Company registration number 08485006 (England and Wales)
VIRAMAL LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2022
PAGES FOR FILING WITH REGISTRAR
VIRAMAL LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Statement of changes in equity
3
Notes to the financial statements
4 - 17
VIRAMAL LIMITED
BALANCE SHEET
AS AT
30 APRIL 2022
30 April 2022
- 1 -
2022
2021
Notes
£
£
£
£
Fixed assets
Intangible assets
4
298,868
317,029
Tangible assets
5
8,389
1,859
Investments
6
1,703,037
1,703,037
2,010,294
2,021,925
Current assets
Stocks
20,028
24,818
Debtors
8
211,183
195,466
Cash at bank and in hand
1,070,949
466,571
1,302,160
686,855
Creditors: amounts falling due within one year
9
(713,078)
(370,467)
Net current assets
589,082
316,388
Total assets less current liabilities
2,599,376
2,338,313
Creditors: amounts falling due after more than one year
10
(38,201)
(577,333)
Net assets
2,561,175
1,760,980
Capital and reserves
Called up share capital
13
550,932
34,567
Share premium account
148,077
7,683,908
Equity reserve
-
0
142,000
Merger relief reserve
14
845,062
1,358,034
Profit and loss reserves
1,017,104
(7,457,529)
Total equity
2,561,175
1,760,980

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

VIRAMAL LIMITED
BALANCE SHEET (CONTINUED)
AS AT
30 APRIL 2022
30 April 2022
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 13 September 2022 and are signed on its behalf by:
Mr P Fitzwilliam
Director
Company Registration No. 08485006
VIRAMAL LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2022
- 3 -
Share capital
Share premium account
Equity reserve
Merger relief reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
£
Balance at 1 May 2020
32,986
7,541,666
-
0
-
0
(6,760,585)
814,067
Year ended 30 April 2021:
Loss and total comprehensive income for the year
-
-
-
-
(3,123,844)
(3,123,844)
Issue of share capital
13
1,581
142,242
-
-
-
143,823
Issue of convertible loan
11
-
-
142,000
-
-
142,000
Credit to equity for equity settled share-based payments
12
-
-
-
-
2,426,900
2,426,900
Merger relief reserve arising
-
-
-
1,358,034
-
0
1,358,034
Balance at 30 April 2021
34,567
7,683,908
142,000
1,358,034
(7,457,529)
1,760,980
Year ended 30 April 2022:
Loss and total comprehensive income for the year
-
-
-
-
(3,667,296)
(3,667,296)
Issue of share capital
13
516,365
2,680,627
-
-
-
3,196,992
Conversion of loan to shares
13
-
0
-
0
(142,000)
-
-
(142,000)
Credit to equity for equity settled share-based payments
12
-
-
-
-
1,925,471
1,925,471
Capital reduction
13
-
0
(10,216,458)
-
-
10,216,458
-
0
Bonus share issues
-
-
0
-
(512,972)
-
(512,972)
Balance at 30 April 2022
550,932
148,077
-
0
845,062
1,017,104
2,561,175
VIRAMAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2022
- 4 -
1
Accounting policies
Company information

Viramal Limited is a private company limited by shares incorporated in England and Wales. The registered office is 106 New Bond Street, London, W1S 1DN.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

The company carries out research and development and, to date, has generated only modest revenues. As a consequence, it is reliant on raising external funding to continue its activities. The directors have prepared forecasts to 31 December 2023 which indicate that additional funding is required to support the company’s ongoing activities and, as such, there are uncertainties surrounding going concern. However, since incorporation, the directors have successfully raised external funding and they have a reasonable expectation that sufficient funding will continue to be available. These financial statements have, therefore, been prepared on a going concern basis.

 

1.3
Turnover

Revenue is measured based on the consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties. The company recognises revenue when it transfers control of a product or service to a customer.

 

The company’s revenues from sale of goods comprises the sale of pharmaceutical products. The company considers that all of its performance obligations have been fulfilled once the end customer accepts delivery of the products, since this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due. Consequently, the company recognises revenues from the sale of pharmaceutical products upon confirmation of delivery to the end customer.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

1.4
Research and development expenditure

Research and development expenditure is written off against profits in the year in which it is incurred. Where patent applications are successful, the filing costs associated with the patent are deferred and amortised over the term of the patent.

VIRAMAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2022
1
Accounting policies
(Continued)
- 5 -
1.5
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Intellectual property
Over the life of the patent (20 years straight line)
1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixtures, fittings & equipment
3 years straight line
Computer equipment
3 years straight line
Other assets
2 years straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.7
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

1.8
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

VIRAMAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2022
1
Accounting policies
(Continued)
- 6 -

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

1.9
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

1.10
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans and loans from subsidiaries, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

VIRAMAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2022
1
Accounting policies
(Continued)
- 7 -
1.11
Compound instruments

The component parts of compound instruments issued by the company are classified separately as financial liabilities and equity in accordance with the substance of the contractual arrangement. At the date of issue, the fair value of the liability component is estimated using the prevailing market interest rate for a similar non-convertible instrument. This amount is recorded as a liability on an amortised cost basis using the effective interest method until extinguished upon conversion or at the instrument's maturity date. The equity component is determined by deducting the amount of the liability component from the fair value of the compound instrument as a whole. This is recognised and included in equity net of income tax effects and is not subsequently remeasured.

1.12
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs.

1.13
Taxation

Any tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

Any tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

 

The company has claimed a research and development tax credit in the year.

Deferred tax

Deferred tax is not accounted for where any assets or provisions calculated are considered to be significantly immaterial to the financial statements.

 

Additionally, deferred tax assets calculated arising on trading losses are not recognised due to the uncertainty of the timing of future profits against which these losses will be offset.

1.14
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

1.15
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

VIRAMAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2022
1
Accounting policies
(Continued)
- 8 -
1.16
Share-based payments

Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted.

Share options are valued using the Black Scholes model. Ordinary A shares (growth shares) are valued based on a projected share evolution with a lognormal geometric Brownian motion process and simulated using Monte Carlo.

The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based, for share options on the estimate of shares that will eventually vest, and for growth shares on the expected number of shares to be forfeited under the conditions attached to their grant. A corresponding adjustment is made to equity.

When the terms and conditions of equity-settled share-based payments at the time they were granted are subsequently modified, the fair value of the share-based payment under the original terms and conditions and under the modified terms and conditions are both determined at the date of the modification. Any excess of the modified fair value over the original fair value is recognised over the remaining vesting period in addition to the grant date fair value of the original share-based payment. The share-based payment expense is not adjusted if the modified fair value is less than the original fair value.

Cancellations or settlements (including those resulting from employee redundancies) are treated as an acceleration of vesting and the amount that would have been recognised over the remaining vesting period is recognised immediately.

1.17
Government grants

Government grants received relate to furlough grants made to the company under the UK government's Coronavirus Job Retention Scheme. The grants received offset the payroll costs of furloughed employees and is shown gross as other operating income rather than being netted against the payroll costs shown in administrative expenses.

1.18
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

VIRAMAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2022
- 9 -
3
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2022
2021
Number
Number
Total
13
10
4
Intangible fixed assets
Intellectual property
£
Cost
At 1 May 2021 and 30 April 2022
907,438
Amortisation and impairment
At 1 May 2021
590,409
Amortisation charged for the year
18,161
At 30 April 2022
608,570
Carrying amount
At 30 April 2022
298,868
At 30 April 2021
317,029
VIRAMAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2022
- 10 -
5
Tangible fixed assets
Plant and machinery etc
Other assets
Total
£
£
£
Cost
At 1 May 2021
8,886
2,388
11,274
Additions
9,149
-
0
9,149
Disposals
(1,751)
(2,388)
(4,139)
At 30 April 2022
16,284
-
0
16,284
Depreciation and impairment
At 1 May 2021
8,719
696
9,415
Depreciation charged in the year
927
1,692
2,619
Eliminated in respect of disposals
(1,751)
(2,388)
(4,139)
At 30 April 2022
7,895
-
0
7,895
Carrying amount
At 30 April 2022
8,389
-
0
8,389
At 30 April 2021
167
1,692
1,859
6
Fixed asset investments
2022
2021
£
£
Shares in group undertakings and participating interests
1,703,037
1,703,037
Fixed asset investments not carried at market value

The carrying value of the fixed asset investments represents the cost of the shares in group undertakings and participating interests, less any provision for impairment in accordance with section 14.5 of FRS 102.

VIRAMAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2022
6
Fixed asset investments
(Continued)
- 11 -
Movements in fixed asset investments
Shares in group undertakings and participating interests
£
Cost or valuation
At 1 May 2021 & 30 April 2022
1,862,749
Impairment
At 1 May 2021 & 30 April 2022
159,712
Carrying amount
At 30 April 2022
1,703,037
At 30 April 2021
1,703,037
7
Subsidiaries and associates

Details of the company's subsidiaries and associates at 30 April 2022 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Viramal Scandinavia AB
Sweden
Dormant
Ordinary
100.00
BiGel Limited
England and Wales
Research and experimental development of biotechnology
Ordinary
100.00
8
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
4,703
-
0
Corporation tax recoverable
179,591
118,185
Amounts owed by group undertakings
119
-
0
Other debtors
26,770
77,281
211,183
195,466
VIRAMAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2022
- 12 -
9
Creditors: amounts falling due within one year
2022
2021
Notes
£
£
Bank loans
10,000
3,333
Convertible loans
11
50,000
-
0
Trade creditors
134,566
126,345
Amounts owed to group undertakings
69,717
70,380
Taxation and social security
19,430
6,034
Other creditors
429,365
164,375
713,078
370,467
10
Creditors: amounts falling due after more than one year
2022
2021
Notes
£
£
Bank loans and overdrafts
38,201
46,667
Convertible loans
11
-
0
530,666
38,201
577,333
11
Convertible loan notes
2022
2021
£
£
Liability component of convertible loan notes
50,000
530,666

During the year £667,400 of convertible loans in conjunction with the Future Fund scheme were converted to 49,069 ordinary shares at the discounted value of £13.60 per share and accrued interest of £29,971 on the principal was converted into 1,763 ordinary shares at the value of £17 per share.

A further £50,000 has been raised as unsecured interest-free convertible loan notes which have a maturation of 12 months. Conversion takes place in certain circumstances, including on an exit, or on new funding round, at a discount of 25% to the then share price, or at the maturity date of 30 September 2022 at £17 per share (amended to £1.13 per share following the 14:1 bonus issue described in note 13).

The net proceeds received from the issue of the convertible loan notes during the year have not been split between a financial liability element and an equity component. The impact of this accounting treatment is not considered material to representing the fair value of embedded conversion features.

The loan notes are due for payment within 12 months.

VIRAMAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2022
- 13 -
12
Share-based payment transactions
Details of share options in issue are as follows:
Number of EMI share options
2022
2021
Number
Number
Outstanding at the start of the year
295,627
185,452
Granted
93,420
110,175
Exercised
(4,832)
-
0
Outstanding at the end of the year
384,215
295,627
Exercisable at the end of the year
330,000
270,627
The weighted average fair value of options granted was £16.99 for EMI share option shares. Fair value was measured using the Black-Scholes option pricing model.
Inputs were as follows:
2022
2021
Weighted average share price (£)
17.00
15.00
Weighted average exercise price (£)
0.01
0.01
Expected volatility (%)
36.00
36.00
Expected life (years)
6.00
7.00
Risk free rate (%)
0.88
0.25
Expected dividend yield (%)
-
-
VIRAMAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2022
12
Share-based payment transactions
(Continued)
- 14 -
Number of unapproved share options
2022
2021
Number
Number
Outstanding at the start of the year
-
-
Granted
551,470
-
Exercised
-
-
0
Outstanding at the end of the year
551,470
-
Exercisable at the end of the year
-
-
The weighted average fair value of options granted was £1.12 for unapproved share option shares. Fair value was measured using the Black-Scholes option pricing model.
Inputs were as follows:
2022
2021
Weighted average share price (£)
1.13
-
Weighted average exercise price (£)
0.01
-
Expected volatility (%)
36.00
-
Expected life (years)
6.00
-
Risk free rate (%)
0.88
-
Expected dividend yield (%)
-
-
VIRAMAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2022
12
Share-based payment transactions
(Continued)
- 15 -

Viramal operates an Enterprise Management Incentive (“EMI”) share option scheme. All options have been issued with an exercise price of £0.01. The average remaining contractual life of share options was between 7 and 10 years.

 

During the year ended 30 April 2022 options were granted on 16 August 2021 and 01 November 2021. The weighted average fair value of the options on the measurement date was £16.99 per share

 

In conjunction with the bonus issue of Ordinary shares which took place during the year ended 30 April 2022 the EMI option holders were granted the right to receive 14 bonus Ordinary shares at the time of the exercise of their options in order to avoid the dilutive effect of the bonus issue. No additional share based payment charge has been recorded in the profit and loss account in respect of this right as no additional value was conferred to the option holders.

 

Viramal also operates an unapproved share option scheme. All options have been issued with an exercise price of £0.01. The average remaining contractual life of share options was 10 years.

 

During the year ended 30 April 2022 options were granted on 7 December 2021 and 6 April 2022. The weighted average fair value of the options on the measurement date was £1.12 per share.

 

A Ordinary shares (growth shares)

 

During the year ended 31 April 2021, 57,130 A Ordinary share were issued at par. The Ordinary A shares are classed as growth shares as the company's Articles include a hurdle price below which the holders of the A Ordinary shares do not receive any proceeds from any sale of the company. The weighted average fair value of those instruments at the measurement date was £14.83.

 

During the year ended 30 April 2022 38,871 additional A Ordinary shares were issued at par.

 

A Ordinary shares were valued based on a projected share evolution with a lognormal geometric Brownian motion process, and simulated using Monte Carlo.

 

A bonus issue of 3,422,048 A Ordinary shares was also made in the year to 30 April 2022 in conjunction with the bonus issue of Ordinary shares. As the effect of this bonus issue was merely to avoid any dilutive effect to the holders of the A Ordinary shares there was no additional value conferred to the A Ordinary shareholders, and no additional charge was recorded in the profit and loss account.

 

The following table lists the inputs to the valuation model used in each year:

2022
2021
Attainment measurement period (years)
5.00
5.00
Market value at date of issue (£)
15.00
15.00
Hurdle price (£)
15.00
15.00
Volatility (%)
113.00
104.00
Risk free interest rate (%)
0.94
-

During the year, the company recognised total share-based payment expenses of £1,925,471 (2021 - £2,426,900) which related to equity settled share based payment transactions.

VIRAMAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2022
- 16 -
13
Called up share capital
2022
2021
£
£
Ordinary share capital
Issued and fully paid
51,426,676 (2021: 3,251,143) Ordinary shares of 1p each
514,267
32,512
3,666,480 (2021: 205,561) Ordinary A shares of 1p each
36,665
2,055
550,932
34,567

During the period the following shares were allotted and fully paid:

 

New shares issued

The company issued the following shares :

 

Issue costs of £42,015 have been deducted from share premium.

 

Bonus issue of shares

A bonus issue took place whereby shares were issued in the ratio 14:1 to all holders of Ordinary and A Ordinary shares as at 10 November 2021. In total 47,807,522 Ordinary and 3,422,048 A Ordinary shares were issued utilising £512,296 of the merger relief reserve.

 

A further bonus issue of 67,648 Ordinary shares was made upon the exercise of share options by option holders in order to avoid the dilutive effect of of the bonus issues that took place during the year.

 

Reduction of capital

A reduction of capital also took place on 10 November, as a result of which the company's share premium balance was reduced to nil (as at that date) and the balance credited to retained earnings.

VIRAMAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2022
- 17 -
14
Other reserves

The merger relief reserve relates to the excess of the fair value of shares issued to effect the acquisition of BiGel Limited over their par value.

The equity reserve reflects the equity portion of convertible loan notes.

Movements in both reserves are disclosed in the statement of changes in equity.

15
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified, and included the following paragraph.

Material uncertainty related to going concern

We draw attention to note 1 in the financial statements, which indicates that the nature of the company’s business is such that it is reliant on additional fundraising to continue its activities These conditions indicate that a material uncertainty exists that may cast doubt on the company’s ability to continue as a going concern. As stated in note 1, the company has a successful track record in raising external funding and the directors believe that sufficient funding will continue to be available. Our opinion is not modified in respect of this matter.

 

In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Our evaluation of the directors’ assessment of the entity’s ability to continue to adopt the going concern basis of accounting included reviewing forecasts prepared by the directors and assessing the reliability of the underlying data and assumptions contained therein. We also discussed with management the likelihood of receiving the necessary amount of additional funds and reviewed correspondence connected with planned fundraising.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

The senior statutory auditor was James Wooldridge MSci FCA and the auditor was Mercer & Hole.
16
Related party transactions

The following amounts were outstanding at the reporting end date:

2022
2021
Amounts due to related parties
£
£
Entities over which the entity has control, joint control or significant influence
69,717
70,380
2022-04-302021-05-01false14 September 2022CCH SoftwareCCH Accounts Production 2022.100No description of principal activityThis audit opinion is unqualifiedMr O S BatesDr S FioreMr P FitzwilliamMs T B HuddyDr F LarsenMr E McVeighMs A NiederstaetterMr G Singh SachdevaMr J SynettMr J N ThornileyAMBA Company Secretarial Services LimitedJames Wooldridge MSci FCAMercer & Hole4832084850062021-05-012022-04-30084850062022-04-30084850062021-04-3008485006core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2022-04-3008485006core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2021-04-3008485006core:OtherPropertyPlantEquipment2022-04-3008485006core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment2022-04-3008485006core:OtherPropertyPlantEquipment2021-04-3008485006core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment2021-04-3008485006core:CurrentFinancialInstrumentscore:WithinOneYear2022-04-3008485006core:CurrentFinancialInstrumentscore:WithinOneYear2021-04-3008485006core:Non-currentFinancialInstrumentscore:AfterOneYear2022-04-3008485006core:Non-currentFinancialInstrumentscore:AfterOneYear2021-04-3008485006core:CurrentFinancialInstruments2022-04-3008485006core:CurrentFinancialInstruments2021-04-3008485006core:Non-currentFinancialInstruments2022-04-3008485006core:Non-currentFinancialInstruments2021-04-3008485006core:ShareCapital2022-04-3008485006core:ShareCapital2021-04-3008485006core:SharePremium2022-04-3008485006core:SharePremium2021-04-3008485006core:OtherReservesSubtotal2022-04-3008485006core:OtherReservesSubtotal2021-04-3008485006core:OtherMiscellaneousReserve2022-04-3008485006core:OtherMiscellaneousReserve2021-04-3008485006core:RetainedEarningsAccumulatedLosses2022-04-3008485006core:RetainedEarningsAccumulatedLosses2021-04-3008485006core:ShareCapital2020-04-3008485006core:SharePremium2020-04-3008485006core:OtherReservesSubtotalcore:RestatedAmount2020-04-3008485006core:OtherMiscellaneousReserve2020-04-3008485006core:RetainedEarningsAccumulatedLosses2020-04-30084850062020-04-3008485006core:ShareCapitalOrdinaryShares2022-04-3008485006core:ShareCapitalOrdinaryShares2021-04-3008485006bus:Director52021-05-012022-04-3008485006core:RetainedEarningsAccumulatedLosses2020-05-012021-04-30084850062020-05-012021-04-3008485006core:RetainedEarningsAccumulatedLosses2021-05-012022-04-3008485006core:ShareCapital2020-05-012021-04-3008485006core:SharePremium2020-05-012021-04-3008485006core:ShareCapital2021-05-012022-04-3008485006core:SharePremium2021-05-012022-04-3008485006core:OtherReservesSubtotal2020-05-012021-04-3008485006core:OtherReservesSubtotal2021-05-012022-04-3008485006core:SharePremium12021-05-012022-04-3008485006core:IntangibleAssetsOtherThanGoodwill2021-05-012022-04-3008485006core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2021-05-012022-04-3008485006core:FurnitureFittings2021-05-012022-04-3008485006core:ComputerEquipment2021-05-012022-04-3008485006core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment2021-05-012022-04-3008485006core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2021-04-3008485006core:OtherPropertyPlantEquipment2021-04-3008485006core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment2021-04-30084850062021-04-3008485006core:OtherPropertyPlantEquipment2021-05-012022-04-3008485006core:Associate12021-05-012022-04-3008485006core:Associate22021-05-012022-04-3008485006core:Associate112021-05-012022-04-3008485006core:Associate222021-05-012022-04-3008485006core:WithinOneYear2022-04-3008485006core:WithinOneYear2021-04-3008485006bus:PrivateLimitedCompanyLtd2021-05-012022-04-3008485006bus:SmallCompaniesRegimeForAccounts2021-05-012022-04-3008485006bus:FRS1022021-05-012022-04-3008485006bus:Audited2021-05-012022-04-3008485006bus:Director12021-05-012022-04-3008485006bus:Director22021-05-012022-04-3008485006bus:Director32021-05-012022-04-3008485006bus:Director42021-05-012022-04-3008485006bus:Director62021-05-012022-04-3008485006bus:Director72021-05-012022-04-3008485006bus:Director82021-05-012022-04-3008485006bus:Director92021-05-012022-04-3008485006bus:Director102021-05-012022-04-3008485006bus:CompanySecretary12021-05-012022-04-3008485006bus:FullAccounts2021-05-012022-04-30xbrli:purexbrli:sharesiso4217:GBP