Company registration number 04846069 (England and Wales)
KWA SERVICES LIMITED
(FORMERLY KALMAR WEST AFRICA LIMITED)
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
PAGES FOR FILING WITH REGISTRAR
KWA SERVICES LIMITED
(FORMERLY KALMAR WEST AFRICA LIMITED)
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 7
KWA SERVICES LIMITED
(FORMERLY KALMAR WEST AFRICA LIMITED)
BALANCE SHEET
AS AT 31 MARCH 2023
31 March 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
5
85
141
Current assets
Debtors
6
619,802
497,620
Cash at bank and in hand
517,625
949,574
1,137,427
1,447,194
Creditors: amounts falling due within one year
7
(1,275,066)
(1,625,829)
Net current liabilities
(137,639)
(178,635)
Total assets less current liabilities
(137,554)
(178,494)
Provisions for liabilities
672
810
Net liabilities
(136,882)
(177,684)
Capital and reserves
Called up share capital
8
100
100
Profit and loss reserves
(136,982)
(177,784)
Total equity
(136,882)
(177,684)
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved and signed by the director and authorised for issue on 21 December 2023
Mr Y Moskovitch
Director
Company registration number 04846069 (England and Wales)
KWA SERVICES LIMITED
(FORMERLY KALMAR WEST AFRICA LIMITED)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
1
Accounting policies
Company information
KWA Services Limited is a private company limited by shares incorporated in England and Wales. The registered office is 5 De Walden Court, 85 New Cavendish Street, London, W1W 6XD.
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.
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 director of the company has considered the implications of the Insolvency Act 1986 and regards the balance sheet position as temporary only. The director is of the opinion that truesufficient future profits will be earned and sufficient future funding will be available to allow the company to meet its liabilities as and when they fall due.
The Company is still awaiting the formal execution of a renewed long term contract, with a long standing supplier. Until such time this has has been signed, both parties have continued to operate on the basis of the existing agreement and relationship. Notwithstanding that until the renewed contract has been formally executed a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern, the expectation of the Director, based on the long trading history and long term past dealing, is that the contract renewal will be formally executed once final agreement on the remaining terms has been agreed. As such the Director considers the going concern basis to remain appropriate.
1.3
Turnover
Turnover represents amounts receivable for goods despatched to customers, net of VAT and trade discounts.
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:
Computer equipment
25% Straight line
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.
KWA SERVICES LIMITED
(FORMERLY KALMAR WEST AFRICA LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 3 -
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
Stocks
The company's policy is not to buy or hold trading stock. All goods are expensed to the profit and loss immediately. If a sale is subsequently not completed, and if the goods cannot then be returned the supplier, the company might be obliged to recognise stock temporarily; but the company's stock policy remains unchanged.
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.
KWA SERVICES LIMITED
(FORMERLY KALMAR WEST AFRICA LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 4 -
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.
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.
1.10
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.
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
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.
KWA SERVICES LIMITED
(FORMERLY KALMAR WEST AFRICA LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 5 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is 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.
3
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
3,000
3,000
4
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
5
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 April 2022 and 31 March 2023
808
Depreciation and impairment
At 1 April 2022
667
Depreciation charged in the year
56
At 31 March 2023
723
Carrying amount
At 31 March 2023
85
At 31 March 2022
141
KWA SERVICES LIMITED
(FORMERLY KALMAR WEST AFRICA LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 6 -
6
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
366,738
244,608
Amounts owed by group undertakings
55,760
55,923
Other debtors
197,304
197,089
619,802
497,620
7
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
299,446
515,254
Amounts owed to group undertakings
530,108
550,533
Other creditors
445,512
560,042
1,275,066
1,625,829
8
Called up share capital
2023
2022
£
£
Ordinary share capital
Issued and fully paid
100 Ordinary shares of £1 each
100
100
9
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
The senior statutory auditor was Malcolm Kauder.
The auditor was PMK & Associates LLP.
KWA SERVICES LIMITED
(FORMERLY KALMAR WEST AFRICA LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 7 -
10
Related party transactions
The following transactions were made between related companies during the year:
The parent company, Leemar Group Ltd paid net expenses of (£336,121) (2022: (£219,336) on behalf of the company and the company was charged management charges of £312,696 (2022: £244,256) from its parent company. At the year end, the balances due to Leemar Group Limited was £412,950 (2022: £433,375).
The company provided working capital loans totalling (£9,985) (2022: (£226,741)) and paid net expenses of £9,822 (2022:£18,504) on behalf of Marine Mutual Services (WA) Limited, a fellow subsidiary of Leemar Group Limited. At the year end, the balances due from Marine Mutual Services (WA) Limited was £55,760 (2022: £55,923).
The company paid part of its intercompany balance totalling £Nil (2022: £14,042) to Pandiship (WA) Limited, a fellow subsidiary of Leemar Group Limited. At the year end, the balances due to Pandiship (WA) Limited was £117,158 (2022: £117,158).
Included within other debtors is an amount of £1,500 (2022: £1,500) due from Sealtech Systems Ltd, a company which is controlled by the director but is not a member of the group.
11
Parent company
The immediate and ultimate parent undertaking is Leemar Group Limited, a company incorporated in England and Wales.
The ultimate controlling party is Mr A Moskovitch, shareholder of Leemar Group Limited.