ACCOUNTS - Final Accounts

An analysis of turnover by class of business is as follows:

TRANSPUTEC LIMITED - Company Information

Caseware UK (AP4) 2022.0.179 2022.0.179 2023-03-312023-03-31792022-04-01falsefalseNo description of principal activity71false 03443568 2022-04-01 2023-03-31 03443568 2021-04-01 2022-03-31 03443568 2023-03-31 03443568 2022-03-31 03443568 2021-04-01 03443568 1 2022-04-01 2023-03-31 03443568 1 2021-04-01 2022-03-31 03443568 5 2022-04-01 2023-03-31 03443568 5 2021-04-01 2022-03-31 03443568 d:CompanySecretary1 2022-04-01 2023-03-31 03443568 d:Director1 2022-04-01 2023-03-31 03443568 d:Director2 2022-04-01 2023-03-31 03443568 d:Director3 2022-04-01 2023-03-31 03443568 d:Director4 2022-04-01 2023-03-31 03443568 d:RegisteredOffice 2022-04-01 2023-03-31 03443568 e:MotorVehicles 2022-04-01 2023-03-31 03443568 e:MotorVehicles 2023-03-31 03443568 e:MotorVehicles 2022-03-31 03443568 e:MotorVehicles e:OwnedOrFreeholdAssets 2022-04-01 2023-03-31 03443568 e:FurnitureFittings 2022-04-01 2023-03-31 03443568 e:FurnitureFittings 2023-03-31 03443568 e:FurnitureFittings 2022-03-31 03443568 e:FurnitureFittings e:OwnedOrFreeholdAssets 2022-04-01 2023-03-31 03443568 e:OfficeEquipment 2022-04-01 2023-03-31 03443568 e:OfficeEquipment 2023-03-31 03443568 e:OfficeEquipment 2022-03-31 03443568 e:OfficeEquipment e:OwnedOrFreeholdAssets 2022-04-01 2023-03-31 03443568 e:OwnedOrFreeholdAssets 2022-04-01 2023-03-31 03443568 e:CurrentFinancialInstruments 2023-03-31 03443568 e:CurrentFinancialInstruments 2022-03-31 03443568 e:Non-currentFinancialInstruments 2023-03-31 03443568 e:Non-currentFinancialInstruments 2022-03-31 03443568 e:CurrentFinancialInstruments e:WithinOneYear 2023-03-31 03443568 e:CurrentFinancialInstruments e:WithinOneYear 2022-03-31 03443568 e:ReportableOperatingSegment1 2022-04-01 2023-03-31 03443568 e:ReportableOperatingSegment1 2021-04-01 2022-03-31 03443568 f:UnitedKingdom 2022-04-01 2023-03-31 03443568 f:UnitedKingdom 2021-04-01 2022-03-31 03443568 f:RestWorldOutsideUK 2022-04-01 2023-03-31 03443568 f:RestWorldOutsideUK 2021-04-01 2022-03-31 03443568 e:UKTax 2022-04-01 2023-03-31 03443568 e:UKTax 2021-04-01 2022-03-31 03443568 e:ShareCapital 2023-03-31 03443568 e:ShareCapital 2022-03-31 03443568 e:ShareCapital 2021-04-01 03443568 e:OtherMiscellaneousReserve 2023-03-31 03443568 e:OtherMiscellaneousReserve 2022-03-31 03443568 e:OtherMiscellaneousReserve 2021-04-01 03443568 e:RetainedEarningsAccumulatedLosses 2022-04-01 2023-03-31 03443568 e:RetainedEarningsAccumulatedLosses 2023-03-31 03443568 e:RetainedEarningsAccumulatedLosses 2021-04-01 2022-03-31 03443568 e:RetainedEarningsAccumulatedLosses 2022-03-31 03443568 e:RetainedEarningsAccumulatedLosses 2021-04-01 03443568 e:AcceleratedTaxDepreciationDeferredTax 2023-03-31 03443568 e:AcceleratedTaxDepreciationDeferredTax 2022-03-31 03443568 d:OrdinaryShareClass1 2022-04-01 2023-03-31 03443568 d:OrdinaryShareClass1 2023-03-31 03443568 d:OrdinaryShareClass1 2022-03-31 03443568 d:FRS102 2022-04-01 2023-03-31 03443568 d:Audited 2022-04-01 2023-03-31 03443568 d:FullAccounts 2022-04-01 2023-03-31 03443568 d:PrivateLimitedCompanyLtd 2022-04-01 2023-03-31 03443568 e:WithinOneYear 2023-03-31 03443568 e:WithinOneYear 2022-03-31 03443568 e:BetweenOneFiveYears 2023-03-31 03443568 e:BetweenOneFiveYears 2022-03-31 03443568 2 2022-04-01 2023-03-31 03443568 6 2022-04-01 2023-03-31 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 03443568

TRANSPUTEC LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

TRANSPUTEC LIMITED

COMPANY INFORMATION

Directors	A Sehgal
	S Sehgal
	M Nightingale
	S Salt


Company secretary	A Sehgal


Registered number	03443568


Registered office	Transputec House
	19 Heather Park Drive
	Wembley
	Middlesex
	HA0 1SS


Independent auditor	MHA
	Chartered Accountants & Statutory Auditors
	2 London Wall Place
	London
	EC2Y 5AU

TRANSPUTEC LIMITED

CONTENTS

	Page
Strategic Report	1 - 2
Directors' Report	3 - 4
Independent Auditor's Report	5 - 8
Statement of Comprehensive Income	9
Statement of Financial Position	10
Statement of Changes in Equity	11
Statement of Cash Flows	12
Analysis of Net Debt	13
Notes to the Financial Statements	14 - 27

TRANSPUTEC LIMITED

STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2023

Introduction

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

Business review

The year under review shows gross profit and turnover remaining steady when compared to the year ended 31 March 2023. The Directors are satisfied with the results for the year which reflects trading conditions pre-lockdown.
Despite a still challenging economic and industry environment, the directors remain cautiously optimistic about
the future. The directors have taken the opportunity to invest in business transformation after a review of the
company's systems. The Company has strong foundations and reviews risk on a regular basis and this has enabled them to mitigate the industry-wide difficulties.
The Directors plan to expand the group's business base through organic expansion, acquisitions and mergers
over the forthcoming years. The Group has a branch office based in Germany and the Directors are satisfied with its performance to date.

Principal risks and uncertainties

The Directors have reviewed the key risks to which the Company is exposed together with the operating and financial controls which are in place to mitigate those risks. The main risks are as follows:-
Competition
The Directors consider that the Company can compete effectively in the current environment in its target market. The Company's ability to stabilise costs in a competitive environment will protect it against competition to gain market share. The Company will continue to compete on the basis of quality and service rather than price.
Bad debts
The uncertain economic climate continues to give rise to a higher than usual bad debt risk. The Directors seek to mitigate this by adherence to the Company's robust credit control procedures.
Foreign exchange
The Company is exposed to adverse exchange rate movements, particularly in the current political climate following Brexit. The Directors seek to manage this as far as possible through the application of existing forex mitigation strategies. Although this is not an absolute guarantee, the risk can be effectively managed.
IT Security
The Directors attach high priority to managing the risks posed by IT security breaches, including a review of cybersecurity and General Data Protection Regulation (GDPR) compliance.

Financial key performance indicators

These are considered to be turnover, gross profit and net profit and those are discussed above in the business review. These were as follows:
Turnover (2023 - £23.3m; 2022 - £23.5m)
Gross margin (2023 - 25.7%; 2022 - 26.0%)
Operating margin (2023 - 4.3%; 2022 - 6.0%)

Page 1

TRANSPUTEC LIMITED

STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

Other key performance indicators

The main non-financial key performance indicator is considered to be customer satisfaction. This is under constant review and the directors are satisfied that this is at an acceptable level.

This report was approved by the board on 11 March 2024 and signed on its behalf.

A Sehgal

Director

Page 2

TRANSPUTEC LIMITED

DIRECTORS' REPORT

FOR THE YEAR ENDED 31 MARCH 2023

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

Results and dividends

The profit for the year, after taxation, amounted to £1,096,314 (2022 - £1,249,632).

The directors will continue to build the group's commitment to its research and development programme, which they consider an investment into its future.

Directors

The directors who served during the year were:

A Sehgal

S Sehgal

M Nightingale

S Salt

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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:

∙select suitable accounting policies for the Company's financial statements and then apply them consistently;

∙make judgments and accounting estimates that are reasonable and prudent;

∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 3

TRANSPUTEC LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

Matters included in the Strategic Report

In accordance with section 414c (ii) of the Companies Act 2006 the Directors have chosen to include the following items in the Strategic Report:
- Strategy of the Company
- Risks and performance
- Future developments

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:

∙so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware, and

∙the director 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 auditor is aware of that information.

This report was approved by the board on 11 March 2024 and signed on its behalf.

A Sehgal

Director

Page 4

TRANSPUTEC LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF TRANSPUTEC LIMITED

Opinion

We have audited the financial statements of Transputec Limited (the 'Company') for the year ended 31 March 2023, which comprise the Statement of Comprehensive Income, 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. 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:

∙give a true and fair view of the state of the Company's affairs as at 31 March 2023 and of its profit for the year then ended;

∙have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

∙have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Page 5

TRANSPUTEC LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF TRANSPUTEC LIMITED (CONTINUED)

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.

Opinion on other matters prescribed by the Companies Act 2006

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

∙the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

∙the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

∙adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

∙the financial statements are not in agreement with the accounting records and returns; or

∙certain disclosures of directors' remuneration specified by law are not made; or

∙we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Directors' Responsibilities Statement set out on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

Page 6

TRANSPUTEC LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF TRANSPUTEC LIMITED (CONTINUED)

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.

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:

•Enquiry of management, those charged with governance around actual and potential litigation and claims;
•Enquiry of entity staff in compliance functions to identify any instances of non-compliance with laws and
regulations;
•Performing audit work over the risk of management override of controls, including testing of journal entries and
other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the
normal course of business and reviewing accounting estimates for bias;
•Reviewing minutes of meetings of those charged with governance;
•Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with
applicable laws and regulations.

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.

Page 7

TRANSPUTEC LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF TRANSPUTEC LIMITED (CONTINUED)

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.

Rajeev Shaunak FCA (Senior Statutory Auditor)

for and on behalf of

MHA

Chartered Accountants

Statutory Auditors

London, United Kingdom

20 March 2024

Page 8

TRANSPUTEC LIMITED

STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 MARCH 2023

	2023	2022
Note	£	£

Turnover	4	23,348,380	23,474,484
Cost of sales		(17,341,924)	(17,366,935)
Gross profit		6,006,456	6,107,549
Administrative expenses		(5,077,360)	(4,760,398)
Other operating income	5	84,813	70,971
Operating profit	6	1,013,909	1,418,122
Interest receivable and similar income	10	58,718	26,054
Profit before tax		1,072,627	1,444,176
Tax on profit	11	23,687	(194,544)
Profit for the financial year		1,096,314	1,249,632

There was no other comprehensive income for 2023 (2022:£NIL).

The notes on pages 14 to 27 form part of these financial statements.

Page 9

TRANSPUTEC LIMITED

REGISTERED NUMBER: 03443568

STATEMENT OF FINANCIAL POSITION

AS AT 31 MARCH 2023

		2023		2022
Note		£		£

Fixed assets
Tangible assets	12		92,934		70,488
Investments	13		62,657		62,657
			155,591		133,145
Current assets
Stocks	14	33,215		276,376
Debtors	15	5,287,746		4,912,971
Cash at bank and in hand	16	6,898,950		6,751,812
		12,219,911		11,941,159
Creditors: amounts falling due within one year	17	(2,814,181)		(3,617,797)
Net current assets			9,405,730		8,323,362
Total assets less current liabilities			9,561,321		8,456,507
Provisions for liabilities
Deferred tax	18	(12,000)		(3,500)
			(12,000)		(3,500)
Net assets			9,549,321		8,453,007

Capital and reserves
Called up share capital	19	10	10
Other reserves	20	100,000	100,000
Profit and loss account	20	9,449,311	8,352,997
		9,549,321	8,453,007

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 11 March 2024.

A Sehgal

Director

The notes on pages 14 to 27 form part of these financial statements.

Page 10

TRANSPUTEC LIMITED

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 MARCH 2023

	Called up share capital	Other reserves	Profit and loss account	Total equity
	£	£	£	£
At 1 April 2021	10	100,000	7,103,365	7,203,375
Comprehensive income for the year
Profit for the year	-	-	1,249,632	1,249,632

At 1 April 2022	10	100,000	8,352,997	8,453,007
Comprehensive income for the year
Profit for the year	-	-	1,096,314	1,096,314
At 31 March 2023	10	100,000	9,449,311	9,549,321

The notes on pages 14 to 27 form part of these financial statements.

Page 11

TRANSPUTEC LIMITED

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2023

			2023	2022
			£	£

Cash flows from operating activities
Profit for the financial year	1,096,314	1,249,632
Adjustments for:
Depreciation of tangible assets	56,723	47,392
Interest received	(58,718)	(26,054)
Taxation charge	(23,687)	194,544
Decrease in stocks	243,161	54,929
(Increase)/decrease in debtors	(417,853)	1,938,737
(Decrease) in creditors	(712,117)	(977,845)
Corporation tax paid	(16,234)	(182,421)
Net cash generated from operating activities	167,589	2,298,914

Cash flows from investing activities
Purchase of tangible fixed assets	(79,169)	(15,826)
Interest received	58,718	26,054
Net cash from investing activities	(20,451)	10,228

Net increase in cash and cash equivalents	147,138	2,309,142
Cash and cash equivalents at beginning of year	6,751,812	4,442,670
Cash and cash equivalents at the end of year	6,898,950	6,751,812

Cash and cash equivalents at the end of year comprise:
Cash at bank and in hand	6,898,950	6,751,812
	6,898,950	6,751,812

The notes on pages 14 to 27 form part of these financial statements.

Page 12

TRANSPUTEC LIMITED

ANALYSIS OF NET DEBT

FOR THE YEAR ENDED 31 MARCH 2023


At 1 April 2022	Cash flows	At 31 March 2023
£	£	£

Cash at bank and in hand	6,751,812	147,138	6,898,950
	6,751,812	147,138	6,898,950

The notes on pages 14 to 27 form part of these financial statements.

Page 13

TRANSPUTEC LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

1.	General information

Transputec Limited is a private company limited by shares incorporated in England and Wales. The registered office of the company and its trading address is Transputec House, 19 Heather Park Drive, Wembley, Middlesex HA0 1SS.
The company's principal activity is computer consulting, software development and retailing.
The financial statements have been rounded to the nearest pound.

2.Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

2.2

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

Page 14

TRANSPUTEC LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

∙the Company has transferred the significant risks and rewards of ownership to the buyer;

∙the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

∙the amount of revenue can be measured reliably;

∙it is probable that the Company will receive the consideration due under the transaction; and

∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

∙the amount of revenue can be measured reliably;

∙it is probable that the Company will receive the consideration due under the contract;

∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and

∙the costs incurred and the costs to complete the contract can be measured reliably.

2.4

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

2.5

Interest income

Interest income is recognised in profit or loss using the effective interest method.

Page 15

TRANSPUTEC LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

2.6

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.

2.7

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:

∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

2.8

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 16

TRANSPUTEC LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

2.8

Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on the basis detailed below:.

Depreciation is provided on the following basis:

Motor vehicles	-	25%	reducing balance
Fixtures and fittings	-	15%	straight line
Office equipment	-	33%	straight line

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.

2.9

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in unlisted Company shares, whose market value can be reliably determined, are remeasured to market value at each reporting date. Gains and losses on remeasurement are recognised in the Statement of Comprehensive Income for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

Investments in listed company shares are remeasured to market value at each reporting date. Gains and losses on remeasurement are recognised in profit or loss for the period.

2.10

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

2.11

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Page 17

TRANSPUTEC LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

2.12

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

2.13

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

2.14

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the reporting date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Statement of Financial Position.

2.15

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

Investments in non-derivative instruments that are equity to the issuer are measured:

∙at fair value with changes recognised in the Statement of Comprehensive Income if the shares are publicly traded or their fair value can otherwise be measured reliably;

∙at cost less impairment for all other investments.

Page 18

TRANSPUTEC LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

2.15

Financial instruments (continued)

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the reporting date.

Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Position when there is an 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.

3.	Judgments in applying accounting policies and key sources of estimation uncertainty

The key judgment in applying accounting policies relates to revenue recognition. Where contracts are billed in advance of their completion or in stages an adjustment is made to accrue or defer income. This assessment is based on the element of the work that has been performed at that stage. In respect of maintenance contracts the deferral is assessed on a time basis.

Page 19

TRANSPUTEC LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

Computer consulting, software and retailing	23,348,380	23,474,484
	23,348,380	23,474,484

Analysis of turnover by country of destination:

					2023	2022
					£	£

United Kingdom	18,365,331	19,300,838
Rest of the world	4,983,049	4,173,646
	23,348,380	23,474,484

5.	Other operating income
		2023	2022
		£	£

Rents receivable	84,813	70,971
	84,813	70,971

Depreciation	56,723	47,392
Exchange differences	(163,142)	(10,175)
Other operating lease rentals	291,761	293,777

Page 20

TRANSPUTEC LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023


Fees payable to the Company's auditor for the audit of the Company's financial statements	15,000	14,700
	15,000	14,700

					2023	2022
					£	£

Fees payable to the Company's auditor in respect of:
Taxation compliance services	1,400	1,350
Other services relating to taxation	3,500	3,500
	4,900	4,850

Wages and salaries	3,201,111	3,085,038
Social security costs	453,797	470,782
Cost of defined contribution scheme	179,731	162,307
	3,834,639	3,718,127

The average monthly number of employees, including the directors, during the year was as follows:

	2023	2022
	No.	No.

Administrative staff	6	6
Sales and technical staff	73	65

	79	71

Page 21

TRANSPUTEC LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

9.	Directors' remuneration
		2023	2022
		£	£

Directors' emoluments	422,200	508,489
	422,200	508,489

	During the year retirement benefits were accruing to 4 directors (2022 - 4) in respect of defined contribution pension schemes.
	The highest paid director received remuneration of £128,650 (2022 - £163,200).
	The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £9,000 (2022 - £9,000).

10.	Interest receivable
		2023	2022
		£	£

	Bank interest receivable	58,718	26,054
		58,718	26,054

Page 22

TRANSPUTEC LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

Corporation tax
Current tax on profits for the year	225,000	300,000
Adjustments in respect of previous periods	(257,187)	(102,456)
	(32,187)	197,544

Total current tax	(32,187)	197,544

Deferred tax
Origination and reversal of timing differences	5,500	(3,000)
Changes to tax rates	3,000	-
Total deferred tax	8,500	(3,000)


	Tax on profit	(23,687)	194,544

Profit on ordinary activities before tax

1,072,627

1,444,176

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2022 - 19%)	203,799	274,393
Effects of:
Expenses not deductible for tax purposes, other than goodwill amortisation and impairment	26,701	8,144
Capital allowances for year in excess of depreciation	-	14,463
Adjustments to tax charge in respect of prior periods	(257,187)	(102,456)
Changes to tax rates	3,000	-
Total tax charge for the year	(23,687)	194,544

Page 23

TRANSPUTEC LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

11.Taxation (continued)

Factors that may affect future tax charges

An increase in the UK Corporation Tax rate from 19% to 25% was substantively enacted in March 2021 and will take effect from 1 April 2023.

12.	Tangible fixed assets

	Motor vehicles	Fixtures and fittings	Office equipment	Total
	£	£	£	£
Cost or valuation
At 1 April 2022	79,417	364,991	1,102,229	1,546,637
Additions	-	-	79,169	79,169
At 31 March 2023	79,417	364,991	1,181,398	1,625,806
Depreciation
At 1 April 2022	33,108	364,991	1,078,050	1,476,149
Charge for the year on owned assets	18,000	-	38,723	56,723
At 31 March 2023	51,108	364,991	1,116,773	1,532,872
Net book value
At 31 March 2023	28,309	-	64,625	92,934
At 31 March 2022	46,309	-	24,179	70,488

13.	Fixed asset investments

		Unlisted investments
		£
	Cost or valuation
	At 1 April 2022	62,657
	At 31 March 2023	62,657

Page 24

TRANSPUTEC LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

14.	Stocks
		2023	2022
		£	£

Finished goods and goods for resale	33,215	276,376
	33,215	276,376

15.

Debtors

					2023	2022
					£	£

Due after more than one year
Other debtors	754,326	754,326
	754,326	754,326
Due within one year
Trade debtors	4,171,028	3,480,145
Other debtors	236,789	290,068
Prepayments and accrued income	125,603	388,432
	5,287,746	4,912,971

16.	Cash and cash equivalents
		2023	2022
		£	£

Cash at bank and in hand	6,898,950	6,751,812
	6,898,950	6,751,812

Page 25

TRANSPUTEC LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

17.	Creditors: Amounts falling due within one year
		2023	2022
		£	£

Trade creditors	1,903,046	2,355,676
Corporation tax	181,922	273,421
Other taxation and social security	411,506	204,534
Other creditors	2,775	2,775
Accruals and deferred income	314,932	781,391
	2,814,181	3,617,797

18.	Deferred taxation

		2023
		£

	At beginning of year	3,500
	Charged to profit or loss	8,500
	At end of year	12,000

The provision for deferred taxation is made up as follows:
	2023	2022
	£	£

	Accelerated capital allowances	12,000	3,500
		12,000	3,500

19.	Share capital
		2023	2022
		£	£

Allotted, called up and fully paid

10 (2022 - 10) ordinary shares of £1 each	10	10

Page 26

TRANSPUTEC LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

20.

Reserves

Profit and loss account

This represents the amount of accumulated retained profits.

21.	Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £162,307 (2022 - £162,307). Contributions totalling £nil (2022 - £nil) were payable to the fund at the reporting date.

Not later than 1 year	193,606	180,000
Later than 1 year and not later than 5 years	79,538	256,500
	273,144	436,500

23.

Related party transactions

At the year end an amount of £64,497 (2022: £79,600) was owed by A Sehgal. Interest was charged on this at 4% and the loan is repayable on demand. As at the year end, this balance was included within other debtors.
Interest of £16,667 (2022: £16,667) was payable to Transputec Development Limited, a company with common Directors and shareholders. As at the year end Transputec Development Limited owed the Company £914,845 (2022: £898,178).
Fees of £250,000 (2022: £235,441) were receivable by the Company from Crises Control Limited, a company with common Directors and shareholders. As at the year end Crises Control Limited owed the Company £760,267 (2022: £664,728).
The amount paid by the Company in respect of key management personnel was £481,812 (2022: £545,298).

Page 27