Kelta Limited - Limited company accounts 23.1

Kelta Limited - Limited company accounts 23.1


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REGISTERED NUMBER: 09231573 (England and Wales)















GROUP STRATEGIC REPORT, REPORT OF THE DIRECTOR AND

CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

FOR

KELTA LIMITED

KELTA LIMITED (REGISTERED NUMBER: 09231573)

CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022










Page

Company Information 1

Group Strategic Report 2

Report of the Director 4

Report of the Independent Auditors 5

Consolidated Income Statement 8

Consolidated Other Comprehensive Income 9

Consolidated Statement of Financial Position 10

Company Statement of Financial Position 11

Consolidated Statement of Changes in Equity 12

Company Statement of Changes in Equity 13

Consolidated Statement of Cash Flows 14

Notes to the Consolidated Statement of Cash Flows 15

Notes to the Consolidated Financial Statements 16


KELTA LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2022







DIRECTOR: P Mehta





REGISTERED OFFICE: Eagle House
28 Billing Road
Northampton
Northamptonshire
NN1 5AJ





REGISTERED NUMBER: 09231573 (England and Wales)





AUDITORS: DNG Dove Naish LLP, Statutory Auditor
Eagle House
28 Billing Road
Northampton
Northamptonshire
NN1 5AJ

KELTA LIMITED (REGISTERED NUMBER: 09231573)

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022


The director presents his strategic report of the company and the group for the year ended 31 December 2022.

The trading results for the year and the group's financial position at the end of the year are shown in the attached financial statements.

REVIEW OF BUSINESS
Group turnover has increased by $10.4m (51%) on the prior year to $30.7m.

Gross profit margin has remained consistent at 20%.

The group has reported a net profit before tax of $1.8m compared to a loss of $20.3m in the prior period, the loss in the prior period being due to exceptional costs.

Total shareholders funds increased from $8.96m to $10.31m.

The group continues to work with its customers on the development of new products and service offerings to house new and evolving technologies. The group continues to invest and expand its operations, premises, manpower and machinery.

PRINCIPAL RISKS AND UNCERTAINTIES
Risk is a key element of the group's strategic management, whereby it addresses the risks attached to each of its activities. This is reflected in the group's Business Continuity plan, which incorporates Risk Tolerance Matrices, Business Impact Analyses and Action Plans.

Regular reviews of the group's Business Continuity plan, policies, quality control and health and safety procedures are undertaken as part of the group's risk management process.

In common with many manufacturing businesses the group continues to be exposed to the effects of global competition but focuses on providing quality products and solutions for its customers.

The group's activities expose it to a number of financial risks including liquidity risk and currency risk. The group does not use derivative financial instruments for speculative purposes.

Liquidity risk
In order to maintain liquidity to ensure that sufficient funds are available for on-going operations and future developments, the group uses a mixture of long-term and short-term debt finance and equity funding and inter-company treasury management.

Currency risk
The group undertakes trading transactions in currencies other than US Dollars and has funding instruments denominated in foreign currency. The foreign exchange risk is managed by holding cash resources in foreign currency.


KELTA LIMITED (REGISTERED NUMBER: 09231573)

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022

KEY PERFORMANCE INDICATORS
The group operates with a range of key performance indicators, the principal measures fall within the following categories; profitability, sales & customer service, resource & cost effectiveness. These are reviewed at regularly.

SIGNED BY ORDER OF THE DIRECTORS:





P Mehta - Director


19 September 2023

KELTA LIMITED (REGISTERED NUMBER: 09231573)

REPORT OF THE DIRECTOR
FOR THE YEAR ENDED 31 DECEMBER 2022


The director presents his report with the financial statements of the company and the group for the year ended 31 December 2022.

PRINCIPAL ACTIVITIES
The principal activities of the group in the year under review were those of design, manufacture and sale of engineered products and the holding of investments.

DIVIDENDS
No dividends will be distributed for the year ended 31 December 2022.

DIRECTOR
P Mehta held office during the whole of the period from 1 January 2022 to the date of this report.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES
The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless he is 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 director is 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 director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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 director is 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 he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS
The auditors, DNG Dove Naish LLP, Statutory Auditor, will be proposed for re-appointment at the forthcoming Annual General Meeting.

SIGNED BY ORDER OF THE DIRECTORS:





P Mehta - Director


19 September 2023

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
KELTA LIMITED


Opinion
We have audited the financial statements of Kelta Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2022 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, 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 December 2022 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 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
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.

Other information
The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, 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 this gives rise to a material misstatement in the financial statements themselves. 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
KELTA LIMITED


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 Director 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 Director 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 Director.

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 director's remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of director
As explained more fully in the Statement of Director's Responsibilities set out on page four, the director is 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 director determines 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 director is 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 director either intends to liquidate the group or the parent company or to cease operations, or has no realistic alternative but to do so.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
KELTA LIMITED


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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We obtained an understanding of the legal and regulatory frameworks within which the company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, United Kingdom Generally Accepted Accounting Practice and relevant Taxation legislation

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be the override of controls by management and the understatement of revenue. Our audit procedures to respond to these risks included enquiries of management about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing meeting minutes, regulatory correspondence and professional fees, detailed substantive testing on the completeness of income, and reviewing accounting estimates for biases.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations.

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.




Andrew Clifford (Senior Statutory Auditor)
for and on behalf of DNG Dove Naish LLP, Statutory Auditor
Eagle House
28 Billing Road
Northampton
Northamptonshire
NN1 5AJ

19 September 2023

KELTA LIMITED (REGISTERED NUMBER: 09231573)

CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2022

2022 2021
Notes $    $   

TURNOVER 3 30,747,705 20,395,370

Cost of sales 24,631,206 16,309,487
GROSS PROFIT 6,116,499 4,085,883

Administrative expenses 4,328,588 25,467,359
1,787,911 (21,381,476 )

Other operating income 5,283 123,680
OPERATING PROFIT/(LOSS) 5 1,793,194 (21,257,796 )

Gain on sale of investments 6 - 910,730
1,793,194 (20,347,066 )

Interest receivable and similar income 2,256 3,116
1,795,450 (20,343,950 )

Interest payable and similar expenses 7 985 3,252
PROFIT/(LOSS) BEFORE TAXATION 1,794,465 (20,347,202 )

Tax on profit/(loss) 8 84,730 156,549
PROFIT/(LOSS) FOR THE FINANCIAL
YEAR

1,709,735

(20,503,751

)
Profit/(loss) attributable to:
Owners of the parent 1,709,735 (20,503,751 )

KELTA LIMITED (REGISTERED NUMBER: 09231573)

CONSOLIDATED OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022

2022 2021
Notes $    $   

PROFIT/(LOSS) FOR THE YEAR 1,709,735 (20,503,751 )


OTHER COMPREHENSIVE (LOSS)/INCOME
Currency translation differences (359,317 ) 88,520
Other reserve movements
Income tax relating to other
comprehensive (loss)/income

-

-
OTHER COMPREHENSIVE
(LOSS)/INCOME FOR THE YEAR, NET
OF INCOME TAX


(359,317


)


88,520
TOTAL COMPREHENSIVE
INCOME/(LOSS) FOR THE YEAR

1,350,418

(20,415,231

)

Total comprehensive income attributable to:
Owners of the parent 1,350,418 (20,415,231 )

KELTA LIMITED (REGISTERED NUMBER: 09231573)

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
31 DECEMBER 2022

2022 2021
Notes $    $    $    $   
FIXED ASSETS
Intangible assets 10 90,590 306,525
Tangible assets 11 1,720,311 1,578,176
Investments 12 - -
1,810,901 1,884,701

CURRENT ASSETS
Stocks 13 5,066,866 3,896,390
Debtors 14 6,276,680 4,508,576
Cash at bank and in hand 2,226,273 2,369,252
13,569,819 10,774,218
CREDITORS
Amounts falling due within one year 15 4,679,567 3,350,555
NET CURRENT ASSETS 8,890,252 7,423,663
TOTAL ASSETS LESS CURRENT
LIABILITIES

10,701,153

9,308,364

PROVISIONS FOR LIABILITIES 17 393,789 351,418
NET ASSETS 10,307,364 8,956,946

CAPITAL AND RESERVES
Called up share capital 18 1,555 1,555
Translation reserve 19 (1,213,145 ) (853,828 )
Retained earnings 19 11,518,954 9,809,219
SHAREHOLDERS' FUNDS 10,307,364 8,956,946

The financial statements were approved by the director and authorised for issue on 19 September 2023 and were signed by:





P Mehta - Director


KELTA LIMITED (REGISTERED NUMBER: 09231573)

COMPANY STATEMENT OF FINANCIAL POSITION
31 DECEMBER 2022

2022 2021
Notes $    $    $    $   
FIXED ASSETS
Intangible assets 10 - -
Tangible assets 11 - -
Investments 12 4,408,596 3,076,652
4,408,596 3,076,652

CURRENT ASSETS
Debtors 14 5,185,312 5,170,000
Cash at bank 713,457 710,294
5,898,769 5,880,294
NET CURRENT ASSETS 5,898,769 5,880,294
TOTAL ASSETS LESS CURRENT
LIABILITIES

10,307,365

8,956,946

CAPITAL AND RESERVES
Called up share capital 18 1,555 1,555
Retained earnings 19 10,305,810 8,955,391
SHAREHOLDERS' FUNDS 10,307,365 8,956,946

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

1,350,419

(20,415,231

)

The financial statements were approved by the director and authorised for issue on 19 September 2023 and were signed by:





P Mehta - Director


KELTA LIMITED (REGISTERED NUMBER: 09231573)

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022

Called up
share Retained Translation Surplus Total
capital earnings reserve reserve equity
$    $    $    $    $   

Balance at 1 January 2021 1,555 29,770,337 (942,348 ) 542,633 29,372,177

Changes in equity
Total comprehensive loss - (19,961,118 ) 88,520 (542,633 ) (20,415,231 )
Balance at 31 December 2021 1,555 9,809,219 (853,828 ) - 8,956,946

Changes in equity
Total comprehensive income - 1,709,735 (359,317 ) - 1,350,418
Balance at 31 December 2022 1,555 11,518,954 (1,213,145 ) - 10,307,364

KELTA LIMITED (REGISTERED NUMBER: 09231573)

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022

Called up
share Retained Total
capital earnings equity
$    $    $   

Balance at 1 January 2021 1,555 29,370,622 29,372,177

Changes in equity
Total comprehensive loss - (20,415,231 ) (20,415,231 )
Balance at 31 December 2021 1,555 8,955,391 8,956,946

Changes in equity
Total comprehensive income - 1,350,419 1,350,419
Balance at 31 December 2022 1,555 10,305,810 10,307,365

KELTA LIMITED (REGISTERED NUMBER: 09231573)

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2022

2022 2021
Notes $    $   
Cash flows from operating activities
Cash generated from operations 1 492,361 (21,154,927 )
Interest paid (985 ) (3,252 )
Tax paid (31,644 ) (64,989 )
Net cash from operating activities 459,732 (21,223,168 )

Cash flows from investing activities
Purchase of tangible fixed assets (614,862 ) (271,911 )
Purchase of fixed asset investments - (6,180 )
Sale of tangible fixed assets 9,895 285,188
Sale of fixed asset investments - 4,794,351
Interest received 2,256 3,116
Net cash from investing activities (602,711 ) 4,804,564

Decrease in cash and cash equivalents (142,979 ) (16,418,604 )
Cash and cash equivalents at
beginning of year

2

2,369,252

18,787,856

Cash and cash equivalents at end of
year

2

2,226,273

2,369,252

KELTA LIMITED (REGISTERED NUMBER: 09231573)

NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2022


1. RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
2022 2021
$    $   
Profit/(loss) before taxation 1,794,465 (20,347,202 )
Depreciation charges 489,648 491,282
(Profit)/loss on disposal of fixed assets (9,895 ) 233
Translation differences (202,662 ) 97,986
Finance costs 985 3,252
Finance income (2,256 ) (3,116 )
2,070,285 (19,757,565 )
(Increase)/decrease in stocks (1,170,476 ) 363,543
Increase in trade and other debtors (1,769,958 ) (894,798 )
Increase/(decrease) in trade and other creditors 1,362,510 (866,107 )
Cash generated from operations 492,361 (21,154,927 )

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 December 2022
31/12/22 1/1/22
$    $   
Cash and cash equivalents 2,226,273 2,369,252
Year ended 31 December 2021
31/12/21 1/1/21
$    $   
Cash and cash equivalents 2,369,252 18,787,856


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1/1/22 Cash flow At 31/12/22
$    $    $   
Net cash
Cash at bank and in hand 2,369,252 (142,979 ) 2,226,273
2,369,252 (142,979 ) 2,226,273
Total 2,369,252 (142,979 ) 2,226,273

KELTA LIMITED (REGISTERED NUMBER: 09231573)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022


1. STATUTORY INFORMATION

Kelta Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

The presentation currency of the financial statements is the US Dollar ($).


2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Basis of consolidation
The consolidated financial statements incorporate the financial statements of the company and entities controlled by the company (its subsidiaries an joint ventures) made up to 31 December each period. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

Subsidiaries
Subsidiaries are fully consolidated from the date on which control is transferred to the group and de-consolidated from the date that control ceases.

Inter-company transactions, balances and unrealised gains on transactions between group companies are eliminated. Unrealised losses are also eliminated. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group.

The consolidated financial statements incorporate the assets, liabilities and results of the following entities in accordance with the accounting policy described above:

Name of entity Registered office Country of
incorporation
Class
ofshares held
Equity
holding %

Tii Technologies Limited As Kelta Limited UK Ordinary 100
Eurocraft Technologies
Limited
Cinderbank, Dudley DY2
9AE
UK Ordinary 100
Tii Porta Tech SA de CV Mexico Ordinary 100
Tii Tecnologia Ltda Brazil Ordinary 100

Significant judgements and estimates
The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the company accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed within the individual accounting policies below.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Goodwill
Goodwill, being the amount paid in connection with the acquisition of a business in 2013, is being amortised evenly over its estimated useful life of ten years.

KELTA LIMITED (REGISTERED NUMBER: 09231573)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2022


2. ACCOUNTING POLICIES - continued

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Short leasehold- over the life of the lease
Plant and machinery- 10% to 33.33% on cost
Fixtures and fittings- 20% to 33.33% on cost
Motor vehicles- 20% on cost

Fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Where parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items of property, plant and equipment.

Depreciation methods, useful lives and residual values are reviewed at each period end. The selection of these residual values and estimated lives requires the exercise of judgement. The directors are required to assess whether there is an indication of impairment to the carrying value of assets. In making that assessment, judgements are made in estimating value in use. The director considers that the individual carrying values of assets are supportable by their value in use.

Investments in associates
Investments in associate undertakings are recognised at cost.

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 is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Financial instruments
Cash and cash equivalents in the Statement of Financial Position comprise cash at banks and in hand and short term deposits with an original maturity date of three months or less.

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the statement of comprehensive income under administrative expenses.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the entity after deducting all of its financial liabilities.

Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability.

Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity.


KELTA LIMITED (REGISTERED NUMBER: 09231573)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2022


2. ACCOUNTING POLICIES - continued
Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

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

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.

3. TURNOVER

The turnover and profit (2021 - loss) before taxation are attributable to the principal activities of the group.

An analysis of turnover by class of business is given below:

2022 2021
$    $   
Sale of goods 30,747,705 20,395,370
30,747,705 20,395,370

An analysis of turnover by geographical market is given below:

2022 2021
$    $   
United Kingdom 30,449,316 19,682,811
Europe 298,389 62,401
Rest of the World - 650,158
30,747,705 20,395,370

KELTA LIMITED (REGISTERED NUMBER: 09231573)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2022


4. EMPLOYEES AND DIRECTORS
2022 2021
$    $   
Wages and salaries 5,922,637 5,211,467
Social security costs 409,807 383,490
Other pension costs 120,905 134,154
6,453,349 5,729,111

The average number of employees during the year was as follows:
2022 2021

Office and management 9 7
Production and sales 115 114
124 121

The average number of employees by undertakings that were proportionately consolidated during the year was 124 (2021 - 121 ) .

2022 2021
$    $   
Director's remuneration - -

5. OPERATING PROFIT/(LOSS)

The operating profit (2021 - operating loss) is stated after charging/(crediting):

2022 2021
$    $   
Depreciation - owned assets 293,849 279,176
(Profit)/loss on disposal of fixed assets (9,895 ) 233
Goodwill amortisation 181,192 204,354
Auditors' remuneration 20,001 20,214
Foreign exchange differences 1,177,374 46,528

6. GAIN ON SALE OF INVESTMENTS
2022 2021
$    $   
Gain on sale of investments - 910,730

7. INTEREST PAYABLE AND SIMILAR EXPENSES
2022 2021
$    $   
Other interest payable 985 3,252

KELTA LIMITED (REGISTERED NUMBER: 09231573)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2022


8. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2022 2021
$    $   
Current tax:
UK corporation tax - 89,239
Over/under provision in prior
year - (6 )
Total current tax - 89,233

Deferred tax 84,730 67,316
Tax on profit/(loss) 84,730 156,549

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2022 2021
$    $   
Profit/(loss) before tax 1,794,465 (20,347,202 )
Profit/(loss) multiplied by the standard rate of corporation tax in the
UK of 19 % (2021 - 19 %)

340,948

(3,865,968

)

Effects of:
Expenses not deductible for tax purposes 2,260 25,681
Income not taxable for tax purposes - (173,039 )
Capital allowances in excess of depreciation (60,900 ) -
Depreciation in excess of capital allowances - 17,414
Utilisation of tax losses (282,308 ) -
Adjustments to tax charge in respect of previous periods - (6 )

Deferred tax 84,730 67,316
Tax losses unused - 4,085,151
Total tax charge 84,730 156,549

Tax effects relating to effects of other comprehensive income

2022
Gross Tax Net
$    $    $   
Currency translation differences (359,317 ) - (359,317 )
Other reserve movements
(359,317 ) - (359,317 )


KELTA LIMITED (REGISTERED NUMBER: 09231573)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2022


8. TAXATION - continued
2021
Gross Tax Net
$    $    $   
Currency translation differences 88,520 - 88,520
Other reserve movements
88,520 - 88,520

9. INDIVIDUAL INCOME STATEMENT

As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements.


10. INTANGIBLE FIXED ASSETS

Group
Goodwill
$   
COST
At 1 January 2022 1,839,179
Exchange differences (208,461 )
At 31 December 2022 1,630,718
AMORTISATION
At 1 January 2022 1,532,654
Amortisation for year 181,192
Exchange differences (173,718 )
At 31 December 2022 1,540,128
NET BOOK VALUE
At 31 December 2022 90,590
At 31 December 2021 306,525

KELTA LIMITED (REGISTERED NUMBER: 09231573)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2022


11. TANGIBLE FIXED ASSETS

Group
Fixtures
Short Plant and and Motor
leasehold machinery fittings vehicles Totals
$    $    $    $    $   
COST
At 1 January 2022 39,273 3,144,193 393,922 - 3,577,388
Additions 82,014 408,926 98,722 25,200 614,862
Disposals - (488,552 ) (2,811 ) - (491,363 )
Exchange differences (4,451 ) (356,375 ) (44,650 ) - (405,476 )
At 31 December 2022 116,836 2,708,192 445,183 25,200 3,295,411
DEPRECIATION
At 1 January 2022 28,999 1,856,007 114,206 - 1,999,212
Charge for year 2,152 200,020 87,057 4,620 293,849
Eliminated on disposal - (488,552 ) (2,811 ) - (491,363 )
Exchange differences (3,286 ) (210,368 ) (12,944 ) - (226,598 )
At 31 December 2022 27,865 1,357,107 185,508 4,620 1,575,100
NET BOOK VALUE
At 31 December 2022 88,971 1,351,085 259,675 20,580 1,720,311
At 31 December 2021 10,274 1,288,186 279,716 - 1,578,176

12. FIXED ASSET INVESTMENTS

Company
Shares in
group
undertakings
$   
COST OR VALUATION
At 1 January 2022 3,076,652
Impairments 1,331,944
At 31 December 2022 4,408,596
NET BOOK VALUE
At 31 December 2022 4,408,596
At 31 December 2021 3,076,652

KELTA LIMITED (REGISTERED NUMBER: 09231573)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2022


12. FIXED ASSET INVESTMENTS - continued

Company

Cost or valuation at 31 December 2022 is represented by:

Shares in
group
undertakings
$   
Valuation in 2015 19,929,383
Valuation in 2016 (85,893,765 )
Valuation in 2017 2,085,874
Valuation in 2018 (631,553 )
Valuation in 2019 4,760,994
Valuation in 2020 (585,935 )
Valuation in 2021 (21,343,076 )
Valuation in 2022 1,331,944
Cost 84,754,730
4,408,596

The group or the company's investments at the Statement of Financial Position date in the share capital of companies include the following:

Subsidiaries

Tii Technologies Limited
Registered office: Eagle House, 28 Billing Road, Northampton, NN1 5AJ, UK
Nature of business: Distribution of telephone connection equipment
%
Class of shares: holding
Ordinary 100.00
2022 2021
$    $   
Aggregate capital and reserves 4,407,918 3,076,653
Profit/(loss) for the year 1,731,645 (21,470,831 )

Eurocraft Technologies Limited
Registered office: Cinderbank, Dudley, DY2 9AE, UK
Nature of business: Manufacture of enclosure systems
%
Class of shares: holding
Ordinary 100.00
2022 2021
$    $   
Aggregate capital and reserves 8,676,390 7,294,129
Profit for the year 2,276,935 1,307,566

KELTA LIMITED (REGISTERED NUMBER: 09231573)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2022


12. FIXED ASSET INVESTMENTS - continued

Tii Porta Tech SA de CV
Registered office: Mexico
Nature of business: Sales
%
Class of shares: holding
Ordinary 100.00
2022 2021
$    $   
Aggregate capital and reserves 239,292 231,101
(Loss)/profit for the year (5,219 ) 16,307

Tii Tecnologia Ltda
Registered office: Brazil
Nature of business: Sales and marketing
%
Class of shares: holding
Ordinary 100.00
2022 2021
$    $   
Aggregate capital and reserves 100,406 113,220
Loss for the year (244 ) (445 )


13. STOCKS

Group
2022 2021
$    $   
Raw materials 3,377,796 1,922,113
Work-in-progress 985,192 1,764,311
Finished goods 703,878 209,966
5,066,866 3,896,390

14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2022 2021 2022 2021
$    $    $    $   
Trade debtors 5,875,820 3,836,997 - -
Amounts owed by group undertakings - - 5,170,000 5,170,000
Other debtors 60,007 135,504 - -
Tax 14,506 16,360 - -
Prepayments and accrued income 326,347 519,715 15,312 -
6,276,680 4,508,576 5,185,312 5,170,000

KELTA LIMITED (REGISTERED NUMBER: 09231573)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2022


15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group
2022 2021
$    $   
Trade creditors 3,274,884 2,311,840
Tax 20 33,518
Social security and other taxes 131,042 126,877
VAT 754,381 51,279
Other creditors 20,931 30,144
Accruals and deferred income 498,309 796,897
4,679,567 3,350,555

16. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Group
Non-cancellable operating leases
2022 2021
$    $   
Within one year 372,695 178,181
Between one and five years 105,536 123,538
478,231 301,719

17. PROVISIONS FOR LIABILITIES

Group
2022 2021
$    $   
Deferred tax 291,401 235,942

Other provisions 102,388 115,476

Aggregate amounts 393,789 351,418

Group
Deferred
tax Dilap.provision
$    $   
Balance at 1 January 2022 235,942 115,476
Provided during year 55,459 -
Provision released - (13,088 )
Balance at 31 December 2022 291,401 102,388

KELTA LIMITED (REGISTERED NUMBER: 09231573)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2022


18. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2022 2021
value: $    $   
1,001 Ordinary £1 1,555 1,555

19. RESERVES

Group
Retained Translation
earnings reserve Totals
$    $    $   

At 1 January 2022 9,809,219 (853,828 ) 8,955,391
Profit for the year 1,709,735 1,709,735
Movement for the period - (359,317 ) (359,317 )
At 31 December 2022 11,518,954 (1,213,145 ) 10,305,809

Company
Retained
earnings
$   

At 1 January 2022 8,955,391
Profit for the year 1,350,419
At 31 December 2022 10,305,810


20. ULTIMATE PARENT COMPANY

Kelta Inc (incorporated in USA ) is regarded by the director as being the company's ultimate parent company.

21. 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.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.