Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2020
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GLOBAL PARAMETRICS LIMITED
COMPANY INFORMATION
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GLOBAL PARAMETRICS LIMITED
CONTENTS
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GLOBAL PARAMETRICS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2020
The Directors present their report and the financial statements of Global Parametrics Limited ("the Company") for the year ended 31 December 2020.
The Directors who served during the year were:
The Directors are responsible for preparing 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;
∙
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.
The auditors, Haysmacintyre LLP, will be proposed for reappointment in accordance with
section 485 of the Companies Act 2006.
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GLOBAL PARAMETRICS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
In preparing this report, the Directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.
This report was approved by the board on
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GLOBAL PARAMETRICS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GLOBAL PARAMETRICS LIMITED
We have audited the financial statements of Global Parametrics Limited ("the Company") for the year ended 31 December 2020, 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).
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.
We draw your attention to note 2.2 in the financial statements in relation to the going concern status of the Company. The Company remains loss-making and has a net liabilities position, and as such, is reliant on its parent undertaking, Global Parametrics Holding Company ("GPHC"), for financial support. These facts and the matters disclosed in note 2.2 indicate that a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.
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.
Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections of this report.
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GLOBAL PARAMETRICS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GLOBAL PARAMETRICS 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.
In our opinion, based on the work undertaken in the course of the audit:
∙
the information given in the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙
the Directors' Report has been prepared in accordance with applicable legal requirements.
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 Directors' Report.
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GLOBAL PARAMETRICS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GLOBAL PARAMETRICS LIMITED (CONTINUED)
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:
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud Based on our understanding of the Company, we identified that the principal risks of non-compliance with laws and regulations related to regulatory requirements for the investment advisory business and trade regulations, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, income tax, payroll tax and sales tax. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to revenue and management bias in accounting estimates. Audit procedures performed by the engagement team included:
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inspecting correspondence with regulators and tax authorities; or
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discussions with managment including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;
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evaluating management's controls designed to prevent and detect irregularities;
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identifying and testing journals, in particular journal entries posted with unusual account combinations, postings by unusual users or with unusual descriptions; and
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challenging assumptions and judgements made by management in their critical accounting estimates.
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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GLOBAL PARAMETRICS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GLOBAL PARAMETRICS 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.
for and on behalf of
Statutory Auditors
10 Queen Street Place
EC4R 1AG
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GLOBAL PARAMETRICS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2020
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GLOBAL PARAMETRICS LIMITED
REGISTERED NUMBER:
10896407
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2020
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 12 to 21 form part of these financial statements.
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GLOBAL PARAMETRICS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED
31 DECEMBER 2020
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GLOBAL PARAMETRICS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2020
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GLOBAL PARAMETRICS LIMITED
ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2020
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GLOBAL PARAMETRICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
Global Parametrics Limited is a limited liability company incorporated and domiciled in England and Wales. The address of its registered office and principal place of business is 120 Moorgate, London, EC2M 6UR.
2.
Accounting policies
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:
The Company remains loss-making and has a net liabilities position which gives rise to concerns over the Company's ability to continue as a going concern.
The Company’s parent undertaking, Global Parametrics Holding Company Limited (“GPHC”) signed an agreement with its existing shareholders on 31 October 2019 for additional funding in the aggregate amount of £3m to provide ongoing financial support to GPHC for its activities and those of its subsidiaries (the 2019 Funds). Such funds were paid to GPHC in three equal instalments with the last such instalment of £1m being paid in August 2020. However, further external funding was considered to be required in order to allow GPHC and its subsidiaries to advance to the next stage of their growth and development and, accordingly, in mid-2020, GPHC embarked upon a further round of fundraising and appointed two corporate finance advisory firms to lead this process on its behalf. Given GPHC’s and its subsidiaries’ unique mission to build markets to develop financial disaster risk management solutions for low-and-middle income countries, there has been strong interest in GPHC throughout the process from a range of different potential investors, but the ongoing investment process has been, and continues to be, slow. Subsequent to the commencement of the fundraising process and, to date, GPHC’s and its subsidiaries’ ability to generate has strengthened (in particular as a consequence of the launch of Global Parametrics' range of standardised products and Global Parametrics' growing traction and reputation in structuring risk transfer solutions in underserved geographies both within, and without, the Natural Disaster Fund). During the same period, its control of expenditure has been tight and GPHC and its subsidiaries have built a substantial pipeline of revenue generating mandates through the remainder of the year and into 2022.
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GLOBAL PARAMETRICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
2.
Accounting policies (continued)
However, receipt of the 2019 Funds, the growth of revenues and the careful stewardship of expenses are anticipated to not, of themselves, provide sufficient funding to enable GPHC to provide ongoing financial support to the Company over the period of at least 12 months from the date of signature of these financial statements. Indeed, it is anticipated that it will still be necessary to raise additional capital and/or implement other measures in conjunction with existing investors and stakeholders, including, without limitation, the making of structural adjustments to existing advisory, management fee and/or financing arrangements to extend GPHC’s and its subsidiaries’ cash runway in order to secure the Company’s sustainability. The event of not being able to secure any such additional funding of any nature and not being able to implement other measures (including, without limitation, the making of structural adjustments to existing advisory, management fee and/or financing arrangements) with existing investors and stakeholders would cast significant doubt upon the Company’s ability to realise its assets and discharge its liabilities as they fall due in full.
The Directors have assessed the likelihood of the availability of any such further financing to GPHC and in-turn its ability to lend to the Company, and of the likelihood of GPHC being able to agree with its existing investors and stakeholders upon the implementation of one or more of a range of options to extend GPHC’s and its subsidiaries’ cash runway. Active discussions are continuing with potential strategic investors and with existing investors and stakeholders and, whilst the Directors remain hopeful that an investment and/or other options to extend GPHC’s and its subsidiaries’ cash runway can be concluded, the precise timing of such outcomes and their realisation remain uncertain. This uncertainty represents a material uncertainty that may cast significant doubt on the Group's ability to raise new finance which would be provided to this Company. Accordingly, the uncertainty also presents a material uncertainty that may cast significant doubt on this Company's ability to continue as a going concern. Nevertheless, having considered the status of such fundraising discussions and such discussions with existing investors and stakeholders together with the trajectory of revenues (although it is recognised that these cannot be guaranteed going forward given the inherent uncertainties in realising revenues) and the tightness of measures to seek to control costs, the board arrived at the conclusion that the combination of these factors provides it with sufficient confidence that there is a realistic prospect that GPHC will have the ability to provide further financial support to the Company over the period of at least 12 months from the date of signature of these financial statements. It is on this basis that the Directors have prepared the financial statements of the Company on a going concern basis.
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GLOBAL PARAMETRICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
2.
Accounting policies (continued)
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.
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GLOBAL PARAMETRICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
2.
Accounting policies (continued)
Functional and presentation currency
Transactions and balances
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GLOBAL PARAMETRICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
2.
Accounting policies (continued)
Useful economic lives of non-financial assets The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended where necessary to reflect current estimates, based on technological advancement, economic utilisation and the physical condition of the assets. See note 10 for the carrying amount of the non-financial assets and note 2.4 for the useful economic lives for each class of assets.
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GLOBAL PARAMETRICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
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GLOBAL PARAMETRICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
Following Budget 2021 annoucements, there will be a further increase in the main rate of corporation tax to 25% from 1 April 2023.
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GLOBAL PARAMETRICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
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GLOBAL PARAMETRICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
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GLOBAL PARAMETRICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
Profit and loss account
The parent undertaking and controlling party is Global Parametrics Holding Company Limited, a Company incorporated and registered in England and Wales.
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