Company registration number 11539646 (England and Wales)
TRANSAK LIMITED (FORMERLY KNOWN AS LIGHT TECHNOLOGY LIMITED)
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
TRANSAK LIMITED (FORMERLY KNOWN AS LIGHT TECHNOLOGY LIMITED)
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 7
TRANSAK LIMITED (FORMERLY KNOWN AS LIGHT TECHNOLOGY LIMITED)
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
4
14,474
38,475
Current assets
Stocks
4,257,430
533,194
Debtors
5
2,086,641
1,462,298
Cash at bank and in hand
1,303,773
640,760
7,647,844
2,636,252
Creditors: amounts falling due within one year
6
(8,279,361)
(3,261,174)
Net current liabilities
(631,517)
(624,922)
Net liabilities
(617,043)
(586,447)
Capital and reserves
Called up share capital
7
15,000
15,000
Profit and loss reserves
(632,043)
(601,447)
Total equity
(617,043)
(586,447)
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 31 December 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved and signed by the director and authorised for issue on 30 December 2024
Mr S J Start
Director
Company registration number 11539646 (England and Wales)
TRANSAK LIMITED (FORMERLY KNOWN AS LIGHT TECHNOLOGY LIMITED)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
1
Accounting policies
Company information
Transak Limited (formerly known as Light Technology Limited) is a private company limited by shares incorporated in England and Wales. The registered office is 52 Grosvenor Gardens, London, SW1W OAU.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Prior period error
It has been necessary to restate the 2022 figures for errors found, the details of which can be found in note 10 to these financial statements.
1.3
Going concern
These financial statements are prepared on the going concern basis. The director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future and should it be required support is available from the parent company. The company therefore continues to adopt the going concern basis in preparing its financial statements.
1.4
Turnover
Turnover is measured at the fair value of the consideration received or receivable for the sale of goods and the rendering of services in the normal course of business, and is shown net of discounts and VAT.
Rendering of services
Revenue arises from the provision of cryptocurrency platform services.
Revenue is recognised proportionally over the performance of the service contract, by reference to the stage of completion of the transaction at the end of the reporting period.
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Computer equipment
3 years straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
TRANSAK LIMITED (FORMERLY KNOWN AS LIGHT TECHNOLOGY LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 3 -
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
1.7
Stocks
Cryptocurrency stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises the purchase of cryptocurrency and those overheads that have been incurred in bringing the cryptocurrency assets to their present location and condition.
Cryptocurrency stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of cryptocurrency stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ”Basic Financial Instruments” to all of its financial instruments.
Financial instruments are recognised in the company’s balance sheet when the company becomes party to the contractual provisions of the instrument.
Basic financial assets
Short term debtors are measured at transaction price less any provision for impairment. Loans receivable are measured initially at fair value, net of transaction costs and are subsequently carried at amortised costs using the effective interest method, less any provision for impairment.
Basic financial liabilities
Short term creditors are measured at transaction price. Other financial liabilities, including bank loans and other loans, are measured initially at fair value, net of transaction costs and are subsequently carried at amortised costs using the effective interest method.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
TRANSAK LIMITED (FORMERLY KNOWN AS LIGHT TECHNOLOGY LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
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 recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
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 period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
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 in the period are included in profit or loss.
2
Exceptional item
2023
2022
£
£
Expenditure
Impairment of cryptocurrency
391,256
1,866,729
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
4
7
TRANSAK LIMITED (FORMERLY KNOWN AS LIGHT TECHNOLOGY LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
4
Tangible fixed assets
Computer equipment
£
Cost
At 1 January 2023 and 31 December 2023
74,313
Depreciation and impairment
At 1 January 2023
35,837
Depreciation charged in the year
24,002
At 31 December 2023
59,839
Carrying amount
At 31 December 2023
14,474
At 31 December 2022
38,475
Last year c/fwd depreciation
35,838
Differs from this year b/fwd by
(1)
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,754,504
992,663
Amounts owed by group undertakings
189,489
230,060
Other debtors
130,594
236,573
2,074,587
1,459,296
2023
2022
Amounts falling due after more than one year:
£
£
Deferred tax asset
12,054
3,002
Total debtors
2,086,641
1,462,298
TRANSAK LIMITED (FORMERLY KNOWN AS LIGHT TECHNOLOGY LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
6
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
123,949
217,085
Amounts owed to group undertakings
7,233,764
2,633,290
Taxation and social security
8,645
32,498
Other creditors
913,003
378,301
8,279,361
3,261,174
7
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
1,500,000
1,500,000
15,000
15,000
8
Related party transactions
The company has taken advantage of the exemption in paragraph 1AC.35 of FRS102 not to disclose transactions with wholly owned group entities.
At the balance sheet date the company owed one of its directors £Nil (2022: £231,447 ).
9
Parent company
The ultimate controlling party is Transak, Inc. who own 100% of the share capital in the company.
10
Prior period adjustment
TRANSAK LIMITED (FORMERLY KNOWN AS LIGHT TECHNOLOGY LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
10
Prior period adjustment
(Continued)
- 7 -
Reconciliation of changes in equity
1 January
31 December
2022
2022
£
£
Adjustments to prior year
Fixed assets
-
269
Current assets
-
(6,113,027)
Liabilities
-
6,180,105
Total adjustments
-
67,347
Equity as previously reported
80,163
(653,794)
Equity as adjusted
80,163
(586,447)
Analysis of the effect upon equity
Profit and loss reserves
-
67,347
Reconciliation of changes in loss for the previous financial period
2022
£
Adjustments to prior year
Adjustrment to income recognition
814,567
Cost of sales
489,303
Admin costs
(687)
Foreign exchnage
512,048
Stock impairment
(988,709)
Deferred tax
(156,002)
Total adjustments
670,520
Loss as previously reported
(733,957)
Loss as adjusted
(63,437)