ACCOUNTS - Final Accounts preparation

ACCOUNTS - Final Accounts preparation

ICRON GROUP HOLDING LIMITED - Company Information

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Registered number: 03704915









ICRON GROUP HOLDING LIMITED









Annual Report and Financial Statements

For the Year Ended 31 December 2019
 
ICRON GROUP HOLDING LIMITED
 
 
Company Information


Directors
L Subramaniam (appointed 16 December 2020)
B Allirajah (resigned 16 December 2020)




Registered number
03704915



Registered office
54 Marsh Wall
Canary Wharf

London

E14 9TP




Independent auditors
ASN Partnership Ltd
Chartered Certified Accountants & Statutory Auditor

47 York Road

Ilford

IG1 3AD




 
ICRON GROUP HOLDING LIMITED
 

Contents



Page
Group Strategic Report
 
2
Directors' Report
 
3 - 4
Directors' Responsibilities Statement
 
5
Independent Auditors' Report
 
6 - 8
Consolidated Profit and Loss Account
 
9
Consolidated Statement of Comprehensive Income
 
10
Consolidated Balance Sheet
 
11
Company Balance Sheet
 
12
Consolidated Statement of Changes in Equity
 
13
Company Statement of Changes in Equity
 
14
Consolidated Statement of Cash Flows
 
15
Notes to the Financial Statements
 
16 - 27

 
ICRON GROUP HOLDING LIMITED
 
 
Introduction
 
The director presents the strategic report for the year ended 31 December 2019.

Business review
 
The Directors of the Group are pleased with the company performance. The company made a profit for the year of £855,578 and has begun to see improvements as a result of restructuring in previous years and hence managed to retain it market share and stabilise both revenue and costs through distribution networks within the markets.
The Directors believe that the group has adequate financial resources to continue in operation for the foreseeable future and accordingly the financial statements have been prepared on a going concern basis. The group has access to sufficient cash resources, working capital remains well controlled and debtors and stock are of good quality and adequate provisions are held against both.

Principal risks and uncertainties
 
The principal risks and uncertainties facing the Group have been reviewed in detail by the Directors and no material additional uncertainty has been identified other than those detailed below. These risks are broadly grouped within Market, competitive, legislative and financial risk. Directors' risk management objectives consist of identifying and monitoring those tasks which could have an adverse impact on the Group's assets, profitability or cash flows.
Market
The performance of the domestic economy directly reflects upon the performance of the subsidiaries and in turn, imitates upon the Company. The director monitors economic movements and key customer strategic plans so that they can react promptly to changes in projected sales volumes to ensure that the company's and the subseries business remain competitive and profitable.
Competitive
The main competitive risks to the group and the Company arising from changing customer requirements based on market demand. The Company and its subsidiaries continue to invest in providing quality service and by working in partnership with customers in developing effective procedures to satisfy their current and future needs.
Legislative Risk
On a regular basis, the director reviews the company legislative risk exposure and ensure that all applicable directions are Observed.
Financial Risk
The company has established a risk and financial management framework whose primary objectives are to protect the company from events that hinder the achievements of its performance objectives. The objectives aim to limit undue counterparty exposure, ensure efficient working capital exists and monitor the management of risk at a business unit level.
Brexit
We identified the UK’s decision to leave the European Union as having had some immediate impact on our results as a consequence of the effect on currency markets. As the UK government continues its negotiations, uncertainty remains as to the extent to which our operations and financial performance will be affected in the longer term. At a group and business level, we have continued to prepare for changes in legislation, trade agreements and working practices in order to take advantage of the changing commercial landscape and to mitigate risk.

Page 1
 
ICRON GROUP HOLDING LIMITED
 

Group Strategic Report (continued)
For the Year Ended 31 December 2019

Financial key performance indicators
 
The key financial highlights are as follows:




          2019
          2018
          2017
          2016
          2015

         £'000
         £'000
         £'000
         £'000
         £'000
Turnover 
         5,349
         5,969
         8,609
       12,959
         8,100
Gross profit 
         1,247
         1,510
         1,870
         4,025
            793
Gross profit margin 
     23.32%
     25.30%
     20.98%
     31.90%
       9.79%
Profit/(Loss) before tax 
            856
            787
       -3,462
       10,784
         9,184
Profit/(Loss) for the year 
            856
            787
       -3,462
       10,784
         9,184


Future developments
 
The group plan to continue its present activities and current trading level. The group's outlook for the future, in the absence of any unexpected market issues, is that it will continue to grow its business both within existing and new countries of operation.


This report was approved by the board on 12 April 2021 and signed on its behalf.



L Subramaniam
Director

Page 2
 
ICRON GROUP HOLDING LIMITED
 
 
 
Directors' Report
For the Year Ended 31 December 2019

The Directors present their report and the financial statements for the year ended 31 December 2019.

Principal activity

The principal activity of the company and group continued to be that of provision of telecommunication services.

Director

The Director who served during the year was:

B Allirajah (resigned 16 December 2020)

Results and dividends

The profit for the year, after taxation, amounted to £855,578 (2018 - £786,552).

No ordinary dividends were paid. The director does not recommend payment of a further dividend.

Auditors

Under section 487(2) of the Companies Act 2006, ASN Partnership Ltd will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

Disclosure of information to auditors

Each of the persons who are Directors at the time when this Directors' Report is approved has confirmed that:
 
∙so far as the Director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

∙the Director has taken all the steps that ought to have been taken as a Director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Going concern

The Directors have reviewed the company’s objective, risk and management polices along with a Brexit impacting on market conditions and forecast with cash flow projections. As a result, and along with the support of the ultimate controlling party the Directors have concluded that the company has adequate and sufficient resources to continue to adopt a going concern basis in preparing the financial statements.
The events since the balance sheet caused by COVID-19 have caused interruption to the trading of the group. The group and company's directors believe there is sufficient resources and support from the ultimate controlling party to assist in providing financial support across the group. The group has access to government support schemes which additionally provide assistance with the group operational costs. Given the above factors the Directors are confident that virtual mobile network sector will improve once current restriction have been lifted. 

Page 3
 
ICRON GROUP HOLDING LIMITED
 
 
 
Directors' Report (continued)
For the Year Ended 31 December 2019

Post balance sheet events

Since the balance sheet date, the emergence of the COVID-19 virus has had a significant impact throughout the world. Our operations have been greatly affected since mid-March.  We do however remain hopeful that due to the financial resources available and along with the continued support of the UK government to telecoms sector that group will recover from this downturn in our operations. The events of COVID-19 are considered to be non-adjusting.
The Directors continue to monitor the pending changes arising from UK's Breixt deal, the Directors anticipate some potential impact and will assess, and actions changes to ensure the group operations are not affected.

This report was approved by the board on 12 April 2021 and signed on its behalf.
 





L Subramaniam
Director

Page 4
 
ICRON GROUP HOLDING LIMITED
 
 
Directors' Responsibilities Statement
For the Year Ended 31 December 2019

The Directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Group's financial statements and then apply them consistently;

∙make judgments 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 Group will continue in business.

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to 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.

Page 5
 
ICRON GROUP HOLDING LIMITED
 
 
 
Independent Auditors' Report to the Members of ICRON GROUP HOLDING LIMITED
 

Opinion


We have audited the financial statements of ICRON GROUP HOLDING LIMITED (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2019, which comprise the Group Profit and Loss Account, the Group Statement of Comprehensive Income, the Group and Company Balance Sheets, the Group Statement of Cash Flows, the Group and Company Statement of Changes in Equity and the related notes, 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's affairs as at 31 December 2019 and of the Group's profit 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 United Kingdom, including the Financial Reporting Council'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 or the parent Company'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.


Page 6
 
ICRON GROUP HOLDING LIMITED
 
 
 
Independent Auditors' Report to the Members of ICRON GROUP HOLDING LIMITED (continued)


Other information


The Directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our Auditors' Report 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.


Opinion 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Group Strategic Report and the Directors' Report 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 Directors' Report.


We have nothing to report in respect of the following matters in relation to which 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; or
∙the Directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Directors' Report and from the requirement to prepare a Group Strategic Report.


Page 7
 
ICRON GROUP HOLDING LIMITED
 
 
 
Independent Auditors' Report to the Members of ICRON GROUP HOLDING LIMITED (continued)


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 5, 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 is 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 an Auditors' Report 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 Group 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 Auditors' Report.





Nadeem Siddique B.Com FCCA (Senior Statutory Auditor)
  
for and on behalf of
ASN Partnership Ltd
 
Chartered Certified Accountants
Statutory Auditor
  
47 York Road
Ilford
IG1 3AD

12 April 2021
Page 8
 
ICRON GROUP HOLDING LIMITED
 
 
Consolidated Profit and Loss Account
For the Year Ended 31 December 2019

2019
2018
Note
£
£

  

Turnover
  
5,349,476
5,969,113

Cost of sales
  
(4,102,010)
(4,458,571)

Gross profit
  
1,247,466
1,510,542

Distribution costs
  
(101,845)
(174,420)

Administrative expenses
  
(290,043)
(549,570)

Operating profit
  
855,578
786,552

Profit for the financial year
  
855,578
786,552

Profit for the year attributable to:
  

Owners of the parent
  
855,578
786,552

  
855,578
786,552

Profit/(loss) for the financial year is all attributable to the owners of the parent company.

Page 9
 
ICRON GROUP HOLDING LIMITED
 

Consolidated Statement of Comprehensive Income
For the Year Ended 31 December 2019

2019
2018
Note
£
£


Profit for the financial year

  

855,578
786,552

Other comprehensive income
  

Total comprehensive income for the year
  
855,578
786,552

Profit for the year attributable to:
  


Owners of the parent Company
  
855,578
786,552

  
855,578
786,552

Total comprehensive income for the year is all attributable to the owners of the parent company
.
Page 10
 
ICRON GROUP HOLDING LIMITED
Registered number: 03704915

Consolidated Balance Sheet
As at 31 December 2019

2019
2018
Note
£
£

  

Current assets
  

Stocks
 10 
2,819,623
3,664,311

Debtors: amounts falling due within one year
 11 
295,045
322,587

Cash at bank and in hand
 12 
49,830
34,111

  
3,164,498
4,021,009

Creditors: amounts falling due within one year
 13 
(14,617,128)
(14,456,535)

Net current liabilities
  
 
 
(11,452,630)
 
 
(10,435,526)

Total assets less current liabilities
  
(11,452,630)
(10,435,526)

Creditors: amounts falling due after more than one year
 14 
(1,000,000)
(2,872,682)

Provisions for liabilities
  

Net assets excluding pension asset
  
(12,452,630)
(13,308,208)

Net liabilities
  
(12,452,630)
(13,308,208)


Capital and reserves
  

Called up share capital 
 15 
63,250
63,250

Share premium account
  
1,570,275
1,570,275

Capital redemption reserve
  
750
750

Profit and loss account
  
(14,086,905)
(14,942,483)

Equity attributable to owners of the parent Company
  
(12,452,630)
(13,308,208)

  
(12,452,630)
(13,308,208)



The financial statements were approved and authorised for issue by the board and were signed on its behalf on 12 April 2021.




L Subramaniam
Director

Page 11
 
ICRON GROUP HOLDING LIMITED
Registered number: 03704915

Company Balance Sheet
As at 31 December 2019

2019
2018
Note
£
£

Fixed assets
  

Investments
 8 
4,416
-

  
4,416
-

Current assets
  

Debtors
 11 
11,651,944
13,448,154

Cash at bank and in hand
 12 
24,590
1,608

  
11,676,534
13,449,762

Creditors: amounts falling due within one year
 13 
(14,775,973)
(14,694,963)

Net current liabilities
  
 
 
(3,099,439)
 
 
(1,245,201)

Total assets less current liabilities
  
(3,095,023)
(1,245,201)

  

Creditors: amounts falling due after more than one year
 14 
(1,000,000)
(2,872,682)

  

Net assets excluding pension asset
  
(4,095,023)
(4,117,883)

Net liabilities
  
(4,095,023)
(4,117,883)


Capital and reserves
  

Called up share capital 
 15 
63,250
63,250

Share premium account
  
1,570,275
1,570,275

Capital redemption reserve
  
750
750

Profit and loss account brought forward
  
(5,752,158)
(5,681,341)

Profit/(loss) for the year
  
22,860
(70,817)

Profit and loss account carried forward
  
(5,729,298)
(5,752,158)

  
(4,095,023)
(4,117,883)


As permitted by s408 Companies Act 2006, the c ompany has not presented its own profit and loss account and
related notes. The company’s profit for the year was £22,860 (2018 - £70,817).

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 12 April 2021.


L Subramaniam
Director

Page 12
 
ICRON GROUP HOLDING LIMITED
 

Consolidated Statement of Changes in Equity
For the Year Ended 31 December 2019


Called up share capital
Share premium account
Capital redemption reserve
Profit and loss account
Total equity

£
£
£
£
£


At 1 January 2018
63,250
1,570,275
750
(15,729,035)
(14,094,760)


Comprehensive income for the year

Profit for the year

-
-
-
786,552
786,552



At 1 January 2019
63,250
1,570,275
750
(14,942,483)
(13,308,208)


Comprehensive income for the year

Profit for the year

-
-
-
855,578
855,578


At 31 December 2019
63,250
1,570,275
750
(14,086,905)
(12,452,630)


Page 13
 
ICRON GROUP HOLDING LIMITED
 

Company Statement of Changes in Equity
For the Year Ended 31 December 2019


Called up share capital
Share premium account
Capital redemption reserve
Profit and loss account
Total equity

£
£
£
£
£


At 1 January 2018
63,250
1,570,275
750
(5,681,341)
(4,047,066)


Comprehensive income for the year

Loss for the year

-
-
-
(70,817)
(70,817)



At 1 January 2019
63,250
1,570,275
750
(5,752,158)
(4,117,883)


Comprehensive income for the year

Profit for the year

-
-
-
22,860
22,860


At 31 December 2019
63,250
1,570,275
750
(5,729,298)
(4,095,023)


Page 14
 
ICRON GROUP HOLDING LIMITED
 

Consolidated Statement of Cash Flows
For the Year Ended 31 December 2019

2019
2018
£
£

Cash flows from operating activities

Profit for the financial year
855,578
786,552

Adjustments for:

Decrease in stocks
844,688
629,867

Decrease/(increase) in debtors
27,542
(13,588,045)

(Decrease)/increase in creditors
(746,244)
13,176,515

Net cash generated from operating activities

981,564
1,004,889


Cash flows from investing activities

Purchase of fixed asset investments
(4,416)
-

Net cash from investing activities

(4,416)
-

Cash flows from financing activities

Repayment of other loans
(961,429)
(974,967)

Net cash used in financing activities
(961,429)
(974,967)

Net increase in cash and cash equivalents
15,719
29,922

Cash and cash equivalents at beginning of year
34,111
4,189

Cash and cash equivalents at the end of year
49,830
34,111


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
49,830
34,111

49,830
34,111


Page 15
 
ICRON GROUP HOLDING LIMITED
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2019

1.


General information

ICRON Group Holding Limited is a private company limited by shares incorporated in England and Wales.
The registered office is 54 Marsh Wall, Canary Wharf, London, E14 9TP.

The group consists of Icron Group Holding Limited and all of its subsidiaries. 

2.Accounting policies

 
2.1

Basis of preparation of financial statements


The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies.

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Profit and Loss Account in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Profit and Loss Account from the date on which control is obtained. They are deconsolidated from the date control ceases.
In accordance with the transitional exemption available in FRS 102, the group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being .

 
2.3

Going concern

At 31 December 2019 the Group had net current liabilities of £11,452,630 (2018: £10,435.526) and an operating profit of £855,578 (2018: £786,552), however the financial statements have been prepared on a going concern basis.
The Group's detailed cash flow forecasts and budgets show that the Group would have sufficient working capital for at least a year from the date these Financial Statements are approved. This is based on the assumptions that the budgeted forecasts are achievable. However the group continues to receive continued support from the shareholders. Given the above support, the directors consider it appropriate to adopt a going concern basis in preparing the financial statements.

Page 16
 
ICRON GROUP HOLDING LIMITED
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2019

2.Accounting policies (continued)

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
∙the Group has transferred the significant risks and rewards of ownership to the buyer;
∙the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
∙the amount of revenue can be measured reliably;
∙it is probable that the Group will receive the consideration due under the transaction; and
∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
∙the amount of revenue can be measured reliably;
∙it is probable that the Group will receive the consideration due under the contract;
∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and
∙the costs incurred and the costs to complete the contract can be measured reliably.

 
2.5

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Telephone switch equipment
-
20% straight line basis

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Page 17
 
ICRON GROUP HOLDING LIMITED
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2019

2.Accounting policies (continued)

 
2.6

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in unlisted Group shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Consolidated Profit and Loss Account for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

Investments in listed company shares are remeasured to market value at each Balance Sheet date. Gains and losses on remeasurement are recognised in profit or loss for the period.

 
2.7

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first outbasis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.8

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.9

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
2.10

Creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.11

Financial instruments

The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that
Page 18
 
ICRON GROUP HOLDING LIMITED
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2019

2.Accounting policies (continued)


2.11
Financial instruments (continued)

are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

Investments in non-derivative instruments that are equity to the issuer are measured:
∙at fair value with changes recognised in the Consolidated Profit and Loss Account if the shares are publicly traded or their fair value can otherwise be measured reliably;
∙at cost less impairment for all other investments.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Consolidated Profit and Loss Account.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Group would receive for the asset if it were to be sold at the balance sheet date.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or income as appropriate. The company does not currently apply hedge accounting for interest rate and foreign exchange derivatives.

Page 19
 
ICRON GROUP HOLDING LIMITED
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2019

3.


Turnover

An analysis of turnover by class of business is as follows:


2019
2018
£
£

Telecommunication services
4,149,476
4,769,113

Other services
1,200,000
1,200,000

5,349,476
5,969,113


Analysis of turnover by country of destination:

2019
2018
£
£

United Kingdom
5,349,476
5,969,113

5,349,476
5,969,113



4.


Operating profit

The operating profit is stated after charging:

2019
2018
£
£

Exchange differences
4,034
7,607

Other operating lease rentals
-
1,530


5.


Auditors' remuneration

2019
2018
£
£


Fees payable to the Group's auditor and its associates for the audit of the Group's annual financial statements
5,200
5,500



Page 20
 
ICRON GROUP HOLDING LIMITED
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2019

6.


Employees

2019
2018
£
£

Wages and salaries
85,388
85,780

Social security costs
6,363
6,423

Cost of defined contribution scheme
1,982
1,210

93,733
93,413


The average monthly number of employees, including the Directors, during the year was as follows:


        2019
        2018
            No.
            No.







Sales
1
1



Admin
2
2

3
3


7.


Tangible fixed assets

Group






Plant and machinery

£



Cost or valuation


At 1 January 2019
1,742,263



At 31 December 2019

1,742,263



Depreciation


At 1 January 2019
1,742,263



At 31 December 2019

1,742,263



Net book value



At 31 December 2019
-



At 31 December 2018
-

Page 21
 
ICRON GROUP HOLDING LIMITED
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2019

           7.Tangible fixed assets (continued)


Company






Plant and machinery

£

Cost or valuation


At 1 January 2019
100,391



At 31 December 2019

100,391



Depreciation


At 1 January 2019
100,391



At 31 December 2019

100,391



Net book value



At 31 December 2019
-



At 31 December 2018
-






Page 22
 
ICRON GROUP HOLDING LIMITED
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2019

8.


Fixed asset investments

Group





Shares in Group undertaking

£



Cost or valuation


At 1 January 2019
209,285



At 31 December 2019

209,285



Impairment


At 1 January 2019
209,285



At 31 December 2019

209,285



Net book value



At 31 December 2019
-



At 31 December 2018
-

Page 23
 
ICRON GROUP HOLDING LIMITED
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2019
Company





Investments in subsidiary companies

£



Cost or valuation


At 1 January 2019
209,285


Additions
4,416



At 31 December 2019

213,701



Impairment


At 1 January 2019
209,285



At 31 December 2019

209,285



Net book value



At 31 December 2019
4,416



At 31 December 2018
-


9.



Subsidiary undertakings





The following were subsidiary undertakings of the Company:

Name

Registered office

Principal activity

Class of shares

Holding

Icron Holding Limited
UK
Telecomunication services
Ordinary
100%
Vectone Mobile Distribution Limited
Ireland
In Liquidation
Ordinary
100%
Vectone Mobile Limited
Ireland
In Liquidation
Ordinary
100%
Icron Network Limited
UK
Telecomunication services
Ordinary
100%
Icron Services Limited
UK
Telecomunication services
Ordinary
100%
Vectone (Ireland) Limited
Ireland
In Liquidation
Ordinary
100%
Vectone Mobile GmbH
Austria
Dormant
Ordinary
100%

Page 24
 
ICRON GROUP HOLDING LIMITED
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2019

10.


Stocks

Group
Group
2019
2018
£
£

Finished goods and goods for resale
2,819,623
3,664,311

2,819,623
3,664,311



11.


Debtors

2019
2018
£
£


Trade debtors
271,207
294,716

Other debtors
23,838
27,871

295,045
322,587



12.


Cash and cash equivalents

Group
Group
Company
Company
2019
2018
2019
2018
£
£
£
£

Cash at bank and in hand
49,830
34,111
24,590
1,608

49,830
34,111
24,590
1,608



13.


Creditors: Amounts falling due within one year

2019
2018
£
£

Trade creditors
119,501
111,305

Other taxation and social security
91,484
49,996

Other creditors
14,398,935
14,287,931

Accruals and deferred income
7,208
7,303

14,617,128
14,456,535


The amounts due to group undertakings are interest free and repayable on demand.
The company’s bankers have a fixed and floating charge over the company’s assets.

Page 25
 
ICRON GROUP HOLDING LIMITED
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2019

14.


Creditors: Amounts falling due after more than one year

Group
Group
Company
Company
2019
2018
2019
2018
£
£
£
£

Other loans
1,000,000
2,872,682
1,000,000
2,872,682

1,000,000
2,872,682
1,000,000
2,872,682


The loan is interest free and repayable wholly within 5 years. The company obtained the loan against
Intellectual properties.t


15.


Share capital

2019
2018
£
£
Allotted, called up and fully paid



63,250 (2018 - 63,250) Ordinary shares of £1.00 each
63,250
63,250


16.


Post balance sheet events

Since the balance sheet date, the emergence of the COVID-19 virus has had a significant impact throughout the world. Our operations have been greatly affected since mid-March.  We do however remain hopeful that due to the financial resources available and along with the continued support of the UK government to telecoms sector that group will recover from this downturn in our operations. The events of COVID-19 are considered to be non-adjusting.
The Directors continue to monitor the pending changes arising from UK's Breixt deal, the Directors anticipate some potential impact and will assess, and actions changes to ensure the group operations are not affected.

Page 26
 
ICRON GROUP HOLDING LIMITED
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2019

17.


Related party transactions

Group
The balance due to Vectone Investment Holding Ltd. (formerly known as Mundio Investment Holding Ltd) at the balance sheet date was £13,190,966 (2018: £13,931,437). Mr B Allirajah is also the majority shareholder of Vectone Investment Holding Ltd.

Company:
The company has taken advantage of exemption available in FRS 102 whereby it has not disclosed transactions with the wholly owned subsidiary undertakings.

Mr B. Allirajah, the ultimate controlling party of the company, is also the majority shareholder and ultimate controlling party of Vectone Investment Holding Limited. The balance due to this company and its subsidiaries, at the balance sheet date, was £13,190,966 (2018: £13,931437). The amount due to associate companies which is interest free and repayable wholly within 5 years is £1m. The company obtained the loan against Intellectual properties. 

The amount owed by the Director as at the balance sheet date was £292,725 (2018: £352,725).



18.


Controlling party

The ultimate controlling party is Mr B Allirajah by virtue of his shareholding.

Page 27