| Meem Memory Limited |
| Notes to the Accounts |
| for the year ended 31 December 2018 |
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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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Going concern |
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The accounts have been prepared on the going concern basis. The company is reliant upon the support of its directors. If this support was withdrawn, the company would be unable to continue in operational existence. Adjustments would then have to be made to reduce the balance sheet values of assets to their recoverable amounts and to provide for any further liabilities that may arise. The company is unable to quantify the effect of such adjustments on the accounts. The directors believe that it is appropriate for the accounts to be prepared one going concern basis. |
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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 and value added taxes. 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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Fixtures, fittings, tools and equipment |
5% straight line |
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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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| 2 |
Employees |
2018 |
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2017 |
| Number |
Number |
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Average number of persons employed by the company |
2 |
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2 |
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| 3 |
Intangible fixed assets |
£ |
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Intellectual Property |
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Cost |
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At 1 January 2018 |
430,678 |
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At 31 December 2018 |
430,678 |
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Amortisation |
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At 1 January 2018 |
430,678 |
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At 31 December 2018 |
430,678 |
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Net book value |
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At 31 December 2018 |
- |
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Intellectual property cost is being written off in in the year when expenditure is incurred. |
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| 4 |
Tangible fixed assets |
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Plant and machinery etc |
| £ |
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Cost |
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At 1 January 2018 |
54,285 |
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At 31 December 2018 |
54,285 |
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Depreciation |
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At 1 January 2018 |
5,430 |
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Charge for the year |
2,715 |
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At 31 December 2018 |
8,145 |
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Net book value |
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At 31 December 2018 |
46,140 |
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At 31 December 2017 |
48,855 |
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| 5 |
Investments |
| Investments in |
| subsidiary |
| undertakings |
| £ |
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Cost |
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At 1 January 2018 |
1,168 |
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At 31 December 2018 |
1,168 |
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The company has holding of 99.99% in Meem Memory Development Studio Private Limited incorporated in India on 23 August 2016. The activity of the subsidiary is to undertake development work on the Meem charger cable.
The company also has holding of 100% in Meem Memory Inc incorporated in USA on 25 February 2017. The activity of the USA subsidiary is to undertake sales, as an agent, for the UK company. |
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| 6 |
Debtors |
2018 |
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2017 |
| £ |
£ |
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Trade debtors |
3,731 |
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106,667 |
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| 7 |
Creditors: amounts falling due within one year |
2018 |
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2017 |
| £ |
£ |
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Amounts owed to group undertakings and undertakings in which the company has a participating interest |
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(56,218) |
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51,448 |
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Corporation tax |
(75,001) |
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(92,000) |
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Other taxes and social security costs |
3,397 |
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(6,488) |
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Trade and other creditors |
755,758 |
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333,445 |
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627,936 |
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286,405 |
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| 8 |
Creditors: amounts falling due after one year |
2018 |
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2017 |
| £ |
£ |
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Other creditors |
3,248,261 |
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2,945,061 |
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| 9 |
Related party transactions |
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At the year end, under creditors falling due after one year, amount due to Mr Kelly Sumner was £3,138,670 ( 2017 -£2,847,970) and amount due to Mr Robert Brent was £20,000 (2017-£Nil).
Interest is payable at 8% per annum. Interest payable during the year to Mr Kelly Sumner was £240,547 (2017-£133,660) and Mr Robert Brent was £494 (2017-£nil) and the amount due for the interest at the year end to Mr Kelly Sumner was £431,983 (2017- £191,436) and Mr Robert Brent was £494 (2017-£nil) and this is reflected under creditors falling due within one year.
During the year, the 99.99% subsidiary company in India recharged £238,404 (2017-£243,650) relating to development cost incurred for the product and at year end Nil balance was owed. At year end £56,218 was owed by USA 100% susbdiary company.
During the year, amount payable to Morgan -Knox Limited was £60,000 (2017- £45,000) in respect consultancy services provided where Mr David Knox is a director/shareholder of that company. At the year end amount due to Morgan-Knox Limited was £70,000 (2017-£15,000). |
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| 10 |
Controlling party |
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The ultimate controlling party are the three directors in view of them holding approximately 70% shares of the company. |
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| 11 |
Other information |
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Meem Memory Limited is a private company limited by shares and incorporated in England. Its registered office is: |
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7 Jardine House |
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Harrovian Business Village |
|
Harrow |
|
Middlesex |
|
HA1 3EX |
