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KAVANE LIMITED
FINANCIAL STATEMENTS
FOR THE PERIOD ENDED  31 MARCH 2024

 
KAVANE LIMITED
 
 
COMPANY INFORMATION


Directors
R Fadlun 
R Labi 




Registered number
10784333



Registered office
20 Coxon Street
Spondon

Derby

Derbyshire

DE21 7JG




Independent auditors
Sopher + Co LLP
Chartered Accountants & Statutory Auditors

5 Elstree Gate

Elstree Way

Borehamwood

Hertfordshire

WD6 1JD





 
KAVANE LIMITED
 

CONTENTS



Page
Strategic report
 
1 - 2
Directors' report
 
3 - 4
Independent auditors' report
 
5 - 8
Statement of comprehensive income
 
9
Statement of financial position
 
10
Statement of changes in equity
 
11
Statement of cash flows
 
12
Notes to the financial statements
 
13 - 24


 
KAVANE LIMITED
 
 
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 MARCH 2024

Introduction
 
Kavane Limited is a wealth management firm, providing investment advisory and management services and solutions. The Company is authorised and regulated by the Financial Conduct Authority (FCA). 

Business review
 
The Company provides investment advisory and management services for which it receives management fees.
During the period the Company reported an EBITDA loss of £56,114 (2022 - £79,321) which excludes depreciation and amortisation costs. The results and the financial position of the Company at the period end were considered satisfactory by the Directors. The Directors expect growth in the foreseeable future. The Directors also consider the Company's revenues to be stable and operating expenses to be under control.

Principal risks and uncertainties
 
Overview
The Board of Directors are responsible for determining the level of risk acceptable to the Company. This is subject to a regular review. The Company seeks to mitigate its risk through the application of strict limits and controls and a monitoring process at operational level. The Company has regular board meetings to manage all risks.
Market risk
In its discretionary business, the Company is exposed as any other investment manager. Strict investment limits are applied to control the risk.
Foreign currency risk
The Company has a limited exposure to FX risks. The Company is aware of this but currently does not hedge this exposure due to the amounts involved.
I
nterest rate risk
The Company has no external debt so interest rate risk is from it's cash deposits which earn interest on what is effectively a floating rate basis.
Operational risk
Operational risk includes compliance, risk management and transaction risk. While the Company has strict operational procedures in place the UK regulatory framework is materially tightening and being a authorised fund manager this will involve the Company in material investment in enhancing it's risk management processes and procedures. A third party monitors compliance regularly and reports to the Board of Directors on a regular basis.
Remuneration code
In accordance with the rules of the Financial Conduct Authority, the Company has made available information on its Remuneration Code. This information is available on request from the Company.
 

Financial key performance indicators
 
The key performance indicator (KPI) of the Company is based around income and assets under management.
Given the straightforward nature of the business, the Company's Directors are of the opinion that analysis using any other KPIs is not necessary for an understanding of the development, performance and position of the business.

Page 1

 
KAVANE LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024

Directors' statement of compliance with duty to promote the success of the Company
 
The Directors of Comany consider that they have acted in the way they consider, in good faith, would be most likely to promote the success of the Company for the benefit of its shareholders as a whole (having regard to the stakeholders and matters set out in S172(1)(a-f) of the Act) in the decisions taken during the financial year ended 31 October 2021.
Consideration of long-term consequences are an inherent part of the Company's decision-making processes. As a privately-owned Company, the board considers that the interests of the Company and its shareholders are aligned in seeking sustainable value creation over the longer term through it's operations, promoting long term strategic decision-making. These factors also drive a continuing focus on the maintenance of durable relationships with stakeholders, built on the Company's reputation with clients and suppliers.
The Company operates in a sector characterised by long term relationships with stakeholders. Maintaining a reputation for high standards of business conduct is vital and the Company expects all members of the supply chain to always act with integrity, acting openly, honestly and ethically. The Company has zero tolerance to fraud and consistently maintains effective oversight and scrutiny processes, executed with independence and impartiality. Integrity is underpinned with policies in relation to bribery and corruption, data protection, equality, diversity and inclusion, modern slavery, fraud and whistleblowing, each of which is reinforced through appropriate measures.


This report was approved by the board on 23 July 2024 and signed on its behalf.



R Fadlun
Director

Page 2

 
KAVANE LIMITED
 
 
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 MARCH 2024

The Directors present their report and the financial statements for the period ended 31 March 2024.

Directors

The Directors who served during the period were:

R Fadlun 
R Labi 

Results and dividends

The loss for the period, after taxation, amounted to £165,010 (2022 - loss £129,461).

Directors' responsibilities statement

The Directors are responsible for preparing the Strategic report, 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;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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 2006They 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.

Future developments

There are no plans which will significantly change the activities and risks of the Company.

Engagement with suppliers, customers and others

The Company does not conform to any code or standard regarding payment practice. However, it is the Company's policy to settle the terms of payment with suppliers when business is agreed, to ensure that suppliers are made aware of them and to pay invoices in accordance with these terms.

Page 3

 
KAVANE LIMITED
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024

Disclosure of information to auditors

Each of the persons who are Directors at the time when this Directors' report is approved has confirmed that:
 
so far as the Director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the Director has taken all the steps that ought to have been taken as a Director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the period end.

Auditors

Under section 487(2) of the Companies Act 2006Sopher + Co LLP will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

This report was approved by the board on 23 July 2024 and signed on its behalf.
 





R Fadlun
Director

Page 4

 
KAVANE LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KAVANE LIMITED
 

Opinion


We have audited the financial statements of Kavane Limited (the 'Company') for the period ended 31 March 2024, 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 policiesThe 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).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 March 2024 and of its loss for the period then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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 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.


Conclusions relating to going concern


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.


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 financial statements 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.


Page 5

 
KAVANE LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KAVANE LIMITED (CONTINUED)

Other information


The Directors are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Auditors' report thereon. 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.


In connection with our audit of the financial statementsour 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.


Opinion 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 Strategic report and the Directors' report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the Directors' report have 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 Strategic report or 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 financial statements 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.


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 3, the Directors are responsible for the preparation of the financial statements 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 financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, 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.


Page 6

 
KAVANE LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KAVANE LIMITED (CONTINUED)

Auditors' responsibilities for the audit of the financial statements
 

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:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: 
 
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; 
we identified the laws and regulations applicable to the Company through discussions with directors and other management, and from our commercial knowledge and experience of similar businesses; 
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the Company, including the Companies Act 2006, taxation legislation and data protection and anti-bribery legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and 
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. 

We assessed the susceptibility of the Company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: 
 
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; 
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and 
understanding the design of the Company’s remuneration policies. 

To address the risk of fraud through management bias and override of controls, we: 
 
performed analytical procedures to identify any unusual or unexpected relationships; 
tested journal entries to identify unusual transactions; 
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and 
investigated the rationale behind significant or unusual transactions. 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: 
 
agreeing financial statement disclosures to underlying supporting documentation
enquiring of management as to actual and potential litigation and claims; and 
reviewing correspondence with HMRC and relevant regulators.


 
Page 7

 
KAVANE LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KAVANE LIMITED (CONTINUED)

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. 
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.


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.


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 2006Our 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.





Sean Brennan (FCCA) (Senior statutory auditor)
  
for and on behalf of
Sopher + Co LLP
 
Chartered Accountants
Statutory Auditors
  
5 Elstree Gate
Elstree Way
Borehamwood
Hertfordshire
WD6 1JD

23 July 2024
Page 8

 
KAVANE LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 MARCH 2024

2024
2022
Note
£
£

  

Turnover
 4 
128,546
72,143

Cost of sales
  
(56,734)
(26,124)

Gross profit
  
71,812
46,019

Administrative expenses
  
(247,631)
(190,322)

Operating loss
 5 
(175,819)
(144,303)

Interest receivable and similar income
 9 
135
-

Interest payable and similar expenses
 10 
(1)
(1)

Loss before tax
  
(175,685)
(144,304)

Tax on loss
 11 
10,675
14,843

Loss for the financial period
  
(165,010)
(129,461)

The notes on pages 13 to 24 form part of these financial statements.

Page 9

 
KAVANE LIMITED
REGISTERED NUMBER:10784333

STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2024

31 March
30 September
2024
2022
Note
£
£

Fixed assets
  

Intangible fixed assets
 12 
239,166
344,166

Tangible fixed assets
 13 
21,522
31,822

  
260,688
375,988

Current assets
  

Debtors: amounts falling due within one year
 14 
81,089
54,745

Bank and cash balances
  
5,235
16,748

  
86,324
71,493

Current liabilities
  

Creditors: amounts falling due within one year
 15 
(204,578)
(137,537)

Net current liabilities
  
 
 
(118,254)
 
 
(66,044)

  

Net assets
  
142,434
309,944


Capital and reserves
  

Called up share capital 
 17 
512,500
515,000

Profit and loss account
 18 
(370,066)
(205,056)

  
142,434
309,944


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 23 July 2024.




R Fadlun
Director

The notes on pages 13 to 24 form part of these financial statements.

Page 10

 
KAVANE LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 MARCH 2024


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 October 2022
515,000
(205,056)
309,944



Loss for the period
-
(165,010)
(165,010)

Shares redeemed during the period
(2,500)
-
(2,500)


At 31 March 2024
512,500
(370,066)
142,434



STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 30 SEPTEMBER 2022


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 November 2021
655,000
(75,595)
579,405



Loss for the period
-
(129,461)
(129,461)

Shares redeemed during the period
(140,000)
-
(140,000)


At 30 September 2022
515,000
(205,056)
309,944


The notes on pages 13 to 24 form part of these financial statements.

Page 11

 
KAVANE LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 MARCH 2024

31 March
30 September
2024
2022
£
£

Cash flows from operating activities

Loss for the financial period
(165,010)
(129,461)

Adjustments for:

Amortisation of intangible assets
105,000
64,167

Depreciation of tangible assets
14,705
816

Interest paid
1
1

Interest received
(135)
-

Taxation charge
(10,675)
(14,843)

(Increase)/decrease in debtors
(15,669)
156,875

Increase in creditors
67,041
82,669

Corporation tax received/(paid)
-
(7,127)

Net cash generated from operating activities

(4,742)
153,097


Cash flows from investing activities

Purchase of tangible fixed assets
(4,405)
(30,026)

Interest received
135
-

Net cash from investing activities

(4,270)
(30,026)

Cash flows from financing activities

Shares redeemed during period
(2,500)
(140,000)

Interest paid
(1)
(1)

Net cash used in financing activities
(2,501)
(140,001)

Net (decrease) in cash and cash equivalents
(11,513)
(16,930)

Cash and cash equivalents at beginning of period
16,748
33,678

Cash and cash equivalents at the end of period
5,235
16,748


Cash and cash equivalents at the end of period comprise:

Cash at bank and in hand
5,235
16,748

5,235
16,748


The notes on pages 13 to 24 form part of these financial statements.

Page 12

 
KAVANE LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024

1.


General information

Kavane Limited is a limited liability company incorporated and domiciled in England and Wales, with its registered office address at 20 Coxon Street Spondon, Derby, Derbyshire, England, DE21 7JG.
The principal activity of the Company during the period was that of financial and wealth management.
During the period, the Company re-registered from a public company to a private limited company.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with 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:

 
2.2

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is £ sterling.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

Page 13

 
KAVANE LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.3

Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Turnover from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.4

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.5

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.6

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Page 14

 
KAVANE LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.7

Current and deferred taxation

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

 
2.8

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Statement of comprehensive income over its useful economic life.

Other intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 
2.9

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 15

 
KAVANE LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024

2.Accounting policies (continued)


2.9
Tangible fixed assets (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:

Motor vehicles
-
33%
Office equipment
-
25%
Computer equipment
-
33%

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.

 
2.10

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.11

Basic financial instruments

The Company only enters into transactions that result in basic financial instruments such as trade and other debtors, trade and other creditors, cash at bank and in hand, loans to/from related parties.
Trade debtors, other debtors and loans to related parties are recognised initially at the transaction price less attributable transaction costs. Trade creditors, other creditors and loans from related parties are recognised initially at transaction price plus attributable transaction costs. Subsequently they are measured at amortised cost using the effective interest method, less any impairment losses in the case of trade and other debtors, and loans to related parties.
Cash and cash equivalents comprise cash balances and call deposits. Bank overdrafts that are repayable on demand and form an integral part of the company's cash management.

Page 16

 
KAVANE LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In preparing these financial statements, the Directors have made the following judgements:
a) Determine whether leases entered into by the Company as a lessee are operating or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis.
b) Determine whether there are indicators of impairment of the Company's tangible assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset.
In preparing these financial statements, the directors have considered the following key sources of estimation uncertainty:
a) Tangible assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and estimated disposal values


4.


Turnover

Analysis of turnover by country of destination:

2024
2022
£
£

United Kingdom
41,127
23,139

Rest of Europe
58,391
30,138

Rest of the world
29,028
18,866

128,546
72,143



5.


Operating loss

The operating loss is stated after charging:

2024
2022
£
£

Depreciation of tangible assets
14,705
816

Amortisation of intangible assets, including goodwill
105,000
64,167

Exchange differences
(1,671)
(3,257)

Other operating lease rentals
30,848
20,060

Page 17

 
KAVANE LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024

6.


Auditors' remuneration

During the period, the Company obtained the following services from the Company's auditors and their associates:


2024
2022
£
£

Fees payable to the Company's auditors and their associates for the audit of the Company's financial statements
5,700
5,000

7.


Employees




The average monthly number of employees, including the Directors, during the period was as follows:


        2024
        2022
            No.
            No.







Directors
2
2


8.


Key management compensation

Key management are the Directors of the Company, who are also the Shareholders of the Company. No remuneration has been paid to the Directors during the period.


9.


Interest receivable

2024
2022
£
£


Other interest receivable
135
-


10.


Interest payable and similar expenses

2024
2022
£
£


Other loan interest payable
1
1

Page 18

 
KAVANE LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024

11.


Taxation


2024
2022
£
£

Corporation tax


Current tax on profits for the year
-
(7,127)


Deferred tax


Origination and reversal of timing differences
(10,675)
(7,716)


Taxation on loss on ordinary activities
(10,675)
(14,843)

Factors affecting tax charge for the period

The tax assessed for the period is higher than (2022 - higher than) the standard rate of corporation tax in the UK of 19% (2022 - 19%). The differences are explained below:

2024
2022
£
£


Loss on ordinary activities before tax
(175,685)
(144,304)


Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2022 - 19%)
(33,380)
(27,418)

Effects of:


Non-tax deductible amortisation of goodwill and impairment
19,950
12,192

Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
2,823
290

Capital allowances for period in excess of depreciation
1,820
(5,623)

Unrelieved tax losses carried forward
8,787
13,432

Deferred tax movements
(10,675)
(7,716)

Total tax charge for the period
(10,675)
(14,843)


Factors that may affect future tax charges

The Company has estimated tax losses of £116,657 available to carry forward against future taxable profits.

Page 19

 
KAVANE LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024

12.


Intangible assets






Goodwill

£



Cost


At 1 October 2022
700,000



At 31 March 2024

700,000



Amortisation


At 1 October 2022
355,834


Charge for the period on owned assets
105,000



At 31 March 2024

460,834



Net book value



At 31 March 2024
239,166



At 30 September 2022
344,166



Page 20

 
KAVANE LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024

13.


Tangible fixed assets







Motor vehicles
Office equipment
Computer equipment
Total

£
£
£
£



Cost or valuation


At 1 October 2022
29,885
2,759
6,335
38,979


Additions
-
-
4,405
4,405



At 31 March 2024

29,885
2,759
10,740
43,384



Depreciation


At 1 October 2022
-
1,278
5,879
7,157


Charge for the period on owned assets
11,207
950
2,548
14,705



At 31 March 2024

11,207
2,228
8,427
21,862



Net book value



At 31 March 2024
18,678
531
2,313
21,522



At 30 September 2022
29,885
1,481
456
31,822


14.


Debtors

31 March
30 September
2024
2022
£
£


Trade debtors
29,170
18,582

Other debtors
25,309
21,679

Prepayments and accrued income
8,219
6,768

Deferred taxation
18,391
7,716

81,089
54,745


Page 21

 
KAVANE LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024

15.


Creditors: Amounts falling due within one year

31 March
30 September
2024
2022
£
£

Trade creditors
88,671
8,393

Other creditors
88,528
58,666

Accruals and deferred income
27,379
70,478

204,578
137,537



16.


Deferred taxation






2024


£






At beginning of year
7,716


Charged to profit or loss
10,675



At end of year
18,391

The deferred tax asset is made up as follows:

31 March
30 September
2024
2022
£
£


Accelerated capital allowances
(3,843)
(5,716)

Tax losses carried forward
22,234
13,432

18,391
7,716

Page 22

 
KAVANE LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024

17.


Share capital

31 March
30 September
2024
2022
£
£
Allotted, called up and fully paid



72,000 (2022 - 72,000) A Ordinary shares of £1 each
72,000
72,000
Nil (2022 - 2,500) B Ordinary shares of £1 each
-
2,500
500 (2022 - 500) C Ordinary shares of £1 each
500
500
440,000 (2022 - 440,000) Redeemable Non-Cumulative shares of £1 each
440,000
440,000

512,500

515,000

A Ordinary shares have full voting rights and are entitled to dividends. B Ordinary shares have no voting rights but are entitled to dividends. C Ordinary shares have 1% of total voting rights and are entitled to dividends. Redeemable Non-Cumulative shares can be redeemed at the option of the company and have no voting rights but are entitled to dividends.
During the period, 2,500 B Ordinary shares were redeemed at par value.



18.


Reserves

Profit and loss account

The profit and loss reserve contains the cumulative balance of retained profit and losses since the company started trading. It is a distributable reserve.


19.


Commitments under operating leases

At 31 March 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

31 March
30 September
2024
2022
£
£


Not later than 1 year
32,351
32,351

Later than 1 year and not later than 5 years
40,846
89,372

73,197
121,723

Page 23

 
KAVANE LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024

20.


Related party transactions

During the period the Company made purchases totalling £50,074 (2022 - £34,124) from entities under common control.
At the Statement of Financial Position date, the Company owed £109,336 to (2022 - £24,029)  entities under common control.


21.


Controlling party

The ultimate controlling party is R Fadlun by virtue of his shareholding.

 
Page 24