Company registration number: 05936122
COMPANY INFORMATION
CONTENTS
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2025
The Directors present their Strategic Report of the Group for the year ended 31 March 2025.
The Directors of the Company wish to inform that the Group has returned a consistent performance in terms of Turnover for the year with a gross marginal increase of 0.5%, prior to the recognition of rebates and discounts provisions. The Group has remained profitable continuously and has paid dividends. The results for the year reflect the stable momentum that the Group has been able to maintain over the past few years.
The Company has plans to engage with new clients in the coming year and improve its trading record. The Company has been working closely with a few leads and expects to convert wins in the next financial year. This should help generate additional revenues for the Company and enhance the overall group performance.
The Company serves as an additional set up in the UK to pitch business using the offshore – onsite and nearshore model by bringing in required talent to onsite based on project demands. It has the potential to offer cost leverage to its clients since it has access to a highly skilled offshore talent pool at a comparatively low cost. This provides it an advantage to be competitive in proposals and bids and exhibit the capabilities of the Group to target clients.
The Company serves as the immediate parent of Acuma Solutions Ltd in the UK. Acuma Solutions is its flagship subsidiary and the larger trading entity in the UK group. The Company ably supports Acuma Solutions Limited by acting as a mediator with the Group. This allows the Company to fulfill the resource and talent requirements to source business and deliver services to clients of Acuma and thereby enable the Group to scale up its operations.
The Company has plans to engage with new clients in the coming year and improve its trading record. The Company has been working closely with a few leads and expects to convert wins in the next financial year. This should help generate additional revenues for the Company and enhance the overall group performance.
The Company serves as an additional set up in the UK to pitch business using the offshore – onsite and nearshore model by bringing in required talent to onsite based on project demands. It has the potential to offer cost leverage to its clients since it has access to a highly skilled offshore talent pool at a comparatively low cost. This provides it an advantage to be competitive in proposals and bids and exhibit the capabilities of the Group to target clients.
The Company serves as the immediate parent of Acuma Solutions Ltd in the UK. Acuma Solutions is its flagship subsidiary and the larger trading entity in the UK group. The Company ably supports Acuma Solutions Limited by acting as a mediator with the Group. This allows the Company to fulfill the resource and talent requirements to source business and deliver services to clients of Acuma and thereby enable the Group to scale up its operations.
The Group's financial instruments comprise cash and liquid resources, balances with group undertakings and various items such as trade debtors, trade creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for its operations. It is, and has been throughout the period under review, the Group's policy that no trading in financial instruments shall be undertaken. The main risks arising from the Group financial instruments are interest rate risk, liquidity risk, foreign currency risk and credit risk. The board reviews and agrees policies for managing each of these risks and they are summarised below.
Interest rate risk
The Group's interest rate risk exists in interest - bearing assets, such as an overdraft or loan, due to the possibility of a change in the value resulting from the variability of interest rates. The Group manages its interest rate risk by trying to avoid banking finance as far as possible and considering repaying the liability as it falls due and primarily on its own generated income and group supports.
Foreign currency risk
The Group is exposed to foreign currency risks arising from sales or purchases by businesses in currencies other than its functional currency. The Group manages this risk by operating its business transaction from different currency bank accounts. The Group does not enter into instruments as it is not cost/benefit efficient at the current level of risk. However, the Group is evaluating exposures to forward instruments to mitigate this risk.
Credit Risk
The Group is exposed to credit-related losses to financial instruments, ie debtors, in the event of non-performance by its client’s counterparts, but does not currently expect any counterpart's to fail to meet their obligations. Credit risk is mitigated by the Board approved policy of only selecting counterparts with a good standing and strong credit reference.
Liquidity Risk
The Group currently maintains credit facilities of at least £200,000 to ensure it has sufficient available funds for operations and planned development. The principal revolving credit facility is reviewed every year. At the balance sheet date, the company had Credit- card facility of £30 000 and the following undrawn credit facilities:
1. Overdraft facilities: £400,000 and:
2. Foreign exchange marginal risk facilities: £150,000
Interest rate risk
The Group's interest rate risk exists in interest - bearing assets, such as an overdraft or loan, due to the possibility of a change in the value resulting from the variability of interest rates. The Group manages its interest rate risk by trying to avoid banking finance as far as possible and considering repaying the liability as it falls due and primarily on its own generated income and group supports.
Foreign currency risk
The Group is exposed to foreign currency risks arising from sales or purchases by businesses in currencies other than its functional currency. The Group manages this risk by operating its business transaction from different currency bank accounts. The Group does not enter into instruments as it is not cost/benefit efficient at the current level of risk. However, the Group is evaluating exposures to forward instruments to mitigate this risk.
Credit Risk
The Group is exposed to credit-related losses to financial instruments, ie debtors, in the event of non-performance by its client’s counterparts, but does not currently expect any counterpart's to fail to meet their obligations. Credit risk is mitigated by the Board approved policy of only selecting counterparts with a good standing and strong credit reference.
Liquidity Risk
The Group currently maintains credit facilities of at least £200,000 to ensure it has sufficient available funds for operations and planned development. The principal revolving credit facility is reviewed every year. At the balance sheet date, the company had Credit- card facility of £30 000 and the following undrawn credit facilities:
1. Overdraft facilities: £400,000 and:
2. Foreign exchange marginal risk facilities: £150,000
Page 1
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
Operational Risk:
The Group’s operational risk may arise out of interruptions to the business cycle due to external events like adverse weather conditions (fire, flood) and pandemics. The Group has the necessary resources at its disposal to quickly arrange for alternate arrangements from other locations and resort to remote working /work from home model to ensure continuity of operations. The Group also has insurance coverage in place to address business interruption scenarios should one arise.
Cyber Risk:
The Group’s Cyber risk exposure lies in its vulnerability to Cyber and ransomware attacks which could affect operations and pose monetary implications. The Group has mitigated such risks by strengthening its security infrastructure, implementing End point controls and multi factor authentications and undertaking periodic vulnerability assessments. The Group has also moved its infrastructure from On-prem to Cloud based operations model to reduce and limit exposure to such external attacks.
Third Party Risk:
The Group engages with third party service and hosting providers as part of its service model to clients thereby exposing itself to third party associated risks. But the Group has well defined and structured contractual arrangements and vetting mechanisms to ensure the engagements are tightly drawn out to factor and mitigate performance related liabilities. The Group also backs up its third party engagements with adequate Liability insurance coverages to protect the Group’s interests.
Regulatory and Compliance Risk:
The Group being part of the IT industry is regulated by various authoritative bodies and is required to comply with local laws and regulations. The Group has addressed this risk by employing skilled internal team capable of handling compliance related activities and ensuring Group’s adherence to local laws. The Group is also periodically subject to audits by external consultants which allows it to monitor compliances regularly. The Group also engages with professional firms and consultants to seek advisory where required to ensure adequate and appropriate compliance while conducting its business operations.
The Group’s operational risk may arise out of interruptions to the business cycle due to external events like adverse weather conditions (fire, flood) and pandemics. The Group has the necessary resources at its disposal to quickly arrange for alternate arrangements from other locations and resort to remote working /work from home model to ensure continuity of operations. The Group also has insurance coverage in place to address business interruption scenarios should one arise.
Cyber Risk:
The Group’s Cyber risk exposure lies in its vulnerability to Cyber and ransomware attacks which could affect operations and pose monetary implications. The Group has mitigated such risks by strengthening its security infrastructure, implementing End point controls and multi factor authentications and undertaking periodic vulnerability assessments. The Group has also moved its infrastructure from On-prem to Cloud based operations model to reduce and limit exposure to such external attacks.
Third Party Risk:
The Group engages with third party service and hosting providers as part of its service model to clients thereby exposing itself to third party associated risks. But the Group has well defined and structured contractual arrangements and vetting mechanisms to ensure the engagements are tightly drawn out to factor and mitigate performance related liabilities. The Group also backs up its third party engagements with adequate Liability insurance coverages to protect the Group’s interests.
Regulatory and Compliance Risk:
The Group being part of the IT industry is regulated by various authoritative bodies and is required to comply with local laws and regulations. The Group has addressed this risk by employing skilled internal team capable of handling compliance related activities and ensuring Group’s adherence to local laws. The Group is also periodically subject to audits by external consultants which allows it to monitor compliances regularly. The Group also engages with professional firms and consultants to seek advisory where required to ensure adequate and appropriate compliance while conducting its business operations.
The group has the following key perfomance indicators:
1. Turnover without volume discount: £17,191,431 (2024 - £17,102,895)
2. Profit after tax: £1,084,153 (2024 - £1,292,820)
3. EBITDA: £1,117,331 (2024 - £1,708,312)
1. Turnover without volume discount: £17,191,431 (2024 - £17,102,895)
2. Profit after tax: £1,084,153 (2024 - £1,292,820)
3. EBITDA: £1,117,331 (2024 - £1,708,312)
This report was approved by the board on 24 May 2025 and signed on its behalf.
Page 2
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2025
The directors present their report and the financial statements for the year ended 31 March 2025.
The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 Group'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 Group 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 the Group 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the year, after taxation, amounted to £1,084,153 (2024 - £1,292,820).
The directors have recommended and paid a dividend of £500,000 during the year ended 31 March 2025 (2024 - £Nill).
The directors who served during the year were:
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DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
The Saksoft Group is currently undertaking a re-branding and re-positioning exercise at an overall group level involving all its entities across the regions where the group currently operates. In order to improve focus and sharpen it’s go to market strategies, it has divided its target business areas into four broad categories or business verticals which are Hi-tech Media & Utilities, Fintech, Transportation & Logistics and Retail & E-Commerce. This would help the Group to employ its resources and infrastructure efficiently and in a more client-oriented direction. This would equip the Company to pitch its business offerings in a tailored and structured manner to clients in the respective industry and also customize its services to suit the specific requirements of the clients. We believe this focused and divided approach would enable the Company to improve its winnings and conversion of leads and pipelines into orders.
The larger Group is also planning to re-imagine the way it projects itself to the market in the coming year. It has planned investments in the Artificial Intelligence technology and business space and build a practice around AI in the coming year. The Group is keen to re-position itself as an AI led Digital Services Company. It has plans to skill up its resources across all entities of the Group in AI related technologies and revamp all its services offerings built on AI platforms. The Group is eager to take the early jump in the AI space and wants to be future ready, client ready and industry ready. We believe this would help the Company to sell solutions that would be futuristic and relevant to clients who want to upgrade and blend AI operational models into their business operations.
Market research says that AI is going to lead the next technology boom. The market potential for AI based services is expected to expand in to a multi-billion dollar industry in the next 4- 5 years. The Group is aiming to partner with ISV’s (Independent Software Vendors) to aid their systems integration and service delivery mechanisms to target double digit growth from these partnerships. We shall also work with our existing large enterprise accounts to enable AI led digital transformation services to be integrated into their technology journey.
Our aim is to bridge AI enablement with legacy systems and products in the near future and tap the market as a trusted partner for prospective clients. The value propositions would center around AI specialist Talent, Faster time to market with pre-built AI suite and AI Ecosystem leverage built on the underlying legacy of trust and services expertise of the Group.
The larger Group is also planning to re-imagine the way it projects itself to the market in the coming year. It has planned investments in the Artificial Intelligence technology and business space and build a practice around AI in the coming year. The Group is keen to re-position itself as an AI led Digital Services Company. It has plans to skill up its resources across all entities of the Group in AI related technologies and revamp all its services offerings built on AI platforms. The Group is eager to take the early jump in the AI space and wants to be future ready, client ready and industry ready. We believe this would help the Company to sell solutions that would be futuristic and relevant to clients who want to upgrade and blend AI operational models into their business operations.
Market research says that AI is going to lead the next technology boom. The market potential for AI based services is expected to expand in to a multi-billion dollar industry in the next 4- 5 years. The Group is aiming to partner with ISV’s (Independent Software Vendors) to aid their systems integration and service delivery mechanisms to target double digit growth from these partnerships. We shall also work with our existing large enterprise accounts to enable AI led digital transformation services to be integrated into their technology journey.
Our aim is to bridge AI enablement with legacy systems and products in the near future and tap the market as a trusted partner for prospective clients. The value propositions would center around AI specialist Talent, Faster time to market with pre-built AI suite and AI Ecosystem leverage built on the underlying legacy of trust and services expertise of the Group.
Details of risks arising from financial instruments and financial risk management are covered in the Strategic Report.
Page 4
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
There have been no significant events affecting the Group since the year end.
The auditor, Menzies LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on 24 May 2025 and signed on its behalf.
Page 5
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SAKSOFT SOLUTIONS LIMITED
We have audited the financial statements of Saksoft Solutions Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 March 2025, which comprise the Consolidated Statement of Income and Retained Earnings, the Consolidated Statement of Financial Position, the Company Statement of Financial Position, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Group 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 Group's or the parent 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.
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.
Page 6
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SAKSOFT SOLUTIONS LIMITED (CONTINUED)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group 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 Group 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 Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.
Page 7
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SAKSOFT SOLUTIONS LIMITED (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 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 Group 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:
The Group is subject to laws and regulations that directly affect the financial statements including financial reporting
legislation. We determined that the following laws and regulations were most significant including:
∙Companies Act 2006;
∙UK tax legislation;
∙Financial Reporting Standard 102; and
∙UK employment legislation;
We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
We understood how the Group is complying with those legal and regulatory frameworks by making inquiries of management and those responsible for legal and compliance procedures. We corroborated our inquiries through our review of relevant documentation.
The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. No issues were identified in this area.
We assessed the susceptibility of the financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:
∙Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;
∙Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process;
∙Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations; and
∙Challenging assumptions and judgements made by management in the application of accounting estimates.
As a result of the above procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:
∙Manipulation of accounting estimates
∙Posting of unusual journals and complex transactions
∙Manipulation of cut off of revenue.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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 Auditor's Report.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SAKSOFT SOLUTIONS LIMITED (CONTINUED)
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditor's Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants
Statutory Auditor
95 Gresham Street
EC2V 7AB
25 May 2025
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CONSOLIDATED STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 MARCH 2025
Page 10
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 24 May 2025.
The notes on pages 17 to 29 form part of these financial statements.
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COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 24 May 2025.
The notes on pages 17 to 29 form part of these financial statements.
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2025
Page 13
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2025
Page 14
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2025
Page 15
CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 MARCH 2025
Page 16
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
Saksoft Solutions Limited is a private Company, limited by shares, registered in England and Wales. The company's registered number and registered office address can be found on the General Informarion page.
The principal activities of the Company during the year under review were those of specialist digital transformation service provider focused on information management and those of an investment holding company.
The principal activities of the Company during the year under review were those of specialist digital transformation service provider focused on information management and those of an investment holding company.
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 Group management to exercise judgment in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Income and Retained Earnings in these financial statements.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of Financial Position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Income and Retained Earnings from the date on which control is obtained. They are deconsolidated from the date control ceases.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of Financial Position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Income and Retained Earnings from the date on which control is obtained. They are deconsolidated from the date control ceases.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
The turnover represents net sales of IT software, consultancy, support, expense re-charge and training to third party customers, excluding VAT, and is predominately attributable to ordinary activities carried out in the UK.
Revenue is recognised to the extent that the group obtains the right to consideration in exchange for its performance. Revenue is measured at the fair value of the consideration received, excluding discounts, rebates, VAT and other sales tax or duty. The following criteria must also be met before revenue is recognised.
Sale of software and hardware
Revenue from the sale of software and hardware is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, usually on dispatch of goods.
Rendering of services
Revenue from the provision of services is recognised by reference to the stage of completion for fixed price projects. Stage of completion is measured by reference to project days incurred to date as a percentage of total estimated project days for each contract. Revenue from time and materials contracts is recognised as the services are rendered.
Revenue is recognised to the extent that the group obtains the right to consideration in exchange for its performance. Revenue is measured at the fair value of the consideration received, excluding discounts, rebates, VAT and other sales tax or duty. The following criteria must also be met before revenue is recognised.
Sale of software and hardware
Revenue from the sale of software and hardware is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, usually on dispatch of goods.
Rendering of services
Revenue from the provision of services is recognised by reference to the stage of completion for fixed price projects. Stage of completion is measured by reference to project days incurred to date as a percentage of total estimated project days for each contract. Revenue from time and materials contracts is recognised as the services are rendered.
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.
Transactions between group entities which have not been eliminated on consolidation are not disclosed within the financial statements.
Transactions between group entities which have not been eliminated on consolidation are not disclosed within the financial statements.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
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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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
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 Group's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
Basic 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 Group after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies 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.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
assumptions that affect the amounts reported. These estimates and judgments are continually reviewed and are
based on experience and other factors, including expectations of future events that are believed to be reasonable
under the circumstances.
A dilapidations provision has been recognised in the financial statements. Management are required to estimate the costs to reinstate the properties based on the contractual terms in the lease agreements. There are significant uncertainties around the timing of the cash outflow and discount rate used to establish the present value of the obligations due to the number of leases held by the company.
The provision has been calculated based on the historical experience of costs incurred and the most likely date of termination of each lease. The possible range of the provision at the year end is between £100,000 and £125,000. The balance of £112,000 recognised in the financial statements at the year end is the most likely outcome within the range.
Analysis of turnover by country of destination:
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
Page 23
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
There are no factors affecting future tax charges.
Page 24
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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Page 25
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
Page 26
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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Page 27
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
16.Deferred taxation (continued)
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Share premium account
Profit and loss account
Page 28
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
The group makes controbutions to the personal pension schemes of its employees. The unpaid contributions outstanding at the year end included in creditors are £5,695 (2024: £8,451).
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. The company has taken advantage of the exemption from disclosing related party transactions with Group companies.
The directors consider the immediate undertaking, ultimate parent undertaking and controlling party to be Saksoft Limited, a company incorporated in India.
The largest group of which the company is a member, and for which consolidated financial statements are prepared, is that group headed by Saksoft Limited. Copies of the group financial statements can be obtained from:
40 Global Infocity 2nd Floor,
Dr.M G R Salai,
Perungudi Chennai
600096
India
The largest group of which the company is a member, and for which consolidated financial statements are prepared, is that group headed by Saksoft Limited. Copies of the group financial statements can be obtained from:
40 Global Infocity 2nd Floor,
Dr.M G R Salai,
Perungudi Chennai
600096
India
Page 29