Company registration number 06625691 (England and Wales)
KENKKO CORPORATION LIMITED AND SUBSIDIARIES
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
KENKKO CORPORATION LIMITED AND SUBSIDIARIES
COMPANY INFORMATION
Directors
J Lang
O Lang
Secretary
O Lang
Company number
06625691
Registered office
8 Heriot Road
London
United Kingdom
NW4 2DG
Accountants
SPW (UK) LLP
Gable House
239 Regents Park Road
London
N3 3LF
KENKKO CORPORATION LIMITED AND SUBSIDIARIES
CONTENTS
Page
Directors' report
1
Accountants' report
2
Profit and loss account
3
Group statement of comprehensive income
4
Group and company balance sheets
5 - 6
Group statement of changes in equity
7
Company statement of changes in equity
8
Notes to the financial statements
9 - 22
KENKKO CORPORATION LIMITED AND SUBSIDIARIES
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -
The directors present their annual report and financial statements for the year ended 31 December 2023.
Principal activities
The principal activity of the group continued to be that of commission agents, dealers and international traders in dried fruit and nuts.
Results and dividends
The results for the year are set out on page 3.
No dividends were paid during the year.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
J Lang
O Lang
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
O Lang
Director
4 December 2024
KENKKO CORPORATION LIMITED AND SUBSIDIARIES
ACCOUNTANTS' REPORT TO THE BOARD OF DIRECTORS ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF KENKKO CORPORATION LIMITED AND SUBSIDIARIES FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Kenkko Corporation Limited And Subsidiaries for the year ended 31 December 2023 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the group statement of changes in equity, the company statement of changes in equity and the related notes from the accounting records and from information and explanations you have given us.
As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at https://www.icaew.com/regulation.
This report is made solely to the board of directors of Kenkko Corporation Limited And Subsidiaries, as a body, in accordance with the terms of our engagement letter dated 14 June 2023. Our work has been undertaken solely to prepare for your approval the financial statements of Kenkko Corporation Limited And Subsidiaries and state those matters that we have agreed to state to the board of directors of Kenkko Corporation Limited And Subsidiaries, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Kenkko Corporation Limited And Subsidiaries and its board of directors as a body, for our work or for this report.
It is your duty to ensure that Kenkko Corporation Limited And Subsidiaries has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and loss of Kenkko Corporation Limited And Subsidiaries. You consider that Kenkko Corporation Limited And Subsidiaries is exempt from the statutory audit requirement for the year.
We have not been instructed to carry out an audit or a review of the financial statements of Kenkko Corporation Limited And Subsidiaries. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.
SPW (UK) LLP
Chartered Accountants
Gable House
239 Regents Park Road
London
N3 3LF
4 December 2024
KENKKO CORPORATION LIMITED AND SUBSIDIARIES
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
2023
2022
Notes
$
$
Turnover
3
34,945,875
26,947,408
Cost of sales
(32,908,052)
(25,507,907)
Gross profit
2,037,823
1,439,501
Administrative expenses
(1,780,344)
(1,512,768)
Other operating income
108,000
110,000
Operating profit
4
365,479
36,733
Interest payable and similar expenses
7
(231,688)
(100,099)
Profit/(loss) before taxation
133,791
(63,366)
Tax on profit/(loss)
8
275
706
Profit/(loss) for the financial year
134,066
(62,660)
Profit/(loss) for the financial year is all attributable to the owners of the parent company.
The profit and loss account has been prepared on the basis that all operations are continuing operations.
KENKKO CORPORATION LIMITED AND SUBSIDIARIES
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
2023
2022
$
$
Profit/(loss) for the year
134,066
(62,660)
Other comprehensive income
-
-
Cash flow hedges gain arising in the year
Total comprehensive income for the year
134,066
(62,660)
Total comprehensive income for the year is all attributable to the owners of the parent company.
KENKKO CORPORATION LIMITED AND SUBSIDIARIES
GROUP AND COMPANY BALANCE SHEETS
AS AT
31 DECEMBER 2023
31 December 2023
2023-12-31
- 5 -
Group
Company
2023
2022
2023
2022
Notes
$
$
$
$
Fixed assets
Tangible assets
11
4,298
1,846
4,298
1,846
Investments
12
2
2
4,298
1,846
4,300
1,848
Current assets
Stocks
15
2,120,857
2,731,493
2,120,857
2,731,493
Debtors
16
3,744,025
2,543,866
3,557,203
2,471,533
Cash at bank and in hand
47,704
67,630
42,148
62,894
5,912,586
5,342,989
5,720,208
5,265,920
Creditors: amounts falling due within one year
17
(4,395,165)
(3,956,907)
(5,057,461)
(4,439,877)
Net current assets
1,517,421
1,386,082
662,747
826,043
Total assets less current liabilities
1,521,719
1,387,928
667,047
827,891
Provisions for liabilities
19
142
(133)
142
(133)
Net assets
1,521,861
1,387,795
667,189
827,758
Capital and reserves
Called up share capital
21
1,000,000
1,000,000
1,000,000
1,000,000
Profit and loss reserves
521,861
387,795
(332,811)
(172,242)
Total equity
1,521,861
1,387,795
667,189
827,758
For the financial year ended 31 December 2023 the group was entitled to exemption from audit under section 477 of the Companies Act 2006.
Directors' responsibilities under the Companies Act 2006:
The members have not required the to obtain an audit of its financial statements for the year in question in accordance with section 476;
The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.
These financial statements have been prepared in accordance with the provisions applicable to groups and companies subject to the small companies regime.
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the period was $160,569 (2022 - $104,661 loss).
For the financial year ended 31 December 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
KENKKO CORPORATION LIMITED AND SUBSIDIARIES
GROUP AND COMPANY BALANCE SHEETS (CONTINUED)
AS AT
31 DECEMBER 2023
31 December 2023
- 6 -
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 4 December 2024 and are signed on its behalf by:
04 December 2024
O Lang
Director
Company Registration No. 06625691
KENKKO CORPORATION LIMITED AND SUBSIDIARIES
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
Share capital
Profit and loss reserves
Total
Notes
$
$
$
Balance at 1 January 2022
1,000,000
541,455
1,541,455
Year ended 31 December 2022:
Loss and total comprehensive income
-
(62,660)
(62,660)
Dividends
9
-
(91,000)
(91,000)
Balance at 31 December 2022
1,000,000
387,795
1,387,795
Year ended 31 December 2023:
Profit and total comprehensive income
-
134,066
134,066
Balance at 31 December 2023
1,000,000
521,861
1,521,861
KENKKO CORPORATION LIMITED AND SUBSIDIARIES
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
Share capital
Profit and loss reserves
Total
Notes
$
$
$
Balance at 1 January 2022
1,000,000
23,419
1,023,419
Year ended 31 December 2022:
Loss and total comprehensive income for the year
-
(104,661)
(104,661)
Dividends
9
-
(91,000)
(91,000)
Balance at 31 December 2022
1,000,000
(172,242)
827,758
Year ended 31 December 2023:
Profit and total comprehensive income
-
(160,569)
(160,569)
Balance at 31 December 2023
1,000,000
(332,811)
667,189
KENKKO CORPORATION LIMITED AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
1
Accounting policies
Company information
Kenkko Corporation Limited And Subsidiaries (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 8 Heriot Road, London, United Kingdom, NW4 2DG
The group consists of Kenkko Corporation Limited And Subsidiaries.
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.
The financial statements are prepared in dollars, 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
Basis of consolidation
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.
The consolidated financial statements incorporate those of Kenkko Corporation Limited And Subsidiaries and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits).
All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
1.3
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
KENKKO CORPORATION LIMITED AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 10 -
1.4
Turnover
Turnover represents amounts receivable for goods and services net of VAT and trade discounts. Turnover is recognised when the goods are dispatched.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.5
Intangible fixed assets other than goodwill
Intangible assets are measured at cost less accumulated amortisation and accumulated impairment losses.
Amortisation 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:
Software
Over 3 years (Fully depreciated)
1.6
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:
Land and buildings Leasehold
Over 5 Years
Fixtures, fittings & equipment
25% on straight line
Computer equipment
33 1/3 % on 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 recognised in the profit and loss account.
1.7
Fixed asset investments
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.8
Impairment of fixed assets
At each reporting period end date, the group 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.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
KENKKO CORPORATION LIMITED AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 11 -
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.
1.9
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.10
Cash and cash equivalents
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.
1.11
Financial instruments
The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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.
KENKKO CORPORATION LIMITED AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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 group after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
KENKKO CORPORATION LIMITED AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
1.12
Equity instruments
Equity instruments issued by the group 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 group.
1.13
Derivatives
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.
A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.
1.14
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
KENKKO CORPORATION LIMITED AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
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 if, and only if, there is 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.
1.15
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.16
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.17
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
1.18
Foreign exchange
In preparing the financial statements, transactions in currencies other than the functional currency (foreign currencies) are recognised at an average rate for the month in which the transaction takes place. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated. Exchange differences are recognised in profit or loss in the period in which they arise.
2
Judgements and key sources of estimation uncertainty
In the application of the group’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.
KENKKO CORPORATION LIMITED AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
3
Turnover
An analysis of the group's turnover is as follows:
2023
2022
$
$
Turnover analysed by class of business
Sale of goods
34,444,389
26,547,087
Commission
501,486
400,321
34,945,875
26,947,408
2023
2022
$
$
Turnover analysed by geographical market
United Kingdom
1,534,860
1,640,103
European Union
24,514,025
10,841,923
Others
8,896,990
14,465,382
34,945,875
26,947,408
4
Operating profit
2023
2022
$
$
Operating profit for the year is stated after charging/(crediting):
Exchange gains
(3,900)
(208,868)
Depreciation of owned tangible fixed assets
1,511
4,132
Operating lease charges
7,436
7,900
5
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Management
4
4
2
2
Clerical and administration
5
3
5
3
Selling and marketing
7
9
7
9
Total
16
16
14
14
KENKKO CORPORATION LIMITED AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
5
Employees
(Continued)
- 16 -
Their aggregate remuneration comprised:
Group
Company
2023
2022
2023
2022
$
$
$
$
Wages and salaries
935,022
888,094
935,022
888,094
Social security costs
110,089
106,190
110,089
106,190
Pension costs
19,534
20,885
19,534
20,885
1,064,645
1,015,169
1,064,645
1,015,169
6
Directors' remuneration
2023
2022
$
$
Remuneration for qualifying services
347,762
348,425
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
$
$
Remuneration for qualifying services
235,979
236,429
7
Interest payable and similar expenses
2023
2022
$
$
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
231,688
100,099
8
Taxation
2023
2022
$
$
Deferred tax
Origination and reversal of timing differences
(275)
(706)
KENKKO CORPORATION LIMITED AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
8
Taxation
(Continued)
- 17 -
The actual credit for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
$
$
Profit/(loss) before taxation
133,791
(63,366)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
31,468
(12,040)
Tax effect of expenses that are not deductible in determining taxable profit
2,321
2,711
Unutilised tax losses carried forward
48,311
17,357
Change in unrecognised deferred tax assets
(275)
(706)
Adjustments in respect of prior years
(46,573)
(7,980)
Group relief
(33,397)
Permanent capital allowances in excess of depreciation
(53)
(48)
Taxation charge/(credit)
1,802
(706)
Taxation credit in the financial statements
(275)
(706)
Reconciliation - the current year tax charge does not reconcile to the above analysis. Please review figures in the database.
2,077
-
9
Dividends
2023
2022
Recognised as distributions to equity holders:
$
$
Final paid
-
91,000
10
Intangible fixed assets
Group
Software
$
Cost
At 1 January 2023 and 31 December 2023
49,611
Amortisation and impairment
At 1 January 2023 and 31 December 2023
49,611
Carrying amount
At 31 December 2023
At 31 December 2022
KENKKO CORPORATION LIMITED AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
10
Intangible fixed assets
(Continued)
- 18 -
Company
Software
$
Cost
At 1 January 2023 and 31 December 2023
49,611
Amortisation and impairment
At 1 January 2023 and 31 December 2023
49,611
Carrying amount
At 31 December 2023
At 31 December 2022
11
Tangible fixed assets
Group
Land and buildings Leasehold
Fixtures, fittings & equipment
Computer equipment
Total
$
$
$
$
Cost
At 1 January 2023
58,688
40,283
99,569
198,540
Additions
3,963
3,963
At 31 December 2023
58,688
40,283
103,532
202,503
Depreciation and impairment
At 1 January 2023
57,180
39,945
99,569
196,694
Depreciation charged in the year
822
338
351
1,511
At 31 December 2023
58,002
40,283
99,920
198,205
Carrying amount
At 31 December 2023
686
3,612
4,298
At 31 December 2022
1,508
338
1,846
KENKKO CORPORATION LIMITED AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
11
Tangible fixed assets
(Continued)
- 19 -
Company
Land and buildings Leasehold
Fixtures, fittings & equipment
Computer equipment
Total
$
$
$
$
Cost
At 1 January 2023
58,688
40,283
99,569
198,540
Additions
3,963
3,963
At 31 December 2023
58,688
40,283
103,532
202,503
Depreciation and impairment
At 1 January 2023
57,180
39,945
99,569
196,694
Depreciation charged in the year
822
338
351
1,511
At 31 December 2023
58,002
40,283
99,920
198,205
Carrying amount
At 31 December 2023
686
3,612
4,298
At 31 December 2022
1,508
338
1,846
12
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
$
$
$
$
Investments in subsidiaries
13
2
2
Movements in fixed asset investments
Company
Shares in subsidiaries
$
Cost or valuation
At 1 January 2023 and 31 December 2023
2
Carrying amount
At 31 December 2023
2
At 31 December 2022
2
13
Subsidiaries
Details of the company's subsidiaries at 31 December 2023 are as follows:
KENKKO CORPORATION LIMITED AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
13
Subsidiaries
(Continued)
- 20 -
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Kenkko (UK) Limited
England and Wales
Commission agents in dried fruits and nuts
Ordinary
100.00
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
$
$
Kenkko (UK) Limited
854,674
294,635
14
Financial instruments
Group
Company
2023
2022
2023
2022
$
$
$
$
Carrying amount of financial assets
Debt instruments measured at amortised cost
3,721,692
2,464,041
3,551,709
2,405,825
Carrying amount of financial liabilities
Measured at amortised cost
4,357,763
3,929,542
5,020,059
4,412,512
15
Stocks
Group
Company
2023
2022
2023
2022
$
$
$
$
Finished goods and goods for resale
2,120,857
2,731,493
2,120,857
2,731,493
16
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
$
$
$
$
Trade debtors
3,486,801
2,181,576
3,316,818
2,123,360
Other debtors
251,730
333,502
234,891
319,385
Prepayments and accrued income
5,494
28,788
5,494
28,788
3,744,025
2,543,866
3,557,203
2,471,533
KENKKO CORPORATION LIMITED AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
17
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
$
$
$
$
Bank loans and overdrafts
18
3,237,276
3,036,061
3,237,276
3,036,061
Trade creditors
874,660
647,589
874,660
627,565
Amounts owed to group undertakings
797,750
588,044
Other taxation and social security
37,402
27,365
37,402
27,365
Other creditors
104,629
59,029
2,151
4,234
Accruals and deferred income
141,198
186,863
108,222
156,608
4,395,165
3,956,907
5,057,461
4,439,877
18
Loans and overdrafts
Group
Company
2023
2022
2023
2022
$
$
$
$
Bank overdrafts
3,237,276
3,036,061
3,237,276
3,036,061
Payable within one year
3,237,276
3,036,061
3,237,276
3,036,061
19
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
2023
2022
Group
$
$
Accelerated capital allowances
(142)
133
Liabilities
Liabilities
2023
2022
Company
$
$
Accelerated capital allowances
(142)
133
The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
KENKKO CORPORATION LIMITED AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
20
Retirement benefit schemes
2023
2022
Defined contribution schemes
$
$
Charge to profit or loss in respect of defined contribution schemes
19,534
20,885
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
21
Share capital
Group and company
2023
2022
Ordinary share capital
$
$
Issued and fully paid
1,000,000 Ordinary shares of $1 each
1,000,000
1,000,000
22
Operating lease commitments
Lessee
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2023
2022
2023
2022
$
$
$
$
Within one year
72,446
68,859
72,446
68,859
Between two and five years
157,749
219,103
157,749
219,103
230,195
287,962
230,195
287,962
23
Controlling party
The ultimate parent company is Claiborne Assets Inc., a company registered in British Virgin Islands.
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