CES TS SOFTWARE LIMITED
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Notes to the Accounts |
for the year ended 31 May 2021
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1 |
Statutory information |
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OCTEPOS LIMITED is a private company limited by shares and incorporated in England. Its registered office is: Charter House, 8-10 Station Road, London, E12 5BT. |
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2 |
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).
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Going concern |
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Though the company's operations were impacted by Covid 19, the company has been able to restore and maintain its services with limited disruption. The company is confident of overcoming the difficult times with the continued support of its customers and other stakeholders. |
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Accordingly, there is a reasonable expectation that the company has resources to continue in operational existence for the foreseeable future. The directors and parent have assured their continued support thus the going concern basis of accounting is continued to be adopted in preparing the financial statements. |
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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 of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.
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Intangible fixed assets |
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Intangible fixed assets are measured at cost less accumulative amortisation and any accumulative impairment losses.
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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 |
over 50 years |
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Leasehold land and buildings |
over the lease term |
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Plant and machinery |
25% straight line basis |
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Fixtures, fittings, tools and equipment |
25% straight line basis |
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Computer equipment |
33% straight line basis |
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Investments |
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Investments in subsidiaries, associates and joint ventures are measured at cost less any accumulated impairment losses. Listed investments are measured at fair value. Unlisted investments are measured at fair value unless the value cannot be measured reliably, in which case they are measured at cost less any accumulated impairment losses. Changes in fair value are included in the profit and loss account.
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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.
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Pensions |
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Contributions to defined contribution plans are expensed in the period to which they relate.
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Research and development |
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Expenditure on research and development is written off in the year in which it is incurred. |
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Critical accounting estimates and judgements |
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The preparation of financial statements in conformity with generally accepted accounting practice requires management to make estimates and judgment that affect the reported amounts of assets and liabilities as well as disclosure of contingent assets and liabilities at the balance sheet date and the reported amounts of revenues and expenses during the reported period. |
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3 |
Audit information |
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The audit report is unqualified.
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Senior statutory auditor: |
Harsh Kantilal Ondhia FCCA
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Firm: |
Lall Ondhia Ltd
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Date of audit report: |
18 February 2022
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4 |
Employees |
2021 |
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2020 |
Number |
Number |
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Average number of persons employed by the company |
3 |
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4 |
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5 |
Intangible fixed assets |
£ |
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Goodwill |
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Licence Fee |
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Cost |
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At 1 June 2020 |
58,429 |
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50,000 |
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At 31 May 2021 |
58,429 |
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50,000 |
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Amortisation |
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At 1 June 2020 |
58,429 |
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25,000 |
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Provided during the year |
5,000 |
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At 31 May 2021 |
58,429 |
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30,000 |
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Net book value |
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At 31 May 2021 |
- |
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20,000 |
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At 31 May 2020 |
- |
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25,000 |
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Goodwill is being written off in equal annual instalments over its estimated economic life of 10 years. |
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6 |
Tangible fixed assets |
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Plant and machinery |
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Fixtures fittings, tools and equipments |
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Computer equipment |
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Total |
£ |
£ |
£ |
£ |
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Cost |
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At 1 June 2020 |
4,339 |
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3,930 |
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15,573 |
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23,842 |
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Additions |
- |
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189 |
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2,573 |
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2,762 |
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At 31 May 2021 |
4,339 |
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4,119 |
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18,146 |
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26,604 |
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Depreciation |
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At 1 June 2020 |
4,339 |
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2,407 |
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14,967 |
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21,713 |
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Charge for the year |
- |
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605 |
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1,018 |
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1,623 |
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At 31 May 2021 |
4,339 |
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3,012 |
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15,985 |
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23,336 |
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Net book value |
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At 31 May 2021 |
- |
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1,107 |
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2,161 |
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3,268 |
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At 31 May 2020 |
- |
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1,523 |
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606 |
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2,129 |
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7 |
Debtors |
2021 |
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2020 |
£ |
£ |
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Trade debtors |
47,666 |
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55,599 |
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Other debtors |
26,681 |
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41,744 |
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74,347 |
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97,343 |
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8 |
Creditors: amounts falling due within one year |
2021 |
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2020 |
£ |
£ |
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Trade creditors |
87,586 |
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94,705 |
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Amounts owed to group undertakings and undertakings in which the company has a participating interest |
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58,821 |
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85,260 |
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Taxation and social security costs |
13,112 |
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2,618 |
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Other creditors |
3,622 |
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3,620 |
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163,141 |
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186,203 |
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9 |
Related party transactions |
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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 transaction with wholly owned subsidiaries within the group.
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10 |
Controlling party |
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The immediate and ultimate parent undertaking and controlling party is 3R Telecom Limited, which prepares group financial statements.
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