Company registration number:
for the Year Ended
Guru Systems Limited
Contents
Balance Sheet |
|
Statement of Changes in Equity |
|
Notes to the Unaudited Financial Statements |
Guru Systems Limited
(Registration number: 08172055)
Balance Sheet as at 31 December 2023
Note |
2023 |
2022 |
|
Fixed assets |
|||
Intangible assets |
|
|
|
Tangible assets |
|
|
|
|
|
||
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current liabilities |
( |
( |
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Provisions for liabilities |
|||
Deferred tax liabilities |
- |
(317,603) |
|
Net liabilities |
( |
( |
|
Capital and reserves |
|||
Called up share capital |
|
|
|
Other reserves |
|
|
|
Profit and loss account |
( |
( |
|
Total equity |
( |
( |
For the financial year ending 31 December 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
• |
|
• |
The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. |
These financial statements have been prepared and delivered in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006. The option not to file the profit and loss account and directors’ report has been taken.
Guru Systems Limited
(Registration number: 08172055)
Balance Sheet as at 31 December 2023
Approved and authorised by the
|
Guru Systems Limited
Statement of Changes in Equity
for the Year Ended 31 December 2023
Share capital |
Other reserves |
Retained earnings |
Total |
|
At 1 January 2023 |
|
|
( |
( |
Loss for the year |
- |
- |
( |
( |
Share based payment transactions |
- |
4,941 |
- |
4,941 |
At 31 December 2023 |
|
|
( |
( |
Share capital |
Other reserves |
Retained earnings |
Total |
|
At 1 January 2022 |
|
|
|
|
Loss for the year |
- |
- |
( |
( |
Share based payment transactions |
- |
(33,699) |
- |
(33,699) |
At 31 December 2022 |
100 |
43,039 |
(197,653) |
(154,514) |
Guru Systems Limited
Notes to the Unaudited Financial Statements
for the Year Ended 31 December 2023
General information |
The company is a private company limited by share capital, incorporated in England.
The address of its registered office is:
England
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
These financial statements are presented in Sterling (£).
Going concern
The directors, having made due and careful enquiry and having prepared and stress tested forecasts, are of the opinion that the company has adequate working capital to execute its operations for at least the next 12 months. The financial projections take into account certain sensitivities around consumer demand, supply availability and appropriate funding opportunities. The directors have made an informed judgement, at the time of approving the financial statements, that the company has adequate resources to continue in operational existence for the foreseeable future. As a result, the directors have continued to adopt the going concern basis of accounting in preparing the annual financial statements.
Additionally, the company benefits from supportive investors who have provided debt facilities through convertible loan notes.
As a result, the company’s financial statements have been prepared on a going concern basis.
Guru Systems Limited
Notes to the Unaudited Financial Statements
for the Year Ended 31 December 2023
Turnover recognition
Revenue is recongised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Sale of goods
Revenue from the sale of goods is recognised when the following conditions are satisfied:
- the Company has transferred the significant risks and rewards of ownership to the buyer;
- the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
- the amount of revenue can be measured reliably;
- it is probable that the Company will receive the consideration due under the transaction; and
- the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Rendering of services
In respect of on-going contracts, turnover represents the value of work done in the year and is recognised on a monthly basis.
Government grants
Government grants are recognised under the accruals model resulting in income being recognised on a systematic basis over the period in which the related costs are incurred for which the grant is compensating. The income from the scheme is recognised as other income in the profit and loss and timing differences presented as other debtors or deferred income within the balance sheet.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Deferred tax is recognised on timing differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit. The company has taxable trading losses which are held off balance sheet due to uncertainty over future utilisation.
Deferred tax liabilities are presented within provisions for liabilities on the balance sheet.
Guru Systems Limited
Notes to the Unaudited Financial Statements
for the Year Ended 31 December 2023
Tangible assets
Tangible assets are stated at cost, less accumulated depreciation and accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation of tangible assets
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Fixtures and fittings |
20% straight line |
Office equipment |
20% straight line |
Computer equipment |
20% straight line |
Intangible assets
Development costs that are directly attributable to the design and testing of identifiable and unique services controlled by the company are recognised as intangible assets when the following criteria are met:
1) it is technically feasible to complete the project so that it will be available for use;
2) management intends to complete the project and use or sell it;
3) there is an ability to use or sell the project;
4) it can be demonstrated how the project will generate probable future economic benefits;
5) adequate technical, financial and other resources to complete the development and to use or sell the project are available; and
6) the expenditure attributable to the project during its development can be reliably measured.
Other development expenditures that do not meet these criteria are recognised as an expense as incurred. Development costs previously recognised as an expense are not recognised as an asset in a subsequent period. Project are amortised in the year following capitalisation.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
Asset class |
Amortisation method and rate |
Development expenditure |
20% straight line |
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
Guru Systems Limited
Notes to the Unaudited Financial Statements
for the Year Ended 31 December 2023
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
Creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Assets held under hire purchase agreements are capitalised as tangible fixed assets with the future obligation being recognised as a liability. Finance costs are recognised in the Profit and Loss Account calculated at a constant periodic rate of interest over the term of the liability.
Reserves
Called up share capital represents the nominal value of shares that have been issued.
Profit and loss account includes all current and prior period profits and losses.
Other reserves relate to share options in the parent company, Enpal Limited, for the benefit of the employees in Guru Systems Limited.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Guru Systems Limited
Notes to the Unaudited Financial Statements
for the Year Ended 31 December 2023
Dividends
Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution pension obligation
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 payments obligations.
The contributions are recognised as an expense in the profit and loss account 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.
Share based payments
The company operates an equity-settled, share-based compensation plan, under which the entity receives services from employees as consideration for equity instruments (options) of the entity's parent. The fair value of the employee services received is measured by reference to the estimated fair value at the grant date of equity instruments granted and is recognised as an expense over the vesting period. The estimated fair value of the option granted is calculated using the Black Scholes option pricing model.
The proceeds received net of any directly attributable transaction costs are credited to share capital (nominal value) and share premium when the options are exercised.
Staff numbers |
The average number of persons employed by the company (including directors) during the year was
Guru Systems Limited
Notes to the Unaudited Financial Statements
for the Year Ended 31 December 2023
Intangible assets |
Development costs |
Total |
|
Cost or valuation |
||
At 1 January 2023 |
|
|
Additions internally developed |
|
|
At 31 December 2023 |
|
|
Amortisation |
||
At 1 January 2023 |
|
|
Amortisation charge |
|
|
At 31 December 2023 |
|
|
Carrying amount |
||
At 31 December 2023 |
|
|
At 31 December 2022 |
|
|
Guru Systems Limited
Notes to the Unaudited Financial Statements
for the Year Ended 31 December 2023
Tangible assets |
Fixtures and fittings |
Office Equipment |
Total |
|
Cost or valuation |
|||
At 1 January 2023 |
|
|
|
Additions |
|
|
|
Disposals |
- |
( |
( |
At 31 December 2023 |
|
|
|
Depreciation |
|||
At 1 January 2023 |
|
|
|
Charge for the year |
|
|
|
Eliminated on disposal |
- |
( |
( |
At 31 December 2023 |
|
|
|
Carrying amount |
|||
At 31 December 2023 |
|
|
|
At 31 December 2022 |
|
|
|
Stocks |
2023 |
2022 |
|
Stocks held for sale |
|
|
Debtors |
2023 |
2022 |
|
Trade debtors |
|
|
Prepayments |
|
|
Other debtors and accrued income |
|
|
Corporation tax |
486,905 |
292,860 |
|
|
Guru Systems Limited
Notes to the Unaudited Financial Statements
for the Year Ended 31 December 2023
Creditors |
Creditors: amounts falling due within one year
Note |
2023 |
2022 |
|
Loans and borrowings |
|
|
|
Trade creditors |
|
|
|
Amounts owed to group undertakings and undertakings in which the company has a participating interest |
|
|
|
Taxation and social security |
|
|
|
Other creditors |
|
|
|
|
|
||
Due after one year |
|||
Bank borrowings |
|
|
Amounts owed to group undertakings are interest free and repayable on demand. All amounts due from group undertakings are owed to the ultimate parent company, Enpal Limited. The Company and the ultimate parent company share an identical board and statutory directors.
Loans and borrowings |
Current loans and borrowings
2023 |
2022 |
|
Bank borrowings |
|
|
Non-current loans and borrowings
2023 |
2022 |
|
Bank borrowings |
|
|
Included within bank loans is £729,225 (2022 - £875,000) in relation to a Coronavirus Large Business Interruption Loan. £291,550 (2022: £250,000) of the loan balance is due within one year and £437,675 (2022: £625,000) is due within 2-5 years. The bank loan is secured by a fixed and floating charge over all the assets of the company.
Share based payments |
The company operates a share option scheme for certain employees of the company. A debit to administrative expenses of £4,941 has been recognised in respect of these options (2022 - charge £33,699). The directors do not consider these options to materially impact the accounts. No options were exercised in the current financial year. As at 31 December 2023, the total number of active options were 21,375 (2022 - 21,375).
Guru Systems Limited
Notes to the Unaudited Financial Statements
for the Year Ended 31 December 2023
Related party transactions |
The company has taken advantage of the exemption under FRS102 to not disclose transactions with wholly owned subsidiaries of the group.
Summary of transactions with other related parties
Parent and ultimate parent undertaking |
The company's immediate parent is