Company registration number 11276956 (England and Wales)
SISL INFOTECH (UK) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
SISL INFOTECH (UK) LIMITED
COMPANY INFORMATION
Directors
Ankur Gupta
Sagar Nangia
Company number
11276956
Registered office
The Charter Building
Charter Place
Uxbridge
UB8 1JG
Accountants
SBM Associates Limited
24 Wandsworth Road
London
SW8 2JW
SISL INFOTECH (UK) LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Profit and loss account
3
Group statement of comprehensive income
4
Group balance sheet
5 - 6
Company balance sheet
7 - 8
Group statement of changes in equity
9
Company statement of changes in equity
10
Group statement of cash flows
11
Company statement of cash flows
12
Notes to the financial statements
13 - 27
SISL INFOTECH (UK) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -
The directors present the strategic report for the year ended 31 March 2023.
Review of the business
The directors are satisfied with the results for the year and look forward continuing profitability.
Principal risks and uncertainties
The principal risks and uncertainties facing the business are:
The principal financial risk stems from the group’s exposure to customer credit. The directors have secured credit risk cover on all customer accounts with more than £10,000 annual revenue. The directors and the company’s bankers review the concentration in credit accounts for large customers, and the extended credit terms, on a regular basis and have concluded that no further insurance arrangement is required.
The nature of the business occasionally exposes the group to currency fluctuations. The directors regularly review the currency position of the group and, where appropriate, take steps to minimise realised currency losses. The directors consider that the scale of the group's operations does not require formal arrangements such as currency contracts.
Development and performance
The group has increased its focus on geographic expansion, and is setting up additional wholly owned subsidiaries overseas to extrapolate the current successful business model to a larger customer base in new territories.
The focused service offerings in 2021-22 in the areas of global asset lifecycle services and the provisioning of global field sales operatives are expected to increase the services turnover and reduce the business’ reliance on channel trading.
Key performance indicators
The results for the year are shown in the Group Statement of Comprehensive Income and show a group profit of £449,634 (2022: £224,364).
The Group Balance Sheet shows that the shareholders' funds have increased by £449,474 during the year and stand at £775,606 at the year end.
Sagar Nangia
Director
15 November 2023
SISL INFOTECH (UK) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
The directors present their annual report and financial statements for the year ended 31 March 2023.
Principal activities
The principal activity of the company and group continued to be that of providing IT solutions and services to businesses.
Results and dividends
The results for the year are set out on page 3.
No ordinary dividends were paid. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Ankur Gupta
Sagar Nangia
Small companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
On behalf of the board
Sagar Nangia
Director
15 November 2023
SISL INFOTECH (UK) LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -
2023
2022
Notes
£
£
Turnover
3
5,722,319
2,852,858
Cost of sales
(4,118,284)
(2,191,933)
Gross profit
1,604,035
660,925
Administrative expenses
(1,068,280)
(428,601)
Other operating income
11,716
10,437
Operating profit
4
547,471
242,761
Interest receivable and similar income
7
727
Interest payable and similar expenses
8
(3,132)
(3,154)
Profit before taxation
544,339
240,334
Tax on profit
9
(90,428)
(15,970)
Profit for the financial year
23
453,911
224,364
Profit for the financial year is all attributable to the owners of the parent company.
SISL INFOTECH (UK) LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
- 4 -
2023
2022
£
£
Profit for the year
453,911
224,364
Other comprehensive income
Currency translation loss taken to retained earnings
(2,271)
Total comprehensive income for the year
451,640
224,364
Total comprehensive income for the year is all attributable to the owners of the parent company.
SISL INFOTECH (UK) LIMITED
GROUP BALANCE SHEET
AS AT 31 MARCH 2023
31 March 2023
- 5 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
10
18,088
25,033
Current assets
Stocks
13
92,162
10,995
Debtors
14
1,715,160
799,596
Cash at bank and in hand
249,856
120,764
2,057,178
931,355
Creditors: amounts falling due within one year
15
(1,259,764)
(590,217)
Net current assets
797,414
341,138
Total assets less current liabilities
815,502
366,171
Creditors: amounts falling due after more than one year
16
(34,927)
(40,039)
Provisions for liabilities
Deferred tax liability
18
2,803
(2,803)
-
Net assets
777,772
326,132
Capital and reserves
Called up share capital
21
35,732
35,732
Share premium account
22
298,908
298,908
Profit and loss reserves
23
443,132
(8,508)
Total equity
777,772
326,132
For the financial year ended 31 March 2023 the group was entitled to exemption from audit under section 477 of the Companies Act 2006.
Directors' responsibilities under the Companies Act 2006:
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476;
The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.
These financial statements have been prepared in accordance with the provisions applicable to groups and companies subject to the small companies regime.
SISL INFOTECH (UK) LIMITED
GROUP BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2023
31 March 2023
- 6 -
The financial statements were approved by the board of directors and authorised for issue on 15 November 2023 and are signed on its behalf by:
15 November 2023
Sagar Nangia
Director
Company registration number 11276956 (England and Wales)
SISL INFOTECH (UK) LIMITED
COMPANY BALANCE SHEET
AS AT 31 MARCH 2023
31 March 2023
- 7 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
10
11,210
13,403
Investments
11
255
106
11,465
13,509
Current assets
Stocks
13
70,309
594
Debtors
14
998,637
542,854
Cash at bank and in hand
124,832
76,722
1,193,778
620,170
Creditors: amounts falling due within one year
15
(629,722)
(314,752)
Net current assets
564,056
305,418
Total assets less current liabilities
575,521
318,927
Creditors: amounts falling due after more than one year
16
(34,927)
(40,039)
Provisions for liabilities
Deferred tax liability
18
2,803
(2,803)
-
Net assets
537,791
278,888
Capital and reserves
Called up share capital
21
35,732
35,732
Share premium account
22
298,908
298,908
Profit and loss reserves
23
203,151
(55,752)
Total equity
537,791
278,888
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £258,903 (2022 - £178,441 profit).
For the financial year ended 31 March 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
SISL INFOTECH (UK) LIMITED
COMPANY BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2023
31 March 2023
- 8 -
The financial statements were approved by the board of directors and authorised for issue on 15 November 2023 and are signed on its behalf by:
15 November 2023
Sagar Nangia
Director
Company registration number 11276956 (England and Wales)
SISL INFOTECH (UK) LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 9 -
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
Balance at 1 April 2021
35,732
298,908
(232,872)
101,768
Year ended 31 March 2022:
Profit and total comprehensive income
-
-
224,364
224,364
Balance at 31 March 2022
35,732
298,908
(8,508)
326,132
Year ended 31 March 2023:
Profit for the year
-
-
453,911
453,911
Other comprehensive income:
Currency translation differences
-
-
(2,271)
(2,271)
Total comprehensive income
-
-
451,640
451,640
Balance at 31 March 2023
35,732
298,908
443,132
777,772
SISL INFOTECH (UK) LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 10 -
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
Balance at 1 April 2021
35,732
298,908
(234,193)
100,447
Year ended 31 March 2022:
Profit and total comprehensive income for the year
-
-
178,441
178,441
Balance at 31 March 2022
35,732
298,908
(55,752)
278,888
Year ended 31 March 2023:
Profit and total comprehensive income
-
-
258,903
258,903
Balance at 31 March 2023
35,732
298,908
203,151
537,791
SISL INFOTECH (UK) LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 11 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
26
174,666
84,969
Interest paid
(3,132)
(3,154)
Income taxes paid
(13,617)
(1,991)
Net cash inflow from operating activities
157,917
79,824
Investing activities
Purchase of tangible fixed assets
(3,218)
(34,342)
Interest received
727
Net cash used in investing activities
(3,218)
(33,615)
Financing activities
Repayment of bank loans
(23,336)
(10,932)
Net cash used in financing activities
(23,336)
(10,932)
Net increase in cash and cash equivalents
131,363
35,277
Cash and cash equivalents at beginning of year
120,764
85,487
Effect of foreign exchange rates
(2,271)
Cash and cash equivalents at end of year
249,856
120,764
SISL INFOTECH (UK) LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 12 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
52,438
12,921
Interest paid
(3,132)
(3,154)
Net cash inflow from operating activities
49,306
9,767
Investing activities
Purchase of tangible fixed assets
(3,218)
(16,767)
Proceeds from disposal of subsidiaries
(149)
(84)
Interest received
25,507
17,487
Net cash generated from investing activities
22,140
636
Financing activities
Repayment of bank loans
(23,336)
(10,932)
Net cash used in financing activities
(23,336)
(10,932)
Net increase/(decrease) in cash and cash equivalents
48,110
(529)
Cash and cash equivalents at beginning of year
76,722
77,251
Cash and cash equivalents at end of year
124,832
76,722
SISL INFOTECH (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 13 -
1
Accounting policies
Company information
SISL Infotech (UK) Ltd (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is The Charter Building, Charter Place, Uxbridge, UB8 1JG.
The group consists of SISL Infotech (UK) Ltd and all of its subsidiaries.
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.
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
Business combinations
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.
1.3
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company SISL Infotech (UK) Ltd together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 March 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
1.4
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
SISL INFOTECH (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 14 -
1.5
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.6
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
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:
Plant and equipment
25%
Fixtures and fittings
25%
Computers
25%
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 recognised in the profit and loss account.
1.7
Fixed asset investments
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.8
Impairment of fixed assets
At each reporting period end date, the group reviews the carrying amounts of its tangible 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.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
SISL INFOTECH (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 15 -
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.
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.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.10
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.11
Financial instruments
The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
SISL INFOTECH (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 16 -
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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 group after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
SISL INFOTECH (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 17 -
Derecognition of financial liabilities
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
1.12
Equity instruments
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
1.13
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The 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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
1.14
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.15
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.16
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
1.17
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.
SISL INFOTECH (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 18 -
2
Judgements and key sources of estimation uncertainty
In the application of the group’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.
3
Turnover and other revenue
The group's turnoveriderives from one class of business.
2023
2022
£
£
Turnover analysed by class of business
Turnover
5,722,319
2,852,858
2023
2022
£
£
Other revenue
Interest income
-
727
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange (gains)/losses
(14,858)
956
Depreciation of owned tangible fixed assets
10,163
10,538
Operating lease charges
26,820
4,470
5
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
8
7
8
7
SISL INFOTECH (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
5
Employees
(Continued)
- 19 -
Their aggregate remuneration comprised:
Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
390,000
232,000
390,000
232,000
Social security costs
40,267
22,118
40,267
22,118
Pension costs
3,474
1,022
3,474
1,022
433,741
255,140
433,741
255,140
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
137,159
128,311
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
243
Interest receivable from group companies
484
Total income
727
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
-
727
8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
-
906
Interest on invoice finance arrangements
3,132
2,004
Other interest on financial liabilities
-
244
3,132
3,154
SISL INFOTECH (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 20 -
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
47,002
15,970
Foreign current tax on profits for the current period
40,623
Total current tax
87,625
15,970
Deferred tax
Origination and reversal of timing differences
2,803
Total tax charge
90,428
15,970
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Profit before taxation
544,339
240,334
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
103,424
45,663
Tax effect of expenses that are not deductible in determining taxable profit
496
144
Tax effect of utilisation of tax losses not previously recognised
(12,234)
(34,048)
Change in unrecognised deferred tax assets
1,891
Deferred tax adjustments in respect of prior years
2,547
Foreign tax rate differences
(4,479)
2,320
Changes in tax rates
674
Taxation charge
90,428
15,970
SISL INFOTECH (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 21 -
10
Tangible fixed assets
Group
Plant and equipment
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 1 April 2022
26,629
9,372
36,001
Additions
275
2,943
3,218
At 31 March 2023
275
29,572
9,372
39,219
Depreciation and impairment
At 1 April 2022
8,403
2,565
10,968
Depreciation charged in the year
69
7,751
2,343
10,163
At 31 March 2023
69
16,154
4,908
21,131
Carrying amount
At 31 March 2023
206
13,418
4,464
18,088
At 31 March 2022
18,226
6,807
25,033
Company
Plant and equipment
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 1 April 2022
9,054
9,372
18,426
Additions
275
2,943
3,218
At 31 March 2023
275
11,997
9,372
21,644
Depreciation and impairment
At 1 April 2022
2,458
2,565
5,023
Depreciation charged in the year
69
2,999
2,343
5,411
At 31 March 2023
69
5,457
4,908
10,434
Carrying amount
At 31 March 2023
206
6,540
4,464
11,210
At 31 March 2022
6,596
6,807
13,403
11
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
12
255
106
SISL INFOTECH (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
11
Fixed asset investments
(Continued)
- 22 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 April 2022
106
Additions
149
At 31 March 2023
255
Carrying amount
At 31 March 2023
255
At 31 March 2022
106
12
Subsidiaries
Details of the company's subsidiaries at 31 March 2023 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
SISL Infotech (US) Inc
USA
Ordinary
100.00
-
SISL Infotech (BV)
Netherlands
Ordinary
100.00
-
SISL Infotech Canada Inc
Canada
Ordinary
0
100.00
SISL Global Italia SRL
Italy
Ordinary
100.00
-
SISL Global PTE Ltd
Singapore
Ordinary
100.00
-
13
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
92,162
10,995
70,309
594
14
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,544,639
725,216
491,668
434,513
Amounts owed by group undertakings
3,230
-
388,999
96,019
Other debtors
79,930
72,227
33,405
10,169
Prepayments and accrued income
87,361
2,153
84,565
2,153
1,715,160
799,596
998,637
542,854
SISL INFOTECH (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 23 -
15
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
17
84,234
102,458
84,234
102,458
Payments received on account
5,000
5,000
Trade creditors
763,485
395,425
268,645
161,516
Amounts owed to group undertakings
12,752
4,424
57,277
Corporation tax payable
87,987
13,979
47,002
Other taxation and social security
59,075
24,427
28,635
16,658
Deferred income
19
62,077
62,077
Other creditors
97,325
20,424
Accruals and deferred income
92,829
44,504
61,428
29,120
1,259,764
590,217
629,722
314,752
16
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
17
34,927
40,039
34,927
40,039
17
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
119,161
142,497
119,161
142,497
Payable within one year
84,234
102,458
84,234
102,458
Payable after one year
34,927
40,039
34,927
40,039
The company took an unsecured “Bounce Back” Loan of £50,000 in June 2020. The loan is repayable in 108 monthly instalments, commencing June 2021. Interest is charged at 2.5% per annum.
The company has a sales finance facility with its bank, which is secured on the company’s’ assets and personal guarantees from the directors.
SISL INFOTECH (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 24 -
18
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
2,803
-
Liabilities
Liabilities
2023
2022
Company
£
£
Accelerated capital allowances
2,803
-
Group
Company
2023
2023
Movements in the year:
£
£
Asset at 1 April 2022
-
-
Charge to profit or loss
2,803
2,803
Liability at 31 March 2023
2,803
2,803
19
Deferred income
Group
Company
2023
2022
2023
2022
£
£
£
£
Other deferred income
62,077
-
62,077
-
20
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
3,474
1,022
The company has established a workplace pension scheme for employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
SISL INFOTECH (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 25 -
21
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of 0p each
6,821
6,821
6,821
6,821
Ordinary B shares of 0p each
6,821
6,821
6,821
6,821
Ordinary C shares of 0p each
22,090
22,090
22,090
22,090
35,732
35,732
35,732
35,732
Each Ordinary A, B and C share is entitled to one vote, is entitled pari passu to dividends. and has equal rights on a distribution on a winding up of the company or proceeds of sale or other liquidity event. The Ordinary Shares are not redeemable.
22
Share premium account
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning and end of the year
298,908
298,908
298,908
298,908
23
Profit and loss reserves
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning of the year
(8,508)
(232,872)
(55,752)
(234,193)
Profit for the year
453,911
224,364
258,903
178,441
Currency translation differences
(2,271)
At the end of the year
443,132
(8,508)
203,151
(55,752)
SISL INFOTECH (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 26 -
24
Operating lease commitments
Lessee
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
22,350
-
22,350
-
Between two and five years
-
49,170
-
49,170
22,350
49,170
22,350
49,170
25
Controlling party
The parent company of SISL Infotech (UK) Ltd is SISL Infotech Pvt Ltd, whose registered office is Fuel Coal Depot, Near Post Office Sector IV, DDA Market Road, Rama Krishna Puram, New Delhi, DL 110022, India.
26
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
453,911
224,364
Adjustments for:
Taxation charged
90,428
15,970
Finance costs
3,132
3,154
Investment income
(727)
Depreciation and impairment of tangible fixed assets
10,163
10,538
Movements in working capital:
(Increase)/decrease in stocks
(81,167)
18,271
Increase in debtors
(915,564)
(248,724)
Increase in creditors
551,686
62,123
Increase in deferred income
62,077
-
Cash generated from operations
174,666
84,969
SISL INFOTECH (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 27 -
27
Cash generated from operations - company
2023
2022
£
£
Profit for the year after tax
258,903
178,441
Adjustments for:
Taxation charged
49,805
Finance costs
3,132
3,154
Investment income
(25,507)
(17,487)
Depreciation and impairment of tangible fixed assets
5,411
4,593
Movements in working capital:
(Increase)/decrease in stocks
(69,715)
15,793
Increase in debtors
(455,783)
(199,516)
Increase in creditors
224,115
27,943
Increase in deferred income
62,077
-
Cash generated from operations
52,438
12,921
28
Analysis of changes in net funds/(debt) - group
1 April 2022
Cash flows
Exchange rate movements
31 March 2023
£
£
£
£
Cash at bank and in hand
120,764
131,363
(2,271)
249,856
Borrowings excluding overdrafts
(142,497)
23,336
-
(119,161)
(21,733)
154,699
(2,271)
130,695
29
Analysis of changes in net funds/(debt) - company
1 April 2022
Cash flows
31 March 2023
£
£
£
Cash at bank and in hand
76,722
48,110
124,832
Borrowings excluding overdrafts
(142,497)
23,336
(119,161)
(65,775)
71,446
5,671
2023-03-312022-04-01falseCCH SoftwareCCH Accounts Production 2023.200Ankur GuptaSagar 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