AGS Transact Technologies Limited
Annexure V - Basis of preparation and Significant Accounting Policies

Notes to the Revised Restated Consolidated Financial Information

AF. Cash and cash equivalents

Cash and cash equivalents comprise cash on hand, unrestricted bank balances and short-term deposits with an
original maturity of three months or less, which are subject to an insignificant risk of changes in value.

AG. Current and non-current classification

The Schedule III to the Act requires assets and liabilities to be classified as either current or non-current.

An asset is classified as current when it satisfies any of the following criteria:
(a) it is expected to be realised in, or is intended for sale or consumption in, the entity’s normal operating cycle;
(b) it is held primarily for the purpose of being traded;
(c) it is expected to be realised within twelve months after the Balance Sheet date; or

(d) it is cash or a cash equivalent unless it is restricted from being exchanged or used to settle a liability for at
least twelve months after the reporting date.

All other assets are classified as non-current.

A liability is classified as current when it satisfies any of the following criteria:
(a) it is expected to be settled in, the entity’s normal operating cycle;

(b) it is held primarily for the purpose of being traded;

(c) it is due to be settled within twelve months after the Balance Sheet date; or

(d) the Group does not have an unconditional right to defer settlement of the liability for at least twelve months
after the Balance Sheet date.

All other liabilities are classified as non-current.

Operating cycle

Operating cycle is the time between the acquisition of assets for processing and their realisation in cash or cash
equivalents. Based on the nature of services and the time between the acquisition of assets for processing and their

realisation in cash and cash equivalents, the Group has ascertained its operating cycle as 12 months for the purpose
of current and non-current classification of assets and liabilities.

AH. Recent Amendments pronouncements (standards issued but not effective).

On 24 March 2021, the ministry of corporate affairs ((MCA’) through a notification, amended schedule III of the
Act. The amendments revise Division I, II and III of Schedule III and are applicable from 1 April 2021.

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