Registration number:
Kinetic Enterprises Limited
for the
Year Ended 31 March 2024
Kinetic Enterprises Limited
Contents
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Company Information |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Accountants' Report |
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Profit and Loss Account |
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Statement of Comprehensive Income |
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Balance Sheet |
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Statement of Changes in Equity |
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Notes to the Unaudited Financial Statements |
Kinetic Enterprises Limited
Company Information
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Directors |
SP Baharani N P Baharani |
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Registered office |
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Bankers |
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Accountants |
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Kinetic Enterprises Limited
Directors' Report for the Year Ended 31 March 2024
The directors present their report and the financial statements for the year ended 31 March 2024.
Directors of the company
The directors who held office during the year were as follows:
Principal activity
The principal activity of the company is import and distribution of health and beauty products.
Review of business
The results for the year and financial position of the company are as shown in the annexed financial statements.
Turnover of the business for the period ended 31 March 2024 was £7,605,043 (2023: £11,409,380).
Profit/(loss) for the financial period after taxation amounted to (£127,739) (2023:(£254,898).
Dividends
During the year the company declared dividends amounting to £75,000 (2023;£75,000).
Future Developments
The company expects to maintain its highly successful relationship with its suppliers and the loyalty of its customers and hopes to improve on its turnover and gross profit margin.
Financial Instruments
The company's principal financial instruments comprise bank balances, trade debtors and trade creditors.
The main purpose of these instruments is to provide finance for its day to day operations.
Since a considerable amount of the company's purchases are in US Dollars there is exposure to currency risks in addition to normal inflationary risks which under the current economic climate may also be a factor.
The trade creditors liquidity risks are managed by ensuring sufficient funds are available to meet the amounts due. The trade debtors liquidity risks are managed by ensuring the prompt collection of outstanding debts.
Taxation Status
The company is a close company within the provision of Income and Corporation Tax Act 2010.
Fixed Assets
The changes in fixed assets are given in notes 7,8 & 9 to the financial statements.
Post balance sheet events
There were no significant events to report.
Related party transactions
The director had no material interest at any time during the year in any contract of significance in relation to the business of the company except as stated in note 17 to the financial statements.
Small companies provision statement
This report has been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
Kinetic Enterprises Limited
Directors' Report for the Year Ended 31 March 2024
Approved and authorised by the
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Kinetic Enterprises Limited
Statement of Directors' Responsibilities
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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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:
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select suitable accounting policies and apply them consistently; |
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make judgements and accounting estimates that are reasonable and prudent; |
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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 enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Chartered Accountants' Report to the Board of Directors on the Preparation of the Unaudited Statutory Accounts of
Kinetic Enterprises Limited
for the Year Ended 31 March 2024
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of Kinetic Enterprises Limited for the year ended 31 March 2024 as set out on pages 6 to 21 from the company's 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
http://www.icaew.com/regulation.
This report is made solely to the Board of Directors of Kinetic Enterprises Limited, as a body, in accordance with the terms of our engagement letter. Our work has been undertaken solely to prepare for your approval the accounts of Kinetic Enterprises Limited and state those matters that we have agreed to state to the Board of Directors of Kinetic Enterprises Limited, 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 Kinetic Enterprises Limited and its Board of Directors as a body for our work or for this report.
It is your duty to ensure that Kinetic Enterprises Limited has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and loss of Kinetic Enterprises Limited. You consider that Kinetic Enterprises Limited 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 accounts of Kinetic Enterprises Limited. 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 accounts.
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Chartered Accountants
London W1T 3AD
Kinetic Enterprises Limited
Profit and Loss Account for the Year Ended 31 March 2024
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Note |
2024 |
01/01/2022 to 31/03/2023 |
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Turnover |
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Cost of sales |
( |
( |
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Gross profit |
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Administrative expenses |
( |
( |
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Other operating income |
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Operating loss |
(159,954) |
(220,813) |
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Other interest receivable and similar income |
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Interest payable and similar expenses |
( |
( |
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37,203 |
14,360 |
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Loss before tax |
( |
( |
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Tax on loss |
( |
( |
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Loss for the financial year |
( |
( |
The above results were derived from continuing operations.
The company has no recognised gains or losses for the year other than the results above.
Kinetic Enterprises Limited
Statement of Comprehensive Income for the Year Ended 31 March 2024
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2024 |
2023 |
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Loss for the year |
( |
( |
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Total comprehensive income for the year |
( |
( |
Kinetic Enterprises Limited
(Registration number: 02565441)
Balance Sheet as at 31 March 2024
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Note |
2024 |
01/01/2022 to 31/03/2023 |
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Fixed assets |
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Tangible assets |
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Investment property |
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Debtors |
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Investments |
1 |
1 |
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Current assets |
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Stocks |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
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Total assets less current liabilities |
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Creditors: Amounts falling due after more than one year |
( |
( |
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Provisions for liabilities |
( |
( |
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Net assets |
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Capital and reserves |
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Called up share capital |
25,000 |
25,000 |
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Other reserves |
558,052 |
558,052 |
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Retained earnings |
7,320,329 |
7,523,068 |
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Shareholders' funds |
7,903,381 |
8,106,120 |
For the financial year ending 31 March 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
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The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. |
Kinetic Enterprises Limited
(Registration number: 02565441)
Balance Sheet as at 31 March 2024
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and FRS 102 ‘The Financial Reporting Standard Applicable in the UK and Republic of Ireland’.
Approved and authorised by the
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Kinetic Enterprises Limited
Statement of Changes in Equity for the Year Ended 31 March 2024
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Share capital |
Fair value reserves |
Retained earnings |
Total |
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At 1 April 2023 |
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Loss for the year |
- |
- |
( |
( |
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Dividends |
- |
- |
( |
( |
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At 31 March 2024 |
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Share capital |
Fair value reserves |
Retained earnings |
Total |
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At 1 January 2022 |
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Loss for the year |
- |
- |
( |
( |
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Dividends |
- |
- |
( |
( |
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Total comprehensive income |
- |
(44,645) |
- |
(44,645) |
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At 31 March 2023 |
25,000 |
558,052 |
7,523,068 |
8,106,120 |
Kinetic Enterprises Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 March 2024
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General information |
The company is a private company limited by share capital, incorporated in UK.
The address of its registered office is:
United Kingdom
The principal place of business is:
Unit 1 Central Park
Central Way
Park Royal
London
NW10 7FY
These financial statements were authorised for issue by the
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Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
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 taxable income.
Kinetic Enterprises Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 March 2024
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
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Asset class |
Depreciation method and rate |
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Short leasehold |
10% on cost |
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Fixtures and fittings |
10% on cost |
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Computer equipment |
33% on cost |
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Investment property
(a) The company's investment properties were valued on an open market basis.
(b) The historical cost of investment property is £120,930
(c) Investment property is included at fair value.Gains are recognised in the income statement.Deferred taxation is provided on these gains at the rate expected to apply when the property is sold.
(d) The gain less the deferred tax is reflected under Fair value reserve in the Balance sheet.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
Kinetic Enterprises Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 March 2024
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Foreign currencies
Transactions in foreign currencies are translated at the foreign exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date
are translated at the foreign exchange rate ruling at that date. Foreign exchange differences arising on translation are recognised in the income statement. Non- monetary assets and liabilities that are measured in terms of the historical cost in a foreign currency are translated using the exchange rate at the date of the transaction.
Long term monetary items are translated at the year end rate.The assets and liabilities of foreign operations arising on consolidation are translated at foreign exchange rates ruling at the balance sheet date. The revenues and expenses of foreign operations are translated at an average rate for the period where this rate approximates to the foreign exchange rates ruling at the dates of the transactions.
Kinetic Enterprises Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 March 2024
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Provisions
Provisions are recognised when the company has an obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
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Staff numbers |
The average number of persons employed by the company (including directors) during the year, was
Kinetic Enterprises Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 March 2024
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Auditors' remuneration |
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2024 |
2023 |
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Audit of the financial statements |
- |
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Other fees to auditors |
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Audit-related assurance services |
- |
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Loss before tax |
Arrived at after charging/(crediting)
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2024 |
2023 |
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Depreciation expense |
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Taxation |
Tax charged/(credited) in the profit and loss account
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2024 |
2023 |
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Current taxation |
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Ated tax |
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Deferred taxation |
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Deferred tax |
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Tax expense in the income statement |
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Kinetic Enterprises Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 March 2024
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Tangible assets |
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Short leasehold |
Fixtures and fittings |
Office equipment |
Total |
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Cost or valuation |
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At 1 April 2023 |
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Additions |
- |
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- |
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At 31 March 2024 |
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Depreciation |
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At 1 April 2023 |
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Charge for the year |
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At 31 March 2024 |
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Carrying amount |
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At 31 March 2024 |
- |
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At 31 March 2023 |
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Investment properties |
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2024 |
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At 1 April |
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At 31 March |
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Leasehold investment property was valued on a vacant open market basis on 9 June 2017 by E McMahon MPhil MRICS. In the opinion of the directors this valuation is still valid.
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2024 |
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Valuation in 2011 |
344,040 |
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Valuation in 2013 |
15,030 |
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Valuation in 2016 |
327,500 |
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Valuation in 2017 |
57,500 |
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Cost |
120,930 |
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865,000 |
Kinetic Enterprises Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 March 2024
If leasehold investment property had not been revalued it would have been included at the following historical cost:
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31 March 2024 |
31 March 2023 |
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Cost |
120,930 |
120,930 |
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Aggregate depreciation |
(56,784) |
(56,784) |
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Fixed assets investments |
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Unlisted investments |
Total |
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Cost or valuation |
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At 1 April 2023 |
1 |
1 |
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At 31 March 2024 |
1 |
1 |
The investments at the balance sheet date represents 2.5% of the issued share capital acquired in Honeyrose Bakery Limited, a company registered in England & Wales.
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Stocks |
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2024 |
2023 |
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Goods in transit |
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Stock |
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Debtors |
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Current |
Note |
2024 |
2023 |
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Trade debtors |
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Amounts owed by related parties |
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Prepayments |
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Other debtors |
150,485 |
146,971 |
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Kinetic Enterprises Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 March 2024
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Non-current |
2024 |
2023 |
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Directors loan account |
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Loan to an employee |
- |
3,299,698 |
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Corporation tax recoverable |
1,507,087 |
1,425,830 |
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Cash at bank and in hand |
The company's bankers have provided credit card facility of £70,000.
Kinetic Enterprises Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 March 2024
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Creditors |
Creditors: amounts falling due within one year
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Note |
2024 |
2023 |
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Due within one year |
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Loans and borrowings |
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Trade creditors |
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Accruals and deferred income |
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Social security and other taxes |
127,713 |
160,817 |
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Corporation tax |
694,903 |
735,524 |
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Other creditors - Invoice discounting |
195,713 |
247,650 |
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Other creditors |
13,391 |
21,823 |
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Creditors: amounts falling due after more than one year
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Note |
2024 |
2023 |
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Due after one year |
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Loans and borrowings |
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Deferred tax |
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Revaluation of investment property |
Other timing differences
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Total |
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At 1 April 2023 |
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Provided for the period |
- |
1,188 |
1,188 |
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At 31 March 2024 |
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Share capital |
Allotted, called up and fully paid shares
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2024 |
2023 |
|||
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No. |
£ |
No. |
£ |
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25,000 |
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25,000 |
Kinetic Enterprises Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 March 2024
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Loans and borrowings |
Non-current loans and borrowings
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2024 |
2023 |
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Other borrowings |
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Current loans and borrowings
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2024 |
2023 |
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Other borrowings |
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Related party transactions |
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Transactions with directors |
|
2024 |
At 1 April 2023 |
Advances to director |
At 31 March 2024 |
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SP Baharani |
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N P Baharani |
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2023 |
At 1 January 2022 |
Advances to director |
At 31 March 2023 |
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SP Baharani |
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Kinetic Enterprises Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 March 2024
Directors' remuneration
The directors' remuneration for the year was as follows:
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2024 |
2023 |
|
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Remuneration |
|
|
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Contributions paid to money purchase schemes |
|
|
|
112,634 |
76,651 |
Dividends paid to directors
|
2024 |
2023 |
|||
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SP Baharani |
||||
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Dividends |
75,000 |
75,000 |
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Interest of £99,807 (2023:£37,694) has been charged on amounts due to the directors.
Rent received of £18,000 (2023:£14,300) by the company represents payment by one of the director for personal use of the company's property.
One of the Director of Kinetic Enterprises Ltd is also a shareholder of another company.At the year end the amount due from the related company was £109,758 (2023:£150,962).
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Pension commitment |
The company operates a defined contribution scheme for its staff under "auto enrolment"
The contribution for the period charged to the profit and loss account amounted to £18,514 (2023:£27,970).
The amounts outstanding at the balance sheet date was £4,635 (2023:£3,916).
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Ultimate controlling party |
The controlling party is S P Baharani.