NCR ANNUAL REPORT 2020

STATEMENT OF CASH FLOW

FOR THE YEAR ENDED l 1 DECEMBER 2020

Hot es 2020 2019
!!:'000 !!;'000

Operating activities 4,221, 164 6,264,094
Ca.sh receipts from customers (5,503,507) (5.887,715)
Payment to suppliers and emptcvees
VAT pafd (158,001)
Income lax paid
14 (38,312)

Net cash flow tut.iliZt>d in)/ generated from operating activities 28 (1,320,655) 218,378

·························------

Investing activities 16 (22,448) (33.284)
11 39.923
Purchase of property, plant and equipment 11 32,026 21,937
Rental income received
Investment income recelved 1,202 28,576

Net cash used in inv5tingactivities ······-·····-·····

10,780

.........................

Financing activities - ...... --·.
Repaym'-'1'1t or eon-current lntercompanypayabt~
-------·-·
Net cash used in financing acuvfttes

Net (decrease)/ increase in ti3sh and cash equlva.tents (1,J09,875J 246,954
Net foreign exchange difference 18.517 1, 129
Cash ancl cash equivalents at 1 January
l,314~554 3,066.471

Cash ancl cash equivalents at 31 December 21. 1 2,023, 196 3,)14,554
===-=,.,...= ====

See notes to the financial statements.

NOTES TO THE FINANCIAL STATEMENTS

1. Corporate information
NCR (Nigeria) Ptc was incorporated as a Limited Liability Company an<I commenced bll$loess on 9
Oec.e1nber 1949 under the name Nation.al Cash Reglste< Company (W'est Africa) Lfmited and changed
it;s name to NCR (N~a) Limited in 1974. The Company was granted a listin.g on the Nigerian StQCk
Exchange on 30 May 1979 ~n(:I became known as NCR (Nigeria) Pie on 16 July 1996.

NCR (NlQena) Ptc ls a Company domiciled In Nl9,erla. The Company's prfncjpal activity fncludes
provkionof tedmotogyand servkes U\at help businesses conoect. lntl!f'actand transectwith their
customers. NCR (Nigeria) Plc is a technology compeny that provides fnnovat-ive products. which
include:

ATM (Automated Teller Machines)
Retail Point of SalE?$ terrnioets
Self Service Kiosks
Self~hec.k-in/outsystems
Sale of corn.puter consumab4e.s

2. Basis of preparation

2a. Statem~nt of compliance
The ffnanclal statements have been prepared in accordance wilh lntematfooal Financial ReporUng
Standards- (IFRS) as Issued by the lntematlonat Accountfog Standards Board (IAS8), the provtsi;c,ns
of the Companies and Allied Matters Act, 202.0 and in compliance with the Financial Reporting
Council of ,.j.geria Act No 6. 1.0·11.

The tlnanclal statements have been pt""epared on a hls.torlcal cost basts except f0t non· current
fnte-rcompany payable meas1Sed at fafr value. Theflnancl.al statements are presented In Nalra and
all valves are rounded to the nearest thousand (M'OOO), except when otherwise indk:ated.

The financial statement.swere authorised f0t issue by the Directors on 31 March 2021.

lb. Functional and pre-sentation currency
These financial starernems are presented in Nigerian Nalra, which f$ the Company's functiooal
currency. Except otherwise lndk.ated, financial lnfoonaclon presented In Nalra have been rounded
to the nearest thousands (M'OOO).

le. Composition of ftnanclal s.tatements
The financial statements comprise:
Statement of profit Of toss and other comprehensive income
Statement of financial posit)On
Statement of chanitS in equity
Statement of cash flows
Notes to the f1nanclat St.)teme-nts

ld. Finantilllperiod
These flnancl.at statements cover the, financial yf'&r from 1 January 2020 to 3t Of!<ember 202.0,
with ccmperauve flgurts for the ffna,nclal yeM from 1 January 2019 to 31 Dect""!mbl?r 2019.

NOTES TO THE FINANCIAL STATEMENTS

... (OIJr'd

3. Summary of sisotffcant accountina polk1es

The accou.ntfngpoliciesset out betow have been conslste-ntly apptl(>d to all periods pfesented fn
these flnttr,cial statements ..

Severttl other amendments and interp<etations apply fO' the firrt time ln 2020, but do not have an
impact on the financial statements of the Company. The Company has not early adopted any
standards, interpretationsor amendmentsthat have been issuedbut are not yet effective, (Refer
to Note Sa for mo((' deta.R).

Ja. Revenue from contracts with customers

The CofnpanyIs In the business of provkltng technologyand servke-sthat help businessesconnect.
interact and transact wllh their customers. It provides innovative products which illdude, ATM
(Automated TellerMachines}, Retail Point of Sates terminats, Self Service Kiosks, Self•check•in/out
systems and sale of compute< consumables. These contracts are divided into three revenue streams
name4y:

• Ffnaoctal ~rvkc Group • Revenue Is derived from sale of equfpn)ent, other hardwart dcv1ces
such as ATM.s, lnstaltatlon sevecs and service warranty.
• World Custome-r $e(Vlce,s.. Reve-noto is derived from provlslon of htlJ'dware and software
n,alntenanceservices.

Revoouc trotn cootracrs w1th customers Is recognised when control or the goods or servkes are

crans(errt'd to tht custon)(?r lit an M'IO...-.t that rt-fleets the- conskleraoon to which the!' Company

cxpec.ts co be C!'i\titled tn exchange for those goods or services. The (ol'npany ha.s genera.tty
concluded that it tS the principal ln its revenuearrangementsbecause it typicallycontrols the goods
0< se<Vicesbefore, transferringthem to the customer.

iht!" disclosures of slgnUlcarll accououna judg,ctnc-,ns, estimates ~nd assumptions ft-latlr)t to
revenue fromcontracts with customers are provided In Note 4.

The Companyhas applied IFRS 1S practical expedlent to a portfolkl of contracts (or perloon.ancc?-
obtltat'ion.s) wrth similar chan,ctetlstks since the Col'nl)any rl!'asonably expect tMl th<!-.a<countltlg
result w1ll not be materially different from the result of appty1ng lhe staodard to the lod1vfduat
contracts. The Companyhas been able to lake a reasonableapproachto determinethe portfolios
that would be representative of its types of customers and busfnesi Unes. This t\as been used to
categorised the different revenue streamdetailed betow.

Salo of e-cp.,lpment and other hardware dovfces
Revenl.K' from sateof equipment ilild otM, hardwtlte eevkes are recogni$ed at tht! pof.nt in urne
wheo control of the asset k transferred to the customer, ieoeratty on de-livery of the
equlpment/oevkes. The normal ctedlt term is 30 to 90 days upon delivery.

The Comp.:any consid~rs whelhe< th~ art! ether promises in the contract that are separate
perrormaoce obttiations to which a portfon of tile transaction prke needs to be allocated (e.g.•
warranties). In deteonlni.ng the transaction price for I.he sate ot hatdware. the Con1panyconskJers
the effects or variable consideration, the extsteoce of stgnlHcant financing components, nooc:ash
coos:tde:ratlon, and consider-at loo payable to the CtJstomer (lf any).

NOTES TO THE FINANCIAL STATEMENTS

... (OIJr'd

3. Summary of ~fanlfic.ant a<.<OUntfng policies• continued

la. Revenue from contracts with customec-s • continued

t, Signtficant financingcomponent

Using Lhe practical ex~ient in IFRS 15, the Company does not adjust the promised amount of
consideration for the effects of a significant financing component since it expects, at contract
inception, that the period between the trensrerof the promisedgood Of service to the customer
and when the customer pays for that i(lod or service will be one year or tess. As a consequence,
the Company does not adjust any of the transaction prices for the time value of money.

ii, Warranty obligations

The Companytypically provides warranties for general repairs of defectsthat existed at the time
of sate. Theseessurence-typewarranties are accounted for under IAS 37 Provisio~.Contingent
Liabilities and ContingentAssets. Refer to the accountingpolK.yon provisions.
The Company providesa one-yearwarranty beyood Tlldng defects that existed at the time of sale.
These service-type warranties are sotd either separatety or bundled together with the sale of
hardware.

Contracts for bundled sates of equipment and a service•t.ypewarranty comprise two performance

obttgations because the promises to transfer the equipment and to provide the seo-ce-tvse

warranty are c.apable of bei.ng distin<;t. Using the relative stand•alone setting price method, a
portion of the transaction price i$ attoc:ated to the service•type warra.ntv and recognised as a
contract liability. Revenue is recognised over the period in which the servke•type warranty is
p<ovidedbased on lhe time elapsed,

Contracts for bundled sates of equipment and Installation services are comprised of two
performance obligations because the promises to tra1'\'$fer equipmi,,t and provic:Se instatlation
services are capabae of beinj disti~t and separate-ly identifiable. A.ccordingly, the Comp,;1ny
allocates the transaction price based on the relative stand•atone selling prices or the equipment
and installation services.

iii. Installation and malntena.nce services

The Company provides installation and maintefl;uxe services that are either sold separatetv or

bundledtogetherwith the sale of equipment toa customer. The installation/malntenan(e services
·can be obtained fromother provider$and do not significantly c.ustomiw. or modify the equipment.
Contrac~ for bundled sates of equipment, installation and malnteoance services are comprised of
three performance obligations because the, promises to transfer equipment and prO\lic".e
i.nstatlation/maintenance services are capable of bc:,ing distinc.t and separatety identifiable.
Accordingly, the Companyattocates the transactionprice based on the relativestand•atoneselling
prices of the equipment and installation services.

The Company recognises revenue from installation services ovar- time, usint an input method to
measure progress toward.i comp(ete satbfac:tion of tilt? service, because the customer
5imuttaneouslyreceives and consumes the benefits providedby the Company. Revenue from the
sale of the equfpment are recognised at a point in time, generally upon d'?livery of the equipment.

NOTES TO THE FINANCIAL STATEMENTS

... (OIJr'd

J. Summary of ~fanlfic.ant a(Counting policies• continued

la. Revenue from contracts with customec-s • continued

Contract balances

Trade receivables
A receivable represents the Company's right to an amooot of consideration that is unconditional
u.e.. only the passage of time is requireq'b. efore payment of the consideration is doej.

Contract Liabilities

A contract liability is the obligation to transfer goods or services to a customer fa< which the
Company has received consideration for an amount of consideration is due) from the customer. If
a customer pays consideration before the Company tramfers goods or services to the customer,
a contract liability is recognised when the payment is made or the payment is due twhicilever is
earlier). Contract liabilities are recognised as revenue when the Company performs under the
contract.

lb. cost of sales

Cost of sales includes purchasecost of merchandise and directly attributable overheads.

Jc. Segment reporting

Operatfng segments are reported in a manner- consistent with the internal reportiOQprovided t.o
the Chief Operating Decision Jiiaker. The Chief Oper;uing Decision Ma.ker, who is responstble for
alloc;atfng resources and assessing performance of the operating segments. has been identified as
the Country Head/ Chief Exewtfve Officer.

Formana.£ement purposes, the Company is organi:sed into-business units based on its produc-ts ~nd
services. The strate,sk business unit offer different products and services and are managed
separatelybec:ause thf?y require·different marketingstrategies.

The entity's opera.tins: $-egme.nts ste as follows:
Financial Service Group
World C1,1s.tomer Serviic:es

The Company's Country HeadI Chief ExecutiveOfficer mon1torsUleoper<:tting resultsof its business

units separately for ma.k.i~ decisions about resource allocation .and performanc.:e assessment.

Bosiness unit performanc;eis evaluated based on revenue and costof sates. Transferl)flcesbetween
opefatingsesments.areon an-arm's len,gth basisin a IT)illnoe<similar to transac.tiooswiththird parties.

Re-venue 2020 O,m, •Motail\ Revenu,e 2019 O,m, .•Mllrtin
N'O<IO profit N'OOO Coi.t of
Cost of 1<000 .,, Ptorit
wSOoJoHo 1<000
.. ,es (41,Sot2J
N'OOO

flna~I l,224,061 l,265,601 l, 909 ,&&Al ),&86,950 22,9)4
se-eee
G.roup
\\'ortd

Cui.tornct l -221 1'!7 l ¥ZPZ .l.l.Ull2.. .JAL. 2 157 721 i 229 715 §5§ 516 .:lll!i.
Servic"' 881.510
5, 125,508 -4,333,)30 292, 178 6.067.675 5,t86",f65 151'

NOTES TO THE FINANCIAL STATEMENTS

... (OIJr'd

Jc. Setmt?nt reportfns• C<lntinved

ThereK no disclosureof the (toss)/ profflfor the perkid. dep<eelatk>nand amortisation,assets and
0.abilitiesfor each operatingsegment be.ca\lsem?tnagement based its performanceassessment on
the iross marain from e.ach operating segmerit and assets and liabilities of the Company are not

directly related tP a segment,

.ld. Provisions

Gen~ra.l

Provisionsere recognised when the Company has a present ob1igation as a result of a past event,
and It is pcobable that the Company witl be required to settle that obUgaUoo. Provisions are
measuredat the. 1nan.agement's best estimate- of the expenditure f'equiredto seute the oblig_iltion

at the 1eporting date, and are discounted to present value using a commercial rate (pre•tax rate)

where the effect is material. Discounts are unwound through pt'ofit or toss from lhe date the
provisionfs mad~ up to the d3t~ lhat the expeodfturt:coveredby tbe ptOVlsloois incurred.

Warrantyobtfgatlons

The Companyprovideswarrantiesforgeneral repairs of eetecn th.at existedat the time of sate, as

required by law. Provisions relate to these assurance-typewarranties are recog:ntzedwhen the
p<oducl is sold or the service is provided to the customer. Initial recognitionis. based on hlstoricat
experience. The initial estimate of warranty-relatedcosts is revised a..nnuatty.

Je. f"ore1gn curro~s

The financial statements of NCR (Nigeria) P\c are presented in Naira, which Is the Company'~

functional currency. In preparing the financial statements, transactions in currenciesother than

the Company's functional currency are recorded al the rates.of exchange pre'laillngon the dates
of lh& e-ereecueos. ·

Monetary assets and liabilities that are denominated in foreigncurrenciesare retram.Lated at the

rates p<evailing at the reporting date. tfon•monetary items canied at fair value that are
denominated in foreign currenciesare tra0$lated at the rates pievailingat the date when the lair
valut was de-termln<'d. Any tc-sultfng.Cl(Change dlfft.'<t'nce-sarfslng :,s a resun of (t>transtaUon of
monetary ttems a,c disdosed separat~ly fn the statement of ptofit or toss ttnd other co,np.-ehoostve
Cncome.

Non•monetaryitemsmeasuredin teems ofhtStorkal cost that are denominated in foreigncurrencies
are translated using the exchange rate at the date of the transaction. The gain or loswising on
translationof non-monetary iterm measured at fair value is treated tn line with the recognition of
the gain or loss on the change in fair-value of the·item {i.e. translation differeoceson items whose

fair value gain or loss is recognized in OCI or profit or loss are also recognized in OCI or profit or
loss. respectively}.

3f. Taxauon

The w expensere17escntsthe sum ol the current tax and deferfedw.

Current tax

The tax currently payable is based on taxable profit for the year. Ta.xable profit differs from net;
p(ofit as. r<'PortC!d in the statement of pro4'il or toss and other comprehensive i~ome because it

excludesItems of Income or expensethat are taxabteor deductible In other years al'KI it fu,ther

NOTES TO THE FINANCIAL STATEMENTS

... (OIJr'd

J. summaryof siiolficant a«o1.1ntinapcuctes • Continued

Jf. Taxation-Continued

Current tax .. Continued

excludesitems that are never- taxable or deductible. The Company's liability for current tax ts
cetcuteted using tax rates that have been enacted or substantively enacted by the reporting date.

neterred tax

Deferredtax liabilitiesare eeneratty recog,nisedfor all ta>tabletemporarydifferencesexceptwhere

the deferredtax liabilityarises on goodwill that is not tax deductibleor the ;nitial recognitionof an
asset or liability in a transaction that is not ~ bus:iness combination and. at the time of the
transaction, affects neither accounting profit nor taxable profit or loss.

Deferred tax: assets a.re recogn1sed for all Geduc1ib(e temporary differences, carry.forwardof
unused tax credits. and unuwd tax tosses, to the extent that it ·is prObable that taxable profit wfll
be available agajn.st which the deductible temporary differenc:es alld the <:any forward of unused
tax credits and unused tax losses can be utilised except when the deferredtax asset relating to the
deductible temporary difference arises from the init411 recognition of an asset or liability in a
transaction that is not a business combination and, at the time of the transaction, affects neither
the a<:.<:.ountingprofit nor taxable profit or loss.

The c;.arrying·amQunt of deferred tax assets is reviewedat each rep.ortingdere and reduced to the
extent that it is no longer probable that sufficient taxable profits will be available to allow all or
part of the asset to berecovered.

Deferred tex is calcu1ated at the tax rates that are expected to apply in the period when the liability
tS, settted or the asset is. reetised b,a,sedon tex laws. and rates that have been ena<:.ted at the
reportifl!date. Deferred tax is ch~rgedor creditedin profit or toss, except wlleri it retetes to items
charged or credited in other comprehensive income, in which use the deferred tax is also dealt
with in other comprehensiveincome.

Deferred tax assets and Ii.abilities are off.set when there is a legally enforceabl.eright to set off

current w aswts Qgainst currenttax liabilities and when they relate to income taxes levied by the

same taxation authorityand the Company lnteods to settle its. current tax assets and liabiliti~ on
a net basis.

Withholding tax

The Nigerian Government requires an entity paying for- services rendered by the Company to
withhold or deduct tax from the payment and pay that tax to the Government-. This is considered
an advance payment of Company income tax by the Company (.,."ho rendered the service) and is
paid by the cu:stomerreceiving,the wrvke oo behalf of the Company. The Companyis entitlecJ to
receive a Tax Credit Note from the customer who received the service. as evidence that the
withholding ta.x has been paid. The Company can then utilize these Credit Notes to reduce the
amount of income tax payable. Without receiptof Credit note from the OJstomer, the Companyis
unable to benefit from the prepayment of tax in the form of the withholding tex. The Company
recognizes. a withhotdingtax receivable once the service hai been rendered and the withholding
tax has been deduct@d by the custome, Ircm payment due to the Company. Th" Company assesses
the (E!'cove.rabilityof the Tax C(@dit Note-s Irom the customers f'elating to the amounts deducted by
its custoniers. The Company makes approp(late allowances for ~limatt'd ir(ecoverabte amounts
when there is object.Iv~evidence that lhe WlthhotdfngTaxCredft Notes may net be recefved,ThC?Se
impairment allowancesaitl' (etog,nlz~din p(Olit or loss under dist(ibution expense.

NOTES TO THE FINANCIAL STATEMENTS

... (OIJr'd

J. summary of $iJniffcant a«o1.1ntina policies· Continued

Jg. E.e.rnfngs per share

Eamtngs per shere are cetcutared by dtvldln-s profit or loss for th.e year by the weighted average

number of ordinary shateholdtng. DUut<!'d earnings per share are catcutnted by dividing profit or
loss for the year by the fully-diluted .-....mber of ordinary shares outstandini durin,g the year.

Jh. Property. plant and e,quli)meot

Items of property, plant and equlpmenl are state-cl at cost tess accumulated depreciation and any
Impairment tosses.

Properties In the course of consttuctton for producdon, supply or administrative purposes, ot tor
purposes not yet dete<mlned, are earned at cost, les.s any recognized lmpalnnent loss. Cost

includes, for qualifying assets, borrowfna costs capitalized in accordance with the Company's
accounting; policy. Depreciation i.s not charged on these assets until the assets are avi:lllable for
thef.r intended use.

Oe,preclallon Is ch:,tged lo profll or loss usl~ the stra1ghl·llnt method so es to write off the cost
to their residual values (Y,lertheir estimated useful lives on the rotlowlng bases:

Ctass of a$Sets Estimated useful Hves

(Years)

Furniture and f1tt1na:S 5

Building 34

Improvement on building 5·10

Computer equipment 4

Plant, machinery alld equipment 5

The Building was coostructed on a lalld outnghd)' pvrGhased by the Compan)'. The assets' resklual

values and useftA lives are rev$ewed, and adjusted 1f appropriate, at the end of eadl reporting date.
An asset's c.arryfng amount ts wrttten down lmme<ffatety to Its recoverebteamount if the asset's
carrying amount is greater than its estimated recoverabte amowus.
Tht!> g:iin or loss ariSH\g Oil the disposal or rctire,cnent of an asset fS determined as the dlt(etence
between the sates proceeds and the catrylng amount of the asset and ts tecognlzed In p<oflt or

loss.

Expemes on repaffs and mawneoa.oc.e fot Instance day-to-day service cost arxl ongoing maintenance
cost are recognized In profit or toss rmmedlatety. Major repafrs·and ovemaut costs are capltaUzed
If it will result In fulure economk beoeflts. The res"1uat vallteS, usefut Hves and methods of
dcp<eciatlon of property. plant and equtpment are reviewed at each Hoanclal year·endand adjusted
prosf)e(.tively, if appropriate.

31. tnventedes

lnventor1es are stated at the lower of cost i,l'\d r'let realnabte value using the Flrst·ln·First·Oul
(FIFO) method. Net reallzable- value represenu the esumated selling price of lnventodes less
estimatedcost to make the sale.

NOTES TO THE FINANCIAL STATEMENTS

... (OIJr'd

3. Summary of sls:nificantaccountingpollcles.. Contfnued

Jj, Cash and short•term deposits

Cash and short-term deposits in the statement of financial position comprise cash at banks and on
hand and short•term deposits with a maturity of three months or less, which are highly liquid and
subject to an insignificant risk or changes in value. The Company does not have bank overdrafts.

The carrying amount of cash and short-t.erm deposit is approximately equal to their fair value.

Forthe purpose of the statement ofcash Itcws, ca.shand cash equivalentsconsist ofcash and short-
term deposits, as defined above,tess restrjcted cash as they are consideredan integral partof the
Company's cash management. The restrictionsare in respect of Adva.nce PerlormanceGuarantees
prov~ed by some banks for some customers pending the performance of the oontractua.t
obligatloM by the Companyand excess amount with Central Bank of Nigeria being theunutlliz~d

'°'LC's amount made for the purpose or bidding for fo,eign exchange to finance LCs the Company

which v.·-ere yt'l to be refunded as at reporting date. The cash ts resrrlctedfor a peococr 12 months

after year end.

Jk. Financial Instruments-initial recognition and subsequent measurement

A'fioancialinstrument is any contract that gives riseto a financial asset of one entity and a financial
liabilityor equity instrument of anotherentity.

I. Financial assets

Initial recognition and measurement

Financial assets are classified, at, initialrecognition, and subsequently measured at amortised cost,
fair value throus.hother comprehensivei°'ome (OCI), anc:I fair value through profit or loss.

The c:l.ssification of financial assets at initial recognition depends on the financial asset's
contractual cash flow characteristicsand the Company''sbusiness model fo, managing them. With
the exception of trade receivables Lhat do not contain a signincant finaricing component or foe
which the Companyhas appliedthe practical expedient, the Company lnitiallymeasuresa financial
asset at its fair value plus, in the case of a financial asset nol at fair value through profit or toss,
transaction costs. Trade receivables th.at do not contain a significant financing component or for
which the Company has applied th{> pn!lclknt ~xpedie-nL are tooMured lit th~ tra~tlon p(ic:e
determined under lFRS 1S. serer to the tletountlng policies on Rei\tenuc r,om conuacts Wilh
customersabove.

In order for a fi11anciat asset to be cia.ssified and measured at amortised cost or fair value through
OCI. it needs to give rise to cash nows that are 'so(ely paymentsof principal and interest (SPPl)' on
the pfinc:ipal amount outstanding. This assessment iS referredto as the SPPl test and i:s performed
at an instrwnent tevet.

The Company's bl.Jsines$ mode-I for manaiins: financial a;$$eU refersto how it man.ages its tina.nckll
assets in order to jener.ate cash flows. The business ~ determine$ whether cMh flows. will
result from collectingcontractual cash flows, setting the financial assets, or both.
Purchases or sales of financial assets that require deliveryof assets withina time frameesta.bli$hed
by regulationor convention in the ~rket place (regular way trades) are reoosnisedon the (rr1de
date, i.e., the date that the Compa~ycommits to purchaseor sell the asset.

NOTES TO THE FINANCIAL STATEMENTS

... (OIJr'd

J. Summary of significant accounting policles • Continu~

lk. Financial instruments• continued

Subsequent Measurement

For purposesof subsequenlmeasure-ment, f1nanclt11assetsare classifiedInto:

Flnanclal assets at amortlS4)d cost (debt Instruments)

Th1s category is the mosL relevant to lhe Company. The Company rreewres (inanciaJ assets- at
amortised cost i( both of the followi~ conditions are met:

, The Hnanc-"'l asset ts held within a business model with the- obJectfve to hold nnanclal assets In
Of"der to collect conLrbCtuai ash Hows; and

, The contractual terms of the rin.anciat asset give rise on scecmed dates to cash flows that are
sctetv payments of pnncipal and interest on the prlncipal amount ouLSt.anding.

financial assets al amortised cost are subsequently measured using the effectfve interest (EIR>
method and are·subject to impairment. Gains and tosses are tecognised in profit or toss when the

asset ts dereco,gntscd, modified or 1mpafrcd.

The Company's financial assets at amortised cost includes trade receivables,rent receivables, cash
and cash equivalents and related party receivables.

oer~cognttiM

A financial asset (Of, where applic.abte, a part of a financial asset or part of a group ot Similar
financial assets} is primarfly derecognised {i.e., removed rrom the Company's statement of
flnarlclal posttton) wllef\:

, The rtghU to receive cash Hows: from th(.) asset have e-xpired or
• The Company has transferred its rights to receive cash flows from the asset or has assumed an
obUgauon to pay the received cash flows In fulJ wltboul rnate<il'Jt oetay to a third p;irty under a
•p.:,ss-thfo'4h' arr1!11tg<-ment; and either (a) Lht Company has l.l'ansfertt?<I substantially all lbt r1sks
and rewardsof the asset, or (b) the Company has neither transferred nor retained substantiaUy alt
the rlW a.nd r~ards of Lhe asset, bul has transf(.l'N'<'dcootrot of the esset when th(' C-0mpany has
transferred its righl.1 lo receive cash nows from an asset ot has entered tnto a pass·thn:,ugh
afrangetnenl, It cveteetes if. and to what extent, It has rct.afn~ the rlW and rcw;,rds of ownership.
When It has (l(>ilhe-ttrar1s!efr!ld nor retatned substantially all of the riSks al\d rewards or the asset,
nor transferred cenuet of tN!' asset. th(, Company contlnutos to r~gnls(' the trans-fei'red asset LO
the extent of its contll'\ulng Involvement. In that case. the Company also recognises an associated
Uabllity. The ttansfe<fed asset and the associated liability are measured on a basts that reflects the
rfghtsand obllgatloos that the Company has retait)e<I.
Continuing involvement that taxes the form of a iuarantee over the transferred asset is measured
at the lowe, of th<' orfginal carryingamount of the asset and~- maxlmcm amounl of coru:id('ration
that the Cotnp,:.11ycouldbe required to r~ay.

NOTES TO THE FINANCIAL STATEMENTS

... (OIJr'd

l. Summary of sls:nificantaccountingpollcles.. Contfnued

lk. Financial instruments .. continued

Impairment of financial assets

Further disclosures relating to impairment of financial assets are also provided in the following
notes:
, Oisctosures for significant assumptions Note 4
• Trade receivables, rent receivables and other financial assets Note 18 and Note 19

The Company recognises an allowance for expected credit losses {ECls> for all debt instruments
not held at fair value through profit or toss. Elli are based on the difference between the
contractual cash f!OW$due in accordance with the contract and all the cash flows that the Company
expects to receive, discounted at an approximation of the original effective interest rate.

ECls are recognised in two stages. For credit ex.posures for which there has not been a significant
increase in c.redit risk since initia.l recognition, ECLs are provided for credit losses that result from
default events that are possible within the next 12•months (a 12•month ECL). For those credit
exposure$ for which there has been a signiticant increase in credit risk since.init~l recognition, a
toss. allowance is requifed for credit tosses expected over the remaining lifeof the exposure,
irrespective of the timing-of the def a.ult {a lifetime ECL).

For trade receivables, the ComPc1,ny applies a $implified approach in c.alcutating EC.Ls. Therefore,
the Company does not trad changes in credit risk, but instead recognises a loss attcwance based
on lifelime ECLs at each reporting date. The Company has established a provi.s.ion matrix that i$
based on its historical credit loss experience, adjusted for fo,ward•looki.ng factors specific to the
debtors and t.tie economic environment using the toss rate model.

For receivables from related parties 1non-trade1, rent receivables and short-term deposits, the
Company ippties general approach in cal.;ulatina ECl.s. It Is the Company's policy to measure ECLs
on s.uch asset on a 12•month basis. Howe-vet, when there has been a significant increase in credit
rtsk since origination, the allowanc.ewill be based on the lifetime ECL.

The Company ccnsjders a financial asset in default when contractual payments are 365 days past
due. However, in certain cases, the Company may also consider a financial asset to be in default
when internal or external information indicates that the Company is unlikely to receive the
outstanding contractual a.mounts in full before taking into account any credit eohancements held
by the Company. A financial as.set is written off when there is no reasonable expectation of
recovering the contractual cash flows.

ii. Financial liabilities

Initial recognition and measurement

Financial Ii.abilities are classified, at initial recognition, as fin.anciat liabilities at fair value through
p<ofit or loss and (inanc.ia1 liabilities at amortised cost.

All financial liabilities are recognised initially at fair value and, in the case of payables, net of
directly attributable transaction costs. The Company's financial liabilities indude financial liabilities
at amortised cost.

NOTES TO THE FINANCIAL STATEMENTS

... (OIJr'd

J. Svmmary of ,19.nlficantaccounttns eenctes • Continued

lk. Financial instruments• continued

Ii. Fif\andal Llabilities - Continued

Subs·e,quent rneesurement

The measurement of financial lfabflltles depends on their cta.sslOcauon. as described be-low:

Flnincl3l lla.bHltles at amortise-d eea

Trade payables cta.ssified as financial liabilities are initially measured at lair value, and are
subsequently measured al amorttz:ed cost, using the effectfve Interest rate method With Lhe
exceptloo of non-current payables measU(ed at fairvalue. Other paya.blM thal are within the scope

of IFRS 9 ate suMCqueotly measured at 1uY1ortlzect cost.

Oer~cognftlon

A f"lnanc-ial liability isderecogr.sfsed when the obligation I.Riel' the liability fs discharged or canc-eUed
or expires. When an exktlng Hna.ncial U.1blt1ty is ,eptac&d by another from the same tel\der on

substantially different UYmsr or thit tMnS of tin existing tlabltlty art: substantially nlodlfled, such
an ex.change or modification Is ttt21te-d as tne d('rttognltlon ·of the original ll&blUty ·and the

recognltkln of a new U:ib\Uty. Tht' dlff<'rencc fn tne respectJvt! ca,rytng a,nounts is recogn(scd In

the statement of ptofit or loss.

31. EmployH benefits

Retirement benefits

Defined contribution plan
Employees are members of defined contribution p(ans. ObligatlOns for contributions to defined
contribution pension plans are recognized as an employee- benefit expense in profit oc loss in the
~rlodS durtni whk'h s~icc-s are rcndC<<!'d by crnployeM.

The Company makes provf$1on for retirement benefits In &c::cordance with the Pension RefOC'm Act
2014. The contribution by the employer and crnptoyee is 10% and 8% re.specllvc,iy ol th{> employees·
basic salary, housing and traMpo,tt eucwarces.

Defined benefit scheme
For defined benefit retirement benefit plans, the cost of pcoviding benefits is determined by
Cnckpeodeint actuaries us.Ing the P1'0Ject!XI Unit Cl'Cdlt h~thod, with actuarial valuations being
carried oul at the end of each reporlin~ periOd. Ren"M?asuremcnt gains o, losses· arisint Irom
rncreeses or cecreeses in the ptesll'nt vatue of the dcfl~d bl?nclit obli,g:atiOo because o( change,.
in actuartal assumptions and expertence adjustments ere immedlatety recogntsed in other

compreheosfve Income.

The defined benefll asset ot Uablllty rocognlSt?d In the statement of financial position represents

th~ present vetue o( the defined eerenr oblfgAtlon tess the tafr value or plan essets out of whiC:h
the obligations are to be settled. Plan assets ere assets that are held by a tong-term emptcyee
benefit rund ot qualifying Insurance potkies. Fair value is based on rnarxet price informatiOt'\ and
in the case of quoted securities, It ls the published bid price.

NOTES TO THE FINANCIAL STATEMENTS

... (OIJr'd

J. summary of sijOlficant accounting pcuctes • Continued

1m. Leasing

leases are classified as finance teases whenever the terms of the lease transfer .substantially all
the risks and rewardsof owf'l('rship to the tessee. All other teases are classified as o,perati.og teases.

The Company as lessor
Leases in which the Companydoes not trans.fersubstantiallyall the risks and rewards of owner$hip
of an asset are classified as operating teases.

Rent.al income arising is accounted(or on a straighl•linebasis over the tease terms and Is included

fn revenue In the statementol profit or toss due to its operatingn.aturG>.

3n. Equity reserves

Other reservesrepresentre-rneesurernentgain or toss on defined benefit plan.

lo. Current versus non•current classification

The Companypresents assets and liabilitiesin statement ot financial posit.on based on
current/non--cur·renlclassification.

An essec Is current when il is:

Eicpected to be realised or intended to be sold or consumed lo normal operating cycle

Held primarilyfor the purposeof trading
Expected to be realised wlthi.n twelve months after the reportlllj perk)d, or

Ca.sh and short-term deposits unless restricted from being eicchanged or used to settle a UabJlity
f0< at least twelve months after the reportk'lg period is presented as current asset, AU other assets
are classified as non-current.

A liability is current when:

It iS cxpttttd Lobe ~tUOO ln notmal operaUng<yc!c
It is held prlmarflyfor the purposeof trading;
It ts du~ to be seuted w·lthin twetve months after the reporting ~nod. o,
There is no unconditional right to defer the $ettlement of the \iability for at least twelve
months after the reportf.ns period.

The Company cias-1,ifies all other liabilities. as non-current. Deferred tax assets and liabiUties are
ctasslff.ed as non-current assets and Uabllitles.

NOTES TO THE FINANCIAL STATEMENTS

... (OIJr'd

3. summary of sfgnff",cant accounting poUctes • Continued

3p, Fair value measurement

Fair value is the pnce that woutd be- received to se-u 30 asset or paid to transfer a liability in an
orde-rty transaction betwtoen mat11.et partlcipanu: al the measurement date. The fafr value

measurement is based on lhe presumption that the transaction to sell the asset or transfer the
llabitity takes place either:

In the principal mc111(.et forthe asset or liability, or
In the absence of a prlnclpat market. In th~ most advantageous n,af'ket for the asset or
liability

The principal or the most advantageous market muu be acceuibte by the C.ompany. The faff vetce
of an asset or a liability is measured usfng the assumptions that marl(.et participants would use-
when pricing the asset or liability, a.swmingthat market participants act fn their economic best
interest.

A fair value measurement of a non·ftnanclal a~l 1..1il<M Into account a market partlcfp,atit's ability

to genefate ecOMmlc benefits by us:tt1g the asset in Its hf,ghesl and best use or by selling It to

anolt\~r mafkel parUC:IJ)Ant that would use th<- asset fn Its titth~L and best use,

AU essets and liabilities for whk.h f<1ir value is measured or disctosed in the financial statements
are categorised within the fair vatue hierarchy, described as follows, based on the Iewest Ievet
input that is sj.gnificant to the fair value measurement as a whole:

L.evet 1 - Quoted (unadjusted) market prices in active markets for identical assets or
Uabnltles
li?Vel 2 -vatuatton techniques fo,· ~k:h lhe towest tevet fnput that Es signlOcara to the
fa1r value, mcesoremerujs directly or lndlr~lly obsefvable
level l - Valuation Lechniques (or which the lowest level input lhat is significant tc;, the
!:air vetue meesorement ts unob'Servabi«!

For essets aoo liabilities that arc l'(!,C.Ognls~ in th~ flna"'ial state~ts on a fecuri'lng basiS, tht-
Company detennines whether transfer.s have occurred between lev-els In the hierarchy by re·
assessJns categorisation tbased on the towest leve4 input that is sl-gnifkant to the Fair value
measurement as .a whole) a.t the efld of each reporting; period.

The prepararron 01 the Company's financial statements requires management to make
Judgements, esumeies and assumptiol\'S that aft~ the tt'portcd amounts of l'evenuts, expenscrs,
assets a11d llabllltles, and the accompanying disclosures,and the disclosure of coodnge:nt tlabilltles.
UncerU.inty about these a.ssomptions and estimates c:ovtd resul.t in outcomes th,it,t require a
material adjustment to the carrying amount or assets or liabilities affected fn Future periods.

NOTES TO THE FINANCIAL STATEMENTS

... (OIJr'd

4. Sfgnfficant acc.ountina judgements, estimates al'td assumptions

Judgem~nts

In the process of applying the Company's ..ccounting policies, manasement has made the

following judg~nt.s,which have the most significant effect on the amounts recognised in the
financial statements:

Revenue from Contracts with Customers

The Company applied the followingjudgements that significantlyaffec.t the determination of the
amount and timing of revenue from contracts with customers

Identifying performance obligations in a bundled sale of equipment, installation and
maintenance services

Tt'!e Company provides fnstalla.tion and maintenance services that are either sold separately or
bundled together with the sale of equipment to a customer. The installation and maintenance
services are a promise to transfer services in the future and are part of the negotiated ex.qiang;e
between the Company and the customer.

The <,omp<)ny <let.ermined that the equipment, maintenance and inst.,;1llation servlces. are capable

of being distinct. The fact that the Company reguta,rty setts both equipment, maintenance a.nd
instatlat,ion on a stand-alone basis indicates that the customer can benefit fromeach of products
on their own. The Company also determined that the promises to transfer the equipment and to
pecvtde installation and maintenance are distinct within the context of the contract. The
equipment, maintenance and installation ate not inpuls to a combined item in the contract. The
Company is not providing a significant integration service because the presence of the
equipment, maintenance and instattation tog.ether in this contract do not result in any additional
0<comblt'led funcllonatlty as,d neither the cqufpt'OC'f'll, mefntenance nor the tnstattation modify or
custormsetht' other~

In addition, the equipment, mefntenence and installation are not h>i,hly interdependent or highly
interrelated, because the Company woutd be ebte to transfer the equipment even if thec.ostc,mer

decUnecl installation or maintenance and wou1d be aete to provide i:nstaltation/maintena.nce in

relation to products wld by other distJibutors. Consequently, the Company allocated a port,ion
of the transaction price to the equipment, maintenan<e servic.e aoct the installation $.ervic:es
based on relative stend-atcoe setlfflgprices.

Determining the timing of satisfaction of installation/maintenance services

The Company concluded that revenue for installation/maintenance services is to be recognised
ever time because the customer simultaneously receives and consumes the benefits provided by
the Company. The fact that another entity woutd not need to re•perform the service that the
Company hes provided to date demonstrates that the customer simultaneously receives and
consumes the benefits of the Company's pertcsmance as it performs.

The Company determined that the input method is the best method in measuring fl'Ogress of the
installation/maintenance services because there is a direct relationship between tne Company's

effort tr.e.. labour hours incurred) and the transfer or service to the customer. The Company

recognises revenue on the basis of the- labour hours expended relative to the total expected
labour hours to complete the service.

NOTES TO THE FINANCIAL STATEMENTS

... (OIJr'd

4. Significant accounting judiements, esrrmetes and auumptJons-Contlnued

Determining: the tlmfna of satisfaction of sales of equipment tnd other hardwareijevlcei

The Company conctoded U\at revenue for sates of hatdware Is to be recognised as a polnt In tlme;
when the customer obtains control of the equipment. The C-0mpa.ny assess ~ control is
tralliferred using Ole indicators below:

• The Company has a present right to .payment for the l)(Qduct;
• The customer has teaat tide to the prodtJct;
, The Company has transferred physical possesstOO of the asset and delwery note received;
, The customer has the slgnifkant risk$ and rewards of ownership of Ule product; and
, The customerha.s accepted the asset

Classfficationof lntercompanypaya·ble as non ..current payable

In determining whether intercompany payable cen be classified as non•current p,iyable, the
Company made some a,ssurnptions aod judg~ts resarding t.~ estimated future cash now,
discount rate- aod expected repaymentperiod. Basedon the modificationof repayment periodfrom
one year to three years, tne intercompnny payable due for repayment after 12 months was
reclassified to non-current.

Estimate$ and assumptions

Financial ln.struments

Provision for expected credit losses (ECL) of trade receivables

The Co,mpany uses, a provision matrix to calculate ECls for trade receivables. The provision rates
are based on days past due for groupings of various customer segments that have similar toss
patterns{i.e., by geography,product type,and C1Jstomer type).

The provision matrix is initi;,Uy based on the Company's hfstorical observed default rates. The
Company will calibrate the matrix to adjust the historica1 credit toss experience with forward-
tooking ·information. For ins,ance, if forecast economic conditions (r.e., gross domestic product)
are expected to deteriorate over the next year Ythich can lead to an increased number of defaults
in the manufacturins sector, the historical defaVlt rates are adj1Jsted. At every reporting: date, the
historical observed default rates are updated a.nd changes in the forward-lookingestimates are
3Mlysed,

The assessment of· the correlationbetween historical observed defaull rates. Ioeecast economic
conditklns and ECls is a significant estimate. The amount of ECU is sensitive to changes in
ctrcumstances and of forecast economic conditions. The Company's historical credit loss
experience and forecast of economic conditions may also not be representatill'e of cestomer's
actualdefault In the futu,e. Th!' 1(1forn1.:itlooabout the ECLi on U\C? Company's trade recetvabtesis
disCtOS(>dfn Not~ 18and29a.

NOTES TO THE FINANCIAL STATEMENTS

... (OIJr'd

4. Significant accounting judiements, esrrmetes end assumptions-Continued

Es:thnates a.nd a$$umptfons - Continued

Impairment losses on other financial assets

The measure.moot of lmpejrment losses under IFRS 9 requires estima.tes that a.re driven by a number
of factors, changes in which can result in different levels of a,llowances. The Company's ECL

calqslation.sare outputs of complex modets with a number of undertyin13 assumption.sregardingthe
choke of variable inputs and their interdependencies. Elements of the 'ECL models that are
cons~ered accounting judgements and esranates ill4;1ude:

, The segmentation of financial assets when lheir EC.L is assessed on a cottecuve bas-is
• Development of ECL models, inctudin,g the various formulas and the choice of inputs

, De-terminationof associations between macroeconomicscenariosand, economic inix,ts. such a.-.

unemployment tevels, Gross Domestic Products and inflation rate, and the effect on PCs, EAOs and
LGO,
• Selection of forwa,rd•lookingmacroeconomic scenarios and [heir probability weightings, to derive
the economic inputs into the £CL models

Defined benefit plans

The cost of the defined benefit pension plan and other post•employment medical benefits and the
peesenr valve of the penskln obligation are determined using actuarial valuations. An actuarial
valuation involves making various assumptkins which may differ from actual de\'e(opment-s in the
future. These include the determination of thedtseowit rate, future salaryincreases,mortalityrates
and future gratuity increases. Due to the complexities involved in the valuation and its lOffB-t.erm
nature, a defined benefit obligation is hig~ly sensitive to changes in these assumptions. All
assumptions are reviewed at each reporting date.

The di$count rate lS determined on the Company's reportingdate by reference to market yfeld:s on
high quality G,Qvernment bonds. The discount rate shovld reflect the duratioo of the Ii.abilities of
the benefit programme. See Note 27 fCK' details.

Review of the useful li'Ves of tangible assets

The useful Ufe of the Company's buildins was reviewed on 1 Jao1,1ary 2011 (date of transition to

IFRS) to 34 years ba$ed on the unexpired lease term on the land on whk.h the building is erected
aod mana,sement commitment to oo::upy throughout the periodof the tease. The useful lffe review

tS subsequenity done at every reportins financial year end. Ex.ternal valuers report was used in
detennining the value of the B1,1ilding as at the date of review.

Taxes

Deferred tax assets are recognlted for unused tax tosses to the extent that it is probable that
taxable profit will be available asainst vhlkh the losses tan be utilized. Significant m;inagem~t
juctsement is required to determine the amount of deferred tax assets that can be recognized,
based l.ij)()O the likely timing and the level of future taxable profits, (oget.her with future tax
~a,nning strategies.

NOTES TO THE FINANCIAL STATEMENTS

... (OIJr'd

4. Significant a,countlnsjudsements, esrrmetes end auumptJons-Cootlnued

Es:thnates a.nd a$$umptfons - Continued

Classtfication of lntercompany payable as non•current payable

ln determining whet.her intercompany payable can be classified as non-current payabte~ the
Company made some assumptions and judgements regarding the estimated future cash flow,
discount rate and expected repayment period. Based on the modification of repayment period from
one year to three years, the intercompany payable due for repayment after 12 months was
r.ecta.ssifted to non-current.

Sa. Standards issued but not yet effective

A numbe< ol new standards, amendments lo standards and interpret.atk>ns are effective for
annual periodsbeginning after 1 January 2020 and beyond, and have not been applied in
p<eP4rinB these financial statements. The Company intends to adopt these new ilnd amended
standatds and tnte-rptetl'ltlons, If appllcable, whe,t1 they become effecuve, The new and amended
stal\datds and fntetp(etatklns that are 1ssued, but not yet errecnve, up to the date of tssuaoce
of the company's tll\&.1lC1llt state-ments4re ltsted below.

1. Amendr.Ylentsto IA5 1 • ClMSllleauon ot ua1>1ut1esas Curtent Of'. N0tl•C\lrtt11t • Effective &te: 1

J&nua,y 2022
2. Amendmentsto1FRS l • Ref@ret'l,(eto the Conceptual Framework .. Effective date: t January

2022
l. Amendments to IAS 16 ·Property.Plant and Equipment: Proceeds before Intended Use·

arteeuve date: 1 January 2022
,. Amen4ment$ to IAS 37 - Onefo1.1s Contracts -ccses of Fulfilling a Contra<l - Effe<t1v'e date: 1

January 2.022

S. AIP IFRS I Rrst-Ume AdoptlOfl of lntttnatlon:il Flnanclbl Reporting SU1nd.'lrds .. Subsidiarya.s a

Hrn-llme adopter- Effective date: 1 January ~022

6. AIP IFRS 9 FinancialInstruments - Feesin the '10 per cent' test for derecognitlonot financial

Uabll!Ues. Effective date: t Janubt)' 2022
7. AIP IAS 41 A.stl<vlture • TAKbUOn in tafr vetee mt'IISU(t~nt~• Ef{('('Uve date-: 1 January 2022
8. IFRS 17 lnsur&nce Contracts· ttrecuve dete. 1 J&r\U&ty 2023
9. Amendments to IFRS 10 and IAS 28: Sale or Contribution of Assets betweenan fnvestor·and its

Associateor Joint venture· Effective date: lnderinitely pending the o.utcomeof its research
project on the equitymethod of accounting.

NOTES TO THE FINANCIAL STATEMENTS

... (OIJr'd

5b. Hewand amended $tandardseffectiveduring,the yeer

The, Comp.ally appUed several amendment, and inl('tpretatloos for the (1rst time in 2020. The
nature and effect of the changes as a result of adoption of these new accouotlng standards are
descnOed below:

Standards/ lmpa~
lnterprt!tatlOM

CQVld·19,Retated Ret'lt In May 2020, the IAS& ame,,ded IFRS -re teases toprovtde relief to lessees
Conce1sions • from app(yio11 the IFRS 16 guidance on tease modifications to re-nt
A,netdment to
concess1on,. arls~ as a direct ccoseqceoce of the covld,.19 pande<i,lc~ The
IFRS 16. amendment does-not apply to les.sors.

Thi> amendment was As a pra.:tk:at expe,d~t, a lessee may elect not to assess whel.her l'l aw1,ct.
19 related rent conc~ion from a tesscr tS a teese modification. A tessee
ett~t..1'1euete 1 Jun~
1hat ma~ thh: etecnce IKCM~ for any change In reese paymet1ts resullwtg
2020.
from the coYid•19 related rent concession the same way it would account
ror the change 1.11ider IFRS 16, u the ctiante ~e no1 a tease M(ldlrlcauo:n.

These ·amendments have no Impact on the fhanclal statements of the
Company,

Nnendments to IFRS 3 The IASB luued amendments to the definition of a business In lf'RS l Business
• oe1rn11~ or a
Business. Combinations to help entiOOS determine wl~thcl' .an acquired set of

Thl:S amendmMt was activities and assets is a business Of'" not, They darify the mlnimt.im
cffC'ctivo date 1
Janua,y 2020 cequffemP.tlt:S for II bu$1Qe$$. ren~,e the as~sment of whe1her mal'ket

~'~ll~,partkipaots are capable of replacing Mr'/ missing etements. add guidance to
N!'lp e,,Utle$ a~~ whelht:r an 11cqulrN ptOCess IS ~,row the

definitions of a busioessand of outputs, and introduce an optional fair valJJe

(OhCentfbllon u:.n. t4cw lllu$.t1'btlvt elCampt~ were provided along W1th the

amendments.

Too a~nts clarify lhat to be considered a. business, ;,n intewrat~ set

of ~tlvlties end IISSCts nut tnctvele, &t. a mil,lm1,1m, an ~l "nd &

subsuantive process that together signfficantly contribute to the ability to

crtate output. Thty also cte.firy W1 a l>.i$fflJ ca.1 exist without tnctudlng
eu of U,c inputs and precesses needed to crecte outputs. Th.'tt is, the inputs

and processes applted to those-fnputsmusrhave 'the ability toconu1b.ne

to t.fM.' trt'atioo of outputs' rather th.in 'the ability to create-outputs',

The -,mendmenu. mu;l be 11il)plit:d to 1,ron$&et.l(11'1:. U\llt art either tMl"HS

combinatbls 01 asset acquisitions for which the acquisition date ~ on or
lift tr the bf:tif'll'll"t ot the l'ir$t onnvttl ft"p()tUna petio<I ~inflfr4 o,, Ot \'lfter

I January 2020• .Consequenuy, entitles do not have to revisit such
transactions that occurred in priof periods.. Eatlier apptkatioo is pennittcd

and must be d'5dosed.

These amendments have no impact on the r.n.ancial uatcmcnts of the
Company.

NOTES TO THE FINANCIAL STATEMENTS

... (OIJr'd

5b. Hew and emended standards ettecttveduring the year• Continued

StandaTds/ lmpM:t
lnterpretadoM

The Conceptual The revised Conceptual Framework fot Ffnanc:iat Reponling (lhe
Framework for Con«'ptual fram{'WOfk) is not a stanG'lrd, and none of the concepts
Fll\arvjatRef)()l'tlng.
ovietl1de lh0$.t' In any st&OOatd or any reonremenu In a standard. 'rne
Thts ameridment was purpose of the Conceptual Framework is to as.sist the Board In developlnj
effectivedate 1
Janua,y zozo. stenderds, to help prepatefS ~lop ((}iUl$ttnt a«ounUnt poHc~ it
there is no appUcable standard In place al>d to assist all parties. to

unders111r1d &M lnt«Pret the standards.

The IASB ts.sued the Conceptual framework kl ,1,arch 2018. It sets out a

(.()(l\prenenslve set of coo<:epts lo, linanc.ia,I repo111ng, stlU'ldard setUl'lg,
guidance for preparer;; in developing coosistet1t ilCCOUnting policies: and
au:1sra1\Ce to olhef~ 1,, their eltoru to understand and Interpret 1.he
standards.

Tho Conc«ptu~t Fr~k. incluclc5 S<>mC' ~ conctpt.,., provkfes

updated defln!Uoos and recognition criteria (or assets and llabilft1esand

d.,rifics )oC)(nC imPOJblnt ccecects. n i$ \\rtMied w, eleht chl1Dtct$. M

follows:

Chll4)tcr 1 • Tut> ob)C'ctive o( fini'lncii'tl reporl.ina

Chapter 2- O,uatltadve characterls~1csof useful fhanclal tnformat.lOO

Cha;:,ter 3- Financial !.tatements and tfle reporting entity

Ch11Ctet .,a - The ~emt,)tJ ot fllWlt.~I st.av:rnen~

Chapter 5 - Recognition and derecognition

Chi'tpter 6 • MC'asuremctnt

Cha.pier '1- Presentation and disclosure

Chapter 3 .. Concepts of capital and ca¢tal maint<"Oanc<.'

The Conceptual Framework is accompanied by a Sasls forConcb.,slons. T'he
Board htls also hsvcd ., separate accompanyin9 document, Amendments
to References to the Conceptual f'ramework In. if PS Standards, wtikh sets
out tht' amendments to .:,ff<.'Ctcd sumdards in wderto updalc references to

""'

Conc('ptual Framework, In moot ceses, ee standard fefcrenccs art>
updated to ,efer to the Conceplual Fram·ework. There are exemptions In

deV1!fop-,,9 .Kcounting po(icics for regulatory account bal.antts fo,· two
standards, namely, IFRS land tor lhose applying tAS a.

The changes. to the Conceptual Framework may affect the applkation of

lfll.S in Sitwtl011swhere no ,uin<.1;:11'4i,ppUes lo" PbttiC\.lla, t.,~cti¢no,
event, Th.ls amendment didn't Impact the Company.

NOTES TO THE FINANCIAL STATEMENTS

... (OIJr'd

5b. Hewanda~ded standards effectiveduringthe year• Continued

StandaTds/ lmpM:t
lnterpretadoM

lnter~t Rate On 27 August 2.020, the IASli published lnter~t rete benc.hm11.nc reform-
Benchmark Refonn •
Amendments to '°'phase 2 amendments toIFRS 9, tA.S 39, IFR.S 7, IFRS 4 and IFRS t6, Thii js

ertectfve atu\ual pedom b~lnnlng 1 January 2021.

IFRS 9, IAS 39 and The amendments pro\l'lde temporary reliefs whkh addres.s the finiltlClal
IFRS 7. rePQn.1ng effecu wl-.en al'l lnte,ba1,k offered rare (IBOR) Is replaced with all
altefnative roear1y mi-tree inter~ rate (RFR),
This amendment was
The am,et1dment$ l~Lude a. pra.et1Clll te-)(pedlet'lt to r~r~ coi,trac.tubi
effecttveeete 1 changes or chang_es to cash nows that are directly required by the reform
to be tr~ted M ch,!111~ to a floatblg Interest rate, equtva.tenl to. a
January 2020. movement in a mattiet rate of interest, tnherent iR all~ the use of this

pr~tlclll e~pedfie1'lt 1:5 1he re<)Uiremenl that 1he- 11aMift-iM (ron, an IBOR
benchmark rate to a.n RFR talces place on economically equivalenl bas.is with
ooval~ l.ra.t1$ftf ha"1n!l occuereu.

Any other changes made at the same time. such as a change in the credit
1Pft'ad Of miturity dete are essesscd. If lht"V MC :;1,1b$t.1ntJ.il, llic iratrumcnt
Is derecognl:sed. If they are not substanuat. the updated effective inleres.t
rete (EIR> Is uK'd to fC'c-.,kuli.\l.C ~ car'J}'inJ .imount of ue fillilll<:ial
Instrument with an'I rnodfftcation gain or loss recognised In profit or toss.

NCR does not have any financial instnJmoots. tlnked to tBOR al 31 December
"2020 and therefore the i'npact ls not escecred to be material. ti.;ina~nt

will continv~ to MSCSIS the im~ct 11oit1i•forw-,rd."

The amendmenu to lFRS 9

The amendments indude a n·umbff of reliefs. \lfflkh apply to au fl~fng
celMicJnSh~ \Mt ere dirceuy .!lf(ected by the 1n1erti1 rete beflchm~rk
reform. A hedging retationship is affected if the reform givt>S rise to

Vl'Certl!linti~ t,!>Oul the timing and/or M'll)I.Af1t Of btne;hm.11rk-blised ¢n$h
flows of the hedged nem.or the bedg;!ng instrument.

ApplJC.Otlo,, of the- l'~'efS IS ~to,y. The 01')"t ucee rtliets PI\Wlde (QI~

• The assessment of wtle{her a foreca.st transaction (Or' component
thereof)~ highly p,obable

• As.scssini when to rcdawfy the amol#\t in the ca$h flow ~ reserve

lO l)l'Qfil ~nd {OS,$

• 'rhe assessment of the economfc refal100$hlp between the hedged item
and the hedging instrument

NOTES TO THE FINANCIAL STATEMENTS

... (OIJr'd

5b. Hew ar,d amended $tandard$ effective durlnt the year· Conttnued

StandaTds/ lmpM:t
lnterpretadoM

The amendments to tAS 39

The co,r~PQOdirl.i omc:-ndlnenu 11,1e con1-~u:nt with tho$c- fo, IFRS i;, but
with 1he fottowlngdUte,ences:

• For the prospecth•e as.ses.sment of h!?d~effectivenl'ss, it ~asslJfled that
the benc:hmori( on wtlich the hedied <::l»li n~s ai·e besed (wtlctheror not

It Ii: cont.ri.e1u11Uy ipeclfll!td) and/(1( me be1'1Chmllfk oo which the<ash
flows of the hedging 1rtStrume.ntare based, are not altered as a reMt of

IBOR reform.
For the retrospective ;messmenl of hedge eftectweness, to allow the

Jwdle to p3$S the <1~1CSsm~t even if t~ ectuet re,ult.s or UlC hed~ nre

tempota/8y out:.fde the l!O'f:·125$ l'.'ll'lgc!'. durfnt the period of
uncertainty arisW\! from IBOR reform.
• For a hedge o( a beochmillk portion (rad'lef than.a risk component ul\der

tFRS 9) of intel't,t rate risk thot is affccttd by IOOR rercrm, the

requ&'em,e(lt th11.t rne C)<XOOI\ k s.e,para1ely ldent1Uab(e noeed be nlt'l onty
at the lnc,pt\Ol"I of the hedge.

These amendments have no impact on the fNndat statements of the
Company.

NOTES TO THE FINANCIAL STATEMENTS

... (OIJr'd

Su1ndards/ Jmpac.t
lntqrprOtf.U0n$,

Amendmentsto IAS 1 In Octobef" 2018, the IASB issued amendments to IAS 1 Pr.esentation of
and tAS 8 .. Definition or
Mater~. Fin/1.1\Cllll Stat«l'lenl.$ and IAS 8 10 align the definition of 'rnn1er1a1• across
the standard$ aOO to clarify certain escects of the c1er1nition. The new
This amendment was ~llnltiOO ~1ales that, 'lnfe..matlon ts me.ten.at II omitting, mb,taUrtg_ or
obs.a.ring it co~d reasonablybe expectedto influence decisio~ that the
errecuvedate 1 pritn~,y users ot ~al purpooe Uf\llnclal st.11temei,u m.oike (ltl ee ba$1$ of

January 2020 those financial \tatemef\ts, which provide financial Information about a

sceeme re,pQftlng enlllY·' Tilt' ame-Mfne,," etarlfy that mate<lallty wlU
depend oo the nature ot magnitude of information, or both. An et1Uty wlU

ooed to assess whether the lnformaUoo, e1thef indTYiclually « in

combinalk>n wilh other 'informattOn, b mat,:rilll in the a,ntel(t qf the
flnandal-stat.ements.

The af'l\leQdments explain that informationis obsc.ured if It is communicated

in a wiJ'j 1h11t would hll\"e a ,imil.lr cffcc:t M omitti.,_ or mii.1,talinv tht'
lnformatton. Material information may, for Instance, be obKured tf

infomiation rcti<)rdini a m11tcrial item, trans&ction or eeer eveu Es

sceueredthroughout the f1nanciatstatements.« d1sdosed usinga langu~e
that is va&uc o.r undcar. Matcriat information can abo be obKUl'f!'d if
dlss1mll,u Items, transactions or other events are 1napp,opri,nely

<l$VCV<'lti,d, or COIW(!rSCly, if simililr itwns arc in.ippcopriatcly
disaggregated.

The amendments replaced the thresllold 'could influence', which suggests
1ha1, <iny i>otcnua1 lnftucl'ICc or u=-c11 mi.ot be c0twldCf'td, WIOJ ·c01.1ld
reasonablybe expected toinfluence'in the definition of 'material'. In the

"~ de-finitk>n, thcrct¢rt, it ii.ctorlfled th1tldtiematcl'lality M$~mt:nl
will need to take into account ooty reasonably expected influence on
«onomk: de<:bl(W'l$(>( prim3ty tN:1'$.

These amendmeonts teve no Impact on the hn.andat sreremenu ot the
Com,~n·y.

NOTES TO THE FINANCIAL STATEMENTS

... (OIJr'd

6. Revenue from contracts with customers 2020 2019
Ol'OOO
An ana\ysjs of the entity's revenue ts as follows: •·ooo

Financial Service Group 3.224,061 3,909.884
World Customer Services 1,901,447 2, 157,791

5, 125,508 6,067.675

Disaggregatedrevenueinformation
Set out below is the disaggregation of the Company's revenue from contracts with customers:

For the year ended 31 December 2020

Financial Service World customer

Group Services Total

+l'OOO t+'OOO t+'OOO

Type of aoods or services 2,872,842 1.901,447 2,872,842
Sales of equipment 62.384 62,384
Sates or hardwaredevkes t.901,4'47
lnstallat10tl S('(Vlces 196,327 196,327
Mainteoance services =······· 1,901,447
........................9..2..,.5..0..8.
Service warrnnty 92,508
J..,2..2.4...0.6..1.
Tctet revenue fr()ITI contracts .5..,..12..5.,.5..0.8. .

Type of goods or services for the year ended 31 December 2019

Sales of eqefpment Financial Service World C'Ustomer
Sate.s of hardwaredevkes
Installation ~Ices Grovp Services Total
Mainteoance. servkes
Service warrrinty f+'OOO f+'OOO t+'OOO

Total revenue from conu-a«s 3, ..83,954 3.483,95<
75,655
75.655
238.089
238,089 2,157.791

2. 157,791 Ill, 186

112, 186 6,067,675
··································------
z. 157,791
3,909.884

Pffiormance obligations
Information about the Company's performance obUsatiOJls are .summarisedbelow:

Sale of equipment .and hardware device

The performanceobtfsatlonis satisfied upon delivery of the equipment and paymenl is generally
doe within lO to 90 ctays from delivery.

In some contracts, a one-year warraflry beyond fixing the defects that existed at the time of sale
is- provided to customers. The- warranty is accoonted for as a $eparate performance oblia:ation al)(I
a portion of the transaction price is allocated. The performance obligation for the warranty service
is satisfied over one-yearbased on time elapsed.

NOTES TO THE FINANCIAL STATEMENTS

... (OIJr'd

6. Revenue from contracts with customers• Continued

ln$tcdtaUonand malntenarw=eseevtces

The ~rformance obti3ation is sa.tJsfi.ed over-time and payment •s seneraltydue upoo completion
of installation/maintenance and acceptance of the customer.

The Company has applied the practical expedient in paragraph ·121 of fFRS 15 and did not disclose

information about remaining performance obO,gatK)ns that have original expected durations of one
year or less,

Contracts. balance 2020 2019
Trade receivables (Note 18)
Contract liabilities (Note 25) 977,875 1,001,749
509,2f9 1,0·13,467

Trade recelvebtes are non•interest bearing and are generally on terms of 30 to 90 days.

In 2020, !!40,483,003 (2019: N220,897.155) was recognized as provision for expected credit
tosses on tradereceivables.

Contract liabilities include advances received from cu.stomers in respect of projects.

7. Cost of sates (as per function) 2020 2019
M'OOO Ol"OOO

Allowance for slow moving inventory (Note 17a) 70,311 231,421
Depredation (Note 16) 61,850 61, 151
Oirec;.t cost 3,971,823
4,216,088
Salaries and wages (Note 34) 729.346
ezz.sos
4,833,330
"''"'·coo-• s,·186, 16s
Direct cost representsthe cost of purchasing the ATM and other equipment.
..... is-••

8. Distribution ·expenses 2020 2019
M'OOO
Sank cberges •ooo
Fuel and motor runninj 558
1, 119 5,599
Lejalf ees 2,931 56,231
12,870 2,266
Promotion and advertjsement 1 •911 ~.560
Rent aocl rates 5,4.46 15,266
Security 16,716 15,835
Tra"elline; and accommodation 15,13~ 198,949
Withholdin9 tax f)(OVtiion (Note t8c} 187,694
Write-off of unrepresented withholding tax credit notes

56, 131 486,958

NOTES TO THE FINANCIAL STATEMENTS

... (OIJr'd

2020 2019

...ooo ... ooo

9. Impairment (write..back)/ loss on receivables

Trade receivables !Note 18bl (180,413) 161.546
Rent receivables (Note 19) (4,795)
Short-term deposits (Note 29c.2(iv)) 103 12.189
lnteroompany recefvabtes iNote 29(:.2(v}J 80
l,814 181
10. Administrative expenses
······-·······················- -·············

······-(181.l91) 173,996

Audit fees 10,000 10,000
l.344 3,344
Insurance· 8.288
Legal rees 37,407 17,753
Miscellaneousand otoer expenses," 13,825 7,716
Office running expenses 5,025 14,551
Professional fees 5,446
Repairs and maintenance 5,288 10, 1 IS

Retirement benefits (Note 27b(i)) 19,366 11,017

Telephone and internet 16, 193 21,522

Back duty essessmenr" ································- 200.955

115,894 -·············

........305.261

,,.
"Miscellarl('oosand other expenses inc.luck: expenses relatingto postases, offl<e supplies i!Od other
misc.ettaneo',.1$cherges.

...Sack duty asse»ment reli!ites. to additional assessment as regards vatee added tax and withholding
tax from the tax audit of year 2008 to 2015 l)y Federal Inland Revf:'flue Service.

n. Other operating income 20?0 2019
...-000 ...000

Rental Income 32,026 39,923
Investment locome 1.202 21,937

Sale or scraps 911

33.228 62.771

Rental/investment income represents incomeearned from wblet of some floors of the Company's
bufldina and lncome from investment in short-term deposits.

2020 2019
.. '000
.. ·ooo

12. Foreign exchange loss ·176,259 30,580

NOTES TO THE FINANCIAL STATEMENTS

... (OIJr'd

13. Fairvatue loss on ncn-ecreeer intercompany payable 2020 2019
Ol'OOO
Fair value loss on non·curre,nttntercompanypayable ...ooo
3,983
(Note 2-4b and Note 29e(lv)) 357,198

14. locome tax 2020 •2·o01o9o
..-000
14a. Statement of profit or loss and other comprehensive income: 90,738
86.044 21,499
Current foc.ome tax: 6,301
Company income tax .3..5.0...,0..8..7...
Education tax ···-·····-······
Adjustment in respect of previousyem under provision 462.~24
92,345
Deferred tax; .4..3..0..,.8.4...1..
Relating to origination and reveesej of temporary differences ···-·····-······
89~, 165
Income tax expense reportedin profit or lOM ···-·····-······
Relating to ttem recognized in OCI during the year: ..............
Net gain on ac.:tuafial loss ('Note28b(ii}) 92.345
893, 165

Corporation tax t$ ulootate<I at 30 pee- cent 120·19: JO per cent) of the estimated tax~ble profit for
thE" year based oo the provisions.of the Companies lncQnle Tax Act, CAP C21, LfN, 2004 as amended.

Also, lhe Company ts not ttable to m1nimurn rex under Sectfoo 28A of the Company Income Tax
Management Att becaus.e more than 25% of its share capitaJ ~ imported but exocsed to minimum
tax under the Frnence Act.

The c_harge for education tax of 2 per cent (2019: 2 per cent) ts based on the provtstons of the
Edu<•.tion T•x Act, CAP E4, LFN, ?004.

The adjustment in respect of previous year under provision In 2019 relates to additional
assessment as rejards. company income tax and education tax from the tax aodit of year 2008 to
2015 by Federal tnlanc:J Revenue Service.

NOTES TO THE FINANCIAL STATEMENTS

... (OIJr'd

1 •. Income ta)(II Continued

1<tb. Reconclllatlon of income tax expense for the year to the accountint profit as per profit or
loss:

2020 2019

•ooo .. ·ooo

Accounli~ toss before taxation C198,785) (56,497)

orTax al Nige.ria's statutory f.ncome tax rate 10% (2019: )OS) (59,636) C,6,949)
217,615 348, 158
Non•deductib(e expenses (71,935) (240,471)
Non-taxable fncome
Education tax 6,301 21,499
Adjustment in respect of previous yea.ts under provision 350,087
Relating to orlg1natfon and reversat of temporai(y differences 92,345 430,841
C46~)
lnco,ne taxexpensereported In profit o, loss 893, 165

Effective tax rate C1581%)

14C, Current tax payable

At 1 January 459,233 (3,091)
Charge for the year 92,345 112,237

Payments during the year (38,312) 350,087
(423,969) 459,233
UtlUzaUon ol wilhholdln.g tax credit note
Adjustmoot tn respect of previous years under provrSlon (Note 14a)

At 31 Oe<.embcr 89,297

14d Oef~red LU asset 410,841

At t January 430,841
Expe.Cll'd crectt lOS:S (430,841)

At 1 January (restated)
Deferred tax related to items recognized in profit or loss
Deferred tax ,-elat<?d to Items (ecogntzed fn OCI dufini the yf!ar:
Net gain on acrueriet gain (Note 27b(il))

At 31 oecembe1

Deferred tax assets and UabiUt$esare offset wbere ~· company has a tegally enfo(cea.bleright to
do '$0.

NOTES TO THE FINANCIAL STATEMENTS

... (OIJr'd

1 •. Income tax .. ccetjnued

Th.efoltow1og Is the analysis of the deferred tax as1ets/ (Uablllttes.) arter offset presented In che statement

of financial position:

2020 2019
..-000
.. ·ooo

Oeferre-d tall. llabllllles (147,4()6) 1430.841)
Deferredtax assets
147,406 430,841
Net deferredtax asset --··-··--··--··························-------

During the year, the unrecognlt~d deterred tax. assets amounts to H282,068~6SS (2019: N101,319,S2.1).
The cleferred tax amt f0< lhe Company was not recognised based on prudency. See below thebrea}(down:

2020 2019

..·ooo ...ooo

tmpairment on withhl)!ding tax- receivables 316,644 296,854
Impairment on rent receivables
2S,624 26,893
Impairment on trade and other receivables
Impairment on slow moving stock H,955 66,269

Provision for gratuity 60,413 54,883

Provision for tegal claims 54,43 .. 41,050
Impairment on fixed deposit
Impairment on interc;ompanyreceivables 11.161
Property, plant and equipment
33 35
Exchange difference
1.220 155
Net deferredtax asset
1147,406) (157,709)

(53, 110) 1227, 110)
···········~·······~·······~·······~·····-------

282,068 101.320

15. loss per share

Basic loss per share (LPS) is calculated by df'liding the net toss for the year attributableto ordinary

shareholdersby the weighted avenge number of ordinary shares outstandingduring the- year. Oiluted

LPS is calcutated by adjustingthe weighted average number of ordinary shares outstandingto assume

eceverslcn of all ditutlvt pctenuet ordin"'l'Y snares. The> loss and shar~ data used in th~ catcut:ilionof
b:islc: .:,nd dltut<-d eAfnlng,s pet share .:,re:

2020 2019

los.s attributable to ordinary equity holders ~000) (291, 130) (949,662)

\Veightedaverage number of ordinary sh.ares for- basic/ diluted EPS ('000) 108,000 108,000
(8.79)
Basic/ diluted loss per .share (Naira) (2.70)

Bask and dilutedLPS are the samebecauselh(tfe isno dilutivt' instrument asal ,~portingdate.

NOTES TO THE FINANCIAL STATEMENTS

... (OIJr'd

16. Property. plMt and equipment

Cost: Furniture Suildina Compu~r Plant Work•in• Total
At 1 Jtinua.-y 2019 and ~pmf!nt machinery Progrtt\-
Additions ... ooo +>'000
DlS-POsal fittfnp ... 000 and ... 000
660,080 equipment 976,274
Al. 31 December 20t9 ...ooo 62.,844 13,)58 33,284
Adc'fitlons. 6-60,080 1),601 +>'000
O~posal 34,409 8,Asa 13,358 ·-··(~2·.·6-6-8)
Transfer 11,7791 1889/ 2-16,941 640
32,630 )3,)58 6.32S 1,006,890
At 31 Oecember 2020 681,)26 7S,5'56 (13.358) 22,<44&
32,630 5,430 225,266 640 (6,568t
Depred11t)On: t69, 58-1 7,490
At January 2(H9 29.8"5 20,097 (6,568t ._.....-...
Charge for the year 1,231
Writc-orf 189,681 74,418 232,756 -t-,0-2·.2-,1·7·0··
(1,779'1 21,676
At 31 December 2019 29,25? 35,.316 15t,808 386,513
Charge fOf' the year 211,357 '14,726 25,097 61,lSt
Ois._po~al 1, 161 12,6681
18891 176,905
At 3 I Oecember 2020 30;118 24,613 <444,996
19, 153 61,350
14,.39S 201,523 16,568)
16,5681
500,278
56,980

Cartytngamount: 2,212 470,969 17,438 )t,13) 6'0 ,22,4192
At 31 December 2020 3,373 470,399 26,403 '43,361 13,358 561,894

Al.31 De"eemberlOt9

16a. lrnpai.rmen1. lO'SS&.S r'ecognis&d in the yeM
No impairment loss has been recognized during the year ended 31 December 2020 as none of the
property, plant and equipment has suffered impairment (2019: Nfl).

16b. Assets p.ledged as security
The Companydoes not h<')v~ any asset pledged as secorny for tlabillUes as at l1 Dcc~ber' 2020
(2019: Nil).

16c. Contractual commitments
There b no other contractual convnitment forthe purchase of items of property, plant and equipment
that has not been accounted for.

NOTES TO THE FINANCIAL STATEMENTS

... (OIJr'd

t 7. Inventories 2020 2019
F1nl"1e<l eQUlpment
Service parts (rev«lrkable) ...ooo ... ooo
Service parts (non•reworkable)
52,6n 1,401.698
Allowance f°' slow· moving inventory (Note 17a) 759,047 801.648

63,924 56,442

875,648 2,259.788
(188,789\ (182,944)

686,859 2,076,844

The vatce of inventor~s recoenlzed 1n profit or toss during the year ended 31 December 2010 amounted

to:!:!3,056,447 (2019: !!:4,403,781\.

2020 2019
111000
..·ooo

17a. Allowance for stow 1T10Ying inventory for components is as follows:

Sefvlcepans (reworkableI 166,650 149.006
Se<Vice perts {non·reworkablel 22,H9 26.981
Finished equipment 6,957

Movement in illowance fOf slow moving inventory durfna the year 188.789 182,944
isasbetow:
182,944 225,694
At 1 January 70,311 131,421
Charge fOl the year (274, 171)
Scrapped durlna the year• (64,466)

At 31 Oec.em~r 188,789 182,9-44

"Scrapped during the year retates to obsolete inventory items written off.

20W 2019
111000 ...000

18. Trade and other recetvabtes 1,222,646

Trade receivables 1,018,359 ·1-2·20-,~8·-97..).
Provi5kin for expected c<edit loss (liote 18b)
----(40,.84) 1,001,749
Withholding ta)( receivable {Note I&:) 977,875 237,014
Rent recefvabte (Note 1Q) 316,635 12,640
Ooe from related patties !Note 30c(h)) 7,364 4),761
Value added tax (VAn recoverable 363,865
.......3.9..,.7..0..6..
.................
1,334,870
1,665,739
========
=====·===