AGS Transact Technologies Limited

Annexure V - Basis of preparation and Significant Accounting Policies

Notes to the Revised Restated Consolidated Financial Information

The Group’s business is primarily within India. Hence no separate geographical disclosure is considered necessary.

(iv) Segment information

- Inter-segment transfers: The Group generally accounts for inter-segment sales and transfers at cost plus
appropriate margins.

- 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.

- Unallocated items: Unallocated items include general corporate income and expense items which are not allocated
to any business segment.

- Segment accounting policies: The Group prepares its segment information in conformity with the accounting
policies adopted for preparing and presenting the Revised Restated Consolidated Financial Information of the Group
as a whole.

AC. Earnings per share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity
shareholders (after deducting preference dividends and attributable taxes) by the weighted average number of equity
shares outstanding during the year. Partly paid equity shares are treated as a fraction of an equity share to the extent
that they are entitled to participate in dividends relative to a fully paid equity share during the reporting period. The
weighted average number of equity shares outstanding during the period is adjusted for events such as bonus issue,
bonus element in a rights issue, share split, and reverse share split (consolidation of shares), if any, that have
changed the number of equity shares outstanding, without a corresponding change in resources.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity
shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of
all dilutive potential equity shares.

AD. Dividend
The Group recognises a liability for any dividend declared but not distributed at the end of the reporting
period when the distribution is authorised and the distribution is no longer at the discretion of the Group
on or before the end of the reporting period. A corresponding amount is recognised directly in equity.

AE. Measurement of earnings before interest, tax, depreciation and amortisation (EBITDA)

The Group has opted to present earnings before interest (finance costs), tax, depreciation and amortisation, share of
Profit/ (Loss) of associate as a separate line item on the face of the Revised Restated Consolidated Statement of
Profit and Loss for the year. The Group measures EBITDA on the basis of profit/loss from continuing operations
including other income. Finance costs includes interest on borrowings and others, lease liabilities, other borrowing
costs and foreign exchange on borrowing cost to the extent it is considered to be an adjustment to the interest rate.

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