Smartwater Technology Research Limited - Limited company accounts 16.1

REGISTERED NUMBER: 06276943 (England and Wales)

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE PERIOD 1 JULY 2014 TO 31 DECEMBER 2015

FOR

SMARTWATER TECHNOLOGY RESEARCH LIMITED

Page

Company Information

1

Report of the Directors

2

Report of the Independent Auditors

3

Profit and Loss Account

5

Balance Sheet

6

Notes to the Financial Statements

7

DIRECTORS:

M Cleary

P A Cleary

SECRETARY:

F N Mattinson

REGISTERED OFFICE:

27 Queen Anne's Gate

London

SW1H 9BU

REGISTERED NUMBER:

06276943 (England and Wales)

SENIOR STATUTORY AUDITOR:

Ian Cattell ACA

AUDITORS:

Crombies Accountants Limited

Chartered Accountants and Statutory Auditor

34 Waterloo Road

Wolverhampton

West Midlands

WV1 4DG

The directors present their report with the financial statements of the company for the period 1 July 2014 to 31 December 2015.

PRINCIPAL ACTIVITY

The principal activity of the company in the period under review was that of the development, marketing and sale of new

techniques in forensic science.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 July 2014 to the date of this report.

M Cleary

P A Cleary

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Report of the Directors and the financial statements in accordance with

applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors

have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting

Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not

approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the

company and of the profit or loss of the company for that period. In preparing these financial statements, the directors

are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the

company's transactions and disclose with reasonable accuracy at any time the financial position of the company and

enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for

safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud

and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act

2006) of which the company's auditors are unaware, and each director 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 company's

auditors are aware of that information.

AUDITORS

The auditors, Crombies Accountants Limited, will be proposed for re-appointment at the forthcoming Annual General

Meeting.

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small

companies.

ON BEHALF OF THE BOARD:

F N Mattinson - Secretary

16 September 2016

We have audited the financial statements of Smartwater Technology Research Limited for the period ended

31 December 2015 on pages five to nine. The financial reporting framework that has been applied in their preparation is

applicable law and the Financial Reporting Standard for Smaller Entities (effective April 2008) (United Kingdom

Generally Accepted Accounting Practice applicable to Smaller Entities).

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.

Respective responsibilities of directors and auditors

As explained more fully in the Statement of Directors' Responsibilities set out on page two, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors.

Scope of the audit of the financial statements

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give

reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error.

This includes an assessment of: whether the accounting policies are appropriate to the company's circumstances and

have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by

the directors; and the overall presentation of the financial statements. In addition, we read all the financial and

non-financial information in the Report of the Directors to identify material inconsistencies with the audited financial

statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent

with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material

misstatements or inconsistencies we consider the implications for our report.

Opinion on financial statements

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 2015 and of its loss for the period then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice applicable to Smaller Entities; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Opinion on other matter prescribed by the Companies Act 2006

In our opinion the information given in the Report of the Directors for the financial year for which the financial

statements are prepared is consistent with the financial statements.

Matters on which we are required to report by exception

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, or returns adequate for our audit have not been received from branches not visited by us; or

-	the 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' exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Directors.

Ian Cattell ACA (Senior Statutory Auditor)

for and on behalf of Crombies Accountants Limited

Chartered Accountants and Statutory Auditor

34 Waterloo Road

Wolverhampton

West Midlands

WV1 4DG

16 September 2016

TURNOVER

-

-

Administrative expenses

104,151

90,797

(104,151

)

(90,797

)

Other operating income

-

30,000

OPERATING LOSS

2

(104,151

)

(60,797

)

Interest receivable and similar income

26

160

LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION

(104,125

)

(60,637

)

Tax on loss on ordinary activities

3

-

(11,941

)

LOSS FOR THE FINANCIAL PERIOD

(104,125

)

(48,696

)

FIXED ASSETS

Intangible assets

4

54,698

58,877

CURRENT ASSETS

Debtors

5

-

41,941

Cash at bank

2,516

2,140

2,516

44,081

CREDITORS

Amounts falling due within one year

6

2,396

3,623

NET CURRENT ASSETS

120

40,458

TOTAL ASSETS LESS CURRENT LIABILITIES

54,818

99,335

CREDITORS

Amounts falling due after more than one year

7

65,279

5,671

NET (LIABILITIES)/ASSETS

(10,461

)

93,664

CAPITAL AND RESERVES

Called up share capital

8

1

1

Profit and loss account

9

(10,462

)

93,663

SHAREHOLDERS' FUNDS

(10,461

)

93,664

The financial statements have been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies and with the Financial Reporting Standard for Smaller Entities (effective April 2008).

The financial statements were approved by the Board of Directors on 16 September 2016 and were signed on its behalf by:

P A Cleary - Director

1.	ACCOUNTING POLICIES

Accounting convention

The financial statements have been prepared under the historical cost convention and in accordance with the

Financial Reporting Standard for Smaller Entities (effective April 2008).

Intangible fixed assets

Patents and licences are valued at cost and amortised at 4% per annum over their expected useful life of 25 years.

Deferred tax

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

sheet date.

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

Government grants

Grants are credited to deferred revenue. Grants towards capital expenditure are released to the profit and loss

account over the life of the project. Grants towards revenue expenditure are released to the profit and loss

account as the related expenditure is incurred.

Going concern

The company is dependent upon continued support being made available by group companies to enable it to

continue operating and to meet its liabilities as they fall due. The directors have received assurances that support

is available for the foreseeable future and as a consequence they believe it is appropriate to prepare the financial

statements on a going concern basis.

2.	OPERATING LOSS

The operating loss is stated after charging:

Period

1.7.14

to

Year Ended

31.12.15

30.6.14

£

£

Patents and licences amortisation

4,179

2,786

Auditors' remuneration

1,800

1,200

Directors' remuneration and other benefits etc

82,901

72,982

3.

TAXATION

Analysis of the tax credit

The tax credit on the loss on ordinary activities for the period was as follows:

Period

1.7.14

to

Year Ended

31.12.15

30.6.14

£

£

Current tax:

UK corporation tax

-

(11,941

)

Tax on loss on ordinary activities

-

(11,941

)

4.	INTANGIBLE FIXED ASSETS

Other

intangible

assets

£

COST

At 1 July 2014

and 31 December 2015

69,648

AMORTISATION

At 1 July 2014

10,771

Charge for period

4,179

At 31 December 2015

14,950

NET BOOK VALUE

At 31 December 2015

54,698

At 30 June 2014

58,877

5.

DEBTORS

2015

2014

£

£

Amounts falling due within one year:

Other debtors

-

11,941

Amounts falling due after more than one year:

Amounts owed by group undertakings

-

30,000

Aggregate amounts

-

41,941

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2015

2014

£

£

Trade creditors

-

155

Taxation and social security

596

2,268

Other creditors

1,800

1,200

2,396

3,623

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2015

2014

£

£

Amounts owed to group undertakings

65,279

5,671

8.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2015

2014

value:

£

£

1

Ordinary

£1

1

1

9.

RESERVES

Profit

and loss

account

£

At 1 July 2014

93,663

Deficit for the period

(104,125

)

At 31 December 2015

(10,462

)

10.	ULTIMATE PARENT COMPANY

The company's ultimate parent undertaking at the balance sheet date was Smartwater Limited, a company

incorporated in England.

11.	RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 8 Related

Party Disclosures, not to disclose related party transactions with wholly owned subsidiaries within the group.

The following companies are related to Smartwater Research Limited:

Parent undertaking-

Smartwater Limited

Smartwater Limited owned 100% of the share capital of the company throughout the period.

Fellow subsidiaries-

Smartwater Heritage Limited

Smartwater International Limited

Smartwater Technology Limited

Smartwater SAS

Themis Risk Limited

Smartwater Technology Bond Plc

Guarantees and commitments:

The company's bankers hold a fixed and floating charge over the assets of the company and it's fellow

subsidiaries, Smartwater Heritage Limited, Smartwater International Limited, Smartwater Technology Limited,

and Themis Risk Limited together with those of the parent company, to secure each company's bank liabilities.

12.	ULTIMATE CONTROLLING PARTY

The company is controlled by the directors by virtue of their interest in the issued share capital of the parent

company.