Registered number: 10388856 (England and Wales)
LUNO MONEY LIMITED
DIRECTORS' REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
|
COMPANY INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
F&L Corporate Reporting Services Limited
|
|
|
|
|
|
CONTENTS
|
|
|
|
Notes to the Financial Statements
|
|
|
|
|
|
LUNO MONEY LIMITED
REGISTERED NUMBER:
10388856
|
BALANCE SHEET
AS AT
31 MARCH 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debtors: amounts falling due after more than one year
|
|
|
|
|
|
Debtors: amounts falling due within one year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Creditors: amounts falling due within one year
|
|
|
|
|
|
|
|
|
|
|
|
Total assets less current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Page 1
|
|
|
|
LUNO MONEY LIMITED
REGISTERED NUMBER:
10388856
|
BALANCE SHEET
(CONTINUED)
AS AT
31 MARCH 2020
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 3 to 9 form part of these financial statements.
Page 2
|
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
1.
Accounting policies
|
|
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 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:
Luno Money Limited has received written confirmation from its ultimate parent company, Luno Pte. Limited, that it will continue to provide financial support to the Company for a period of at least 12 months from the date of signing these financial statements. For this reason, the directors continue to adopt the going concern basis in preparing the financial statements.
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover 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 turnover is recognised:
Rendering of services
Turnover from the intercompany service agreement 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 turnover 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.
Alongside the intercompany service agreement, the Company entered into an agency agreement with the parent company, Luno Pte. Limited, under which the Company provides agency services in relation to the opening and operating of third party broker accounts. The assets and liabilities in relation to this agreement are not recognised in these financial statements and any costs suffered in relation to providing these services are reimbursed in line with the intercompany service agreement.
Transaction processing income is recognised at the point a customer withdraws fiat currency from their wallet.
Other income represents amounts received in relation to input VAT reclaimed on expenses suffered in the previous year.
Page 3
|
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
1.
Accounting policies (continued)
|
|
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.
Interest income is recognised in profit or loss using the effective interest method.
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.
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.
The estimated useful lives range as follows:
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.
Short term debtors are measured at transaction price, less any impairment. Loans receivable are intercompany loans. No interest is charged on the loans which are repayable on demand.
Page 4
|
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
1.
Accounting policies (continued)
|
|
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 held on deposit by service providers is included within bank and cash balances, as these amounts are highly liquid and repayable without penalty on notice of not more than 24 hours.
Short term creditors are measured at the transaction price. Loans payable are intercompany loans. No interest is charged on the loans which are repayable on demand.
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.
|
|
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.
The auditors' report on the financial statements for the year ended 31 March 2020 was unqualified.
The audit report was signed on
20 October 2020
by
Louise Morriss BFP ACA FCCA
(Senior Statutory Auditor) on behalf of
F&L Corporate Reporting Services Limited
.
|
The average monthly number of employees, including directors, during the year was
33
(2019 -
16
)
.
|
Page 5
|
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charge for the year on owned assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
During the year, the Company registered for VAT and retrospectively reclaimed amounts relating to asset additions made in the prior year. The adjustment shown above represent the amount reclaimed.
|
Page 6
|
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
|
Due after more than one year
|
|
|
|
|
|
|
|
|
|
|
|
An amount of £208,264 was reclassified in the prior year from other debtors due within one year to other debtors due after more than one year, to reflect the repayment terms of this balance.
|
|
|
|
|
|
Amounts owed by group undertakings
|
|
|
|
|
|
|
|
Prepayments and accrued income
|
|
|
|
|
|
|
|
|
|
|
|
Customer funds represent cash held on behalf of customers by the Company. The Company requires permission to control these funds by the customer.
A reclassification of £9,032 was posted between Customer Funds and Bank Account. The net effect on the balance is £nil.
|
Page 7
|
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
|
Creditors: Amounts falling due within one year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts owed to group undertakings
|
|
|
|
|
|
|
|
Other taxation and social security
|
|
|
|
|
|
|
|
|
|
|
|
Accruals and deferred income
|
|
|
|
|
|
|
|
|
|
|
8.
Financial commitments
At the end of the reporting period, the total amount of all financial commitments, guarantees and contingencies that are not included in the balance sheet was £1,204,872 (2019: £1,523,200) of which £365,568 (2019: £318,640) was falling due within one year.
On 30th January 2017, the Company entered into an exclusive agency agreement with the parent company whereby the parent company authorises the Company to open, maintain and transact through third party broker accounts holding Fiat Currency and Cryptocurrency. The agreement protects the Company against any gains or losses suffered as a result of performing the agency services on behalf of the parent company.
As a result, the directors have determined that the assets held in the third party broker accounts do not meet the definition of an asset to the Company and as a result have removed the relevant balances from the financial statements. The resulting adjustment has led to a decrease in 'Other debtors' of £1,186,274 and a corresponding decrease in 'Other loans', included in creditors due within one year, by the same amount. This adjustment has had no impact on previously reported profit and loss reserve.
Luno Pte. Ltd., a company incorporated in Singapore, is the parent company of the smallest group for which consolidated financial statements are drawn up of which the Company is a member. The registered office of the parent company is 1 Coleman Street, #05-05 The Adelphi, Singapore, 179803.
Page 8
|
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
|
Post balance sheet events
|
'In September 2020, the ultimate parent company was acquired by Digital Currency Group Inc. As a result, vested share options granted to employees over the previous three years became unrestricted. As the options had no fair value as at 31 March 2020, this is considered a non-adjusting event. The resulting share-based compensation expense recognised in September 2020 was £101,300.
There were no adjusting or other non-adjusting events occurring between the end of the reporting period and the date these financial statements were approved.
Page 9
|