Rendering of services

Revenue from contracts with customers, net of service level adjustment or credits is recognized when we satisfy
performance obligation by transferring the services to the customers and recognize unclaimed amounts when no
pending performance obligation exists.

The revenue from ATM and management services is disclosed net of service level adjustment or credits, one-
time upfront fees and premium on purchase of property, plant and equipment. One-time upfront fees and
premium on purchase of property, plant and equipment is amortized over the period of the respective contract.

Revenue from maintenance contracts is recognized pro-rata over the period of the contract as and when services
are rendered. Revenue from upgrades and digital payment services is recognized as and when services are
rendered.

Revenue from one time set up fees is recognized over the expected contractual term with the customers.
Servicing fees for POS machine is recognized on a monthly basis based on certainty of collection and
transaction fees on the basis of transactions settled using POS machines.

We collect goods and service tax on behalf of the Government and therefore, these are not economic benefits
flowing to us. Hence, they are excluded from revenue.

Service concession arrangements

Revenue related to construction or upgrade services provided under a service concession arrangement is
recognized based on the stage of completion of the work performed. Operation or service revenue is recognized
in the period in which the services are provided by us.

Multiple deliverable arrangements

At contract inception, we assess the goods or services explicitly or implicitly promised in a contract and identify
as a performance obligation each promise to transfer a distinct good or service. A good or service that is
promised in a contract is 'distinct' if both of the following criteria are met:

e the customer can benefit from the good or service either on its own or together with other resources that
are 'readily available’ to the customer; and

«the entity's promise to transfer the good or service to the customer is separately identifiable from other
promises in the contract.

At contract inception, we allocate the transaction price to each performance obligation on the basis of relative
stand-alone selling price.

With effect from April 1, 2018, we have adopted Ind AS 115 ‘Revenue from contracts with customers’.
Recognition of insurance claim, dividend income, interest income or expense

We recognize the claims in the books, when the amount thereof can be measured reliably and ultimate collection
is reasonably certain. As and when claims are finally received from the insurance company, the difference, if
any, between the claim receivable from insurance company and the claims received is adjusted to the
Consolidated Statement of Profit and Loss. All other claims and provisions are accounted on the merits of each
case.

Dividend income is recognized in the Restated Consolidated Statement of Profit and Loss on the date on which
our right to receive payment is established, it is probable that the economic benefits associated with the dividend
will flow to us, and the amount of dividend can be measured reliably.

For all financial instruments measured at amortized cost, interest income or expense is recorded using the EIR,
which is the rate that discounts the estimated future cash payments or receipts through the expected life of the

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