Company registration number 10342164 (England and Wales)
INAWISDOM LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
INAWISDOM LIMITED
COMPANY INFORMATION
Directors
E De Rocca-Serra
J Suk-Won Yu
Company number
10342164
Registered office
280 Bishopsgate
London
EC2M 4AG
Auditor
Ensors Accountants LLP
Connexions
159 Princes Street
Ipswich
IP1 1QJ
Business address
Columba House (B83)
Adastral Park
Martlesham Heath
Ipswich
IP5 3RE
INAWISDOM LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 22
INAWISDOM LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 31 December 2023.

Review of the business

About Inawisdom

Inawisdom focuses on delivering cloud-native, full-stack solutions leveraging proven consulting methodologies. The Company developed the Rapid Analytics and Machine Learning Platform (RAMP) built using Amazon Web Services to provide a continually evolving and reusable code repository and accelerate AI-driven business outcomes. Through the use of RAMP and its own Agile consulting approach, Inawisdom enables clients to exploit every aspect of their data to deliver measurable business value, rapidly and at scale.

In December 2020, the business was acquired by Cognizant group, one of the leading global professional services companies.

FY23 Results

During the year, as part of a wider group restructuring it was decided to fully integrate the Inawisdom group into the existing Cognizant businesses.  Accordingly, on 1 October 2023 the Company entered into an agreement with Cognizant Worldwide Limited to sell its trade and assets in exchange for consideration.  Consideration due is based on the fair value of the business being transferred and is payable via an interest bearing loan note.  Employees of the Company were TUPE’D across to Cognizant Worldwide Limited on the same date.

 

For the year ended 31 December 2023 revenues closed at £8,631,290 as compared with £13,312,809 in the prior year. This decline in revenue is primarily due to the fact that the main trading activity occurred over a 9 month period, as the majority of active projects were novated to Cognizant Worldwide Limited effective 1 October 2023. Despite this decline gross margin remained strong closing at £3,740,028 (43%) for the current year (2022: £4,829,270 (36%)).

For the period the business generated an operating profit of £1,553,137 (2023: £711,182 loss). This improvement has been achieved through the realisation of certain synergies post Cognizant’s acquisition of the business. The directors expect further efficiencies to be realized post integration of the business into Cognizant’s existing UK operation.

Principal risks and uncertainties

As noted, the Company sold its trade and assets to Cognizant Worldwide Limited during the financial year. As of the date of this report, the Company has no active employees or customer engagements and therefore, the directors intend to formally close the Company. For this reason these accounts have been prepared on a basis other than that of a going concern.

The only material asset on the balance sheet post integration is an interest-bearing receivable balance due from Cognizant Worldwide Limited. The directors have assessed the recoverability of this asset and are satisfied that there is no material risk of default.

Other than this receivable the Company holds an investment in Inawisdom BV. This entity is in the process of being closed and the directors expect the subsidiary to be formally closed during 2025. An assessment of any potential impairment in the investment has been carried out and the directors are satisfied that the risk of impairment is low.

Key performance indicators

During the current financial year the Company measures its performance using the following key performance indicators:

Revenue growth, growth margin and operating margins.

Average headcount within the business.

 

INAWISDOM LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

On behalf of the board

E De Rocca-Serra
Director
3 June 2025
INAWISDOM LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

The directors present their annual report and financial statements for the year ended 31 December 2023.

Principal activities

The principal activities of the company are the delivery of IT consultancy, projects and managed services around the company’s core specialisms of Artificial Intelligence (AI), Machine Learning (ML) and Data Analytics, including the building and operating of Public Cloud data platforms. To accelerate its customers' adoption of AI & ML the company has also developed its own intellectual property, including a rapid analytics and machine learning platform known as RAMP which is licensed to its customers. The company intends to maintain its focus in these core in demand specialisms.

Results and dividends

The results for the year are set out on page 9.

No dividends were declared during the financial year.  The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

E De Rocca-Serra
J Suk-Won Yu
Financial instruments

The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.

The company’s principal foreign currency exposures arise from trading with overseas companies. Company policy permits but does not demand that these exposures may be hedged in order to fix the cost in sterling. This hedging activity involves the use of foreign exchange forward contracts.

All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

Future developments

The business will cease trading once all active contracts have been novated to Cognizant Worldwide Limited. Contract novation was completed during 2024 and it is expected that the Company will formally close during 2025.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

INAWISDOM LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
On behalf of the board
E De Rocca-Serra
Director
3 June 2025
INAWISDOM LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -

The directors are responsible 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:

 

 

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.

INAWISDOM LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF INAWISDOM LIMITED
- 6 -
Opinion

We have audited the financial statements of Inawisdom Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including 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:

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.

Emphasis of matter - basis of preparation

As described in note 1.2, as of 1st October 2023 the trade and assets of the company have been hived up into Cognizant Worldwide Limited the immediate parent undertaking. Accordingly, the directors do not consider it is appropriate to apply the going concern basis in preparing the financial statements. Accordingly the financial statements have been prepared on a basis other than going concern.

 

Our opinion is not modified in respect of this matter.

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. 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

INAWISDOM LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF INAWISDOM LIMITED
- 7 -
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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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.

After our initial risk assessment, we performed the following procedures to detect material misstatements in respect of irregularities arising due to fraud or error:

- Enquiry of management, those charged with governance and the entity’s solicitors (or in-house legal team) around actual and potential litigation and claims.

- Enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations.

- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.

- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

INAWISDOM LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF INAWISDOM LIMITED
- 8 -

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.

Barry Gostling
Senior Statutory Auditor
For and on behalf of Ensors Accountants LLP
4 June 2025
Chartered Accountants
Statutory Auditor
Connexions
159 Princes Street
Ipswich
IP1 1QJ
INAWISDOM LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
8,631,290
13,312,809
Cost of sales
(4,891,262)
(8,483,539)
Gross profit
3,740,028
4,829,270
Administrative expenses
(2,199,469)
(5,699,866)
Other operating income
12,578
159,414
Operating profit/(loss)
5
1,553,137
(711,182)
Profit on transfer of trade
4
28,179,229
Interest receivable and similar income
8
409,369
-
Interest payable and similar expenses
9
-
0
(15)
Profit/(loss) before taxation
30,141,735
(711,197)
Tax on profit/(loss)
10
-
0
(352)
Profit/(loss) for the financial year
30,141,735
(711,549)

The profit and loss account has been prepared on the basis that all operations are being hived up in line with the basis of preparation.

INAWISDOM LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
-
0
89,725
Investments
12
1,783
1,783
1,783
91,508
Current assets
Debtors
14
29,871,849
2,781,888
Cash at bank and in hand
-
0
1,704,662
29,871,849
4,486,550
Creditors: amounts falling due within one year
15
-
0
(4,846,161)
Net current assets/(liabilities)
29,871,849
(359,611)
Net assets/(liabilities)
29,873,632
(268,103)
Capital and reserves
Called up share capital
18
24,721
24,721
Share premium account
774,829
774,829
Profit and loss reserves
29,074,082
(1,067,653)
Total equity
29,873,632
(268,103)

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 3 June 2025 and are signed on its behalf by:
E De Rocca-Serra
Director
Company registration number 10342164 (England and Wales)
INAWISDOM LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
Balance at 1 January 2022
24,721
774,829
(356,104)
443,446
Year ended 31 December 2022:
Loss and total comprehensive income
-
-
(711,549)
(711,549)
Balance at 31 December 2022
24,721
774,829
(1,067,653)
(268,103)
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
30,141,735
30,141,735
Balance at 31 December 2023
24,721
774,829
29,074,082
29,873,632
INAWISDOM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
1
Accounting policies
Company information

Inawisdom Limited is a private company limited by shares incorporated in England and Wales. The registered office is 280 Bishopsgate, London, EC2M 4AG.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of Cognizant Technology Solutions Corporation (“CTSC”). These consolidated financial statements are available from its registered office, 300 Frank W. Burr Blvd, Teaneck, NJ 07666 or from www.cognizant.com and www.sec.gov.

 

Substance Over Legal Form

 

Although not all contracts were formally novated as at 1 July 2024, the Directors consider it appropriate to prepare these financial statements based on the substance of the transaction rather than its legal form. This approach reflects the fact that the risks and rewards associated with all remaining contracts have effectively transferred to Cognizant Worldwide. Accordingly, any outstanding balance sheet items have been treated as hived up, with only the interest-bearing intercompany debtor remaining.

1.2
Business combinations

Business combinations are accounted for in conjunction with the requirements of section 19 of FRS 102.  Where a subsidiary company that is under common control transfers its trade and assets to its parent company the assets are transferred at book value.  The effective date of the transaction is determined by the date that the sale and purchase agreement between the two parties becomes legally binding. Consideration payable to the business transferring its trade and assets to the parent company is determined based on the fair value of the business being transferred.  Any goodwill arising on the transfer of trade and assets would be recognised in the books of the parent entity and would be calculated based on the fair value of assets at the time of the initial acquisition.

1.3
Going concern

As of the 1st October 2023 the directors decided to hive the trade and assets of the company up into Cognizant Worldwide Limited, the immediate parent undertaking. The assets and liabilities have been transferred at fair value. Accordingly, the directors do not consider it is appropriate to apply the going concern basis and these accounts have been prepared using an alternative basis of accounting. As the transfer has taken place at fair value, all assets and liabilities are recorded at the book values and presented as both current assets and current liabilities.true

INAWISDOM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Plant and equipment
3 - 5 years
Computers and Office Equipment
3 - 5 years

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.6
Fixed asset investments

Interests in subsidiaries 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.

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.

1.7
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 profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

INAWISDOM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -

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.

1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks and other short-term liquid investments with original maturities of three months or less.

1.9
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ 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 debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. 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.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

INAWISDOM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of 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 deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.10
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.11
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

INAWISDOM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. 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.

1.12
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

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.

1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.14
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 leases asset are consumed.

1.15
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

INAWISDOM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
2
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.

INAWISDOM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
3
Turnover
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
6,762,583
10,623,641
Europe
721,274
1,000,054
North America
334,825
860,156
Middle East
812,608
828,958
8,631,290
13,312,809
4
Profit on sale of trade and assets
2023
2022
£
£
Expenditure
Profit on transfer of trade
(28,179,229)
-

On 1 October 2023 the Company sold its trade and assets in exchange for consideration.  The Company’s assets were hived up into the parent company, Cognizant Worldwide Limited based on their fair value.

 

Although not all contracts were formally novated as at 1 July 2024, the Directors consider it appropriate to prepare these financial statements based on the substance of the transaction rather than its legal form. This approach reflects the fact that the risks and rewards associated with all remaining contracts have effectively transferred to Cognizant Worldwide. Accordingly, any outstanding balance sheet items have been treated as hived up, with only the interest-bearing intercompany debtor remaining

5
Operating profit/(loss)
2023
2022
Operating profit/(loss) for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
37,233
(29,622)
Fees payable to the company's auditor for the audit of the company's financial statements
17,500
16,675
Depreciation of owned tangible fixed assets
39,736
56,684
Operating lease charges
83,765
85,970
6
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
66
88
INAWISDOM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
6
Employees
(Continued)
- 19 -

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
2,994,682
7,780,984
Social security costs
571,256
831,460
Pension costs
502,675
716,930
4,068,613
9,329,374
7
Directors' remuneration

The Company received services from 2 directors during the financial year. None of the directors of the Company received any remuneration specifically for services as directors of the Company.  These individuals are employed and paid either by the ultimate parent company Cognizant Technology Solutions Corporation or Cognizant Technology Solutions France SAS for services provided to the wider group with no recharge made from the company that they are employed by to the Company. It is not possible to make a reasonable apportionment of the compensation in respect of each of the subsidiaries.

8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest receivable from group companies
409,369
-
0
9
Interest payable and similar expenses
2023
2022
£
£
Other interest on financial liabilities
-
0
15
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
-
0
352
INAWISDOM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
10
Taxation
(Continued)
- 20 -

The actual charge for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit/(loss) before taxation
30,141,735
(711,197)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
7,089,336
(135,127)
Tax effect of expenses that are not deductible in determining taxable profit
823
685
Tax effect of income not taxable in determining taxable profit
(6,627,909)
-
0
Change in unrecognised deferred tax assets
(471,601)
181,261
Adjustments in respect of prior years
-
0
352
Research and development tax credit
9,351
281
Fixed asset differences
-
0
(3,598)
Remeasurement of deferred tax for changes in tax rates
-
0
(43,502)
Taxation charge for the year
-
352
11
Tangible fixed assets
Plant and equipment
Computers and Office Equipment
Total
£
£
£
Cost
At 1 January 2023
14,086
270,460
284,546
Additions
857
9,499
10,356
Disposals
(14,943)
(279,959)
(294,902)
At 31 December 2023
-
0
-
0
-
0
Depreciation and impairment
At 1 January 2023
10,223
184,598
194,821
Depreciation charged in the year
1,418
38,318
39,736
Eliminated in respect of disposals
(11,641)
(222,916)
(234,557)
At 31 December 2023
-
0
-
0
-
0
Carrying amount
At 31 December 2023
-
0
-
0
-
0
At 31 December 2022
3,863
85,862
89,725
INAWISDOM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
12
Fixed asset investments
2023
2022
Notes
£
£
Investments in subsidiaries
13
1,783
1,783
13
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Inawisdom Europe B.V
Paul van Vlissingenstraat 10 C, 1096BK Amsterdam, Netherlands
Ordinary
100.00
14
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
-
0
1,629,540
Corporation tax recoverable
-
0
379,551
Amounts owed by group undertakings
29,871,849
17
Other debtors
-
0
36,892
Prepayments and accrued income
-
0
735,888
29,871,849
2,781,888
15
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Trade creditors
-
0
455,213
Amounts owed to group undertakings
-
0
2,392,368
Taxation and social security
-
0
1,329,926
Deferred income
16
-
0
110,618
Other creditors
-
0
163
Accruals
-
0
557,873
-
0
4,846,161
16
Deferred income
2023
2022
£
£
Other deferred income
-
110,618
INAWISDOM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
17
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
502,675
716,930

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

18
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
2,472,053
2,472,053
24,721
24,721
19
Capital commitments and Contingent liabilities

There were no capital commitments or contingent liabilities in the year.

20
Events after the reporting date

The novation of customer contracts completed on 30 June 2024 and the Company ceased trading after this date.

21
Ultimate controlling party

The ultimate parent and controlling party is Cognizant Technology Solutions Corporation (“CTSC”), a company incorporated in the United States of America. CTSC is the parent of the largest and smallest group of undertakings to consolidate these financial statements. The consolidated financial statements of CTSC are available from 300 Frank W. Burr Blvd, Teaneck, NJ 07666 or from www.cognizant.com and www.sec.gov as soon as reasonably practicable after such materials are filed with the SEC.

 

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