Rite Geosystems Limited
Annual Report and Financial Statements
For the year ended
31 March 2024
Company Registration No. 12142531 (England and Wales)
RITE GEOSYSTEMS LIMITED (Company Number: 12142531)
Registered Office: 71-75, Shelton Street, Covent Garden, London, WC2H 9JQ, England;
www.encardio.com
Rite Geosystems Limited
Continuation sheet
Company Information
Directors
Amit Gujral
Arushi Bhalla
Company number
12142531
Registered office
71-75 Shelton Street
Covent Garden
London
United Kingdom
WC2H 9JQ
Auditors
Moore Kingston Smith LLP
6th Floor, 9 Appold Street
London
United Kingdom
EC2A 2AP
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Rite Geosystems Limited
Continuation sheet
Directors' Report
For the year ended from April 01, 2023 to March 31, 2024
The directors present their annual report and financial statements for the year ended March 31, 2024.
Principal activities
The principal activity of the company is that of supply & services of geotechnical, geophysical, geodetic, surveying, hydrological, structural, metrological & environmental monitoring systems for providing remote access to collected data and analytical results.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Amit Gujral
Arushi Bhalla
Auditor
The auditor, Moore Kingston Smith LLP, were deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company's auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company's auditor is aware of that information.
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
On behalf of the board
Amit Gujral
Managing Director
Date: 28 September 2024
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Rite Geosystems Limited
Continuation sheet
Directors' Responsibilities Statement
For the year ended from April 01, 2023 to March 31, 2024
The directors are responsible for preparing the annual 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 year. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgments and accounting estimates that are reasonable and prudent;
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 enable them to ensure that the financial statements comply with the Companies Act 2006.  They 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.
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Rite Geosystems Limited
Continuation sheet
Independent Auditor's Report
To the Members of Rite Geosystems Limited
Opinion
We have audited the financial statements of Rite Geosystems Limited (the 'company') for the year ended 31 March 2024 which comprise the Profit and Loss Account, the Balance Sheet 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 United Kingdom Accounting Standards, including FRS 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 March 2024 and of its loss 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 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 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 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 there is 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.
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Rite Geosystems Limited
Continuation sheet
Independent Auditor's Report (Continued)
To the Members of Rite Geosystems Limited
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:true
·
the information given in the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
·
the Directors' Report has 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 Directors' Report.
We have nothing to report in respect of the following matters where 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; or
·
the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the Directors' Report and take advantage of the small companies exemption from the requirement to prepare a Strategic Report.
Responsibilities of directors
As explained more fully in the Directors' Responsibilities Statement, 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.
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.
As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
·
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
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Rite Geosystems Limited
Continuation sheet
Independent Auditor's Report (Continued)
To the Members of Rite Geosystems Limited
·
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the company's internal control.
·
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
·
Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the company to cease to continue as a going concern.
·
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud
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.
The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.
Our approach was as follows:
·
We obtained an understanding of the legal and regulatory requirements applicable to the company and considered that the most significant are the Companies Act 2006, UK financial reporting standards as issued by the Financial Reporting Council, and UK taxation legislation.
·
We obtained an understanding of how the company complies with these requirements by discussions with management and those charged with governance.
·
We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.
·
We inquired of management and those charged with governance as to any known instances of noncompliance or suspected non-compliance with laws and regulations.
·
Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.
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Rite Geosystems Limited
Continuation sheet
Independent Auditor's Report (Continued)
To the Members of Rite Geosystems Limited
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
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.
Ian Matthews (Senior Statutory Auditor)
for and on behalf of Moore Kingston Smith LLP
    4 October 2024
Chartered Accountants
Statutory Auditor
6th floor, 9 Appold Street
London
United Kingdom
EC2A 2AP
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Rite Geosystems Limited
Continuation sheet
Balance Sheet
As at March 31, 2024
Particulars
Note no.
2024
2023
(£)
(£)
I.
Current assets
4
4.1
-
412
(a) Debtors and Others
6,525
16,679
(b) Cash and cash equivalents
6,525
17,091
Subtotal
II.
Current liabilities
5.1
22,040
19,224
Subtotal
22,040
19,224
Net current assets
(15,515)
(2,133)
III.
Non-current liabilities
5.2
415,457
416,314
Net liabilities
(430,972)
(418,447)
IV.
Capital and reserves
6
(a) Share capital
6.1
25,000
25,000
(b) Profit & loss account / retained earning
6.2
(455,972)
(443,447)
Total equity
(430,972)
(418,447)
See accompanying notes forming integral part of the financial statements.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to small companies regime.
for and on behalf of the board of directors
Company Registration No. 12142531
Mr. Amit Gujral
Managing Director
Date: 28 September 2024
Profit and loss account
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Rite Geosystems Limited
Continuation sheet
For the year ended March 31, 2024
Particulars
Note no.
2024
2023
(£)
(£)
I.
Turnover
-
-
II.
Expenses:
Cost of sales
-
10,735
Admin expenses
12,525
136,556
Total expenses
12,525
147,291
III.
Profit / (Loss) before tax                (I-II)
(12,525)
(147,291)
IV.
Tax expense:
Current Tax
-
-
V.
Profit after tax                               (III-IV)
(12,525)
(147,291)
Notes to the Financial Statements
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Rite Geosystems Limited
Continuation sheet
As at and for the year ended March 31, 2024
1
Accounting policies
Company information
Rite Geosystems Limited is a private company limited by shares incorporated in England and Wales. The registered office is 71-75 Shelton Street, Covent Garden, London, United Kingdom, WC2H 9JQ.
1.1
Accounting convention
These financial statements have been prepared in accordance with Section 1A of FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest pound.
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 £12,525 and at the Balance Sheet date has net liabilities of £430,972. Subsequent to the year end, the company is still trying to establish itself in the industry and therefore the company is anticipating that further losses may be incurred in the coming months. The company is currently dependent on the continuing financial support of Encardio-rite Electronics Private Limited, its ultimate parent company, and as such the directors have considered the going concern position of the company and their ability to meet liabilities as they fall due over the next twelve months. The company is funded by and has received financial support from its parent company and at the year-end a total of £415,457 is owed to fellow group companies. This amount will not be called upon until such time that the company is able to repay it.true
Encardio-rite Electronics Private Limited has confirmed it will continue to provide the necessary financial support to the company to enable it to continue as a going concern for a year of at least twelve months from the date of approval of the financial statements and to enable the company to meet its liabilities as they fall due.
On the basis of the assessment of the company's financial position and the support provided by Encardio-rite Electronics Private Limited, the directors have reasonable expectation that the company will have sufficient resources to continue in operation existence for the foreseeable future and for this reason continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
      Turnover
Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes.
1.4
Cash at bank and in hand
Cash at bank and in hand are basic financial assets and include cash in hand and deposits held at call with banks.
Notes to the Financial Statements (Continued)
As at and for the year ended March 31, 2024
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Rite Geosystems Limited
Continuation sheet
1
Accounting policies (continued)
1.5
Financial instruments
The company only has basic financial instruments measured at amortized cost. The company has no financial instruments that are classified as ‘other' or basic instruments measured at fair value.
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 recognized as liabilities once they are no longer at the discretion of the company.
1.7
Stock
Stock is stated at the lower of cost and estimated selling price less costs to complete and sell.
1.8
Employee benefits
The costs of short-term employee benefits are recognized as a liability and an expense, unless those costs are required to be recognized as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognized in the year in which the employee's services are received.
Termination benefits are recognized immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.9
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognized for all timing differences and deferred tax assets are recognized to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognized if the timing 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 year when the liability is settled or the asset is realized. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in
Notes to the Financial Statements (Continued)
As at and for the year ended March 31, 2024
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Rite Geosystems Limited
Continuation sheet
1
Accounting policies (continued)
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.
1.11
     Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the profit and loss account for the year.
2
Operating losses
Operating losses are stated after Fees payable £9,480 (2023: £ 11,800) to the company's auditors for the audit of the company's financial statements.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was 0 (2023 : 1).
4
Current assets
4.1
Debtors & Others
Particulars
2024
2023
(£)
(£)
Recoverable VAT
-
412
Total
-
412
5
Current liabilities
5.1
Trade payables
Particulars
2024
2023
(£)
(£)
Loan & Advance
-
1,474
Moore Kingston Smith LLP
9,480
11,800
Unpaid Salary
-
5,950
Encardio-Rite Electronics Pvt. Ltd.
12,560
-
Subtotal (A)
22,040
19,224
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Rite Geosystems Limited
Continuation sheet
Notes to the Financial Statements (Continued)
As at and for the year ended March 31, 2024
5.2
Other long term liabilities (Loans)
Particulars
2024
2023
(£)
(£)
Encardio-Rite Geosystems LLC, UAE
415,457
416,314
Subtotal (B)
415,457
416,314
Total (A+B)
437,497
435,539
6
Capital and reserves
6.1
Share Capital
Particulars
2024
2023
(£)
(£)
250 Ordinary shares of £100 each
25,000
25,000
Total
25,000
25,000
7
Related party transactions
At the Balance Sheet date the company owed  £415,457 (2023: £416,314)  to Encardio-rite Geosystems LLC, a fellow subsidiary company in relation to expense paid on behalf of the company. The balance  includes interest charge of £8,326 (2023: £6,793), compounded at 2% per annum.
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Rite Geosystems Limited
Continuation sheet
The company has taken exemption under FRS 102 section 33.1A – Related party transactions, not  to disclose transactions entered into between  two or more members of a group, provided that and subsidiary which is a party to the transaction is wholly owned by such a member.true
8
Parent company
The ultimate parent is Encardio-rite Electronics Private Limited  (a company incorporated in India). The registered address of the ultimate parent is A-7 Industrial Estate, Talkatora Road, Lucknow, 226011, Uttar Pradesh, India. Consolidated accounts for the group are publically available on www.mca.gov.in.
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