2021 and the financial years 2021, 2020 and 2019, respectively. Attracting and retaining skilled employees is,
and is expected to continue to remain, an ongoing focus for us.

Other significant expenses include subcontracting expenses, which were = 1,093.33 million, = 2,363.05 million,
% 1,701.30 million and % 1,291.20 million, or 19.2%, 17.9%, 12.7% and 9.4% of our total expenses before
interest, depreciation and amortisation, for the five months ended August 31, 2021 and the financial years 2021,
2020 and 2019, respectively, and transaction expenses, which were 2 565.24 million, % 950.07 million,
% 861.53 million and % 502.20 million, or 9.9% 7.2%, 6.4% and 3.6% of our total expenses before interest,
depreciation and amortisation, for the five months ended August 31, 2021 and the financial years 2021, 2020
and 2019, respectively.

Competition

Our businesses are in industries which are highly competitive. For our banking sector operations, our principal
competition comes from independent ATM manufacturers and managed services providers and national and
regional financial institutions. We compete with our competitors for the sale, operations and maintenance of
ATMs and they could affect our ability to obtain or maintain desirable locations for our ATMs. Our competitors
in our Payment Solutions segment include other cash management companies, commercial banks, fintech
companies and other POS players. See “Industry Overview” on page 116.

Increased competition could affect our transaction fees, gross margins and market share.
Our Critical Accounting Policies

We set forth below certain critical accounting policies. For a complete description of significant accounting
policies applicable to us, see “Financial Statements - Annexure V — Basis of preparation and Significant
Accounting Policies” on page 229.

Basis of measurement

The Restated Consolidated Financial Information have been prepared on historical cost basis, except for the
following assets and liabilities which have been measured at fair value:

e Certain financial instruments (assets and liabilities) measured at fair value; and
e Net defined benefit (asset) / liability — fair value of plan assets less present value of defined benefit
obligations

Key estimates and assumptions

While preparing the Restated Consolidated Financial Information in conformity with Ind AS, our management
has made certain estimates and assumptions that require subjective and complex judgments. These judgments
affect the application of accounting policies and the reported amount of assets, liabilities and disclosure of
contingent liabilities at the reporting date and the reported amount of income and expenses for the reporting
period. Future events rarely develop as forecasted and the best estimates require adjustments, as actual results
may differ from these estimates under different assumptions or conditions.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognized prospectively.

Judgement, estimates and assumptions are required in particular for:

Revenue recognition

Our contracts with customers include promises to transfer multiple products and services to a customer.
Judgment is required to determine the transaction price for the contract. The transaction price could be variable

consideration with elements such as net of returns, service level agreement adjustments or credits, non-current
warranties, trade discounts or volume rebates, where applicable.

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