General Satellite Research & Development - Limited company accounts 16.3

REGISTERED NUMBER: 04502930 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 December 2016

for

General Satellite Research & Development

Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Income Statement

6

Other Comprehensive Income

8

Balance Sheet

9

Statement of Changes in Equity

10

Notes to the Financial Statements

11

DIRECTORS:

M C Smith

A Vasilyev

REGISTERED OFFICE:

3rd Floor Fairgate House

78 New Oxford Street

London

WC1A 1HB

REGISTERED NUMBER:

04502930 (England and Wales)

AUDITORS:

S H Landes LLP

Statutory Auditors

3rd Floor, Fairgate House

78 New Oxford Street

London

WC1A 1HB

The directors present their strategic report for the year ended 31 December 2016.

REVIEW OF BUSINESS

The company continue with software development activity during the year 2016. However, the volume of operations was reduced

and hence turnover decreased. The number of licenses decreased due to the lack of market demand and due to this the shareholders

decided to cease operation.

The company has ceased operating activity on 1 July 2017 and will be liquidated shortly.

PRINCIPAL RISKS AND UNCERTAINTIES

The main risk is the same as in a previous year which is an unstable economic situation in the world. However, the company has a

good financial position, it is not dependent on borrowing funds and always pay to its creditors in time.

However, the company decided not to develop operating activity further and close this direction of business.

ON BEHALF OF THE BOARD:

M C Smith - Director

7 August 2017

The directors present their report with the financial statements of the company for the year ended 31 December 2016.

DIVIDENDS

During the year, a final dividend of €760,000 per share was paid for the year ended 31 December 2015.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2016 to the date of this report.

M C Smith

A Vasilyev

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in

accordance with applicable law and regulations.

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

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

Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements

unless they are satisfied that they give a true and fair view of the state of affairs of the company and 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;

-	state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

-	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.

ON BEHALF OF THE BOARD:

M C Smith - Director

7 August 2017

We have audited the financial statements of General Satellite Research & Development Limited for the year ended

31 December 2016 on pages six to fifteen. The financial reporting framework that has been applied in their preparation is applicable

law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial

Reporting Standard 101 'Reduced Disclosure Framework'.

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 three, 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 Strategic Report and 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 2016 and of its 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.

Opinion on other matter prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit, the information given in the Strategic Report and the

Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial

statements, and has been prepared in accordance with applicable legal requirements. In the light of the knowledge and

understanding of the company and its environment, we have not identified any material misstatements in the Strategic Report or the

Report of the Directors.

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.

Steven Landes (Senior Statutory Auditor)

for and on behalf of S H Landes LLP

Statutory Auditors

3rd Floor, Fairgate House

78 New Oxford Street

London

WC1A 1HB

7 August 2017

TURNOVER

-

350,728

350,728

Cost of sales

-

(275,573

)

(275,573

)

GROSS PROFIT

-

75,155

75,155

Administrative expenses

-

(18,401

)

(18,401

)

OPERATING PROFIT and

PROFIT BEFORE TAXATION

4

-

56,754

56,754

Tax on profit

5

-

-

-

PROFIT FOR THE FINANCIAL YEAR

-

56,754

56,754

TURNOVER

2,547,571

-

2,547,571

Cost of sales

(1,756,357

)

-

(1,756,357

)

GROSS PROFIT

791,214

-

791,214

Administrative expenses

(24,060

)

-

(24,060

)

OPERATING PROFIT and

PROFIT BEFORE TAXATION

4

767,154

-

767,154

Tax on profit

5

-

-

-

PROFIT FOR THE FINANCIAL YEAR

767,154

-

767,154

PROFIT FOR THE YEAR

56,754

767,154

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

56,754

767,154

CURRENT ASSETS

Stocks

7

313,387

14,907

Debtors

8

75,342

42,761

Cash at bank

666,583

2,417,736

1,055,312

2,475,404

CREDITORS

Amounts falling due within one year

9

30,112

746,958

NET CURRENT ASSETS

1,025,200

1,728,446

TOTAL ASSETS LESS CURRENT LIABILITIES

1,025,200

1,728,446

CAPITAL AND RESERVES

Called up share capital

10

1

1

Translation reserve

11

422,732

422,732

Retained earnings

11

602,467

1,305,713

SHAREHOLDERS' FUNDS

1,025,200

1,728,446

The financial statements were approved by the Board of Directors on 7 August 2017 and were signed on its behalf by:

M C Smith - Director

Called up

share

Retained

Translation

Total

capital

earnings

reserve

equity

€

€

€

€

Balance at 1 January 2015

-

538,559

422,732

961,291

Changes in equity

Issue of share capital

1

-

-

1

Total comprehensive income

-

767,154

-

767,154

Balance at 31 December 2015

1

1,305,713

422,732

1,728,446

Changes in equity

Dividends

-

(760,000

)

-

(760,000

)

Total comprehensive income

-

56,754

-

56,754

Balance at 31 December 2016

1

602,467

422,732

1,025,200

1.	STATUTORY INFORMATION

General Satellite Research & Development 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.

2.	ACCOUNTING POLICIES

Basis of preparation

These financial statements have been prepared in accordance with Financial Reporting Standard 101 "Reduced Disclosure Framework" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as

permitted by FRS 101 "Reduced Disclosure Framework":

•

the requirements of paragraphs 45(b) and 46 to 52 of IFRS 2 Share-based Payment;

•

the requirements of paragraphs 62, B64(d), B64(e), B64(g), B64(h), B64(j) to B64(m), B64(n)(ii), B64(o)(ii), B64(p), B64(q)(ii), B66 and B67 of IFRS 3 Business Combinations;

•

the requirements of paragraph 33(c) of IFRS 5 Non Current Assets Held for Sale and Discontinued Operations;

•

the requirements of IFRS 7 Financial Instruments: Disclosures;

•

the requirements of paragraphs 91 to 99 of IFRS 13 Fair Value Measurement;

•

the requirement in paragraph 38 of IAS 1 Presentation of Financial Statements to present comparative information in respect of:

-

paragraph 79(a)(iv) of IAS 1;

-

paragraph 73(e) of IAS 16 Property, Plant and Equipment;

-

paragraph 118(e) of IAS 38 Intangible Assets;

-

paragraphs 76 and 79(d) of IAS 40 Investment Property; and

-

paragraph 50 of IAS 41 Agriculture;

•

the requirements of paragraphs 10(d), 10)(f), 16, 38A, 38B, 38C, 38D, 40A, 40B, 40C, 40D and 111 of IAS 1 Presentation of Financial Statements;

•

the requirements of paragraphs 134 to 136 of IAS 1 Presentation of Financial Statements;

•

the requirements of IAS 7 Statement of Cash Flows;

•

the requirements of paragraphs 30 and 31 of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors;

•

the requirements of paragraphs 17 and 18A of IAS 24 Related Party Disclosures;

•

the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into between two or more members of a group;

•

the requirements of paragraphs 134(d) to 134(f) and 135(c) to 135(e) of IAS 36 Impairments of Assets.

Stocks

Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for

obsolete and slow moving items.

Cost includes all direct expenditure and an appropriate proportion of fixed and variable overheads.

Taxation

Current taxes are based on the results shown in the financial statements and are calculated according to local tax rules, using

tax rates enacted or substantially enacted by the balance sheet date.

Research and development

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

Foreign currencies

Assets and liabilities in foreign currencies are translated into euro at the rates of exchange ruling at the balance sheet date.

Transactions in foreign currencies are translated into euro at the rate of exchange ruling at the date of transaction. Exchange

differences are taken into account in arriving at the operating result.

Fixed asset investments

The fixed asset investments are valued at lower of cost or net realisable value.

Going concern

These financial statements have been prepared under the break- up basis of accounting as the directors do not believe the

company is a going concern as the company will be liquidated shortly. Under the break up basis of accounting, assets are

stated at their net realisable value and liabilities are stated at their settlement value.

3.	EMPLOYEES AND DIRECTORS

There were no staff costs for the year ended 31 December 2016 nor for the year ended 31 December 2015.

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

31.12.16

31.12.15

Administrative

2

2

31.12.16

31.12.15

€

€

Directors' remuneration

-

-

4.	PROFIT BEFORE TAXATION

The profit before taxation is stated after charging/(crediting):

31.12.16

31.12.15

€

€

Cost of inventories recognised as expense

275,573

1,756,357

Auditors' remuneration

8,212

16,853

Auditors' remuneration for non audit work

15,984

17,772

Foreign exchange differences

(6,937

)

(75,380

)

5.

TAXATION

Analysis of tax expense

No liability to UK corporation tax arose for the year ended 31 December 2016 nor for the year ended 31 December 2015.

Factors affecting the tax expense

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained

below:

31.12.16

31.12.15

€

€

Profit before income tax

56,754

767,154

Profit multiplied by the standard rate of corporation tax in the UK of 20% (2015 - 20%)

11,351

153,431

Effects of:

Group relief

(11,351

)

(153,431

)

Tax expense

-

-

6.

DIVIDENDS

31.12.16

31.12.15

€

€

Ordinary share of €1

Final dividend for 2015

760,000

-

7.

STOCKS

31.12.16

31.12.15

€

€

Work-in-progress

300,000

-

Finished goods

13,387

14,907

313,387

14,907

8.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.16

31.12.15

€

€

Trade debtors

56,700

-

Other debtors

7,407

1,004

VAT receivable

2,285

18,689

Prepayments and accrued income

8,950

23,068

75,342

42,761

9.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.16

31.12.15

€

€

Trade creditors

3,998

651,530

Other creditors

2,056

3,081

Shareholder's loan

1,800

1,800

Accruals

22,258

61,809

Deferred income

-

28,738

30,112

746,958

10.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

31.12.16

31.12.15

value:

€

€

1

Ordinary

£1

1

1

11.

RESERVES

Retained

Translation

earnings

reserve

Totals

€

€

€

At 1 January 2016

1,305,713

422,732

1,728,445

Profit for the year

56,754

56,754

Dividends

(760,000

)

(760,000

)

At 31 December 2016

602,467

422,732

1,025,199

12.	ULTIMATE PARENT COMPANY

General Satellite Holding Company Limited (incorporated in Jersey ) is regarded by the directors as being the company's

ultimate parent company.

The company's immediate parent company is General Satellite Corporation Limited, a company registered in the UK.

Copies of the group financial statements which include this company are available from 3rd Floor, Fairgate House, 78 New

Oxford Street, London WC1A 1HB. General Satellite Corporation Limited is the only group in which the result of this

company have been consolidated.

13.	RELATED PARTY TRANSACTIONS

During the year, the company made sales to the following related parties:

2016

2015

€

€

Cifra LLC

Nil

255,523

EC Satprof

9,088

168,200

At the balance sheet date, the following amounts were receivable/(payable) from/to related parties:

2016

2015

€

€

Neotion SA

Nil

(350,000

)

During the year, the company made purchases from the following related parties:

2016

2015

€

€

Cifra LLC

46,200

68,100

EC Satprof

11,800

9,440

Neotion SA

255,000

Other creditors include an amount of €2,056 (2015: €2,056) payable to P Chumakov, a former director.

The above companies are related due to common control.

14.	ULTIMATE CONTROLLING PARTY

As at 31 December 2016 the company's ultimate controlling party is the Bitterlong Foundation, Jersey, Channel Islands.

15.	CONTINGENT LIABILITY

The company has received notification of a potential claim from a software supplier. The company strongly refutes the

claim and no provision has been made in these accounts for the claim nor any associated costs.