471    841 
Lease liabilities   1,64,418    1,961    -    -         -    1,64,418    1,961 
Total non-current liabilities   3,39,614    4,051    2,77,478    3,329    1,72,829    2,062    7,89,921    9,442 
                                         
Current liabilities                                        
Borrowings   5,23,515    6,245    2,81,926    3,383         -    8,05,441    9,628 
Trade and other payables   26,08,087    31,112    3,95,360    4,744         -    30,03,447    35,856 
Employee benefits   41,307    493    264    3         -    41,571    496 
Contract Liabilities   -    -    85,495    1,026         -    85,495    1,026 
Deferred revenue   3,360    40    -    -         -    3,360    40 
Income taxes payable   251    3    -    -         -    251    3 
Lease liabilities   51,324    612    -    -         -    51,324    612 
Other financial liabilities   4,18,969    4,998    21,926    263         -    4,40,895    5,261 
Other current liabilities   7,43,066    8,864    30,568    368         -    7,73,634    9,232 
Total current liabilities   43,89,879    52,366    8,15,539    9,787    -    -    52,05,418    62,153 
Total liabilities   47,29,493    56,418    10,93,017    13,116    1,72,829    2,062    59,95,339    71,595 
Total equity and liabilities   1,24,89,765    1,48,989    12,81,199    15,373    1,08,244    1,291    1,38,79,209    1,65,653 

 

See notes to proforma unaudited condensed combined financial information

 

 

 

 

Yatra Online, Inc.

PRO FORMA UNAUDITED CONDENSED COMBINED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED MARCH 31, 2024

(AMOUNTS ARE IN THOUSANDS UNLESS OTHERWISE STATED)

 

   The Company   The Company   GAISL   GAISL   Transaction Accounting Adjustments   Transaction Accounting Adjustments   Pro Forma Combined   Pro Forma Combined 
   INR   USD   INR   USD   INR   USD   INR   USD 
                                 
Revenue                                        
Rendering of services   35,83,798    42,751    25,22,464    30,691    0    -    61,06,262    72,841 
Other revenue   6,06,099    7,230    -    -         -    6,06,099    7,230 
Total revenue   41,89,897    49,981    25,22,464    30,691    -    -    67,12,361    80,071 
                                         
Other income   1,02,362    1,221    5,143    63         -    1,07,505    1,282 
                                         
Service cost   8,66,039    10,331    20,32,584    24,730         -    28,98,623    34,577 
Personnel expenses   13,48,215    16,083    1,95,511    2,379         -    15,43,726    18,415 
Marketing and sales promotion expenses   4,59,935    5,487    8,330    101         -    4,68,265    5,586 
Other operating expenses   15,79,352    18,840    1,08,674    1,322         -    16,88,026    20,136 
Depreciation and amortization   1,97,527    2,356    3,559    43    43,263    516(b)   2,44,349    2,915 
Results from operations   (1,58,809)   (1,894)   1,78,948    2,179    (43,263)   (516)   (23,124)   (276)
                                         
Finance income   1,70,714    2,036    3,333    41         -    1,74,047    2,076 
Finance cost   (2,86,998)   (3,424)   (69,300)   (843)        -    (3,56,298)   (4,250)
Listing and related expenses   (54,238)   (647)   -    -         -    (54,238)   (647)
Loss before taxes   (3,29,331)   (3,929)   1,12,980    1,377    (43,263)   (516)   (2,59,613)   (3,097)
Tax expense   (37,174)   (443)   (29,661)   (361)   (11248)   (134(c))  (78,083)   (931)
Loss for the period   (3,66,506)   (4,373)   83,319    1,015    (54,512)   (651)   (3,37,698)   (4,029)
                                         
Other comprehensive income/(loss)                                        
Items not to be reclassified to profit or loss in subsequent periods (net of taxes)                                 -    - 
Remeasurement loss on defined benefit plan, net of tax   (6,006)   (72)   (1,446)   (18)        -    (7,452)   (89)
Items that are or may be reclassified subsequently to profit or loss (net of taxes)                                 -    - 
Foreign currency translation differences (loss)/gain   (15,027    (179)   -    -         -    (15,027)   (179)
Other comprehensive loss for the period, net of tax   (21,033)   (251)   (1,446)   (18)   -    -    (22,479)   (268)
Total comprehensive loss for the period, net of tax   (3,87,539)   (4,624)   81,873    997    (54,512)    (651)    (3,60,176)   (4,297)
                                         
Loss attributable to:                                        
Owners of the Parent Company   (3,50,943)   (4,186)   83,319    1,015    (54,512)   (650)   (3,22,137)   (3,843)
Non-controlling interest   (15,562)   (186)    -    -         -    (15,562)   (186)
Loss for the period   (3,66,505)    (4,372)   83,319    1,015    (54,512)   (650)   (3,37,699)   (4,028)
                                         
Total comprehensive loss attributable to:                                        
Owners of the Parent Company   (3,69,860)   (4,412)   81,873    997    (54,512)   (650)   (3,42,499)   (4,086)
Non-controlling interest   (17,678)   (211)   -    -         -         - 
Total comprehensive loss for the period   (3,87,538)   (4,623)   81,873    997    (54,512)   (650)   (3,42,499)   (4,086)
                                         
Loss per share                                        
Basic   (5.60)   (0.07)                       (5.60)   (0.07)
Diluted   (5.60)    (0.07)                       (5.60)   (0.07)

 

 

 

 

Yatra Online, Inc.

NOTES TO UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION  

(AMOUNTS ARE IN THOUSANDS UNLESS OTHERWISE STATED)

 

Basis of Pro Forma Presentation

 

The unaudited pro forma condensed combined statement of financial position as of March 31, 2024 combines the historical condensed consolidated statement of financial position of Yatra Online, Inc. (“Yatra”, “Company”) with the historical condensed balance sheet of Globe All India Services Limited (“GAISL”) and has been prepared as if the GAISL acquisition had occurred on March 31, 2024. The unaudited pro forma condensed combined statements of profit or loss and other comprehensive income for the year ended March 31, 2024 combine Yatra’s historical condensed consolidated statements of income with GAISL’s historical statements of operations and have been prepared as if the acquisition had occurred on April 01, 2023. The historical financial information is adjusted in the unaudited pro forma condensed combined financial information to give effect to pro forma events that are (1) directly attributable to the proposed acquisition, (2) factually supportable, and (3) with respect to the condensed combined statements of profit or loss and other comprehensive income, expected to have a continuing impact on the combined results.

 

The unaudited pro forma condensed combined financial information has been prepared in accordance with Article 11 of Regulation S-X. The management has determined that the Company is the accounting acquirer, which will be accounted for under the acquisition method of accounting for business combinations in accordance with IFRS 3 Business Combinations. The allocation of the preliminary estimated purchase price with respect to the acquisition is based upon management’s estimates of and assumptions related to the fair values of assets to be acquired and liabilities to be assumed as of September 11, 2024, using currently available information. Due to the fact that the unaudited pro forma condensed combined financial statements have been prepared based on these preliminary estimates, the final purchase price allocation and the resulting effect on GAISL’s financial position and results of operations may differ materially from the pro forma amounts included herein.

 

The preliminary purchase price allocation presented below is based on management’s estimate of the fair value of tangible and intangible assets acquired and liabilities assumed using information that is currently available. The excess of the purchase price over the fair value of net assets acquired will be allocated to goodwill. The final allocation of the purchase price will be based on a comprehensive final evaluation of tangible and intangible assets acquired and liabilities assumed.

 

Significant judgment is required to estimate the fair value of tangible and intangible assets acquired, liabilities assumed, as well as the useful life and pattern of expected benefit for acquired intangible assets. The fair value estimates and useful life for acquired intangible assets are based on available historical information, future expectations, and assumptions deemed reasonable by management, but are inherently uncertain. The preliminary fair values of intangible assets are generally determined using an income method, which is based on forecasts of the expected future cash flows attributable to the respective assets. Preliminary fair values for certain intangibles were determined using a cost approach that measures the value of an asset by estimating the cost to acquire or develop comparable assets. Significant estimates and assumptions inherent in the valuations reflect consideration of other marketplace participants, the amount and timing of future cash flows (including expected growth rates, discount rate and profitability), royalty rates used in the relief of royalty method, and the discount rate applied to the cash flows. Unanticipated market or macroeconomic events and circumstances may occur, which could affect the accuracy or validity of the estimates and assumptions. The key assumptions of the cost approach include replacement cost, functional and economic obsolescence, and remaining useful life.

 

The estimated values of the assets acquired and liabilities assumed will remain preliminary for a period of time after the Closing until the Company determines the fair values of the assets acquired and liabilities assumed. The final determination of the purchase price allocation will be completed as soon as practicable after the completion of the acquisition and will be based on the fair values of the assets acquired and liabilities assumed as of the Closing Date. The final amounts allocated to assets acquired and liabilities assumed could differ significantly from the amounts presented in the unaudited pro forma condensed combined financial statements.

 

The pro forma adjustments described below were developed based on Yatra’s management’s assumptions and estimates, including assumptions relating to the consideration paid and the allocation thereof to the assets acquired and liabilities assumed from GAISL based on preliminary estimates of fair value. The final purchase consideration and the allocation of the purchase consideration will differ from that reflected in the unaudited pro forma condensed combined financial information after final valuation procedures are performed and amounts are finalized following the completion of the acquisition.

 

 

 

 

The unaudited pro forma condensed combined financial information is provided for illustrative purposes only and does not purport to represent what the actual consolidated statements of profit or loss and other comprehensive income or the consolidated statement of financial position of the combined company would have been had the acquisition occurred on the dates assumed, nor are they necessarily indicative of future consolidated statements of profit or loss and other comprehensive income or statement of financial position.

 

The unaudited pro forma condensed combined financial information does not reflect any integration activities or cost savings from operating efficiencies, synergies, asset dispositions or other restructurings that could result from the acquisition.

 

Preliminary Purchase Consideration and Related Allocation

 

Pursuant to the Share Purchase Agreement dated September 02, 2024, the purchase consideration of INR 1280,000 (Equivament to USD 15,359) was paid in cash to the existing GAISL holders.

 

The following table summarizes the preliminary allocation of the fair value of assets acquired and liabilities of GAISL as at the date of acquisition:

 

   INR   USD # 
Net working capital (including cash)   5,59,000    6,668 
Property, Plant and Equipment   46,000    549 
Intangible assets   6,43,700    7,679 
Borrowings   (5,24,000)   (6,251)
Deferred tax asset   4,600    55 
Deferred tax liabilities   (1,72,800)   (2,061)
Total identifiable net assets at fair value   5,56,500    6,639 
Goodwill   7,23,500    8,631 
Total purchase price   12,80,000    15,270 

 

#converted using exchange rate of March 31, 2024 (1USD = INR 83.83)

 

We believe the amount of goodwill resulting from the allocation of purchase consideration is primarily attributable to expected synergies from future growth. Goodwill is not expected to be deductible for tax purposes. In accordance with IFRS 3, goodwill will not be amortized but instead will be tested for impairment at least annually and more frequently if certain indicators of impairment are present. In the event that goodwill has become impaired, we will record an expense for the amount impaired during the reporting period in which the determination is made.    

   

Upon completion of the fair value assessment, it is anticipated that the final purchase price allocation will differ from the preliminary assessment outlined above. Any changes to the preliminary estimates of the fair value of the assets acquired and liabilities assumed will be recorded as adjustments to those assets and liabilities and residual amounts will be allocated to goodwill.

 

Pro Forma Adjustments

 

The pro forma adjustments included in the unaudited pro forma condensed combined financial information are as follows:

 

a. To record the adjustments related to cash consideration paid.
b. To record preliminary fair values of the tangible and intangible assets acquired in connection with the GAISL Acquisition and associated amortization expenses.
c. To record non-current net deferred tax liabilities adjustment related to the acquisition.
d. To eliminate GAISL.