F1Soft International Pvt. Ltd., the holding company of eSewa Fonepay Pvt. Ltd.
, holds 100%
shares as from 1st March 2013. The share capital of NRs. 3,00,00,000 (Three crore) has
been paid up by F1Soft International Pvt. Ltd. at various dates. As part of capital increment
plan, the paid-up capital of the company has been increased to NRs 3,00,00,000 (Three
crore) from 1,00,00,000 (one crore) on 12th June 2018 (Date of approval by Office of
company Registrar).
1. Reserve and Surplus
The company had accumulated financial profit of NRs 11,626,649 till the end of the previous
fiscal year. NRs 4,465,935 was deducted from accumulated profit & loss in current year fiscal
year as loss from the current fiscal year. The balance in the accumulated profit & loss
account is NRs 7,160,713 at the end of current fiscal year. Detail of such is as below:
2. Deferred Tax Asset
The company has recognized deferred tax assets/liability for the temporary difference arising
the calculation of which has been presented below.
Deferred Tax
Carrying Tax Temporary Deductible/
(Liability)/
Amount Base Difference (Taxable)
Liabilities Asset
Reserve & Surplus - - - - -
Intangible Assets 4,949,063 - 4,949,063 (4,949,063) (1,237,266)
Carry forward of losses 5,738,283 1,434,571
Closing Total 4,949,063 - 4,949,063 (4,949,063) 197,305
Previous Year Balance (1,649,688)
Change in Deferred Assets Charged to Income Statement 1,846,993
3. Provision for bonus to employees
Since the company does not have profit for the fiscal year, provision for bonus to employee
has not been provided.
4. Fixed assets, Intangible Assets, Depreciation and Amortization
The company has recognized NRs 7,877,691 as depreciation and amortization for the current
fiscal year.
5. Related Party
The company has identified its parent company, companies within the group and members of
governing board as related parties. Identified related parties and transactions are presented
below:
Name of Related Party Relationship
F1soft International Pvt. Ltd. Parent Company
VOne Invest Pvt. Ltd Common Directors
Shiran Technologies Pvt. Ltd Common Holding Company
ExtensoData Pvt. Ltd Common Holding Company
eSewa Pasal Pvt. Ltd Common Holding Company
Cashon Ad Pvt. Ltd Common Directors
Darshan tech Pvt. Ltd Common Holding Company
Key Management Personnel
Mr. Bishwas Dhakal Director
Mr. Asgar Ali President
Mr. Subhas Dhakal Director
Mr. Sambhav Sirohiya Director
Mr. Subhas Sapkota Chief Executive Officer
Details of transaction and outstanding balance:
Opening Outstanding
Nature of Nature of Transaction
Name of Party Balance Balance
Relationship transaction (NRs)
(Receivable (Receivable)
F1soft
41,16,85,951.30 1,67,77,991.75
International Parent Sales
91,59,380.90
Pvt. Ltd
Shiran Common
Technologies Holding Advance - 77,574.35 77,574.35
Pvt. Ltd Company
Gross Salary
Name of Director (NRs)
Mr. Subhas Sapkota 3,167,500.00
Mr. Asgar Ali 3,801,000.00
6. Non-Current Liabilities
The company has received security deposit of NRs. 1,400,000 from its agents for the
services committed in contract. Security deposit shall be refunded after termination of
contract. Based on management estimation such deposit will not be refunded in near future.
7. Inventories
Inventories are carried at the lower of cost and net realizable value. Cost is determined using
the first in- first out method. The closing stock represents the company’s cost of top-up
balance of Ncell Pvt. Ltd. yet to be utilized as sales in ordinary course of business.
The stock of Dish home e-pin, Broad link e-pin, Nepal Telecom Sim card are booked as
expenses as and when purchased as the remaining stock at the closing period has no
certainty of realization (non-refundable as per the agreement entered with the concerned
vendor).
The topup balance of Ncell as at the end of fiscal year is shown as inventory in the financial
statements as the outstanding balance is refundable as per the agreement with Ncell Pvt. Ltd
which ensures the realisable value.
8. Basic Earnings per Share
