Registered number:
FOR THE YEAR ENDED 30 APRIL 2024
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DATA GRID SOLUTIONS PLC
COMPANY INFORMATION
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DATA GRID SOLUTIONS PLC
CONTENTS
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DATA GRID SOLUTIONS PLC
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024
The directors present the strategic report for the year ended 30 April 2024.
The principal activities of the Company are provision of financial data distribution technology and specialised technology support and infrastructure development and operational support services to Fintech firms. The Company additionally earns revenue from a portfolio of assets that it acquired in 2019 as well as generating revenue from its own principal trading activities.
The Company has made a loss of £3,715,689 (2023: £1,956,330) for the year to 30 April 2024.
The loss occurred during the year due to a unrealised losses on investments of £136,953 (gains 2023: £291,850). There were further one off amounts written off investments of £422,317 during 2024 (2023: nil). Administrative expenses have increased to £850,726 from £121,346 in the year 30 April 2024. This increase has been led by staff expense increases, significant expenditure in software development and IT subscriptions, intangible asset amortisation and foreign exchange losses. Investment losses increased to £136,953 (gain 2023: £291,850) due to less principal trading activity that the directors undertook and unrealised fair value losses. Investment income decreased to £661,864 (2023: £771,392) as the Company continued to make returns on its investments at a lower rate. The portfolio of assets held by the Company has reduced the Company’s credit risk and the risk of the Company’s ability to repay its future liabilities. Assets held by the Company have maturity dates ranging from 1-5 years and are being amortised accordingly.
The Company has continued with the development of IT solutions and IT infrastructure for Financial services companies. The Company started investing in the development of an intangible asset which amounted a total investment of £1,676,991 (2023: £739,858) during the year. This asset begun producing revenue during the current year.
One of the company’s IT solutions provides financial services and firms with AML monitoring requirements with streamlined compliance and regulatory tools to onboard clients and undertake enhanced transaction monitoring. Another company’s asset is a suite of FinTech software solutions for financial services companies that include: back and middle office systems, order management tools, CRM software, comprehensive reporting functionality and implementation of compliant general IT infrastructure.
A key performance indicator is the revenue received from investments. The company generated income of £661,864 (2023: £771,392) from investments. This revenue has decreased due to changes in the composition of the investment portfolio.
The Company’s business lines are regularly reviewed as it is the responsibility of the directors to bring the company back to profitability in the forthcoming years.
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DATA GRID SOLUTIONS PLC
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
Liquidity Risk
The Company is exposed to liquidity risk as it has issued privately debt instruments. This risk is mitigated by the firm’s investment strategy which aims to earn sufficient income to repay its liabilities due in December 2027. Credit Risk The Company is exposed to credit risk as it has a portfolio of bond and promissory note investments. This risk is mitigated by regular review of the Company’s investments and call option agreements which mitigate the risk of a counterparty default. Market Risk The Company is exposed to market risk, including price and foreign exchange risk as it has a portfolio of bond investments and loans. This risk is mitigated by review of the Company’s regular review of the Company’s investments and foreign exchange positions.
Section 172 of The Companies Act 2006 states that a director of a company must act in the way it considers, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole.
In doing so a director of a company must have regard (amongst other matters) to:- a. The likely consequences of any decision in the long term; b. The interests of the company’s employees; c. The need to foster the company’s business relationships with suppliers, customers and others; d. The impact of the company’s operations on the community and the environment; e. The desirability of the company maintaining a reputations for high standards of business conduct; f. The need to act fairly as between members of the company. The following summarises how the company’s Board fulfils its duties under Section 172. Decision Making The Board fulfils its duties to act in good faith to promote the success of the company through its implementation of the Datagrid Solutions Strategy. As part of the Datagrid Strategy, the Board aims to actively shape the future of developing and implementing digital solutions to help any company improve their operational set-up and succeed in the digital world. Datagrid Solutions Strategy is to offer a fundamentally different model to the one practised by previous generation IT firms: true in-cloud implementation of virtual machines managed in a highly standardised way, to ensure scalability without additional operational or implementation costs. We offer an additional level of support and expertise to more sophisticated businesses operating in the regulated sectors. The Board ensures that strategic initiatives feed directly into one or more of the following fundamental ambitions: To be simple to do business with; to be accessible across all channels; to be at all times customer oriented and inspire trust; and to achieve operational excellence; as well as agility, speed and innovation. The Board review and consider the various stakeholders when arriving at recommended business decisions consistent with the strategy.
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DATA GRID SOLUTIONS PLC
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
The Company strategy allows us to be competitive, flexible and resilient while also responding to a rapidly changing digital market situation. Examples of Board decision making during 2022 include: • A review of the Company’s IT and accounting systems to ensure the company is fully set for business as the roll out of its new strategy matures. • review of the company’s operational structure to ensure the organisational model remains fit for the future. Employee Engagement The company invests in training and coaching where it is of benefit to the employee and the Company. We aim to be a responsible employer in our approach to the pay and benefits of employees. Business Relationships The Board engages with a variety of stakeholders, including customers, and suppliers, to inform and enable balanced decisions that incorporate multiple viewpoints, whilst maintaining the Company’s Strategy. In making decisions the Board considers outcomes from engagements with stakeholders as well as the importance of maintaining the Company’s integrity and reputation. Culture and values The company’s culture is characterised by clear responsibility, mutual respect and trust. Lawful conduct and fair competition are integral to its business activities and an important condition for maintaining a reputation for high standards of business conduct securing long term success. The company is focused on people, with both customers and employees being at the heart of its business. The company embraces diversity, flexibility, sustainability and continuous improvement throughout the organisation. The Directors require management to ensure that all stakeholder interests are considered in the Company’s day to day management and operations and seek to understand the relative interests and priorities of the various stakeholders and to have regard to these in decision making. The Directors acknowledge, however, that not every decision will necessarily result in a positive outcome for all stakeholders. As a result of these activities, the Directors believe that they have demonstrated compliance with their legal duty under s.172 of the Companies Act 2006.
This report was approved by the board on 24 January 2025 and signed on its behalf.
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DATA GRID SOLUTIONS PLC
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2024
The directors present their report and the financial statements for the year ended 30 April 2024.
The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
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;
∙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 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.
The directors who served during the year were:
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of principal risks and uncertainties and future developments.
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DATA GRID SOLUTIONS PLC
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
The auditors, Sumer Auditco Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on
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DATA GRID SOLUTIONS PLC
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DATA GRID SOLUTIONS PLC
We have audited the financial statements of Data Grid Solutions PLC (the 'Company') for the year ended 30 April 2024, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of cash flows, the Statement of changes in equity and the related notes, 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).
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.
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.
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DATA GRID SOLUTIONS PLC
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DATA GRID SOLUTIONS PLC (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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.
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.
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DATA GRID SOLUTIONS PLC
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DATA GRID SOLUTIONS PLC (CONTINUED)
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:
In order to identify and assess the risks of material misstatements, including fraud and non-compliance with laws and regulations that could be expected to have a material impact on the financial statements, we have considered:
∙the results of our enquiries of management and those charged with governance of their assessment of the risks of fraud and irregularities;
∙the nature of the company including its management structure and control systems (including the opportunity for management to override such controls);
∙management’s incentives and opportunities for fraudulent manipulation of the financial statements including the company’s remuneration and bonus policies and performance targets; and
∙the industry and environment in which it operates.
We also considered UK tax and pension legislation and laws and regulations relating to employment and the preparation and presentation of the financial statements such as the Companies Act 2006.
Based on this understanding we identified the following matters as being of significance to the entity:
∙laws and regulations considered to have a direct effect on the financial statements including UK financial reporting standards, Company Law, tax and pension legislation and distributable profits legislation;
∙the timing of the recognition of commercial income;
∙compliance with legislation;
∙management bias in selecting accounting policies and determining estimates;
∙inappropriate journal entries;
∙manipulation of specific performance measures to meet remuneration targets; and
∙recoverability of debtors;
We communicated the outcomes of these discussions and enquiries, as well as consideration as to where and how fraud may occur in the entity, to all engagement team members.
Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised:
∙enquiries of management and those charged with governance as to whether the entity complies with such laws and regulations;
∙enquiries with the same concerning any actual or potential litigation or claims;
∙discussion with the same regarding any known or suspected instances of non-compliance with laws and regulation and fraud;
∙inspection of relevant legal correspondence;
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DATA GRID SOLUTIONS PLC
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DATA GRID SOLUTIONS PLC (CONTINUED)
∙assessment of matters reported to management and the result of the subsequent investigation;
∙obtaining an understanding of the relevant controls during the period;
∙obtaining an understanding of the policies and controls over the recognition of income and testing their implementation during the year;
∙challenging assumptions made by management in their specific accounting policies and estimates, in particular in relation to estimates such as valuation of fixed asset investments; depreciation of tangible fixed assets and amortisation of intangible fixed assets;
∙assessing the recovery of debtors in the period since the balance sheet date and challenging assumptions made by management regarding the recovery of balances which remain outstanding;
∙reviewing the financial statements for compliance with the relevant disclosure requirements;
∙performing analytical procedures to identify any unusual or unexpected relationships or unexpected movements in account balances which may be indicative of fraud;
∙reviewing the minutes of Board meetings and correspondence with HMRC;
∙evaluating the underlying business reasons for any unusual transactions; and
∙considered the implementation of controls during the year.
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).
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.
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 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.
for and on behalf of
Chartered Accountants
Statutory Auditors
14th Floor
33 Cavendish Square
W1G 0PW
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DATA GRID SOLUTIONS PLC
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2024
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DATA GRID SOLUTIONS PLC
REGISTERED NUMBER: 10728804
BALANCE SHEET
AS AT 30 APRIL 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 15 to 27 form part of these financial statements.
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DATA GRID SOLUTIONS PLC
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
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DATA GRID SOLUTIONS PLC
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2024
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DATA GRID SOLUTIONS PLC
ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 30 APRIL 2024
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DATA GRID SOLUTIONS PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
The company is a public limited company limited by shares, registered in England and Wales. The address of the registered office is 14th Floor, 33 Cavendish Square, London, W1G 0PW.
The principal activity of the company is that of providing IT services and investing in various financial instruments.
2.Accounting policies
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:
The directors have assessed the risk that the Company is not a going concern and have concluded that the Company has sufficient resources that will enable the Company to meet its liabilities as they fall due. The directors are committed to the growth of the company and are building a strategy to bring the company to profitability over the coming years. On this basis, the directors consider it is appropriate to use the going concern basis.
Functional and presentation currency
Transactions and balances
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DATA GRID SOLUTIONS PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
2.Accounting policies (continued)
Trustform Subscription revenue, including license and hosting fees, is recognised over the subscription term as the service is provided.
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DATA GRID SOLUTIONS PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
2.Accounting policies (continued)
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
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 profit or loss.
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DATA GRID SOLUTIONS PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
2.Accounting policies (continued)
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 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.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally 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.
Basic financial assets
Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
Other financial assets
Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.
Impairment of financial assets
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the
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DATA GRID SOLUTIONS PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
2.Accounting policies (continued)
impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
Financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Other financial instruments
Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.
Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.
Derecognition of financial instruments
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Company's contractual obligations expire or are
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DATA GRID SOLUTIONS PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
2.Accounting policies (continued)
discharged or cancelled.
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DATA GRID SOLUTIONS PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
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DATA GRID SOLUTIONS PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
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DATA GRID SOLUTIONS PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
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DATA GRID SOLUTIONS PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
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DATA GRID SOLUTIONS PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
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DATA GRID SOLUTIONS PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
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DATA GRID SOLUTIONS PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
The parent company is Data Grid Holdings Limited, incorporated in the British Virgin Islands. The ultimate controlling party is Dmitry Kaganovich.
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