Know Solutions Ltd
Unaudited Financial Statements
For the year ended 28 February 2023
Pages for Filing with Registrar
Company Registration No. 06053160 (England and Wales)
Know Solutions Ltd
Company Information
Director
Mr J Gill
Secretary
Mrs L Gill
Company number
06053160
Registered office
Venture House
Downshire Way
Arlington Square
Bracknell
England
RG12 1WA
Accountants
Moore Kingston Smith LLP
The Shipping Building
The Old Vinyl Factory
Blyth Road
Hayes
London
UB3 1HA
Know Solutions Ltd
Contents
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 8
Know Solutions Ltd
Balance Sheet
As at 28 February 2023
Page 1
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
3
9,111
10,830
Current assets
Stock
37,750
39,750
Debtors
4
96,862
83,833
Cash at bank and in hand
126,899
242,344
261,511
365,927
Creditors: amounts falling due within one year
5
(208,626)
(193,373)
Net current assets
52,885
172,554
Total assets less current liabilities
61,996
183,384
Creditors: amounts falling due after more than one year
6
(46,667)
(66,667)
Provisions for liabilities
-
0
(2,057)
Net assets
15,329
114,660
Capital and reserves
Called up share capital
7
655
655
Capital redemption reserve
345
345
Profit and loss reserves
14,329
113,660
Total equity
15,329
114,660

The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true

For the financial year ended 28 February 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

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

Know Solutions Ltd
Balance Sheet (Continued)
As at 28 February 2023
Page 2
The financial statements were approved and signed by the director and authorised for issue on 21 November 2023
Mr J  Gill
Director
Company Registration No. 06053160
Know Solutions Ltd
Notes to the Financial Statements
For the year ended 28 February 2023
Page 3
1
Accounting policies
Company information

Know Solutions Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Venture House, Downshire Way, Arlington Square, Bracknell, England, RG12 1WA.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

The accompanying financial statements have been prepared under the assumption that the Company will continue as a going concern. The company made a pre-tax loss for the year of £104,843 and as at 28 February 2023 the company had net assets of £15,329. The ability of the Company to continue as a going concern is dependent upon its ability to successfully implement its business plan, generate profitable operations, and obtain the necessary finance to meet its obligations and repay its liabilities arising from normal business operations when they come due.

 

Management is actively pursuing strategies to address these matters, including but not limited to, cost reduction initiatives and exploring new business opportunities. The company is reliant on the support of its creditors, shareholders and bank. The director has reasonable grounds to believe that such ongoing financial support to the company will continue to be available for at least the next twelve months from the date of approval of these accounts. Failure to secure such support could adversely impact the Company’s ability to continue its operations and meet its obligations in the normal course of business.

 

At the time of approving the financial statements, the director having assessed the company’s current years profitability and order book, is of the opinion that the company is a going concern and therefore should continue to adopt the going concern basis of accounting in preparing these financial statements.

1.3
Turnover

The turnover shown in the profit and loss account represents the value of all goods and services sold during the period, less returns received, at selling price exclusive of Value Added tax. Sales are recognised at the point the company has fulfilled its contractual obligations and the risks and rewards attaching to the product, such as obsolescence, have been transferred to the customer.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

Know Solutions Ltd
Notes to the Financial Statements (Continued)
For the year ended 28 February 2023
1
Accounting policies
(Continued)
Page 4
1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Plant and equipment
10% straight line basis
Fixtures and fittings
10% straight line basis
Office Equipment
25% straight line basis
Motor vehicles
20% straight line basis

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.6
Stock

Stock are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stock to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stock over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Know Solutions Ltd
Notes to the Financial Statements (Continued)
For the year ended 28 February 2023
1
Accounting policies
(Continued)
Page 5
1.7
Cash at bank and in hand

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally 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.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Know Solutions Ltd
Notes to the Financial Statements (Continued)
For the year ended 28 February 2023
1
Accounting policies
(Continued)
Page 6
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12
Retirement benefits

For defined contribution schemes the amount charged to profit or loss is the contributions payable in the year. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments.

2
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Total
4
4
Know Solutions Ltd
Notes to the Financial Statements (Continued)
For the year ended 28 February 2023
Page 7
3
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 March 2022
81,196
Additions
1,736
Disposals
(24,985)
At 28 February 2023
57,947
Depreciation and impairment
At 1 March 2022
70,366
Depreciation charged in the year
3,455
Eliminated in respect of disposals
(24,985)
At 28 February 2023
48,836
Carrying amount
At 28 February 2023
9,111
At 28 February 2022
10,830
4
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
75,987
79,649
Corporation tax recoverable
3,454
-
0
Other debtors
15,000
-
Prepayments and accrued income
2,421
4,184
96,862
83,833
Know Solutions Ltd
Notes to the Financial Statements (Continued)
For the year ended 28 February 2023
Page 8
5
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
20,000
20,000
Trade creditors
157,191
127,868
Corporation tax
-
0
3,454
Other taxation and social security
26,715
32,389
Other creditors
1,121
2,021
Accruals and deferred income
3,599
7,641
208,626
193,373
6
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
46,667
66,667
7
Called up share capital
2023
2022
Ordinary share capital
£
£
Issued and fully paid
1310 Ordinary shares A of £0.5 each
655
655
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