Årsrapport 30700228 EY Godkendt Revisionspartnerselskab Værkmestergade 25 Postboks 330, 8100 Aarhus C 2021-04-01 2022-03-31 2020-04-01 2021-03-31 2022-05-25 35398910 Designit A/S Bygmestervej 61 2400 København NV 2013-05-31 København +45 70 27 77 00 www.designit.com EY Godkendt Revisionspartnerselskab 30700228 Værkmestergade 25 8100 Aarhus C Danmark +45 73 23 30 00 2022-07-15 Nithya Jayakumar Regnskabsklasse C, stor virksomhed Revisionspåtegning Grundlag for konklusion Konklusion true 2022-05-25 2022-05-25 CaseWare Working Papers Copenhagen Nicolas Gregory Antony Parmaksizian Managing director Kjersti Krokmogen Lund Director Joaquin Enrique Guirao Sagi-Vela Director Rajan Kohli Chair Satyaki Banerjee Kjersti Krokmogen Lund Aarhus Claus Hammer-Pedersen Simon M. Laursen State Authorised Public Accountant mne21334 State Authorised Public Accountant mne45894 267271000 325089000 179475000 285534000 -117989000 -35467000 -5853000 -1158000 -5592000 1634000 -121429000 28168000 379133000 180067000 178506000 74701000 -71596000 92982000 -10390000 -16422000 4809000 6676000 -11274000 12388000 Total cash flows Total cash flows Total cash flows Total cash flows Total cash flows -43.1 -59.6 -42.2 -19.7 135.6 52.9 86 146.4 Current ratio Current ratio Current ratio Current ratio Current ratio 47.8 10.4 47.1 41.5 -115.7 -178.3 -95.9 37.7 464 493 200384457 186441203 50083067 39540090 24084364 0 0 0 58570660 47076398 25251511 20685761 165898161 139364805 24831556 18854329 186458418 180538432 51646368 32854028 33872422 128065331 1605714 1693161 116812 627060 0 3082965 -54549491 -169866018 -28420526 -18775825 0 0 -28848374 -155475189 7019539 11118483 5744046 6186968 12872607 12276698 8987909 8399568 -60402559 -171024233 -60512763 -176463614 -377280 5699940 -487484 260559 -60025279 -176724173 -60025279 -176724173 54238389 76681860 0 0 54238389 76681860 0 0 31966396 26554652 2836144 3767063 3355267 3020364 135736 355646 4274064 6117051 139862 188355 39595727 35692067 3111742 4311064 0 0 139854966 162516691 1400029 3600382 0 0 1400029 3600382 139854966 162516691 95234145 115974309 142966708 166827755 19509522 19335582 0 85981 7446354 14143580 0 0 22318340 13051579 15638407 11746216 855792 765983 0 0 6065 353871 0 497621 5817588 5123364 22316 3577001 55953661 52773959 15660723 15906819 24811850 20002385 2749323 3614604 80765511 72776344 18410046 19521423 175999656 188750653 161376754 186349178 10000400 10000300 10000400 10000300 74090114 9710380 74090114 9710380 84090514 19710680 84090514 19710680 32329318 28500162 3222171 4263398 0 2870630 0 969619 32329318 31370792 3222171 5233017 380704 2057947 0 0 9370966 5254333 3128158 2132841 16701063 102753508 64319413 155624570 33127091 27603393 6616498 3648070 59579824 137669181 74064069 161405481 91909142 169039973 77286240 166638498 175999656 188750653 161376754 186349178 10000200 168505334 100 22315400 -176724173 0 4386181 10000300 9710380 100 124099900 -60025279 0 -305113 10000400 74090114 10000200 168505334 100 22315400 -176724173 0 4386181 10000300 9710380 100 124099900 -60025279 0 -305113 10000400 74090114 -60025279 -176724173 40620016 134822825 14157776 12155937 -5247487 -29745411 7019539 6242241 12089068 7400457 -467089 6109481 -9849927 -37013108 3584273 1406612 2200353 528475 -1383920 -878137 -9866845 0 0 38852711 0 16600916 95319207 0 2870630 0 124100000 22315500 16043318 44567295 4809471 6676050 20002385 13326335 24811856 20002385 161778310 152828438 49126711 30556069 5284545 6077263 1558952 1309667 13037122 15616621 37426 38058 6358441 6016110 923279 950234 186458418 180538432 51646368 32854028 275 278 34 31 176059 114327 1600854 2591792 46866 700112 0 31 6796614 10304044 4143192 3595145 1309044 910662 3229008 4613169 1575002 1682143 5179095 3424382 9988561 9683893 579806 362017 0 2707331 0 0 -89809 4569938 0 0 689737 0 119739 611093 977208 1577329 -377280 5699940 -487484 260559 593940975 593940975 517259115 22443471 539702586 54238389 42473848 12319240 18083173 1571799 0 0 24505761 3417014 388927 20896546 5257383 5046996 47654862 10478871 13425104 15919196 9298876 11966122 1008998 0 0 8073059 2465177 2162521 9312787 4640449 4977603 15688466 7123604 9151040 31966396 3355267 4274064 5921537 2031694 265532 510794 -178151 32411 0 413413 0 0 1854186 62500 6432331 412770 235443 2154474 1676048 77177 218035 -181994 3694 1223678 316257 66273 0 1533277 51563 3596187 277034 95581 2836144 135736 139862 3600382 2200353 1400029 1400029 797641633 36756382 624126 833773889 -635124942 1516372 -55755235 50163487 -21280485 24327884 139854966 7301311 16176715 0 0 10000200 10000200 10000100 10000000 100 0 100 100 10000300 10000200 10000200 10000100 -765983 -5368947 0 0 0 0 739438 683599 518275 469967 122388 71350 98775 142282 -60025279 -176724173 33872422 128065331 -1271806 0 -7019539 -6242241 -12872607 -7400457 -377280 5699937 0 -100659 4499624 23341337 -9658152 11185400 Today, the Board of Directors and the Executive Board have discussed and approved the annual report of Designit A/S for the financial year 1 April 2021 - 31 March 2022. The annual report is prepared in accordance with the Danish Financial Statements Act. In our opinion, the consolidated financial statements and the parent company financial statements give a true and fair view of the financial position of the Group and the Company at 31 March 2022 and of the results of the Group's and the Company's operations and of the consolidated cash flows for the financial year 1 April 2021 - 31 March 2022. Further, in our opinion, the Management's review gives a fair review of the development in the Group's and the Company's operations and financial matters and the results of the Group's and the Company's operations and financial position. We recommend that the annual report be approved at the annual general meeting. To the shareholders of Designit A/S We have audited the consolidated financial statements and the parent company financial statements of Designit A/S for the financial year 1 April 2021 - 31 March 2022, which comprise income statement, balance sheet, statement of changes in equity and notes, including accounting policies, for the Group and the Parent Company, and a consolidated cash flow statement. The consolidated financial statements and the parent company financial statements are prepared in accordance with the Danish Financial Statements Act. In our opinion, the consolidated financial statements and the parent company financial statements give a true and fair view of the financial position of the Group and the Parent Company at 31 March 2022, and of the results of the Group's and Parent Company's operations as well as the consolidated cash flows for the financial year 1 April 2021 - 31 March 2022 in accordance with the Danish Financial Statements Act. We conducted our audit in accordance with International Standards on Auditing (ISAs) and the additional requirements applicable in Denmark. Our responsibilities under those standards and requirements are further described in the "Auditor's responsibilities for the audit of the consolidated financial statements and the parent Company financial statements" (herinafter collectively referred to as "the financial statements") section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Independence We are independent of the Group in accordance with the International Ethics Standards Board for Accountants' International Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical requirements applicable in Denmark, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. Management is responsible for the preparation of consolidated financial statements and parent company financial statements that give a true and fair view in accordance with the Danish Financial Statements Act and for such internal control as Management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, Management is responsible for assessing the Group's and the Parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting in preparing the financial statements unless Management either intends to liquidate the Group or the Parent Company or to cease operations, or has no realistic alternative but to do so. Our objectives are to obtain reasonable assurance as to whether the financial statements as a whole are free from material misstatement, whether due to fraud or error and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements. As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal control. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's and the Parent Company's internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management. Conclude on the appropriateness of Management's use of the going concern basis of accounting in preparing the financial statements and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's and the Parent Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group and the Parent Company to cease to continue as a going concern. Evaluate the overall presentation, structure and contents of the financial statements, including the note disclosures, and whether the financial statements represent the underlying transactions and events in a manner that gives a true and fair view. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Management is responsible for the Management's review. Our opinion on the financial statements does not cover the Management's review, and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the Management's review and, in doing so, consider whether the Management's review is materially inconsistent with the financial statements or our knowledge obtained during the audit, or otherwise appears to be materially misstated. Moreover, it is our responsibility to consider whether the Management's review provides the information required under the Danish Financial Statements Act. Based on the work we have performed, we conclude that the Management's review is in accordance with the financial statements and has been prepared in accordance with the requirements of the Danish Financial Statements Act. We did not identify any material misstatement of the Management's review. For terms and definitions, please see the accounting policies. The Designit A/S Group helps ambitious companies make innovation happen. Our inter disciplinary teams work with our clients creating compelling products, services and experiences driving customer engagement and realising business growth. The negative operating result came from an unexpected slowdown of the activity in Q2 of FY22, but it was rapidly recovered in the second half of the year, with solid results in Q3 and Q4. General risks The Designit A/S Group's main operational risks relate to the ability to consistently deliver high quality work to all customers in order to be consistent with the values that the Designit A/S Group uses to position itself in the market. Furthermore, it is important for the Designit A/S Group to stay ahead of the trends and tendencies in design and interactive solutions. Currency risks The Company's ongoing trade with foreign customers, investments in foreign branches and intercompany balances exposes its profit/loss, cash flows and capital to fluctuations in currency rates. On an ongoing basis the group's management assess whether actions are necessary to lower the risk exposure. Currency adjustments of investments in subsidiaries and associated companies that are separate entities are recognised directly in equity. Currency risks related to these are not hedged, as it is our view that hedging of such long-term investments would not be desirable from an overall risk and cost perspective. Interest rate risks Net interest-bearing debt does not constitute a significant amount. Moderate changes in interest rates will therefore not have any significant effect on earnings. There is, therefore, no hedge against interest rate risks. The Designit A/S Group's activities are based on environmentally sound operations. We believe that the Designit A/S Group's activities do not result in any significant environmental impact. The Designit A/S Group does not do independent research. We are, however, constantly developing and improving new and existing practices. Designit A/S does not have policies related to human rights, social and labour conditions, anti-corruption, environment and climate. The reason is that it is handled by the Wipro Group. For more information about the group’s work with sustainability, we refer to the current CSR report https://www.wipro.com/sustainability/ Designit A/S top management consists of three persons of which one is female. Thereby, the gender composition at the top management level in the Group is equal. When there is a change in top management, the Designit Group always evaluates the competencies of the applicants regardless of gender. The Group’s overall goal is to ensure that at all times the Executive Board and management team are made up of the most suitable candidates, irrespective of gender. The management team consists of 64 % men and 36 % women. It is Designit’s policy to promote gender equality in the management team. The company pursues to develop and ensure diversity. This objective is also valid for the managerial positions. In the recruitment process for leading positions, HR has to ensure that candidates from the underrepresented gender are represented, if possible. Designit A/S does not currently have a data ethics policy, but is working to prepare and implement such a policy, which will form the basis of our policies on data protection and data ethics. We will ensure compliance with applicable data protection laws and have a strong focus on the principles of self-determination, human dignity, responsibility, equality and justice, progressiveness and diversity in general. We always keep people in focus, and when developing new products and services, we focus on privacy by design and standard. We aim to develop and implement a data ethics policy in the coming year. No events have occured after the balance sheet date to this date, which would influence the evaluation of this annual report. The company expects to consolidate the more solid trajectory of the second half of last year, and deliver a positive outcome in FY23, from our investments in the different markets, with a result around break-even. The annual report of Designit A/S for 2021/22 has been prepared in accordance with the provisions in the Danish Financial Statements Act applying to large reporting class C entities. The accounting policies used in the preparation of the financial statements are consistent with those of last year. In accordance with the Danish Business Authority’s clarification in May 2021, financial statement items regarding equity investments in associates have been renamed to equity investments in participating interests as the financial statement items must be designated as such when the entity only holds equity investments in associates. Reporting currency The financial statements are presented in Danish kroner (DKK). The consolidated financial statements comprise the Parent Company and subsidiaries controlled by the Parent Company. Control means a parent company’s power to direct a subsidiary’s financial and operating policy decisions. Besides the above power, the parent company should also be able to yield a return from its investment. In assessing if the parent company controls an entity, de facto control is taken into consideration as well. The existence of potential voting rights which may currently be exercised or converted into additional voting rights is considered when assessing if an entity can become empowered to direct another entity’s financial and operating decisions. Intra-group business combinations The book value method is applied to business combinations such as acquisition and disposal of investments, mergers, demergers, contributions of assets and share conversions, etc. in which entities controlled by the parent company are involved, provided that the combination is considered completed at the time of acquisition without any restatement of comparative figures. Differences between the agreed consideration and the carrying amount of the acquiree are recognised directly in equity. On initial recognition, transactions denominated in foreign currencies are translated at the exchange rate at the transaction date. Foreign exchange differences arising between the exchange rates at the transaction date and the date of payment are recognised in the income statement as financial income or financial expenses. Receivables and payables and other monetary items denominated in foreign currencies are translated at the exchange rate at the balance sheet date. The difference between the exchange rates at the balance sheet date and the date at which the receivable or payable arose or was recognised in the most recent financial statements is recognised in the income statement as financial income or financial expenses. Foreign group entities Foreign subsidiaries and associates are considered separate entities. Items in such entities' income statements are translated at an average exchange rate for the month, and balance sheet items are translated at closing rates. Foreign exchange differences arising on translation of the opening equity of foreign subsidiaries to closing rates and on translation of the income statements from average exchange rates to closing rates are taken directly to equity. Foreign exchange adjustments of balances with separate foreign subsidiaries, which are considered part of the aggregate investment in the subsidiary, are taken directly to equity, and foreign exchange gains and losses on loans and derivative financial instruments designated as hedges of foreign subsidiaries are recognised directly in equity. The Company has chosen IFRS15 as interpretation for revenue recognition. Income from construction contracts involving a high degree of customisation is recognised as revenue by reference to the stage of completion. Accordingly, revenue corresponds to the market value of the contract work performed during the year (percentage-of-completion method). This method is used where the total income and expenses and the degree of completion of the contract can be measured reliably. Where income from a construction contract cannot be estimated reliably, contract revenue corresponding to the expenses incurred is recognised only in so far as it is probable that such expenses will be recoverable from the counterparty. Revenue is measured at the fair value of the agreed consideration excluding VAT and taxes charged on behalf of third parties. All discounts and rebates granted are recognised in revenue. Other operating income and operating expenses comprise items of a secondary nature relative to the Company's core activities, including gains and losses on the sale of fixed assets. Other external expenses include the year's expenses relating to the Company's core activities, including expenses relating to distribution, sale, advertising, administration, premises, bad debts, payments under operating leases, etc. Staff costs include wages and salaries, including compensated absence and pension to the Company's employees, as well as other social security contributions, etc. The item is net of refunds from public authorities. The item comprises amortisation/depreciation of intangible assets and property, plant and equipment. Development projects and other intangible assets are measured at cost less accumulated amortisation and impairment losses. Other intangible assets are amortised over the expected lifetime of the assets. Goodwill is amortised over the expected economic life of the asset, measured by reference to Management’s experience in the individual business segments. Goodwill is amortised on a straight-line basis over the amortisation period of 10 years, longest for strategically aquired enterprises with strong market positions and long-term earnings profiles. The basis of amortisation/depreciation, which is calculated as cost less any residual value, is amortised/depreciated on a straight line basis over the expected useful life. The expected useful lives of the assets are as follows: Goodwill 10 years Other intangible assets 3-9 years Land and buildings 5-10 years Fixtures and fittings, other plant and equipment 2-5 years Leasehold improvements 3-5 years A proportionate share of the underlying entities' profit/loss after tax is recognised in the income statement according to the equity method. Shares of profit/loss after tax in subsidiaries are presented as separate line items in the income statement. Full elimination of intra-group gains/losses is made for equity investments in subsidiaries. The proportionate share of the individual subsidiaries' profit/loss after tax after full elimination of internal gains/losses are recognised in the parent company's income statement. Financial income and expenses are recognised in the income statements at the amounts that concern the financial year. Net financials include interest income and expenses as well as allowances and surcharges under the advance-payment-of-tax scheme, etc. Tax for the year includes current tax on the year's expected taxable income and the year's deferred tax adjustments. The portion of the tax for the year that relates to the profit/loss for the year is recognised in the income statement, whereas the portion that relates to transactions taken to equity is recognised in equity. The Company and its Danish group entities are jointly taxed. The total Danish income tax charge is allocated between profit/loss-making Danish entities in proportion to their taxable income (full absorption). Jointly taxed entities entitled to a tax refund are reimbursed by the management company based on the rates applicable to interest allowances, and jointly taxed entities which have paid too little tax pay a surcharge according to the rates applicable to interest surcharges to the management company. Goodwill is amortised over the expected economic life of the asset, measured by reference to Management’s experience in the individual business segments. Goodwill is amortised on a straight-line basis over the amortisation period of 10 years, longest for strategically aquired enterprises with strong market positions and long-term earnings profiles. Other intangible assets include development projects and other acquired intangible rights, including software licences, distribution rights and development projects. Other intangible assets are measured at cost less accumulated amortisation and impairment losses. Property, plant and equipment Items of property, plant and equipment are measured at cost less accumulated depreciation and impairment losses. Cost includes the acquisition price and costs directly related to the acquisition until the time at which the asset is ready for use. Gains or losses are calculated as the difference between the selling price less selling costs and the carrying amount at the date of disposal. Gains and losses from the disposal of property, plant and equipment are recognised in the income statement as other operating income or other operating expenses. The Company has chosen to use IFRS 16 as interpretation basis for the provisions of the Danish Fi-nancial Statements Act on recognition of leases. Leased assets and lease commitments are recognised in the balance sheet when the leased asset under a lease entered into regarding a specific identifiable asset is made available to the Company in the lease term, and when the Company in this connection obtains the right to almost all economic benefits from the use of the identified asset and the right to control the use of the identified asset. On initial recognition, lease commitments are measured at the present value of the future lease payments discounted by an incremental borrowing rate. The following lease payments are recog-nised as part of the lease commitment: - Fixed payments. - Variable payments that change concurrently with changes to an index and an interest rate based on said index or interest rate. - Payments overdue subject to a residual value guarantee. - Exercise price of call options that it is highly probable that Management will exercise. - Payments subject to an extension option that it is highly probable that the Group will exercise. - Penalty related to a termination option unless it is highly probable that the Group will not exer-cise the option. The lease commitment is measured at amortised cost according to the effective interest method. The lease commitment is recalculated when the underlying contractual cash flows change due to changes in index or interest rate if the Company's estimate of a residual value guarantee changes or if the Company changes its assessment of whether call options, extension options or termination op-tions can reasonably be expected to be exercised. On initial recognition, the leased asset is measured at cost, which corresponds to the value of the lease commitment adjusted for prepaid lease payments plus directly related costs and estimated costs for demolition, repairs or the like less discounts received or other types of incentive payments from the lessor. Subsequently, the asset is measured at cost less accumulated depreciation and impairment losses. The leased asset is depreciated over the shorter of the lease term and the useful life of the leased asset. Depreciation charges are recognised on a straight-line basis in profit or loss. The leased asset is adjusted for changes to the lease commitment due to changes to the terms of the lease or changes to the cash flows of the lease concurrently with changes to an index or an in-terest rate. Leased assets are depreciated on a straight-line basis over the expected lease term, which is: - Operating equipment 5-10 years - Office buildings 4-6 years The Company has generally chosen to apply the practical exemptions IFRS 16 so that leased assets of low value and short-term leases are not recognised in the balance sheet. Instead, related lease payments are recognised on a straight-line basis as other external costs in profit or loss. The Com-pany has also chosen not to recognise service elements in the capitalised value of lease commit-ments and leased assets. Service elements are therefore recognised as other external costs in profit or loss on an ongoing basis. Equity investments in subsidiaries are measured according to the equity method. Equity investments in joint ventures are also measured according to the equity method in the consolidated financial statements. On initial recognition, equity investments in subsidiaries are measured at cost, i.e. plus transaction costs. The cost is allocated in accordance with the acquisition method; see the accounting policies regarding business combinations. The cost is adjusted by shares of profit/loss after tax calculated in accordance with the Group's accounting policies less or plus unrealised intra-group gains/losses. Identified increases in value and goodwill, if any, compared to the underlying entity's net asset value are amortised in accordance with the accounting policies for the assets and liabilities to which they can be attributed. Negative goodwill is recognised in the income statement. Dividend received is deduced from the carrying amount. Equity investments in subsidiaries measured at net asset value are subject to impairment test requirements if there is any indication of impairment. The carrying amount of intangible assets, property, plant and equipment and investments in subsidiaries and associates is assessed for impairment on an annual basis. Impairment tests are conducted on assets or groups of assets when there is evidence of impairment. The carrying amount of impaired assets is reduced to the higher of the net selling price and the value in use (recoverable amount). The recoverable amount is the higher of the net selling price of an asset and its value in use. The value in use is calculated as the present value of the expected net cash flows from the use of the asset or the group of assets and the expected net cash flows from the disposal of the asset or the group of assets after the end of the useful life. Previously recognised impairment losses are reversed when the reason for recognition no longer exists. Impairment losses on goodwill are not reversed. Receivables are measured at amortised cost. The Company has chosen IAS 39 as interpretation for impairment of financial receivables. An impairment loss is recognised if there is objective evidence that a receivable or a group of receivables is impaired. If there is objective evidence that an individual receivable has been impaired, an impairment loss is recognised on an individual basis. Receivables in respect of which there is no objective evidence of individual impairment are tested for objective evidence of impairment on a portfolio basis. The portfolios are primarily based on the debtors' domicile and credit ratings in line with the Company's risk management policy. The objective evidence applied to portfolios is determined based on historical loss experience. Impairment losses are calculated as the difference between the carrying amount of the receivables and the present value of the expected cash flows, including the realisable value of any collateral received. The effective interest rate for the individual receivable or portfolio is used as discount rate. Service supplies and contract work in progress for third parties are measured at the market value of the work performed less progress billings. The market value is calculated based on the stage of completion at the balance sheet date and the total expected income from the relevant contract. The stage of completion is calculated based on the expenses incurred relative to the expected total expenses relating to the relevant contract. Where the outcome of contract work in progress cannot be estimated reliably, the market value is measured at the expenses incurred in so far as they are expected to be paid by the purchaser. Where the total expenses relating to the work in progress are expected to exceed the total market value, the expected loss is recognised as a loss-making agreement under "Provisions" and is expensed in the income statement. The value of work in progress less progress billings is classified as assets when the selling price exceeds progress billings and as liabilities when progress billings exceed the market value. Prepayments recognised under "Assets" comprise prepaid expenses regarding subsequent financial reporting years. Proposed dividends Dividend proposed for the year is recognised as a liability once adopted at the annual general meeting (declaration date). Dividends expected to be distributed for the financial year are presented as a separate item under "Equity". Dividend proposed for the year is recognised as a liability once adopted at the annual general meeting (declaration date). Dividends expected to be distributed for the financial year are presented as a separate item under "Equity". Current tax payables and receivables are recognised in the balance sheet as the estimated income tax charge for the year, adjusted for prior-year taxes and tax paid on account. Deferred tax is measured according to the liability method on all temporary differences between the carrying amount and the tax base of assets and liabilities. However, deferred tax is not recognised on temporary differences relating to goodwill which is not deductible for tax purposes and on office premises and other items where temporary differences, apart from business combinations, arise at the date of acquisition without affecting either profit/loss for the year or taxable income. Where alternative tax rules can be applied to determine the tax base, deferred tax is measured based on Management's intended use of the asset or settlement of the liability, respectively. Deferred tax is measured according to the tax rules and at the tax rates applicable at the balance sheet date when the deferred tax is expected to crystallise as current tax. Deferred tax assets are recognised at the expected value of their utilisation; either as a set-off against tax on future income or as a set-off against deferred tax liabilities in the same legal tax entity. Changes in deferred tax due to changes in the tax rate are recognised in the income statement. Financial liabilities are recognised at the date of borrowing at the net proceeds received less transaction costs paid. On subsequent recognition, financial liabilities are measured at amortised cost, corresponding to the capitalised value, using the effective interest rate. Accordingly, the difference between the proceeds and the nominal value is recognised in the income statement over the term of the loan. Financial liabilities also include the capitalised residual lease liability in respect of finance leases. Other liabilities are measured at net realisable value. Lease liabilities Lease liabilities are measured at the net present value of the remaining lease payments including any guaranteed residual value based on the interest rate implicit in the lease. The cash flow statement shows the Company's net cash flows broken down according to operating, investing and financing activities, the year's changes in cash and cash equivalents as well as the cash and cash equivalents at the beginning and the end of the year. Cash flows from operating activities are calculated as the profit/loss for the year adjusted for non cash operating items, changes in working capital and paid corporate income tax. Cash flows from investing activities comprise payments in connection with acquisitions and disposals of entities and activities and of intangible assets, property, plant and equipment and investments. Cash flows from financing activities comprise changes in the size or composition of the Company's share capital and related expenses as well as raising of loans, repayment of interest bearing debt and payment of dividends to shareholders. Cash and cash equivalents comprise cash, short term bank loans and short term securities which are readily convertible into cash and which are subject only to insignificant risks of changes in value. Breakdown of revenue by geographical segment: Denmark 18,407,620 27,527,830 37,722,304 39,540,090 Norway 46,416,993 42,918,189 0 0 Germany 19,895,564 15,496,452 0 0 Great Britain 42,885,838 21,867,155 0 0 Spain 23,603,888 21,033,455 0 0 Israel 26,508,168 21,082,913 0 0 Australia and New Zealand 9,814,344 6,965,862 9,864,034 0 Sweden 9,002,457 12,480,984 0 0 Japan 1,352,863 13,777,430 0 0 Other 2,496,722 3,290,933 2,496,729 0 200,384,457 186,441,203 50,083,067 39,540,090 In 2022 other operating income relates to sale of activity. In 2021 there is no other operating income. Total remuneration to Management: DKK 4,769,053 (2020/21: DKK 5,419,772). The total value of right of use assets amount to DKK 32,411 thousand for the Group and DKK 2,819 thousand for Parent company. Prepayments include accrual of expenses relating to subsequent financial years, including expenses relating to software subscriptions, licenses and rent. There are no long-term liabilities that falls due for payment after more than 5 years after the balance sheet date. Other contingent liabilities Group The group has guarantee commitments of DKK 4,949 thousand at 31 March 2021 (2020/21: DKK 2,912 thousand). The Parent Company is jointly taxed with its Danish subsidiary. As management company, the Company has joint and several unlimited liability, together with the subsidiary, for all Danish income taxes and withholding taxes on dividend, interest and royalties within the group of jointly taxed entities. Any subsequent corrections of income subject to joint taxation and withholding taxes, etc. could entail an increase in the entities' tax liability. The Group as a whole is not liable vis-à-vis any third parties. The Group's Danish entities are jointly and severally liable for joint VAT registration. The parent company has provided guarantee to provide financial assistance for subsidiaries. The group has not provided any security or other collateral in assets at 31 March 2022. The parent Company has not provided any security or other collateral in assets at 31 March 2022. Information about consolidated financial statements Parent Domicile Requisitioning of the parent company's consolidated financial statements Wipro Limited India Available on company website Related party transactions DKK 2021/22 2020/21 Group Sale of services to affiliated companies 90,127,794 55,525,489 Purchase of service from affiliated companies 5,558,986 7,811,632 Interests, affiliated companies 1,132,985 796,335 Divestments to affiliated companies 10,487,439 0 Receivables from affiliated companies 22,318,340 13,051,578 Payables to affiliated companies 16,701,063 102,753,508 Parent Company Sale of services to affiliated companies 42,754,893 35,359,113 Purchase of service from affiliated companies 21,116,704 10,352,684 Interests, affiliated companies 1,628,154 2,021,377 Divestments to affiliated companies 10,487,439 0 Receivables from affiliated companies 15,638,603 11,746,216 Payables to affiliated companies 64,319,721 155,624,570 Audit fees for the Parent company are not 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