Karma Drinks UK Limited

	Page
Balance Sheet	1—2
Notes to the Financial Statements	3—7

1. General Information

Karma Drinks UK Limited is a private company, limited by shares, incorporated in England & Wales, the registered number is 08911689 . The registered office is 66 Paul Street, London, England, EC2A 4NA.

2. Accounting Policies

2.1. Basis of Preparation of Financial Statements

The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 section 1A Small Entities "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

2.2. Going Concern Disclosure

The directors believe the company to be a going concern and will continue to give their support to the company over the next 12 months.

2.3. Turnover

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and is recognised at the point that the customer takes delivery of the goods.

2.4. Intangible Fixed Assets and Amortisation - Other Intangible

Other intangible asset is Rebranding. It is amortised to profit and loss account over its estimated economic life of 6 years.

Development costs is amortised to profit and loss account over its estimated economic life of 4 years.

2.5. Tangible Fixed Assets and Depreciation

Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Plant and machinery	25% straight line
Computer equipment	25% straight line

2.6. Leasing and Hire Purchase Contracts

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets.

Assets acquired under hire purchase contracts are depreciated over their useful lives.

Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company.

Obligations under such agreements are included in the creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to profit and loss account as incurred.

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Karma Drinks UK Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2026

2.7. Stocks and Work in Progress

Stocks are valued at the lower of cost and estimated selling price less costs to complete and sell.

2.8. Financial Instruments

Financial assets and financial liabilities are recognised in the balance sheet when the company becomes a party to the contractual provisions of the instrument.

Trade debtors and creditors are classified as basic financial instruments and are recognised at transaction price less any impairment. A provision is established when there is objective evidence that the company will not be able to collect all amounts due.

Other debtors and creditors are measured at amortised cost using the effective interest rate method.

Cash and cash equivalents are classified as basic financial instruments and comprise cash in hand and at bank and bank overdrafts.

Financial liabilities and equity instruments issued by the company are classified in accordance with 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. Equity instruments issued by the company are recorded at the proceeds received.

2.9. Foreign Currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction. Exchange differences are taken into account in arriving at the operating profit.

2.10. Taxation

The taxation expense represents the sum of the tax currently payable and deferred tax. Current or deferred tax for the year is recognised in profit or loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case the current and deferred tax is also recognised in other comprehensive income or directly in equity, respectively.

Current tax

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

Deferred tax

Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period 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.

...CONTINUED

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Karma Drinks UK Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2026

2.10. Taxation - continued

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and asset reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Deferred tax is only adjusted if the change in the timing difference is material.

2.11. Pensions

The company operates a defined pension contribution scheme. Contributions are charged to the profit and loss account as they become payable in accordance with the rules of the scheme.

3. Average Number of Employees

	2026	2025
Average number of employees, including directors, during the year	7	8

	7	8

4. Intangible Assets

	Rebranding	Development Costs	Total
	£	£	£
Cost
As at 1 April 2025	50,310	6,439	56,749

As at 31 March 2026	50,310	6,439	56,749

Amortisation
As at 1 April 2025	46,140	5,832	51,972
Provided during the period	4,170	607	4,777

As at 31 March 2026	50,310	6,439	56,749

Net Book Value
As at 31 March 2026	-	-	-

As at 1 April 2025	4,170	607	4,777

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Karma Drinks UK Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2026

5. Tangible Assets

	Plant and machinery	Computer equipment	Total
	£	£	£
Cost
As at 1 April 2025	97,043	12,859	109,902
Additions	4,690	1,992	6,682
Disposals	(49,642 )	-	(49,642 )

As at 31 March 2026	52,091	14,851	66,942

Depreciation
As at 1 April 2025	48,911	6,810	55,721
Provided during the period	12,195	3,040	15,235
Disposals	(37,241 )	-	(37,241 )

As at 31 March 2026	23,865	9,850	33,715

Net Book Value
As at 31 March 2026	28,226	5,001	33,227

As at 1 April 2025	48,132	6,049	54,181

6. Debtors

	2026	2025
	£	£
Due within one year
Trade debtors	780,848	727,581
Other debtors	31,460	72,534

	812,308	800,115
Due after more than one year
Other debtors	6,000	10,000

	818,308	810,115

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Karma Drinks UK Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2026

7. Creditors: Amounts Falling Due Within One Year

	2026	2025
	£	£
Trade creditors	572,457	141,052
Bank loans and overdrafts	257,931	400,961
Amounts owed to group undertakings	141,922	123,614
Other creditors	101,080	176,154
Taxation and social security	82,883	93,497

	1,156,273	935,278

8. Creditors: Amounts Falling Due After More Than One Year

	2026	2025
	£	£
Amounts owed to group undertakings	1,853,515	1,661,638
Amounts owed to participating interests	34,721	34,721

	1,888,236	1,696,359

9. Deferred Taxation

The provision for deferred taxation is made up of accelerated capital allowances and there is a corresponding deferred taxation asset of £6,000 (2025 : £10,000) included within debtors more than one year.

	2026	2025
	£	£
Other timing differences	6,000	10,000

10. Related Party Transactions

The total amount due to group undertakings at the year end was £1,995,437 (2025 : £1,785,252).

The total amount due to related parties at the year end was £34,721 (2025 : £34,721).

11. Ultimate Controlling Party

The company's ultimate controlling party is Wayfairer Limited by virtue of ownership of 100% of the issued share capital in the company as of 07 April 2016. The registered office of Wayfairer Limited is: 24A Williamson Avenue, Grey Lynn, Auckland 1021.

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		2026		2025
	Notes	£	£	£	£
FIXED ASSETS
Intangible Assets	4		-		4,777
Tangible Assets	5		33,227		54,181

			33,227		58,958
CURRENT ASSETS
Stocks		936,809		881,716
Debtors	6	818,308		810,115
Cash at bank and in hand		45,191		228,646

		1,800,308		1,920,477
Creditors: Amounts Falling Due Within One Year	7	(1,156,273 )		(935,278 )

NET CURRENT ASSETS (LIABILITIES)			644,035		985,199

TOTAL ASSETS LESS CURRENT LIABILITIES			677,262		1,044,157

Creditors: Amounts Falling Due After More Than One Year	8		(1,888,236 )		(1,696,359 )

PROVISIONS FOR LIABILITIES
Deferred Taxation	9		(6,000 )		(10,000 )

NET LIABILITIES			(1,216,974 )		(662,202 )

CAPITAL AND RESERVES
Called up share capital			10		10
Profit and Loss Account			(1,216,984 )		(662,212 )

SHAREHOLDERS' FUNDS			(1,216,974)		(662,202)