Carma International Limited
Financial Statements
For Filing with Registrar
For the year ended 30 June 2023
Company Registration No. 03885026 (England and Wales)
Carma International Limited
Contents
Page
Balance sheet
1
Notes to the financial statements
2 - 10
Carma International Limited
Balance Sheet
As at 30 June 2023
Page 1
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
6
15,065
13,842
Tangible assets
7
25,599
20,857
Investments
8
61
40,725
34,699
Current assets
Debtors
10
1,243,061
2,636,114
Cash at bank and in hand
22,595
62,330
1,265,656
2,698,444
Creditors: amounts falling due within one year
11
(1,232,832)
(2,936,190)
Net current assets/(liabilities)
32,824
(237,746)
Net assets/(liabilities)
73,549
(203,047)
Capital and reserves
Called up share capital
12
5,500
5,500
Capital redemption reserve
4,500
4,500
Capital contribution
461,875
Profit and loss reserves
(398,326)
(213,047)
Total equity
73,549
(203,047)
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 23 November 2023 and are signed on its behalf by:
M Nahawi
Director
Company Registration No. 03885026
Carma International Limited
Notes to the Financial Statements
For the year ended 30 June 2023
Page 2
1
Accounting policies
Company information
Carma International Limited is a private company limited by shares incorporated in England and Wales. The registered office is Studio 17/18, Royal Victoria Patriotic Building, John Archer Way, London, SW18 3SX.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.
The 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 on the historical cost convention. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Salience Insight Limited. These consolidated financial statements are available from its registered office, News Group International, P.O Box 341138, Dubai Silicon Oasis, Dubai, UAE.
1.2
Going concern
The company made a trueloss after tax for the year of £185,279 (2022: £152,387) and at 30 June 2023 had net assets of £73,549 (2022: net liabilities of £203,047), including cash reserves of £22,595 (2022: £62,330).
During the year the net intercompany liability of £461,875 was novated to a loan from News Group International and converted to capital contribution to support the business. The intention is to convert the capital contribution to share capital in the year ended 30 June 2024. News Group International, the ultimate parent company, has confirmed that it will continue to support the business. As a result the directors are confident that they have the ability to respond effectively to continued uncertainty and as a result, the directors believe that the company will be able to continue to meet its liabilities as they fall due for a period of at least twelve months from the date of approval of the financial statements.
Carma International Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2023
1
Accounting policies
(Continued)
Page 3
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for 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.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion. The entity recognises revenue on a straight-line basis over the specified period in the service agreement with each client. This is considered to best represent the stage of completion as services are performed by an indeterminate number of acts over a specified period of time.
1.4
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Development Costs
3 years straight line
1.5
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.
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:
Plant and machinery
25% on cost
Fixtures, fittings & equipment
10% on cost
Computer equipment
33% on cost
Motor vehicles
25% on cost
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.6
Fixed asset investments
Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
Carma International Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2023
1
Accounting policies
(Continued)
Page 4
The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.
1.7
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
1.8
Cash at bank and in hand
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.
1.9
Financial instruments
The Company only has basic financial instruments measured at amortised cost, with no financial instruments classified as other or basic instruments measured at fair value.
1.10
Equity instruments
Equity instruments issued by the company 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 company.
1.11
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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Carma International Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2023
1
Accounting policies
(Continued)
Page 5
1.12
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.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
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 leases asset are consumed.
1.15
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
34
31
Carma International Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2023
Page 6
4
Directors' remuneration
2023
2022
£
£
Remuneration paid to directors
95,215
73,500
5
Taxation
The company has estimated tax losses carried forward to be utilised against future profits of around £1,300,000. These have not yet reached the recognition criteria to be provided as a deferred tax asset.
6
Intangible fixed assets
Other
£
Cost
At 1 July 2022
396,526
Additions
8,545
At 30 June 2023
405,071
Amortisation and impairment
At 1 July 2022
382,684
Amortisation charged for the year
7,322
At 30 June 2023
390,006
Carrying amount
At 30 June 2023
15,065
At 30 June 2022
13,842
Carma International Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2023
Page 7
7
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 July 2022
8,450
236,022
244,472
Additions
18,718
18,718
At 30 June 2023
8,450
254,740
263,190
Depreciation and impairment
At 1 July 2022
8,450
215,165
223,615
Depreciation charged in the year
13,976
13,976
At 30 June 2023
8,450
229,141
237,591
Carrying amount
At 30 June 2023
25,599
25,599
At 30 June 2022
20,857
20,857
Carma International Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2023
Page 8
8
Fixed asset investments
2023
2022
£
£
Shares in group undertakings and participating interests
61
Movements in fixed asset investments
Shares in subsidiaries
£
Cost or valuation
At 1 July 2022
-
Additions
61
At 30 June 2023
61
Carrying amount
At 30 June 2023
61
At 30 June 2022
-
9
Subsidiaries
Details of the company's subsidiaries at 30 June 2023 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Salience Capital Inc
4900 Leesburg, Pike Suite, 209 Alexandria, VA 22302, USA
Ordinary
100.00
10
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
992,842
964,448
Amounts owed by group undertakings
1,472,497
Other debtors
9,943
20,440
Prepayments and accrued income
240,276
178,729
1,243,061
2,636,114
Within the 'Prepayments and accrued income' balance above, there is £135,599 (2022: 105,881) worth of accrued income.
Carma International Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2023
Page 9
11
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts
99,931
Trade creditors
380,360
338,984
Amounts owed to group undertakings
1,855,915
Taxation and social security
124,268
107,696
Other creditors
2,087
2,432
Accruals and deferred income
626,186
631,163
1,232,832
2,936,190
Bank overdrafts of £99,931 (2022 - £0) were secured by way of a fixed and floating charge over the assets of the company.
Within the 'Accruals and deferred income' balance above, there is £511,649 (2022: £535,463) worth deferred income.
12
Called up share capital
2023
2022
Ordinary share capital
£
£
Issued and fully paid
5,500 Ordinary shares of £1 each
5,500
5,500
13
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Joanna Cosgrove
Statutory Auditor:
Moore Kingston Smith LLP
14
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
18,820
60,225
15
Related party transactions
Carma International Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2023
15
Related party transactions
(Continued)
Page 10
The company has taken the exemption under Section 33 Related Party Disclosures paragraph 33.1A from disclosing transactions with other members of a wholly owned group.
16
Parent company
The immediate parent of the company is Carma International - Cayman, a company incorporated in the Cayman Islands. The ultimate parent undertaking is News Group International, a company incorporated in the Cayman Islands. Copies of accounts can be obtained from News Group International, P.O Box 341138, Dubai Silicon Oasis, Dubai, UAE.
The ultimate controlling party is considered to be M. Nahawi by virtue of his majority shareholding in News Group International.
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