REGISTERED NUMBER: 03910684 (England and Wales)

Report of the Directors and

Unaudited Financial Statements for the Year Ended 31 January 2017

for

G K TELECOM (UK) LIMITED

Page

Company Information

1

Report of the Directors

2

Income Statement

3

Balance Sheet

4

Notes to the Financial Statements

6

DIRECTORS:

G S Dulku

A S Patel

SECRETARY:

Mrs K Dulku

REGISTERED OFFICE:

Alpha House

646c Kingsbury Road

Kingsbury

London

NW9 9HN

REGISTERED NUMBER:

03910684 (England and Wales)

ACCOUNTANTS:

Frasers Young Limited

Chartered Certified Accountants

Alpha House

646c Kingsbury Road

Kingsbury

London

NW9 9HN

The directors present their report with the financial statements of the company for the year ended 31 January 2017.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 February 2016 to the date of this

report.

G S Dulku

A S Patel

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small

companies.

ON BEHALF OF THE BOARD:

A S Patel - Director

31 October 2017

TURNOVER

8,985,009

9,088,641

Cost of sales

(6,262,766

)

(6,296,774

)

GROSS PROFIT

2,722,243

2,791,867

Administrative expenses

(1,854,658

)

(1,898,863

)

867,585

893,004

Other operating income

3,000

2,000

OPERATING PROFIT

4

870,585

895,004

Interest receivable and similar income

100

96

PROFIT BEFORE TAXATION

870,685

895,100

Tax on profit

(182,781

)

(180,334

)

PROFIT FOR THE FINANCIAL YEAR

687,904

714,766

FIXED ASSETS

Tangible assets

7

33,794

41,774

55,485

Investments

8

2,279,069

1,620,069

972,074

Investment property

9

425,000

425,000

336,229

2,737,863

2,086,843

1,363,788

CURRENT ASSETS

Stocks

62,363

49,561

195,762

Debtors

10

2,015,638

2,097,342

3,772,782

Cash at bank and in hand

306,719

549,775

617,431

2,384,720

2,696,678

4,585,975

CREDITORS

Amounts falling due within one year

11

(3,053,276

)

(3,001,176

)

(3,289,120

)

NET CURRENT (LIABILITIES)/ASSETS

(668,556

)

(304,498

)

1,296,855

TOTAL ASSETS LESS CURRENT LIABILITIES

2,069,307

1,782,345

2,660,643

PROVISIONS FOR LIABILITIES

(21,537

)

(22,479

)

(6,086

)

NET ASSETS

2,047,770

1,759,866

2,654,557

CAPITAL AND RESERVES

Called up share capital

200

200

200

Retained earnings

2,047,570

1,759,666

2,654,357

SHAREHOLDERS' FUNDS

2,047,770

1,759,866

2,654,557

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 January 2017.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 January 2017 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 in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

The financial statements were approved by the Board of Directors on 31 October 2017 and were signed on its behalf by:

A S Patel - Director

1.	STATUTORY INFORMATION

G K TELECOM (UK) 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.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Turnover

Turnover represents net invoiced sale of goods, excluding value added tax. Turnover also includes commission

receivable from the sale of goods.

Tangible fixed assets

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

Fixtures and fittings

-

15% on reducing balance

Motor vehicles

-

25 % on reducing balance

Computer equipment

-

25 % on reducing balance

Investments in associates

Investments in associate undertakings are recognised at cost.

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in

fair value is recognised in profit or loss.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow

moving items.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to

the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or

substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance

sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from

those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that

have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the

timing difference.

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.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension

scheme are charged to profit or loss in the period to which they relate.

Employee benefit trust

The company established a discretionary trust for the benefit of the families of all of its officers and employees

(the Employee Benefit Trust or EBT). In accordance with UITF abstract 32 "Employee Benefit Trusts and other

intermediate payment arrangements" the company includes the assets and liabilities of its EBT on its balance

sheet to the extent that it considers that it will retain any economic benefit from the assets of the EBT or will

have control of the rights or other access to those present economic benefits.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was XXX.

**PLEASE COMPLETE CLIENT SCREEN WITH DETAILS

4.	OPERATING PROFIT

The operating profit is stated after charging:

31.1.17

31.1.16

as restated

£

£

Depreciation - owned assets

9,646

12,411

5.	EXCEPTIONAL ITEMS

31.1.17

31.1.16

as restated

£

£

Revaluation of Investment prop

-

88,771

6.	PRIOR YEAR ADJUSTMENT

Prior year adjustment refers to the contribution, and resulting taxing payable, to Employee Benefit Trust, a

discretionary trust which was established for the benefit of the families of all of the company's officers and

employees.

7.	TANGIBLE FIXED ASSETS

Fixtures

and

Motor

Computer

fittings

vehicles

equipment

Totals

£

£

£

£

COST

At 1 February 2016

55,719

49,129

84,999

189,847

Additions

-

-

1,666

1,666

At 31 January 2017

55,719

49,129

86,665

191,513

DEPRECIATION

At 1 February 2016

43,307

39,218

65,548

148,073

Charge for year

1,867

2,485

5,294

9,646

At 31 January 2017

45,174

41,703

70,842

157,719

NET BOOK VALUE

At 31 January 2017

10,545

7,426

15,823

33,794

At 31 January 2016

12,412

9,911

19,451

41,774

8.	FIXED ASSET INVESTMENTS

31.1.17

31.1.16

as restated

£

£

Participating interests

49,900

49,900

Loans to undertakings in which the company has a participating interest

2,229,169

1,570,169

2,279,069

1,620,069

Additional information is as follows:

Participating

interest

£

COST

At 1 February 2016

and 31 January 2017

49,900

NET BOOK VALUE

At 31 January 2017

49,900

At 31 January 2016

49,900

Loans to

other

participating

interests

£

At 1 February 2016

1,570,169

New in year

659,000

At 31 January 2017

2,229,169

The company's investments at the balance sheet date in the share capital of companies include the following:

Participating Interest company

WRAPCHIC LIMITED

Nature of business: Restaurant & franchise business

Class of shares: % holding

Ordinary £1 Shares 49.90

The reserve as at 31 May 2016 were £(832,932)

9.	INVESTMENT PROPERTY

Total

£

FAIR VALUE

At 1 February 2016

and 31 January 2017

425,000

NET BOOK VALUE

At 31 January 2017

425,000

At 31 January 2016

425,000

Cost or valuation at 31 January 2017 is represented by:

£

Valuation in 2016

88,771

Cost

336,229

425,000

The property has been shown at at fair value as assessed by the directors based on market conditions.

10.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.1.17

31.1.16

as restated

£

£

Trade debtors

235,910

330,342

Other debtors

1,779,728

1,767,000

2,015,638

2,097,342

11.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.1.17

31.1.16

as restated

£

£

Trade creditors

2,559,166

2,489,893

Taxation and social security

481,784

479,616

Other creditors

12,326

31,667

3,053,276

3,001,176

12.	RELATED PARTY DISCLOSURES

During the year, total dividends of £200,000 were paid to the directors .

During the year, the company paid rent of £80,000 (2016:£80,000) to a partnership entity, in which the directors

are also the partners.

Other debtors includes £1,735,000 (2016: £1,755,000) due from Dulpat Investments Limited in which the

directors have a material interest. The amount due from Dulpat Investments Limited is an interest free loan

payable on demand.

During the year, total dividends of £200,000, (2016: 261,156) were paid to the directors.

The company has let its investment property to Wrapchic Limited, a company in which it has a significant

shareholding (see note 7). The property has been provided rent free.