Serviont Global Solutions (Europe) Ltd - Accounts to registrar (filleted) - small 23.2.5

REGISTERED NUMBER: 07631109 (England and Wales)

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2023

FOR

SERVIONT GLOBAL SOLUTIONS (EUROPE)

LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

Mr Subbaraman Subramani

Mr Prakash Arunachalam

Mr Balaji Narasimhan

REGISTERED OFFICE:

1 Doughty Street

London

WC1N 2PH

REGISTERED NUMBER:

07631109 (England and Wales)

AUDITORS:

PSJ Alexander & Co

Chartered Accountants & Statutory Auditors

1 Doughty Street

London

WC1N 2PH

BANKERS:

HSBC Bank PLC

1-2 Market Place

Wokingham

Berkshire

RD40 1AL

FIXED ASSETS

Tangible assets

4

-

44,937

CURRENT ASSETS

Debtors

5

3,870,634

3,664,551

Prepayments and accrued income

287,242

761,431

Cash at bank

187,861

238,860

4,345,737

4,664,842

CREDITORS

Amounts falling due within one year

6

5,952,607

5,720,388

NET CURRENT LIABILITIES

(1,606,870

)

(1,055,546

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(1,606,870

)

(1,010,609

)

CREDITORS

Amounts falling due after more than one year

7

24,178

37,021

NET LIABILITIES

(1,631,048

)

(1,047,630

)

CAPITAL AND RESERVES

Called up share capital

9

100

100

Retained earnings

10

(1,631,148

)

(1,047,730

)

SHAREHOLDERS' FUNDS

(1,631,048

)

(1,047,630

)

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 28th March 2024 and were signed on its behalf by:

Mr Subbaraman Subramani - Director

1.	STATUTORY INFORMATION

Serviont Global Solutions (Europe) Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The Company's place of business is the United Kingdom.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the company and that the revenue can be reliably measured. The following recognition criteria must also be met before turnover is recognised:

-

Turnover from time and material contracts are recognised as related services are performed.

-

Turnover from fixed price contracts are recognised in accordance with the percentage completion method.

-

Turnover from managed service contracts are recognised in accordance with the terms of the contract over the period in which the services are rendered. Turnover from annual maintenance contracts rendered by the company are recognised on a pro-rata basis over the period in which such services are to be rendered.

-

Turnover from sale of third-party software are recognised when significant risks and rewards of ownership of the software are passed onto the buyer, which generally coincide with the installation of the software on the customers' servers.

Turnover is stated net of value-added tax.

Accrued income

Where a contract has only been partially completed at the balance sheet date, turnover includes the value of services provided to date based on a proportion of the total expected consideration at completion. The corresponding figure is shown as accrued income.

Deferred Income

Deferred Income represents billings in excess of turnover in case of ongoing fixed price and time and material contracts wherein amounts have been billed in accordance with the billing cycle and efforts to supply the service would be incurred subsequent to the year-end.

Tangible fixed assets

Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses.

Where parts of an item of tangible fixed assets have different useful lives, they are accounted for as separate items of tangible fixed assets.

Depreciation is charged to the profit and loss account on reducing balance method of each part of an item of tangible fixed assets

Plant and machinery - 20% reducing balance, 3 years straight line, 6 years straight line and 10 years straight line

Depreciation methods, useful lives and residual values are reviewed if there is an indication of a significant change since last annual reporting date in the pattern by which the company expects to consume an asset's future economic benefits.

Basic financial instruments

Trade and other debtors / creditors

Trade and other debtors are recognised initially at transaction price less attributable transaction costs. Trade and other creditors are recognised initially at transaction price plus attributable transaction costs..

Cash and cash equivalents

Cash and cash equivalents comprise cash balances.

Hire purchase and leasing commitments

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

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Provisions

A provision is recognised in the balance sheet when the Company has a present legal or constructive obligation as a result of a past event, that can be reliably measured and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are recognised at the best estimate of the amount required to settle the obligation at the reporting date.

Where the Company enters into financial guarantee contracts to guarantee the indebtedness of other companies within its group, the company treats the guarantee contract as a contingent liability until such time as it becomes probable that the company will be required to make a payment under the guarantee.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Operating lease

Payments (excluding costs for services and insurance) made under operating leases are recognised in the profit and loss account on a straight-line basis over the term of the lease unless the payments to the lessor are structured to increase in line with expected general inflation; in which case the payments related to the structured increases are recognised as incurred. Lease incentives received are recognised in profit and loss over the term of the lease as an integral part of the total lease expense.

Going concern

The company had net current liabilities of £1,606,870 (2022: £1,055,546) and net liabilities of £1,631,048 (2022: £1,047,630) as at 31 March 2023. The company also derives a significant proportion of its business from few customers. The directors have assessed the going concern risks to the company and have concluded that:

-

the company's ultimate parent, Servion Global Solutions Pvt Ltd, has indicated its intention to continue to make available such funds as are needed by the company for at least 15 months from the date of approval of these financial statements.

-

the company provides specialist software and expertise for call centres. This is niche market and the Company faces very little competition in this market segment.

-

the Company had a good and stable commercial relationship with its customers for a number of years. The directors are confident that this will continue in the immediate future.

The Company is dependent on Servion Global Solutions Pvt Ltd for providing additional financial support. As with any company placing reliance on other group entities for financial support, the directors acknowledge that there can be no certainty that this support will continue although, at the date of approval of these financial statements, the directors have no reason to believe that it will not do so. The ability of Servion Global Solutions Pvt Ltd to continue to provide this support is dependent on its financial position and operational performance.

Based on these indications, the directors believe that it remains appropriate to prepare the financial statements on a going concern basis. However, these circumstances represent a material uncertainty that may cast significant doubt on the company's ability to continue as a going concern and, therefore, to continue realising the company's assets and discharging the company's liabilities in the normal course of business. The financial statements do not include any adjustments that would result from the basis of preparation being inappropriate.

Government grants

Government grants are recognised when it is reasonable to expect that the grants will be received and that all related conditions will be met, usually on submission of a valid claim for payment.

Government grants in respect of capital expenditure are credited to a deferred income account and are released to profit over the expected useful lives of the relevant assets by equal annual instalments.

Grants of a revenue nature are credited to income so as to match them with the expenditure to which they relate.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 9 (2022 - 16 ) .

4.	TANGIBLE FIXED ASSETS

Plant and

machinery

£

COST

At 1st April 2022

178,167

Disposals

(178,167

)

At 31st March 2023

-

DEPRECIATION

At 1st April 2022

133,230

Charge for year

13,614

Eliminated on disposal

(146,844

)

At 31st March 2023

-

NET BOOK VALUE

At 31st March 2023

-

At 31st March 2022

44,937

5.

DEBTORS

2023

2022

£

£

Amounts falling due within one year:

Trade debtors

733,638

245,816

Amounts owed by group undertakings

3,136,593

3,160,797

Other debtors

403

257,535

3,870,634

3,664,148

Amounts falling due after more than one year:

Other debtors

-

403

Aggregate amounts

3,870,634

3,664,551

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023

2022

£

£

Bank loans and overdrafts

9,845

6,667

Trade creditors

395,340

254,100

Amounts owed to group undertakings

4,159,336

4,177,096

Taxation and social security

176,779

72,455

Other creditors

1,211,307

1,210,070

5,952,607

5,720,388

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2023

2022

£

£

Bank loans

24,178

37,021

8.	SECURED DEBTS

The following secured debts are included within creditors:

2023

2022

£

£

Bank loans

34,023

43,688

The bank loan is guaranteed by the UK Government under the Bounce Back Loan Scheme.

9.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2023

2022

value:

£

£

100

Ordinary

£1

100

100

10.

RESERVES

Retained

earnings

£

At 1st April 2022

(1,047,730

)

Deficit for the year

(583,418

)

At 31st March 2023

(1,631,148

)

11.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Vimal Shah (Senior Statutory Auditor)

for and on behalf of PSJ Alexander & Co

Our audit report also includes the following:

We draw attention to note 2 to the financial statements which states that the Company is reliant on the financial and other support from its parent undertaking so that it can continue as a going concern. This indicates a material uncertainty that may cast significant doubt on the company's ability to continue as going concern. Our opinion is not modified in respect of this matter.

12.	RELATED PARTY DISCLOSURES

The Company undertook the following transactions with other group entities during the year:

2023

2022

£

£

Net opening balances

(1,016,299

)

(1,061,969

)

Revenue from group entities

94,656

188,997

Costs recharges from group entities

(741,110

)

(409,545

)

Expenses incurred by group entities on behalf of Company

(771,566

)

(80,724

)

Expenses incurred by Company on behalf of group entities

-

118,463

Payments to group entities

1,933,095

490,114

Receipts from group entities

(464,000

)

(51,197

)

Foreign exchange gain/(loss)

(57,519

)

(210,437

)

Net closing balances payable to group entities

(1,022,743

)

(1,016,299

)

The Indian parent company has provided a guarantee to Serviont Global Solutions (Europe) Limited that it will reimburse any losses made by the latter in respect of group debit balances totalling £329,061 (2022: £387,302). The Indian parent company is also providing financial support to the Company so that it remains a going concern.

13.	POST BALANCE SHEET EVENTS

Everstone Capital, the private equity which owned Serviont Group of companies through Evertech Holdings Pte. Ltd, sold its entire stake to EMK Funds on 27th October 2023.

14.	ULTIMATE CONTROLLING PARTY

The immediate parent company is Serviont Global Solutions Pte. Limited, a company incorporated and registered in Singapore, which is wholly owned by Serviont Global Solutions Pvt. Limited, a company incorporated and registered in India.

The ultimate parent undertaking as at 31st March 2023 was Everstone Capital, a private equity, which held its 100% stake in Servion Group through Evertech Holdings Pte. Limited, a company incorporated and registered in Singapore.

As from 27 October 2023, the ultimate parent entity is EMK Funds, a private equity, which holds its 100% stake in Servion Group through Cyan UK TopCo Limited.

The largest group in which the results of the Company for the year ended 31st March 2023 are consolidated is that headed by Serviont Global Solutions Private Limited,a company incorporated and registered in India. Its registered office address is Plot 4/600 & 4/197, 7th Street, Dr. VSI EstatePhase II, Thiruvanmiyur, Chennai, Tamil Nadu, India 600 041. The consolidated financial statements of the group entity are not available to the public.