Company registration number 12025070 (England and Wales)
CAPITAL PRIVÉ TECHNOLOGIES LTD (FORMERLY WITTY TECHNOLOGIES LTD)
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
CAPITAL PRIVÉ TECHNOLOGIES LTD (FORMERLY WITTY TECHNOLOGIES LTD)
COMPANY INFORMATION
Director
Ammar Kutait
Secretary
OHS Secretaries Limited
Company number
12025070
Registered office
9th Floor
107 Cheapside
London
EC2V 6DN
Auditor
Gravita Audit II Limited
66 Prescot Street
London
E1 8NN
CAPITAL PRIVÉ TECHNOLOGIES LTD (FORMERLY WITTY TECHNOLOGIES LTD)
CONTENTS
Page
Director's report
1 - 2
Independent auditor's report
3 - 5
Income statement
6
Statement of financial position
7
Statement of changes in equity
8
Statement of cash flows
9
Notes to the financial statements
10 - 17
CAPITAL PRIVÉ TECHNOLOGIES LTD (FORMERLY WITTY TECHNOLOGIES LTD)
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 1 -

The director presents his annual report and financial statements for the year ended 31 December 2022.

Principal activities

The principal activity of the company is to be that of software publishing and development.

Results and dividends

The results for the year are set out on page 6.

Director

The director who held office during the year and up to the date of signature of the financial statements was as follows:

Ammar Kutait
Auditor

In accordance with the company's articles, a resolution proposing that Gravita Audit II Limited be reappointed as auditor of the company will be put at a General Meeting.

Statement of director's responsibilities

The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with International Financial Reporting Standards (IFRSs) as adopted by the United Kingdom. Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, International Accounting Standard 1 requires that directors:

 

The director is 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 enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

Each director in office at the date of approval of this annual report confirms that:

 

This confirmation is given and should be interpreted in accordance with the provisions of section 418 of the Companies Act 2006.

CAPITAL PRIVÉ TECHNOLOGIES LTD (FORMERLY WITTY TECHNOLOGIES LTD)
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 2 -
Going concern

The company made a loss for the year of $38,870 (2021 - $57,107) and had net current liabilities of $103,869 (2021 - $64,999) at the balance sheet date.  The entity relies on the support of its parent company and controlling party which the director believes will continue to be available and therefore he has prepared the accounts on the going concern basis of preparation.

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

On behalf of the board
Ammar Kutait
Director
14 March 2024
CAPITAL PRIVÉ TECHNOLOGIES LTD (FORMERLY WITTY TECHNOLOGIES LTD)
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CAPITAL PRIVÉ TECHNOLOGIES LTD (FORMERLY WITTY TECHNOLOGIES LTD)
- 3 -

Qualified opinion

We have audited the financial statements of Capital Privé Technologies Ltd (formerly Witty Technologies Ltd) (the 'company') for the year ended 31 December 2022 which comprise of the income statement, the statement of financial position, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the United Kingdom.

In our opinion, except for the possible effects of the matter described in the basis for qualified opinion section of our report, the financial statements:

Basis for qualified opinion

As stated in note 1.2, the entity is reliant on support from the parent company and its shareholder. Whilst carrying out our audit work on the support provided, it was not possible to obtain the required audit evidence that the level of support was available from the relevant parties. Consequently we were unable to determine whether the going concern basis was appropriate in preparing the accounts.

 

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’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 qualified opinion.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is 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.

 

As described in the basis for qualified opinion section of our report, we are unable to satisfy ourselves on the appropriateness of the use of the going concern basis of accounting in the preparation of the financial statements. We therefore conclude that where the other information refers to the going concern basis of accounting in the preparation of the financial statements for the company, it maybe materially misstated for the same reason.

Opinions on other matters prescribed by the Companies Act 2006

Except for the possible effects of the matter described in the basis for qualified opinion section of our report, in our opinion, based on the work undertaken in the course of our audit:

CAPITAL PRIVÉ TECHNOLOGIES LTD (FORMERLY WITTY TECHNOLOGIES LTD)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CAPITAL PRIVÉ TECHNOLOGIES LTD (FORMERLY WITTY TECHNOLOGIES LTD)
- 4 -
Matters on which we are required to report by exception

Except for the matter described in the basis for qualified opinion section of our report, in the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the director's report.

 

Arising solely from the limitation on the scope of our work relating to the going concern basis of preparation, referred to above:

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of director

As explained more fully in the director's responsibilities statement, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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 auditor's 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 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.

 

We ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations. The laws and regulations applicable to the company were identified through discussions with the director and other management, and from our commercial knowledge and experience of the company. Of these laws and regulations, we focused on those that we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment and environmental legislation. The extent of compliance with these laws and regulations identified above was assessed through making enquiries of management and inspecting legal correspondence. The identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

CAPITAL PRIVÉ TECHNOLOGIES LTD (FORMERLY WITTY TECHNOLOGIES LTD)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CAPITAL PRIVÉ TECHNOLOGIES LTD (FORMERLY WITTY TECHNOLOGIES LTD)
- 5 -

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

 

To address the risk of fraud through management bias and override of controls, we:

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council's website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

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 auditor's 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.

Daniel Howarth (Senior Statutory Auditor)
For and on behalf of Gravita Audit II Limited
15 March 2024
Chartered Accountants
Statutory Auditor
66 Prescot Street
London
E1 8NN
CAPITAL PRIVÉ TECHNOLOGIES LTD (FORMERLY WITTY TECHNOLOGIES LTD)
INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 6 -
2022
2021
Notes
$
$
Administrative expenses
(38,870)
(57,107)
Operating loss
3
(38,870)
(57,107)
Income tax expense
5
-
-
Loss and total comprehensive income for the year
(38,870)
(57,107)
CAPITAL PRIVÉ TECHNOLOGIES LTD (FORMERLY WITTY TECHNOLOGIES LTD)
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2022
31 December 2022
- 7 -
2022
2021
Notes
$
$
ASSETS
Current assets
Trade and other receivables
6
8,963
103,436
Total assets
8,963
103,436
EQUITY
Called up share capital
9
0.01
0.01
Retained earnings
(103,869)
(64,999)
Total equity
(103,869)
(64,999)
LIABILITIES
Current liabilities
Trade and other payables
8
112,832
168,435
Total liabilities
112,832
168,435
Total equity and liabilities
8,963
103,436
The financial statements were approved and signed by the director and authorised for issue on 14 March 2024
Ammar Kutait
Director
Company Registration No. 12025070
CAPITAL PRIVÉ TECHNOLOGIES LTD (FORMERLY WITTY TECHNOLOGIES LTD)
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
- 8 -
Share capital
Retained earnings
Total
$
$
$
Balance at 1 January 2021
-
(7,892)
(7,892)
Year ended 31 December 2021:
Loss and total comprehensive income
-
(57,107)
(57,107)
Balance at 31 December 2021
-
0
(64,999)
(64,999)
Year ended 31 December 2022:
Loss and total comprehensive income
-
(38,870)
(38,870)
Balance at 31 December 2022
-
0
(103,869)
(103,869)
CAPITAL PRIVÉ TECHNOLOGIES LTD (FORMERLY WITTY TECHNOLOGIES LTD)
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 9 -
2022
2021
Notes
$
$
$
$
Cash flows from operating activities
Net cash outflow from operating activities
-
-
Net increase in cash and cash equivalents
-
0
-
0
Cash and cash equivalents at beginning of year
-
0
-
0
Cash and cash equivalents at end of year
-
0
-
0
CAPITAL PRIVÉ TECHNOLOGIES LTD (FORMERLY WITTY TECHNOLOGIES LTD)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 10 -
1
Accounting policies
Company information

Capital Privé Technologies Ltd (formerly Witty Technologies Ltd) is a private company limited by shares incorporated in England and Wales. The registered office is 9th Floor, 107 Cheapside, London, EC2V 6DN. The company's principal activities and nature of its operations are disclosed in the director's report.

1.1
Accounting convention

The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted for use in the United Kingdom and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS, except as otherwise stated.

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

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

1.2
Going concern

The company made a loss for the year of $38,870 (2021 - $57,107) and had net current liabilities of $103,869 (2021 - $64,999) at the balance sheet date.  The entity relies on the support of its parent company and controlling party which the director believes will continue to be available and therefore he has prepared the accounts on the going concern basis of preparation.true

1.3
Cash and cash equivalents

Cash and cash equivalents 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.

1.4
Financial assets

Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.

 

At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.

Financial assets at fair value through profit or loss

When any of the above-mentioned conditions for classification of financial assets is not met, a financial asset is classified as measured at fair value through profit or loss. Financial assets measured at fair value through profit or loss are recognized initially at fair value and any transaction costs are recognised in profit or loss when incurred. A gain or loss on a financial asset measured at fair value through profit or loss is recognised in profit or loss, and is included within finance income or finance costs in the statement of income for the reporting period in which it arises.

Financial assets held at amortised cost

Financial instruments are classified as financial assets measured at amortised cost where the objective is to hold these assets in order to collect contractual cash flows, and the contractual cash flows are solely payments of principal and interest. They arise principally from the provision of goods and services to customers (eg trade receivables). They are initially recognised at fair value plus transaction costs directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment where necessary.

CAPITAL PRIVÉ TECHNOLOGIES LTD (FORMERLY WITTY TECHNOLOGIES LTD)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 11 -
Financial assets at fair value through other comprehensive income

Debt instruments are classified as financial assets measured at fair value through other comprehensive income where the financial assets are held within the company’s business model whose objective is achieved by both collecting contractual cash flows and selling financial assets, and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

 

A debt instrument measured at fair value through other comprehensive income is recognised initially at fair value plus transaction costs directly attributable to the asset. After initial recognition, each asset is measured at fair value, with changes in fair value included in other comprehensive income. Accumulated gains or losses recognised through other comprehensive income are directly transferred to profit or loss when the debt instrument is derecognised.

The company has made an irrevocable election to recognize changes in fair value of investments in equity instruments through other comprehensive income, not through profit or loss. A gain or loss from fair value changes will be shown in other comprehensive income and will not be reclassified subsequently to profit or loss. Equity instruments measured at fair value through other comprehensive income are recognized initially at fair value plus transaction cost directly attributable to the asset. After initial recognition, each asset is measured at fair value, with changes in fair value included in other comprehensive income. Accumulated gains or losses recognized through other comprehensive income are directly transferred to retained earnings when the equity instrument is derecognized or its fair value substantially decreased. Dividends are recognized as finance income in profit or loss.

Impairment of financial assets

Financial assets carried at amortised cost and Fair Value Through Other Comprehensive Income (FVOCI) are assessed for indicators of impairment at each reporting end date.

 

The expected credit losses associated with these assets are estimated on a forward-looking basis. A broad range of information is considered when assessing credit risk and measuring expected credit losses, including past events, current conditions, and reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

1.5
Financial liabilities

The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.

Financial liabilities at fair value through profit or loss

Financial liabilities are classified as measured at fair value through profit or loss when the financial liability is held for trading. A financial liability is classified as held for trading if:

 

 

Financial liabilities at fair value through profit or loss are stated at fair value with any gains or losses arising on remeasurement recognised in profit or loss.

CAPITAL PRIVÉ TECHNOLOGIES LTD (FORMERLY WITTY TECHNOLOGIES LTD)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 12 -
Other financial liabilities

Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.

Derecognition of financial liabilities

Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.

1.6
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.7
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 income statement 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.

Deferred tax

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary 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.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.8
Foreign exchange

Transactions in currencies other than in US Dollar are recorded at the average rates of exchange prevailing for the month 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.

CAPITAL PRIVÉ TECHNOLOGIES LTD (FORMERLY WITTY TECHNOLOGIES LTD)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 13 -
2
Adoption of new and revised standards and changes in accounting policies

Certain new accounting standards and interpretations have been published that are not mandatory for the year ended 31 December 2022 and have not been early adopted by the company. None of these standards and interpretations are expected to have a material impact on the company in the current or future reporting periods and on foreseeable future transactions.

3
Operating loss
2022
2021
Operating loss for the year is stated after charging/(crediting):
$
$
Exchange (gains)/losses
(167)
4,357
Legal and professional fees
14,730
42,329
Other miscellaneous fees
2,343
3,689
Computer running costs
11,764
-
Fees payable to the company's auditor for the audit of the company's financial statements
10,200
6,732
4
Employees

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

2022
2021
Number
Number
Total
-
0
-
0
5
Income tax expense
2022
2021
$
$

The charge for the year can be reconciled to the loss per the income statement as follows:

2022
2021
$
$
Loss before taxation
(38,870)
(57,107)
Expected tax credit based on a corporation tax rate of 19.00% (2021: 19.00%)
(7,385)
(10,850)
Tax losses to be carried forward
7,385
10,850
Taxation charge for the year
-
-

The company has unrecognised deferred tax assets of $208,849 (2021: $169,592) in respect of tax losses carried forward. Deferred tax assets have not been recognised as recognition criteria have not been met.

CAPITAL PRIVÉ TECHNOLOGIES LTD (FORMERLY WITTY TECHNOLOGIES LTD)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 14 -
6
Trade and other receivables
2022
2021
$
$
VAT recoverable
-
0
1,606
Amount owed by parent undertaking
-
0
101,830
Other receivables
8,963
-
8,963
103,436

The amount owed by parent undertaking is unsecured, interest-free and repayable on demand.

7
Trade receivables - credit risk
Fair value of trade receivables

The director considers that the carrying amount of trade and other receivables is approximately equal to their fair value.

No significant receivable balances are impaired at the reporting end date.

8
Trade and other payables
2022
2021
$
$
Trade payables
48,993
145,869
Amount owed to parent undertaking
49,616
-
0
Accruals
10,200
6,732
Other payables
4,023
15,834
112,832
168,435
9
Share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
$
$
Issued and fully paid
Ordinary shares of 1p each
1
1
0.01
0.01

All ordinary shares rank pari passu in all respects.

10
Reserves

Called up share capital – This represents the nominal value of shares that have been issued.

 

Retained earnings – This distributable reserve records retained earnings and accumulated losses.

CAPITAL PRIVÉ TECHNOLOGIES LTD (FORMERLY WITTY TECHNOLOGIES LTD)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 15 -
11
Capital risk management

The company's objectives when managing capital are to:

 

In order to maintain and manage the company's capital structure, the director may adjust the capital dividends paid to shareholders and closely monitor expenses and liabilities.

The company is not subject to any externally imposed capital requirements.

CAPITAL PRIVÉ TECHNOLOGIES LTD (FORMERLY WITTY TECHNOLOGIES LTD)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 16 -
12
Financial risk management objectives and policies

The company's principal financial liabilities, other than derivatives, comprise loans and borrowings, and trade and other payables. The main purpose of these financial liabilities is to finance the company's operations. The company's principal financial assets include trade and other receivables, and cash and short-term deposits that derive directly from its operations.

 

The company is exposed to credit risk, liquidity risk, market risk, interest rate risk, price risk and foreign exchange risk.

 

Credit risk

 

Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The company is exposed to credit risk from its operating activities (primarily trade and other receivables) and from its financing activities.

 

The company considers that the carrying amount of trade and other receivables is approximately equal to their fair value. No significant receivable balances are impaired at the reporting date. The carrying amount of financial assets recorded in the financial statements, which is net of impairment losses, represents the company's maximum exposure to credit risk. The company does not hold any collateral or other credit enhancements to cover this credit risk.

 

The company considers that the carrying amounts of financial liabilities carried at amortised cost in the financial statements approximate to their fair values.

 

Liquidity risk

 

The company monitors its liquidity risk through carefully studying the maturing of both receivables and liabilities, with the purpose of maintaining a balance between the continuity of capital and flexibility through the company's banks' creditworthiness. The monitoring of liquidity plays an important role in both the company's smooth operation and the continuation of its activities. On the period end date, the company has sufficient cash available to cover its operating activities.

 

Market risk

 

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: price risk, interest rate risk and foreign exchange risk.

 

Interest rate risk

 

The company has no interest-bearing borrowings so the exposure to interest rate risk is limited.

 

Price risk

 

Price risk is the risk that the fair value of a financial asset will fluctuate due to a change in market quoted prices. There is limited exposure to price risk as the company only holds financial assets at amortised cost.

 

Foreign exchange risk

 

The company operates across Europe and the UK and is exposed to foreign exchange risk. Foreign exchange risk arises from commercial transactions and recognised assets and liabilities denominated in a currency that is not the functional currency of the company, which is US Dollar. The risk is measured through a forecast of expenditures in currencies other than the US Dollar.

13
Events after the reporting date

There are no events occurring after the reporting period to be noted.

CAPITAL PRIVÉ TECHNOLOGIES LTD (FORMERLY WITTY TECHNOLOGIES LTD)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 17 -
14
Controlling party

The parent company and the smallest and largest group to consolidate these financial statements is Witty Tech Ltd (company registration no. 12135419), which is incorporated in England and Wales. Copies of the consolidated financial statements can be obtained on the website of the Companies House.

The ultimate controlling party is the director by virtue of his 100% shareholding in the parent company.

15
Cash absorbed by operations
2022
2021
$
$
Loss for the year before income tax
(38,870)
(57,107)
Movements in working capital:
Decrease in trade and other receivables
94,473
51,275
(Decrease)/increase in trade and other payables
(55,603)
5,832
Cash absorbed by operations
-
-
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