REGISTERED NUMBER: 02552427 (England and Wales)

Klash Clothing Co. Ltd

Strategic Report, Directors' Report and

Financial Statements for the Year Ended 31 December 2024

Page

Company Information

1

Strategic Report

2

Directors' Report

5

Independent Auditors' Report

7

Profit and Loss Account

11

Statement of Comprehensive Income

12

Balance Sheet

13

Statement of Changes in Equity

14

Cash Flow Statement

15

Notes to the Cash Flow Statement

16

Notes to the Financial Statements

17

DIRECTORS:

Mr M Shafiq

Mr M Ashfaq

SECRETARY:

Mr M Ashfaq

REGISTERED OFFICE:

Unit M

Arkwright Street

Westwood Industrial Estate

Oldham

Lancs.

OL9 9LZ

REGISTERED NUMBER:

02552427 (England and Wales)

AUDITORS:

SCB (Accountants) Limited

31 Sackville street

Manchester

M1 3LZ

The directors present their strategic report for the year ended 31 December 2024.

PRINCIPAL ACTIVITY

The principal activity of the company is the processing and distribution of fashion and designer wear.

FAIR REVIEW OF THE BUSINESS

The directors consider that the company has traded well throughout the year. The directors are satisfied with the financial position at the year end and are hopeful that the company can maintain its current performance in the foreseeable future. Retained earnings stand at £1,504,300 as at the balance sheet date and the company has considerable cash reserves to fund its future working capital and expansion projects in the forthcoming year.

FUTURE DEVELOPMENTS

The company will continue to operate in processing and distribution of fashion and designer wear.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks and uncertainties facing the company are reviewed in detail by the directors and no material additional risk or uncertainty has been identified other than those detailed below. These risks are broadly accompanied with competitive, operational and financial risks. The directors risk management objectives consist of identifying and monitoring those risks which could have an adverse impact on the company assets, profitability or cash flows. As all sales are based on orders received, the risk of stock obsolescence is mitigated, and with all customer orders are closely monitored, and contact with suppliers maintained through the manufacturing process supply chain factors and risk is also reduced. The company is exposed to financial risks including credit risk, liquidity risk, and market risk, arising from the company's normal business activities. These risks and the company's approach to dealing with them are discussed below.

COMPETITIVE RISK

The company operates in processing and distribution of fashion and designer wear. The markets remain competitive with price and margin fluctuation, which are dependent on relationships with key suppliers. Additionally, the uncertainty surrounding the economy due to the direct result of the United Kingdom's exit remain prominent factors affecting the sector.

OPERATIONAL RISK

The main operational risk relating to the company's operations in processing and distribution of fashion and designer wear are through relationships with the customers and quality of products to client specifications. The company's ability to provide products to its customers depends on maintaining relationships. The overall risk is mitigated by ensuring that the orders are delivered to client's specification and quality products to the company to enable operations to grow.

PRICE RISKS

The company's exposure to price risk is based on its operation to provide fashion and designer wear. The fluctuation has impact on the company margins and profitability. There is also some exposure product price risk based on its operations. The directors manage exposure based on working with their suppliers and controlling purchasing volumes and providing high level of service to customers. The company directors ensure they review and manage their policies to controls the level of risk through diversification of products they provide.

FOREIGN EXCHANGE RISKS

The company has certain balances due to and from customers, suppliers and related parties in other currencies, primarily in EURO & USD, and the company is therefore exposed to currency fluctuations. As a matter of policy, the company chooses not to currently use financial derivatives or currency hedging to manage its exposure and the directors review exposures to risk and review currency fluctuations on an ongoing basis to ensure any adverse effect is limited.

CREDIT RISK

The company's principal financial assets are bank balances, trade and other receivables. The company's credit risk is primarily attributable to its trade receivables and balances from the related parties. The company gives significant attention to credit risk and manages the risk though credit control procedures to ensure that credit risk is at an acceptable level for its future operations.

LIQUIDITY RISK

Liquidity risk is the risk that insufficient working capital will be generated by the company's business activities and that in this event suitable sources of funding may not be available. The company ensures that sufficient cash is available to fund ongoing operations and has sufficient cash reserves for its operations.

KEY PERFORMANCE INDICATORS

The directors of the company use a variety of financial performance indicators, including turnover, total operating profit, profit after tax, shareholders' funds and average employees. These are reviewed and assessed by the board and appropriate action taken to ensure growth targets are being achieved.

The company's key financial and non-performance indicator for the year are as follows:

2024

2023

£

£

Turnover

37,952,214

29,314,197

Total operating profit

5,226,752

4,657,299

Profit/(loss) after tax

3,987,168

3,582,612

Shareholder's Fund

1,504,302

1,017,134

Average Employees

2

2

FINANCIAL INSTRUMENTS

The company has a normal level of exposure to price, credit, liquidity and cash flow risks arising from trading activities which are conducted in sterling and foreign currency for which company minimise exposure to exchange rate volatility through its internal management processes. The company does not enter into any formally designated hedging arrangements.

SECTION 172(1) STATEMENT

The directors are aware of their duty under s.172 of the Companies Act 2006 and consider that they have fulfilled their individual and collective duty to act in the way they would consider, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole and, in doing so, to have regard (amongst other matters) to:

(a) the likely consequences of any decision in the long term;

(b) the interests of the company's employees;

(c) the need to foster the company's business relationships with suppliers, customers and others;

(d) the impact of the company's operations on the community and the environment;

(e) the desirability of the company maintaining a reputation for high standards of business conduct; and

(f) the need to act fairly as between members of the company

EMPLOYEES

The directors are committed to promoting an engaged and healthy workforce, recognising the importance of both physical and mental wellbeing. They engage with team members through regular team meetings and an open-door policy, which promotes strong communication channels through the business.

They are committed to equal opportunities in employment and creating a workplace where everyone is treated with fairness, dignity and respect. It is their policy to ensure that all employees are treated no less favorably on the grounds of disability and are not subject to unlawful discrimination. This policy applies to all aspects of employment including recruitment and selection processes, opportunities for training, development and promotion, and terms and conditions of employment. Through its policies, the company ensures that entry into, and progression within, the company is based solely on personal ability and competence to meet set job criteria.

SUPPLIERS

The directors seek to ensure that suppliers align with the company's values and the high standards of conduct that is set. The directors value the loyalty and commitment of its suppliers and commits to honoring agreements with them, including paying to agreed terms.

CUSTOMERS

The directors work tirelessly to ensure interactions with our customers are trusting, effective and considerate and that there is a synergy of strategic objectives, culture and values.

SHAREHOLDERS

The directors ensure that they frequently engage with the ultimate owners, which promotes and maintains consistently high standards of communication and understanding. Board meetings ensure that more formal matters are discussed in details, and decisions surrounding strategy, operational performance, capital investments and financial structure are documented so decisions may be enacted quickly and reported to the wider stakeholders, as necessary.

ENVIRONMENT

The directors are committed to identifying, managing, and minimizing the environmental impact of business operations and ensure compliance with all applicable environmental legislation and to strive to use pollution prevention and environmental best practices in all areas.

COMMUNITY

With regards to impact on the community, the company is committed to making a positive social and economic impact and understanding and managing any negative impacts of its business operations. In addition, the company seeks to make a positive social contribution through the services provided to customers.

ON BEHALF OF THE BOARD:

Mr M Shafiq - Director

29 September 2025

The directors present their report with the financial statements of the company for the year ended 31 December 2024.

DIVIDENDS

The payment of an dividend of £1,750,000 per share (totalling £3,500,000) for the year ended 31 December 2024 was agreed at a meeting of the board of directors. Particulars of dividend are detailed in note 11 to the financial statements.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2024 to the date of this report.

Mr M Shafiq

Mr M Ashfaq

DISCLOSURE IN THE STRATEGIC REPORT

The company has chosen in accordance with S.414C(11) Companies Act 2006 to set out in the company's strategic report information required by Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 to be contained in the directors report. It has done so in respect of business review, principal risks and uncertainties, future developments and financial instruments.

GOING CONCERN

The directors have adopted the going concern basis in preparing these financial statements after assessing the principal risks. The directors believe the company is well placed to manage its financing and other business risks satisfactorily and have a reasonable expectation that the company will have adequate resources to continue in operation for at least 12 months from the signing date of these financial statements.They therefore consider it appropriate to adopt the going concern basis of accounting in preparing the financial statements.

ENERGY AND CARBON REPORT

As the company has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulation and is not required to report on its emissions, energy consumption or energy efficiency activities.

CHARITABLE CONTRIBUTIONS

During the year ended 31 December 2024, the company made charitable donations totalling £136,317 (2023: £110,341) to a number of local and national charities, supporting initiatives in community welfare, education, healthcare, or industry-related causes.

The company made no political donations and incurred no political expenditure in the current or preceding financial year.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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 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:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	state whether applicable 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 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditor, SCB (Accountants) Limited, will be deemed to be appointed as an auditor pursuant to Section 487 of the Companies Act 2006.

ON BEHALF OF THE BOARD:

Mr M Shafiq - Director

29 September 2025

Opinion

We have audited the financial statements of Klash Clothing Co. Ltd (the 'company') for the year ended 31 December 2024 which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and 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 December 2024 and of its profit for the year 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 UK, including the FRC'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.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Directors' Report, but does not include 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 statements, our 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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Directors' Report for the financial year 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 where 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 Statement of Directors' Responsibilities set out on pages five and six, 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 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.

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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We discussed with the Directors the policies and procedures in place regarding compliance with laws and regulations. We discussed amongst the audit team the identified laws and regulations, and remained alert to any indications of non-compliance.

During the audit we focussed on laws and regulations which could reasonably be expected to give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006, UK tax legislation and distributable profits legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management.

Our procedures in relation to fraud included but were not limited to: inquires of management whether they have any knowledge of any actual, suspected or alleged fraud, and discussions amongst the audit team regarding risk of fraud such as opportunities for fraudulent manipulation of financial statements. We determined that the principal risks related to posting manual journal entries to manipulate financial performance and management bias through judgements in accounting estimates.

We also addressed the risk of management override of internal controls, including testing journals and appropriateness of other entries in the nominal ledger; reviewing transactions around the end of the reporting period; and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the 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 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an 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.

Jeffrey Bor BSc FCA (Senior Statutory Auditor)

For and on behalf of SCB (Accountants) Limited

31 Sackville street

Manchester

M1 3LZ

29 September 2025

TURNOVER

4

37,952,214

29,314,197

Cost of sales

(25,976,518

)

(18,973,843

)

GROSS PROFIT

11,975,696

10,340,354

Production costs

(3,944,000

)

(3,268,000

)

Administrative expenses

(3,163,771

)

(2,491,169

)

4,867,925

4,581,185

Other operating income

5

358,827

76,114

OPERATING PROFIT

7

5,226,752

4,657,299

Interest receivable and similar income

9

25,618

24,343

PROFIT BEFORE TAXATION

5,252,370

4,681,642

Tax on profit

10

(1,265,202

)

(1,099,030

)

PROFIT FOR THE FINANCIAL YEAR

3,987,168

3,582,612

PROFIT FOR THE YEAR

3,987,168

3,582,612

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

3,987,168

3,582,612

FIXED ASSETS

Tangible assets

12

1,669,300

308,943

Investments

13

87,060

73,912

Investment property

14

982,598

1,168,010

2,738,958

1,550,865

CURRENT ASSETS

Stocks

15

5,506,826

2,552,284

Debtors

16

12,842,703

8,656,665

Cash at bank and in hand

4,976,276

2,220,075

23,325,805

13,429,024

CREDITORS

Amounts falling due within one year

17

(24,543,890

)

(13,945,284

)

NET CURRENT LIABILITIES

(1,218,085

)

(516,260

)

TOTAL ASSETS LESS CURRENT LIABILITIES

1,520,873

1,034,605

PROVISIONS FOR LIABILITIES

19

(16,571

)

(17,471

)

NET ASSETS

1,504,302

1,017,134

CAPITAL AND RESERVES

Called up share capital

20

2

2

Retained earnings

1,504,300

1,017,132

SHAREHOLDERS' FUNDS

1,504,302

1,017,134

The financial statements were approved by the Board of Directors and authorised for issue on 29 September 2025 and were signed on its behalf by:

Mr M Shafiq - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

2

1,034,520

1,034,522

Changes in equity

Dividends

-

(3,600,000

)

(3,600,000

)

Total comprehensive income

-

3,582,612

3,582,612

Balance at 31 December 2023

2

1,017,132

1,017,134

Changes in equity

Dividends

-

(3,500,000

)

(3,500,000

)

Total comprehensive income

-

3,987,168

3,987,168

Balance at 31 December 2024

2

1,504,300

1,504,302

Cash flows from operating activities

Cash generated from operations

1

8,698,392

4,095,969

Finance costs paid

309

-

Tax paid

(1,179,574

)

(1,036,039

)

Net cash from operating activities

7,519,127

3,059,930

Cash flows from investing activities

Purchase of tangible fixed assets

(1,501,940

)

(139,890

)

Sale of tangible fixed assets

30,418

-

Sale of fixed asset investments

13

148

Sale of investment property

196,435

-

Investment Revaluation gain

(13,161

)

(7,307

)

Interest received

25,618

24,343

Net cash from investing activities

(1,262,617

)

(122,706

)

Cash flows from financing activities

Interest paid

(309

)

-

Equity dividends paid

(3,500,000

)

(3,600,000

)

Net cash from financing activities

(3,500,309

)

(3,600,000

)

Increase/(decrease) in cash and cash equivalents

2,756,201

(662,776

)

Cash and cash equivalents at beginning of year

2

2,220,075

2,882,851

Cash and cash equivalents at end of year

2

4,976,276

2,220,075

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2024

2023

£

£

Profit before taxation

5,252,370

4,681,642

Depreciation charges

111,165

72,121

Profit on disposal of fixed assets

(11,023

)

-

Finance income

(25,618

)

(24,343

)

5,326,894

4,729,420

(Increase)/decrease in stocks

(2,954,542

)

1,596,235

Increase in trade and other debtors

(3,886,099

)

(1,997,984

)

Increase/(decrease) in trade and other creditors

10,212,139

(231,702

)

Cash generated from operations

8,698,392

4,095,969

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

4,976,276

2,220,075

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

2,220,075

2,882,851

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank and in hand

2,220,075

2,756,201

4,976,276

2,220,075

2,756,201

4,976,276

Total

2,220,075

2,756,201

4,976,276

1.	GENERAL INFORMATION

The company is a private company limited by share capital, incorporated in England.

The address of its registered office is:

Unit M

Westwood Industrial Estate

Arkwright Street

Oldham

OL9 9LZ

2.	STATEMENT OF COMPLIANCE

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3.	ACCOUNTING POLICIES

BASIS OF PREPARATION

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of investment properties measured at fair value through profit or loss.The financial statements are prepared in sterling, which is the functional currency of the entity.

GOING CONCERN

The company made a statutory profit of £3,987,168 for the year end 31 December 2024 (2023: £3,582,612).The Directors have concluded that it is reasonable to adopt a going concern basis in preparing the financial statements.

The Directors have prepared forecasts covering the period of 12 months which includes a number of assumptions in relation to varying levels of sales revenue. Whilst, the company's trading and cashflow forecasts have been prepared using current trading assumptions, the operating environment presents a number of challenges which could negatively impact the actual performance achieved. These challenges include, but not limited to, achieving forecast levels of sales and order intake, the impact of customer confidence as a result of general economic conditions, achieving forecast gross profit margin and improvements, and the director's ability to implement cost saving initiatives in areas of discretionary spend where required.

The company's cashflow forecast and projections, taking account of reasonable and possible changes in trading performance, offset by mitigating actions within the control of management, show that the company will be able to operate comfortably for next 12 months.

Based on the above indicators the directors believe that it remains appropriate to prepare the financial statements on a going concern basis.

RECLASSIFICATION OF COMPARATIVE AMOUNTS

The comparatives figures for Debtors and Creditors have been reclassified to confirm with the presentation adopted for the current period.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

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.

REVENUE RECOGNITION

Turnover is measured at the fair value of the consideration received or receivable for goods supplied, excluding discounts, rebates, value added tax and other sales taxes.

Revenue is the amount derived from ordinary activities and is measured at the fair value of the consideration received or receivable. Revenue is reduced for estimated customer returns, rebates and other similar allowances, and is stated net of VAT.

Revenue from the sale of goods as specified in the strategic report is recognised when all the following conditions are satisfied:

- the company has transferred to the buyer the significant risks and rewards of ownership of the goods;

- the company has retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

- the amount of revenue can be measured reliably;

- it is probable that the economic benefits associated with the transaction will flow to the company; and

- the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Specifically, revenue from the sale of components is recognised when the goods are delivered, and legal title has passed.

TAXATION

Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

DEFERRED TAX

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

FOREIGN CURRENCY TRANSACTIONS AND BALANCES

Profit and loss transactions in foreign currencies are translated into sterling at the exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the closing rates at the balance sheet date and the exchange differences are included in the profit and loss account.

LEASES

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

TANGIBLE ASSETS

Tangible assets are initially recorded at cost, including freehold and leasehold land and buildings, and subsequently stated at cost less any accumulated depreciation and impairment The directors reviewed the carrying values as at 01 January 2024 and 31 December 2024 and are of the opinion the carrying values were in at fair value at both dates.

Director's valuations are based on advice received from independent valuers. Such valuations are performed on an open market basis, being the amounts for which the assets could be exchanged between a knowledgeable, willing buyer and a knowledgeable, willing seller in an arm's length transaction at the valuation date.

DEPRECIATION

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Asset class

Depreciation method and rate

Plant and Machinery

25% reducing balance

Fixtures and Fittings

25% reducing balance

Motor Vehicles

25% reducing balance

Computer Equipment

50% reducing balance

Land and buildings

No depreciation has been provided onfreehold and leasehold land and buildings

INVESTMENTS

Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.

Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.

INVESTMENT PROPERTY

Investment properties are initially recorded at cost, and subsequently stated at cost less any impairment losses.

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually by directors..

Director's valuations are based on advice received from independent valuers. Such valuations are performed on an open market basis, being the amounts for which the assets could be exchanged between a knowledgeable, willing buyer and a knowledgeable, willing seller in an arm's length transaction at the valuation date.

IMPAIRMENT OF FIXED ASSETS

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.

STOCKS

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.Net realisable value is based on the estimated selling price less any estimated completion or selling cost.

When stocks are sold, the carrying amount of those stocks is recognised as an expense in the period in which the related revenue is recognised. The amount of any write-down of stocks to net realisable value and all losses of stocks are recognised as an expense in the period in which the write-down or loss occurs. The amount of any reversal of any write-down of stocks is recognised as a reduction in the amount of inventories recognised as an expense in the period in which the reversal occurs.

PROVISIONS

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense.

Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

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.

The company's bankers hold a debenture covering all the assets of the company, and an unlimited inter-company guarantee over all the assets of the Group Companies. The other companies in the group are Klash Holdings Limited, Klash Properties Limited and Klash Limited.

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.

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.

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.

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.

FINANCIAL INSTRUMENTS

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets 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.

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 company 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.

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 though 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 company's contractual obligations expire or are discharged or cancelled.

RELATED PARTIES

For the purpose of these financial statements, a party is considered to be related to the Company if: (i) the party has the ability, directly or indirectly, through one or more intermediaries, to control the company , or exercise significant influence over the company in making financial and operating policy decisions, or has joint control over the company. (ii) the Company and the party are subject to common control. (iii) the party is a member of key management personnel of the Company or the Company's parent, or a close family member of such an individual, or is an entity under the control, joint control or significant influence of such individuals. (iv) the party is a close family member of a party referred to in (i) or is an entity under the control, joint control or significant influence of such individuals.or (v) the party, or any member of a group of which it is part, provides key management personnel services to the company or its parent.

Close family member of an individual are those family members who may be expected to influence or be influenced by, that individual in their dealings with the entity.

CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.

(i) Useful economic lives of tangible assets

The annual amortisation charge for intangible assets and depreciation charge for tangible assets are sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary.

(ii) Impairment of debtors

The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience.

(iii) Going concern

The directors consider the company to be a going concern, for the reasons as detailed in accounting policies to these financial statements.

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.