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Registered number: 04686010
CAPITAL CITY SERVICE LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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CAPITAL CITY SERVICE LIMITED
COMPANY INFORMATION
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Chartered Accountants & Statutory Auditors
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CAPITAL CITY SERVICE LIMITED
CONTENTS
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Independent auditors' report
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Statement of profit or loss
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Statement of financial position
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Statement of changes in equity
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Notes to the financial statements
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CAPITAL CITY SERVICE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2025
During the year, the Company’s sales decreased by 50% (2024:18%) mainly due to the departure of team managers, which resulted in the loss of key clients and a significant reduction in revenue.
The Company operates from 2 offices: these are based in the United Kingdom and Moldova. The office in Moldova has the function of supporting all of the main business activities of Capital City Service Limited. The management and control of the Company continues from its UK office.
The main risks which the Company faces are the recoverability of amounts due from its customers and any technical problems with the telecommunications equipment which could potentially result in the loss of customers. Both these risks are addressed by the Company with specially designed measures.
The directors consider that the results for the year and the state of the Company's affairs at the year end, as shown in the financial statements, to be satisfactory. The key financial highlights are as follows:
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Turnover growth / (decrease)
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CAPITAL CITY SERVICE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
Trading is mostly undertaken in US Dollars, but where it is appropriate the local currencies are used. Hence, the
foreign currency risk exposure arises primarily from trade receivables and trade payables denominated in Euros.
The impact on the Statement of profit or loss from foreign currency movements was a loss of $92k (2024: $34k). The main reason for the loss in the year is the high level of cash and trade receivables held in Euros whilst the Euro appreciated against the US Dollar.
The Company's approach to managing other risks applicable to the financial instruments concerned is as follows:
Bank balances
In respect of bank balances, the liquidity risk is managed by preparing and maintaining regular cash flow forecasts to ensure that positive bank balances are maintained.
Trade receivables
Trade receivables are managed in respect of credit and cash flow risk by regular review of customers' credit rating, continual communication with customers and regular monitoring of amounts outstanding and the age of debt.
Trade payables
Trade payables liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.
Capital management
The Board’s policy is to preserve a strong capital base (which consists of share capital and reserves) in order to maintain investor, creditor and market confidence and to safeguard the future development of the business.
Within this policy the Board is mindful of the need to balance objectives with the efficient use of capital.
Price risk
There are no price risks faced by the Company as all call prices are agreed in advance and are reviewed on a regular basis.
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CAPITAL CITY SERVICE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
The functional currency of the Company is US Dollars. This is the currency that the Company predominantly invoices its customers and receives invoices from suppliers. Through invoicing and purchasing in the functional currency the Company reduces a large risk that a company operating on a global scale can face in the form of exchange rate risk.
The key areas for exchange rate movement are receivables, payables and cash at bank. The two currencies used other than US Dollar are Euros and GBP. A 5% unfavourable movement on the exchange rate would have the following effect on the Statement of Financial Position:
Receivables
The receivables balance for the companies invoiced in Euros at the year end is $1,442k this has been exchanged to Dollars using an exchange rate of 1.083. If this was to reduce to 5% with the weakening of the Euro then the exchange rate would be 1.029 if this rate was used then there would be an additional $72k recorded as an expense in the accounts.
Payables
The balances at the year end for companies dealing in Euros is $4,066k and this was exchanged to Dollars using rate 1.083. If this was to increase to 5% due to strengthening of the Euros then the exchange rate would be 1.137. If this rate was used then there would be an additional $198k recorded as an expense in the accounts.
Cash at bank
At the year end within cash at bank there were bank accounts holding Euros balances of Euro 631k and these have been translated using the exchange rate referred to above of 1.083, if there was a weakening of the Euro and it moved to 1.029 then there would be an additional $34k recorded on the loss on foreign exchange.
This report was approved by the board on 23 December 2025 and signed on its behalf.
Alexandru Taracanov
Director
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CAPITAL CITY SERVICE LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 MARCH 2025
The director presents his report and the financial statements for the year ended 31 March 2025.
Director's responsibilities statement
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The director is responsible for preparing the Strategic report, Director's report and the financial statements, in accordance with applicable law.
Company law requires the director to prepare financial statements for each financial year. Under that law he has elected to prepare the financial statements in accordance with International Financial Reporting Standards (IFRS) as adopted by the UK.
Under company law the director must not approve the financial statements unless he is 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 director is required to:
∙select suitable accounting policies and then apply them consistently;
∙make judgments and estimates that are reasonable and prudent;
∙state whether they have been prepared in accordance with IFRS as adopted by the UK, subject to any material departures disclosed and explained in the financial statements;
∙assess the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and
∙use the going concern basis of accounting unless he either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The director is 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. He is responsible for such internal control as he determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and has general responsibility for taking such steps as are reasonably open to him to safeguard the assets of the Company and to prevent and detect fraud and other irregularities.
The principal activity of the Company continues to be that of trading in telecommunications services.
The profit for the year, after taxation, amounted to $134 thousand (2024 - $520 thousand).
The director who served during the year was:
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CAPITAL CITY SERVICE LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
The Company's principle financial instruments comprise:
- Bank balances;
- Trade receivables; and
- Trade payables.
The main purpose of these instruments is to raise and maintain sufficient funds for the Company's operations
and to finance the Company’s operations.
Due to the nature of the financial instruments used by the Company there is no exposure to price risk.
Since the year-end, the company has continued to expand its business and secure new contracts with customers.
Disclosure of information to auditors
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The director at the time when this Director's report is approved has confirmed that:
∙so far as he is aware, there is no relevant audit information of which the Company's auditors are unaware, and
∙he has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.
The auditors, Sumer Auditco Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on 23 December 2025 and signed on its behalf.
Alexandru Taracanov
Director
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CAPITAL CITY SERVICE LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CAPITAL CITY SERVICE LIMITED
We have audited the financial statements of Capital City Service Limited for the year ended 31 March 2025 which comprise the Statement of profit or loss, the Statement of financial position, the Statement of cash flows, the Statement of changes in equity and the related notes, including a summary of significant accounting policies set out on pages 20 - 22. The financial reporting framework that has been applied in their preparation is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the United Kingdom.
In our opinion the financial statements:
∙give a true and fair view of the state of the Company's affairs as at 31 March 2025 and of its profit for the year then ended;
∙have been properly prepared in accordance with IFRSs as adopted by the United Kingdom; and
∙have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
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In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Our evaluation of the director's assessment of the Company's ability to continue to adopt the going concern basis of accounting included:
Reviewing management accounts post balance sheet date and through discussions with the director and management.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.
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CAPITAL CITY SERVICE LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CAPITAL CITY SERVICE LIMITED (CONTINUED)
The other information comprises the information included in the Annual report, other than the financial statements and our auditors' report thereon. The directors are responsible for the other information contained within the Annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinion on other matters prescribed by the Companies Act 2006
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In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic report and the Director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic report and the Director's report has been prepared in accordance with applicable legal requirements.
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CAPITAL CITY SERVICE LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CAPITAL CITY SERVICE LIMITED (CONTINUED)
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 Director's 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 and returns; or
∙certain disclosures of director's 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 director's responsibilities statement on page 6, the director is 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 director determines 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 director is 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 director either intends to liquidate the Company or to cease operations, or have no realistic alternative but to do so.
Auditors' 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 auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
In order to identify and assess the risks of material misstatements, including fraud and non-compliance with laws and regulations that could be expected to have a material impact on the financial statements, we have considered:
∙the results of our enquiries of management and those charged with governance of their assessment of the risks of fraud and irregularities;
∙the nature of the company, including its management structure and control systems (including the opportunity for management to override such controls);
∙the industry and environment in which it operates.
We also considered UK tax and pension legislation and laws and regulations relating to employment and the preparation and presentation of the financial statements such as the Companies Act 2006.
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CAPITAL CITY SERVICE LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CAPITAL CITY SERVICE LIMITED (CONTINUED)
Based on this understanding we identified the following matters as being of significance to the entity:
∙laws and regulations considered to have a direct effect on the financial statements including UK financial reporting standards, Company Law, tax legislation and distributable profits legislation;
∙the timing of the recognition of commercial income;
∙compliance with legislation relating to health and safety and local employment law;
∙management bias in selecting accounting policies and determining estimates;
∙inappropriate journal entries; and
∙recoverability of debtors;
We communicated the outcomes of these discussions and enquiries, as well as consideration as to where and how fraud may occur in the entity, to all engagement team members including the auditors of significant components.
Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised:
∙enquiries of management and those charged with governance as to whether the entity complies with such laws and regulations;
∙enquiries with the same concerning any actual or potential litigation or claims;
∙discussion with the same regarding any known or suspected instances of non-compliance with laws and regulation and fraud;
∙assessment of matters reported to management and the result of the subsequent investigation;
∙obtaining an understanding of the relevant controls during the period;
∙review documentation relating to compliance with the regulations relating to Health and Safety and local employment law including certificates seen, insurance policy and health and safety statements;
∙challenging assumptions made by management in their specific accounting policies and estimates;
∙identifying and testing journal entries, in particular any journal entries posted with unusual account combinations or crediting revenue or cash;
∙assessing the recovery of debtors in the period since the balance sheet date and challenging assumptions made by management regarding the recovery of balances which remain outstanding;
∙reviewing the financial statements for compliance with the relevant disclosure requirements;
∙performing analytical procedures to identify any unusual or unexpected relationships or unexpected movements in account balances which may be indicative of fraud;
∙reviewing the minutes of Board meetings and correspondence with HMRC;
∙evaluating the underlying business reasons for any unusual transactions.
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors' report.
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CAPITAL CITY SERVICE LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CAPITAL CITY SERVICE 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 auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
Atulya Mehta, FCCA (Senior statutory auditor)
for and on behalf of
Sumer Auditco Limited
Chartered Accountants
Statutory Auditors
14th Floor
33 Cavendish Square
London
W1G 0PW
23 December 2025
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CAPITAL CITY SERVICE LIMITED
STATEMENT OF PROFIT OR LOSS
FOR THE YEAR ENDED 31 MARCH 2025
The notes on pages 20 to 31 form part of these financial statements.
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There was no other comprehensive income for 2024 (2023: $nil).
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CAPITAL CITY SERVICE LIMITED
REGISTERED NUMBER: 04686010
STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2025
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Property, plant and equipment
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Trade and other receivables
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Cash and cash equivalents
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Trade and other liabilities
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Issued capital and reserves
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The financial statements on pages 3 to 31 were approved and authorised for issue by the board of director on 23 December 2025 and were signed on its behalf by:
The notes on pages 20 to 31 form part of these financial statements.
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CAPITAL CITY SERVICE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2025
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Comprehensive income for the year
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Total comprehensive income for the year
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Total contributions by and distributions to owners
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The notes on pages 20 to 31 form part of these financial statements.
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CAPITAL CITY SERVICE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
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Comprehensive income for the year
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Total comprehensive income for the year
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Total contributions by and distributions to owners
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The notes on pages 20 to 31 form part of these financial statements.
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CAPITAL CITY SERVICE LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2025
Cash flows from operating activities
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Depreciation of property, plant and equipment
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Reversal of impairment loss on trade receivables
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Movements in working capital:
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Decrease in trade and other receivables
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(Decrease)/increase in trade and other payables
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Cash generated from operations
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Net cash from operating activities
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Cash flows from financing activities
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Foreign exchange movements
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Net cash used in financing activities
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Net increase in cash and cash equivalents
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Cash and cash equivalents at the beginning of year
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Cash and cash equivalents at the end of the year
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The notes on pages 20 to 31 form part of these financial statements.
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CAPITAL CITY SERVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
Capital City Service Limited (the 'Company') is a limited company incorporated in UK. The Company's registered office is at First Floor, Building 2, Croxley Business Park, Watford, Hertfordshire, United Kingdom, WD18 8YA. The Company's principal activity is trading in telecommunications services.
The financial statements have been prepared in accordance with International Financial Reporting Standards, International Accounting Standards and Interpretations as adopted by the UK (collectively IFRSs). They were authorised for issue by the Company's board of directors on 23 December 2025.
Details of the Company's accounting policies, including changes during the year, are included in note 3.
In preparing these financial statements, management has made judgments, estimates and assumptions that affect the application of the Company accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised prospectively.
The areas where judgments and estimates have been made in preparing the financial statements and their effects are disclosed in note 5.
The financial statements have been prepared on the historical cost basis.
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2.2 Changes in accounting policies
i) New standards, interpretations and amendments effective from 1 April 2024
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IAS 1 – Classification of Liabilities as Current or Non-current
Clarifies criteria for classifying liabilities as current or non-current, focusing on rights at the reporting date.
IAS 1 – Non-current Liabilities with Covenants
Addresses how covenants affect classification of liabilities. [ifrs.org]
IFRS 16 – Lease Liability in a Sale and Leaseback
Provides guidance on subsequent measurement of lease liabilities arising from sale and leaseback transactions.
IAS 7 & IFRS 7 – Supplier Finance Arrangements
Requires additional disclosures about supplier finance arrangements to improve transparency of liquidity risk.
IAS 12 – International Tax Reform (Pillar Two Model Rules)
Introduces temporary exception to deferred tax accounting for Pillar Two top-up taxes and related disclosures.
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CAPITAL CITY SERVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Basis of preparation (continued)
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2.2 Changes in accounting policies (continued)
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i) New standards, interpretations and amendments effective from 1 April 2024 (continued)
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The following tables summarise the impacts of adopting new accounting standards on the Company's financial statements.
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New standards, interpretations and amendments not yet effective
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IFRS 18 – Presentation and Disclosure in Financial Statements
A major new standard replacing IAS 1, effective 1 January 2027.
IFRS 19 – Subsidiaries without Public Accountability: Disclosures (effective 2027).
Amendments to IFRS 9 & IFRS 7 – Classification and Measurement of Financial Instruments (effective 2026).
Standards with effective date from 1 January 2025
AS 21 – Lack of Exchangeability
Adds guidance on determining exchange rates when a currency is not exchangeable into another currency, requiring estimation of spot rate and related disclosures
The director anticipates that the adoption of these Standards in future periods may have an impact on the results and net assets of the Company, however, it is too early to quantify this.
The director anticipates that the adoption of other Standards and interpretations that are not yet effective in future periods will only have an impact on the presentation in the financial statements of the Company.
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CAPITAL CITY SERVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
3.Accounting policies
Receivables are non-derivative assets with fixed or determinable payments that are not quoted on an active market. After initial measurement, receivables are subsequently carried at amortised cost using the effective interest method less any allowance for impairment. Short-term receivables with no stated interest rates are measured at original invoice amounts unless there is a significant impact resulting in application of an implied interest rate.
Amortised cost is calculated taking into account any discount or premium on acquisition and includes fees that are an integral part of the effective interest rate and transaction costs. Gains and losses are recognised in the Statement of profit or loss when the loans and receivables are derecognised or impaired, as well as through the amortisation process.
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Impairment of receivables
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The Company assesses at the end of each reporting period whether receivables are impaired.
If there is objective evidence that an impairment loss on receivables carried at amortised cost has been incurred, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the financial asset’s original effective interest rate (i.e. the effective interest rate computed at initial recognition). The carrying amount of the asset is reduced through use of an allowance account. The amount of the loss is recognised in the Statement of profit or loss.
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Property, plant and equipment
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Items of property, plant and equipment are measured at cost less accumulated depreciation and any accumulated impairment losses.
If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate items (major components) of property, plant and equipment. Any gain or loss on disposal of an item of property, plant and equipment is recognised in profit or loss. Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will flow to the Company.
Depreciation is provided on all other items of property, plant and equipment so as to write off their carrying value over their expected useful economic lives. It is provided at the following rates:
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Over 45 years straight line
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Long-term leasehold property
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Over 5 years straight line
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The carrying values of property, plant and equipment are reviewed for impairment if events or changes in circumstance indicate that the carrying value may not be recoverable, and are written down immediately to their recoverable amount. Useful lives and residual values are renewed annually and any anticipated impairment is provided in the financial statements.
An item of property, plant and equipment is derecognised on disposal or when no future economic benefits are expected to arise from continued use of the asset. Any gain or loss arising on the derecognition of the asset is included in the Statement of profit or loss in the period of derecognition.
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CAPITAL CITY SERVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
3.Accounting policies (continued)
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Cash and cash equivalents
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Cash and cash equivalents comprise cash on hand and demand deposits. For the purpose of the Statement of cash flows, cash and cash equivalents consist of cash and cash equivalents as defined above, net of any outstanding bank overdrafts.
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Financial liabilities and equity
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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.
Revenue represents amounts receivable for call termination services net of VAT and trade discounts. Revenue is recognised in the month the call services are made.
The charge for the current tax is based on the results for the year as adjusted for items which are non-assessable or disallowed. It is calculated using rates that have been enacted or substantively enacted by the end of the reporting period.
Deferred tax is accounted for using the balance sheet liability method in respect of temporary differences arising from differences between the carrying amount of assets and liabilities in the financial statements and the corresponding tax basis used in the computation of taxable profit. In principle, deferred tax liabilities are recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Deferred tax is calculated at the rates that are expected to apply when the asset or liability is settled. Deferred tax is charged or credited in the statement of comprehensive income, except when it relates to items credited or charged directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same taxation authority and the Company intends to settle its current tax assets and liabilities on a net basis.
In accordance with IAS 12, deferred tax assets and liabilities are not discounted.
Management of the Company has assessed the potential effect of implementation of the IFRS 16 ‘Leases’ will have no material effect on financial position and financial results of the Company in the current reporting period as the Company has no material non-cancellable long-term rent agreements as at the reporting date and has no intention to execute them in the next reporting period.
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CAPITAL CITY SERVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
3.Accounting policies (continued)
Transactions in a currency other than US Dollars (the functional and presentational currency of the Company) are translated into US Dollars at the exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in currencies other than US Dollars are, at the reporting date, retranslated at the spot exchange rate on that day. Exchange differences are recognised in profit or loss for the period.
Non-monetary assets and liabilities that are measured in terms of historic cost which are denominated in a currency other than US Dollars are translated using the exchange rate at the date of the transactions and are not subsequently retranslated.
Dividends are recognised when they become legally payable. In the case of interim dividends to equity shareholders, this is when declared by the directors. In the case of final dividends, this is when approved by the shareholders at the AGM.
Dividends on preference shares, which are classified as a financial liability, are treated as finance costs and are recognised on an accruals basis when an obligation exists at the reporting date.
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Functional and presentation currency
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These financial statements are presented in US dollars, which is the Company's functional currency. All amounts have been rounded to the nearest thousand, unless otherwise indicated.
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Accounting estimates and judgments
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The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.
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CAPITAL CITY SERVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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The following is an analysis of the Company's revenue for the year from continuing operations:
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Sale of telecommunication servicecs
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Timing of revenue recognition:
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Telecommunication services - in the period call services are made
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Analysis of revenue by country of destination:
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There were no employees during current and previous year.
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CAPITAL CITY SERVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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Depreciation of freehold property, long term leasehold property, plant &equipment
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Auditors' remuneration - tax compliance
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(Gain)/Loss on foreign exchange
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9.1 Income tax recognised in profit or loss
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Current tax on profits for the year
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The reasons for the difference between the actual tax charge for the year and the standard rate of corporation tax in the United Kingdom applied to profits for the year are as follows:
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Profit before income taxes
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Tax using the Company's domestic tax rate of 25% (2024:25%)
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Depreciation for the year in excess of capital allowances
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CAPITAL CITY SERVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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Property, plant and equipment
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Long-term leasehold property
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Long-term leasehold property
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Accumulated depreciation and impairment
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Charge owned for the year
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Charge owned for the year
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CAPITAL CITY SERVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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Trade and other receivables
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Prepayments and accrued income
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Total trade and other receivables
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The directors consider that the carrying amount of trade and other receivables approximates to their fair value. The Company had 20 days of revenue outstanding in trade receivables as at 31 March 2025 (2024: 10 days). Included within trade receivables is $1,442k (2024:$1,998k) denominated in other currencies.
The Company’s maximum exposure to credit risk equates to the carrying value of cash and cash equivalents and trade and other receivables.
Concentrations of credit risk with respect to customers are limited due to the company’s customer base being large and unrelated. Customers are assessed for credit worthiness and credit limits are also imposed on customers and reviewed regularly.
The Company’s credit risk is primarily attributable to trade receivables.
The Company has some concentrations of credit risk, with some exposure to large customers, however, the majority of the exposure is spread over a number of customers.
Provision of $376k (2024: $440k) has been made in these financial statement for potentially irrecoverable debts.
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CAPITAL CITY SERVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
11.Trade and other receivables (continued)
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Ageing of impaired trade receivables:
The company applies the IFRS 9 simplified model of recognising lifetime expected credit losses for all trade receivables as these items do not have a significant financing component.
In measuring the expected credit losses, the trade receivables have been assessed on a collective basis as they possess shared credit risk characteristics. They have been grouped based on the days past due.
The expected loss rates are based on the payment profile for income over the past 14 months before 31 March 2025 and 31 March 2024 respectively as well as the corresponding historical credit losses during that period. The historical rates are adjusted to reflect current and forwarding looking macroeconomic factors affecting the customer’s ability to settle the amount outstanding. The company has identified the economical factors which would impact on the liquidity of the customers' assets and accordingly adjusts historical loss rates for expected changes in these factors. However, given the short period exposed to credit risk, the impact of these macroeconomic factors has not been considered significant within the reporting period.
Trade receivables are written off (i.e.: derecognised) when there is no reasonable expectation of recovery.
On the above basis the expected credit loss for trade receivables as at 31 March 2025 and 31 March 2024 was determined as represented in the "Trade receivables days past due" tables below.
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Movements in the impairment allowance for trade receivables are as follows:
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CAPITAL CITY SERVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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Movements in the impairment allowance for receivables from contracts with customers are as follows:
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31 March 2025 Trade receivables days past due
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Lifetime expected credit loss
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31 March 2024 Trade receivables days past due
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Lifetime expected credit loss
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CAPITAL CITY SERVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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Total financial liabilities, excluding loans and borrowings, classified as financial liabilities measured at amortised cost
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Other payables - tax and social security payments
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Total trade and other payables
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The carrying value of trade and other payables classified as financial liabilities measured at amortised cost approximates fair value.
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Included within trade payables is $4,066k (2024: $3,951k) denominated in other currencies.
The Company operates in a number of markets across the world and is exposed to currency exchange risk arising from various currency exposures in particular with regard to Euro, Sterling and Moldovan Leu.
The Company is exposed to currency exchange risk arising from the recognised assets and liabilities as well as commitments arising from future trade transactions. Although the countries that the Company trades with have relatively stable economies, management has set up a policy which requires management of its foreign exchange risk against its functional currency by closely monitoring spot rate to balance inflows and outflows.
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Ordinary shares shares of $1.00 each
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Ordinary shares shares of $1.00 each
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CAPITAL CITY SERVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
Retained earnings
The retain earnings reserve represents the accumulated reserves for the company.
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Related party transactions
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During the year ended 31 March 2025, a director received rent of $87K (2024: $85K) in relation of properties occupied by the Company. The transactions were undertaken on an arm's length basis. Included in trade payables at the reporting date is an amount of $7K (2024: $143K). Included in other creditors is an amount $7K (2024:$7K). During the year ended 31 March 2025 the company paid consultancy fees to a director of $162K (2024: $385K). Included in other debtors is a loan receivable of Nil (2024:$1,311K).
During the year ended 31 March 2025, a member of the close family of a director received consultancy fees of $104K (2024: $216K).The transaction was undertaken on an arm's length basis. Included in trade payables at the reporting date is an amount of $20K (2024: $27K).
During the year ended 31 March 2025, a company in which a close family member of a director has significant influence received consultancy fees of $147K (2024: $245K). Included in payables at the reporting date is an amount of $6K (2024: $77K).
During the year ended 31 March 2025, sales were made to a company in which a close family member of a director has significant influence of $20,649K (2024: $35,113K) and purchases of $20,978K (2024: $35,422K) were incurred. Included in creditors at the reporting date is an amount of $1,988K (2024: $1,465K).
During the year ended 31 March 2025, sales were made to a company in which a close family member of director has significant influenceof $417K (2024:$311K) and purchases of $421K (2024:$149K) were incurred. Included in receivables at the reporting date is an amount of $388K (2024:$307K) and Nil in prepayments (2024:$20K). Included in payables at the reporting date is an amount of $Nil (2024:$21K).
During the year ended 31 March 2025, purchases incurred in amount of $675K (2024: $974k) from a companies in which a close family of a director has significant influence. Included in payables is an amount of $974K (2024: $1,223K).
During the year ended 31 March 2025, a member of the close family of a director received consultancy fees of Nil (2024: $165K).The transaction was undertaken on an arm's length basis.
During the year dividends of $650K (2024:$1,395K) were paid to the director. A final dividend in respect of the year ended 31 March 2025 of $13 per share.
Alexandru Taracanov is the ultimate controlling party.
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CAPITAL CITY SERVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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Notes supporting statement of cash flows
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Cash at bank available on demand
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Cash and cash equivalents in the statement of financial position
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Cash and cash equivalents in the statement of cash flows
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