AGS Transact Technologies Limited

Annexure VII: Statement of Adjustments to the Revised Restated Consolidated Financial Information

Notes to Material restatement adjustments:
1. Adjustment for audit qualifications: There ate no audit qualifications in auditor's report forthe yeat/period ended 31 August 2021, 31 March 2021, 31 March 2020 and 31 March 2019.

2. Adjustment due to prior period items and other adjustment
(@ Adjustment due to application of Ind AS 116
A new lease standard Le, Ind AS 116 has been notified to be effective w.e.f 1 April 2019 which provide guidelines forthe accounting ofthe lease contracts entered in the capacity ofa lessee and a lessor:

‘The Group has entered into various operating lease contracts in the capacity of a lessee and in lines with the accounting principals laid down in Ind AS 116, is required to make the following adjustments:
= The Group is required to recognise aright to use asset and a corresponding lease lability in respect of al the operating leases on the transition date

- The Group shall measure the lease liability atthe present value ofthe lease payments that are not paid at that date. The lease payments shall be discounted using the interest rate implicit inthe lease, if that rate can be
readily determined. I that rate cannot be readily determined, incremental borrowing rate shall be substituted

- The lease payments included in the measurement of the lease liability Comprise the payments for the right ro use the underiying asset during the lease term that are not paid atthe commencement date and includes the
following:

(@) fixed payments (including in-substance fixed payments as described in paragraph B42 of Ind AS 116), less any lease incentives receivable;

(©) variable lease payments that depend on an index or a rate, intially measured using the index or rate as atthe commencement date (as described in paragraph 28 of Ind AS 116). - The asset recognised in lines wit the
provisions of Ind AS 116 is required to be depreciated as per Ind AS 16, Property, plant and equipment.

= The Group has applied ‘modified retrospective approach’ as mentioned in Ind AS 116 for transitional adjustments, Therefore, the cumulative effect of adopting Ind AS 116 has been recognised as an adjustment to the
opening balance of retained earnings at 1 April 2018 (dated of inital application), The Group has applied the practical expedient to grandfather the definition of a lease on transition. This means that it has applied Ind AS
116 toall contracts entered into before 1 April 2018 and identified as leases in accordance with Ind AS 17,

i Statement of Cash Flows

(On adoption of Ind 116, in addition tothe changes, as explained above, the lease payments are reported under cash flow from financing activites as against cash flow from operating activities under the prior accounting
standards (Ind AS 17),

  

i) Deferred tax assets (net)
Deferred tax has been computed on adjustment made as detailed above and has been adjusted in Revised Restated Consolidated Financial Information.

(vy) caRO:
Inaddition to the audit opinion on the consolidated financial statements, the auditors are required to comment upon the matters included in the Companies (Auditor's Report) Order, 2016 ("the CARO 2016 Order”) issued
by the Central Government of India under sub-section (11) of Section 143 of Companies Act, 2013 on the standalone financial statements as at and for the financial years ended 31 March 2019, 31 March 2020 and 31
March 2021 respectively. Certain statements/comments included in the CARO in the standalone financial statements, which do not require any adjustments in the Revised Restated Consolidated Financial Information are
reproduced below in respect of the financial statements presented,

3.Material regrouping
Appropriate adjustments have been made in the Revised Restated Consolidated Financial Information, wherever required, by a reclassification of the corresponding items of income, expenses, assets, liabilities and cash
flows in order to bring them in line with the groupings as per the audited consolidated financial statements of the Group, prepared in accordance with Division Il Ind AS Schedule II of the Companies Act, 2013 (‘the
Act’) requirements of Ind AS 1 and the requirements ofthe Securities and Exchange Board of India (Issue of Capital & Disclosure Requirements) Regulations, 018 (as amended).

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