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REGISTERED NUMBER: 07722775 (England and Wales)















FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

FOR

RAKUTEN SYMPHONY UK LTD

RAKUTEN SYMPHONY UK LTD (REGISTERED NUMBER: 07722775)

CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022










Page

Company Information 1

Statement of Financial Position 2

Notes to the Financial Statements 3


RAKUTEN SYMPHONY UK LTD

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2022







DIRECTORS: H Hirama
N Karaiskos
A Tamura





REGISTERED OFFICE: 1 The Heights
Brooklands
England
Weybridge
KT13 0NY





REGISTERED NUMBER: 07722775 (England and Wales)





AUDITORS: Milsted Langdon LLP
Chartered Accountants and Statutory Auditors
Freshford House
Redcliffe Way
Bristol
BS1 6NL

RAKUTEN SYMPHONY UK LTD (REGISTERED NUMBER: 07722775)

STATEMENT OF FINANCIAL POSITION
31 DECEMBER 2022

2022 2021
as restated
Notes £ £ £ £
FIXED ASSETS
Property, plant and equipment 4 346,037 338,123

CURRENT ASSETS
Debtors 5 1,451,593 550,336
Cash at bank 791,566 3,165,177
2,243,159 3,715,513
CREDITORS
Amounts falling due within one year 6 518,096 2,527,178
NET CURRENT ASSETS 1,725,063 1,188,335
TOTAL ASSETS LESS CURRENT
LIABILITIES

2,071,100

1,526,458

PROVISIONS FOR LIABILITIES 34,668 38,931
NET ASSETS 2,036,432 1,487,527

CAPITAL AND RESERVES
Called up share capital 1,000 1,000
Capital redemption reserve 135,000 135,000
Retained earnings 1,900,432 1,351,527
SHAREHOLDERS' FUNDS 2,036,432 1,487,527

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

In accordance with Section 444 of the Companies Act 2006, the Statement of Comprehensive Income has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 27 February 2024 and were signed on its behalf by:





N Karaiskos - Director


RAKUTEN SYMPHONY UK LTD (REGISTERED NUMBER: 07722775)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022


1. STATUTORY INFORMATION

Rakuten Symphony UK Ltd is a private company limited by shares, incorporated and domiciled in the United Kingdom. The address of the registered office is 1 The Heights, Brookland, Weybridge, England, Surrey, KT13 0NY.

The Company is registered at Companies House England and Wales. Its registered number is 07722775.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies.

All amounts have been rounded to the nearest £1 pound sterling, unless otherwise indicated.

The following principal accounting policies have been applied:

Turnover
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

The Company is contracted by its parent company, Altiostar Networks, Inc. to deliver sales and marketing services under an intercompany agreement. The Company is remunerated by its parent for these services.

RAKUTEN SYMPHONY UK LTD (REGISTERED NUMBER: 07722775)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2022


2. ACCOUNTING POLICIES - continued

Tangible fixed assets
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, using the straight-line method.

Depreciation is provided on the following basis:

Short leaseholds - over the period of the lease
Plant and machinery - 33% straight line
Fixtures and fittings - 20% straight line
Office equipment - 33% and 20% straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Taxation and deferred taxation
The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Statement of financial position date, except that:

- The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

- Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

RAKUTEN SYMPHONY UK LTD (REGISTERED NUMBER: 07722775)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2022


2. ACCOUNTING POLICIES - continued

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Company in independently administered funds.

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Holiday pay accrual

A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the Statement of financial position date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the Statement of financial position date.

RAKUTEN SYMPHONY UK LTD (REGISTERED NUMBER: 07722775)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2022


2. ACCOUNTING POLICIES - continued

Provisions for liabilities
Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.

Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Statement of financial position date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the Statement of financial position.

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Basic financial assets and liabilities that are payable or receivable within one year, typically trade payables and receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration, expected to be paid or received.

Interest income
Interest income is recognised in profit or loss using the effective interest method.

Share based payments

Where share options are awarded to employees, the fair value of the options at the date of grant is charged to profit or loss over the vesting period. Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each Statement of financial position date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options that eventually vest. Market vesting conditions are factored into the fair value of the options granted. The cumulative expense is not adjusted for failure to achieve a market vesting condition.

The fair value of the award also takes into account non-vesting conditions. These are either factors beyond the control of either party (such as a target based on an index) or factors which are within the control of one or other of the parties (such as the Company keeping the scheme open or the employee maintaining any contributions required by the scheme).

Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to profit or loss over the remaining vesting period.

Where equity instruments are granted to persons other than employees, profit or loss is charged with fair value of goods and services received.

RAKUTEN SYMPHONY UK LTD (REGISTERED NUMBER: 07722775)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2022


2. ACCOUNTING POLICIES - continued

Going concern
The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for a period of at least twelve months from the date of signing this report.

The company relies on the continued support from its parent company Altiostar Networks, Inc. (USA), which has confirmed that it will continue to provide this for the foreseeable future. On that basis, the directors continue to adopt the going concern basis of accounting in preparing the annual financial statements.

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 48 (2021 - 24 ) .

4. PROPERTY, PLANT AND EQUIPMENT
Plant & Fixtures
Short machinery and Office
leasehold etc fittings equipment Totals
£ £ £ £ £
COST
At 1 January 2022 171,635 1,617,355 10,889 92,436 1,892,315
Additions 5,809 158,610 - 86,734 251,153
At 31 December 2022 177,444 1,775,965 10,889 179,170 2,143,468
DEPRECIATION
At 1 January 2022 157,471 1,293,396 10,889 92,436 1,554,192
Charge for year 4,354 223,560 - 15,325 243,239
At 31 December 2022 161,825 1,516,956 10,889 107,761 1,797,431
NET BOOK VALUE
At 31 December 2022 15,619 259,009 - 71,409 346,037
At 31 December 2021 14,164 323,959 - - 338,123

5. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2022 2021
as restated
£ £
Amounts owed by group undertakings 997,225 -
Other debtors 275,928 275,928
VAT 73,861 167,316
Prepayments 104,579 107,092
1,451,593 550,336

RAKUTEN SYMPHONY UK LTD (REGISTERED NUMBER: 07722775)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2022


6. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2022 2021
as restated
£ £
Trade creditors 151,984 72,632
Amounts owed to group undertakings - 2,046,720
Corporation tax 19,352 34,646
Other creditors 1,192 18,763
Accruals and deferred income 345,568 354,417
518,096 2,527,178

7. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2022 2021
as restated
£ £
Within one year 269,719 269,719
Between one and five years 1,078,876 1,078,876
In more than five years 674,398 944,017
2,022,993 2,292,612

8. DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Auditors' Report was unqualified.

Guy Armitage-Norton (Senior Statutory Auditor)
for and on behalf of Milsted Langdon LLP

9. PENSION COMMITMENTS

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £379,137 (2021 - £137,047). Contributions totalling £1,192 (2021 - £18,763) were payable to the fund at the reporting date.

10. RELATED PARTY DISCLOSURES

The company has taken advantage of the exemption available under The Small Companies and Groups Regulations 2008, Schedule 1 paragraph 66(4) from disclosing details of any transactions entered into between two or more members of a group where they are wholly owned members of this group.

There were no other related party transactions during the period (2021: none).

RAKUTEN SYMPHONY UK LTD (REGISTERED NUMBER: 07722775)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2022


11. CONTROLLING PARTY

The Company is a wholly owned subsidiary of Altiostar Networks, Inc. (USA), a company incorporated in the United States of America.

The smallest group in which the results of the Company are consolidated is that headed by Altiostar Networks, Inc. (USA). The consolidated financial statements may be obtained from Altiostar Networks, Inc. (USA), 200 Ames Pond Dr, Tewksbury, MA 01876, United States of America.