REGISTERED NUMBER: 11489169 (England and Wales)

Klash Limited

Financial Statements

for the Year Ended 31 December 2024

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

Mr M Ashfaq

Mr M Shafiq

REGISTERED OFFICE:

Unit M Westwood Industrial Estate

Arkwright Street

Oldham

England

OL9 9LZ

REGISTERED NUMBER:

11489169 (England and Wales)

AUDITORS:

SCB (Accountants) Limited

31 Sackville street

Manchester

M1 3LZ

CURRENT ASSETS

Debtors

5

832,926

670,298

Cash at bank and in hand

236,178

217,484

1,069,104

887,782

CREDITORS

Amounts falling due within one year

6

(999,580

)

(844,137

)

NET CURRENT ASSETS

69,524

43,645

TOTAL ASSETS LESS CURRENT LIABILITIES

69,524

43,645

CAPITAL AND RESERVES

Called up share capital

7

100

100

Retained earnings

69,424

43,545

SHAREHOLDERS' FUNDS

69,524

43,645

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Statement of Income and Retained Earnings has not been delivered.

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

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:

Unit M Westwood Industrial Estate

Arkwright Street

Oldham

OL9 9LZ

2.	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).

3.	ACCOUNTING POLICIES

BASIS OF PREPARATION

The 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.

The financial statements are prepared in sterling, which is the functional currency of the entity.

GOING CONCERN

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

At 31 December 2024, the company had net current assets of £69,524 (2023: £43,645) and net profit after tax of £35,879 (2023: £37,838) and the financial statements have been prepared on a going concern basis.

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

Revenue is recognised at the fair value of the consideration received or receivable for goods or services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from service contracts, which typically involve recurring payroll processing services, is recognised as the service is provided to the customer. This is based on the performance obligations being satisfied over time, where the customer simultaneously receives and consumes the benefits of the services provided.

Revenue from consultancy and advisory services related to payroll management, compliance, and process optimization is recognised when the services are delivered. If the consultancy services are delivered over a period, revenue is recognised on a proportionate basis, reflecting the delivery of the services over time.

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.

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 Clothing Co Limited and Klash Properties 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.

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.

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.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

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) 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.

(ii) 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.

4.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 132 (2023 - 124 ) .

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Trade debtors

444,000

327,000

Amounts owed by group undertakings

304,926

4,988

Other debtors

84,000

338,310

832,926

670,298

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Trade creditors

2,500

2,499

Amounts owed to group undertakings

387,900

378,172

Taxation and social security

323,995

260,881

Other creditors

285,185

202,585

999,580

844,137

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 Clothing Co. Limited and Klash Properties.

7.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2024

2023

value:

£

£

100

Ordinary share

1

100

100

8.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Auditors' Report was unqualified.

Jeffrey Bor Bsc FCA (Senior Statutory Auditor)

for and on behalf of SCB (Accountants) Limited

9.	FINANCIAL COMMITMENTS, GUARANTEES AND CONTINGENCIES

The company bankers hold a debenture and inter company guarantee, both of which are unlimited. The inter-company guarantee is with other group companies, Klash Clothing Co Limited, Klash Properties and Klash Holdings Limited.

Only Klash Properties Limited among the group companies has an overdrawn bank balance. The guarantee in place is related to HMRC guarantee from the bank relating to deferred VAT payments due by a group company, Klash Clothing Co Limited.

10.	RELATED PARTY TRANSACTIONS

The company has taken advantage of exemption available under FRS 102 section 33.1A for non disclosure of transaction with wholly owned group companies.

Amounts owed to group companies are repayable on demand and are shown as being due within one year.

11.	PARENT AND ULTIMATE PARENT UNDERTAKING

The company's immediate parent is Klash Holdings Limited, incorporated in England and Wales.

The immediate and ultimate holding company is Klash Holdings Limited, which prepares group financial statements. Klash Holdings Limited is domiciled and registered in England, and has its registered office and principal place of business at Unit M, Westwood Industrial Estate, Arkwright Street, Oldham, OL9 9LZ.

The ultimate control of the company is under Mr Mohammad Ashfaq and Mr Mohammad Shafiq, who together are de facto owners of the company.

12.	AUDITORS' REMUNERATION

The auditor's fee of the company is borne by group company, Klash Clothing Co. Ltd.