ZETA_COMMUNICATIONS_LIMIT - Accounts


Company Registration No. 01701849 (England and Wales)
ZETA COMMUNICATIONS LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2017
PAGES FOR FILING WITH REGISTRAR
ZETA COMMUNICATIONS LIMITED
COMPANY INFORMATION
Directors
Mr R Pole
Mrs M Pole
Secretary
Mrs M Pole
Company number
01701849
Registered office
36 Lache Lane
Chester
Cheshire
England
CH4 7LR
Accountants
Morris & Co
Chester House
Lloyd Drive
Cheshire Oaks Business Park
Ellesmere Port
Cheshire
CH65 9HQ
ZETA COMMUNICATIONS LIMITED
CONTENTS
Page
Accountants' report
1
Balance sheet
2 - 3
Notes to the financial statements
5 - 11
ZETA COMMUNICATIONS LIMITED
CHARTERED ACCOUNTANTS' REPORT TO THE BOARD OF DIRECTORS ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF ZETA COMMUNICATIONS LIMITED FOR THE YEAR ENDED 31 MARCH 2017
- 1 -

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Zeta Communications Limited for the year ended 31 March 2017 set out on pages to 11 from the company’s accounting records and from information and explanations you have given us.

 

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at http://www.icaew.com/en/members/regulations-standards-and-guidance.

This report is made solely to the Board of Directors of Zeta Communications Limited, as a body, in accordance with the terms of our engagement. Our work has been undertaken solely to prepare for your approval the financial statements of Zeta Communications Limited and state those matters that we have agreed to state to the Board of Directors of Zeta Communications Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Zeta Communications Limited and its Board of Directors as a body, for our work or for this report.

It is your duty to ensure that Zeta Communications Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Zeta Communications Limited. You consider that Zeta Communications Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the financial statements of Zeta Communications Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

Morris & Co
6 December 2017
Chartered Accountants
Chester House
Lloyd Drive
Cheshire Oaks Business Park
Ellesmere Port
Cheshire
CH65 9HQ
ZETA COMMUNICATIONS LIMITED
BALANCE SHEET
AS AT
31 MARCH 2017
31 March 2017
- 2 -
2017
2016
Notes
£
£
£
£
Fixed assets
Tangible assets
2
117
233
Investment properties
3
408,000
353,000
Investments
4
320,792
326,052
728,909
679,285
Current assets
Debtors
5
1,614
1,305
Cash at bank and in hand
57,935
12,825
59,549
14,130
Creditors: amounts falling due within one year
6
(7,298)
(6,069)
Net current assets
52,251
8,061
Total assets less current liabilities
781,160
687,346
Provisions for liabilities
(5,705)
(46)
Net assets
775,455
687,300
Capital and reserves
Called up share capital
7
38,400
38,400
Share premium account
10,000
10,000
Other reserves
52,472
-
Profit and loss reserves
674,583
638,900
Total equity
775,455
687,300

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

For the financial year ended 31 March 2017 the company was entitled to exemption from audit under section 477 of the Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

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

ZETA COMMUNICATIONS LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 MARCH 2017
31 March 2017
- 3 -
The financial statements were approved by the board of directors and authorised for issue on 3 December 2017 and are signed on its behalf by:
Mr R Pole
Director
Company Registration No. 01701849
ZETA COMMUNICATIONS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2017
- 4 -
Share capital
Share premium account
Fair value reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 April 2015
38,400
10,000
-
635,519
683,919
Effect of change in accounting policy
-
-
-
29,508
29,508
As restated
38,400
10,000
-
665,027
713,427
Year ended 31 March 2016:
Profit and total comprehensive income for the year
-
-
-
1,873
1,873
Dividends
-
-
-
(28,000)
(28,000)
Balance at 31 March 2016
38,400
10,000
-
638,900
687,300
Year ended 31 March 2017:
Profit and total comprehensive income for the year
-
-
-
106,155
106,155
Dividends
-
-
-
(18,000)
(18,000)
Transfers
-
-
52,472
(52,472)
-
Balance at 31 March 2017
38,400
10,000
52,472
674,583
775,455
ZETA COMMUNICATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2017
- 5 -
1
Accounting policies
Company information

Zeta Communications Limited is a private company limited by shares incorporated in England and Wales. The business address is 36 Lache Lane, Chester, Cheshire, England, CH4 7LR.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

These financial statements for the year ended 31 March 2017 are the first financial statements of Zeta Communications Limited prepared in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. The date of transition to FRS 102 was 1 April 2015. An explanation of how transition to FRS 102 has affected the reported financial position and financial performance is given in note 8.

1.2
Turnover

Rental income arising from operating leases on investment properties is accounted for on a straight line basis over the lease term.

 

Rental income receipts in excess of amounts receivable on a straight line basis are treated as deferred income within the Balance Sheet.

 

In other instances turnover represents net invoiced sales of goods and services.

1.3
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Plant and machinery
various - 25%, 33% and 50% on cost

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

ZETA COMMUNICATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2017
1
Accounting policies
(Continued)
- 6 -
1.4
Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in the fair value reserve, an undistributable reserve.

 

Where fair value cannot be achieved without undue cost or effort, investment property is accounted for as tangible fixed assets.

1.5
Fixed asset investments

Investments in equity instruments are initially recognised at transaction price at the date a contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss.

1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.7
Cash at bank and in hand

Cash at bank and in hand are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

ZETA COMMUNICATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2017
1
Accounting policies
(Continued)
- 7 -
1.8
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. As all financial assets are classified within one year, they are not amortised but carried at face value.

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 and bank loans are initially recognised at transaction price. 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.

1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.10
Taxation

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

Current 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 are 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 rates that have been enacted or substantively enacted by the reporting end date.

ZETA COMMUNICATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2017
1
Accounting policies
(Continued)
- 8 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised 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 recognised 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 realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, 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 liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

2
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 April 2016 and 31 March 2017
2,867
Depreciation and impairment
At 1 April 2016
2,634
Depreciation charged in the year
116
At 31 March 2017
2,750
Carrying amount
At 31 March 2017
117
At 31 March 2016
233
3
Investment property
2017
£
Fair value
At 1 April 2016
353,000
Revaluations
55,000
At 31 March 2017
408,000

Investment property comprises residential properties let to third parties. The directors consider that the properties have increased in value and the book value has been adjusted accordingly to reflect their current fair value. The valuation was made at open market value on the basis of existing use.

 

ZETA COMMUNICATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2017
- 9 -
4
Fixed asset investments
2017
2016
£
£
Investments
320,792
326,052

 

Movements in fixed asset investments
Investments other than loans
£
Cost or valuation
At 1 April 2016
326,052
Additions
20,954
Fair value adjustment
41,391
Disposals
(67,605)
At 31 March 2017
320,792
Carrying amount
At 31 March 2017
320,792
At 31 March 2016
326,052
5
Debtors
2017
2016
Amounts falling due within one year:
£
£
Trade debtors
1,220
712
Other debtors
394
593
1,614
1,305
ZETA COMMUNICATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2017
- 10 -
6
Creditors: amounts falling due within one year
2017
2016
£
£
Trade creditors
13
-
Corporation tax
2,204
2,317
Other taxation and social security
613
613
Other creditors
4,468
3,139
7,298
6,069
7
Called up share capital
2017
2016
£
£
Ordinary share capital
Issued and fully paid
34,389 Ordinary A shares of £1 each
34,389
34,389
11 Ordinary B shares of £1 each
11
11
3,989 Ordinary C shares of £1 each
3,989
3,989
11 Ordinary D shares of £1 each
11
11
38,400
38,400
8
Reconciliations on adoption of FRS 102

Reconciliations and descriptions of the effect of the transition to FRS 102 on; (i) equity at the date of transition to FRS 102; (ii) equity at the end of the comparative period; and (iii) profit or loss for the comparative period reported under previous UK GAAP are given below.

Reconciliation of equity
1 April
31 March
2015
2016
£
£
Equity as reported under previous UK GAAP
683,919
671,552
Adjustments to prior year (note )
29,508
29,508
Adjustments arising from transition to FRS 102:
Adjustment to fair value
-
(13,760)
Equity reported under FRS 102
713,427
687,300
ZETA COMMUNICATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2017
8
Reconciliations on adoption of FRS 102
(Continued)
- 11 -
Reconciliation of loss for the financial period
2016
£
Loss as reported under previous UK GAAP
(12,367)
Adjustments arising from transition to FRS 102:
Movement in fair value
(13,760)
Loss reported under FRS 102
(26,127)
Notes to reconciliations on adoption of FRS 102

The prior year adjustment noted above at £29,508 relates to the uplift of the share portfolio from cost to fair value at 31 March 2015. As capital losses are currently available from an earlier year, no deferred tax adjustment arises either at 31 March 2015 or 2016.

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