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COMPANY INFORMATION
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CONTENTS
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GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023
The directors present their strategic report of the company and the group for the year ended 31 March 2023.
Business Model - “What We Do”
DSLUK Holdings Limited (“Damco Group”) is a leading IT services and consulting group helping businesses leverage technologies, outperform their competition, and acquire sustainable growth. Damco Group is the trusted technology partner of businesses worldwide enabling them to leverage IT as a strategic asset. Group have developed hundreds of products and applications, redefined countless processes, built numerous technology teams and systems, and delivered significant financial results to our customers. The group has been fortunate to work across various verticals and industry leaders amongst them and have gained experience of most complex business environments. Damco Group have proven capabilities in new and emerging technologies and extensive experience across a broad range of industries and domains, which enables us to deliver world-class, secure, scalable, and reliable business solutions. We at ‘Damco Group’ believe that “Simplicity is the ultimate sophistication” and always strive to build scalable technology solutions which fulfill the requirements of our customers in the agilest and simplest of ways.
Business Model — “How We Operate”
Damco Group, we call as “The Powerhouse of IT Services & Solutions”. > Client First Mindset Damco Group is driven by client-first culture. We are customer-focused and exhibit customer centricity in our processes, behaviour, and attitude. > We solve problems We are always up for a challenge. We like to figure out how things work, and how to make them better and faster. With our strong capabilities in Product Development, Cloud Applications, Big Data, Mobility, Digital & IoT platforms, we deliver solutions that best solve client’s business challenges. > We are Agile and Collaborative Our internal tools and collaboration platforms facilitate real-tune knowledge management, global sharing, and ability to embrace change in rapidly changing technology and business environment. > We ensure success, always Our clients’ success is our success. We aim to meet this vision consistently for every engagement of burs and go the extra mile to ensure success for you, always. > Under one roof Damco Group offers full services portfolio in technology and business consulting. From implementing CRMs to financial management systems to government apps to e-commerce development, we do it all with sincerity and passion. > We deliver value In the competitive IT marketplace, we add value to our clients’ businesses by the creation of outstanding customer experiences, while reducing cost and helping to drive growth.
Business Model - “Internal Resources”
• Physical assets - we operate from offshore delivery centers in India in various locations to cater to client demands globally. Offshore Delivery Centers are ISO certified facilities (9001: 2015 and 27001: 2013) and have best of class operational, structural, HR and employee safety practices. • Funding - We fund our business primarily through shareholders’ funds only. Financing is resorted only for working capital needs. • Work force - We have strongly resilient, highly skilled, and dedicated work force truly aligned with organisational goals.
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GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
Business Model — “Strong Stakeholders’ Relationship” Our business relies on strong relationships with all our stakeholders which include: • Our clients - who connect with us to bring up best of operational excellence and processes in terms of speed, accuracy, cost effectiveness and reliability. • Our Suppliers - who have complementary experience, skills, and resources and with whom we agree mutually beneficial contractual arrangements and, wherever possible, take advantage of economies of scale and use sustainable and global sourcing opportunities. • Our Banking channel partners who stood by us as a financing partner and assistance in terms of wide inclusion of financial products in our systems and processes to bring ease, speed, compliance, and safety. Business Model — “How we create value” We combine our extensive skills, knowledge, and capabilities with innovation and automation to ensure we continuously create value for shareholders and wider stakeholders alike.
Group Financial KPIs
The key group financial indicators during the year were as follows: 2023 2022 Change £ £ % Revenue 9,272,239 22,507,585 -58.80% Operating profit 792,389 4,545,986 -82.57% Profit after tax (PAT) 659,810 3,641,296 -81.88% Equity shareholders' funds 6,407,856 5,789,792 10.68% Financial performance results in the current year vis-à-vis prior year are not directly comparable on account of group restructuring which had taken place w.e.f. Oct 14, 2021. The current year’s results are for Damco Group comprising DSLUK Holdings Limited and its subsidiary Damco Solutions Limited & Damco Soft Private Limited (subsidiary of Damco Solutions Limited). Whereas, last year’s results included Damco Group comprising DSLUK Holdings Limited and its subsidiary Damco Solutions Limited & Damco Soft Private Limited (subsidiary of Damco Solutions Limited) for entire financial year and TestingXperts Group for the period 1 April 2021 to 14 October 2021, comprising TestingXperts Limited and its step-down subsidiaries as named below; • TestingXperts Private Limited, India • TestingXperts Inc., USA • TestingXperts B.V., Netherlands • TestingXperts Pte Ltd., Singapore
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GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
A key Damco Group differentiator is our strategic global delivery model, which allows us to draw on the benefits of using resources from around the world including scalable, standardized processes, methods, and tools; specialized technology skills; cost advantages; proximity to clients; and time-zone advantages to deliver high-quality solutions under demanding time frameworks, emphasizing quality and reduced risk.
Damco Group has proven to be a trusted partner for businesses worldwide enabling them to leverage the services as a strategic asset. Empowered by expertise, immaculate execution capabilities, and unwavering focus on the customer needs, Damco Group has been able to nurture success in multiple industry verticals, redefined countless processes, built numerous specialized teams and delivered significant financial results to its customers. Clients can count on Damco Group to deliver reliable, scalable, world-class services, and solutions best suited to their business needs. As an organization that thrives on building strong lasting relationships, Damco Group is committed to above-and-beyond services that drive client and partner success. Damco Group partners with leading organizations ranging from start-ups to large enterprises across various industries globally to deliver ‘ready for business’ systems. Damco Group, with specialist software development approach, and its Offshore pool of skilled technical software engineers is helping its clients enhance their business productivity to next levels through Digital Transformation. With a large portfolio of services we provide, we assure best quality and timely engagements. Damco Group provides the following benefits to its customers across the globe: • Cost Reduction • Customer Centric • Agility and Flexibility • Innovative Solutions • Faster time to Market • Error free solutions
The group has established a task force that meets quarterly, and which evaluates the group's risk appetite. The principal risks and uncertainties facing the business activities are broadly grouped as - technology ownership and competition, legislative, and financial risk and other risks as listed below:
Competitive Risks Our success is much dependent on our ability to maintain adequate protection of our intellectual property and business know-how, for which we remain constantly and pro-actively active. Our revenue and profitability may be affected due to similar service offerings by our competitors. We make good investments in innovation and solutions to address these requirements and maintain differentiation for us in the marketplace. Legislative Risks There is no as such identified legal risk by the group. Financial risk The Group does not use any derivatives, including forward contracts. Further, maintenance of adequacy of resources is a kind of risk which every organization faces. Adequacy of financial resources: The Group continues to rigorously manage its cash resources, operating expenses, assets, and the appropriate level of expenditure as the business grows.
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GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
Adverse Economic Conditions Risks
Rising inflation and the overall downturn in target markets is still an external risk and as of now its impact on the Group is indirect and insignificant. Due to the challenging general business environment, specifically weaker macroeconomic conditions and inflationary pressures, there may be deferred or reduced enterprise spend and capital investment by our current or potential customers. Rapid Growth Risks The anticipated rapid growth of our business may place a significant strain on our management, operational, and financial resources. If we are unable to address this growth in a timely and profitable manner, as a result of not being able to recruit skilled employees or effectively scale our operations, there could be a material adverse impact on our financial position. Investing in operational excellence: The management is continually reviewing and enhancing our internal controls and processes. A critical objective of this analysis is to ensure that capability to scale operations is a core consideration within each business function, and that all functions inter-operate efficiently as required to deliver and support our services at scale. Cyber Security Risk Damco group continuously evaluates the cyber risks, malicious attacks or disruptive forces on our systems to take timely preventive measures to safeguard its assets and ensure smooth business continuity. Workers are continuously kept aware of IT Policies and potential threats and risks. Asset Failure Risk There is no known risk of catastrophic asset failure or any environmental event. Key Executives and Talent Retention Risks The Group is dependent on its senior management and skilled technical personnel. Whilst much of the Group’s know-how is documented, senior managers and members of the technical team each contribute valuable skills and know-how to the business and, despite contractual confidentiality agreements in favour of the Group, there can be no guarantee that those individuals will not join competitors or establish themselves in competition with the Group in the future. Failure to retain the services of any of these people may adversely affect the Group’s ability to achieve its commercial objectives. In addition, as the Group continues to expand, it is essential that it is able to attract employees of a high caliber to drive its future success. Continuously developing the human resource function: The HR function is leading new initiatives and enhancing existing processes regarding recruitment activities, employment practices and staff benefits. Investment will continue to be made in human resource systems and procedures to ensure compliance with legislation and effective interactions with employees.
There has been stable year under review/reported year of operational performance. This year gives us an outlook that we are in an enviable position entering the more fruitful period ahead. We have effective service solutions, a stable and motivated sales team, and enthusiastic human capital, that has made our target market even more exciting. We are quite confident that we can build a scalable business, continue to service our customers’ needs, achieve operational excellence, and bring further reliable, speedy and cost-effective solutions to the market.
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GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
Damco Group experienced the positive benefits arising of maintaining flexibility in ‘Hybrid mode’, thus emerged as a resilient and strong winner. Based on this experience, Damco Group is continuing, for all employees (except for some crucial & essential roles) working back to the office place, as voluntary.
Post pandemic, Damco Group has more strongly valued that “Employee Well Being” (including their family) is a strong priority and foundation for its business success. Enhanced Human Capital Initiatives will be strengthened further through a holistic approach and combination of measures of ‘Employee Engagement’, ‘Career Development’ and ‘Diversity, Equality & Inclusion’. To support this belief and put the same in practice, numerous and free of cost well-being services for employees and their families continued virtually and in-person. Virtual events and well-being programs fostered meaningful connections between leaders and teams, and employees and families. We are continuously enriching and expanding our employee-centric culture, with a belief deep rooted always and across in our system that “our people are key to our progress”. We give total empowerment to our people to empower themselves and implement value driven ideas, along with a comprehensive rewards and recognition atmosphere. In its journey and out of gained experience & knowledge, while coming back to normal times, group is continuously doing proactive efforts to care, support, empower, build, and safeguard the human capital, minimize financial and credibility risk, keep intact supply chain resilience, minimize impact on clients and to provide support to all stakeholders around.
The Directors’ consideration of the longer-term viability of the group is an extension of our business planning process. The process includes financial forecasting, a strict risk management assessment and regular budget reviews and scenario planning incorporating industry trends, considering any emerging issues and economic conditions.
Our business strategy aims to enhance our long-term prospects by making sure our operations and finances are sustainable.
We would like to congratulate and thank all employees, clients, and all other stakeholders for their contribution in winning this recognition and maintaining the growth acceleration. Directors will continue to focus on the key issues and collectively seek to make wise decisions. In an ever-changing world, we pledge to you that whatever lies ahead, we have the best interests of your group, its customers, and its people central to our deliberations.
This report was approved by the board and signed on its behalf.
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DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
The directors present their report and the financial statements for the year ended 31 March 2023.
The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Group's financial statements and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the year, after taxation, amounted to £659,810 (2022 - £3,641,296).
An interim dividend of £0.01 per share was paid on 21 April 2022. The directors recommended that no final dividend be paid. The total distribution of dividends for the year ended 31 March 2023 will be £50,000.
The directors who served during the year were:
Details of financial risk management, principal activities, and future developments have been disclosed in the strategic report.
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DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
The auditors, Menzies LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DSLUK HOLDINGS LIMITED
We have audited the financial statements of DSLUK Holdings Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 March 2023, which comprise the Consolidated statement of comprehensive income, the Consolidated statement of financial position, the Company statement of financial position, the Consolidated statement of cash flows, the Consolidated statement of changes in equity, the Company statement of changes in equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
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.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DSLUK HOLDINGS LIMITED (CONTINUED)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Group strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the Directors' report.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DSLUK HOLDINGS LIMITED (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Group financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
The Group is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations were most significant: - The Companies Act 2006; - Financial Reporting Standard FRS 102; - UK and India employment legislation; - UK and India tax legislation; - STPI regulations; and - GST and corporate law. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items. We understood how the Company is complying with those legal and regulatory frameworks by making inquiries to management. The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. The assessment did not identify any issues in this area. We assessed the susceptibility of the Company financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included: • Identifying and assessing the design and effectiveness of controls management has in place to prevent and detect fraud; or • Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process; or • Challenging assumptions and judgements made by management in its significant accounting estimates; and • Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations. As a result of the above procedures, we considered the opportunities and incentives that may exists within the organisation for fraud and identified the greatest potential for fraud would be the posting of unusual journals and complex transactions or the manipulation of accounting estimates.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DSLUK HOLDINGS LIMITED (CONTINUED)
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants
Statutory Auditor
Lynton House
7-12 Tavistock Square
London
WC1H 9LT
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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
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CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2023
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 20 to 34 form part of these financial statements.
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COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2023
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 20 to 34 form part of these financial statements.
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
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COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
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CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
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CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
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CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 MARCH 2023
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
DSLUK Holdings Limited is a private company, limited by shares, registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page. The company's principal place of business is situated at 3rd Floor, Belmont, Belmont Road, Uxbridge, UB8 1HE, United Kingdom.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of financial position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.
The directors believe that the company is well placed to manage its business risks successfully despite the current uncertain economic outlook. The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The Directors consider it appropriate to adopt the going concern basis in preparing the annual financial statements.
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
- the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d); and - the requirements of Section 33 Related Party Disclosures paragraph 33.7. This information is included in these consolidated financial statements as at 31 March 2023.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
Financial statements of foreign subsidiaries The assets and liabilities of foreign subsidiaries are translated from the foreign subsidiary’s functional currency to the Group’s reporting currency, GBP, at foreign exchange rates prevailing at the balance sheet date. Revenues and expenses of foreign subsidiaries are translated to GBP at average rates that approximate the foreign exchange rates prevailing at each of the transaction dates. Translation differences arising from the translation of the net investment in foreign subsidiaries are recognised in other comprehensive income.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
2.Accounting policies (continued)
Current or deferred taxation assets and liabilities are not discounted. Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. Deferred tax Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
Intangible assets are amortised on a straight-line basis over their useful lives. The useful lives of intangible assets are as follows:
The estimated useful lives range as follows:
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
2.Accounting policies (continued)
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis. Land and buildings were valued using cost model. Depreciation is provided at the following, annual rates in order to write off each asset over its estimated useful life. Damco Soft Private Limited Freehold property Building - 4.87% reducing balance basis Building premises- 45.07% reducing balance Plant & Machinery Plant & Machinery -18.10% reducing balance basis Office Equipment - 45.07% reducing balance basis Computer Equipment Computer Networking - 39.30% reducing balance basis Computers (Desktop, Laptop, etc.) - 63.16% reducing balance basis Furniture & Fixtures Furniture & Fixtures - 25.89% reducing balance basis Motor Vehicles Vehicles- 31.23% reducing balance basis Long Leasehold is being amortised over remaining unexpired life on straight line basis. Damco Solutions Limited Plant and machinery - 33% straight-line basis Fixture and fittings - 33% straight-line basis Computer equipment - 33% straight-line basis Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss. Investments in subsidiaries are measured at cost less impairment.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
2.Accounting policies (continued)
Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset’s cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.
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 entity after deducting all of its financial liabilities.
Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Financial costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability. Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity.
Analysis of revenue by country of destination:
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
Profit and loss account
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
Damco Solutions Limited has provided a Corporate Financial Guarantee to State Bank of India for loan facilities availed by its 100% subsidiary in India i.e. Damco Soft Private Limited, which has been subsequently released by State Bank of India upon repayment of loan in full by Damcosoft Private Limited.
The ultimate and immediate controlling party is Manish Gupta.
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