| AMK Trading and Investment Ltd |
| Registered number: |
08711893 |
| Directors' Report |
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| The directors present their report and accounts for the year ended 30 September 2016. |
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| Principal activities |
| The company's principal activity during the year was that of dealing in stocks and shares. |
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| Directors |
| The following persons served as directors during the year: |
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Omar Ala Mahmoud Al Khawaja |
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| Directors' responsibilities |
| The directors are responsible for preparing the report and accounts in accordance with applicable law and regulations. |
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| Company law requires the directors to prepare accounts for each financial year. Under that law the directors have elected to prepare the accounts 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 accounts 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 accounts, the directors are required to: |
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select suitable accounting policies and then apply them consistently; |
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make judgements and estimates that are reasonable and prudent; |
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prepare the accounts on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
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| 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 accounts 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. |
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| Small company provisions |
| This report has been prepared in accordance with the provisions in Part 15 of the Companies Act 2006 applicable to companies subject to the small companies regime. |
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| This report was approved by the board on 28 June 2017 and signed on its behalf. |
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| Omar Ala Mahmoud Al Khawaja |
| Director |
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| AMK Trading and Investment Ltd |
| Notes to the Accounts |
| for the year ended 30 September 2016 |
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| 1 |
Accounting policies |
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Basis of preparation |
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The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard). |
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Turnover |
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Turnover is measured at the fair value of the consideration received or receivable, net of discounts. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. |
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Intangible fixed assets |
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Intangible fixed assets are measured at cost less accumulative amortisation and any accumulative impairment losses. |
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Tangible fixed assets |
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Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows: |
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Plant and machinery |
over 5 years |
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Fixtures, fittings, tools and equipment |
over 5 years |
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Investments |
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Investments in subsidiaries, associates and joint ventures are measured at cost less any accumulated impairment losses. Listed investments are measured at fair value. Unlisted investments are measured at fair value unless the value cannot be measured reliably, in which case they are measured at cost less any accumulated impairment losses. Changes in fair value are included in the profit and loss account. |
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Stocks |
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Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised. |
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Debtors |
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Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
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Creditors |
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Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
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Taxation |
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A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted. |
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Provisions |
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Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably. |
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Foreign currency translation |
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Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss. |
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Leased assets |
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A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term. |
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| 2 |
Employees |
2016 |
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2015 |
| Number |
Number |
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Average number of persons employed by the company |
3 |
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1 |
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| 3 |
Investments |
| Investments in |
| subsidiary |
Other |
| undertakings |
investments |
Total |
| £ |
£ |
£ |
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Cost |
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Additions |
100 |
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49 |
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149 |
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Revaluation |
- |
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(49) |
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(49) |
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At 30 September 2016 |
100 |
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- |
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100 |
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| 4 |
Debtors |
2016 |
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2015 |
| £ |
£ |
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Amounts owed by group undertakings and undertakings in which the company has a participating interest |
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524,141 |
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- |
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| 5 |
Creditors: amounts falling due within one year |
2016 |
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2015 |
| £ |
£ |
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Bank loans and overdrafts |
171 |
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- |
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Other creditors |
867,513 |
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4,629 |
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867,684 |
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4,629 |
| 6 |
Related party transactions |
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Omar Ala Mahmoud Alkhawaja is the sole director of the company. Amount due to related party at year end |
603,057 |
|
4,029 |
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Amount due to Ala Mahmoud Alkhawaja, director's close family, at year end |
262,056 |
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OK Ice Cream Limited is the subsidiary undertaking of the company. Amount due from related party at year end |
524,141 |
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| 7 |
Controlling party |
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The ultimate controlling party is Omar Ala Mahmoud Alkhawaja, sole director and sole shareholder |
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| 8 |
Other information |
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AMK Trading and Investment Ltd is a private company limited by shares and incorporated in England. Its registered office is: 128 Ebury Street, London, SW1W 9QQ |
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| 9 |
Going concern |
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During the current year the company incurred losses of £98,048. As at the balance sheet date the company has net liabilities of £101,048 which includes £603,057 due to the director |
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The company has received an undertaking from the director that they would not seek repayment of the funds until such time as the company has funds available for the purpose and that they would continue to financially support the company. |
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Accordingly the financial statements have been prepared on a going concern basis which assumes that the company will continue in operational existence for the forseeable future. The validity of this assumption depends on continued financial support by the shareholder. |
