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Registered number: 11638465












ANANDA ASSET MANAGEMENT LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

 

ANANDA ASSET MANAGEMENT LIMITED
 
COMPANY INFORMATION


Directors
Araceli Strassburger 
Louis Bastien Villa 
Mélodie De Pimodan 




Registered number
11638465



Registered office
207 Sloane Street
Second Floor

London

SW1X 9QX




Independent auditor
Blick Rothenberg Audit LLP
Chartered Accountants & Statutory Auditor

16 Great Queen Street

Covent Garden

London

WC2B 5AH





 

ANANDA ASSET MANAGEMENT LIMITED
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The principal activity of Ananda Asset Management (the 'Company') is the provision of investment management services to its customers. The Company is authorised and regulated by the Financial Conduct Authority as an Alternative Investment Fund Manager since 1 October 2020. 

Business review
 
The Company currently has seven permanent employees and is the investment manager to a fund. It also provides advisory services to a managed account.
 
The strategy is to invest in equities with a directional or neutral exposure to global markets. 

Principal risks and uncertainties
 
The principal risks to the revenues of the Company are: redemptions from, and a period of poor investment performance of, the funds under management. 

Financial key performance indicators
 
The key performance indicators are considered to be the assets under management and investment returns generated for the Company’s investors. For the year to 31 December 2023, the Company saw a high single digit increase in assets under management mostly driven by the strong performance for the main fund Ananda Long Term Opportunities (ALTO). Our benchmark was up c18% and ALTO USD L (main) share class outperformed to finish the year up c30%. 

Directors' statement of compliance with duty to promote the success of the Company
 
The directors must act in accordance with general set duties, which are detailed in section 172 of the Companies Act 2006 and, in doing so have regard (amongst other matters) to:
a. the likely consequence of any decision in the long term;
b. the interests of the Company's employees;
c. the need to foster the Company's business relationships with suppliers, customers and others;
d. the impact of the Company's operations on the community and the environment;
e. the desirability of the Company maintaining a reputation for high standards of business conduct; and
f. the need to act fairly as between shareholders of the Company. 
The directors are committed to running a responsible business to fulfil the above duties and to operating in line with the FCA's regulatory principles. The Company's behaviour is aligned with the expectations of its shareholders, employees, suppliers and customers. 
The directors recognise that the Company's employees are a key asset to the Company in driving future success. The remuneration policies of the Company are designed to ensure the successful retention, recruitment and appropriate motivation of employees. 
The directors also recognise the requirement to foster strong business relationships with its key suppliers and their interests are factored into the decision making process. The Company has long term relationships with many of its key suppliers.


This report was approved by the board on 23 April 2024 and signed on its behalf.



Araceli Strassburger
Director

Page 1

 

ANANDA ASSET MANAGEMENT LIMITED

DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their report and the financial statements for the year ended 31 December 2023.

Results and dividends

The profit for the year, after taxation, amounted to £455,886 (2022 - loss £209,936).

The directors have not recommended a dividend (2022- nil).

Directors

The directors who served during the year were:

Araceli Strassburger 
Louis Bastien Villa 
Mélodie De Pimodan 

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' report and the 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 of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They are 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.

Page 2

 

ANANDA ASSET MANAGEMENT LIMITED

DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023


Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

Auditor

The auditor, Blick Rothenberg Audit LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 23 April 2024 and signed on its behalf.
 





Araceli Strassburger
Director

Page 3

 

ANANDA ASSET MANAGEMENT LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ANANDA ASSET MANAGEMENT LIMITED
 FOR THE YEAR ENDED 31 DECEMBER 2023

Opinion

We have audited the financial statements of Ananda Asset Management Limited (the 'Company') for the year ended 31 December 2023, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of cash flows, the Statement of changes in equity and the notes to the financial statements, including a summary of significant accounting policiesThe 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).

In our opinion the financial statements:

give a true and fair view of the state of the Company's affairs as at 31 December 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

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 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.

Conclusions relating to going concern

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 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.

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 directors are responsible for the other information contained within the Annual ReportOur 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.

Page 4

 

ANANDA ASSET MANAGEMENT LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ANANDA ASSET MANAGEMENT LIMITED (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

the information given in the 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 Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

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 Strategic report or the Directors' report.

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:

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Directors' responsibilities statement set out on page 2, the directors are 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 directors determine 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 directors are 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 directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

Page 5

 

ANANDA ASSET MANAGEMENT LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ANANDA ASSET MANAGEMENT LIMITED (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

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 identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, and non-compliance with laws and regulations, our procedures included the following: enquiring of management concerning the Company’s policies with regards identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance; enquiring of management concerning the company’s policies for detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; enquiring of management concerning the Company’s policies in relation to the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations; discussing among the engagement team where fraud might occur in the financial statements and any potential
indicators of fraud; and obtaining an understanding of the legal and regulatory framework that the Company operates in and focusing on those laws and regulations that had a direct effect on the financial statements or that had a fundamental effect on the operations of the company. The key laws and regulations we considered in this context included the UK Companies Act 2006, the Financial Services and Markets Act 2000 and applicable tax legislation.
One particular focus area was the risk of fraud through management override of controls. Our procedures to respond to risks identified included the following: performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; reviewing the bank statements of the Company for evidence of any large or unusual activity which may be indicative of fraud; enquiring of management in relation to any potential litigation and claims; and testing the appropriateness of journal entries and other adjustments.
Another focus area was non-compliance with the rules of the Financial Conduct Authority (the 'FCA’). The Company was authorised and regulated by the FCA throughout the period. Our procedures to respond to risks identified included the following: reviewing correspondence between the Company and the FCA, performing analytical review to detect receipts of client money and remaining alert to the possibility of accidental receipt of client monies; and discussion of regulatory matters with the appointed officers of the company.
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 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 Auditor's report.

Page 6

 

ANANDA ASSET MANAGEMENT LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ANANDA ASSET MANAGEMENT LIMITED (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

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 2006Our 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 for our audit work, for this report, or for the opinions we have formed.





Richard Hinton (Senior statutory auditor)
for and on behalf of
Blick Rothenberg Audit LLP
Chartered Accountants
Statutory Auditor
16 Great Queen Street
Covent Garden
London
WC2B 5AH

24 April 2024
Page 7

 

ANANDA ASSET MANAGEMENT LIMITED
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
  
1,985,652
1,519,885

Administrative expenses
  
(1,861,155)
(1,627,284)

Operating profit/(loss)
 3 
124,497
(107,399)

Gains on / (Amounts written off) investments
  
370,847
(56,409)

Interest receivable and similar income
  
7,006
-

Profit/(loss) before tax
  
502,350
(163,808)

Tax on profit/(loss)
 6 
(46,464)
(46,128)

Profit/(loss) for the financial year
  
455,886
(209,936)

There was no other comprehensive income for 2023 (2022:£NIL).

The notes on pages 12 to 22 form part of these financial statements.

Page 8


 
REGISTERED NUMBER:11638465
ANANDA ASSET MANAGEMENT LIMITED

BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 7 
93,921
116,195

Investments
 8 
2,388,716
1,819,539

  
2,482,637
1,935,734

Current assets
  

Debtors: amounts falling due within one year
 9 
628,989
419,839

Cash at bank and in hand
  
438,355
640,383

  
1,067,344
1,060,222

Creditors: amounts falling due within one year
 10 
(574,648)
(474,981)

Net current assets
  
 
 
492,696
 
 
585,241

Total assets less current liabilities
  
2,975,333
2,520,975

Provisions for liabilities
  

Deferred tax
 12 
(26,763)
(18,291)

Net assets
  
2,948,570
2,502,684


Capital and reserves
  

Called up share capital 
 13 
2,000
2,000

Share premium account
  
1,801,300
1,801,300

Profit and loss account
  
1,145,270
699,384

  
2,948,570
2,502,684


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 23 April 2024.




Araceli Strassburger
Director

The notes on pages 12 to 22 form part of these financial statements.

Page 9

 

ANANDA ASSET MANAGEMENT LIMITED

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Share premium account
Profit and loss account
Total equity

£
£
£
£


At 1 January 2022
2,000
1,801,300
909,320
2,712,620



Loss for the year
-
-
(209,936)
(209,936)



At 1 January 2023
2,000
1,801,300
699,384
2,502,684


Comprehensive income for the year

Profit for the year
-
-
455,886
455,886

Treasury shares
-
-
(10,000)
(10,000)


At 31 December 2023
2,000
1,801,300
1,145,270
2,948,570


The notes on pages 12 to 22 form part of these financial statements.

Page 10

 

ANANDA ASSET MANAGEMENT LIMITED

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
£
£

Cash flows from operating activities

Profit/(loss) for the financial year
455,886
(209,936)

Adjustments for:

Depreciation of tangible assets
27,223
22,136

Interest received
(7,006)
-

Taxation charge
46,464
46,128

(Increase) in debtors
(209,150)
(141,279)

Increase in creditors
99,690
328,641

Net fair value (gains)/losses recognised in P&L
(370,837)
56,409

Corporation tax (paid)
(48,025)
(95,237)

Foreign exchange
4,619
(31,525)

Net cash generated from operating activities

(1,136)
(24,663)


Cash flows from investing activities

Purchase of tangible fixed assets
(4,949)
(81,453)

Purchase of unlisted and other investments
(198,330)
(1,450,000)

Sale of unlisted and other investments
-
1,580,393

Interest received
7,006
-

Net cash from investing activities

(196,273)
48,940


Net (decrease)/increase in cash and cash equivalents
(197,409)
24,277

Cash and cash equivalents at beginning of year
640,383
584,581

Foreign exchange gains and losses
(4,619)
31,525

Cash and cash equivalents at the end of year
438,355
640,383


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
438,355
640,383


Page 11

 

ANANDA ASSET MANAGEMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Ananda Asset Management Limited is a private company, limited by shares, incorporated in the United Kingdom and registered in England and Wales
The Company's registered office is at 207 Sloane Street, Second Floor, London, England, SW1X 9QX.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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 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.

 
2.2

Going concern

The financial position of the Company is such that it is well placed to manage business risks. The directors have prepared forecasts which indicate that the Company will have available resources to carry out its business for the foreseeable future and have therefore adopted the going concern basis in the preparation of these accounts. 

 
2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

 
2.4

Revenue

Revenue represents fees receivable during the period for investment management services. Management fees are recognised over the period over which the management services are provided. Performance fees are recognised at the end of the period over which the performance is measured.

 
2.5

Interest income

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

Page 12

 

ANANDA ASSET MANAGEMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.6

Pensions

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 Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.7

Current 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 balance sheet 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 balance sheet 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 balance sheet date.

 
2.8

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.

Page 13

 

ANANDA ASSET MANAGEMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.8
Tangible fixed assets (continued)

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:

Leasehold Improvements
-
over length of the lease
Office equipment
-
over 3 years
Computer equipment
-
over 3 years

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.

 
2.9

Valuation of investments

Investments in shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Statement of comprehensive income for the period. 

 
2.10

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

Page 14

 

ANANDA ASSET MANAGEMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.11

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.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.
Investments in non-derivative instruments that are equity to the issuer are measured:
- at fair value with changes recognised in the Statement of income and retained earnings if the shares are publicly traded or their fair value can otherwise be measured reliably;
-  at cost less impairment for all other investments.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of income and retained earnings.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the balance sheet date.
Financial assets and liabilities are offset and the net amount reported in the Balance sheet when there is an 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.
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or income as appropriate. The Company does not currently apply hedge accounting for interest rate and foreign exchange derivatives.

Page 15

 

ANANDA ASSET MANAGEMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

3.


Operating profit/(loss)

The operating profit/(loss) is stated after charging:

2023
2022
£
£

Depreciation of tangible fixed assets
27,223
22,136

Exchange differences
16,859
(29,468)

Auditor's remuneration - audit
12,000
9,000

Auditor's remuneration - tax compliance services
1,600
1,500

Auditor's remuneration - other
8,700
7,300

Operating lease rentals - land and buildings
171,952
159,908


4.


Employees

Staff costs, including directors' remuneration, were as follows:


2023
2022
£
£

Wages and salaries
1,056,500
922,220

Social security costs
138,682
122,212

Cost of defined contribution scheme
9,246
9,466

1,204,428
1,053,898


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Employees
7
7

Page 16

 

ANANDA ASSET MANAGEMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

5.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
350,000
292,443

Company contributions to defined contribution pension schemes
2,642
2,642

352,642
295,085


During the year retirement benefits were accruing to 2 directors (2022 - 2) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £175,000 (2022 - £150,000).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £1,321 (2022 - £1,321).

The Company is exempt from the requirements of paragraph 33.7 of FRS 102 on the grounds that its key management personnel and directors are the same. 


6.


Taxation


2023
2022
£
£

Current tax


UK corporation tax charge/(credit) on profit/(loss) for the year
37,992
(23,113)


Total current tax
37,992
(23,113)

Deferred tax


Origination and reversal of timing differences
2,695
69,241

Change in enacted tax rates
5,777
-

Total deferred tax
8,472
69,241


Taxation on profit on ordinary activities
46,464
46,128
Page 17

 

ANANDA ASSET MANAGEMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
6.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year differs from the standard rate of corporation tax in the UK of 23.5%
 (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit/(loss) on ordinary activities before tax
502,350
(163,808)


Profit/(loss) on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.5% (2022 - 19%)
118,155
(31,124)

Effects of:


Expenses not deductible for tax purposes
3,089
16,720

Enhanced capital allowances for year
-
(3,906)

Utilisation of unprovided tax losses brought forward
(79,769)
-

Unprovided deferred tax on losses carried forward
-
64,438

Deferred tax provided at enacted rate of 25%
5,936
-

Marginal relief
(947)
-

Total tax charge for the year
46,464
46,128


Factors that may affect future tax charges

Details of the Company's deferred tax position are given in note 12.

Page 18

 

ANANDA ASSET MANAGEMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

7.


Tangible fixed assets





Leasehold Improvements
Office equipment
Computer equipment
Total

£
£
£
£



Cost


At 1 January 2023
85,043
8,397
56,449
149,889


Additions
-
-
4,949
4,949



At 31 December 2023

85,043
8,397
61,398
154,838



Depreciation


At 1 January 2023
7,267
615
25,812
33,694


Charge for the year on owned assets
8,505
2,799
15,919
27,223



At 31 December 2023

15,772
3,414
41,731
60,917



Net book value



At 31 December 2023
69,271
4,983
19,667
93,921



At 31 December 2022
77,776
7,782
30,637
116,195


8.


Fixed asset investments





Unlisted investments

£



Valuation


At 1 January 2023
1,819,539


Additions
198,330


Revaluations
370,847



At 31 December 2023
2,388,716




Page 19

 

ANANDA ASSET MANAGEMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

9.


Debtors

2023
2022
£
£


Trade debtors
27,626
34,344

Other debtors
120,801
146,029

Prepayments and accrued income
480,562
239,466

628,989
419,839



10.


Creditors: amounts falling due within one year

2023
2022
£
£

Trade creditors
6,865
67,593

Corporation tax
14,879
-

Other taxation and social security
51,338
32,461

Other creditors
1,798
1,798

Accruals and deferred income
499,768
373,129

574,648
474,981



11.


Financial instruments

2023
2022
£
£

Financial assets


Financial assets measured at fair value through profit or loss
2,388,716
1,819,539




Financial assets measured at fair value through profit or loss comprise of shares in investment funds.

Page 20

 

ANANDA ASSET MANAGEMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

12.


Deferred taxation




2023


£






At beginning of year
(18,291)


Charged to profit or loss
(8,472)



At end of year
(26,763)

The provision for deferred taxation is made up as follows:

2023
2022
£
£


Capital allowances in excess of depreciation
(19,288)
(18,633)

Other short term timing differences
450
342

Timing differences on the taxation of investments
(7,925)
-

(26,763)
(18,291)

Deferred tax is provided at the rate enacted at the Balance sheet date of 25% (2022: 19%). In addition to the deferred tax liability shown above, at 31 December 2022 the Company had an unprovided deferred tax asset of £64,438 in relation to tax losses carried forward.  No asset was recognised in relation to the losses due to its recovery being uncertain at the balance sheet date.


13.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



2,000,000 (2022 - 2,000,000) Ordinary shares of £0.001 each
2,000
2,000


14.


Analysis of net debt




At 1 January 2023
Cash flows
At 31 December 2023
£

£

£

Cash at bank and in hand

640,383

(202,028)

438,355


640,383
(202,028)
438,355

Page 21

 

ANANDA ASSET MANAGEMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

15.


Commitments under operating leases

At 31 December 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
184,500
184,500

Later than 1 year and not later than 5 years
380,626
565,126

565,126
749,626


16.


Controlling party

The Company's ultimate controlling party is Louis Villa.

Page 22