AGS Transact Technologies Limited

Annexure V - Basis of preparation and Significant Accounting Policies

Notes to the Revised Restated Consolidated Financial Information

(ii) Rendering of services

Revenue from contracts with customers, net of service level adjustment / credits is recognised when the Group
satisfies performance obligation by transferring the services to the customers and recognises unclaimed amounts
when no pending performance obligation exists.

The revenue from ATM and management services is disclosed net of service level adjustment / credits, one-time
upfront fees and premium on purchase of property, plant and equipment. One-time upfront fees and premium on
purchase of property, plant and equipment is amortised over the period of the respective contract.

Revenue from maintenance contracts is recognised pro-rata over the period of the contract as and when services are
rendered. Revenue from upgrades and digital payment services is recognised as and when services are rendered.

Revenue from one time set up fees is recognised over the expected contractual term with the customers. Servicing
fees for POS machine is recognised on monthly basis based on certainty of collection and transaction fees on the
basis of transactions settled using POS machines.

The Group collects goods and service tax on behalf of the government and therefore, these are not economic benefits
flowing to the Group. Hence, they are excluded from revenue.

(iii) Service concession arrangements

Revenue related to construction or upgrade services provided under a service concession arrangement is recognised
based on the stage of completion of the work performed. Operation or service revenue is recognised in the period in
which the services are provided by the Group.

(iv) Multiple deliverable arrangements

At contract inception, the Group assesses the goods or services explicitly or implicitly promised in a contract and
identifies as a performance obligation each promise to transfer a distinct good or service. A good or service that is
promised in a contract is ‘distinct’ if both of the following criteria are met:

a) The customer can benefit from the good or service either on its own or together with other resources that are
‘readily available’ to the customer.

b) The entity's promise to transfer the good or service to the customer is separately identifiable from other
promises in the contract.

The Group, at contract inception, allocates the transaction price to each performance obligation on the basis of
relative stand-alone selling price.

Recognition of insurance claim, dividend income, interest income or expense

The Group recognises the claims in the books, when the amount thereof can be measured reliably and ultimate
collection is reasonably certain. As and when claims are finally received from the Insurance Company, the
difference, if any, between the claim receivable from insurance company and the claims received is adjusted to the

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