Dingsheng XUE Arner Jeffrey HUSSAIN

09759296 (England and Wales)

Unit 103-R, Universal House, 88-94 Wentworth Street LONDON E1 7SA ENGLAND

Intangible assets

556,314 

390,329 

Tangible assets

1,620 

2,024 

Inventories

30,833 

9,014 

Debtors

799,860 

- 

Cash at bank and in hand

22,752 

31,559 

(524,288)

(130,107)

Called up share capital

360,000 

360,000 

Capital contribution reserve

642,611 

- 

Profit and loss account

(115,520)

(57,181)

For the year ending 30 September 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies. The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.

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

Arner Jeffrey HUSSAIN Director Company Registration No. 09759296

Kitakami Limited is a private company, limited by shares, registered in England and Wales, registration number 09759296. The registered office is Unit 103-R, Universal House, , 88-94 Wentworth Street, LONDON, E1 7SA, ENGLAND.

The principal accounting policies adopted in the preparation of the financial statements are set out below and have remained unchanged from the previous year, and also have been consistently applied within the same accounts.

Where necessary, costs may be reclassified between direct and indirect costs to ensure accurate representation in the financial statements. This ensures that only those costs strictly necessary for revenue generation are captured under this category.

The policy for amending accounts ensures all adjustments are conducted transparently, accurately, and in compliance with applicable accounting standards, laws, and regulations. Amendments must be justified with documented evidence, reviewed, and approved by authorized personnel, with major changes requiring higher-level approvals. Each amendment must be recorded with a clear audit trail and communicated transparently to relevant stakeholders if materially impactful. Supporting documentation, reconciliation, and a re-verification process for significant changes help maintain financial integrity. This policy emphasizes robust internal controls, regular employee training, and consistent review to prevent errors and uphold accuracy and accountability in financial reporting.

The preparation of financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses and disclosure requirements for contingent assets and liabilities during and at the date of financial statements. Actual results may differ from those estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions of accounting estimates are recognized in the period in which the estimate is revised and in any future periods affected as required by FRS 102: "The Financial Reporting Standard applicable in the UK and Republic of Ireland".

The directors are legally responsible for ensuring that the financial statements give a true and fair view of the company’s financial position and performance for the financial year and the directors must ensure that the financial statements comply with the Companies Act 2006 requirements, which dictate the structure, disclosure, and content of the financial statements. Directors must prepare the financial statements in accordance with applicable accounting standards, such as FRS 102 (Financial Reporting Standard applicable in the UK and Republic of Ireland) and adopting IFRS (International Financial Reporting Standards) and as per provision of “The Framework for the Preparation and Presentation of Financial Statements” issued by the International Accounting Standard Committee (IASC).

The fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction. The fair value of trade and other short-term receivables are taken to approximate their carrying value. The fair value of financial assets and liabilities approximate their carrying value.

As per Section 32 of FRS -102 “Event after the Reporting Period" are those events favourable and unfavourable, that occur between the end of the reporting year and the date when the financial statement is authorized for issue. Two types of events can be identified: Those that provide evidence of conditions that existed at the end of the reporting year (adjusting events after the reporting date); and Those are indicative of conditions that arose after the reporting year (non-adjusting events after the reporting date). No events after the expiry of the Balance Sheet date and the reporting period have been occurred and found to be reportable.

IFRS 15 establishes a comprehensive framework for determining whether, how much and when revenue is recognized. Under IFRS 15, revenue is recognized when a customer obtain control of the goods or services. Determining the timing of transfer of control at a point in time or over time and requires judgment. The core principle of IFRS 15 is that an entity will recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. IFRS 15 requires application of 5 step model for revenue recognition: 1) Identify the contract(s) with a customer. 2) Identify the performance obligations in the contract. 3) Determine the transaction price. 4) Allocate the transaction price to the performance obligations in the contract; and 5) Recognize revenue when (or as) the entity satisfies a performance obligation. Application of this guidance will depend on the facts and circumstances present in a contract with a customer and will require the exercise of judgment: i) Interest income is recognized when accrued on a time proportion basis; and ii) other income recognized when the right to receive payment established. Kitakami Limited operates as an Authorised Electronic Money Institution providing payment services in compliance with regulatory guidelines. Turnover represents fees earned from transaction processing and associated service charges. Revenue is recognised on an accrual basis and includes only income attributable to completed transactions within the financial year; uncompleted or pending transactions are excluded until completion. The main revenue generated by the company relates to the provision of payment services under Payment Services and Payment system act (Payment Regulations 2017 and Electronic Money Regulations 2011). The transfer of money (money remittance) is generally exempt from VAT under the VAT Act 1994, Schedule 9, Group 5, Item 1. The Company assesses the VAT treatment of each service category and recognises revenue net of any VAT collected on behalf of HMRC.

Cost of revenue comprises amounts directly attributable to generating turnover. This includes third-party processing, network and scheme fees, together with card production, fulfilment and gateway charges. It also encompasses commissions payable to partners that are directly linked to transaction volumes or values, as well as direct employee costs such as wages, salaries, bonuses, employer’s National Insurance and related on-costs for staff whose roles are integral to delivering the Company’s services, including operations, risk and settlement, and customer support functions tied to transaction fulfilment. Costs that are not directly linked to revenue generation are presented within administrative expenses.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that the taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company's liability for current tax is calculated using tax rated that have been enacted or substantively enacted by the reporting end date.

Deferred Tax liabilities are generally recognized for all timing differences and deferred tax assets are recognized to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognized if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit. The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled, or the asset is realized. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and labilities, and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

Plant & machinery

Fixtures & fittings

The cost of replacing or upgrading part of an item of property, plant and equipment is recognized in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Company and its cost can be measured reliably. The carrying amount of the replaced part is derecognized. The costs of the day-to day servicing of property, plant and equipment are recognized in the profit and loss account as incurred. Expenditure on repairs and maintenance of property, Plant & Equipment is treated as expense when incurred. Subsequent expenditure on property, Plant and Equipment is only recognized when the expenditure improves the condition of the asset beyond its originally assessed standard of performance.

In accordance with the provisions of Section 27 of FRS 102, the carrying amount of non-financial assets other than inventories of the Company involved in the manufacturing of the products. If any such indication exists, then the asset's recoverable amount is estimated and impairment losses are recognized in profit and loss account. No such indication of impairment has been observed till the end of the year.

Advances are initially measured at cost. After initial recognition advances are carried at cost less deductions, adjustments or charges to other account heads such as property, plant and equipment, inventory or expenses. Deposits are measured at payment value. Prepayments are initially measured at cost. After initial recognition prepayments are carried at cost less charges to profit and loss account.

Financial assets of the company include cash and cash equivalents, accounts receivable and other receivables. The company initially recognizes receivable on the date they are originated. All other financial assets are recognized initially on the date at which the company becomes a party to the contractual provisions of the transaction. The company derecognizes a financial asset when the contractual rights or probabilities of receiving the cash flows from the asset expire or it transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risk and rewards of ownership of the financial assets are transferred.

The closing stock of Kitakami Limited comprises physical payment cards held in inventory at the year end. These cards represent unsold stock retained for future issuance to customers. Due to temporary regulatory restrictions, no cards were issued or sold during the financial year. Accordingly, the stock acquired in the year ended 30 September 2024 has been carried forward as an addition to the prior year’s closing balance. The card stock is recognised at cost in accordance with standard accounting principles for inventory valuation.

Proceeds from issuance of ordinary shares are recognized as share capital in equity when there is no contractual obligation to transfer cash or other financial assets.

The capital contribution reserve represents amounts recognised when payables of Kitakami Limited are assumed by its parent company. In exchange, the corresponding value is treated as a capital contribution by the parent. These contributions are not repayable, do not give rise to the issue of any additional equity instruments, and are recorded directly in reserves as part of shareholders’ funds. This treatment is in line with FRS 102 Section 2 (Concepts and Pervasive Principles), which requires transactions to be presented according to their substance, and FRS 102 Section 26 (Equity), which permits equity contributions to be recognised directly in reserves where no shares are issued.

During the reporting period, dividends totalling £0 were paid by the company. This distribution reflects the company’s profitability and its commitment to returning value to shareholders. The dividends have been appropriately accounted for in the financial statements, and all necessary disclosures have been made in accordance with UK financial reporting standards. No additional dividend payments were made to any other parties during the reporting period.

During the year, Kitakami Limited entered into transactions with its parent company. Certain payables of the Company were assumed by the parent. In return, the same value was treated as a capital contribution to Kitakami Limited. This transaction gave rise to a transfer to the Capital Contribution Reserve within equity. No amounts are repayable in respect of these contributions, and they do not result in the issue of any additional equity instruments. This disclosure is provided in accordance with FRS 102 Section 33 (Related Party Disclosures), which requires companies to disclose the nature of related party relationships, the nature of the transactions, and any amounts outstanding at the reporting date. Apart from the above, there were no other related party transactions requiring disclosure under FRS 102.

These notes form an integral part of the annexed financial statements and accordingly are to be read in conjunction therewith. The company conducts its business activities primarily through bank channels. In addition to banking transactions, certain business activities are also carried out through cash transactions. On occasion, the company may utilize the director’s personal bank account for specific business-related transactions. All financial activities are recorded in accordance with applicable accounting standards and regulatory requirements to ensure transparency and compliance. Previous year’s figures have been regrouped and/or rearranged whenever considered necessary for the purpose of the current year’s financial presentation.

At 1 October 2023

465,984 

Additions

199,247 

At 30 September 2024

At 1 October 2023

75,655 

Charge for the year

33,262 

At 30 September 2024

At 30 September 2024

At 30 September 2023

At cost 

At cost 

At 1 October 2023

550 

5,883 

6,433 

At 30 September 2024

At 1 October 2023

550 

3,859 

4,409 

Charge for the year

- 

404 

404 

At 30 September 2024

At 30 September 2024

At 30 September 2023

Trade debtors

11,397 

- 

Other debtors

788,463 

- 

VAT

(12,770)

(14,814)

Trade creditors

494,496 

99,269 

Taxes and social security

2,775 

3,309 

Other creditors

- 

4,707 

Loans from directors

39,787 

37,636 

Allotted, called up and fully paid:

1,800 Ordinary shares of £200 each

During the year the average number of employees was 1 (2023: 1).