Company registration number 14911183 (England and Wales)
DAPHNE TECHNOLOGIES LTD
FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
DAPHNE TECHNOLOGIES LTD
CONTENTS
Page
Statement of financial position
1
Notes to the financial statements
2 - 5
DAPHNE TECHNOLOGIES LTD
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023
31 December 2023
- 1 -
2023
Notes
£
£
Non-current assets
Property, plant and equipment
4
19,769
Current assets
Trade and other receivables
5
53,107
Cash and cash equivalents
43,149
96,256
Current liabilities
6
(721,327)
Net current liabilities
(625,071)
Net liabilities
(605,302)
Equity
Called up share capital
100
Retained earnings
(605,402)
Total equity
(605,302)
The directors of the company have elected not to include a copy of the income statement 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 1 August 2024 and are signed on its behalf by:
Mr A Gairola
Director
Company registration number 14911183 (England and Wales)
DAPHNE TECHNOLOGIES LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 2 -
1
Accounting policies
Company information
Daphne Technologies Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 71 Central Street, London, England, EC1V 8AB.
1.1
Reporting period
The financial statements have been prepared for the period ended 31 December 2023, which represents a 7 month trading period. The period end choice was made so the financial statements run in line with the accounting period of the parent company, Daphne Tech Holdings LLC.
1.2
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 disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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 £1.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.3
Going concern
These financial statements are prepared on the going concern basis. The directors have a reasonable expectation that the company will continue in operational existence for the foreseeable future. The directors have considered relevant information, including the annual budget, cash flow forecasts, and the impact of subsequent events in making their assessment. However, the directors are aware of certain material uncertainties which may cause doubt on the company's ability to continue as a going concern.
The company continues to rely on financial support from its wider group and existing investors, who have provided the entity with initial funding since inception. The directors have been assured that any additional future funding needs of the company will be provided by existing investors should it be required to ensure the business remains a going concern for a period of at least 12 months from the date of approval of the accounts. Based on these assessments and having regard to the resources available to the entity, the directors have concluded that it is appropriate to continue to adopt the going concern basis in preparing the annual report and accounts.
1.4
Property, plant and equipment
Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Computers
33% straight line per annum
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.
1.5
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include deposits held at call with banks.
DAPHNE TECHNOLOGIES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 3 -
1.6
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
The company enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like other accounts receivable and payable and loans from related parties.
Debt instruments like loans and other accounts receivable and payable are initially measured at present value of the future payments and subsequently at amortised cost using the effective interest method; Debt instruments that are payable or receivable within one year are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received.
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. Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.
1.7
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.
1.8
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
1.9
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.10
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.
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.
DAPHNE TECHNOLOGIES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 4 -
3
Employees
The average monthly number of persons (including directors) employed by the company during the period was 5.
4
Property, plant and equipment
Computers
£
Cost
At 2 June 2023
Additions
20,925
At 31 December 2023
20,925
Depreciation and impairment
At 2 June 2023
Depreciation charged in the period
1,156
At 31 December 2023
1,156
Carrying amount
At 31 December 2023
19,769
5
Trade and other receivables
2023
Amounts falling due within one year:
£
Other receivables
53,107
6
Current liabilities
2023
£
Amounts owed to group undertakings
694,874
Other payables
26,453
721,327
Amounts owed to the parent company have no terms and are therefore repayable on demand. Whilst the classification as current creditors reflects the contractual nature of the loans, the parent company does not seek repayment of these loans until the company is financially able to do so.
DAPHNE TECHNOLOGIES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 5 -
7
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.
We draw attention to note 1.3 in the financial statements, which indicates that the company is, and will continue to be, reliant on financial support from its wider group and existing investors to be able to continue to operate. The directors have been assured that future funding needs of the company will be provided by existing investors.
Whilst these assurances have been obtained, these conditions indicate that a material uncertainty exists that may cast significant doubt on the company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.
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.
Senior Statutory Auditor:
Kristina Perry FCCA
Statutory Auditor:
Sumer Audit
Date of audit report:
2 August 2024
Sumer Audit is the trading name of Sumer Auditco Limited
8
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
£
77,400
10
Parent company
The immediate parent company is Daphne Tech Holdings LLC whose registered address is 142 West 57th Street, New York, United States, 10019.