KM IT SOLUTIONS LIMITED Company Accounts

KM IT SOLUTIONS LIMITED - Company Information

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COMPANY REGISTRATION NUMBER: 07229552

KM IT SOLUTIONS LIMITED

Filleted Unaudited Financial Statements

30 June 2017

KM IT SOLUTIONS LIMITED

Financial Statements

Year ended 30 June 2017

Contents	Page

Statement of financial position	1

Notes to the financial statements	3

The following pages do not form part of the financial statements

Report to the board of directors on the preparation of the unaudited statutory financial statements	9

KM IT SOLUTIONS LIMITED

Statement of Financial Position

30 June 2017

	2017		2016
Note	£	£	£

Fixed assets

Tangible assets	5		930	771

Current assets

Debtors	6	33,827	27,187
Cash at bank and in hand		242,417	210,627
		---------	---------
		276,244	237,814

Creditors: amounts falling due within one year	7	121,280		96,213
		---------		---------
Net current assets			154,964	141,601
			---------	---------
Total assets less current liabilities			155,894	142,372

Provisions

Taxation including deferred tax	186	154
	---------	---------
Net assets	155,708	142,218
	---------	---------

KM IT SOLUTIONS LIMITED

Statement of Financial Position (continued)

30 June 2017

	2017		2016
Note	£	£	£

Capital and reserves

Called up share capital	200	200
Profit and loss account	155,508	142,018
	---------	---------
Shareholder funds	155,708	142,218
	---------	---------

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In accordance with section 444 of the Companies Act 2006, the statement of income and retained earnings has not been delivered.

For the year ending 30 June 2017 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

- The member has not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476 ;

- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements .

These financial statements were approved by the board of directors and authorised for issue on 6 February 2018 , and are signed on behalf of the board by:

Mr K Mistry

Director

Company registration number: 07229552

KM IT SOLUTIONS LIMITED

Notes to the Financial Statements

Year ended 30 June 2017

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is MMA Partnership LLP, 6 Bruce Grove, London, N17 6RA, United Kingdom.

2. Statement of compliance

These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Transition to FRS 102

The entity transitioned from previous UK GAAP to FRS 102 as at 1 July 2015. Details of how FRS 102 has affected the reported financial position and financial performance is given in note 10.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. There are no key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities. The only accounting estimate made by management is the estimated useful life of the tangible fixed assets.

Revenue recognition

The turnover shown in the profit and loss account represents amounts invoiced during the year, exclusive of Value Added Tax. Sales of services are recognised whent the risks and rewards of ownership are transferred to the customer, the sale price agreed and the receipt of payment can be assured.

Taxation

The charge for taxation takes into account taxation deferred as a result of timing differences between the treatment of certain items for taxation and accounting purposes. In general, deferred taxation is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. However, deferred tax assets are recognised only to the extent that the directors consider it is more likely than not that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred taxation is measured on a non-discounted basis at the average tax rates that would apply when the timimg differences are expected to reverse, based on tax rates and laws that have been enacted by the balance sheet date.

Operating leases

Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Fixtures and fittings	-	25% reducing balance
Equipment	-	25% reducing balance

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

Financial instruments

Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Defined contribution plans

The company operates a defined contribution scheme for its employees under Auto Enrolment Scheme. Contributions payable are charged to the profit and loss account in the year theyy are payable.

Debtors

Basic financial assets, including trade and other debtors, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment.

Cash and cash equivalents

Cash and cash equivalents are represented by cash in hand, deposits held at call with financial institutions, and other short-term 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.

Creditors

Basic financial liabilities, including trade and other creditors, loans from third parties and loans from related parties, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Such instruments are subsequently carried at amortised cost using the effective interest method, less any impairment

4. Employee numbers

The average number of persons employed by the company during the year amounted to 4 (2016: 4 ).

5. Tangible assets

	Fixtures and fittings	Equipment	Total
	£	£	£
Cost
At 1 July 2016	–	2,474	2,474
Additions	470	–	470
	----	-------	-------
At 30 June 2017	470	2,474	2,944
	----	-------	-------
Depreciation
At 1 July 2016	–	1,703	1,703
Charge for the year	118	193	311
	----	-------	-------
At 30 June 2017	118	1,896	2,014
	----	-------	-------
Carrying amount
At 30 June 2017	352	578	930
	----	-------	-------
At 30 June 2016	–	771	771
	----	-------	-------

6. Debtors

	2017	2016
	£	£
Trade debtors	24,262	20,856
Other debtors	9,565	6,331
	--------	--------
	33,827	27,187
	--------	--------

7. Creditors: amounts falling due within one year

	2017	2016
	£	£
Trade creditors	5,146	7,508
Corporation tax	20,517	24,887
Social security and other taxes	10,471	9,759
Other creditors	85,146	54,059
	---------	--------
	121,280	96,213
	---------	--------

8. Operating leases

The total future minimum lease payments under non-cancellable operating leases are as follows:

	2017	2016
	£	£
Not later than 1 year	18,788	–
Later than 1 year and not later than 5 years	12,936	–
	--------	----
	31,724	–
	--------	----

9. Related party transactions

1)The director of the company, is the son of a Member of MMA Partnership LLP with which the following transactions took place: a) During the year the company received fees of £10,582 (2016 £11,728) in respect of IT services provided to MMA Partnership LLP. b) During the year the company paid fees of £1,200 (2016 £1,200) to MMA Partnership LLP in respect of accountancy services provided. 2) During the year, the company paid dividends £70,000 (2016 £87,000) to the directors. 3) Wages £8,350 (2016 £8,473) were paid to a director.

10. Transition to FRS 102

These are the first financial statements that comply with FRS 102. The company transitioned to FRS 102 on 1 July 2015.

No transitional adjustments were required in equity or profit or loss for the year.

KM IT SOLUTIONS LIMITED

Management Information

Year ended 30 June 2017

The following pages do not form part of the financial statements.

KM IT SOLUTIONS LIMITED

Report to the Board of Directors on the Preparation of the Unaudited Statutory Financial Statements of KM IT SOLUTIONS LIMITED

Year ended 30 June 2017

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of KM IT SOLUTIONS LIMITED for the year ended 30 June 2017, which comprise the statement of financial position and the related notes from the company's accounting records and from information and explanations you have given us. As a practising member firm of the Association of Chartered Certified Accountants, we are subject to its ethical and other professional requirements which are detailed at www.accaglobal.com/en/member/professional-standards/rules-standards/acca-rulebook.html. This report is made solely to the Board of Directors of KM IT SOLUTIONS LIMITED, as a body, in accordance with the terms of our engagement letter. Our work has been undertaken solely to prepare for your approval the financial statements of KM IT SOLUTIONS LIMITED and state those matters that we have agreed to state to you, as a body, in this report in accordance with the requirements of the Association of Chartered Certified Accountants as detailed at www.accaglobal.com/content/dam/ACCA_Global/Technical/f act/technical-factsheet-163.pdf. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than KM IT SOLUTIONS LIMITED and its Board of Directors, as a body, for our work or for this report.

It is your duty to ensure that KM IT SOLUTIONS LIMITED has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of KM IT SOLUTIONS LIMITED. You consider that KM IT SOLUTIONS LIMITED is exempt from the statutory audit requirement for the year. We have not been instructed to carry out an audit or a review of the financial statements of KM IT SOLUTIONS LIMITED. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

MMA PARTNERSHIP LLP Chartered accountant

6 Bruce Grove London N17 6RA

6 February 2018