xbrli:pureiso4217:DKK384505222021-01-012021-12-31384505222021-01-012021-12-311384505222021-01-012021-12-311384505222021-01-012021-12-312384505222021-01-012021-12-311384505222021-01-012021-12-312384505222021-01-012021-12-313384505222021-01-012021-12-31384505222020-01-012020-12-31384505222021-01-012021-12-31fsa:RetainedEarningsMember384505222020-01-012020-12-31fsa:RetainedEarningsMember384505222021-01-012021-12-31fsa:RetainedEarningsMember384505222021-12-31384505222020-12-31384505222021-01-01fsa:ContributedCapitalMember384505222021-01-01fsa:RetainedEarningsMember384505222021-01-01384505222021-12-31fsa:ContributedCapitalMember384505222021-12-31fsa:RetainedEarningsMember384505222021-01-012021-12-31fsa:OtherShorttermPayablesMemberGrundlag for konklusionKonklusion2022-06-232022-06-23true2020-01-012020-12-3133963556København S23006WeidekampsgadeDeloitte Statsautoriseret RevisionspartnerselskabHerlevHerlev2730Regnskabsklasse BRevisionspåtegning2021-12-312021-01-012<br /><br />41MarielundvejNagarro ES Denmark A/S38450522339635562300 København SWeidekampsgade 6Deloitte Statsautoriseret RevisionspartnerselskabÅrsrapportThe Board of Directors and the Executive Board have today considered and approved the annual report of Nagarro ES Denmark A/S for the financial year 01.01.2021 - 31.12.2021.The annual report is presented in accordance with the Danish Financial Statements Act.In our opinion, the financial statements give a true and fair view of the Entity’s financial position at 31.12.2021 and of the results of its operations for the financial year 01.01.2021 - 31.12.2021.We believe that the management commentary contains a fair review of the affairs and conditions referred to therein.We recommend the annual report for adoption at the Annual General Meeting.CopenhagenBjarne Gammelgaard MøbergOle Sølvsten HemmingsenBjarne Gammelgaard MøbergJörg Werner DietmannMichael SchmidtTo the shareholders of Nagarro ES Denmark A/SWe have audited the financial statements of Nagarro ES Denmark A/S for the financial year 01.01.2021 -
31.12.2021, which comprise the income statement, balance sheet, statement of changes in equity and
notes, including a
summary of significant accounting policies. The financial statements are prepared in
accordance with the
Danish Financial Statements Act.
In our opinion, the financial statements give a true and fair view of the Entity’s financial position at 31.12.2021 and of the results of its operations for the financial year 01.01.2021 - 31.12.2021 accordance
with the Danish Financial Statements Act.We conducted our audit in accordance with International Standards on Auditing (ISAs) and 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 financial statements" section of this auditor’s
report. We are independent of the Entity 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. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.Management is responsible for the preparation of 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 Entity’s ability to continue
as a going concern, for disclosing, as applicable, matters related to going concern, and for using the going
concern basis of accounting in preparing the financial statements unless Management either intends to liquidate
the Entity or to cease operations, or has no realistic alternative but to do so.Our objectives are to obtain reasonable assurance about 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 these 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:<br />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.
<br />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 Entity’s internal control.
<br />Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by Management.
<br />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 Entity’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
Entity to cease to continue as a going concern.
<br />Evaluate the overall presentation, structure and content of the financial statements, including the disclosures
in the notes, and whether the financial statements represent the underlying transactions and
events in a manner that gives a true and fair view.<br />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 commentary.
Our opinion on the financial statements does not cover the management commentary, 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
commentary and, in doing so, consider whether the management commentary is materially inconsistent with
the financial statements or our knowledge obtained in the audit or otherwise appears to be materially
misstated.
Moreover, it is our responsibility to consider whether the management commentary provides the information
required under the Danish Financial Statements Act.<br />Based on the work we have performed, we conclude that the management commentary 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 commentary.CopenhagenChristian Sanderhagemne23347State Authorised Public AccountantPrimary activitiesNagarro ES Denmark A/S is a technology company delivering SAP Managed services, Consulting Support, and Compliance products to Danish and International customers.
The income statement for 2021 shows a positive result of DKK 3.285.804 against the loss of DKK 1.154.204 last year.
We have found that the Company has suffered a capital loss. In accordance with the Danish Companies
Act
section 119 the management has prepared a plan to regain the capital with future profit.
Management expect that the company will continue it’s profitale growth in 2022. Description of material changes in activities and financesNagarro ES
Nagarro ES the SAP Global BU within the Nagarro Group and a full-service provider of business solutions based on SAP technologies. The portfolio includes all services ranging from strategy and process consulting to implementation, operation and maintenance of critical business solutions. Nagarro ES is recognised by SAP as one of the most powerful and innovative S/4HANA Cloud partners for SMB customers.
Nagarro Group
Nagarro is a digital engineering leader with full-service offerings. The company specialize in “change the business” technology services, including digital product engineering, e-commerce, and customer experience services, AI and ML-based solutions, cloud and IoT solutions, and consulting on next-generation ERP. Nagarro has a broad and long-standing international customer base, primarily in Europe, particularly Germany, and in North America. This includes many global blue-chip companies, leading independent software vendors (ISVs), other market and industry leaders, and public sector clients. Nagarro employs over 15,000 people across 27 countries. Nagarro is listed on the Frankfurt Stock Exchange (NA9) in the Prime Standard and is also a part of SDAX and TecDAX indices.
S/4HANA Transformation & SAP Cloud Services
Companies are in the process of replacing legacy SAP ECC systems with SAP S/4HANA solutions and there is a strong demand for partners with specialised industry know-how and technical expertise to take full advantage of digitalised business models offered by S/4HANA best practises and cloud solutions. Nagarro ES is offering a range of industry-specific partner-packaged S/4HANA solutions, that condense more than 20 years of experience from industries like Retail, LifeSciense and Manufacturing.
SAP S/4HANA Platform management and Private Cloud services continuous to be a significant and growning part of the companys business in Denmark. These managed services continuously have a very high satisfaction rate from customers who runs their critical business applications in Nagarro’s Private Cloud Tier 3+ Data centers in Frankfurt and SAP operation center in Freiburg.
ComplianceNow
ComplianceNow is dedicated to the challenges of the ever-increasing complexity of handling risk management, optimize compliance operations, increase transparency and automating costly manual processes within SAP compliance.
There is an increasing pressure on companies to comply with higher standards preventing fraud, misuse of authority and cyber attacks. It the managements expectation that ComplianceNow, as a SAP Certified and proven software supplier, will continue to grow and strengthen it position as one of the key international vendors delivering software strengthen and automating the compliance processes for companies running SAP ERP and S/4HANA.
Events after the balance sheet dateThe outbreak of coronavirus/COVID-19 is still a current event in the months after 31.12.2021. The outbreak has
resulted in a series of precautions, that affects the daily operations, both for the Company, suppliers, customers
and other business partners. The economical effect cannot be meassured at this time.
No events have occurred after the balance sheet date to this date, which would influence the evaluation of
this annual report.22529205186893041627592017911204177718017508994476105-9727995153571702703960748-1143069674944111373285804-11542063285804-11542063285804441050147150904410501471509024005277558143913597825444311353615663521965915663521965948215795048285213017981192797279033215090170200290400111375122750222035051235965194365079513555316400122187320636461591269214915000005000001771477-15143272271477-1014327500000-1514327-1014327500000177147768300049600068300049600068402262552824159479127977346897130663025212750006134364812665503350711427439818335071142743981836461591269214911 Staff costs2021
DKK2020
DKKWages and salaries14,222,78215,954,237Pension costs1,781,2191,785,878Other social security costs87,46230,025Other staff costs184,457141,06416,275,92017,911,204Average number of full-time employees182018202 Depreciation, amortisation and impairment losses2021
DKK2020
DKKAmortisation of intangible assets1,624,5891,633,629Depreciation of property, plant and equipment152,591117,2701,777,1801,750,8993 Tax on profit/loss for the year2021
DKK2020
DKKCurrent tax689,713(290,400)Change in deferred tax187,00046,000Adjustment concerning previous years(201,769)255,537674,94411,1374 Intangible assetsCompleted development projects
DKKCost beginning of year9,349,878Additions1,320,000Cost end of year10,669,878Amortisation and impairment losses beginning of year(4,634,788)Amortisation for the year(1,624,589)Amortisation and impairment losses end of year(6,259,377)Carrying amount end of year4,410,5015 Development projectsComplianceNow is a SAP certified product-suite consisting of 6 products for optimization of companies SAP compliance operations and security measures. Innovation and maintenance of ComplianceNow is an ongoing process, where the direction of the technological and functional development is defined by the overall direction SAP.
Key focus of 2022 innovation was to support data performance, SAP Certification on SAP Extended Cloud and pre-studies to IdM integration. The innovative product roadmap of ComplianceNow is strongly influenced by the demand in the market.
Nagarro ES deliver products that not only competes with the already existing players on the market, but also new and unique products supporting and automating companies’ different processes involving SAP Risk Management and Compliance.
ComplianceNow has been sold in 12 different countries, including the United States, to more than 200 companies like Mercedes Benz, Goodyear Rubber and Tire Company and Radius.6 Property, plant and equipmentOther fixtures and fittings, tools and equipment
DKKLeasehold improvements
DKKCost beginning of year360,563257,934Additions293,4980Cost end of year654,061257,934Depreciation and impairment losses beginning of year(283,005)(221,956)Depreciation for the year(131,004)(21,587)Depreciation and impairment losses end of year(414,009)(243,543)Carrying amount end of year240,05214,3917 Financial assetsDeposits
DKKCost beginning of year219,659Disposals(63,024)Cost end of year156,635Carrying amount end of year156,6358 Other payables2021
DKK2020
DKKVAT and duties2,441,2406,077,724Wages and salaries, personal income taxes, social security costs, etc payable2,444,9694,014,673Holiday pay obligation1,617,0432,568,197Other costs payable127,00089,4126,630,25212,750,0069 Unrecognised rental and lease commitments2021
DKK2020
DKKLiabilities under rental or lease agreements until maturity in total171,303426,221This annual report has been presented in accordance with the provisions of the Danish Financial Statements
Act governing reporting class B enterprises with addition of a few provisions for reporting class C.The accounting policies applied to these financial statements are consistent with those applied last year.falseRecognition and measurementAssets are recognised in the balance sheet when it is probable as a result of a prior event that future economic
benefits will flow to the Entity, and the value of the asset can be measured reliably.
Liabilities are recognised in the balance sheet when the Entity has a legal or constructive obligation as a
result of a prior event, and it is probable that future economic benefits will flow out of the Entity, and the
value of the liability can be measured reliably.
On initial recognition, assets and liabilities are measured at cost. Measurement subsequent to initial
recognition is effected as described below for each financial statement item.
Anticipated risks and losses that arise before the time of presentation of the annual report and that confirm
or invalidate affairs and conditions existing at the balance sheet date are considered at recognition and
measurement.
Income is recognised in the income statement when earned, whereas costs are recognised by the amounts
attributable to this financial year.Gross profit or lossGross profit or loss comprises revenue, changes in inventories of finished goods and work in progress, own
work capitalised, other operating income, cost of raw materials and consumables and external expenses.RevenueRevenue from the sale of services is recognised
in the income statement when delivery is made to the buyer. Revenue is recognised net of VAT, duties and
sales discounts and is measured at fair value of the consideration fixed.Cost of salesCost of sales comprises goods consumed in the financial year measured at cost.Other external expensesOther external expenses include expenses relating to the Entity’s ordinary activities, including expenses for
premises, stationery and office supplies, marketing costs, etc. This item also includes writedowns of
receivables recognised in current assets.Staff costsStaff costs comprise salaries and wages, and social security contributions, pension contributions, etc
for entity staff.Depreciation, amortisation and impairment lossesDepreciation, amortisation and impairment losses relating to property, plant and equipment and intangible
assets comprise depreciation, amortisation and impairment losses for the financial year, and gains and
losses from the sale of intangible assets and property, plant and equipment.Other financial expensesOther financial expenses comprise interest expenses, including interest expenses on payables to group
enterprises, payables and transactions in foreign currencies and tax surcharge under the Danish Tax Prepayment Scheme etc.Tax on profit/loss for the yearTax for the year, which consists of current tax for the year and changes in deferred tax, is recognised in the
income statement by the portion attributable to the profit for the year and recognised directly in equity by
the portion attributable to entries directly in equity.The Entity is jointly taxed with all Danish group enterprises. The current Danish income tax is allocated
among the jointly taxed entities proportionally to their taxable income (full allocation with a refund
concerning tax losses).Intellectual property rights etcIntellectual property rights etc comprise development projects completed and in progress with related
intellectual property rights, acquired intellectual property rights and prepayments for intangible assets.Development projects on clearly defined and identifiable products and processes, for which the technical rate
of utilisation, adequate resources and a potential future market or development opportunity in the enterprise
can be established, and where the intention is to manufacture, market or apply the product or process in
question, are recognised as intangible assets. Other development costs are recognised as costs in the income
statement as incurred. When recognising development projects as intangible assets, an amount equalling
the costs incurred less deferred tax is taken to equity under Reserve for development costs that is reduced
as the development projects are amortised and written down.
The cost of development projects comprises costs such as salaries and amortisation that are directly and
indirectly attributable to the development projects.
Completed development projects are amortised on a straight-line basis using their estimated useful lives
which are determined based on a specific assessment of each development project. If the useful life cannot
be estimated reliably, it is fixed at 10 years. For development projects protected by intellectual property
rights, the maximum period of amortisation is the remaining duration of the relevant rights. The amortisation
periods used are 5 years.
Intellectual property rights etc are written down to the lower of recoverable amount and carrying amount.Property, plant and equipmentther fixtures and fittings, tools and equipment are
measured at cost less accumulated depreciation and impairment losses.
Cost comprises the acquisition price, costs directly attributable to the acquisition and preparation costs of
the asset until the time when it is ready to be put into operation.
The basis of depreciation is cost less estimated residual value after the end of useful life. Straight-line
depreciation is made on the basis of the following estimated useful lives of the assets:Other fixtures and fittings, tools and equipment1-5 yearsLeasehold improvements1-5 yearsFor leasehold improvements and assets subject to finance leases, the depreciation period cannot exceed
the contract period.
Estimated useful lives and residual values are reassessed annually.
Items of property, plant and equipment are written down to the lower of recoverable amount and carrying
amount.ReceivablesReceivables are measured at amortised cost, usually equalling nominal value less writedowns for bad and
doubtful debts.Tax payable or receivableCurrent tax payable or receivable is recognised in the balance sheet, stated as tax computed on this year's
taxable income, adjusted for prepaid tax.PrepaymentsPrepayments comprise incurred costs relating to subsequent financial years. Prepayments are measured at
cost.CashCash comprises bank deposits.Deferred taxDeferred tax is recognised on all temporary differences between the carrying amount and the tax-based
value of assets and liabilities, for which the tax-based value is calculated based on the planned use of each asset or the planned settlement of each liability. However, no deferred tax is recognised for amortisation of
goodwill disallowed for tax purposes and temporary differences arising at the date of acquisition that do not result from a business combination and that do not have any effect on profit or loss or on taxable income.
Deferred tax assets, including the tax base of tax loss carryforwards, are recognised in the balance sheet at
their estimated realisable value, either as a set-off against deferred tax liabilities or as net tax assets.
Other financial liabilitiesOther financial liabilities are measured at amortised cost, which usually corresponds to nominal value.Deferred incomeDeferred income comprises income received for recognition in subsequent financial years. Deferred income
is measured at cost.2022-06-23Bjarne Gammelgaard Møberg