Company registration number 08598706 (England and Wales)
KINTO JOIN LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
KINTO JOIN LTD
COMPANY INFORMATION
Directors
W Thierry
R C Balshaw
M R Kainzbauer
P R Niehaus
Company number
08598706
Registered office
Great Burgh
Burgh Heath
Epsom
Surrey
KT18 5UZ
Auditor
Wilson Wright LLP
5 Fleet Place
London
EC4M 7RD
KINTO JOIN LTD
CONTENTS
Page
Directors' report
1 - 2
Independent auditor's report
3 - 5
Income statement
6
Statement of financial position
7
Statement of changes in equity
8
Notes to the financial statements
9 - 21
KINTO JOIN LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2022
- 1 -
The directors present their annual report and financial statements for the year ended 31 March 2022.
Principal activities
The principal activity of the company during the year has been to develop a portfolio of software as a service mobility solutions and
provide licenses for this software to group companies. One of the product
s
is
a
software enabling employers to promote and incentivise
verifiable sustainable commutes amongst its employees via carpooling & active travel (cycling & walking) all within
closed communities. The other product is
an
on demand shuttle management platform
.
Results
The results for the year are set out on page 6.
Directors
The directors who held office during the year were as follows:
A L Lynch
(Resigned 31 May 2022)
W Thierry
R C Balshaw
M R Kainzbauer
P R Niehaus
Financial instruments and risk management
The main financial risks inherent from the company’s operations are credit risk, cash flow risk and liquidity risk. The directors monitor the
cash flows,
banking facilities and
net debt
on a
n
ongoing
basis to ensure adequate working capital facilities are in place.
Research and development
The company undertakes research and development to
develop and
enhance their product and roll out software as
a
service to
other companies within the group
.
Future developments
The company
supported by their parent company, Toyota Financial Services (UK) PLC,
will continue to develop their product
s
and work to
provide licenses to other markets within the Toyota Group
.
Auditor
In accordance with the company's articles, a resolution proposing that Wilson Wright LLP be reappointed as auditor of the company will be put at a General Meeting.
KINTO JOIN LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 2 -
Statement of directors' responsibilities
The directors are responsible for preparing the annual report 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 UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
-
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 of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Small companies note
In accordance with the provisions of s414
B
and s415A
of the
Companies Act 2006, the
c
ompany is entitled to the small companies’ exemption in relation to the
strategic report and
directors’ report for the financial year.
On behalf of the board
P R Niehaus
Director
16 March 2023
KINTO JOIN LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF KINTO JOIN LTD
- 3 -
Opinion
We have audited the financial statements of Kinto Join Ltd
(the 'company')
for the year ended 31 March 2022 which comprise the income statement, the statement of financial position, the statement of changes in equity and
notes to the financial statements, including significant accounting policies
. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 101 Reduced Disclosure Framework (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
-
give a true and fair view of the state of the company's affairs as at 31 March 2022 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.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the
Auditor's
responsibilities for the audit of the
financial statements
section of our report. We are independent of the
company
in accordance with the ethical requirements that are relevant to our audit of the
financial statements
in the UK, including the FRC’s Ethical Standard
, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters 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 directors'
r
eport for the financial year for which the financial statements are prepared is consistent with the financial statements
; and
-
the directors' report has been prepared in accordance with applicable legal requirements.
KINTO JOIN LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF KINTO JOIN LTD
- 4 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie
d
material misstatements in the directors'
r
eport
.
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
remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors'
r
esponsibilities
s
tatement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of
financial statements
that are free from material misstatement, whether due to fraud or error. In preparing the
financial statements
, the
directors are
responsible for assessing the company
'
s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have
no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the
financial statements
as a whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor's
report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with
ISAs (UK)
will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these
financial statements
.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below
.
Capability of the audit in detecting irregularities, including fraud:
Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to the failure to comply with tax regulations, health and safety regulations and anti-bribery and anti-corruption laws, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries and management bias in accounting estimates. Audit procedures performed by the auditors included:
There are inherent limitations in the audit procedures described above, and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
KINTO JOIN LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF KINTO JOIN LTD
- 5 -
A further description of our responsibilities is available on the
Financial Reporting Council's website at: https://www.frc.org.uk/auditorsresponsibilities.
This description forms part of our
auditor's
report.
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 an auditor's report 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.
Nikki Crane FCA (Senior Statutory Auditor)
for and on behalf of Wilson Wright LLP
30 March 2023
Chartered Accountants and Statutory Auditors
5 Fleet Place
London
EC4M 7RD
KINTO JOIN LTD
INCOME STATEMENT
FOR THE YEAR ENDED 31 MARCH 2022
- 6 -
2022
2021
Notes
£
£
Revenue
3
663,151
575,055
Cost of sales
(62,316)
(100,011)
Gross profit
600,835
475,044
Administrative expenses
(2,370,548)
(1,828,869)
Other operating income
3
2,031,445
1,882,138
Profit before taxation
4
261,732
528,313
Tax on profit
7
(21,745)
98,407
Profit and total comprehensive income for the financial year
16
239,987
626,720
The income statement has been prepared on the basis that all operations are continuing operations.
The notes on pages 7 to 21 form part of these financial statements.
KINTO JOIN LTD
STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2022
31 March 2022
- 7 -
2022
2021
Notes
£
£
Non-current assets
Intangible assets
9
2,802,101
2,236,991
Property, plant and equipment
10
21,304
32,241
2,823,405
2,269,232
Current assets
Trade and other receivables
11
274,749
642,097
Current tax recoverable
274,325
181,625
Cash and cash equivalents
494,929
440,968
1,044,003
1,264,690
Current liabilities
Trade and other payables
12
549,451
440,654
Lease liabilities
13
9,759
15,034
559,210
455,688
Net current assets
484,793
809,002
Total assets less current liabilities
3,308,198
3,078,234
Non-current liabilities
Lease liabilities
13
-
10,023
Net assets
3,308,198
3,068,211
Equity
Called up share capital
15
1,046
1,046
Share premium account
3,795,315
3,795,315
Retained earnings
16
(488,163)
(728,150)
Total equity
3,308,198
3,068,211
The financial statements were approved by the board of directors and authorised for issue on 16 March 2023 and are signed on its behalf by:
P R Niehaus
Director
Company Registration No. 08598706
KINTO JOIN LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2022
- 8 -
Share capital
Share premium account
Retained earnings
Total
£
£
£
£
Balance at 1 April 2020
1,046
3,795,315
(1,354,870)
2,441,491
Year ended 31 March 2020:
Profit and total comprehensive income for the year
-
-
626,720
626,720
Balance at 31 March 2021
1,046
3,795,315
(728,150)
3,068,211
Year ended 31 March 2021:
Profit and total comprehensive income for the year
-
-
239,987
239,987
Balance at 31 March 2022
1,046
3,795,315
(488,163)
3,308,198
KINTO JOIN LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
- 9 -
1
Accounting policies
Company information
Kinto Join Ltd is a
private
company limited by shares incorporated in England and Wales. The registered office is Great Burgh, Burgh Heath, Epsom, Surrey, KT18 5UZ.
1.1
Accounting convention
The financial statements have been prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework (FRS 101) and in accordance with applicable accounting standards.
The financial statements have been prepared on the historical cost basis and t
he financial statements are prepared in sterling, which is the functional currency of the company.
The principal accounting policies adopted are set out below.
The company has taken advantage of the following disclosure exemptions under FRS 101:
-
the requirements of IFRS 7 Financial Instruments: Disclosures;
-
the requirements of paragraphs 91-99 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: (i) paragraph 79(a) (iv) of IAS 1, (ii) paragraph 73(e) of IAS 16 Property Plant and Equipment (iii) paragraph 118 (e) of IAS 38 Intangibles Assets
-
the requirements of paragraphs 10(d), 10(f), 16, 38A to 38D, 39 to 40 ,111 and 134-136 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 paragraph 17 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, provided that any subsidiary which is a party to the transaction is wholly owned by such a member ; and
-
the requirements of paragraphs 134(d)-134(f) and 135(c)-135(e) of IAS 36 Impairment of Assets.
Where required, equivalent disclosures are given in the group accounts of Toyota Financial Services (UK) PLC. The group accounts of Toyota Financial Services (UK) PLC are available to the public and can be obtained from Great Burgh, Burgh Heath, Epsom, Surrey, KT18 5UZ.
1.2
Going concern
The company's revenue is derived from the sale of annual licenses of the developed software to group companies rather than third parties, therefore guaranteeing revenue for the license period. The app is being further developed for expansion into other markets via license sales to other group companies within these markets.
true
At 31 March 2022 the company had net assets amounting to £3,308,198 (2021; £3,068,211) and a cash balance of £494,929 (2021: £440,968). Subsequent to the year-end, the company has generated other operating income of £2.3 million from Toyota Financial Services (UK) PLC and continued to generate licence revenues from other group companies.
T
he directors have at the time of approving the financial statements, a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Revenue
Revenue is recognised at the fair value of the consideration received or receivable for
s
ervices provided in the normal course of business
, and
is shown net of VAT and other sales related taxes
.
The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
The major source of revenue for the company is licenses for their car-pooling app and platform. License revenue is recognised on a straight line basis over the course of the licensing contract.
KINTO JOIN LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 10 -
1.4
Intangible assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses
.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Development Costs 20% straight line
Trademark 25 years straight line
Research and development activities
All expenditure on research is recognised as an expense when it is incurred. Expenditure relating to the development of products is capitalised if certain specific criteria are met in order to demonstrate that the asset will generate probable future economic benefits and that its cost can be reliably measured. Capitalised development costs are stated at cost less accumulated amortisation and accumulated impairment losses.
Amortisation is recognised using the straight-line basis over the useful life of the asset, which is considered to be 5 years.
1.5
Property, plant and equipment
Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Right-of-use assets
3 years straight line
Fixtures and fittings
25% reducing balance
Computer equipment
3 years straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the
income statement
.
The right-of-use asset consists of a lease of an office which is carried under the cost model. Right-of-use assets are depreciated over the shorter of the lease term and the useful life of the underlying asset. Depreciation starts at the commencement date of the lease.
1.6
Impairment of tangible and intangible assets
At each reporting end date, the
company
reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the
company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.7
Fair value measurement
IFRS 13 establishes a single source of guidance for all fair value measurements. IFRS 13 does not change when an entity is required to use fair value, but rather provides guidance on how to measure fair value under IFRS when fair value is required or permitted
. The company is exempt under FRS 101 from the disclosure requirements of IFRS 13. There was no impact on the company from the adoption of IFRS 13.
KINTO JOIN LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 11 -
1.8
Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9
Financial assets
Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.
At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.
Loans and receivables
Trade Receivables
, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as loans and receivables. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.
Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial.
The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.
Impairment of financial assets
Financial assets, other than those measured at fair value through profit or loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been affected.
1.10
Financial liabilities
The company recogni
s
es financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either
'
financial liabilities at fair value through profit or loss
'
or
'
other financial liabilities
'
.
Other financial liabilities
Other financial liabilities, including borrowings
, t
rade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs
directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method
.
For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.
1.11
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.12
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
KINTO JOIN LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 12 -
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the
income statement
because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the
income statement
, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.13
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of
inventories
or non-current assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.15
Leases
KINTO JOIN LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 13 -
At inception of a contract, the company assesses whether a contract is, or contains, a lease. It recognises a right-of-use asset and a corresponding lease liability with respect to all lease arrangements in which it is a lessee. The right-of-use assets and the lease liabilities are presented as separate line items in the statement of financial position.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the company uses its incremental borrowing rate. It is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (using the effective interest method) and by reducing the carrying amount to reflect the lease payments made.
The right-of-use asset comprises the initial measurement of the corresponding lease liability, plus lease payments made on or before the commencement day, less any lease incentives received and plus any initial direct costs. They are subsequently measured at cost less accumulated depreciation and impairment losses (cost model as described in note 1.5 above). Impairment is assessed as described in note 1.6 above.
1.16
Grants
Government grants are recognised when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.17
Foreign exchange
Transactions in currencies other than
pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Critical accounting estimates and judgements
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.
KINTO JOIN LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
2
Critical accounting estimates and judgements
(Continued)
- 14 -
Critical judgements
Capitalisation of development costs
The company must use judgement to ensure that all development costs capitalised meet the capitalisation criteria under IAS 38.
Key sources of estimation uncertainty
Impairment of intangible assets
Management must determine whether there are indicators of impairment of the company's intangible assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future performance of the asset. If indicators of impairment exist, the carrying value of the asset is subject to further testing to determine whether its carrying value exceeds its estimated recoverable amount.
Amortisation of intangible assets
Management must determine the useful life of the intangible assets in order to appropriately and accurately estimate the amortisation to be charged. The amortisation rate is determined to be 5 years based on the length of time the codes within the software run for.
3
Revenue
2022
2021
£
£
Revenue analysed by class of business
Licensing Revenue
552,713
521,235
Intercompany Recharges
110,438
53,820
663,151
575,055
2022
2021
£
£
Other significant revenue
Government grants received
30,246
Consultancy fees
1,917,000
1,643,000
RDEC Tax credit receivable
114,445
208,892
2022
2021
£
£
Revenue analysed by geographical market
Europe
647,526
553,180
Rest of World
15,625
21,875
663,151
575,055
KINTO JOIN LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 15 -
4
Operating profit
Year
Year
ended
ended
31 March
31 March
2022
2021
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses
24,322
9,987
Research and development charged as an expense
518,877
278,277
Fees payable to the company's auditor for the audit of the company's financial statements
15,000
10,000
Fees payable to the company's auditor for tax compliance services
9,950
9,950
Fees payable to the company's auditor for other services performed
4,250
3,500
Depreciation of property, plant and equipment
4,766
3,113
Depreciation of right-of-use asset
15,297
16,064
(Profit)/loss on disposal of property, plant and equipment
2,356
Amortisation of intangible assets
966,096
664,643
Rent expense relating to short term leases
-
51,365
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Directors
5
7
Sales and Marketing
3
6
Development
6
2
14
15
Their aggregate remuneration (before capitalisation) comprised:
2022
2021
£
£
Wages and salaries
658,294
897,077
Social security costs
75,340
79,037
Pension costs
9,682
7,229
743,316
963,343
KINTO JOIN LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 16 -
6
Directors' remuneration
2022
2021
£
£
Remuneration for qualifying services
156,452
241,115
156,452
241,115
Remuneration disclosed above include the following amounts paid to the highest paid director:
Remuneration for qualifying services
156,452
143,500
7
Income tax expense
2022
2021
£
£
Current tax
UK corporation tax on profits for the current period
21,745
27,551
Adjustments in respect of prior periods
1,106
Adjustment in respect to prior period research and development tax credit
-
(62,738)
Group tax relief
-
(139,203)
Total UK current tax
21,745
(98,407)
The charge for the year can be reconciled to the profit per the income statement as follows:
2022
2021
£
£
Profit before taxation
261,732
528,313
Expected tax charge based on a corporation tax rate of 19.00% (2020: 19.00%)
49,729
100,379
Effect of expenses not deductible in determining taxable profit
155,782
117,630
Unutilised tax losses carried forward
37,385
(38,410)
Capital allowances
(2,254)
(667)
Under/(over) provided in prior years
-
1,106
Revenue deduction for intangible assets
(218,897)
(278,445)
Total tax credit
21,745
(98,407)
Group tax relief relates to payments received from group companies for the surrender of losses that have arisen as a result of Research and Development tax relief claims.
KINTO JOIN LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 17 -
8
Impairments
Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:
2022
2021
£
£
In respect of:
Intangible assets
22,500
Recognised in:
Administrative expenses
-
22,500
KINTO JOIN LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 18 -
9
Intangible fixed assets
Software
Development costs
Total
£
£
£
Cost
At 31 March 2021
25,000
3,310,712
3,335,712
Additions
1,531,207
1,531,207
At 31 March 2022
25,000
4,841,918
4,866,918
Amortisation and impairment
At 31 March 2021
25,000
1,073,721
1,098,721
Charge for the year
966,096
966,096
At 31 March 2022
25,000
2,039,817
2,064,817
Carrying amount
At 31 March 2022
2,802,101
2,802,101
At 31 March 2021
2,236,991
2,236,991
10
Property, plant and equipment
Right-of-use assets
Computer equipment
Fixtures and fittings
Total
£
£
£
£
Cost
At 1 April 2021
46,219
8,612
3,353
58,184
Additions
9,126
9,126
At 31 March 2022
46,219
17,738
3,353
67,310
Accumulated depreciation and impairment
At 1 April 2021
21,162
2,997
1,784
25,943
Charge for the year
15,297
3,865
901
20,063
At 31 March 2022
36,459
6,862
2,685
46,006
Carrying amount
At 31 March 2022
9,760
10,876
668
21,304
At 31 March 2021
25,057
5,615
1,569
32,241
The right-of-use asset relates to a 3 year office lease which was entered into on 27 November 2019. The lease liabilities referred to in note 13 relate to this lease.
KINTO JOIN LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 19 -
11
Trade and other receivables
2022
2021
£
£
Trade receivables
36,563
99,524
VAT recoverable
8,761
20,370
Amount owed by parent undertaking
139,203
139,203
Prepayments and accrued income
90,222
383,000
274,749
642,097
12
Trade and other payables
2022
2021
£
£
Trade payables
263,702
297,542
Accruals and deferred income
269,765
128,901
Other payables
15,984
14,211
549,451
440,654
KINTO JOIN LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 20 -
13
Lease obligations
Lease obligations are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:
2022
2021
£
£
Current liabilities
9,759
15,034
Non-current liabilities
-
10,023
9,759
25,057
The present and fair value of the company's lease obligations is approximately equal to their carrying amount.
The lease obligations relate to capitalised lease costs in accordance with IFRS 16. Refer to note 10 for further information. No interest was charged in the current year.
14
Retirement benefit schemes
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
The total costs charged to income, after capitalisation, in respect of defined contribution plans is £4,838 (2021: £6,709).
15
Share capital
2022
2021
£
£
Ordinary share capital
Authorised, issued and fully paid
80,064 Ordinary A shares of 1p each
800
800
18,372 Ordinary B shares of 1p each
184
184
6,247 Ordinary C shares of 1p each
62
62
1,046
1,046
Ordinary A shares carry full rights in respect of voting. All shares have the right to participate in any distribution or dividends payable and rank pari passu in respect of dividends and on a winding up.
16
Retained earnings
2022
2021
£
£
At the beginning of the year
(728,150)
(1,354,870)
Profit for the year
239,987
626,720
At the end of the year
(488,163)
(728,150)
KINTO JOIN LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 21 -
17
Related party transactions
During the year the company received other income £2,083,712 (2021: £1,643,000) and revenue of £219,198 (2021: £78,820) from their parent company. The company also received revenue of £276,112 (2021: £297,312) from fellow subsidiaries of the group. Amounts owed from the parent company at the year-end included in trade and other receivables amounted to £171,034 (2021: £522,203) and amounts owed from fellow subsidiaries of the group amounted to £10,530 (2021: £76,585).
During the year the company paid their parent company £181,255 (2021: £178,752) and fellow subsidiaries of the group £211,619 (2021: £45,472) for services provided. Amounts owed to their parent company at the year-end included in trade and other payables amounted to £56,059 (2021: £52,708) and amounts owed to fellow subsidiaries of the group £176,174 (2021: £207,311).
During the year the company used the offices of the parent company free of charge, in the prior year the company incurred rental costs of £51,365 on a commercial basis.
Amounts paid to companies controlled by key management personal amounted to £1,356,814 (2021: £903,996) during the year of which £927,002 (2021: £706,522) was capitalised as development costs. Amounts owed at the year-end included in trade and other payables amounted to £153,880 (2021: £98,873).
18
Controlling party
The immediate parent undertaking is Toyota Financial Services (UK) PLC, a company incorporated in England and Wales and is the smallest group for which consolidated financial statements are prepared. Copies of the financial statements of Toyota Financial Services (UK) PLC are available from Great Burgh, Burgh Heath, Epsom, Surrey, KT18 5UZ.
The ultimate parent undertaking is Toyota Motor Corporation, a company incorporated in Japan, and is the largest group for which consolidated financial statement are prepared. Copies of the financial statements can be obtained from 1 Toyota-Cho, Toyota City, Aichi 471-8571, Japan.
2022-03-31
2021-04-01
A L Lynch
A L Lynch
R C Balshaw
W Thierry
P R Niehaus
false
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