Company Registered number-03812106 (England and Wales ) |
ACN Accountants |
Chartered Certified Accountants & Statutory Auditors |
JK TECH UK LIMITED | |
Report and accounts | |
Contents | |
Page | |
Company information | 1 |
Directors' report | 2 to 3 |
Independent auditor's report | 4 to 6 |
Profit and loss account | 7 |
Balance sheet | 8 |
Statement of changes in equity | 9 |
Notes to the accounts | 10 to 18 |
Company Information |
Directors |
Secretary |
Auditors |
ACN Accountants |
41 Orsett Road |
Grays |
Essex |
RM17 5DS |
Registered office |
85 Great Portland Street |
London |
W1W 7LT |
Registered number |
Registered number: | |||||||
Directors' Report | |||||||
The directors present their report and accounts for the year ended |
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Principal activities | |||||||
Results and dividends | |||||||
The results for the year are set out on page 7. | |||||||
No ordinary dividends were paid. The directors do not recommend payment of a final dividend. | |||||||
Directors | |||||||
The following persons served as directors during the year: | |||||||
The above directors held office during the whole of the period from 1 April 2022 to the date of the report. | |||||||
Financial Risk Management Objectives and Policies | |||||||
The Ongoing Russia – Ukraine conflict | |||||||
a.This ongoing Russia - Ukraine conflict has resulted in going concern becoming a significant risk. The United States and Europe have avoided direct military conflict with Russia amid its conflict with Ukraine. They have however used a set of financial sanctions to limit Russia's access to financial resources. The impact of the sanctions may result in difficulties for the company to operate. Neither JK Tech UK Limited nor the owners are currently on the sanctions list at the time of this report, however this may change as the situation changes. | |||||||
b. Financial risk management objectives and policies of the company including the policy for hedging each major type of forecasted transaction for which hedge accounting is used ;and | |||||||
c. The exposure of the company to price risk,credit risk,liquidity risk and cash flow risk;unless such information is not material for the assessment of the assets ,liabilities,financial position and profit or loss of the company. | |||||||
Directors' responsibilities |
The directors are responsible for preparing the report and accounts in accordance with applicable law and regulations. | |||||||
Company law requires the directors to prepare accounts for each financial year. Under that law the directors have elected to prepare the accounts in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the accounts 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 accounts, the directors are required to: | |||||||
● | select suitable accounting policies and then apply them consistently; | ||||||
● | make judgements and estimates that are reasonable and prudent; | ||||||
● | prepare the accounts 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 enable them to ensure that the accounts 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. |
Disclosure of information to auditors |
Each person who was a director at the time this report was approved confirms that: | |||||||
● | So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
Auditors | |||||||
The auditors, ACN Accountants, will be proposed for re-appointment at the forthcoming Annual General Meeting. | |||||||
Small company provisions | |||||||
This report was approved by the board on |
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Mr Satish Gupta | |||||||
Director | |||||||
JK TECH UK LIMITED | ||
Independent auditor's report | ||
to the members of JK TECH UK LIMITED | ||
Opinion |
We have audited the accounts of JK TECH UK LIMITED (the 'company') for the year ended 31 March 2023 which comprise the Profit and Loss Account, the Balance Sheet, the Statement of Changes in Equity and notes to the accounts, including 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 the Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). | ||
In our opinion the accounts: | ||
● | give a true and fair view of the state of the company's affairs as at 31 March 2023 and of its loss for the year then ended; | |
● | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; | |
● | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion | ||
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 Auditor’s responsibilities for the audit of the accounts section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the accounts in the UK, including the FRC’s Ethical Standard, and the provisions available for small entities, in the circumstances set out below, 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. | ||
In accordance with the exemption provided by FRC's Ethical Standard - Provisions Available for Audits of Small Entities, we have prepared and submitted the company’s returns to the tax authorities and assisted with the preparation of the accounts. | ||
Conclusions relating to going concern | ||
In auditing the accounts, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the accounts is appropriate. | ||
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the accounts are authorised for issue. | ||
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. | ||
Other information | ||
The other information comprises the information included in the annual report other than the accounts and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the accounts 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 accounts 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 accounts 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. | ||
Opinions on other matters prescribed by the Companies Act 2006 | ||
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 accounts are prepared is consistent with the accounts; and | |
● | the directors’ report has been prepared in accordance with applicable legal requirements. | |
Matters on which we are required to report by exception |
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. | ||
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: | ||
● | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or | |
● | the accounts are not in agreement with the accounting records and returns; or | |
● | certain disclosures of directors’ remuneration specified by law are not made; or | |
● | we have not received all the information and explanations we require for our audit; or | |
● | the directors were not entitled to prepare the accounts in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the directors’ report and from the requirement to prepare a strategic report. |
Responsibilities of directors | ||
As explained more fully in the directors’ responsibilities statement, the directors are responsible for the preparation of the accounts and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of accounts that are free from material misstatement, whether due to fraud or error. | ||
In preparing the accounts, the directors are responsible for assessing the company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. | ||
Auditor’s responsibilities for the audit of the accounts | ||
Our objectives are to obtain reasonable assurance about whether the accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s 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 accounts. |
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: | ||
We obtained an understanding of the company and the sector in which it operates to identify laws and regulations that could reasonably be expected to have a direct effect on the financial statements. We obtained our understanding in this regard through discussions with management, industry research and application of cumulative audit knowledge | ||
We determined the principal laws and regulations relevant to the company in this regard to be those arising from the Companies Act 2006, Financial Reporting Standards FRS 102. | ||
We designed our audit procedures to ensure the audit team considered whether there are any indications of non-compliance by the company with those laws and regulations. These procedures included, but were not limited to enquiries of management and review of minutes. | ||
We also identified the risks of material misstatements of the financial statements due to fraud. We considered, in addition to the non-rebuttable presumption of a risk of fraud arising from management override of controls, that potential for management bias, none of these were identified during our audit work. We have addressed this by examining and reviewing post year end sales and post year end cash book transactions and discussions made with the management. | ||
As in all of our audits, we addressed the risk of fraud arising from management override of controls by performing audit procedures which included, but were not limited to: the testing of journals,; reviewing accounting estimates for evidence of bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. |
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Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulations. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occuring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. |
A further description of our responsibilities for the audit of the accounts is available on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. | ||
Use of our report | ||
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 auditor's 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. | ||
(Senior Statutory Auditor) | 41 Orsett Road | |
for and on behalf of | Grays | |
Essex | ||
Statutory Auditor | RM17 5DS | |
Profit and Loss Account | ||||||||
for the year ended |
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2023 | 2022 | |||||||
£ | £ | |||||||
Turnover | ||||||||
Cost of sales | ( |
( |
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Gross profit | ||||||||
Administrative expenses | ( |
( |
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Other operating income | - | |||||||
Operating loss | ( |
( |
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Interest receivable | ||||||||
Loss before taxation | ( |
( |
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Tax on loss | ( |
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Loss for the financial year | ( |
( |
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Registered number: | |||||||
Balance Sheet | |||||||
as at |
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Notes | 2023 | 2022 | |||||
£ | £ | ||||||
Fixed assets | |||||||
Intangible assets | 4 | - | |||||
Current assets | |||||||
Debtors | 5 | ||||||
Cash at bank and in hand | |||||||
Creditors: amounts falling due within one year | 6 | ( |
( |
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Net current assets | |||||||
Total assets less current liabilities | |||||||
Creditors: amounts falling due after more than one year | 7 | ( |
- | ||||
Net assets | |||||||
Capital and reserves | |||||||
Called up share capital | |||||||
Profit and loss account | |||||||
Shareholders' funds | |||||||
Mr Satish Gupta | |||||||
Director | |||||||
Approved by the board on |
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Statement of Changes in Equity | ||||||||||
for the year ended |
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Share | Share | Re- | Profit | Total | ||||||
capital | premium | valuation | and loss | |||||||
reserve | account | |||||||||
£ | £ | £ | £ | £ | ||||||
At 1 April 2021 | - | - | ||||||||
Loss for the financial year | (1,236) | (1,236) | ||||||||
At 31 March 2022 | 20,000 | - | - | 616,307 | 636,307 | |||||
At 1 April 2022 | - | - | ||||||||
Loss for the financial year | ( |
( |
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At 31 March 2023 | - | - | ||||||||
Notes to the Accounts | ||||||||
for the year ended |
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1 | Accounting policies | |||||||
Company information | ||||||||
JK Tech UK Limited formerly known as J.K.Technosoft (UK) Limited is a private company limited by shares incorporated in England and Wales. The registered office is 85 Great Portland Street, London, W1W 7LT. | ||||||||
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 disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view. |
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The financial statements are prepared in sterling, which is the functional currency of the company. Monetary a mounts 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 Accounting convention | Turnover | |||||||
Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT. | ||||||||
Revenue from contracts for the provision of 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. | ||||||||
1.3 Intangible fixed assets other than goodwill | ||||||||
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses. | ||||||||
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity. | ||||||||
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives. | ||||||||
1.4 Tangible fixed assets | ||||||||
Tangible fixed assets are initially measured at cost and subsequently measured at costor valuation, net of depreciation and any impairment losses. The company assets have been fully depreciated, however any future acquisitions will be written down at appropriate rates. | ||||||||
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives. | ||||||||
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 and intangible 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. |
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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. |
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1.6 Cash at bank and in hand | ||||||||
Cash and cash equivalents are baste financial assets and include cash in hand, deposlts 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. | ||||||||
1.7 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. |
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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. |
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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. |
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1.8 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. Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk. |
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1.9 Taxation | ||||||||
The tax expense represents the sum of the tax currently payable and deferred tax. 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. |
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Deferred tax | ||||||||
Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted. | ||||||||
1.10 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. |
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1.11 Retirement benefits | ||||||||
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. |
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1.12 Government grants | ||||||||
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received. A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability. During the period the company made use the UK Governments Coronavirus Job Retention Scheme for part of the year and received grants to support those employees who were placed on furlough. |
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1.13 Foreign exchange | ||||||||
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated In foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss. | ||||||||
1.14 Principal risks and uncertainties | ||||||||
a) Financial risk management objectives and policies of the company including the policy for hedging each major type of forecasted transaction for which hedge accounting is used; and | ||||||||
b) The exposure of the company to price risk, credit risk, liquidity risk and cash flow risk; unless such information is not material for the assessment of the assets, liabilities, financial position and profit or loss of the company. | ||||||||
Financial risk factors | ||||||||
The Company is exposed to the following risks from its use of financial instruments: | ||||||||
“ Credit risk | ||||||||
“ Liquidity risk | ||||||||
“ Market risk | ||||||||
The Board of Directors has overall responsibility for the establishment and oversight of the Company’s risk management framework. | ||||||||
The Company’s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls, and monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company’s activities. | ||||||||
(i) Credit risk | ||||||||
Credit risk arises when a failure by counter parties to discharge their obligations could reduce the amount of future cash inflows from financial assets on hand at the reporting date. The Company tries to sell on so-called “Cash against documents” terms, but in case of a delay in payment, a Buyer’s credit risk is always insured. | ||||||||
(ii) Liquidity risk | ||||||||
Liquidity risk is the risk that arises when the maturity of assets and liabilities does not match. An unmatched position potentially enhances profitability, but can also increase the risk of losses. The Company has procedures with the object of minimising such losses as maintaining sufficient cash and other highly liquid current assets and by having available an adequate amount of committed credit facilities. | ||||||||
(iii) Market risk | ||||||||
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the Company’s income or the value of its holdings of financial instruments. | ||||||||
Interest rate risk | ||||||||
Interest rate risk is the risk that the value of financial instruments will fluctuate due to changes in market interest rates. | ||||||||
Borrowings issues at variable rates expose the Company to cash flow interest rate risk. The Company’s management monitors the interest rate fluctuations on a continuous basis and acts accordingly. | ||||||||
Sensitivity analysis | ||||||||
Any increase/(decrease) in interest rates will have a small effect on results and equity of the Company, because, all financial instruments are fixed rate or pegged to LIBOR/EURIBOR with fixed margin. Strengthening or weakening against the relevant currency, there would be an equal and opposite impact on the profit/loss and other equity. This analysis assumes that all other variables, in particular interest rates, remain constant. | ||||||||
Currency risk | ||||||||
Currency risk is the risk that the value of financial instruments will fluctuate due to changes in foreign exchange rates and liabilities are denominated in a currency that is not the Company’s functional currency. The Company is exposed to foreign exchange risk arising from various currency exposures primarily with respect to the American Dollar, the Euro and Singapore dollar.The Company’s management monitors the exchange rate fluctuations on a continuous basis and acts accordingly. | ||||||||
Going Concern | ||||||||
The financial statements have been prepared on a going concern basis. The directors consider that the company will continue in operational existence in the future. The directors are also with the opinion that the company will improve and generate sufficient funds in to the foreseeable future to pay its debts and liabilities as and when they arise. The directors and the parent company have provided assurances that they will continue supporting the company by providing assistance. This will also assist the company to meet its current obligations as and when they fall due. |
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Going concern consideration | ||||||||
The Company tested the financial impact on the following areas of financial statements that can be affected: | ||||||||
Breach of trade contracts | ||||||||
Revenue | ||||||||
Administrative expenses | ||||||||
Current and non current assets fair value measurements | ||||||||
Trade and other receivables and payables | ||||||||
2 Judgements and key sources of estimation uncertainty | ||||||||
In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. |
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3 | Operating profit | 2023 | 2022 | |||||
£ | £ | |||||||
This is stated after charging: | ||||||||
Auditors' remuneration for audit services | 5,500 | 5,500 | ||||||
All other non-audit services | - | - | ||||||
2 | Audit information | |||||||
The audit report is unqualified. | ||||||||
Senior statutory auditor: | ||||||||
Firm: | ||||||||
Date of audit report: | ||||||||
3 | Employees | 2023 | 2022 | |||||
Number | Number | |||||||
Average number of persons employed by the company | ||||||||
6 | Taxation | 2023 | 2022 | |||||
£ | £ | |||||||
Analysis of charge in period | ||||||||
Current tax: | ||||||||
UK corporation tax on profits of the period | - | 1,052 | ||||||
Adjustments in respect of previous periods | - | - | ||||||
- | 1,052 | |||||||
Deferred tax: | ||||||||
Origination and reversal of timing differences | (40,186) | (43) | ||||||
Effect of increased tax rate on opening liability | - | - | ||||||
(40,186) | (43) | |||||||
Tax on (loss)/profit on ordinary activities | (40,186) | 1,009 | ||||||
Factors affecting tax charge for period | ||||||||
The differences between the tax assessed for the period and the standard rate of corporation tax are explained as follows: | ||||||||
2023 | 2022 | |||||||
£ | £ | |||||||
Loss on ordinary activities before tax | (211,507) | (227) | ||||||
Standard rate of corporation tax in the UK | 19% | 19% | ||||||
£ | £ | |||||||
Profit on ordinary activities multiplied by the standard rate of corporation tax | - | - | ||||||
Effects of: | ||||||||
Expenses not deductible for tax purposes | - | - | ||||||
Capital allowances for period in excess of depreciation | - | - | ||||||
Utilisation of tax losses | - | - | ||||||
Adjustments to tax charge in respect of previous periods | - | - | ||||||
Current tax charge for period | - | 1,052 | ||||||
4 | Intangible fixed assets | Intangible | ||||||
under | ||||||||
construction | ||||||||
£ | ||||||||
Cost | ||||||||
At 1 April 2022 | ||||||||
Additions | ||||||||
Disposals | ( |
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At 31 March 2023 | - | |||||||
Amortisation | ||||||||
At 31 March 2023 | - | |||||||
Net book value | ||||||||
At 31 March 2023 | - | |||||||
At 31 March 2022 | ||||||||
The Company has entered into a contract to develop an intangible asset that is expected to generate future income.However during the year the company has transferred the assets to its group company ( J K Tech US Inc) in the USA at cost price. | ||||||||
5 | Debtors | 2023 | 2022 | |||||
£ | £ | |||||||
Trade debtors | ||||||||
Deferred tax asset | ||||||||
Other debtors | 10,248 | 17,543 | ||||||
Prepayment and accrued income | ||||||||
6 | Creditors: amounts falling due within one year | 2023 | 2022 | |||||
£ | £ | |||||||
Trade creditors | ||||||||
Amounts owed to parent company | ||||||||
Taxation and social security costs | ||||||||
Other creditors | ||||||||
Other creditors includes £264,196 in respect of a late invoicing adjustment to the parent company J. K. Technosoft Ltd ( 2022- £227,322). Also other creditors includes an amount of £ 22,994 ( 2022: nil) owe to JK Tech Europe B.V. an associates, controlled by the same parent company. | ||||||||
7 | Creditors: amounts falling due after one year | 2023 | 2022 | |||||
£ | £ | |||||||
Other creditors | - | |||||||
11 | Share capital | Nominal | 2023 | 2022 | ||||
Ordinary shares capital | value | Number | £ | £ | ||||
Issued and fully paid: | ||||||||
Ordinary shares | £.10p each | 200,000 | 20,000 | 20,000 | ||||
12 | Subsequent events | |||||||
There have not been any significant events since the balance sheet date. | ||||||||
There were no essential either adjusting events or non-adjusting events in the period of time elapsing between the balance sheet date and the date on which these financial statements are prepared.The directors have also confirmed that the business will continue to be a going concern for the foreseeable future and they will support the company. | ||||||||
The Ongoing Russia – Ukraine conflict | ||||||||
This ongoing Russia - Ukraine conflict has resulted in going concern becoming a significant risk. The United States and Europe have avoided direct military conflict with Russia amid its conflict with Ukraine. They have however used a set of financial sanctions to limit Russia's access to financial resources. The impact of the sanctions may result in difficulties for the company to operate.Neither JK Tech UK Limited nor the owners are currently on the sanctions list at the time of this report, however this may change as the situation changes. | ||||||||
13 | Contingent liabilities | |||||||
The company had no contingent liabilities as at 31st March 2023 | ||||||||
14 | Capital and Other Financial Commitments | |||||||
The company had no capital or other financial commitments other than those stated in the financial statements as at 31st March 2023. | ||||||||
15 | Related party transactions | |||||||
During the year the company paid management charges of £2,432,463 (2022 - £3,207,653 ) to its parent company in India, J.K. Technosoft Limited. Also included in other creditor, there is an amount for £264,196 in respect of a late invoicing adjustment ( 2022- £ 227,322 ). At the year end balance outstanding to the parent company was £796,237 (2022 - £5,368 ).During the year there were transactions between the company and J K Tech US Inc, a company incorporated in the USA and controlled by the same parent company . At the end of the year J K Tech US Inc owed to the company an amount of £76,147 ( 2022: nil) which is included in trade debtors.Other creditors also includes an amount of £ 22,994 ( 2022: nil) owe to JK Tech Europe B.V. an associates, controlled by the same parent company. | ||||||||
16 | Parent company | |||||||
The company is a wholly owned subsidiary of J. K Technosoft Limited, a company incorporated in India. J. K Technosoft Limited is the parent of the largest group for which group accounts are prepared. and its registered office is A-2, Local Shopping Complex, Masjid Moth, Greater Kailash -II, New Delhi, 110048, India. |