The standalone financial statements are
presented in Indian Rupees (‘INR’ or T) in million,
which is also the Company’s functional and
presentation currency. The standalone financial
statements are prepared on accrual and going
concern basis. The accounting policies are
applied consistently to all the periods presented
in the standalone financial statements.

b) Current versus non-current classification

The Company presents assets and liabilities
in the balance sheet based on current / non¬
current classification. An asset is classified as
current when it is:

• Expected to be realised or intended to
be sold or consumed in normal operating
cycle or expected to be realised within
twelve months after the reporting period

• Held primarily for the purpose of trading

• Cash or cash equivalents unless restricted
from being exchanged or used to settle a
liability for at least twelve months after the
reporting period

All other assets are classified as non-current.

A liability is current when it is:

• Expected to be settled in normal operating
cycle and is due to be settled within twelve
months after the reporting period

• Held primarily for the purpose of trading

• There is no unconditional right to defer the
settlement of the liability for at least twelve
months after the reporting period

The Company classifies all other liabilities
as non-current.

Deferred tax assets and liabilities are classified
as non-current assets and liabilities.

The operating cycle is the time between the
acquisition of assets for processing and their
realisation in cash and cash equivalents. The
Company has identified period of twelve
months as its operating cycle.

c) Property, plant and equipment

Property, plant and equipment is stated at
cost, net of accumulated depreciation and
accumulated impairment losses, if any. Cost

comprises the purchase price and any cost
attributable to bringing the asset to its working
condition for its intended use. While deriving
cost, refundable taxes and discounts are
excluded. Borrowing cost relating to acquisition
of tangible assets which take substantial period
of time to get ready for its intended use are
also included to the extent they relate to the
period till such assets are ready to be put to use.
Capital work in progress is stated at cost less
accumulated impairment.

When significant parts of plant and equipment
are required to be replaced at intervals, the
Company depreciates them separately based on
their specific useful lives. Likewise, when a major
inspection is performed, its cost is recognised in
the carrying amount of the plant and equipment
as a replacement if the recognition criteria are
satisfied. All other repair and maintenance costs
are recognised in the standalone Statement of
Profit and Loss as incurred.

An item of property, plant and equipment
and any significant part initially recognised
is derecognised upon disposal or when no
future economic benefits are expected from
its use or disposal. Any gain or loss arising on
derecognition of the asset (calculated as the
difference between the net disposal proceeds
and the carrying amount of the asset) is
included in the Standalone Statement of Profit
and Loss when the asset is derecognised.

The cost property, plant and equipment as at
1^st April 2017, the Company’s date of transition
to Ind AS, was determined with reference to its
carrying value recognised as per the previous
GAAP (deemed cost), as on the date of
transition to Ind AS.

Subsequent expenditure is capitalized only if it
is probable that the future economic benefits
associated with the expenditure will flow to
the Company and the cost of the item can be
measured reliably.

The Company provides depreciation on
property, plant and equipment using the straight
line method at the rates computed based on the
estimated useful lives of the assets as estimated
by the management which are in most cases
equal to the corresponding rates prescribed
in Schedule II to the Act. Certain assets are
depreciated at lower rates.

The Company has estimated the following lives
to provide depreciation and amortisation:
*The Company, based on technical assessment made
by the management, depreciates certain items of plant
and machinery and vehicles (used for ATM and Cash
Management business) over the estimated useful lives
which are different from the useful lives prescribed in
Schedule II to the Act. The management believes that
these estimated useful lives are realistic and reflect fair
approximation of the period over which the assets are
likely to be used.

Leasehold improvements are depreciated on
a straight line basis over the shorter of the
estimated useful life of the asset or the lease
term, which does not exceed 7 years.

The residual values, useful lives and method
of depreciation and amortisation of property,
plant and equipment are reviewed at each
financial year end and adjusted prospectively,
if appropriate.

d) Intangible assets and goodwill

Intangible assets acquired separately are

measured on initial recognition at cost. The cost
of intangible assets recognised in a business
combination is their fair value at the date
of acquisition. Following initial recognition,
intangible assets and internally generated

intangible assets that meet the recognition
criteria under Ind AS 38 are carried at cost less
any accumulated amortisation and accumulated
impairment losses, if any.

Intangible assets are amortised over the

useful economic life and assessed for

impairment whenever there is an indication

that the intangible assets may be impaired.
The amortisation period and the amortisation
method for an intangible assets with a finite
useful lives are reviewed at the end of each
reporting period and adjusted prospectively,
if appropriate.

Subsequent expenditure is capitalized only
when it increases the future economic benefits
embodied in the specific asset to which
it relates and the cost of the asset can be
measured reliably.

Intangible assets are amortised on straight line
basis over the estimated useful life as follows:

Gains or losses arising from derecognition
of an intangible asset are measured as the
difference between the net disposal proceeds
and the carrying amount of the asset and are
recognised in the Standalone Statement of
Profit and Loss when the asset is derecognised.
Goodwill is tested for impairment annually at
the cash-generating unit level.

e) Impairment of non-financial assets

The Company assesses, at each reporting date,
whether there is an indication that an asset
may be impaired. If any indication exists, or
when annual impairment testing for an asset
is required, the Company estimates the asset’s
recoverable amount. An asset’s recoverable
amount is the higher of an asset’s or cash¬
generating unit’s (CGU) fair value less costs of
disposal and its value in use. Recoverable amount
is determined for an individual asset, unless the
asset does not generate cash inflows that are
largely independent of those from other assets
or group of assets. When the carrying amount
of an asset or CGU exceeds its recoverable
amount, the asset is considered impaired and is
written down to its recoverable amount.

In assessing value in use, the estimated future
cash flows are discounted to their present value
using a pre-tax discount rate that reflects current

market assessments of the time value of money
and the risks specific to the asset. In determining
fair value less costs of disposal, recent market
transactions are taken into account, if available.
If no such transactions can be identified, an
appropriate valuation model is used.

The Company bases its impairment calculation
on detailed budgets and forecast calculations
which are prepared separately for each of the
Company’s CGU to which the individual assets
are allocated. These budgets and forecast
calculations are generally covering a period
of five years. For longer periods, wherever
applicable, a long term growth rate is calculated
and applied to projected future cash flows after
the fifth year. To estimate cash flow projections
beyond periods covered by the most recent
budgets/forecasts, the Company extrapolates
cash flow projections in the budget using a
steady or declining growth rate for subsequent
years, unless an increasing rate can be justified.
In any case, this growth rate does not exceed
the long-term average growth rate for the
products, industries, or country or countries in
which the entity operates, or for the market in
which the asset is used.

For assets excluding goodwill, an assessment
is made at each reporting date to determine
whether there is an indication that previously
recognised impairment losses no longer exist or
have decreased.

After impairment, depreciation is provided on
the revised carrying amount of the asset over
its remaining useful life.

f) Leases

The Company adopted Ind AS 116, leases
(which replaces earlier standard Ind AS 17)
using modified retrospective approach for
transitioning by recognising right of use asset
and an equal amount of lease liability on 1 April,
2019. Under this method, the standard is applied
retrospectively with the cumulative effect of
initially applying the standard recognized at the
date of initial application. The Company elected
to use the transition practical expedient to not
reassess whether a contract is or contains a
lease at April 1, 2019.

The Company applies a single recognition and
measurement approach for all leases and hence
the Company has not considered recognition
exemptions for any of its leases. The Company

recognizes lease liabilities to make lease
payments and right-of-use assets representing
the right to use the underlying assets.

The Company also applied the available
practical expedients wherein it:

• Used a single discount rate to a portfolio
of leases with reasonably similar
characteristics

• Relied on its assessment of whether leases
are onerous immediately before the date of
initial application

• Excluded the initial direct costs from the
measurement of the right-of-use asset at
the date of initial application

• Used hindsight in determining the lease
term where the contract contained options
to extend or terminate the lease.

i) Right-of-use assets

The Company recognizes right-of-use
assets at the commencement date of the
lease (i.e. the date the underlying asset is
available for use). Right-of-use assets are
measured at cost, less any accumulated
depreciation and impairment losses, and
adjusted for any remeasurement of lease
liabilities. The cost of right-of-use assets
includes the amount of lease liabilities
recognized, initial direct costs incurred,
and lease payments made at or before
the commencement date less any lease
incentives received. Right-of-use assets
are depreciated on a straight-line basis
over the shorter of the lease term and the
estimated useful lives of the assets.

ii) Lease liability

At the commencement date of the lease,
the Company recognises lease liabilities
measured at the present value of lease
payments to be made over the lease term.
The lease payments include fixed payments
(including in-substance fixed payments)
less any lease incentives receivable, variable
lease payments that depend on an index or
a rate, and amounts expected to be paid
under residual value guarantees. The lease
payments also include the exercise price of
a purchase option reasonably certain to be
exercised by the Company and payments
of penalties for terminating the lease, if the
lease term reflects the Company exercising

the option to terminate. Variable lease
payments that do not depend on an index
or a rate are recognized as expenses (unless
they are incurred to produce inventories) in
the period in which the event or condition
that triggers the payment occurs.

In calculating the present value of
lease payments, the Company uses its
incremental borrowing rate at the lease
commencement date because the interest
rate implicit in the lease is not readily
determinable. After the commencement
date, the amount of lease liabilities
is increased to reflect the accretion
of interest and reduced for the lease
payments made. In addition, the carrying
amount of lease liabilities is remeasured
if there is a modification, a change in the
lease term, a change in the lease payments
(e.g. changes to future payments resulting
from a change in an index or rate used
to determine such lease payments) or a
change in the assessment of an option to
purchase the underlying asset.

iii) Short-term leases and leases of low-value
assets

The Company does not apply the short¬
term lease recognition exemption to its
short-term leases (i.e. those leases that
have a lease term of 12 months or less
from the commencement date and do not
contain a purchase option) and low-value
assets recognition exemption.

Company as a lessor

Leases in which the Company does not
transfer substantially all the risks and
rewards incidental to ownership of an
asset are classified as operating leases.
Rental income arising is accounted for on
a straight-line basis over the lease term and
is included in revenue in the Standalone
Statement of Profit and Loss due to its
operating nature.

g) Inventories

Inventories are valued at lower of cost and
net realisable value. Cost includes cost of
purchase and other costs incurred in bringing
the inventories to their present location and
condition. Cost of trading goods, stores and
spares is determined on a weighted average
basis. Net realisable value is the estimated
selling price in the ordinary course of business,

less estimated costs of completion and the
estimated costs necessary to make the sale. The
comparison of cost and net realisable value is
made on an item-by-Item basis.

h) Revenue recognition

Revenue is measured at the transaction price,
after deduction of any trade discounts, volume
rebates and any taxes or duties collected on
behalf of the government such as goods and
services tax, etc. Accumulated experience is
used to estimate the provision for such discounts
and rebates. Revenue is only recognised to the
extent that it is highly probable a significant
reversal will not occur.

The Company recognises revenue when it
transfers control over goods or services to a
customer. The Company has concluded that it is
the principal in all of its revenue arrangements
since it is the primary obligor in all the revenue
arrangements as it has pricing latitude and is
also exposed to inventory.

The specific recognition criteria described below
must also be met before revenue is recognised.

Ind AS 115 requires estimating variable
consideration and including it in the transaction
price to the extent that it is highly probable
that a significant reversal will not occur.
Variable consideration is then allocated to
performance obligations.

Sale of goods:

Revenue from sale of goods is recognised at
point in time when control of the products being
sold is transferred to our customer and when
there are no longer any unfulfilled obligations.
The Performance Obligations in our contracts
are fulfilled at the time of dispatch, delivery or
upon formal customer acceptance depending
on customer terms.

The company provides and commits preventive
maintenance services on its certain products
at the time of sale for one to three years from
the date the sale. These maintenance services
are sold together with the sale of product.
Contracts for such sales of product and
preventive maintenance services comprise two
performance obligations because the promises
to transfer the product and to provide the
preventive maintenance services are capable
of being distinct. Accordingly, a portion of the
transaction price is allocated to the preventive

maintenance services and recognised as a
contract liability. Revenue is recognised over
the period in which the preventive maintenance
services are provided based on the time elapsed.

Sale of services:

Revenue from ATM and cash management
services, card personalization services and
allied operations is recognised over time
when the required services are rendered in
accordance with the contracts / agreements
entered into with the customer and is disclosed
net off service level deductions charged by the
customers as per the terms of the agreement.

Revenue from services rendered over a period
of time, such as annual maintenance contracts,
are recognized on a straight line basis over the
period of the performance obligation.

The contract liabilities primarily relate to the
advance consideration received from customers
for ATM and Cash management services
and allied operations, for which revenue is
recognised over time.

Revenue recognized in excess of billing
is classified as unbilled revenue; while
billing in excess of revenue is classified as
unearned revenue.

When the entity has a right to consideration for
goods/services provided to date, however the
billing for such goods/services and it’s payment
will be received after completion of specified
activities, the Company recognises contract
asset for the same.

Sale of ATM sites:

Revenue from sale of ATM sites is recognised
based on customer acceptance received on
completion of the ATM sites as per the terms of
agreement entered with the customers.

i) Recognition of Dividend income, Interest
income or expense:

For all debt instruments measured either at
amortised cost, interest income is recorded
using the effective interest rate (‘EIR’). EIR is
the rate that exactly discounts the estimated
future cash payments or receipts over the
expected life of the financial instrument or
a shorter period, where appropriate, to the
gross carrying amount of the financial asset.
When calculating the effective interest rate, the
Company estimates the expected cash flows

by considering all the contractual terms of
the financial instrument but does not consider
the expected credit losses. Interest income is
included in finance income in the Standalone
Statement of Profit and Loss.

Dividend income is recognized in Standalone
Statement of Profit and Loss on the date on
which the Company’s right to receive payment
is established.

j) Foreign currencies

Transactions in foreign currencies are initially
recorded by the Company at the functional
currency spot rates, at the date the transaction
first qualifies for recognition.

Monetary assets and liabilities denominated
in foreign currencies are translated at the
functional currency spot rates of exchange at
the reporting date. Exchange differences arising
on settlement or translation of monetary items
are recognised as income or expenses in the
period in which they arise.

Non-monetary items that are measured in
terms of historical cost in a foreign currency are
translated using the exchange rates at the dates
of the initial transactions.

k) Employee benefits

a) Short-Term Employee Benefits

Short-term employee benefits are
measured on an undiscounted basis
and expensed as the related service is
provided. A liability is recognized for the
amount expected to be paid under short
- term cash bonus, if the Company has a
present legal or constructive obligation to
pay this amount as a result of past service
provided by the employee and the
obligation can be estimated reliably.

Provident fund and employees state
insurance is a defined contribution
scheme. Obligations for contributions to
defined contribution plan are expensed
as an employee benefits expense in the
Statement of Profit and Loss in period in
which the related service is provided by the
employee. The Company has no obligation
other than the contribution payable to the
provident fund and ESIC.

b) Defined Benefit Plans

Gratuity liability is a defined benefit
obligation and is provided for on the
basis of an actuarial valuation done as
per projected unit credit method, carried
out by an independent actuary at the
end of the year. The Company makes
contributions to a fund administered and
managed by an insurance company to fund
the gratuity liability. Under this scheme, the
obligation to pay gratuity remains with the
Company, although insurance company
administers the scheme.

Net interest is calculated by applying the
discount rate determined by reference to
market yields at the end of the reporting
period on government bonds. The rate is
applied on net defined benefit liability
/ (asset) as determined at the start of
the annual reporting period, taking into
account any changes in the net defined
liability / (asset) during the period as a
result of contributions and benefit paid.
The Company recognises the following
changes in the net defined benefit
obligation as an expense in the Standalone
Statement of Profit and Loss - Service
costs comprising current service costs,
past-service costs, gains and losses on
curtailments and non-routine settlements
and net interest expense or income.

When the benefits of a plan are changed
or when a plan is curtailed, the resulting
change in benefit that relates to past
service (‘past service cost’ or ‘past service
gain’) or the gain or loss on curtailment is
recognised immediately in profit or loss.
The Company recognises gains and losses
on the settlement of a defined benefit plan
when the settlement occurs.

Remeasurements comprising of actuarial
gains and losses, excluding amounts
included in net interest on the net defined
benefit liability and the return on plan
assets (excluding amounts included in
net interest on the net defined benefit
liability), are recognised immediately in the
balance sheet with a corresponding debit
or credit to retained earnings through
OCI in the period in which they occur.

Remeasurements are not reclassified to the
Standalone Statement of Profit and Loss in
subsequent periods.

c) Other long-term employee benefits -
compensated absences

Accumulated leave, which is expected to
be utilised within the next 12 months, is
treated as short term employee benefit.
The Company measures the expected cost
of such absences as the additional amount
that it expects to pay as a result of the
unused entitlement that has accumulated
at the reporting date. The Company treats
accumulated leave expected to be carried
forward beyond twelve months, as long¬
term employee benefit for measurement
purposes. Such long-term compensated
absences are provided for based on the
actuarial valuation using the projected
unit credit method at the year end. The
Company presents the leave as a short¬
term provision in the balance sheet to the
extent it does not have an unconditional
right to defer its settlement for 12 months
after the reporting date.

Remeasurements, comprising of
actuarial gains and losses, are recognised
immediately in the Statement of
Profit and Loss.

l) Income taxes

Income tax expense comprises current and
deferred tax. It is recognized in the Standalone
Statement of Profit and Loss except to the
extent that it relates to items recognized directly
in equity or in Other Comprehensive income.

Current tax

Current tax comprises the expected tax payable
or receivable on the taxable income for the
year and any adjustment to the tax payable
or receivable in respect of previous years. The
amount of current tax payable or receivable is
the best estimate of the tax amount expected
to be paid or received that reflects uncertainty
related to income taxes, if any. The tax rates and
tax laws used to compute the amount are those
that are enacted or substantively enacted, at
the reporting date.

Current tax assets and liabilities are offset only
if there is a legally enforceable right to set off
the recognised amounts, and it is intended to

realise the assets and settle the liability on a net
basis or simultaneously.

Deferred tax

Deferred tax is recognised in respect of
temporary differences between the carrying
amount of assets and liabilities for financial
reporting purposes and the corresponding
amounts used for taxation purposes.

Deferred tax is not recognised for

• Temporary differences on the initial
recognition of assets or liabilities in
a transaction that is not a business
combination and at the time of the
transaction affects neither the accounting
nor taxable profit or loss and does not
give rise to equal taxable and deductible
temporary differences;

• Temporary differences related to the
investments in subsidiaries to the extent
that the Company is able to control the
timing of the reversal of the temporary
differences and it is probable that they will
not reverse in the foreseeable future; and

• Taxable temporary differences arising on
the initial recognition of goodwill.

A deferred tax liability is recognised based on
the expected manner of realisation or settlement
of the carrying amount of assets and liabilities,
using tax rates enacted, or substantively
enacted, by the end of the reporting period.

Deferred tax assets are recognised only to the
extent that it is probable that future taxable
profits will be available against which the asset
can be utilised. Deferred tax assets are reviewed
at each reporting date and reduced to the extent
that it is no longer probable that the related tax
benefit will be realised. Unrecognised deferred
tax assets are re-assessed at each reporting
date and are recognised to the extent that it has
become probable that future taxable profits will
allow the deferred tax asset to be recovered.

Deferred tax assets and deferred tax liabilities
are offset when there is a legally enforceable
right to set off current tax assets against current
tax liabilities; and the deferred tax assets and
the deferred tax liabilities relate to income taxes
levied by the same taxation authority.

Deferred tax relating to items not recognised
in the Standalone Statement of Profit and
Loss is recognised either in OCI or in equity
(where the item on which deferred tax
is arising is recognised). Deferred tax on
differences arising in business combination is
recognised in Goodwill.

m) Earnings per share

Basic EPS amounts are calculated by dividing
the profit for the year attributable to equity
holders by the weighted average number of
equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing
the profit attributable to equity holders (after
adjusting the cost recognised in the current year
in relation to employee stock options schemes)
by the weighted average number of equity
shares outstanding during the year plus the
weighted average number of equity shares that
would be issued on conversion of all the dilutive
potential equity shares into equity shares.