Providing Cost Optimization & Revenue Management Solutions

Lease Management System

 Agenda

Infozech Overview

Lease Management - Challenges

Lease Management - Features

Lease Management - Product Flow

IFRS 16 Solution

Key Benefits
 About Infozech

Overview

• Providing IOT Based Cost Optimization & Revenue Management Solutions to the Global Telecom Industry since 1999.
• Tower Infrastructure specialist for asset lifecycle management, Tower billing, energy analytics and maintenance monitoring

Expertise

Managing Fuel Tracking over Reconciling bills worth Reconciling Assets

100,000+ tower sites 42 Million litres per year USD 228 Million per year 7.6 Million per year

Purpose

Enable customers to consume technology To provide innovative IT solutions to unlock

enterprise value. Create an environment To be a Leader in Applied
easily to improve their and other stakeholders
that nurtures talent and growth. Analytics.
experience.

© 2018 Infozech Software Private Limited – Confidential & Proprietary

 Customers & Recognitions

Tower Companies Telecom Companies

Global Wireless Tower Communication Operator

Yemen-GSM

Awards & Recognition

Energy Efficiency Initiative 2017 iTower won Aegis Graham Bell Innovation in Software Innovation in Managed Top 18 Innovative Product
Award 2015 Managed Service Service - OEM Companies In India

© 2018 Infozech Software Private Limited – Confidential & Proprietary

iTower: Tower Product Suite

iROC: REMOTE OPERATING CENTRE

Single integrated platform to monitor & manage remote sites
iMAINTAIN: MAINTENANCE MANAGEMENT SYSTEM
Preventive & Incidence maintenance solution
iETS: ENERGY TRACKING SYSTEM
Real Time Energy Tracking, Prediction and Analytics

iBILL:TOWER BILLING
Specialized billing solution for Energy & IP billing

iASSET: ASSET MANAGEMENT SOLUTION

Asset life cycle management & audit solution

iPROJECT: PROJECT MANAGEMENT SOLUTION

Optimize Project Efficiency to Drive Faster Completion Times

iLEASE: LEASE MANAGEMENT SOLUTION

Manage both real estate and equipment leases under a single platform

iANALYTICS: ANALYTICS PLATFORM

Real time analytical engine to take intelligent decisions
 Infozech Overview

Lease Management - Challenges

Lease Management - Features

Lease Management - Product Flow

IFRS 16 Solution

Key Benefits
 Lease Management - Challenges

Inefficient Payment of
Lease Invoices
No Back up of
Lease Data

Unintimated lease
expiry

Hard to be compliant
with the Accounting
Processes

Inefficient Time &

Space Utilization
 Infozech Overview

Lease Management - Challenges

Lease Management - Features

Lease Management - Product Flow

IFRS 16 Solution

Key Benefits
 Key Features of Lease Management System

Lease Activation Invoice Processing of Lease Amendments Lease Termination

Leases

Lease Expiry IFRS 16 Compliant Advance Reporting System Centralized Availability of Lease
& Renewal Information &
Integration with 3rd party systems
 Infozech Overview

Lease Management - Challenges

Lease Management - Features

Lease Management - Product Flow

IFRS 16 Solution

Key Benefits
 Lease Activation

Login Add New Lease Lease Information Filled

If Rent>X
1st Level Approval 2nd Level Approval

Detail Shared with Approval of the Lease Document Lease Activated End
Lessor Lease Stored

Email/Message Notifications

Renegotiate the Lease

 Invoicing processing of Leases

Email to Lessor

Approval of Invoices
Start All Active Leases Eligible for Payment Lease Amount Calculation for Invoicing
Month

Payment/Auto debit from bank

Payment Confirmation End
account to Lease owner
Received
Integration

Payment Gateway Notification to

respective Lessor
 Invoice Processing of Leases

Ensure complete financial control by gaining a comprehensive insight into all cost-driven information

Supports end to
end automated
Supports multiple
invoice
repayment
processing,
options
dispatch and
collections

Rule configuration
for associating Lessor-specific
various fee, compilation
charges and taxes invoice
for contracts
 Lease Amendments

New Modification in
Start
Amendment Lease Details

If Rent>X
1st Level Approval 2nd Level Approval

Detail Shared with Approval of the Lease Document End

Amendment
Lessor Lease Stored Activated

Email/Message Notifications
 Lease Termination

All Active Leases Identify the leases Initiate

Start
not required further Termination

Due Payment (If Any)

Approval on
Due Payment
termination
calculation Payment Release Payment Notification to
Confirmation Lessor about
Received Termination
Notification to
approval Authority Approval
of Invoices Lease
(Lessee) Invoicing
Terminated

End
 Lease Expiry & Renewal

Further No Approval on
Required
termination
Start All Active Leases Identify the Reminder to Lessee
Expiring Leases about Lease expiration Yes

Notification to Lease
Lease Activated Lessor Terminated

No
Lease Approval Negotiation
Details Shared
Required

Yes

Lease information Renegotiation

2nd Level Approval 1st Level Approval
If Rent>X filled with agreed
T&C
 Advance Reporting System

Dashboard with statistics of leases 1

Graphical analysis and evaluation of your leasing

portfolio 2
REPORTS

Trial Balance Reports 3

Lease Receivables Report 4

Lease Expiry Report 5

 Centralized Availability of Lease Information
Optimize cost & save time by consolidating information about all your leases in one place, to make sure you’re
managing leases effectively

Extract the
Fully Backed up Track of important
Keep data safe & information
information on dates like renewal,
secure instantly based on
cloud server expiry
roles and rights
 Integration of 3rd Party Systems

• Interfacing between ERP’s/databases

1

• Real time Communication between existing systems

2

• No need of switching to other systems

3
 Infozech Overview

Lease Management - Challenges

Lease Management - Features

Lease Management - Product Flow

IFRS 16 Solution

Key Benefits
 IFRS16

Identification Recognition

Disclosures Transitions
 IFRS16 Process

Identification Recognition Disclosures Transition Approach

Initial Measurement
Retrospective
Assets or Store Payment Duration Quantitative Approach

Subsequent Measurement

Setup Cost Interest Rate

Qualitative Cumulative Effective

Approach
Lease tenure Payment Type Remeasurement &
Advance/Arrear Modification
 Identification

No
Decision Tree Asset identification
Assessment will be done at the beginning of
year or in case of change in terms and Yes
condition
Right to obtain No
economic benefit
Yes

How and for what

purpose ?

Lessee has the right to Lessee has the right to direct

change operating how and for what purpose
instruction asset is going to be utilized
Yes No Yes No

Lease Not a Lease Lease Not a Lease

 Lease Attributes

• Lease ID • Lease Commencement date

• Lease Term • Fixed Rental

• Nature of Lease Asset ( Building/ Sites/ Store) • Lease Incentive

• Lease Start Date • Initial Direct Cost

• Discount Rate • Payment Due Date

• Computed Lease Tenure – Month & Year • Payment Type – Advance/ Arrear

• Notice Period (if any) • Payment Method

IFRS 16 Exemptions
 Lease Recognition

• Initial Measurement
1 • Calculation of Present value of future cash flows

• Subsequent Measurement
• Calculate cumulative ROU asset Schedule & Lease Liability Schedule
2

• Remeasurement & Modification

3 • Capture the updates in existing leases & recalculate the schedules
Initial Measurement
Subsequent Measurement
 Remeasurement & Modification

Encapsulate changes in scope of existing leases

Allocate the consideration in the modified contract

Determine the lease term of modified lease

Remeasure lease liabilities

 Disclosure - Lessee

Qualitative 1

Quantitative 2
DISCLOSURES

Maturity Analysis 3

IFRS 16 Exempted Lease details 4

 Disclosure : Sample

IAS 17 IFRS 16
Balance Sheet FY 19 Balance Sheet FY 19
Income Statement Lease Asset xx

Lease Payment xx Lease Liability xx

EBITDA xx Income Statement

Short term/ Low Lease Payments xx
Profit Before Tax xx
EBITDA xx
Depreciation xx
Interest xx
Profit Before Tax xx

New standard allows lessee Lease Asset and liability Under income statement, Under income statement,
Entity has right to choose
to include lease asset(if computed by considering depreciation on asset can be interest will be computed by
which method needs to be
Right to use is with Lessee) present value of future cash computed by Straight Line considering borrowing rate
opted for computation of
under balance sheet along flows using discounting rate (SLM) or Written-Down and subjected to be changed
depreciation
with Lease liability for the lease tenure Value (WDV) methods. time to time
 Transition

Transition
Approaches

Cumulative
Retrospective
Effective
Approach
Approach

Cumulative Cumulative
Transition 2A Transition 2B
 Retrospective Transition – Timeline & Disclosure Format

31-Mar-20 31-Mar-19 1-Apr-18

Right of use asset 73,616 88,339 103,063

Lease Liability 112,747 128,593 142,741

Depreciation for the year 14,723 14,723

Interest expense for the year 15,431 17,129

Adjustment to retained earnings -39,678

 Cumulative Transition 2A – Timeline & Disclosure Format

31-Mar-20 1-Apr-19
Right of Use Asset 73,616 88,339

Lease Liability 112,747 128,593

Difference adjusted in the retained earnings -40,253

Interest expense for the year 14,723

Adjustment to retained earnings 15,431

 Cumulative Transition 2B – Schedule & Disclosure Format

Cumulative Transition 2B : Right of Use Asset Schedule

Year ended Opening balance Depreciation Closing Balance
31-Mar-20 144,024 24,004 120,020
31-Mar-21 120,020 24,004 96,016
31-Mar-22 96,016 24,004 72,012
31-Mar-23 72,012 24,004 48,008
31-Mar-24 48,008 24,004 24,004
31-Mar-25 24,004 24,004 -

Total 144,024

Format : Cumulative Transition 2B

1-Apr-19 31-Mar-20
Right of Use Asset 144,023.7 120,019.7

Lease Liability 144,023.7 126,276.3

Depreciation for the year 24,003.9

Interest expense for the year 13,529.6

 Infozech Overview

Lease Management - Challenges

Lease Management - Features

Lease Management - Product Flow

IFRS 16 Solution

Key Benefits
 Lease Management System Benefits
“Improve the overall management of your leases by tracking and tracing leases across different geographies”

Drive Business Intelligence with Visibility and Insights

available at your finger tips

4
Secure your lease data with digital checks and
measures
3
IFRS16 Compliant

2
Digitize leases with paperless trail

1
 Contact us

Infozech Software Private Limited

Headquartered at Branch Office

New Delhi, India -110017 Amman, Jordan

E-mail: [email protected] Follow us :