Registration number: 04601876

Karats Limited

Contents

Company Information	1
Abridged Balance Sheet	2 to 3
Notes to the Unaudited Abridged Financial Statements	4 to 9

Karats Limited

Company Information

Director

Mr Christopher John Welch

Registered office

9 Mount View Feniton Honiton EX14 3EB

Accountants

Easterbrook Eaton Limited Chartered AccountantsEasterbrook Eaton Limited Old Fore Street Sidmouth Devon EX10 8LS

Karats Limited

(Registration number: 04601876)
Abridged Balance Sheet as at 31 March 2025

	Note	2025 £	2024 £
Fixed assets
Intangible assets	4	3,000	6,000
Tangible assets	5	77,128	64,706
		80,128	70,706
Current assets
Stocks	6	1,000	2,000
Debtors		38,698	15,365
Cash at bank and in hand		23,397	18,347
		63,095	35,712
Prepayments and accrued income		1,884	1,978
Creditors: Amounts falling due within one year		(24,505)	(31,949)
Net current assets		40,474	5,741
Total assets less current liabilities		120,602	76,447
Accruals and deferred income		(1,250)	(1,200)
Net assets		119,352	75,247
Capital and reserves
Called up share capital	7	1	1
Retained earnings		119,351	75,246
Shareholders' funds		119,352	75,247

For the financial year ending 31 March 2025 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's responsibilities:

•	The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and
•	The director acknowledges his responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

All of the company’s members have consented to the preparation of an Abridged Balance Sheet in accordance with Section 444(2A) of the Companies Act 2006.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the director has not delivered to the registrar a copy of the Profit and Loss Account.

Approved and authorised by the director on 2 July 2025
 

Karats Limited

(Registration number: 04601876)
Abridged Balance Sheet as at 31 March 2025

......................................... Mr Christopher John Welch Director

Karats Limited

Notes to the Unaudited Abridged Financial Statements for the Year Ended 31 March 2025

1	General information

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

The address of its registered office is:
9 Mount View
Feniton
Honiton
EX14 3EB

The principal place of business is:
Unit 9 Oak Tree Place
Manaton Close
Matford Business Park
Exeter
EX2 8WA

These financial statements were authorised for issue by the director on 2 July 2025.

2	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 abridged 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 abridged 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 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.

Karats Limited

Notes to the Unaudited Abridged Financial Statements for the Year Ended 31 March 2025

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:

Asset class	Depreciation method and rate
Equipment	25% reducing balance basis
Motor vehicles	25% reducing balance basis
Computer equipment	50% reducing balance basis

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life.
An impairment review of Goodwill was carried out in 2017 as a result of which the amortisation rate has been established to accommodate an anticipated useful life of Goodwill of 10 years from 2017, as follows:

Asset class	Amortisation method and rate
Goodwill	10% straight line basis

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.

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.

Karats Limited

Notes to the Unaudited Abridged Financial Statements for the Year Ended 31 March 2025

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

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.

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.

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.

3	Staff numbers

The average number of persons employed by the company (including the director) during the year, was 1 (2024 - 1).

Karats Limited

Notes to the Unaudited Abridged Financial Statements for the Year Ended 31 March 2025

4	Intangible assets

	Total £
Cost or valuation
At 1 April 2024	30,000
At 31 March 2025	30,000
Amortisation
At 1 April 2024	24,000
Amortisation charge	3,000
At 31 March 2025	27,000
Carrying amount
At 31 March 2025	3,000
At 31 March 2024	6,000

5	Tangible assets

	Furniture, fittings and equipment  £	Motor vehicles  £	Total £
Cost or valuation
At 1 April 2024	216,530	26,928	243,458
Additions	18,551	23,745	42,296
Disposals	-	(26,928)	(26,928)
At 31 March 2025	235,081	23,745	258,826
Depreciation
At 1 April 2024	155,764	22,988	178,752
Charge for the year	19,998	5,936	25,934
Eliminated on disposal	-	(22,988)	(22,988)
At 31 March 2025	175,762	5,936	181,698
Carrying amount
At 31 March 2025	59,319	17,809	77,128
At 31 March 2024	60,766	3,940	64,706

Karats Limited

Notes to the Unaudited Abridged Financial Statements for the Year Ended 31 March 2025

6

Stocks

	2025 £	2024 £
Other inventories	1,000	2,000

7	Share capital

Allotted, called up and fully paid shares

	2025		2024
	No.	£	No.	£
Ordinary Shares of £1 each	1	1	1	1

8	Related party transactions

Karats Limited

Notes to the Unaudited Abridged Financial Statements for the Year Ended 31 March 2025

Director's remuneration

The director's remuneration for the year was as follows:

	2025 £	2024 £
Remuneration	12,570	12,570