AGS Transact Technologies Limited

Annexure V - Basis of preparation and Significant Accounting Policies

Notes to the Revised Restated Consolidated Financial Information

Property plant and equipment which are not ready for intended use as on the reporting date are disclosed as “Capital
work-in-progres:

 

 

Advances paid towards the acquisition of property, plant and equipment outstanding at each reporting date are
classified as Capital advances.

POS machines which are removed/de-installed from a particular location are included under ‘Deletions’
(ii) Subsequent expenditure

Subsequent expenditure is capitalised only if it is probable that future economic benefits associated with the
expenditure will flow to the entity.

(iii) Depreciation

Depreciation on property, plant and equipment

Depreciation is provided on the Written Down Value (“WDV’) method, except in the case of Building, ATM, ATM
sites, Demo assets, POS machines, Vehicles for cash management and stores and spares where the Straight-Line
Method (‘SLM’) is used, over the estimated useful life of each asset as determined by the management. Depreciation

is provided on a pro-rata basis i.e. from the date on which asset is put to use.

The estimated useful lives and method of depreciation of items of property, plant and equipment are as follows:

 

 

Asset Method of Depreciation Useful life (years)
Buildings SLM 30-60
ATM machines** SLM 5-10
Others assets at ATM Sites* SLM 7
POS machines** SLM 3-5
Demo assets# SLM 2-5
Stores and spares# SLM

Plant and machinery* WDV 10-15
Furniture and fixtures WDV 2-10
Office equipment, electrical installation and air conditioners WDV 2-10
Computers“ WDV 1-6
Vehicles for office purposes WDV

Vehicles for cash management* SLM

 

 

* ATM machines, other assets at ATM sites, POS machines, Vehicles for cash management business and Plant and
machinery are depreciated over the estimated useful lives, which is lower than the useful life indicated in Schedule
II of the Act. The management has estimated, supported by independent assessment by professionals, the useful
lives of the classes of assets.

# Management has estimated, supported by independent assessment by professionals, the useful lives of the classes
of assets.

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