Cobalt Sky Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 02201006 (England and Wales)

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2020

FOR

COBALT SKY LIMITED

Page

Company Information

1

Statement of Financial Position

2

Notes to the Financial Statements

4

Chartered Accountants' Report

10

DIRECTORS:

Raz Khan

Lee Khan

Rebecca Marie Cole

SECRETARY:

Lee Khan

REGISTERED OFFICE:

Air Malta House

314-316 Upper Richmond Road

London

SW15 6TU

REGISTERED NUMBER:

02201006 (England and Wales)

ACCOUNTANTS:

de Freitas & Co.

Chartered Accountants

39 Berwyn Road

Richmond

Surrey

TW10 5BU

FIXED ASSETS

Intangible assets

4

-

-

Tangible assets

5

116,664

20,295

Investments

6

-

25

116,664

20,320

CURRENT ASSETS

Debtors

7

397,043

449,476

Cash at bank

429,880

512,801

826,923

962,277

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

8

423,684

471,347

NET CURRENT ASSETS

403,239

490,930

TOTAL ASSETS LESS CURRENT LIABILITIES

519,903

511,250

PROVISIONS FOR LIABILITIES

9

16,392

-

NET ASSETS

503,511

511,250

CAPITAL AND RESERVES

Called up share capital

10

50

50

Capital redemption reserve

50

50

Retained earnings

503,411

511,150

SHAREHOLDERS' FUNDS

503,511

511,250

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 November 2020.

The members have not required the company to obtain an audit of its financial statements for the year ended 30 November 2020 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 applicable to companies subject to the small companies regime.

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 10 March 2021 and were signed on its behalf by:

Raz Khan - Director

1.	Statutory information

Cobalt Sky 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 Company Information

page.

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

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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Significant judgements and estimates

The directors have not been required to make any material critical judgements in the process of applying

the company's accounting policies.

Turnover

Turnover represents sales of computer consultancy and software development and installation services.

Where the outcome of a transaction can be estimated reliably turnover is recognised by reference to the

stage of completion of the transaction at the end of the reporting period.

Goodwill

Goodwill represents the excess of the cost of acquisition over the fair value of the separable net assets of

businesses acquired. It is initially measured at cost. After initial recognition, it is measured at cost less any

accumulated amortisation and any accumulated impairment losses.

The goodwill on the acquisition of a business on 31 December 2010 has been amortised through the

profit and loss account in equal instalments over its estimated useful life of 5 years

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.

Short leasehold

-

over the unexpired term of the lease

Computer equipment

-

25% - 33% on cost

Government grants

Government grants are recognised in the period in which the related costs for which the grant is intended

to compensate are recognised.

Investments in associates

Investments in associate undertakings are recognised at cost.

Financial instruments

Financial instruments are recognised when the company becomes party to the contractual provisions of

the financial instrument. The company holds only basic financial instruments, which comprise cash at

bank, trade and other debtors and trade creditors.

Cash and cash equivalents - these include deposits held with banks.

Trade and other debtors - these are initially recognised at the transaction price and are subsequently

measured at amortised cost using the effective interest method, less any provision for impairment.

Amounts that are receivable within one year are measured at the undiscounted amount expected to be

receivable, net of any impairment.

Trade creditors - these are initially measured at the transaction price and are subsequently measured at

amortised cost using the effective interest method. Amounts that are payable within one year are

measured at the undiscounted amount expected to be payable.

Taxation

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

Current taxation assets and liabilities are not discounted.

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

enacted or substantively enacted by the statement of financial position date.

Deferred tax

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

statement of financial position 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

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

statement of financial position 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.

Employee benefits

Short term benefits

Short term benefits, including holiday pay and other similar non-monetary benefits are recognised as an

expense in the period in which the service is received. An accrual is recognised for short term

compensated absences where entitlement has accumulated, but has not been taken, at the reporting date.

Defined contribution pension schemes

The company operates defined contribution pension schemes, the assets of which are held separately

from those of the company in independently administered funds. Contributions payable are recognised in

profit or loss in the year to which the contributions relate.

Operating leases

Rentals payable under operating leases are charged to profit or loss on a straight line basis over the term

of the lease.

Going concern

The company has established business relationships with a number of customers across different

geographic areas and industries.

The COVID-19 pandemic has had an impact on certain customers which has caused a reduction in

turnover and net profit. The directors have taken advantage of government initiatives where appropriate

and exercised their judgement in managing the business during these uncertain times.

The company still has considerable financial resources. As a consequence the directors believe that the

company is well placed to manage its business risks successfully.

The directors have a reasonable expectation that the company has adequate resources to continue in

operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of

accounting in preparing the annual financial statements.

3.	Employees and directors

The average number of employees during the year was 20 (2019 - 18 ) .

4.	Intangible fixed assets

Goodwill

£

Cost

At 1 December 2019

and 30 November 2020

40,000

Amortisation

At 1 December 2019

and 30 November 2020

40,000

Net book value

At 30 November 2020

-

At 30 November 2019

-

Goodwill on the acquisition of a business on 31 December 2010 has been amortised over 5 years. In the

opinion of the directors this represented a prudent estimate of the period over which the group would

derive economic benefits.

5.	Tangible fixed assets

Fixtures

Short

and

Computer

leasehold

fittings

equipment

Totals

£

£

£

£

Cost

At 1 December 2019

9,769

-

141,579

151,348

Additions

59,717

40,746

5,430

105,893

Disposals

(9,769

)

-

(116,249

)

(126,018

)

At 30 November 2020

59,717

40,746

30,760

131,223

Depreciation

At 1 December 2019

9,769

-

121,284

131,053

Charge for year

-

-

9,524

9,524

Eliminated on disposal

(9,769

)

-

(116,249

)

(126,018

)

At 30 November 2020

-

-

14,559

14,559

Net book value

At 30 November 2020

59,717

40,746

16,201

116,664

At 30 November 2019

-

-

20,295

20,295

6.	Fixed asset investments

Interest

in

associate

£

Cost

At 1 December 2019

25

Disposals

(25

)

At 30 November 2020

-

Net book value

At 30 November 2020

-

At 30 November 2019

25

The unlisted investments comprised 25 ordinary shares of £1 each, representing 25% of the equity, in The

Thinking Shed Limited, an associated company whose business is market research and whose registered

office is in the UK.

7.

Debtors: amounts falling due within one year

2020

2019

£

£

Trade debtors

370,310

419,495

Other debtors

173

8,904

Prepayments and accrued income

26,560

21,077

397,043

449,476

8.

Creditors: amounts falling due within one year

2020

2019

£

£

Trade creditors

154,706

174,295

Corporation tax

31,110

60,275

Social security and other taxes

176,929

148,894

Accruals and deferred income

60,939

87,883

423,684

471,347

9.	Provisions for liabilities

2020

2019

£

£

Deferred tax

Accelerated capital allowances

16,392

-

Deferred

tax

£

Provided during year

16,392

Balance at 30 November 2020

16,392

10.	Called up share capital

Allotted, issued and fully paid:

Number:

Class:

Nominal

2020

2019

value:

£

£

5,000

Ordinary

£0.01

50

50

On 10 March 2020 the 50 ordinary shares of £1 each were sub-divided into 5,000 ordinary shares of £0.01

each with the same rights and restrictions as the existing ordinary shares.

11.	Operating lease commitments

At 30 November 2020 the company had future minimum lease commitments under non-cancellable

operating leases as follows:

2020

2019

£

£

Not later than 1 year

56,214

56,214

Later than 1 year and not later than 5 years

140,535

196,749

196,749

252,963

12.	Related party disclosures

During the year, total dividends of £100,500 (2019 - £72,000) were paid to the directors .

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 Statement of Financial Position. 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 Cobalt Sky Limited for the year ended 30 November 2020 which comprise the Income

Statement, Statement of Financial Position, 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 the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed within the ICAEW's regulations and guidance at http://www.icaew.com/en/membership/regulations-standards-and-guidance.

This report is made solely to the Board of Directors of Cobalt Sky Limited, 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 Cobalt Sky Limited and state those matters that we have agreed to state to the Board of Directors of Cobalt Sky Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Cobalt Sky Limited and its Board of Directors, as a body, for our work or for this report.

It is your duty to ensure that Cobalt Sky 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 Cobalt Sky Limited. You consider that Cobalt Sky 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 Cobalt Sky 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.

de Freitas & Co.

Chartered Accountants

39 Berwyn Road

Richmond

Surrey

TW10 5BU

10 March 2021