AGS Transact Technologies Limited
Annexure VI: Notes to the Revised Restated Consolidated Financial Information

Note 38
Service concession arrangement

During the year ended 31 March 2016, the Company along with a private bank (acting in the capacity of lead bidder) and another third party jointly bid for a public
private arrangement to set up an open loop, contactless, smart card based Automatic Fare Collection System (AFCS) in relation to a metro rail project. The roles,
responsibilities and obligations of all the parties was agreed as part of a consortium agreement executed between the three parties.

 

‘The Company's responsibilities include supply, installation and testing of AFCS equipment and support/maintenance of such equipment for a period of 6 years. The
Company is entitled to receive a specified percentage of the value of ticket sales generated by the metro rail project for a period of 10 years.

‘The arrangement has been identified as a service concession arrangement in accordance with Appendix C to Ind AS 115 Revenue from Contracts with Customers
where the Company's responsibilities include supply of the specified equipment and maintenance/support in relation to the same and the consideration linked to the
ticket revenue generated by the related metro rail project.

During the year ended 31 March 2017, the Company was in the process of fulfilling its supply/installatiorvtesting obligation and hence the cost incurred in relation to
the project was capitalised as Intangible Assets under Development, net of in substance reimbursements received from co-bidders. In addition, amounts payable in
relation to such projects have been reflected as Other financial liabilities.

During the year ended 31 March 2019, 31 March 2020, 31 March 2021 and five months period ended 31 August 2021, to the extent the installation and consequent
deployment of equipment has been completed, related expenditure (net of in substance reimbursements received from co bidders) and corresponding revenue based
on the percentage of installation and deployment is recognised in the Revised Restated Consolidated Statement of Profit and Loss and the consequent Intangible
‘Assets have been recognised in the Revised Restated Consolidated Statement of Assets and Liabilities. The useful life is assessed based on the go live date.

 

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