Registered number: 09943245
RIGHTINDEM LIMITED
UNAUDITED
FINANCIAL STATEMENTS
INFORMATION FOR FILING WITH THE REGISTRAR
FOR THE YEAR ENDED 30 JUNE 2023
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RIGHTINDEM LIMITED
REGISTERED NUMBER:09943245
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BALANCE SHEET
AS AT 30 JUNE 2023
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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RIGHTINDEM LIMITED
REGISTERED NUMBER:09943245
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BALANCE SHEET (CONTINUED)
AS AT 30 JUNE 2023
The directors consider that the Company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the Company to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 4 to 13 form part of these financial statements.
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STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023
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At 1 July 2021 (as previously stated)
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At 1 July 2021 (as restated)
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Shares issued during the year
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At 1 July 2022 (as previously stated)
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At 1 July 2022 (as restated)
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Shares issued during the year
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The notes on pages 4 to 13 form part of these financial statements.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
RightIndem Limited is a private company, limited by shares, domiciled and incorporated in England and Wales (registered number: 09943245). The registered office address is Office 811 One Lime Street, London, England, EC3M 7DQ .
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The following principal accounting policies have been applied:
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Exemption from preparing consolidated financial statements
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The Company, and the Group headed by it, qualify as small as set out in section 383 of the Companies Act 2006 and the parent and Group are considered eligible for the exemption to prepare consolidated accounts.
The financial statements have been prepared on a going concern basis.
The directors have indicated their continued support for the business and have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future, being at least the next 12 months from signing of these financial statements.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
2.Accounting policies (continued)
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Foreign currency translation
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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'.
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:
Revenue from a claims handling contracts are 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;
- the costs incurred and the costs to complete the contract can be measured reliably.
Interest income is recognised in profit or loss using the effective interest method.
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
2.Accounting policies (continued)
All borrowing costs are recognised in profit or loss in the year in which they are incurred.
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Intangible assets - Development costs
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Development costs are capitalised within intangible assets where they can be identified with a specific product or project anticipated to produce future benefits, and are amortised on a straight-line basis over the anticipated life of the benefits arising from the completed product or project.
Where intangible assets are acquired by RightIndem Limited from third parties the costs of acquisition are capitalised. They are amortised from the point at which the are available for use, over their estimated useful lives.
Estimated useful lives for intangible fixed assets are 5 years.
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.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Investments in subsidiaries are measured at cost less accumulated impairment.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
2.Accounting policies (continued)
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 Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.
A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the balance sheet and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the balance sheet.
Financial assets and financial liabilities are recognised in the Balance Sheet when the Company
becomes a party to the contractual provisions of the instrument.
Trade and other debtors and creditors are classified as basic financial instruments and measured on initial recognition at transaction price. Debtors and creditors are subsequently measured at amortised cost using the effective interest rate method. A provision is established when there is objective evidence that the Company will not be able to collect all amounts due.
Cash and cash equivalents are classified as basic financial instruments and comprise cash in hand and at bank, short-term bank deposits with an original maturity of three months or less and bank overdrafts which are an integral part of the Company’s cash management.
Financial liabilities and equity instruments issued by the Company are classified in accordance with the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument. An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities. Equity instruments issued by the Company are recorded at the proceeds received, net of direct issue costs.
Interest bearing bank loans, overdrafts and other loans which meet the criteria to be classified as
basic financial instruments are initially recorded at the present value of cash payable to the bank,
which is ordinarily equal to the proceeds received net of direct issue costs. These liabilities are
subsequently measured at amortised cost, using the effective interest rate method.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
2.Accounting policies (continued)
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 balance sheet date in the countries where the Company operates and generates income.
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The average monthly number of employees, including directors, during the year was 12 (2022 - 14).
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
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Charge for the year on owned assets
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
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Charge for the year on owned assets
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Creditors: Amounts falling due within one year
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Other taxation and social security
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Accruals and deferred income
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Included in other creditors are convertible loan notes with various maturity dates. The loan notes have an interest rate of 8% per annum.
The bank loan is secured by a government backed guarantee.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
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Creditors: Amounts falling due after more than one year
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Included in other creditors at 30 June 2022 were convertible loan notes with maturity dates of February 2024 and an interest rate of 8%. The loan notes were converted to shares in August 2022.
The bank loan is secured by a government backed guarantee.
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Analysis of the maturity of loans is given below:
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Amounts falling due within one year
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Amounts falling due 1-2 years
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Amounts falling due 2-5 years
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The company has tax losses carried forward of £6,108,736 (2022: £5,932,554) available for relief against future profits of the business. No deferred tax asset has been recognised in respect of these losses as their recoverability is uncertain.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
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Allotted, called up and fully paid
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3,232,754 (2022 - 2,858,831) Ordinary shares of £0.001 each
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500,000 (2022 - 500,000) Deferred shares of £0.001 each
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On the 4 August 2022 the Company issued 120,536 Ordinary shares of £0.001 each for a total consideration of £540,001, resulting in share premium of £539,882.
On the 12 August 2022 the Company issued 163,139 Ordinary shares of £0.001 each for a total consideration of £595,863, resulting in share premium of £595,700.
On the 17 October 2022 the Company issued 18,921 Ordinary shares of £0.001 each for a total consideration of £84,766, resulting in share premium of £84,747.
On the 28 December 2022 the Company issued 22,322 Ordinary shares of £0.001 each for a total consideration of 100,003, resulting in share premium of £99,980.
On the 4 April 2023 the Company issued 43,527 Ordinary shares of £0.001 each for a total consideration of £195,001, resulting in share premium of £194,957.
On the 27 June 2023 the Company issued 5,478 Ordinary shares of £0.001 each for a total consideration of £24,541, resulting in share premium of £24,536.
Post year end, the company has made the following share issues - 29,018 Ordinary shares of £0.001 for a total consideration of £130,000 on 11 August 2023, 10,626 Ordinary shares of £0.001 for a total consideration of £47,604 on 22 September 2023 and 127,679 ordinary shares of £0.001 for a total consideration of £572,002.
Deferred shares do not entitle the holder to recieve dividends, distributions nor attendance and voting rights at any general meeting. Deferred shares are not redeemable, except on winding up where a repayment of £0.001 per deferred share will be paid.
Ordinary shares receive one vote each in relation to all matters.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
Share premium account
The share premium account is used to record the aggregate amount or value of premiums paid when the company’s shares are issued at an amount in excess of nominal value.
Retained earnings
This reserve relates to the cumulative retained earnings less amounts distributed to shareholders.
Other reserves
Other reserves represents equity rights attached to convertible debt arrangements.
The results for the year ended 30 June 2022 have been restated in order to reanalyse a convertible loan note as a liability on the balance sheet rather than being treated as a compund financial instrument split between liability and equity components. This has the effect of reducing other reserves by £490,803 for the reanalysis of the equity element of the convertible loan notes as a liability on the balance sheet at 30 June 2022.
The loss for the June 2022 year end as previously reported has reduced by £132,713 to reflect the reversal of the discounting adjustment for the debt element of the convertible loan, accrual for interest due on the loan notes and the fair value restatement of the liability at 30 June 2023.
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Related party transactions
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At the year end the Company owed £124,000 (2022: £218,000) to its directors. The total balance owing to a director (2021: two directors) is held within creditors: amounts falling due within one year. The director's loan has interest of £6,000 charged on it during the year.
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In the opinion of the directors and shareholders, due to the nature of the shareholdings, no one person has ultimate control of the company.
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