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Registered number: 10525312
Arnik Limited
Strategic Report, Directors' Report and
Financial Statements
For The Year Ended 31 March 2024
Contents
Page
Company Information 1
Strategic Report 2
Directors' Report 3
Independent Auditor's Report 4—6
Consolidated Profit and Loss Account 7
Consolidated Statement of Comprehensive Income 8
Consolidated Balance Sheet 9
Company Balance Sheet 10
Consolidated Statement of Changes in Equity 11
Company Statement of Changes in Equity 12
Consolidated Statement of Cash Flows 13
Notes to the Consolidated Statement of Cash Flows 14
Notes to the Financial Statements 15—22
Page 1
Company Information
Directors Mr P Karadiguddi
Mrs S Kaluti
Company Number 10525312
Registered Office Fraser House, 56 Kingston Road,
Staines-Upon-Thames,
England,
TW18 4NL
Business Fraser House
56, Kingston Road
Staines-Upon-Thames
Middlesex
TW18 4LN
Auditors Pritchard Fellows & Co
Chartered Certified Accountants & Reg. Auditors
Avery House
8 Avery Hill Road
London
SE9 2BD
Page 1
Page 2
Strategic Report
The directors present their strategic report for the year ended 31 March 2024.
Review of the Business
Arnik Limited focuses on long-term value creation through strategic investments in real estate, financial assets, and high-growth businesses, leveraging strong partnerships to drive sustainable opportunities and financial growth. With gross profits of £7.18M in 2024 and £7.24M in 2023, the company demonstrates consistent profitability and operational liquidity.
Its vision is to build a diverse and resilient portfolio using market intelligence, innovation, and sustainable practices. Core strategies include sustainable real estate investments, diversified asset management, ESG-focused growth, and risk-optimized planning to ensure stability and intergenerational wealth.
The company thrives on collaborative investments, working with developers, financial institutions, and public entities to maximize value and drive urban development. It uses AI-driven analytics to optimize portfolio performance and leverages global networks for market expansion.
Strengths include expertise in real estate, data-driven decision-making, financial integrity, and adaptability to market trends. Growth opportunities involve expansion into smart housing, co-living spaces, renewable energy, and international markets. Through these strategies, Arnik Limited ensures financial resilience, sustainable growth, and long-term success.
Arnik Limited is a forward-thinking investment firm committed to building long-term value through strategic investments in real estate, financial assets, and high-growth businesses. It leverages strengths in real estate expertise, data-driven decision-making, and financial stability, supported by a strong reputation for transparency and adaptability. The company thrives on strategic partnerships with developers, financial institutions, public entities, and international investors to optimize asset value and expand its global reach. 
By embracing sustainable practices, ESG-focused growth, and AI-driven analytics, Arnik Limited aims to capitalize on opportunities in smart housing, renewable energy, and emerging markets. Its diversified investment portfolio, focus on alternative assets, and ability to pivot with market trends position it as a resilient leader dedicated to sustainable growth, profitability, and intergenerational wealth creation.
On behalf of the board
Mrs S Kaluti
Director
24/03/2025
Page 2
Page 3
Directors' Report
The directors present their report and the financial statements for the year ended 31 March 2024.
Principal Activity
The group's principal activity continues to be that of Activities of other holding companies not elsewhere classified.
Directors
The directors who held office during the year were as follows:
Mr P Karadiguddi
Mrs S Kaluti
Statement of Directors' Responsibilities
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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', 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 the financial statements the directors are required to:
  • select suitable accounting policies and then apply them consistently;
  • make judgments and accounting estimates that are reasonable and prudent;
  • state whether applicable United Kingdom Accounting Standards, comprising FRS102, 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 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 are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Statement of Disclosure of Information to Auditors
In the case of each director in office at the date the Directors' Report is approved:
  • so far as the director is aware, there is no relevant audit information of which the company's auditors are unaware; and
  • they have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information.
Independent Auditors
The auditors, Pritchard Fellows & Co, have indicated their willingness to continue in office and a resolution concerning their re-appointment will be proposed at the Annual General Meeting.
On behalf of the board
Mrs S Kaluti
Director
24/03/2025
Page 3
Page 4
Independent Auditor's Report
Opinion
We have audited the financial statements of Arnik Limited for the year ended 31 March 2024 which comprise the Consolidated Profit and Loss Account, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes of Equity, Company Statement of Changes of Equity, Consolidated Cash Flow Statement 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 (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".
In our opinion the financial statements:
  • give a true and fair view of the state of the company's affairs as at 31 March 2024 and of its profit/(loss) for the year then ended;
  • have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
  • have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions Relating to Going Concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the entity's ability to continue as a going concern for a period of at least 12 months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other Information
The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 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 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.
Opinions 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 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.
Page 4
Page 5
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 or 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.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: 
We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and determined
that the most significant are United Kingdom Accounting Standards, UK Companies Act 2006 and tax legislation (governed by
HM Revenue and Customs).
Audit procedures performed by the engagement team included:
- Understanding the nature of the industry and sector;
- Understanding the management's internal controls designed to prevent and detect irregularities;
- Reviewing relevant meeting minutes;
- Testing transactions using substantive procedures;
- Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.
Our audit testing might include testing complete populations of certain transactions and balances, possibly using data auditing
techniques. However, it typically involves selecting a number of items for testing, rather than testing complete populations.
We will often seek to target particular items for testing based on their size or risk characteristics. In other cases, we will use
audit sampling to enable us to draw a conclusion about the population from which the sample is selected.
There is inherent limitation in the audit procedures described above. The risk of detecting a material misstatement due to
fraud is higher than the risk of not detecting one results from error, as fraud may involve deliberate concealment by, for
example, forgery or intentional misrepresentations, or through collusion.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting
Council's website www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
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 that 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.
Page 5
Page 6
Sunil Phakkey (Senior Statutory Auditor)
for and on behalf of Pritchard Fellows & Co , Statutory Auditor
24/03/2025
Pritchard Fellows & Co
Chartered Certified Accountants & Reg. Auditors
Avery House
8 Avery Hill Road
London
SE9 2BD
Page 6
Page 7
Consolidated Profit and Loss Account
2024 2023
Notes £ £
TURNOVER 3 25,142,070 23,281,525
Cost of sales (17,814,764 ) (16,037,521 )
GROSS PROFIT 7,327,306 7,244,004
Distribution costs (261,090 ) (90,044 )
Administrative expenses (4,043,767 ) (2,037,551 )
Other operating income 17,594 10,225
OPERATING PROFIT 5 3,040,043 5,126,634
(Loss)/profit on revaluation of investments (5,000 ) 16,232
Other interest receivable and similar income 10 203,340 (2,143 )
Interest payable and similar charges 11 (70,307 ) (81,347 )
PROFIT BEFORE TAXATION 3,168,076 5,059,376
Tax on Profit 12 (754,141 ) (792,892 )
PROFIT AFTER TAXATION BEING PROFIT FOR THE FINANCIAL YEAR ATTRIBUTABLE TO THE OWNERS OF THE PARENT 2,413,935 4,266,484
The notes on pages 14 to 22 form part of these financial statements.
Page 7
Page 8
Consolidated Statement of Comprehensive Income
2024 2023
£ £
PROFIT FOR THE FINANCIAL YEAR 2,413,935 4,266,484
OTHER COMPREHENSIVE INCOME FOR THE YEAR - -
TOTAL COMPREHENSIVE INCOME FOR THE YEAR ATTRIBUTABLE TO THE OWNERS OF THE PARENT 2,413,935 4,266,484
Page 8
Page 9
Consolidated Balance Sheet
Registered number: 10525312
2024 2023
Notes £ £ £ £
FIXED ASSETS
Tangible Assets 13 310,700 298,574
Investment Properties 14 5,507,597 5,420,597
Investments 15 9,670 -
5,827,967 5,719,171
CURRENT ASSETS
Debtors 16 9,976,391 7,973,518
Cash at bank and in hand 1,460,509 60,705
11,436,900 8,034,223
Creditors: Amounts Falling Due Within One Year 17 (4,460,541 ) (3,265,662 )
NET CURRENT ASSETS (LIABILITIES) 6,976,359 4,768,561
TOTAL ASSETS LESS CURRENT LIABILITIES 12,804,326 10,487,732
Creditors: Amounts Falling Due After More Than One Year 18 (405,050 ) (405,475 )
PROVISIONS FOR LIABILITIES
Deferred Taxation 20 (3,084 ) -
NET ASSETS 12,396,192 10,082,257
CAPITAL AND RESERVES
Called up share capital 21 4 4
Profit and Loss Account 12,396,188 10,082,253
SHAREHOLDERS' FUNDS 12,396,192 10,082,257
On behalf of the board
Mrs S Kaluti
Director
24/03/2025
The notes on pages 14 to 22 form part of these financial statements.
Page 9
Page 10
Company Balance Sheet
Registered number: 10525312
2024 2023
Notes £ £ £ £
FIXED ASSETS
Investments 15 2 2
2 2
CURRENT ASSETS
Debtors 16 969,832 996,061
Cash at bank and in hand 4,715 965
974,547 997,026
Creditors: Amounts Falling Due Within One Year 17 (10,780 ) (4,800 )
NET CURRENT ASSETS (LIABILITIES) 963,767 992,226
TOTAL ASSETS LESS CURRENT LIABILITIES 963,769 992,228
NET ASSETS 963,769 992,228
CAPITAL AND RESERVES
Called up share capital 21 4 4
Profit and Loss Account 963,765 992,224
SHAREHOLDERS' FUNDS 963,769 992,228
In accordance with section 408(3) of the Companies Act 2006, the company has not presented its own profit and loss account and the related notes. The company's profit for the year was £ 71,541 (2023: £ 1,056,244 profit).
On behalf of the board
Mrs S Kaluti
Director
24/03/2025
The notes on pages 14 to 22 form part of these financial statements.
Page 10
Page 11
Consolidated Statement of Changes in Equity
Share Capital Profit and Loss Account Total
£ £ £
As at 1 April 2022 4 6,088,247 6,088,251
Profit for the year and total comprehensive income - 4,266,484 4,266,484
Dividends paid - (272,478) (272,478)
As at 31 March 2023 and 1 April 2023 4 10,082,253 10,082,257
Profit for the year and total comprehensive income - 2,413,935 2,413,935
Dividends paid - (100,000) (100,000)
As at 31 March 2024 4 12,396,188 12,396,192
Page 11
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Company Statement of Changes in Equity
Share Capital Profit and Loss Account Total
£ £ £
As at 1 April 2022 4 208,458 208,462
Profit for the year and total comprehensive income - 1,056,244 1,056,244
Dividends paid - (272,478) (272,478)
As at 31 March 2023 and 1 April 2023 4 992,224 992,228
Profit for the year and total comprehensive income - 71,541 71,541
Dividends paid - (100,000) (100,000)
As at 31 March 2024 4 963,765 963,769
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Consolidated Statement of Cash Flows
2024 2023
Notes £ £
Cash flows from operating activities
Net cash generated from operations 1 2,440,878 6,079,726
Interest paid (70,307 ) (81,347 )
Tax paid (751,057 ) (3,451,859 )
Net cash generated from operating activities 1,619,514 2,546,520
Cash flows from investing activities
Purchase of tangible assets (191,087 ) (1,938,098 )
Proceeds from disposal of tangible assets (510 ) -
Purchase of other fixed asset investments (9,670 ) -
Interest received/(refunded) 203,340 (2,143 )
Net cash generated from/(used in) investing activities 2,073 (1,940,241 )
Cash flows from financing activities
Equity dividends paid (100,000 ) (272,478 )
Repayment of bank borrowings (425 ) (153,062 )
Amount withdrawn by directors (121,358) (569,740)
Net cash used in financing activities (221,783 ) (995,280 )
Increase/(decrease) in cash and cash equivalents 1,399,804 (389,001 )
Cash and cash equivalents at beginning of year 2 60,705 449,706
Cash and cash equivalents at end of year 2 1,460,509 60,705
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Notes to the Consolidated Statement of Cash Flows
1. Reconciliation of profit for the financial year to cash generated from operations
2024 2023
£ £
Profit for the financial year 2,413,935 4,266,484
Adjustments for:
Tax on profit 754,141 792,892
Interest expense 70,307 81,347
Interest income (203,340 ) 2,143
Depreciation of tangible assets 87,471 110,462
Loss/(profit) on revaluation of fixed assets 5,000 (16,232)
Movements in working capital:
(Increase)/decrease in trade and other debtors (1,881,515 ) 4,410,245
Increase/(decrease) in trade and other creditors 1,194,879 (3,567,615 )
Net cash generated from operations 2,440,878 6,079,726
2. Cash and cash equivalents
Cash and cash equivalents, as stated in the Statement of Cash Flows, relates to the following items in the Balance Sheet:
2024 2023
£ £
Cash at bank and in hand 1,460,509 60,705
3. Analysis of changes in net (debt)/funds
As at 1 April 2023 Cash flows As at 31 March 2024
£ £ £
Cash at bank and in hand 60,705 1,399,804 1,460,509
Debts falling due after more than one year (405,475) 425 (405,050)
(344,770) 1,400,229 1,055,459
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Notes to the Financial Statements
1. General Information
Arnik Limited is a private company, limited by shares, incorporated in England & Wales, registered number 10525312 . The registered office is Fraser House, 56 Kingston Road, , Staines-Upon-Thames,, England,, TW18 4NL.
2. Accounting Policies
2.1. Basis of Preparation of Financial Statements
The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland'' and the Companies Act 2006.
2.2. Basis Of Consolidation
The group consolidated financial statements include the financial statements of the company and all of its subsidiary undertakings together with the group’s share of the results of associates made up to 31 March 2024.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. Where the group owns less than 50% of the voting powers of an entity but controls the entity by virtue of an agreement with other investors which give it control of the financial and operating policies of the entity, it accounts for that entity as a subsidiary.
Where a subsidiary has different accounting policies to the group, adjustments are made to those subsidiary financial statements to apply the group’s accounting policies when preparing the consolidated financial statements.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the group holds a long-term interest and where the group has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate. The results of associates are accounted for using the equity method of accounting.
Any subsidiary undertakings or associates sold or acquired during the year are included up to, or from, the dates of change of control or change of significant influence respectively.
Where control of a subsidiary is lost, the gain or loss is recognised in the consolidated income statement. The cumulative amounts of any exchange differences on translation, recognised in equity, are not included in the gain or loss on disposal and are transferred to retained earnings. The gain or loss also includes amounts included in other comprehensive income that are required to be reclassified to profit or loss but excludes those amounts that are not required to be reclassified.
Where control of a subsidiary is achieved in stages, the initial acquisition that gave the group control is accounted for as a business combination. Thereafter where the group increases its controlling interest in the subsidiary the transaction is treated as a transaction between equity holders. Any difference between the fair value of the consideration paid and the carrying amount of the non-controlling interest acquired is recognised directly in equity. No changes are made to the carrying value of assets, liabilities or provisions for contingent liabilities.
2.3. Business Combinations
Business combinations are accounted for by applying the purchase method.
The cost of a business combination is the fair value of the consideration given, liabilities incurred or assumed and of equity instruments issued plus the costs directly attributable to the business combination. Where control is achieved in stages the cost is the consideration at the date of each transaction.
Contingent consideration is initially recognised at estimated amount where the consideration is probable and can be measured reliably. Where (i) the contingent consideration is not considered probable or cannot be reliably measured but subsequently becomes probable and measurable or (ii) contingent consideration previously measured is adjusted, the amounts are recognised as an adjustment to the cost of the business combination.
On acquisition of a business, fair values are attributed to the identifiable assets, liabilities and contingent liabilities unless the fair value cannot be measured reliably, in which case the value is incorporated in goodwill. Intangible assets are only recognised separately from goodwill where they are separable and arise from contractual or other legal rights. Where the fair value of contingent liabilities cannot be reliably measured they are disclosed on the same basis as other contingent liabilities.
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2.4. Turnover
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover is reduced for estimated customer returns, rebates and other similar allowances.
Sale of goods
Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods.
Rendering of services
Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. Turnover is only recognised to the extent of recoverable expenses when the outcome of a contract cannot be estimated reliably.
2.5. Tangible Fixed Assets and Depreciation
Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
Plant & Machinery 25% reducing balance
Fixtures & Fittings 25% reducing balance
Computer Equipment 25% reducing balance
2.6. Investment Properties
All investment properties are carried at fair value determined annually and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided for. Changes in fair value are recognised in the profit and loss account.
2.7. Cash and Cash Equivalents
Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks, other short-term highly liquid investments that mature in no more than three months from the date of acquisition and are readily convertible to a known amount of cash with insignificant risk of change in value, and bank overdrafts.
2.8. Foreign Currencies
Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction. Exchange differences are taken into account in arriving at the operating profit.
2.9. Taxation
Income 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 profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The group's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.
Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period 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 assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and assets reflect the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Current and deferred tax are recognised in profit or loss for the year, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case current and deferred tax are recognised in other comprehensive income or directly in equity respectively.
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3. Turnover
2024
2023
£
£
The Turnover for the Current year is
25,142,070
23,281,525
image
image
25,142,070
image
23,281,525
image
4. Other Operating Income
2024 2023
£ £
Other operating income 17,594 10,225
17,594 10,225
5. Operating Profit
The operating profit is stated after charging:
2024 2023
£ £
Depreciation of tangible fixed assets 87,471 110,462
6. Auditor's Remuneration
Remuneration received by the company's auditors and their associates during the year was as follows:
2024 2023
£ £
Audit Services
Audit of the company's financial statements 17,596 11,600
7. Staff Costs
Staff costs, including directors' remuneration, were as follows:
2024 2023
£ £
Wages and salaries 2,890,005 1,401,570
Social security costs 320,758 162,176
Other pension costs 35,475 16,496
3,246,238 1,580,242
8. Average Number of Employees
Group
Average number of employees, including directors, during the year was: 75 (2023: 31)
Company
Average number of employees during the year was: NIL (2023: NIL)
75 31
- -
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9. Directors' remuneration
2024 2023
£ £
Emoluments 100,000 100,000
Company contributions to money purchase pension schemes 2,626 564
102,626 100,564
10. Interest Receivable and Similar Income
2024 2023
£ £
Bank interest receivable 124 104
Interest on short term deposits 24,258 (2,247 )
Interest received on Corporation Tax 8,588 -
Corporation Tax - R&D refund 170,370 -
203,340 (2,143)
11. Interest Payable and Similar Charges
2024 2023
£ £
Bank loans and overdrafts 21,920 20,895
Late payment tax charges 48,236 41,349
Other finance charges 151 19,103
70,307 81,347
12. Tax on Profit
The tax charge on the profit for the year was as follows:
Tax Rate 2024 2023
2024 2023 £ £
Current tax
UK Corporation Tax 25.0% 25.0% 746,773 792,892
Foreign tax 3,912 -
750,685 792,892
Deferred Tax
Deferred taxation 3,456 -
Total tax charge for the period 754,141 792,892
The actual charge for the year can be reconciled to the expected charge for the year based on the profit and the standard rate of corporation tax as follows:
...CONTINUED
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2024 2023
£ £
Profit before tax 3,168,076 5,059,376
Tax on profit at 25% (UK standard rate) 746,773 792,892
Short term timing differences 3,456 -
Difference in tax rates 3,912 -
Total tax charge for the period 754,141 792,892
Foregin tax amounting to £3,912 relates to the Provision for Income tax created by Scrumconnect India Pvt. Ltd.
13. Tangible Assets
Group
Plant & Machinery Fixtures & Fittings Computer Equipment Total
£ £ £ £
Cost or Valuation
As at 1 April 2023 350,001 95,876 71,235 517,112
Additions - 342 98,745 99,087
Disposals - - 680 680
As at 31 March 2024 350,001 96,218 170,660 616,879
Depreciation
As at 1 April 2023 161,328 23,969 33,241 218,538
Provided during the period 49,219 17,994 20,258 87,471
Disposals - - 170 170
As at 31 March 2024 210,547 41,963 53,669 306,179
Net Book Value
As at 31 March 2024 139,454 54,255 116,991 310,700
As at 1 April 2023 188,673 71,907 37,994 298,574
Company
The company had no tangible fixed assets as at 31 March 2024 or 31 March 2023.
14. Investment Property
Group
2024
£
Fair Value
As at 1 April 2023 5,420,597
Additions 92,000
Fair value adjustments (5,000 )
As at 31 March 2024 5,507,597
Company
The company had no investment property as at 31 March 2024 or 31 March 2023.
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15. Investments
Group
Other
£
Cost
As at 1 April 2023 -
Additions 9,670
As at 31 March 2024 9,670
Provision
As at 1 April 2023 -
As at 31 March 2024 -
Net Book Value
As at 31 March 2024 9,670
As at 1 April 2023 -
The above amount of £9,670 is related to a Fixed deposit with Kotak Mahindra Bank done by Scrumconnect India Pvt. Ltd., therefore, we have classified it as a long term investment.
Company
Unlisted
£
Cost
As at 1 April 2023 2
As at 31 March 2024 2
Provision
As at 1 April 2023 -
As at 31 March 2024 -
Net Book Value
As at 31 March 2024 2
As at 1 April 2023 2
16. Debtors
Group Company
2024 2023 2024 2023
£ £ £ £
Due within one year
Trade debtors 5,123,672 3,746,540 - -
Amounts owed by group undertakings - - 236,809 214,590
Other debtors 4,852,719 4,226,978 733,023 781,471
9,976,391 7,973,518 969,832 996,061
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17. Creditors: Amounts Falling Due Within One Year
Group Company
2024 2023 2024 2023
£ £ £ £
Trade creditors 2,368,923 1,404,403 - 1,200
Other creditors 198,265 296,442 - -
Taxation and social security 1,838,040 1,552,257 - -
Accruals and deferred income 55,313 12,560 10,780 3,600
4,460,541 3,265,662 10,780 4,800
18. Creditors: Amounts Falling Due After More Than One Year
Group
2024 2023
£ £
Loans 405,050 405,475
19. Loans
An analysis of the maturity of loans is given below:
Group
2024 2023
£ £
Amounts falling due between one and five years:
Bank loans 405,050 405,475
20. Deferred Taxation
The provision for deferred tax is made up as follows:
2024 2023
£ £
Other timing differences 3,084 -
21. Share Capital
2024 2023
£ £
Allotted, Called up and fully paid 4 4
22. Pension Commitments
The group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund.
During the year the charge to profit or loss in respect of defined contribution schemes was £35,475 (2023: £16,496).
At the balance sheet date contributions of £NIL were due to the fund and are included in creditors.
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23. Directors Advances, Credits and Guarantees
Included within Debtors are the following loans to directors:
As at 1 April 2023 Amounts advanced Amounts repaid Amounts written off As at 31 March 2024
£ £ £ £ £
Mr Praveen Karadiguddi 349,318 381,469 238,669 - 492,118
Mrs Shilpa Kaluti 555,048 354,880 379,469 - 530,460
The above loan is unsecured, interest free and repayable on demand.
Dividends paid to directors
24. Dividends
2024 2023
£ £
On equity shares:
Final dividend paid 100,000 272,478
25. Note for Subsidiary companies
This financial statement includes the consolidation of four subsidiaries:
1. Scrumconnect Limited
2. Arnik Investment
3. Arnik Swan Court Ltd
4. Scrumconnect India Private Limited
A few key points to note regarding the consolidation:
• Scrumconnect Limited is into business of Information technology consultancy activities. The financial statements considered for consolidation purpose are audited.
• Arnik Investment is into business of Other letting and operating of own or leased real estate and it has been audited for 14 months (i.e for the period from 01/02/2023 to 31/03/2024), as its period was extended. The prior year-end was January 31, 2023, but for consolidation purposes, we have considered the period for CY from April 1, 2023, to March 31, 2024 and for comparatives from April 1, 2022, to March 31, 2023.
• Arnik Swan Court Ltd is into business of Development of building projects and Other letting and operating of own or leased real estate. The financial statements of this company is filed unaudited. It was incorporated on January 6, 2023, and therefore has comparatives financial statements are for approximately three months.
• Scrumconnect India Pvt. Ltd. is into business of Information technology consultancy activities. It is a wholely owned subsidiary of Scrumconnect Ltd. which is audited by an Indian auditor namely Sachin Agarwal & Co. Since, it was incorporated in the current year (incorporated on 11th October, 2023.), therefore, we do not have comparatives. The financial statements considered for consolidation purpose are audited.
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