reflects the tax consequences that would follow from the manner in which we expect, at the reporting date, to
recover or settle the carrying amount of its assets and liabilities.

 

Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities
and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on
different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets.
and liabilities will be realized simultaneously.

Minimum Alternate Tax (“MAT”) paid in accordance with the tax laws, which gives future economic benefits
in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence
that we will pay normal income tax. Accordingly, MAT is recognized as an asset in the Restated Consolidated
Statement of Assets and Liabilities as a deferred tax asset when it is highly probable that future economic
benefit associated with it will flow to us.

Borrowing costs

Borrowing costs are interest and other costs (including exchange differences relating to foreign currency
borrowings to the extent that they are regarded as an adjustment to interest costs) incurred in connection with
the borrowing of funds. Borrowing costs directly attributable to acquisition or construction of an asset which
necessarily takes a substantial period of time to get ready for its intended use are capitalized as part of the cost
of that asset. Other borrowing costs are recognized as an expense in the period in which they are incurred.

Finance cost

Finance costs includes interest and other borrowing costs incurred in connection with the borrowing of funds.
Interest cost on financial liabilities are measured at amortized cost such as borrowings from banks and others or
bonds or similar instruments calculated as per the effective interest method. Interest and other dues on statutory
liabilities that are compensatory in nature are measured at the interest rates as applicable under the statute. Other
borrowing costs include processing fees, commission or charges paid for letter of credit and bank guarantees and
exchange differences relating to foreign currency borrowings to the extent that they are regarded as an
adjustment to interest costs.

Operating segments

Basis for segmentation

An operating segment is a component of the entity that engages in business activities from which it may earn
and incur expenses, including revenues and expenses that relate to transactions with any of our other
components and for which discrete financial information is available. Such decision is taken by chief operating
decision maker (“CODM”). Operating segments are reported in a manner consistent with the internal reporting
provided to the CODM.

Business segment

Our operating businesses are organized and managed separately according to the nature of products and services
provided, with each segment representing a strategic business unit that offers different products or services and
serves different markets. Accordingly, we have identified ‘Payment Solutions’, ‘Banking Automation Solutions’
and ‘Other Automation Solutions’ segments as the primary reportable segments.

Geographical segment

Our business is primarily within India. Hence, no separate geographical disclosure is considered necessary.

Segment information

e Inter-segment transfers: We generally account for inter-segment sales and transfers at cost plus
appropriate margins.

e Allocation of common costs: Common allocable costs are allocated to each segment according to the
relative contribution of each segment to the total common costs.

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