AGS Transact Technologies Limited

Annexure VI: Notes to the Revised Restated Consolidated Financial Information

Note 2
Goodwill

Reconciliation of carrying amount
Goodwill on consolidation amounting to Rs. 25.86 milion (31 March 2021: Rs. 25.20 million, 31 March 2020: Rs, 24.49 million, 31 March 2019: Rs. 23.70 million) pertains to acquisition of Novus
Technologies Pte. Ltd (NTPL’)

The goodwill on consolidation is not amortised and accordingly is tested for impairment annually. No impairment charges were identified for the period ended 31 August 2021 and for the years ended 31 March.
2021, 31 March 2020 and 31 March 2019.

 

 

 

 

(Rs. in milion)
parti Comeldaton
(Carrying amount as at | April 2018 wT
Exchange differences on translation of foreign operations 073
carrying amount as at 31 March 2019, ——aa]
Exchange differences on translation of foreign operations 079
carrying amount as at 31 March 2020 a]
Exchange ditferences on translation of foreign operations on
Carrying amount as at 31 March 2021

Exchange diferences on translation of foreign operations 0.66
[Carrying amount as at 31 August 2021

 

 

 

The recoverable amount of NTPL. is based on value in use. ‘The value in use is estimated using discounted cash flows over a year of 5 years. Cash flows beyond 5 years is estimated by capitalising the future
‘maintainable cash flows by an appropriate capitalisation rate and then discounted using pre-tax discount rate.

(Operating margins and growth rates forthe five year cash flow projections have been estimated based on past experience and after considering the financial budgets/forecasts provided by the management. Other
key assumptions used in the estimation of the recoverable amount are set out below. The values assigned to the key assumptions represent management's assessment of future trends in the relevant industry and
have been based on historical data from both external and internal sources.

 

 

Particulars ‘SH August 2021 31 March 2021, ‘31 March 2020 ‘31 March 2019
Discount rate 18.00% 18.00% 18.00% 13.4%
Long-term growth rate beyond 5 years 3% 3% 3% 1%

The management believes that any reasonably possible change in the key assumptions would not cause the cartying amount to exceed the recoverable amount of NTPL.

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