Eurosat Distribution Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 02247629 (England and Wales)

Unaudited Financial Statements

for the Year Ended 31 March 2018

for

EUROSAT DISTRIBUTION LIMITED

Page

Company Information

1

Statement of Financial Position

2

Notes to the Financial Statements

4

Directors:

Mr Abbas Arbab-Zadeh

Mr M P Carver

Secretary:

Mr M P Carver

Registered office:

3 Phoenix Park

Apsley Way

London

NW2 7LN

Registered number:

02247629 (England and Wales)

Accountants:

Haines Watts Essex LLP

Chartered Accountants

Coopers House

65a Wingletye Lane

Hornchurch

Essex

RM11 3AT

Fixed assets

Tangible assets

5

14,612

30,244

Investments

6

10,001

10,001

24,613

40,245

Current assets

Stocks

335,640

275,837

Debtors

7

483,492

1,776,688

Cash at bank and in hand

237,979

325,609

1,057,111

2,378,134

Creditors

Amounts falling due within one year

8

502,234

350,240

Net current assets

554,877

2,027,894

Total assets less current liabilities

579,490

2,068,139

Provisions for liabilities

3,809

3,809

Net assets

575,681

2,064,330

Capital and reserves

Called up share capital

10

100

1,495,000

Share premium

11

-

391,677

Capital redemption reserve

11

-

31,000

Retained earnings

11

575,581

146,653

Shareholders' funds

575,681

2,064,330

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2018.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2018 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their 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 of Part 15 of the Companies Act 2006 relating to small companies.

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

The financial statements were approved by the Board of Directors on 17 September 2018 and were signed on its behalf by:

Mr Abbas Arbab-Zadeh - Director

1.	Statutory information

Eurosat Distribution 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.	Statement of compliance

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

3.	Accounting policies

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

The significant accounting policies applied in the preparation of these financial statements are set out below.

These policies have been consistently applied to all years presented unless otherwise stated.

Related party exemption

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.

Key source of estimation, uncertainty and judgement

The preparation of financial statements in conformity with generally accepted accounting practice requires

management to make estimates and judgement that affect the reported amounts of assets and liabilities as well

as the disclosure of contingent assets and liabilities at the balance sheet date and the reported amounts of

revenues and expenses during the reporting period.

There is estimation uncertainty in calculating depreciation. A full line by line review of fixed assets is carried out

by management regularly. Whilst every attempt is made to ensure that the depreciation policy is as accurate as

possible, there remains a risk that the policy does not match the useful life of the assets.

There is estimation uncertainty in calculating deferred tax. A full line by line review of deferred tax is carried out

by management regularly. Whilst every attempt is made to ensure that the deferred tax is accurate as possible,

there remains a risk that the provisions do not match the actual tax liability when asset is disposed off.

There is estimation uncertainty in calculating bad debt provisions. A full line by line review of trade debtors is

carried out at the end of each month. Whilst every attempt is made to ensure that the bad debt provisions are

as accurate as possible, there remains a risk that the provisions do not match the level of debts which

ultimately prove to be uncollectable.

Turnover

Turnover is measured at the fair value of the consideration received or receivable net of VAT and trade

discounts. The policies adopted for the recognition of turnover are as follows:

Sale of goods

Turnover from the sale of goods is recognised when significant risks and rewards of ownership of the goods

have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic

benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in

respect of the transaction can be measured reliably. This is usually on dispatch of the goods.

Tangible fixed assets

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

Improvements to property

-

25% straight line

Plant and machinery

-

15% on cost

Fixtures and fittings

-

25% straight line

Motor vehicles

-

25% straight line

Computer equipment

-

25% straight line

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and

accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of

operating as intended.

Stocks and work in progress

Stocks are stated at the lower of the cost and net realisable value. Where applicable, cost includes attributable

overheads in bringing the stock to its present condition and location.

Taxation

Current tax represents the amount of tax payable or receivable in respect of the taxable profit (or loss) for the

current or past reporting periods. It is measured at the amount expected to be paid or recovered using the tax

rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax represents the future tax consequences of transactions and events recognised in the financial

statements of current and previous periods. It is recognised in respect of all timing differences, with certain

exceptions. Timing differences are differences between taxable profits and total comprehensive income as

stated in the financial statements that arise from the inclusion of income and expense in tax assessments in

periods different from those in which they are recognised in the financial statements. 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.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the

balance sheet date that are expected to apply to the reversal of timing differences. Deferred tax on revalued

non-depreciable tangible fixed assets and investment properties is measured using the rates and allowances

that apply to the sale of the asset.

Pension costs and other post-retirement benefits

The company operate a defined contribution pension scheme. The assets of the scheme are held separately

from those of the company in an independently administered fund. The amount charged to the profit and loss

account represents the contributions payable to the scheme in respect of the accounting period.

Investments

Investments are recognised initially at fair value which is normally the transaction price excluding transaction

costs. Subsequently, they are measured at fair value through profit or loss if the shares are publicly traded or

their fair value can otherwise be measured reliably. Other investments are measured at cost less impairment.

4.	Employees and directors

The average number of employees during the year was 12 (2017 - 12 ) .

5.	Tangible fixed assets

Fixtures

Improvements

Plant and

and

to property

machinery

fittings

£

£

£

Cost

At 1 April 2017

and 31 March 2018

24,210

9,625

8,512

Depreciation

At 1 April 2017

16,612

9,625

6,690

Charge for year

6,052

-

699

At 31 March 2018

22,664

9,625

7,389

Net book value

At 31 March 2018

1,546

-

1,123

At 31 March 2017

7,598

-

1,822

Motor

Computer

vehicles

equipment

Totals

£

£

£

Cost

At 1 April 2017

and 31 March 2018

29,342

10,612

82,301

Depreciation

At 1 April 2017

13,150

5,980

52,057

Charge for year

7,335

1,546

15,632

At 31 March 2018

20,485

7,526

67,689

Net book value

At 31 March 2018

8,857

3,086

14,612

At 31 March 2017

16,192

4,632

30,244

6.	Fixed asset investments

Shares in

group

Unlisted

undertakings

investments

Totals

£

£

£

Cost

At 1 April 2017

and 31 March 2018

1

10,000

10,001

Net book value

At 31 March 2018

1

10,000

10,001

At 31 March 2017

1

10,000

10,001

The company's investments at the Statement of Financial Position date in the share capital of companies

include the following:

BeyonDSL.net Limited

Registered office:

Nature of business: Reseller of broadband internet

%

Class of shares:

holding

Ordinary

63.30

6/3/18

31/3/17

£

£

Aggregate capital and reserves

337,866

(307,846

)

Profit/(loss) for the period/year

645,712

(86,707

)

BeyonDSL.net Limited is currently in the process of being liquidated.

The above are companies in which the company's interest at the year end is more than 20%.

7.

Debtors: amounts falling due within one year

2018

2017

£

£

Trade debtors

383,137

286,397

Amounts owed by group undertakings

80,000

1,451,573

Other debtors

20,355

38,718

483,492

1,776,688

8.

Creditors: amounts falling due within one year

2018

2017

£

£

Trade creditors

455,187

274,724

Taxation and social security

23,282

52,474

Other creditors

23,765

23,042

502,234

350,240

9.	Secured debts

A bond and fixed charge has been granted to HSBC over the property and assets of the company. A floating

charge is also in existence over all assets.

10.	Called up share capital

Allotted, issued and fully paid:

Number:

Class:

Nominal

2018

2017

value:

£

£

100

Ordinary

£1

100

1,495,000

During the year there was a share reduction of £1,494,900 on 20 October 2017.

11.

Reserves

Capital

Retained

Share

redemption

earnings

premium

reserve

Totals

£

£

£

£

At 1 April 2017

146,653

391,677

31,000

569,330

Profit for the year

11,351

11,351

Dividends

(1,500,000

)

(1,500,000

)

Share cancellation

1,494,900

-

-

1,494,900

Share premium account

391,677

(391,677

)

-

-

Capital redemption reserve

31,000

-

(31,000

)

-

At 31 March 2018

575,581

-

-

575,581

12.	Contingent liabilities

A cross guarantee exists between the company and all other Eurosat group companies. The liability at 31

March 2018 is £nil (2017 :£nil). In respect of this contingent liability the company has granted a floating charge

to HSBC Bank plc for sums due or becoming due.

13.	Ultimate controlling party

The ultimate controlling party is Mr Abbas Arbab-Zadeh.

14.	Ultimate parent company

Eurosat Holdings Limited (incorporated in United Kingdom) is regarded by the directors as being the company's

ultimate parent company.

Eurosat Holdings Limited is the parent of the smallest and largest group into which the results and financial

position of this company are consolidated. Copies of the financial statements of Eurosat Holdings Limited are

available to the public and may be obtained from Companies House, Crown Way, Maindy, Cardiff, CF14 3UZ.