Kaby Engineers Limited - Limited company accounts 20.1
Kaby Engineers Limited - Limited company accounts 20.1
| REGISTERED NUMBER: 01211144 (England and Wales) |
| GROUP STRATEGIC REPORT, |
| REPORT OF THE DIRECTORS AND |
| CONSOLIDATED FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 MARCH 2020 |
| FOR |
| KABY ENGINEERS LIMITED |
| KABY ENGINEERS LIMITED (REGISTERED NUMBER: 01211144) |
| CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
| for the Year Ended 31 March 2020 |
| 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 | 16 |
| KABY ENGINEERS LIMITED |
| COMPANY INFORMATION |
| for the Year Ended 31 March 2020 |
| DIRECTORS: |
| SECRETARY: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| AUDITORS: |
| 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 |
| KABY ENGINEERS LIMITED (REGISTERED NUMBER: 01211144) |
| GROUP STRATEGIC REPORT |
| for the Year Ended 31 March 2020 |
| The directors present their strategic report of the company and the group for the year ended 31 March 2020. |
| 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 a decrease in turnover for the year of 24.4% with gross profit decreasing from £4,961,596 to £3,424,261. The operating profit has also decreased from £213,919 in 2019 to a loss £1,058,235. |
| The company declared a net loss after tax of £1,390,875 in the period compared to a profit of £1,076 in 2019. |
| The company's results for the year reflect a challenging environment for our sector. The later part of the year saw the beginning of the COVID-19 outbreak which has brought unprecedented challenges not just for Kaby but the global economy. The company has responded well, and adapted to the changes in volume and new ways of working which accommodate social distancing requirements. Whilst it is too early to quantify the financial and other implications of this unprecedented global event, the company is committed to continue finding innovative and cost effective ways to meet challenges head on to protect its financial performance. |
| With these risks and uncertainties in mind, we acknowledge that any plans for future development may be affected by circumstances which are both unforeseen and beyond our control. |
| ON BEHALF OF THE BOARD: |
| KABY ENGINEERS LIMITED (REGISTERED NUMBER: 01211144) |
| REPORT OF THE DIRECTORS |
| for the Year Ended 31 March 2020 |
| The directors present their report with the financial statements of the company and the group for the year ended 31 March 2020. |
| 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 2020. |
| DIRECTORS |
| The directors shown below have held office during the whole of the period from 1 April 2019 to the date of this report. |
| 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; |
| - | 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. |
| KABY ENGINEERS LIMITED (REGISTERED NUMBER: 01211144) |
| REPORT OF THE DIRECTORS |
| for the Year Ended 31 March 2020 |
| AUDITORS |
| The auditors, SFB Group Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
| ON BEHALF OF THE BOARD: |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| KABY ENGINEERS LIMITED |
| 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 2020 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 2020 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. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| KABY ENGINEERS LIMITED |
| 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. |
| for and on behalf of |
| Chartered Accountants |
| Statutory Auditor |
| Unit 8 Oak Spinney Park |
| Ratby Lane |
| Leicester Forest East |
| Leicester |
| LE3 3AW |
| KABY ENGINEERS LIMITED (REGISTERED NUMBER: 01211144) |
| CONSOLIDATED INCOME STATEMENT |
| for the Year Ended 31 March 2020 |
| 2020 | 2019 |
| Notes | £ | £ | £ | £ |
| TURNOVER | 3 | 19,390,826 | 25,656,953 |
| Cost of sales | 15,966,565 | 20,695,357 |
| GROSS PROFIT | 3,424,261 | 4,961,596 |
| Distribution costs | 211,386 | 280,381 |
| Administrative expenses | 4,608,210 | 4,833,598 |
| 4,819,596 | 5,113,979 |
| (1,395,335 | ) | (152,383 | ) |
| Other operating income | 337,100 | 366,302 |
| OPERATING (LOSS)/PROFIT | 6 | (1,058,235 | ) | 213,919 |
| Irrecoverable Loans | 7 | 254,705 | - |
| (1,312,940 | ) | 213,919 |
| Interest receivable and similar income | 8 | 4,044 | 3,676 |
| (1,308,896 | ) | 217,595 |
| Interest payable and similar expenses | 9 | 211,399 | 218,671 |
| LOSS BEFORE TAXATION | (1,520,295 | ) | (1,076 | ) |
| Tax on loss | 10 | (138,200 | ) | - |
| LOSS FOR THE FINANCIAL YEAR | ( |
) | ( |
) |
| Loss attributable to: |
| Owners of the parent | (1,382,095 | ) | (1,076 | ) |
| KABY ENGINEERS LIMITED (REGISTERED NUMBER: 01211144) |
| CONSOLIDATED OTHER COMPREHENSIVE INCOME |
| for the Year Ended 31 March 2020 |
| 2020 | 2019 |
| Notes | £ | £ |
| LOSS FOR THE YEAR | (1,382,095 | ) | (1,076 | ) |
| OTHER COMPREHENSIVE INCOME |
| Revaluation loss on freehold property | (8,780 | ) | - |
| Income tax relating to other comprehensive income |
- |
- |
| OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
(8,780 |
) |
- |
| TOTAL COMPREHENSIVE INCOME FOR THE YEAR | (1,390,875 | ) | (1,076 | ) |
| Total comprehensive income attributable to: |
| Owners of the parent | (1,390,875 | ) | (1,076 | ) |
| KABY ENGINEERS LIMITED (REGISTERED NUMBER: 01211144) |
| CONSOLIDATED BALANCE SHEET |
| 31 March 2020 |
| 2020 | 2019 |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Intangible assets | 12 | 473,000 | 436,000 |
| Tangible assets | 13 | 5,711,088 | 6,971,881 |
| Investments | 14 | - | - |
| Investment property | 15 | 51,080 | - |
| 6,235,168 | 7,407,881 |
| CURRENT ASSETS |
| Stocks | 16 | 3,951,236 | 4,272,717 |
| Debtors | 17 | 4,566,789 | 7,118,049 |
| Cash at bank and in hand | 164,816 | 1,368 |
| 8,682,841 | 11,392,134 |
| CREDITORS |
| Amounts falling due within one year | 18 | 7,945,257 | 9,935,041 |
| NET CURRENT ASSETS | 737,584 | 1,457,093 |
| TOTAL ASSETS LESS CURRENT LIABILITIES | 6,972,752 | 8,864,974 |
| CREDITORS |
| Amounts falling due after more than one year | 19 | (2,162,894 | ) | (2,538,381 | ) |
| PROVISIONS FOR LIABILITIES | 22 | - | (125,860 | ) |
| NET ASSETS | 4,809,858 | 6,200,733 |
| CAPITAL AND RESERVES |
| Called up share capital | 23 | 100,000 | 100,000 |
| Revaluation reserve | 24 | 1,548,029 | 1,556,809 |
| Retained earnings | 24 | 3,161,829 | 4,543,924 |
| SHAREHOLDERS' FUNDS | 4,809,858 | 6,200,733 |
| The financial statements were approved by the Board of Directors and authorised for issue on 30 November 2020 and were signed on its behalf by: |
| B S Sanghera - Director |
| KABY ENGINEERS LIMITED (REGISTERED NUMBER: 01211144) |
| COMPANY BALANCE SHEET |
| 31 March 2020 |
| 2020 | 2019 |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Intangible assets | 12 |
| Tangible assets | 13 |
| Investments | 14 |
| Investment property | 15 |
| CURRENT ASSETS |
| Stocks | 16 |
| Debtors | 17 |
| Cash at bank and in hand |
| CREDITORS |
| Amounts falling due within one year | 18 |
| NET CURRENT ASSETS |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| CREDITORS |
| Amounts falling due after more than one year | 19 | ( |
) | ( |
) |
| PROVISIONS FOR LIABILITIES | 22 | ( |
) |
| NET ASSETS |
| CAPITAL AND RESERVES |
| Called up share capital | 23 |
| Revaluation reserve | 24 |
| Retained earnings | 24 |
| SHAREHOLDERS' FUNDS |
| Company's loss for the financial year | (1,478,959 | ) | (98,366 | ) |
| The financial statements were approved by the Board of Directors and authorised for issue on |
| KABY ENGINEERS LIMITED (REGISTERED NUMBER: 01211144) |
| CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
| for the Year Ended 31 March 2020 |
| Called up |
| share | Retained | Revaluation | Total |
| capital | earnings | reserve | equity |
| £ | £ | £ | £ |
| Balance at 1 April 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 |
| Changes in equity |
| Total comprehensive income | - | (1,382,095 | ) | (8,780 | ) | (1,390,875 | ) |
| Balance at 31 March 2020 | 100,000 | 3,161,829 | 1,548,029 | 4,809,858 |
| KABY ENGINEERS LIMITED (REGISTERED NUMBER: 01211144) |
| COMPANY STATEMENT OF CHANGES IN EQUITY |
| for the Year Ended 31 March 2020 |
| Called up |
| share | Retained | Revaluation | Total |
| capital | earnings | reserve | equity |
| £ | £ | £ | £ |
| Balance at 1 April 2018 |
| Changes in equity |
| Total comprehensive income | - | ( |
) | ( |
) |
| Balance at 31 March 2019 |
| Changes in equity |
| Total comprehensive income | - | ( |
) | ( |
) | ( |
) |
| Balance at 31 March 2020 |
| KABY ENGINEERS LIMITED (REGISTERED NUMBER: 01211144) |
| CONSOLIDATED CASH FLOW STATEMENT |
| for the Year Ended 31 March 2020 |
| 2020 | 2019 |
| Notes | £ | £ |
| Cash flows from operating activities |
| Cash generated from operations | 1 | 97,155 | 666,201 |
| Interest paid | (176,758 | ) | (192,115 | ) |
| Interest element of hire purchase payments paid | (34,641 | ) | (26,556 | ) |
| Net cash from operating activities | (114,244 | ) | 447,530 |
| Cash flows from investing activities |
| Purchase of intangible fixed assets | (37,000 | ) | (60,000 | ) |
| Purchase of tangible fixed assets | (29,034 | ) | (1,220,362 | ) |
| Sale of tangible fixed assets | 607,500 | 215,345 |
| Interest received | 4,044 | 3,676 |
| Net cash from investing activities | 545,510 | (1,061,341 | ) |
| Cash flows from financing activities |
| Loan repayments in year | (160,000 | ) | (120,000 | ) |
| Capital advances / (repayments) in year | (258,186 | ) | 772,575 |
| Amount introduced by directors | 180,784 | - |
| Amount withdrawn by directors | - | (677,972 | ) |
| Net cash from financing activities | (237,402 | ) | (25,397 | ) |
| Increase/(decrease) in cash and cash equivalents | 193,864 | (639,208 | ) |
| Cash and cash equivalents at beginning of year | 2 | (537,212 | ) | 101,996 |
| Cash and cash equivalents at end of year | 2 | (343,348 | ) | (537,212 | ) |
| KABY ENGINEERS LIMITED (REGISTERED NUMBER: 01211144) |
| NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
| for the Year Ended 31 March 2020 |
| 1. | RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
| 2020 | 2019 |
| £ | £ |
| Loss before taxation | (1,520,295 | ) | (1,076 | ) |
| Depreciation charges | 576,213 | 818,299 |
| Loss/(profit) on disposal of fixed assets | 46,255 | (215,345 | ) |
| Finance costs | 211,399 | 218,671 |
| Finance income | (4,044 | ) | (3,676 | ) |
| (690,472 | ) | 816,873 |
| Decrease/(increase) in stocks | 321,481 | (1,313,747 | ) |
| Decrease/(increase) in trade and other debtors | 2,370,476 | (365,568 | ) |
| (Decrease)/increase in trade and other creditors | (1,904,330 | ) | 1,528,643 |
| Cash generated from operations | 97,155 | 666,201 |
| 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 2020 |
| 31.3.20 | 1.4.19 |
| £ | £ |
| Cash and cash equivalents | 164,816 | 1,368 |
| Bank overdrafts | (508,164 | ) | (538,580 | ) |
| (343,348 | ) | (537,212 | ) |
| 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 |
| KABY ENGINEERS LIMITED (REGISTERED NUMBER: 01211144) |
| NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
| for the Year Ended 31 March 2020 |
| 3. | ANALYSIS OF CHANGES IN NET DEBT |
| At 1.4.19 | Cash flow | At 31.3.20 |
| £ | £ | £ |
| Net cash |
| Cash at bank and in hand | 1,368 | 163,448 | 164,816 |
| Bank overdrafts | (538,580 | ) | 30,416 | (508,164 | ) |
| (537,212 | ) | 193,864 | (343,348 | ) |
| Debt |
| Finance leases | (1,078,814 | ) | 258,186 | (820,628 | ) |
| Debts falling due within 1 year | (160,000 | ) | - | (160,000 | ) |
| Debts falling due after 1 year | (1,900,000 | ) | 160,000 | (1,740,000 | ) |
| (3,138,814 | ) | 418,186 | (2,720,628 | ) |
| Total | (3,676,026 | ) | 612,050 | (3,063,976 | ) |
| KABY ENGINEERS LIMITED (REGISTERED NUMBER: 01211144) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
| for the Year Ended 31 March 2020 |
| 1. | STATUTORY INFORMATION |
| Kaby Engineers Limited is a |
| The presentation currency of the financial statements is the Pound Sterling (£). |
| 2. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| 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 2020. 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. No amortisation is to be applied in the year of acquisition. The balance as at 31 March 2020 will be amortised over five years. |
| 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 |
| Investment property |
| Investment properties are included in the balance sheet at their open market value. Any aggregate surplus or deficit arising from changes in fair value is recognised in other comprehensive income. |
| 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. |
| KABY ENGINEERS LIMITED (REGISTERED NUMBER: 01211144) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the Year Ended 31 March 2020 |
| 2. | ACCOUNTING POLICIES - continued |
| 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. |
| Pension costs and other post-retirement benefits |
| The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
| Investments |
| Fixed asset investments are stated at cost less provision for diminution in value. |
| Critical accounting judgements and key sources of estimation uncertainty |
| In the application of the group's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. |
| The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods. |
| Critical judgements in applying the Group's accounting policies |
| The following are the critical judgements, apart from those involving estimations (which are dealt with separately below), that the directors have made in the process of applying the group's accounting policies and that have the most significant effect on the amounts recognised in the financial statements. |
| Going concern |
| The entity's ability to continue as a going concern. |
| The COVID-19 pandemic has developed rapidly in 2020. The resulting impact of the virus on the operations and measures taken by various governments to contain the virus have negatively affected the group's results in the reporting period. The currently known impacts of COVID-19 on the company are: |
| - Closure of the company's production facilities from March 2020 until May 2020. Resulting in a decline in revenues. |
| As a result of these matters there is a material uncertainty that may cast significant doubt upon the company's ability to continue as a going concern and therefore whether the company will realise its assets and settle its liabilities in the ordinary course of business at the amounts recorded in the financial statements. |
| In response to these matters, the entity has taken then following actions: |
| - We have obtained additional facilities of £300,000 from our lenders: and |
| - will continue to obtain additional finance facilities from our lenders. |
| However, if revenues decline then it will be necessary to raise additional financing from lenders. We have started those discussions and we expect that this capital will be available if required. |
| Although it is not certain that these efforts will be successful, management has determined that the actions that it has taken are sufficient to mitigate the uncertainty and has therefore prepared the financial reporting on a going concern basis. |
| . |
| KABY ENGINEERS LIMITED (REGISTERED NUMBER: 01211144) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the Year Ended 31 March 2020 |
| 3. | TURNOVER |
| The turnover and loss before taxation are attributable to the one principal activity of the group. |
| An analysis of turnover by geographical market is given below: |
| 2020 | 2019 |
| £ | £ |
| United Kingdom |
| Europe |
| United States of America |
| Rest of the world | 380,282 | 279,382 |
| 4. | EMPLOYEES AND DIRECTORS |
| 2020 | 2019 |
| £ | £ |
| Wages and salaries |
| Social security costs |
| Other pension costs |
| The average number of employees during the year was as follows: |
| 2020 | 2019 |
| Staff | 42 | 45 |
| Production | 179 | 248 |
| The average number of employees by undertakings that were proportionately consolidated during the year was 221 (2019 - 293 ) . |
| 5. | DIRECTORS' EMOLUMENTS |
| 2020 | 2019 |
| £ | £ |
| Directors' remuneration |
| The number of directors to whom retirement benefits were accruing was as follows: |
| Money purchase schemes |
| Information regarding the highest paid director is as follows: |
| 2020 | 2019 |
| £ | £ |
| Emoluments etc |
| KABY ENGINEERS LIMITED (REGISTERED NUMBER: 01211144) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the Year Ended 31 March 2020 |
| 6. | OPERATING (LOSS)/PROFIT |
| The operating loss (2019 - operating profit) is stated after charging/(crediting): |
| 2020 | 2019 |
| £ | £ |
| Hire of plant and machinery |
| Other operating leases |
| Depreciation - owned assets |
| Depreciation - assets on hire purchase contracts |
| Loss/(profit) on disposal of fixed assets | ( |
) |
| Auditors' remuneration |
| Research & development costs | (37,000 | ) | (60,000 | ) |
| 7. | EXCEPTIONAL ITEMS |
| 2020 | 2019 |
| £ | £ |
| Irrecoverable Loans | ( |
) |
| During the year a loan receivable of £5,000 from Strikecoach Ltd who have mutual directors to Kaby Engineers Limited was written off as irrecoverable. |
| During the year a loan receivable of £82,600 from Boss Life Media Ltd who have mutual directors to Kaby Engineers Limited was written off as irrecoverable. |
| During the year a loan receivable of £167,105 from a non related party was written off as irrecoverable. |
| 8. | INTEREST RECEIVABLE AND SIMILAR INCOME |
| 2020 | 2019 |
| £ | £ |
| Other interest |
| 9. | INTEREST PAYABLE AND SIMILAR EXPENSES |
| 2020 | 2019 |
| £ | £ |
| Bank interest |
| Bank loan interest |
| Interest payable |
| Hire purchase |
| 10. | TAXATION |
| Analysis of the tax credit |
| The tax credit on the loss for the year was as follows: |
| 2020 | 2019 |
| £ | £ |
| Current tax: |
| UK corporation tax | ( |
) |
| Deferred tax | ( |
) |
| Tax on loss | ( |
) |
| KABY ENGINEERS LIMITED (REGISTERED NUMBER: 01211144) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the Year Ended 31 March 2020 |
| 10. | TAXATION - continued |
| Tax effects relating to effects of other comprehensive income |
| 2020 |
| Gross | Tax | Net |
| £ | £ | £ |
| Revaluation loss on freehold property | ( |
) | - | (8,780 | ) |
| 2019 |
| Gross | Tax | Net |
| £ | £ | £ |
| Deferred tax arising on revaluation gain |
| The group has estimated losses of £4,812,123 (2019 - £3,595,303) available for carry forward against future trading profits. |
| 11. | PROFIT OF PARENT COMPANY |
| As permitted by Section 408 of the Companies Act 2006, the Profit and Loss Account of the parent company is not presented as part of these financial statements. The parent company's loss for the financial year was £1,487,739 (2019 - £98,366 loss). |
| 12. | INTANGIBLE FIXED ASSETS |
| Group |
| Development |
| costs |
| £ |
| COST |
| At 1 April 2019 |
| Additions |
| At 31 March 2020 |
| NET BOOK VALUE |
| At 31 March 2020 |
| At 31 March 2019 |
| Company |
| Development |
| costs |
| £ |
| COST |
| At 1 April 2019 |
| Additions |
| At 31 March 2020 |
| NET BOOK VALUE |
| At 31 March 2020 |
| At 31 March 2019 |
| KABY ENGINEERS LIMITED (REGISTERED NUMBER: 01211144) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the Year Ended 31 March 2020 |
| 13. | TANGIBLE FIXED ASSETS |
| Group |
| Fixtures |
| Freehold | Plant and | and | Motor |
| property | machinery | fittings | vehicles | Totals |
| £ | £ | £ | £ | £ |
| COST OR VALUATION |
| At 1 April 2019 | 4,593,538 | 14,653,634 | 58,545 | 509,245 | 19,814,962 |
| Additions | - | 3,561 | - | 25,473 | 29,034 |
| Disposals | (680,000 | ) | (34,500 | ) | - | (117,709 | ) | (832,209 | ) |
| Revaluations | (19,500 | ) | - | - | - | (19,500 | ) |
| Reclassification/transfer | (68,474 | ) | - | - | - | (68,474 | ) |
| At 31 March 2020 | 3,825,564 | 14,622,695 | 58,545 | 417,009 | 18,923,813 |
| DEPRECIATION |
| At 1 April 2019 | 283,935 | 12,028,349 | 57,484 | 473,313 | 12,843,081 |
| Charge for year | 54,665 | 511,927 | 212 | 9,408 | 576,212 |
| Eliminated on disposal | (60,745 | ) | - | - | (117,709 | ) | (178,454 | ) |
| Revaluation adjustments | (10,720 | ) | - | - | - | (10,720 | ) |
| Reclassification/transfer | (17,394 | ) | - | - | - | (17,394 | ) |
| At 31 March 2020 | 249,741 | 12,540,276 | 57,696 | 365,012 | 13,212,725 |
| NET BOOK VALUE |
| At 31 March 2020 | 3,575,823 | 2,082,419 | 849 | 51,997 | 5,711,088 |
| At 31 March 2019 | 4,309,603 | 2,625,285 | 1,061 | 35,932 | 6,971,881 |
| The costs or valuation of depreciable assets included in the freehold property at 31 March 2020 was £2,392,664 (2019 - £2,932,138). |
| Freehold land and buildings were revalued on 13 June 2014 by Peter Tew, RICS, Chartered Surveyors at open market value for the freehold interest. |
| The net book value of tangible fixed assets includes £ 607,123 (2019 - £ 752,380 ) in respect of assets held under hire purchase contracts. |
| KABY ENGINEERS LIMITED (REGISTERED NUMBER: 01211144) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the Year Ended 31 March 2020 |
| 13. | TANGIBLE FIXED ASSETS - continued |
| Company |
| Freehold | Plant and | Motor |
| property | machinery | vehicles | Totals |
| £ | £ | £ | £ |
| COST OR VALUATION |
| At 1 April 2019 |
| Additions |
| Disposals | ( |
) | ( |
) | ( |
) | ( |
) |
| Revaluations | ( |
) | ( |
) |
| Reclassification/transfer | ( |
) | ( |
) |
| At 31 March 2020 |
| DEPRECIATION |
| At 1 April 2019 |
| Charge for year |
| Eliminated on disposal | ( |
) | ( |
) | ( |
) |
| Revaluation adjustments | ( |
) | ( |
) |
| Reclassification/transfer | ( |
) | ( |
) |
| At 31 March 2020 |
| NET BOOK VALUE |
| At 31 March 2020 |
| At 31 March 2019 |
| The costs or valuation of depreciable assets included in the freehold property at 31 March 2020 was £2,392,664 (2019 - £2,932,138). |
| Freehold land and buildings were revalued on 13 June 2014 by Peter Tew, RICS, Chartered Surveyors at open market value for the freehold interest. |
| The net book value of tangible fixed assets includes £607,122 (2019 - £1,091,031) in respect of assets held under hire purchase contracts. |
| 14. | FIXED ASSET INVESTMENTS |
| Company |
| Shares in |
| group |
| undertakings |
| £ |
| COST |
| At 1 April 2019 |
| and 31 March 2020 |
| NET BOOK VALUE |
| At 31 March 2020 |
| At 31 March 2019 |
| KABY ENGINEERS LIMITED (REGISTERED NUMBER: 01211144) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the Year Ended 31 March 2020 |
| 14. | FIXED ASSET INVESTMENTS - continued |
| The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
| Subsidiary |
| Registered office: 14-16 Upper Charnwood Street,Leicester,England,LE2 0AU |
| Nature of business: |
| % |
| Class of shares: | holding |
| 2020 | 2019 |
| £ | £ |
| Aggregate capital and reserves | ( |
) | ( |
) |
| Profit for the year |
| 15. | INVESTMENT PROPERTY |
| Group |
| Total |
| £ |
| FAIR VALUE |
| Revaluations | (17,394 | ) |
| Reclassification/transfer | 68,474 |
| At 31 March 2020 | 51,080 |
| DEPRECIATION |
| Charge written back | (17,394 | ) |
| Reclassification/transfer | 17,394 |
| At 31 March 2020 | - |
| NET BOOK VALUE |
| At 31 March 2020 | 51,080 |
| Company |
| Total |
| £ |
| FAIR VALUE |
| Revaluations | (17,394 | ) |
| Reclassification/transfer | 68,474 |
| At 31 March 2020 |
| DEPRECIATION |
| Charge written back | (17,394 | ) |
| Reclassification/transfer | 17,394 |
| At 31 March 2020 | - |
| NET BOOK VALUE |
| At 31 March 2020 |
| KABY ENGINEERS LIMITED (REGISTERED NUMBER: 01211144) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the Year Ended 31 March 2020 |
| 15. | INVESTMENT PROPERTY - continued |
| Company |
| 16. | STOCKS |
| Group | Company |
| 2020 | 2019 | 2020 | 2019 |
| £ | £ | £ | £ |
| Raw materials | 650,565 | 509,590 |
| Work-in-progress | 1,978,979 | 2,139,729 |
| Finished goods | 1,321,692 | 1,623,398 |
| 3,951,236 | 4,272,717 |
| 17. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| Group | Company |
| 2020 | 2019 | 2020 | 2019 |
| £ | £ | £ | £ |
| Trade debtors | 3,019,903 | 4,950,956 |
| Amounts owed by group undertakings | - | - |
| Other debtors | 1,022,256 | 1,121,749 |
| Directors' current accounts | 510,040 | 690,824 | 510,040 | 690,824 |
| VAT | - | 83,941 |
| Prepayments and accrued income | 14,590 | 270,579 |
| 4,566,789 | 7,118,049 |
| 18. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| Group | Company |
| 2020 | 2019 | 2020 | 2019 |
| £ | £ | £ | £ |
| Bank loans and overdrafts (see note 20) | 668,164 | 698,580 |
| Hire purchase contracts (see note 21) | 397,734 | 440,433 |
| Invoice financing | 2,551,605 | 4,028,252 |
| Trade creditors | 2,988,880 | 3,497,419 |
| Amounts owed to associates | 331,564 | 578,272 | 331,564 | 578,272 |
| Tax | 153,423 | - |
| Social security and other taxes | 414,848 | 350,268 |
| VAT | 91,326 | - | 91,326 | - |
| Other creditors | 107,616 | 239,283 |
| Accruals and deferred income | 240,097 | 102,534 |
| 7,945,257 | 9,935,041 |
| KABY ENGINEERS LIMITED (REGISTERED NUMBER: 01211144) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the Year Ended 31 March 2020 |
| 19. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
| Group | Company |
| 2020 | 2019 | 2020 | 2019 |
| £ | £ | £ | £ |
| Bank loans (see note 20) | 1,740,000 | 1,900,000 |
| Hire purchase contracts (see note 21) | 422,894 | 638,381 |
| 2,162,894 | 2,538,381 |
| 20. | LOANS |
| An analysis of the maturity of loans is given below: |
| Group | Company |
| 2020 | 2019 | 2020 | 2019 |
| £ | £ | £ | £ |
| Amounts falling due within one year or on | demand: |
| Bank overdrafts | 508,164 | 538,580 |
| Bank loans | 160,000 | 160,000 |
| 668,164 | 698,580 |
| Amounts falling due between one and two years: |
| Bank loans - 1-2 years | 160,000 | 160,000 |
| Amounts falling due between two and five years: |
| Bank loans - 2-5 years | 480,000 | 480,000 |
| Amounts falling due in more than five years: |
| Repayable by instalments |
| Bank loans more 5 yr by instal | 1,100,000 | 1,260,000 | 1,100,000 | 1,260,000 |
| The bank loans and overdraft are secured by a fixed and floating charge over the assets of the Group. |
| 21. | LEASING AGREEMENTS |
| Minimum lease payments fall due as follows: |
| Group |
| Hire purchase contracts |
| 2020 | 2019 |
| £ | £ |
| Net obligations repayable: |
| Within one year | 397,734 | 440,433 |
| Between one and five years | 422,894 | 638,381 |
| 820,628 | 1,078,814 |
| KABY ENGINEERS LIMITED (REGISTERED NUMBER: 01211144) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the Year Ended 31 March 2020 |
| 21. | LEASING AGREEMENTS - continued |
| Company |
| Hire purchase contracts |
| 2020 | 2019 |
| £ | £ |
| Net obligations repayable: |
| Within one year |
| Between one and five years |
| 22. | PROVISIONS FOR LIABILITIES |
| Group | Company |
| 2020 | 2019 | 2020 | 2019 |
| £ | £ | £ | £ |
| Deferred tax | - | 125,860 | - | 125,860 |
| Group |
| Deferred |
| tax |
| £ |
| Balance at 1 April 2019 | 125,860 |
| Balance at 31 March 2020 | 125,860 |
| Company |
| Deferred |
| tax |
| £ |
| Balance at 1 April 2019 |
| Credit to Profit and Loss Account during year | ( |
) |
| Balance at 31 March 2020 |
| 23. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 2020 | 2019 |
| value: | £ | £ |
| Ordinary | 20p | 100,000 | 100,000 |
| KABY ENGINEERS LIMITED (REGISTERED NUMBER: 01211144) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the Year Ended 31 March 2020 |
| 24. | RESERVES |
| Group |
| Retained | Revaluation |
| earnings | reserve | Totals |
| £ | £ | £ |
| At 1 April 2019 | 4,543,924 | 1,556,809 | 6,100,733 |
| Deficit for the year | (1,382,095 | ) | (1,382,095 | ) |
| Transfer | - | (8,780 | ) | (8,780 | ) |
| At 31 March 2020 | 3,161,829 | 1,548,029 | 4,709,858 |
| Company |
| Retained | Revaluation |
| earnings | reserve | Totals |
| £ | £ | £ |
| At 1 April 2019 | 7,049,462 |
| Deficit for the year | ( |
) | ( |
) |
| Transfer | - | (8,780 | ) | (8,780 | ) |
| At 31 March 2020 | 5,561,723 |
| 25. | ULTIMATE PARENT PARTY |
| The group is controlled by the Sanghera family trusts. |
| 26. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
| The following advances and credits to a director subsisted during the years ended 31 March 2020 and 31 March 2019: |
| 2020 | 2019 |
| £ | £ |
| B S Sanghera |
| Balance outstanding at start of year | 690,824 | 12,852 |
| Amounts advanced | 214,908 | 677,972 |
| Amounts repaid | (395,692 | ) | - |
| Amounts written off | - | - |
| Amounts waived | - | - |
| Balance outstanding at end of year | 510,040 | 690,824 |
| KABY ENGINEERS LIMITED (REGISTERED NUMBER: 01211144) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the Year Ended 31 March 2020 |
| 27. | RELATED PARTY DISCLOSURES |
| The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
| The below are related by common director Mr B Sanghera. |
| Included in other creditors is a loan from Hodit Engineering Limited of £135,787 (2019 - £135,787). The amount is interest free and repayable on demand. |
| Included in other creditors is a loan from Artos Tooling Engineers Limited of £358,664 (2019 - £358,644). This amount is interest free and repayable on demand. |
| Included in other creditors is a trade creditor from Ariel Fabrications Limited of £26,934 (2019 -£206,949). Ariel Fabrications Limited commenced winding up on 25 February 2020. |
| Goods and services supplied to this company during the year amounted to £NIL (2019 - £9,620). |
| Goods and services received from this company during the year amounted to £571,082 (2019 £960,956). |
| Included in other creditors there is a negative trade creditor amount of £188,717 (2019 - £122,108) due from Ariel Engineering Limited. This amount is interest free and repayable on demand. |
| Goods and services supplied to this company during the year amounted to £12,507 (2019 - £30,034). |
| Goods and services received from this company during the year amounted to £779,571 (2019 £908,569). |
| Included in trade creditors there is a negative amount of £NIL (2019 - £420,421). This is payment on account to Kaby Inc. to pay the suppliers in the USA. Kaby Inc have ceased to trade. |
| Included in other debtors is an amount of NIL (2019 £82,139) due from Ariel Imports Limited. |
| These transactions were on normal commercial terms. |
| Included in other debtors is a loan of £80,699 (2019 - £146,284) due from BPC Electronics Limited. This amount is net of interest. |
| Included in other debtors is an amount of £NIL (2019 - £10,758) due from Ariel Engineering Limited. This amount is net of interest. |
| Included in other debtors is a loan of £275,880 (2019 - £260,313) due from Ariel Investments Limited. This amount is net of interest. |
| Included in other debtors is an amount of £NIL (2019 - £100,082) due from Strikecoach Limited. This amount is net of interest. |
| Included in other debtors is a loan of £163 (2019 - £100) due from BKMP Investments Limited. This amount is net of interest. |
| Included in other debtors is an amount of £222,242 (2019 - £88,216) due from Kaby Precision Machining Limited. This amount is net of interest. |
| Good and services received from this company during the year amounted to £85,053 (2019 - NIL). |
| Included in other debtors is a loan of £275,510 (2019 - £275,510) due from Aaran 1 Engineering Limited. This amount is net of interest. |
| Other related parties |
| KABY ENGINEERS LIMITED (REGISTERED NUMBER: 01211144) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the Year Ended 31 March 2020 |
| During the year the company was charged rent of £NIL (2019 - £99,440) by BPC (Holdings) Limited, a company of which Dr G Sanghera is a controlling director. |
| Included in other debtors is an amount of £80,699 (2019 - £146,284) due from BPC Electronics Limited a company of which Dr G Sanghera and Mr G K Sanghera are directors. This amount is net of interest. |