Page 87 - Honeywell Annual Report 2021 comm 10 09 v17a.cdr

Notes to the Financial Statements

For the Year Ended 31 March, 2021 cont’d

Exposure to interest rate risk
Refer to note 31 for details of interest rate risk management for investments in financial instruments and financial risk management.

12. Deferred tax

2021 2020
Deferred tax liability N'000 N'000
Property, plant and equipment (4,940,786) (4,690,918)

The deferred tax assets and the deferred tax liability relate to income tax in the same jurisdiction, and the law allows net
settlement. Therefore, they have been offset in the statement of financial position as follows:

Reconciliation of deferred tax asset/(liability

2021 2020
N'000 N'000
At the beginning of the year (4,690,918) (4,574,689)
Taxable/ (deductible) temporary difference (249,868) (116,231)
(4,940,786) (4,690,918)

13. Trade and Other Payables

Finance instruments:
Trade payables 1,651,147 2,338,789
Unclaimed dividend (13.1) 243,247 222,583
Accrued liabilities (13.2) 15,118,307 15,893,365
Deposit by customers 6,774,580 3,017,733
Pension and sundry taxes 12,160 14,653
23,799,441 21,487,123

The carrying amount of trade and other payables and accrued liabilities is considered to be in line with their fair
value at the reporting date.

13.1. The unclaimed dividend represents amount returned by the Company's Registrar in line with the Securities
and Exchange Commission directive that all unclaimed dividend in the custody of the Registrars should be returned
to the paying Company 12 months after the date of approval of dividend at a general meeting.

13.2. Accrued liabilities represent contractual liabilities that relate respectively to expenses that were incurred
but not paid for at the year end

88 HONEYWELL FLOUR MILLS | ANNUAL REPORT | 2021 World of Possibilities