NKW Holdings Limited - Accounts to registrar (filleted) - small 23.2.5

REGISTERED NUMBER: 11586927 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2023

FOR

NKW HOLDINGS LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTOR:

N K White

REGISTERED OFFICE:

42 Briarwood Road

Epsom

Surrey

KT17 2LY

REGISTERED NUMBER:

11586927 (England and Wales)

ACCOUNTANTS:

THP Limited

Chartered Accountants

Unit 4 Mulgrave Chambers

26-28 Mulgrave Road

Sutton

Surrey

SM2 6LE

FIXED ASSETS

Investments

4

73,463

70,758

CREDITORS

Amounts falling due within one year

5

2,943

2,246

NET CURRENT LIABILITIES

(2,943

)

(2,246

)

TOTAL ASSETS LESS CURRENT LIABILITIES

70,520

68,512

CAPITAL AND RESERVES

Called up share capital

275,000

275,000

Retained earnings

6

(204,480

)

(206,488

)

SHAREHOLDERS' FUNDS

70,520

68,512

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 July 2023.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 July 2023 in accordance with Section 476 of the Companies Act 2006.

The director acknowledges her responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the director and authorised for issue on 25 January 2024 and were signed by:

N K White - Director

1.	STATUTORY INFORMATION

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

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Going Concern

The financial statements are prepared on the going concern basis, which assumes the ability of the company to continue its activities for the foreseeable future, being a period of not less than twelve months from the approval of these accounts.

The company has a negative retained earnings reserve, following distributions in prior years that was paid in breach of the requirements of the Companies Act 2006 sections 829-853 as the company did not have sufficient profits available for distribution. The Director confirms that the company is taking the necessary steps to rectify this position in the forthcoming year and to start to convert the retained profit and loss account into a credit position.The position has been further amplified by the write down of its investment.

The company remains solvent as a result of share capital.

The director, having considered all the information available, is confident that the company has adequate overall reserves and resources to continue its operational activities for the foreseeable future. Accordingly, the director is satisfied that the going concern basis continues to be appropriate for the preparation of the annual financial statements.

Preparation of consolidated financial statements

The financial statements contain information about NKW Holdings Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 399(2A) of the Companies Act 2006 from the requirements to prepare consolidated financial statements.

Investments in subsidiaries

Investments in subsidiaries are held at cost less accumulated impairment.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the 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 balance sheet date.

Deferred tax

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

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 1 (2022 - 1 ) .

4.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 1 August 2022

70,758

Reversal of impairments

2,705

At 31 July 2023

73,463

NET BOOK VALUE

At 31 July 2023

73,463

At 31 July 2022

70,758

The company's investments at the Balance Sheet date in the share capital of companies include the following:

PNS Solutions Limited

Registered office: 42 Briarwood Road, Epsom, Surrey, KT17 2LY

Nature of business: renting and operating of real estate.

%

Class of shares:

holding

Ordinary shares

100.00

2023

2022

£

£

Aggregate capital and reserves

73,463

70,758

Profit/(loss) for the year

2,705

(21,912

)

5.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023

2022

£

£

Amounts owed to group undertakings

2,259

376

Accrued expenses

684

1,870

2,943

2,246

6.

RESERVES

Retained

earnings

£

At 1 August 2022

(206,488

)

Profit for the year

2,008

At 31 July 2023

(204,480

)

In a prior years the company received dividends (£52,267) from its subsidiary company despite a deficit in that company's distributable profit and loss reserves.

The Director acknowledges that the dividends were paid in breach of the requirements of the Companies Act 2006 sections 829-853 as that company did not have the sufficient profits available for distribution. Based on those dividend receipts, this company then paid dividends, £54,070 of which are subsequently in breach of the Companies Act 2006 sections 829-853.

The Director confirms that the subsidiary company is taking the necessary steps to try to rectify this position in the forthcoming year. In the meantime, the director (who is also the sole shareholder of the company), recognises that the payment of dividends in these circumstances is unlawful and acknowledges that repayment of all or part of the dividends may be required should a winding up order be made against the company.