Kingfisher Colours Limited
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Notes to the Accounts |
for the year ended 31 December 2016
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1 |
Accounting policies |
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Basis of preparation |
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The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard) in £Sterling.
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Turnover |
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Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale and manufacturing of goods. Turnover from the sale and manufacturing of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer, which is on despatch for the former, and the completion of the agreed services for the latter.
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Tangible fixed assets |
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Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows:
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Freehold buildings |
Nil |
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Leasehold land and buildings |
over the lease term |
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Plant and machinery |
rates between 8-11 years straight line |
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Motor vehicles |
20% straight line |
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No depreciation is provided on Freehold property, as the total depreciation over the life of the asset is not material, rendering such a provision unnecessary in the directors opinion. |
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Stocks |
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Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised.
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Debtors |
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Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.
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Creditors |
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Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.
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Taxation |
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A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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 reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted. The current year tax charge shown in the year includes a prior year figure of £125,895.
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Provisions |
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Provisions (ie liabilities of uncertain timing or amount) are included in other creditors and are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably.
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Foreign currency translation |
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Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss.
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Leased assets |
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A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term.
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2 |
Audit information |
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The audit report is unqualified.
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Senior statutory auditor: |
Simon Murray
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Firm: |
Simon Murray & Co
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Date of audit report: |
2 September 2017
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3 |
Employees |
2016 |
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2015 |
Number |
Number |
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Average number of persons employed by the company |
22 |
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21 |
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4 |
Tangible fixed assets |
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Land and buildings |
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Plant and machinery etc |
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Motor vehicles |
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Total |
£ |
£ |
£ |
£ |
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Cost |
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At 1 January 2016 |
569,849 |
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463,151 |
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40,845 |
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1,073,845 |
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Additions |
- |
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270,808 |
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- |
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270,808 |
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Disposals |
- |
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- |
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(22,850) |
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(22,850) |
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At 31 December 2016 |
569,849 |
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733,959 |
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17,995 |
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1,321,803 |
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Depreciation |
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At 1 January 2016 |
11,805 |
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430,838 |
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28,109 |
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470,752 |
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Charge for the year |
- |
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31,105 |
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- |
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31,105 |
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On disposals |
- |
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- |
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(10,114) |
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(10,114) |
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At 31 December 2016 |
11,805 |
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461,943 |
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17,995 |
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491,743 |
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Net book value |
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At 31 December 2016 |
558,044 |
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272,016 |
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- |
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830,060 |
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At 31 December 2015 |
558,044 |
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32,313 |
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12,736 |
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603,093 |
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Within the cost brought forward of £569,849 for "Freehold and leasehold property" is expenditure of £11,805 on the company's leasehold premises. |
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5 |
Debtors |
2016 |
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2015 |
£ |
£ |
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Trade debtors |
590,946 |
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783,295 |
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Amounts owed by group undertakings and undertakings in which the company has a participating interest |
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2,472,144 |
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3,009,068 |
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Other debtors |
23,879 |
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88,089 |
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3,086,969 |
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3,880,452 |
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6 |
Creditors: amounts falling due within one year |
2016 |
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2015 |
£ |
£ |
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Trade creditors |
- |
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228,595 |
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Amounts owed to group undertakings and undertakings in which the company has a participating interest |
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2,175,815 |
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- |
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Corporation tax |
- |
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155,000 |
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Other taxes and social security costs |
- |
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22,851 |
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Other creditors |
324,215 |
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238,578 |
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2,500,030 |
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645,024 |
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7 |
Capital commitments |
2016 |
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2015 |
£ |
£ |
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Amounts contracted for since the year end. |
135,000 |
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- |
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8 |
Other financial commitments |
2016 |
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2015 |
£ |
£ |
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Total future minimum payments under non-cancellable operating leases |
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40,650 |
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40,650 |
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9 |
Related party transactions |
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In accordance with the provisions of Financial Reporting Standards 102 "Related Party Disclosures", the Company has not disclosed details of transactions with wholly owned group undertakings since the consolidated financial statements of DIC Corporation in which the Company is included are publicly available at the address given in note 10 below.
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10 |
Ultimate parent company and controlling party |
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The ultimate parent undertaking and the controlling undertaking of the largest group for which group financial statements are drawn up is DIC Corporation, a company incorporated in Japan. Kingfisher Colours Limited is a wholly owned subsidiary of Sun Chemical Group Cooperatief U. A., a company incorporated in the Netherlands. Dainippon Ink and Chemicals Inc. heads the largest and smallest group in which Kingfisher Colours Limited is a member for which group financial statements are prepared. The consolidated financial statements of Dainippon Inc. are available to the public and may be obtained from DIC (Japan) Inc., DIC Building, 7-20 Nihonbashi, 3-Chome, Chuo-Ku, Tokyo 103, Japan.
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11 |
Other information |
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Kingfisher Colours Limited is a private company limited by shares and incorporated in England. Its registered office is: |
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124/6 Cardiff Road |
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Richfield Avenue Trading Area |
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Reading |
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Berkshire |
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RG1 8NH |