KG&S Ltd - Period Ending 2017-03-31

Registration number: 05665012

KG&S Ltd

Annual Report and Unaudited Financial Statements

for the Year Ended 31 March 2017

KG&S Ltd

Contents

Accountants' Report	1
Balance Sheet	2 to 3
Notes to the Financial Statements	4 to 9

Chartered Accountants' Report to the Board of Directors on the Preparation of the Unaudited Statutory Accounts of
KG&S Ltd
for the Year Ended 31 March 2017

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of KG&S Ltd for the year ended 31 March 2017, which comprise the profit and loss account, the balance sheet, the statement of changes in equity and related notes as set out on pages 2 to 9 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 icaew.com/membershandbook.

This report is made solely to the Board of Directors of KG&S Ltd, as a body, in accordance with the terms of our engagement letter. Our work has been undertaken solely to prepare for your approval the accounts of KG&S Ltd and state those matters that we have agreed to state to the Board of Directors of KG&S Ltd, 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 KG&S Ltd and its Board of Directors as a body for our work or for this report.

It is your duty to ensure that KG&S Ltd has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and profit of KG&S Ltd. You consider that KG&S Ltd 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 accounts of KG&S Ltd. 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 accounts.

......................................

11 December 2017

Page 1

KG&S Ltd

(Registration number: 05665012)
Balance Sheet as at 31 March 2017

	Note	2017 £	2016 £
Fixed assets
Tangible assets	5	81	473
Investments	6	1,286,352	1,286,355
		1,286,433	1,286,828
Current assets
Debtors	7	891,479	912,557
Cash at bank and in hand		17,390	3,478
		908,869	916,035
Creditors: Amounts falling due within one year	8	(633,216)	(1,429,147)
Net current assets/(liabilities)		275,653	(513,112)
Total assets less current liabilities		1,562,086	773,716
Creditors: Amounts falling due after more than one year	8	(210,000)	(210,000)
Net assets		1,352,086	563,716
Capital and reserves
Called up share capital		125,160	125,160
Profit and loss account		1,226,926	438,556
Total equity		1,352,086	563,716

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

Directors' responsibilities:

•	The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and
•	The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

The notes on pages 4 to 9 form an integral part of these financial statements.

Page 2

KG&S Ltd

(Registration number: 05665012)
Balance Sheet as at 31 March 2017

Approved and authorised by the Board on 11 December 2017 and signed on its behalf by:
 

.........................................

Dr M J Suffield

Company secretary and director

The notes on pages 4 to 9 form an integral part of these financial statements.

Page 3

KG&S Ltd

Notes to the Financial Statements for the Year Ended 31 March 2017

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:
15 Halls Farm Close
Winchester
Hampshire
SO22 6RE
England

2	Accounting policies

Summary of significant accounting policies and key accounting estimates

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.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These 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.

Going concern

The directors have reviewed the twelve months ahead and note no material reason as to why the company should not continue as a going concern.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Plant & machinery	25% straight line basis
Motor vehicles	20% straight line basis
Equipment	33% straight line basis

Page 4

KG&S Ltd

Notes to the Financial Statements for the Year Ended 31 March 2017

2	Accounting policies (continued)

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.


Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

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.

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.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

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.

Page 5

KG&S Ltd

Notes to the Financial Statements for the Year Ended 31 March 2017

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 4 (2016 - 5).

4	Exceptional administrative expenses

Included within administrative expenses totalling £656,642 credit (2016: £173,893 debit) is an exceptional administrative expense of £814,780 credit (2016: £nil) being the write off of inter-company balances due to the restructuring of the group.

Page 6

KG&S Ltd

Notes to the Financial Statements for the Year Ended 31 March 2017

Notes to the Financial Statements (continued)

5	Tangible assets

	Equipment  £	Motor vehicles  £	Plant & machinery  £	Total £
Cost or valuation
At 1 April 2016	20,286	14,900	14,061	49,247
Disposals	(791)	(14,900)	-	(15,691)
At 31 March 2017	19,495	-	14,061	33,556
Depreciation
At 1 April 2016	19,927	14,900	14,061	48,888
Charge for the year	278	-	-	278
Eliminated on disposal	(791)	(14,900)	-	(15,691)
At 31 March 2017	19,414	-	14,061	33,475
Carrying amount
At 31 March 2017	81	-	-	81
At 31 March 2016	473	-	-	473

6	Investments

	2017 £	2016 £
Investments in subsidiaries	1,286,352	1,286,355

Subsidiaries	£
Cost or valuation
At 1 April 2016	1,286,355
Disposals	(3)
At 31 March 2017	1,286,352
Provision
Carrying amount
At 31 March 2017	1,286,352
At 31 March 2016	1,286,355

Page 7

KG&S Ltd

Notes to the Financial Statements for the Year Ended 31 March 2017

Notes to the Financial Statements (continued)

7

Debtors

	Note	2017 £	2016 £
Amounts owed by group undertakings	10	883,086	904,601
Other debtors		8,393	7,956
Less non-current portion		(114,183)	(139,783)
Total current trade and other debtors		777,296	772,774

Details of non-current trade and other debtors

£114,183 (2016 -£139,783) of amounts owed by group undertakings is classified as non current.

8

Creditors

	Note	2017 £	2016 £
Due within one year
Trade creditors		-	1,039
Amounts owed to group undertakings	10	17,218	851,610
Taxation and social security		1,963	-
Other creditors		614,035	576,498
		633,216	1,429,147
Due after one year
Loans and borrowings	9	210,000	210,000

9	Loans and borrowings

	2017 £	2016 £
Non-current loans and borrowings
Redeemable preference shares	210,000	210,000

Page 8

KG&S Ltd

Notes to the Financial Statements for the Year Ended 31 March 2017

Notes to the Financial Statements (continued)

10	Related party transactions

Summary of transactions with subsidiaries

Karis Group Limited (Subsidiary)
At the balance sheet date, the amount due from Karis Group Limited totalled £4,000 (2016: £4,000).
 

Summary of transactions with other related parties

Karis Winchester Limited (Under common control)
At the balance sheet date, the amount due from Karis Winchester Limited totalled £114,183 (2016: £139,783).

Karis Group Sierra Leone Limited (50% owned by KG&S Limited)
KG&S Limited have paid for expenses and costs relating to Karis Group Sierra Leone Limited. At the balance sheet date, the amount due from Karis Group Sierra Leone Limited totalled £759,700 (2016: £757,365).
 

11	Transition to FRS 102

This is the first time that the company has applied the recognition and measurement requirements of FRS 102 having previously applied the financial reporting standards for smaller entities (FRSSE).

The policies applied under the entity's previous reporting framework are not materially different to FRS 102 and have not impacted on equity or profit and loss.

Page 9