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Registered number: 04254616














SPRINKLR UK LTD
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

 
SPRINKLR UK LTD
 
 
COMPANY INFORMATION


Directors
R Thomas 
M Sarin 
J Scott 




Registered number
04254616



Registered office
4th Floor
123 Victoria Street

London

SW1E 6RA




Independent auditors
Sopher + Co LLP
Chartered Accountants & Statutory Auditors

5 Elstree Gate

Elstree Way

Borehamwood

Hertfordshire

WD6 1JD





 
SPRINKLR UK LTD
 

CONTENTS



Page
Strategic Report
 
1 - 2
Directors' Report
 
3 - 4
Independent Auditors' Report
 
5 - 8
Statement of Comprehensive Income
 
9
Statement of Financial Position
 
10
Statement of Changes in Equity
 
11
Statement of Cash Flows
 
12
Analysis of Net Debt
 
13
Notes to the Financial Statements
 
14 - 24


 
SPRINKLR UK LTD
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2024

Introduction
 
The directors present the Company's strategic report for the year ended 31 January 2024.

Business review
 
The Company’s operations are dependent on the activity levels of its parent undertaking. For the year ended 31 January 2024 the Company's turnover was £33.3 million compared to £35.5 million in 2023. 
Sprinklr has a hybrid working model for all staff. The increase in global reliance on social media communications enables the parent company to continue to grow the business from which the Company benefits. The parent company has sufficient funds to cover the Company's future cash flow requirements.

Principal risks and uncertainties
 
The directors consider the principal risks and uncertainties to be the normal commercial risks of operating in a fast moving global technology led market, including the loss of key employees or inability to recruit staff of the appropriate calibre to maintain the company's service levels.

Financial key performance indicators
 
The key performance indicator for the Company is operating profit.

Other key performance indicators
 
The other key performance indicators are staff numbers and number of Sprinklr Inc. customers supported.

Directors' statement of compliance with duty to promote the success of the Company
 
The directors consider the successful running of the Company centres around their long-term strategy of maintaining a sustainable, profitable business.  The directors consider that they have acted in the way they consider, in good faith, would be most likely to promote the success of the Company for the benefit of its members as a whole (having regard to the stakeholders and matters set out in S172(1)(a-f) of the Act) in the decisions taken during the year.
In coming to this conclusion, the directors have considered the following:
• Consideration of long-term consequences are an inherent part of the Company's decision-making processes. The board considers that the interests of the Company and its shareholders are aligned in seeking sustainable value creation over the longer term through the Company's operations, promoting long term strategic decision-making.
• The directors continue to ensure that a reputation for high standards of business conduct with customers and other stakeholders is maintained.
• The Company has continued throughout the year to provide employees with relevant information and to seek their views on matters of common concern. Priority is given to ensuring that employees are aware of all significant matters affecting the Company.
• When taking decisions, the board considers the potential impact the decisions they take may have on the community and environment and socially.  
• The integrity of the Company is underpinned with policies in relation to bribery and corruption, data protection, equality, diversity, fraud and whistleblowing, each of which is reinforced through appropriate training.
• The directors confirm that throughout the year they have acted in the way they consider, in good faith, to
Page 1

 
SPRINKLR UK LTD
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024

be most likely to promote the success of the Company for the benefit of its members as a whole.


This report was approved by the board on 28 October 2024 and signed on its behalf.





M Sarin
Director
Page 2

 
SPRINKLR UK LTD
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JANUARY 2024

The directors present their report and the financial statements for the year ended 31 January 2024.

Directors

R Thomas 
M Sarin 
D P Haley (resigned 8 March 2023)
J Scott (appointed 20 March 2023)

Results and dividends

The profit for the year, after taxation, amounted to £1,421,803 (2023 - £2,315,221).

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.

Future developments

There are no plans which will significantly change the activities and risks of the Company.

Engagement with suppliers, customers and others

Delivering the Company’s strategy requires strong mutually beneficial relationships with suppliers the directors seek the promotion and application of certain general principles in such relationships. These principles involve integrity and fairness in all aspects of the Company’s business. The ability to promote these principles effectively is an important factor in the decision to enter into or remain in such relationships.

Page 3

 
SPRINKLR UK LTD
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024

Qualifying third party indemnity provisions

The Company has granted an indemnity to the current and former directors and secretaries against liability in respect of proceedings brought by third parties, subject to the conditions set out in the Companies Act 2006. Such qualifying third party indemnity provision remains in force as at the date of the approval of the accounts.

Disclosure of information to auditors

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 auditors are 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 auditors are aware of that information.

Events after the reporting date

There have been no significant events affecting the Company since the year end.

Auditors

Under section 487(2) of the Companies Act 2006Sopher + Co LLP will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

This report was approved by the board on 28 October 2024 and signed on its behalf.
 





M Sarin
Director

Page 4

 
SPRINKLR UK LTD
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SPRINKLR UK LTD
 

Opinion


We have audited the financial statements of Sprinklr UK Ltd (the 'Company') for the year ended 31 January 2024, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, 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 January 2024 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 Auditors' 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 directors are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Auditors' Report thereon. 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.


In connection with our audit of the financial statementsour 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 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 or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are
Page 5

 
SPRINKLR UK LTD
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SPRINKLR UK LTD (CONTINUED)

required to report that fact.


We have nothing to report in this regard.


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 3, 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.


Auditors' 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 Auditors' 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:

 
Page 6

 
SPRINKLR UK LTD
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SPRINKLR UK LTD (CONTINUED)

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
 
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; 
we identified the laws and regulations applicable to the Company through discussions with directors and other management, and from our commercial knowledge and experience of the social media service sector; 
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the Company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and 
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. 

We assessed the susceptibility of the Company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: 
 
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; 
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and 
understanding the design of the Company’s remuneration policies. 

To address the risk of fraud through management bias and override of controls, we: 
 
performed analytical procedures to identify any unusual or unexpected relationships; 
tested journal entries to identify unusual transactions; and
investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: 
 
agreeing financial statement disclosures to underlying supporting documentation; 
reading the minutes of meetings of those charged with governance; 
enquiring of management as to actual and potential litigation and claims; and 
reviewing correspondence with HMRC, relevant regulators and the Company’s legal advisors. 

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 Auditors' Report.


Page 7

 
SPRINKLR UK LTD
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SPRINKLR UK LTD (CONTINUED)

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 Auditors' 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.





Stephen Iseman FCA (Senior Statutory Auditor)
  
for and on behalf of
Sopher + Co LLP
 
Chartered Accountants
Statutory Auditors
  
5 Elstree Gate
Elstree Way
Borehamwood
Hertfordshire
WD6 1JD

28 October 2024
Page 8

 
SPRINKLR UK LTD
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JANUARY 2024

2024
2023
Note
£
£

  

Turnover
 4 
33,224,151
35,541,658

Administrative expenses
  
(31,279,463)
(32,605,831)

Interest receivable and similar income
  
27,938
632

Interest payable and similar expenses
  
(142)
-

Profit before tax
  
1,972,484
2,936,459

Tax on profit
 10 
(550,681)
(621,238)

Profit for the financial year
  
1,421,803
2,315,221

There was no other comprehensive income for 2024 (2023:£NIL).

The notes on pages 14 to 24 form part of these financial statements.

Page 9

 
SPRINKLR UK LTD
REGISTERED NUMBER:04254616

STATEMENT OF FINANCIAL POSITION
AS AT 31 JANUARY 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible fixed assets
 11 
178,796
279,133

Current assets
  

Debtors: amounts falling due after more than one year
 12 
1,264,496
-

Debtors: amounts falling due within one year
 12 
9,327,440
12,951,597

Bank and cash balances
  
3,012,891
855,611

Current Liabilities
  
13,604,827
13,807,208

Creditors: amounts falling due within one year
 13 
(4,996,685)
(7,421,097)

Net current assets
  
 
 
8,608,142
 
 
6,386,111

Total assets less current liabilities
  
8,786,938
6,665,244

Creditors: amounts falling due after more than one year
 14 
(663,551)
-

Provisions for liabilities
  

Deferred tax
 15 
(36,340)
-

Net assets
  
8,087,047
6,665,244


Capital and reserves
  

Called up share capital 
 16 
16,319
16,319

Profit and loss account
 17 
8,070,728
6,648,925

  
8,087,047
6,665,244


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 28 October 2024.




M Sarin
Director

The notes on pages 14 to 24 form part of these financial statements.

Page 10

 
SPRINKLR UK LTD
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2024


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 February 2022
16,319
4,333,704
4,350,023



Profit for the year
-
2,315,221
2,315,221



At 1 February 2023
16,319
6,648,925
6,665,244



Profit for the year
-
1,421,803
1,421,803


At 31 January 2024
16,319
8,070,728
8,087,047


The notes on pages 14 to 24 form part of these financial statements.

Page 11

 
SPRINKLR UK LTD
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JANUARY 2024

2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
1,421,803
2,315,221

Adjustments for:

Depreciation of tangible assets
301,240
530,836

Loss on disposal of tangible assets
13,846
(2,209)

Interest paid
142
-

Interest received
(27,938)
(632)

Taxation charge
550,681
621,238

(Increase)/decrease in debtors
(49,791)
68,018

Decrease/(increase) in amounts owed by groups
2,791,903
(3,685,985)

(Decrease)/increase in creditors
(1,707,653)
1,129,409

Corporation tax paid
(950,000)
(610,000)

Net cash generated from operating activities

2,344,233
365,896


Cash flows from investing activities

Purchase of tangible fixed assets
(214,749)
(222,645)

Sale of tangible fixed assets
-
12,236

Interest received
27,938
632

Net cash outflow from investing activities

(186,811)
(209,777)

Cash flows from financing activities

Interest paid
(142)
-

Net cash used in financing activities
(142)
-

Net increase in cash and cash equivalents
2,157,280
156,119

Cash and cash equivalents at beginning of year
855,611
699,492

Cash and cash equivalents at the end of year
3,012,891
855,611


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
3,012,891
855,611

3,012,891
855,611


The notes on pages 14 to 24 form part of these financial statements.

Page 12

 
SPRINKLR UK LTD
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 JANUARY 2024




At 1 February 2023
Cash flows
At 31 January 2024
£

£

£

Cash at bank and in hand

855,611

2,157,280

3,012,891

Debt due within 1 year

(101,925)

(3,893)

(105,818)


753,686
2,153,387
2,907,073

The notes on pages 14 to 24 form part of these financial statements.

Page 13

 
SPRINKLR UK LTD
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

1.


General information

Sprinklr UK Limited is a private company, limited by shares, incorporated in England and Wales. Its principal place of business is 123 Victoria Street, 4th Floor, London, SW1E 6RA.
The Company's principal activity is that of a marketing, sales and services support agency to the Company's parent undertaking Sprinklr, Inc.

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 (see note 3).

The following principal accounting policies have been applied:

 
2.2

Revenue

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding Value Added Tax.
Turnover represents consideration receivable for the provision of services and recharged costs.
Revenue for recharged costs is recognised in the month the related expense is incurred.

 
2.3

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.

At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Page 14

 
SPRINKLR UK LTD
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

2.Accounting policies (continued)


2.3
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives.

Depreciation is provided on the following basis:

Short-term leasehold property
-
Straight line over the term of the lease
Office equipment
-
25% per annum
Computer equipment
-
50% per annum

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 the Statement of Comprehensive Income.

 
2.4

Debtors

Short term debtors are measured at the transaction price.

 
2.5

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty.

 
2.6

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 and loans to related parties.

Financial liabilities, including trade and other creditors and loans to the ultimate parent Company are initially recognised at cost price. If evidence identified of changes to the liabilities, an impairment gain is recognised in the Statement of Comprehensive Income.

 
2.7

Creditors

Short term creditors are measured at the transaction price.

Page 15

 
SPRINKLR UK LTD
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

2.Accounting policies (continued)

 
2.8

Foreign currency translation

The Company's functional and presentational currency is £ Sterling.
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.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss.

 
2.9

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.10

Pensions

Defined contribution pension plan
The Company contributes to 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 the Statement of Comprehensive Income when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.

Page 16

 
SPRINKLR UK LTD
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

2.Accounting policies (continued)

 
2.11

Current and deferred taxation

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 reporting date.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
a) 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
b) 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. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

 
2.12

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 17

 
SPRINKLR UK LTD
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the Company's accounting policies, which are described in note 2, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
The critical judgements made by management that have a significant effect on the amounts recognised in the financial statements is:
a) Determine whether leases entered into by the Company as a lessee are operating or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the Company on a lease by lease basis.
The critical estimates made by management that have a significant effect on the amounts recognised in the financial statements are:
a) Tangible assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and estimated disposal values.
b) The provision for dilapidation represents the directors' best estimate of the present value of the cost to the Company to put back the leased property at the end of the lease into the same condition it was when the lease commenced. 


4.


Turnover

All turnover arose from trading with the parent company in the USA.


5.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Exchange differences
224,383
(447,830)

Other operating lease rentals
1,127,158
921,802

Page 18

 
SPRINKLR UK LTD
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

6.


Auditors' remuneration

2024
2023
£
£

Fees payable to the Company's auditors in respect of:

Audit-related assurance services
16,200
16,000

All other services
2,300
2,300


7.


Employees

Staff costs were as follows:


2024
2023
£
£

Wages and salaries
21,927,417
23,808,449

Social security costs
3,580,916
3,486,118

Cost of defined contribution scheme
443,097
318,515

25,951,430
27,613,082


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


        2024
        2023
            No.
            No.







Administration and marketing
160
176


8.


Interest receivable

2024
2023
£
£


Bank interest receivable
27,938
632


9.


Interest payable and similar expenses

2024
2023
£
£


Other interest payable
142
-

Page 19

 
SPRINKLR UK LTD
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

10.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
514,341
621,238

Deferred tax


Origination and reversal of timing differences
36,340
-


Taxation on profit on ordinary activities
550,681
621,238

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - higher than) the composite (2022 - standard) rate of corporation tax in the UK of 24.03% (2023 - 19%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
1,972,484
2,936,459


Profit on ordinary activities multiplied by the composite (2022 - standard) rate of corporation tax in the UK of 24.03% (2022 - 19%)
473,988
557,927

Effects of:


Expenses not deductible for tax purposes
23,057
23,377

Depreciation for year in excess of capital allowances
18,036
36,514

Short term timing difference leading to an increase in taxation
(740)
3,420

Deferred tax charge
36,340
-

Total tax charge for the year
550,681
621,238


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 20

 
SPRINKLR UK LTD
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

11.


Tangible fixed assets





Short-term leasehold property
Office equipment
Computer equipment
Total

£
£
£
£



Cost


At 1 February 2023
287,809
71,943
1,236,055
1,595,807


Additions
-
63,776
150,973
214,749


Disposals
-
-
(158,325)
(158,325)



At 31 January 2024

287,809
135,719
1,228,703
1,652,231



Depreciation


At 1 February 2023
267,946
48,776
999,952
1,316,674


Charge for the year on owned assets
19,863
28,930
252,447
301,240


Disposals
-
-
(144,479)
(144,479)



At 31 January 2024

287,809
77,706
1,107,920
1,473,435



Net book value



At 31 January 2024
-
58,013
120,783
178,796



At 31 January 2023
19,863
23,167
236,103
279,133

Page 21

 
SPRINKLR UK LTD
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

12.


Debtors

2024
2023
£
£

Due after more than one year

Rent deposit
1,264,496
-


2024
2023
£
£

Due within one year

Amounts owed by group undertakings
8,267,944
11,059,847

Other debtors
759,931
1,520,813

Prepayments and accrued income
299,565
370,937

9,327,440
12,951,597


Amounts owed by group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.


13.


Creditors: Amounts falling due within one year

2024
2023
£
£

Trade creditors
435,587
345,614

Corporation tax
-
53,208

Other taxation and social security
729,804
1,175,292

Other creditors
156,698
170,608

Accruals and deferred income
3,674,596
5,676,375

4,996,685
7,421,097



14.


Creditors: Amounts falling due after more than one year

2024
2023
£
£

Provision for dilapidation
540,060
-

Accruals
123,491
-

663,551
-


Page 22

 
SPRINKLR UK LTD
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

15.


Deferred taxation




2024


£






Charged to profit or loss
(36,340)



At end of year
(36,340)

The deferred taxation balance is made up as follows:

2024
2023
£
£


Accelerated capital allowances
(36,340)
-

(36,340)
-


16.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



164,000 (2023 - 164,000) Ordinary shares of £0.01 each
1,640
1,640
1,391,352 (2023 - 1,391,352) Ordinary A shares of £0.01 each
13,914
13,914
76,527 (2023 - 76,527) Ordinary C shares of £0.01 each
765
765

16,319

16,319

Ordinary shares and A Ordinary shares carry full voting rights and rights to receive 10% and 90% respectively of the aggregate amount of dividends distributed and participate on a winding up. C Ordinary shares do not carry voting rights nor entitlement to receive dividends and participate on a winding up.



17.


Reserves

Profit and loss account

This reserve represents the cumulative balance of retained profits and losses to the Statement of Financial Position date, all of which are distributable.


18.


Pension commitments

The Company contributes to a defined contribution pension scheme. The pension cost charge represents contributions payable by the Company to the fund and amounted to £443,097 (2023 - £318,515). Contributions totalling £34,437 (2023 - £37,515) were payable to the fund at the reporting date.

Page 23

 
SPRINKLR UK LTD
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

19.


Commitments under operating leases

At 31 January 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
£
£


Not later than 1 year
390,222
926,638

Later than 1 year and not later than 5 years
5,268,550
-

5,658,772
926,638


20.


Related party transactions

The Company has taken advantage of not disclosing transactions with wholly owned companies within the group as permitted under FRS 102 S33 1a.
Key management personnel
The aggregate remuneration payable to key management personnel amounted to £1,324,804             (2023 - £1,016,147).


21.


Controlling party

The directors regard Sprinklr Inc., a company incorporated in the United States of America, as the ultimate parent undertaking.
 
Page 24