Kaby Engineers Limited - Limited company accounts 18.2

REGISTERED NUMBER: 01211144 (England and Wales)

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2019

FOR

KABY ENGINEERS LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Consolidated Income Statement

7

Consolidated Other Comprehensive Income

8

Consolidated Balance Sheet

9

Company Balance Sheet

10

Consolidated Statement of Changes in Equity

11

Company Statement of Changes in Equity

12

Consolidated Cash Flow Statement

13

Notes to the Consolidated Cash Flow Statement

14

Notes to the Consolidated Financial Statements

15

DIRECTORS:

B S Sanghera

Mrs K K Sanghera

SECRETARY:

Mrs K K Sanghera

REGISTERED OFFICE:

14-16 Upper Charnwood Street

Leicester

LE2 0AU

REGISTERED NUMBER:

01211144 (England and Wales)

AUDITORS:

SFB Group Limited

Chartered Accountants

Statutory Auditor

Unit 8 Oak Spinney Park

Ratby Lane

Leicester Forest East

Leicester

LE3 3AW

BANKERS:

Santander UK PLC

BBAM

Bridle Road

Bootle

Merseyside

L304GB

The directors present their strategic report of the company and the group for the year ended 31 March 2019.

REVIEW OF BUSINESS

We aim to present a balanced and comprehensive review of the development and performance of our business during the year and

its position at the year end. Our review is consistent with the size and nature of our business and is written in the context of the

risks and uncertainties we face.

We consider that our key financial performance indicators are those that communicate the financial performance and strength of

the company as a whole, these being turnover, gross margin and return on investment.

The accounts show an increase in turnover for the year of 6.5% with gross profit decreasing from from £5.3m to £4.9m. The

operating profit has also decreased from £350,627 in 2018 to £213,919.

The company declared a net loss after tax of £1,076 in the period compared to a profit of £193,683 in 2018.

The business environment in which the company operates continues to be challenging and very competitive. However, following

major investment and an anticipated improvement in the economic climate the directors are confident of trading improvements in

the coming year.

ON BEHALF OF THE BOARD:

B S Sanghera - Director

12 December 2019

The directors present their report with the financial statements of the company and the group for the year ended 31 March 2019.

PRINCIPAL ACTIVITY

The principal activity of the company continued to be that of light engineering.

DIVIDENDS

No dividends will be distributed for the year ended 31 March 2019.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 April 2018 to the date of this report.

B S Sanghera

Mrs K K Sanghera

EMPLOYEE INVOLVEMENT

The company's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to

affect employees' interests.

Information of matters of concern to employees is given through information bulletins and reports which seek to achieve a

common awareness on the part of all employees of the financial and economic factors affecting the group's performance.

There is no employee share scheme at present, but the directors are considering the introduction of such a scheme as a means of

further encouraging the employees in the company's performance.

DISABLED PERSONS

The company's policy is to recruit disabled workers for those vacancies that they are able to fill. All necessary assistance with initial

training courses is given. Once employed, a career plan is developed so as to ensure suitable opportunities for each disabled

person. Arrangements are made, wherever possible, for retraining employees who become disabled, to enable them to perform

work identified as appropriate to their aptitudes and abilities.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in

accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have

elected to prepare the financial statements 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 financial statements

unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or

loss of the group for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and

the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and

enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for

safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of

fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of

which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in

order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of

that information.

AUDITORS

The auditors, SFB Group Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

B S Sanghera - Director

12 December 2019

Opinion

We have audited the financial statements of Kaby Engineers Limited (the 'parent company') and its subsidiaries (the 'group') for the

year ended 31 March 2019 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income,

Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of

Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial

Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their

preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial

Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 31 March 2019 and of the group's loss for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our

responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements

section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit

of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in

accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide

a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the group's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The directors are responsible for the other information. The other information comprises the information in the Group Strategic

Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated

in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so,

consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the

audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material

misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material

misstatement of the other information. If, based on the work we have performed, we conclude that there is a material

misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course

of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our

opinion:

-	adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the

preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as

the directors determine necessary to enable the preparation of financial statements that are free from material misstatement,

whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to

continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of

accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no

realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material

misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable

assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always

detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,

individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis

of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's

website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act

2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to

state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or

assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report,

or for the opinions we have formed.

Paul Carvell (Senior Statutory Auditor)

for and on behalf of SFB Group Limited

Chartered Accountants

Statutory Auditor

Unit 8 Oak Spinney Park

Ratby Lane

Leicester Forest East

Leicester

LE3 3AW

12 December 2019

TURNOVER

3

25,656,953

24,083,302

Cost of sales

20,695,357

18,729,255

GROSS PROFIT

4,961,596

5,354,047

Distribution costs

280,381

239,719

Administrative expenses

4,833,598

5,130,595

5,113,979

5,370,314

(152,383

)

(16,267

)

Other operating income

366,302

366,894

OPERATING PROFIT

6

213,919

350,627

Interest receivable and similar income

7

3,676

5,457

217,595

356,084

Interest payable and similar expenses

8

218,671

162,401

(LOSS)/PROFIT BEFORE TAXATION

(1,076

)

193,683

Tax on (loss)/profit

9

-

-

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(1,076

)

193,683

(Loss)/profit attributable to:

Owners of the parent

(1,076

)

193,683

(LOSS)/PROFIT FOR THE YEAR

(1,076

)

193,683

OTHER COMPREHENSIVE INCOME

Deferred tax arising on revaluation gain

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(1,076

)

193,683

Total comprehensive income attributable to:

Owners of the parent

(1,076

)

193,683

FIXED ASSETS

Intangible assets

11

436,000

376,000

Tangible assets

12

6,971,881

6,569,818

Investments

13

-

-

7,407,881

6,945,818

CURRENT ASSETS

Stocks

14

4,272,717

2,958,970

Debtors

15

7,118,049

6,074,509

Cash at bank and in hand

1,368

101,996

11,392,134

9,135,475

CREDITORS

Amounts falling due within one year

16

9,935,041

7,854,787

NET CURRENT ASSETS

1,457,093

1,280,688

TOTAL ASSETS LESS CURRENT LIABILITIES

8,864,974

8,226,506

CREDITORS

Amounts falling due after more than one year

17

(2,538,381

)

(1,898,837

)

PROVISIONS FOR LIABILITIES

20

(125,860

)

(125,860

)

NET ASSETS

6,200,733

6,201,809

CAPITAL AND RESERVES

Called up share capital

21

100,000

100,000

Revaluation reserve

22

1,556,809

1,556,809

Retained earnings

22

4,543,924

4,545,000

SHAREHOLDERS' FUNDS

6,200,733

6,201,809

The financial statements were approved by the Board of Directors on 12 December 2019 and were signed on its behalf by:

B S Sanghera - Director

FIXED ASSETS

Intangible assets

11

436,000

376,000

Tangible assets

12

6,937,290

6,529,045

Investments

13

250,752

250,752

7,624,042

7,155,797

CURRENT ASSETS

Stocks

14

4,272,717

2,958,970

Debtors

15

7,847,606

6,907,432

Cash at bank and in hand

1,368

101,583

12,121,691

9,967,985

CREDITORS

Amounts falling due within one year

16

9,932,030

7,851,257

NET CURRENT ASSETS

2,189,661

2,116,728

TOTAL ASSETS LESS CURRENT LIABILITIES

9,813,703

9,272,525

CREDITORS

Amounts falling due after more than one year

17

(2,538,381

)

(1,898,837

)

PROVISIONS FOR LIABILITIES

20

(125,860

)

(125,860

)

NET ASSETS

7,149,462

7,247,828

CAPITAL AND RESERVES

Called up share capital

21

100,000

100,000

Revaluation reserve

22

1,556,809

1,556,809

Retained earnings

22

5,492,653

5,591,019

SHAREHOLDERS' FUNDS

7,149,462

7,247,828

Company's (loss)/profit for the financial year

(98,366

)

96,971

The financial statements were approved by the Board of Directors on 12 December 2019 and were signed on its behalf by:

B S Sanghera - Director

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 April 2017

100,000

4,351,317

1,556,809

6,008,126

Changes in equity

Total comprehensive income

-

193,683

-

193,683

Balance at 31 March 2018

100,000

4,545,000

1,556,809

6,201,809

Changes in equity

Total comprehensive income

-

(1,076

)

-

(1,076

)

Balance at 31 March 2019

100,000

4,543,924

1,556,809

6,200,733

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 April 2017

100,000

5,494,048

1,556,809

7,150,857

Changes in equity

Total comprehensive income

-

96,971

-

96,971

Balance at 31 March 2018

100,000

5,591,019

1,556,809

7,247,828

Changes in equity

Total comprehensive income

-

(98,366

)

-

(98,366

)

Balance at 31 March 2019

100,000

5,492,653

1,556,809

7,149,462

Cash flows from operating activities

Cash generated from operations

1

666,201

521,934

Interest paid

(192,115

)

(140,910

)

Interest element of hire purchase payments paid

(26,556

)

(21,491

)

Net cash from operating activities

447,530

359,533

Cash flows from investing activities

Purchase of intangible fixed assets

(60,000

)

(120,000

)

Purchase of tangible fixed assets

(1,220,362

)

(734,390

)

Sale of tangible fixed assets

215,345

4,802

Interest received

3,676

5,457

Net cash from investing activities

(1,061,341

)

(844,131

)

Cash flows from financing activities

Loan repayments in year

(120,000

)

(160,000

)

Capital advances / (repayments) in year

772,575

95,149

Amount withdrawn by directors

(677,972

)

(164,528

)

Net cash from financing activities

(25,397

)

(229,379

)

Decrease in cash and cash equivalents

(639,208

)

(713,977

)

Cash and cash equivalents at beginning of year

2

101,996

815,973

Cash and cash equivalents at end of year

2

(537,212

)

101,996

1.	RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2019

2018

£

£

(Loss)/profit before taxation

(1,076

)

193,683

Depreciation charges

818,299

572,518

Profit on disposal of fixed assets

(215,345

)

(4,802

)

Finance costs

218,671

162,401

Finance income

(3,676

)

(5,457

)

816,873

918,343

(Increase)/decrease in stocks

(1,313,747

)

218,349

Increase in trade and other debtors

(365,568

)

(159,848

)

Increase/(decrease) in trade and other creditors

1,528,643

(454,910

)

Cash generated from operations

666,201

521,934

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance

Sheet amounts:

Year ended 31 March 2019

31.3.19

1.4.18

£

£

Cash and cash equivalents

1,368

101,996

Bank overdrafts

(538,580

)

-

(537,212

)

101,996

Year ended 31 March 2018

31.3.18

1.4.17

£

£

Cash and cash equivalents

101,996

815,973

1.	STATUTORY INFORMATION

Kaby Engineers Limited is a private company, limited by shares , registered in England and Wales. The company's registered

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Basis of consolidation

The consolidated profit and loss account and balance sheet include the financial statements of the company and its

subsidiary undertakings made up to 31 March 2018. The results of subsidiaries sold or acquired are included in the profit

and loss account up to, or from the date control passes. Intra-group sales and profits are eliminated fully on consolidation.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value

added tax and other sales taxes.

Intangible fixed assets

Intangible fixed assets represent capitalised research and development costs which are amortised over five years. No

amortisation is to be applied in the year of acquisition.

Tangible fixed assets

Tangible fixed assets include investment properties professionally valued by Chartered Surveyors on an existing use open

market value basis. Tangible fixed assets other than freehold land are stated at cost or valuation less depreciation.

Depreciation is provided at rates calculated to write off the cost or valuation less estimated residual value of each asset

over its expected useful life, as follows:

Freehold buildings - 2% per annum of cost or valuation

Leasehold property improvement - Straight line over 7 years

Plant, machinery, fixtures and fittings - 10%-50% per annum of cost & 15% reducing balance

Office equipment - 20% reducing balance

Motor vehicles - 20% per annum of cost & 25% reducing balance

Stocks

Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for

obsolete and slow moving items.

Cost includes all direct expenditure and an apprropriate proportion of fixed and variable overheads.

Deferred tax

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

date.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet

date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction.

Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire

purchase contracts are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to the profit and loss account over the relevant period. The capital

element of the future payments is treated as a liability.

Rentals paid / received under operating leases are charged / credited to the profit and loss account on a straight line basis

over the period of the lease.

Investments

Fixed asset investments are stated at cost less provision for diminution in value.