Smart Compliance Ltd - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: SC389465 (Scotland)

Unaudited Financial Statements for the Year Ended 31 August 2018

for

SMART COMPLIANCE LTD

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

Chartered Accountants' Report

7

DIRECTORS:

W Mitchell

S Wallace

D Needham

REGISTERED OFFICE:

29 Brandon Street

Hamilton

ML3 6DA

REGISTERED NUMBER:

SC389465 (Scotland)

ACCOUNTANTS:

Sharles CA

29 Brandon Street

Hamilton

ML3 6DA

FIXED ASSETS

Intangible assets

5

467,606

450,808

CURRENT ASSETS

Debtors

6

3,871

19,523

Cash at bank

2,498

4,300

6,369

23,823

CREDITORS

Amounts falling due within one year

7

334,441

279,833

NET CURRENT LIABILITIES

(328,072

)

(256,010

)

TOTAL ASSETS LESS CURRENT LIABILITIES

139,534

194,798

CREDITORS

Amounts falling due after more than one year

8

287,016

279,031

NET LIABILITIES

(147,482

)

(84,233

)

CAPITAL AND RESERVES

Called up share capital

133

133

Share premium

212,972

212,972

Retained earnings

(360,587

)

(297,338

)

SHAREHOLDERS' FUNDS

(147,482

)

(84,233

)

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 August 2018.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 August 2018 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors on 9 May 2019 and were signed on its behalf by:

W Mitchell - Director

S Wallace - Director

1.	STATUTORY INFORMATION

Smart Compliance Ltd is a private company, limited by shares , registered in Scotland. The company's registered

number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. There were no material departures from that standard.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The accounts have been prepared on a going concern basis as the directors have undertaken to continue

supporting the company until the new generation carbon monoxide detector is fully developed and profitability

is achieved.

Turnover

Turnover is derived from gas detectors supplied by the company.

Turnover is measured at the fair value of gas detectors supplied, net of discounts and excluding value added tax,

and is recognised at the point that the company obtains the right to consideration.

Development costs

Development costs relating to the development of a new generation carbon monoxide detector have been

capitalised. No amortisation has been provided as the product is still currently under development. This is

reviewed annually by the directors to ensure values are appropriate.

Government grants

Grants which are deemed to be revenue in nature are credited to the income statement as they become

receivable. Grants of a capital nature are treated as deferred income and released to the income statement over

the expected useful lives of the specific assets to which they relate.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to

the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or

substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance

sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from

those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that

have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the

timing difference.

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.

Foreign currencies

Transactions in currencies, other than the functional currency of the company, are recorded at the rate of

exchange on the date the transaction occurred. Monetary items denominated in other currencies are translated at

the rate prevailing at the end of the reporting period. All differences are taken to the profit and loss account.

Non-monetary items are measured at historic cost in a foreign currency are not retranslated.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension

scheme are charged to profit or loss in the period to which they relate.

4.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 4 (2017 - 6 ) .

5.	INTANGIBLE FIXED ASSETS

Other

intangible

assets

£

COST

At 1 September 2017

450,808

Additions

16,798

At 31 August 2018

467,606

NET BOOK VALUE

At 31 August 2018

467,606

At 31 August 2017

450,808

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

as restated

£

£

Trade debtors

-

10,196

Other debtors

3,871

9,327

3,871

19,523

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

as restated

£

£

Trade creditors

8,926

29,984

Taxation and social security

842

1,438

Other creditors

324,673

248,411

334,441

279,833

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2018

2017

as restated

£

£

Other creditors

287,016

279,031

9.	CONTINGENT LIABILITIES

Under terms of the investor agreement, the company has a contingent liability amounting to £498,000 (2017 -

£390,000) at the year end, in respect of management fees due to Smart Systems Scotland Ltd. These fees will be

payable if the development of the product is successful, and leads to sales in the market place.

10.	RELATED PARTY DISCLOSURES

The company has a loan account with the director S Wallace. The loan has no fixed repayment terms and no

interest is charged. The amount due to S Wallace at the balance sheet date was £624 (2017 - £NIL).

Smart Systems Scotland Limited

A company in which W Mitchell and S Wallace are directors.

During the year the company purchased goods and services of £9,719 (2017 - £12,926) from Smart Systems

Scotland Limited. These transactions were conducted under normal commercial terms.

During the year the company received loans totalling £80,972 (2017 - £89,869) from Smart Systems Scotland

Limited. There are no fixed repayment terms and no interest was charged on outstanding amounts.

The amount due to Smart Systems Scotland Limited at the balance sheet date was £318,929 (2017 - £237,957).

The following reproduces the text of the report prepared for the directors in respect of the company's annual

unaudited financial statements. In accordance with the Companies Act 2006, the company is only required to file

a Balance Sheet. Readers are cautioned that the Income Statement and certain other primary statements and the

Report of the Directors are not required to be filed with the Registrar of Companies.

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the

financial statements of Smart Compliance Ltd for the year ended 31 August 2018 which comprise the Income

Statement, Balance Sheet, Statement of Changes in Equity and the related notes from the company's accounting records

and from information and explanations you have given us.

As a practising member firm of ICAS, we are subject to its ethical and other professional requirements which are detailed at http://www.icas.com/accountspreparationguidance.

This report is made solely to the Board of Directors of Smart Compliance Ltd, as a body, in accordance with our terms of engagement. Our work has been undertaken solely to prepare for your approval the financial statements of Smart Compliance Ltd and state those matters that we have agreed to state to the Board of Directors of Smart Compliance Ltd, as a body, in this report in accordance with the requirements of ICAS as detailed at http://www.icas.com/accountspreparationguidance. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and its Board of Directors, as a body, for our work or for this report.

It is your duty to ensure that Smart Compliance Ltd 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 loss of Smart Compliance Ltd. You consider that Smart Compliance 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 financial statements of Smart Compliance 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 financial statements.

Sharles CA

29 Brandon Street

Hamilton

ML3 6DA

9 May 2019