Registration number:
Sapien Capital Limited
for the Year Ended 10 September 2024
Sapien Capital Limited
Contents
Company Information |
|
Strategic Report |
|
Directors' Report |
|
Statement of Directors' Responsibilities |
|
Independent Auditor's Report |
|
Profit and Loss Account |
|
Statement of Comprehensive Income |
|
Balance Sheet |
|
Statement of Changes in Equity |
|
Statement of Cash Flows |
|
Notes to the Financial Statements |
Sapien Capital Limited
Company Information
Directors |
Mr R K Ahuja Ms A Aggarwal |
Auditors |
|
Registered office |
|
Sapien Capital Limited
Strategic Report for the Year Ended 10 September 2024
The directors present their strategic report for the year ended 10 September 2024.
Principal activity
The principal activity of the company is that of corporate finance advisory, arranging services, arranging of debt (corporate loans and bonds), equity (private and public), strategic partnerships and Mergers & Acquisitions.
Fair review of the business
The firm during the year worked on 2 of the corporate finance mandates it had, however did not translate in revenue for the year as their closure got deferred, expects these deals to complete during the FY 2024-25. The firm in addition is on the look out for another 2-3 client mandates for the FY 2024-25.
Principal risks and uncertainties
Compliance with regulation, legal and ethical standards is of utmost importance for the company. The process of risk acceptance and risk management is addressed through a framework of policies, procedures and internal controls.
Financial instruments
Objectives and policies
Regulatory Risk
The firm ensures that it remains compliant with all existing regulation and that new regulation is accurately interpreted and planned for. Mr Matthew Hill is the present Head of Compliance and MLRO. He has earlier performed similar roles for more than 20 years with financial institutions in the UK and Europe.
Credit Risk
This risk is now limited to the extent of the fees payable to the firm from the clients for corporate finance activities. The firm has in place standard templates for the engagement of various corporate finance assignments from the clients and the engagement letters are binding on the clients for the payment of fees as per the deliverables. In case of Equity and Bonds transactions the Engagement Letters stipulate the requirement of escrowing the fees from the subscription money(s).
Liquidity Risk
As the firm is not carrying on any clearing and settlement or broking activities, the liquidity risk is only limited to the cost of operations for which the firm keeps a tight control and ensures that the liquidity is available before committing the firm to any cost.
Market Risk
The Market risk is limited to the foreign exchange exposures which the firm carries on its balance sheet. Market risk is therefore minimal and not material.
Operational Risk
Operational risks, including the risk of fraud, business continuity, third party dependency, key staff and IT security, are controlled by a wide variety of internal controls, the effectiveness of which are reviewed by the Risk Committee and the Board through monitoring of the risk register. The Firm has an overall risk assessment framework in place. Operational risks have been defined and mitigated with systems and controls and the residual risks are perceived as low.
Business Risk
This risk is mitigated by having a realtively low cost based structure and a diversified client base.
Sapien Capital Limited
Strategic Report for the Year Ended 10 September 2024 (continued)
This report was approved by the
......................................... |
Sapien Capital Limited
Directors' Report for the Year Ended 10 September 2024
The directors present their report and the financial statements for the year ended 10 September 2024.
Directors of the company
The directors who held office during the year were as follows:
Going concern
At the time of approving these financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future and are willing to provide the necessary financial support as required. Accordingly, these financial statements have been prepared on a going concern basis.
Disclosure of information to the auditors
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Reappointment of auditors
In accordance with section 485 of the Companies Act 2006, a resolution for the re-appointment of KNAV Limited as auditors of the company is to be proposed at the forthcoming Annual General Meeting.
This report was approved by the
......................................... |
Sapien Capital Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities 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 period. In preparing these financial statements, the directors are required to:
• |
select suitable accounting policies and apply them consistently; |
• |
make judgements and accounting estimates that are reasonable and prudent; |
• |
state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
• |
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.
Sapien Capital Limited
Independent Auditor's Report to the Members of Sapien Capital Limited
Opinion
We have audited the financial statements of Sapien Capital Limited (the 'company') for the year ended 10 September 2024, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The 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 10 September 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 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 director's 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 original financial statements were 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 auditor’s 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 statements, 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 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 required to report that fact.
We have nothing to report in this regard.
Sapien Capital Limited
Independent Auditor's Report to the Members of Sapien Capital Limited (continued)
Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Strategic Report and 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 our 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 and 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. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities [set out on page 5], 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 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.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Sapien Capital Limited
Independent Auditor's Report to the Members of Sapien Capital Limited (continued)
We design our procedures so as to obtain sufficient appropriate audit evidence that the financial statements are not materially misstated due to non-compliance with laws and regulations or due to fraud or error.
We are not responsible for preventing non-compliance and cannot be expected to detect noncompliance with all laws and regulations – this responsibility lies with management with the oversight of the Directors.
Based on our understanding of the Company and industry, discussions with management, we identified Companies Act 2006, Financial Reporting Standard 102, FCA regulation and UK taxation legislation as having a direct effect on the amounts and disclosures in the financial statements.
As part of the engagement team discussion about how and where the Company’s financial statements may be materially misstated due to fraud, we did not identify any areas with an increased risk of fraud.
Our audit procedures included:
• enquiry of management about the Company’s policies, procedures and related controls regarding compliance with laws and regulations and if there are any known instances of non-compliance;
• examining supporting documents for all material balances, transactions and disclosures;
• review of the Board of directors minutes;
• enquiry of management of any legal matters;
• evaluation of the selection and application of accounting policies related to subjective measurements and complex transactions;
• analytical procedures to identify any unusual or unexpected relationships;
• testing the appropriateness of journal entries recorded in the general ledger and other adjustments made in the preparation of the financial statements;
• review of accounting estimates for biases.
Owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements of the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK).
The potential effects of inherent limitations are particularly significant in the case of misstatement resulting from fraud because fraud may involve sophisticated and carefully organized schemes designed to conceal it, including deliberate failure to record transactions, collusion or intentional misrepresentations being made to us.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Sapien Capital Limited
Independent Auditor's Report to the Members of Sapien Capital Limited (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 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.
.........................................................................................
For and on behalf of
Hygeia Building
Ground Floor
66-68 College Road
Middlesex
HA1 1BE
Sapien Capital Limited
Profit and Loss Account for the Year Ended 10 September 2024
Note |
2024 |
2023 |
|
Revenue |
- |
- |
|
Gross profit/(loss) |
- |
- |
|
Administrative expenses |
( |
( |
|
Operating loss |
(96,398) |
(172,458) |
|
Other interest receivable and similar income |
|
|
|
(Loss)/profit before tax |
( |
|
|
(Loss)/profit for the financial year |
( |
|
The above results were derived from continuing operations.
The company has no recognised gains or losses for the year other than the results above.
Sapien Capital Limited
Statement of Comprehensive Income for the Year Ended 10 September 2024
2024 |
2023 |
|
(Loss)/profit for the year |
( |
|
Total comprehensive income for the year |
( |
|
Sapien Capital Limited
(Registration number: 06407856)
Balance Sheet as at 10 September 2024
Note |
2024 |
2023 |
|
Fixed assets |
|||
Investments |
|
|
|
Other financial assets |
1 |
1 |
|
|
|
||
Current assets |
|||
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
220,000 |
220,000 |
|
Share premium reserve |
20,000 |
20,000 |
|
Profit and loss account |
49,922 |
123,335 |
|
Shareholders' funds |
289,922 |
363,335 |
These financial statements were approved and authorised for issue by the
.............................................. |
.............................................. |
Sapien Capital Limited
Statement of Changes in Equity for the Year Ended 10 September 2024
Share capital |
Share premium |
Retained earnings |
Total |
|
At 11 September 2022 |
|
|
|
|
Profit for the year |
- |
- |
|
|
At 10 September 2023 |
220,000 |
20,000 |
123,335 |
363,335 |
Share capital |
Share premium |
Profit and loss account |
Total |
|
At 11 September 2023 |
|
|
|
|
Loss for the year |
- |
- |
( |
( |
At 10 September 2024 |
|
|
|
|
Sapien Capital Limited
Statement of Cash Flows for the Year Ended 10 September 2024
Note |
2024 |
2023 |
|
Cash flows from operating activities |
|||
(Loss)/profit for the year |
( |
|
|
Adjustments to cash flows from non-cash items |
|||
Finance income |
( |
( |
|
Foreign exchange gains/losses |
|
|
|
( |
( |
||
Working capital adjustments |
|||
Decrease in trade debtors |
|
|
|
Decrease in trade creditors |
( |
( |
|
Net cash flow from operating activities |
( |
( |
|
Cash flows from investing activities |
|||
Interest received |
|
|
|
Dividend income |
|
|
|
Net cash flows from investing activities |
|
|
|
Net (decrease)/increase in cash and cash equivalents |
( |
|
|
Cash and cash equivalents at 11 September |
|
|
|
Effect of exchange rate fluctuations on cash held |
(22,586) |
- |
|
Cash and cash equivalents at 10 September |
68,428 |
202,506 |
Sapien Capital Limited
Notes to the Financial Statements for the Year Ended 10 September 2024
General information |
Sapien Capital Limited is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
England
These financial statements were authorised for issue by the
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 FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
Basis of preparation
These financial statements have been prepared using the historical cost convention.
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 £.
Group accounts not prepared
Going concern
At the time of approving these financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future and are willing to provide the necessary financial support as required. Accordingly, these financial statements have been prepared on a going concern basis.
Sapien Capital Limited
Notes to the Financial Statements for the Year Ended 10 September 2024 (continued)
2 |
Accounting policies (continued) |
Revenue recognition
Revenue, which is stated net of VAT, is attributable to two income streams. The provision of corporate finance services is recognised on the date of completion of the transaction. Fees in respect of aborted transactions are negotiated on a case by case basis. The company provides stockbroking services. A transaction fee is agreed at the initial engagement, which is recognised at the date of the transaction.
The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.
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.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease s asset are consumed.
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Tax
The tax expense represents the sum of the tax currently payable and deferred 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.
Sapien Capital Limited
Notes to the Financial Statements for the Year Ended 10 September 2024 (continued)
2 |
Accounting policies (continued) |
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. Such assets and liabilities are not recognised 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 period when the liability is settled or the asset is realised. 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 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.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
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, fittings and equipment |
25% Reducing balance basis |
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a longterm interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
Sapien Capital Limited
Notes to the Financial Statements for the Year Ended 10 September 2024 (continued)
2 |
Accounting policies (continued) |
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). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in the income statement , unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) prior years. A reversal of an impairment loss is recognised immediately in the income statement, unless the relevant asset is carried in at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
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.
Sapien Capital Limited
Notes to the Financial Statements for the Year Ended 10 September 2024 (continued)
2 |
Accounting policies (continued) |
Trade 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.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable 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.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
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.
Sapien Capital Limited
Notes to the Financial Statements for the Year Ended 10 September 2024 (continued)
2 |
Accounting policies (continued) |
Financial instruments
Classification
Recognition and measurement
Debt instruments that are payable or receivable within one year, typically trade creditors or debtors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration, expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms of financed at a rate of interest that is not a market rate or in case of an out-right short term loan not at a market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.
Impairment
For financial assets measured as amortised cost, the impairment loss is measured as the difference between an asset’s carrying amount and the present value of estimated cash flows discounted at the asset’s original effective interest rate. If a financial asset has a variable interest rate, the discounted rate for measuring any impairment loss is the current effective interest rate determined under the contract.
Financial assets and liabilities are offset and the net amount reported in the Balance sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Judgements and key sources of estimation uncertainty |
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Sapien Capital Limited
Notes to the Financial Statements for the Year Ended 10 September 2024 (continued)
Operating loss |
Arrived at after charging/(crediting)
2024 |
2023 |
|
Foreign exchange losses |
|
|
Operating lease expense - property |
- |
|
Other interest receivable and similar income |
2024 |
2023 |
|
Interest income on bank deposits |
|
|
Dividend income |
|
|
|
|
Sapien Capital Limited
Notes to the Financial Statements for the Year Ended 10 September 2024 (continued)
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
2024 |
2023 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
Other employee expense |
- |
|
|
|
The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:
2024 |
2023 |
|
Administration and support |
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
2024 |
2023 |
|
Remuneration |
|
|
Contributions paid to money purchase schemes |
|
|
45,446 |
57,420 |
Auditors' remuneration |
2024 |
2023 |
|
Fees payable to the company's auditor: |
||
Audit of the financial statements |
|
|
Sapien Capital Limited
Notes to the Financial Statements for the Year Ended 10 September 2024 (continued)
Taxation |
The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2023: the same as the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2024 |
2023 |
|
(Loss)/profit before tax |
( |
|
Corporation tax at standard rate |
( |
|
Effect of expense not deductible in determining taxable profit (tax loss) |
( |
|
Tax increase from effect of unrelieved tax losses carried forward |
|
|
Tax decrease from effect of dividends from UK companies |
( |
( |
Total tax charge/(credit) |
- |
- |
Tangible assets |
Furniture, fittings and equipment |
|
Cost |
|
At 11 September 2023 |
|
At 10 September 2024 |
|
Depreciation |
|
At 11 September 2023 |
|
At 10 September 2024 |
|
Carrying amount |
|
At 10 September 2024 |
- |
Sapien Capital Limited
Notes to the Financial Statements for the Year Ended 10 September 2024 (continued)
Investments |
2024 |
2023 |
|
Investments in subsidiaries |
|
|
Subsidiaries |
£ |
Cost or valuation |
|
At 11 September 2023 |
|
Carrying amount |
|
At 10 September 2024 |
|
At 10 September 2023 |
|
Details of undertakings
Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
||||
2024 |
2023 |
||||||
Subsidiary undertakings |
|||||||
|
Vistra Alternative Investments (Mauritius) Limited
Replublic of Mauritius |
|
|
|
Subsidiary undertakings |
Sapien Capital (Mauritius) Ltd The principal activity of Sapien Capital (Mauritius) Ltd is |
Sapien Capital Limited
Notes to the Financial Statements for the Year Ended 10 September 2024 (continued)
Other financial assets (current and non-current) |
Financial assets at cost less impairment |
|
Non-current financial assets |
|
Cost |
|
At 11 September 2023 |
1 |
At 10 September 2024 |
1 |
Carrying amount |
|
At 10 September 2024 |
|
At 10 September 2023 |
|
Debtors |
2024 |
2023 |
|
Trade debtors |
|
|
Other debtors |
|
|
Prepayments |
|
- |
Total current trade and other debtors |
|
|
Cash and cash equivalents |
2024 |
2023 |
|
Cash at bank |
|
|
Sapien Capital Limited
Notes to the Financial Statements for the Year Ended 10 September 2024 (continued)
Creditors |
2024 |
2023 |
|
Due within one year |
||
Social security and other taxes |
|
|
Outstanding defined contribution pension costs |
- |
|
Other creditors |
|
|
Accrued expenses |
|
|
|
|
|
Due after one year |
||
Other creditors |
|
|
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £
Contributions totalling £Nil (2023: £
Share capital |
Allotted, called up and fully paid shares
2024 |
2023 |
|||
No. |
£ |
No. |
£ |
|
|
|
220,000 |
|
220,000 |
Related party transactions |
The Directors have incurred expenses on behalf of the company during the year. At the year end, within accruals, the amounts owed to R Ahuja is £6,501 and the amount payable to A Aggarwal is £2,624.
Sapien Capital Limited
Notes to the Financial Statements for the Year Ended 10 September 2024 (continued)
Contingent liabilities |
The company has agreed to repay other creditors by way of repayment and share of profits when the company is profitable. In the next three profitable years, 80% of the profit is payable and in year four only 50% of the profit will be payable to one creditor.
Controlling party |