361989902014-09-182015-12-31361989902015-12-31361989902014-09-182015-12-310361989902014-09-182015-12-311361989902014-09-182015-12-312361989902014-09-182015-12-313361989902014-09-182015-12-314361989902014-09-182015-12-31fsa:RetainedEarningsMemberiso4217:DKKsharespure2016-05-31Michael Joseph PaidakovichGlostrup2016-05-21RevisionspåtegningFrederiksberg2016-05-21Regnskabsklasse BfalsefalseÅrsrapport36198990Kastel Denmark ApSSydvestvej 102, st. th2600Glostrup2014-09-182015-12-31TimeVision Frederiksberg,Godkendt RevisionsaktieselskabFalkoner Allé 1, 3.2000 FrederiksbergToday the Executive Board has discussed and approved the Annual Report of Kastel Denmark ApS for the period 18. september 2014 - 31. december 2015.The Annual Report has been prepared in conformity with the Financial Statements Act.In my opinion, the financial statements give a true and fair view of the Company's assets, equity, liabilities and financial position at 31. december 2015 and of its financial performance for the period 18. september 2014 - 31. december 2015. In my opinion the Management commentary includes a fair review of the matters described.We recommend that the Annual Report be approved by the Annual General Meeting.Audit of financial statementsThe Company meets the requirements of section 135 of the Financial Statements Act and may therefore present unaudited financial statements. Management proposes to the General Meeting a resolution that the financial statements of the Company not be audited in future.Chairman's notesThe General Meeting has today discussed and adopted Management's proposal not to audit financial statements. To the shareholders of Kastel Denmark ApSWe have audited the financial statements of Kastel Denmark ApS for the period 18. september 2014 - 31. december 2015 , including accounting policies, income statement, balance sheet, statement of changes in equity and notes. The financial statements have been prepared in conformity with the Danish Financial Statements Act.Management's responsibility for the financial statements The Company's Management is responsible for the preparation and fair presentation of financial statements in conformity with the Danish Financial Statements Act. Management is also responsible for the internal control that it deems necessary for the preparation of financial statements that are free from material misstatement, whether due to fraud or error.Auditor’s responsibility Our responsibility is to express an opinion on the financial statements based on our audit. We have performed the audit in accordance with international auditing standards and additional requirements under Danish audit regulations. That requires that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance that the financial statements are free from material misstatement.An audit includes performing procedures to obtain audit evidence of the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the Company's preparation and fair presentation of financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. An audit also includes evaluating the appropriateness of the accounting policies applied and the reasonableness of the accounting estimates made by Management as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence obtained is sufficient and appropriate to provide a basis for our opinion.The audit did not result in a qualification.Conclusion In our opinion, the financial statements give a true and fair view of the Company's assets, equity, liabilities and financial position at 31. december 2015 and of its financial performance for the period 18. september 2014 - 31. december 2015 in conformity with the Danish Financial Statements Act.Emphasis of matter - Understanding of audit Our audit did no include the supplementary report on pages 6 of this Annual Report. As required by international auditing standards and additional requirements under Danish audit regulations, we have read the supplementary report to identify any material conditions in that report inconsistent with the disclosures of the audited financial statements.OwnershipPrincipal activities of the Company The main activities of the Company were agency trade in textiles, fur, footwear and leather goods.Development in the activities and the financial situation of the Company The Company's status as a going concern depends on the willingness of Kastel Denmark to continue making available the capital required. I expect this to be the case. Reference is made to note 6 of the financial statements. The Company has lost more than half of the share capital, but expects to restore its capital through earnings.Material events after the reporting date No events have occurred after the reporting date that may materially affect the financial position of the company.Expected development, including special assumptions and uncertain factors The companys revenue for the first 3 months of 2016 shows that forecasted on a year revenue will increase to an estimated TDKK 1.444.The first year have had many startup expenses that will not be repeated and management will continue to focus on this.GENERAL INFORMATIONThe financial statements of Kastel Denmark ApS for the financial year 2014/15 have been prepared in conformity with the provisions of the Financial Statements Act on class B enterprises. The current year is the first financial period of the Company, for which reason no comparative figures are disclosed in the income statement, balance sheet and notes. The accounting policies applied in the financial statements are consistent with those of the previous year. The reporting currency is Danish kroner.Recognition and measurement in general The financial statements have been prepared under the historical cost convention. Income is recognised in the income statement when earned. Value adjustments of financial assets and liabilities measured at fair value or amortised cost are also recognised in the income statement. Costs incurred to generate the earnings for the year are also recognised in the income statement, including amortisation, depreciation, impairment losses and provisions as well as reversals resulting from changed accounting estimates of amounts previously recognised in the income statement. Assets are recognised in the balance sheet when it is probable that future financial benefits will flow to the Company and it is possible to obtain a reliable measurement of the individual assets. Liabilities are recognised in the balance sheet when it is probable that future financial benefits will flow from the Company and it is possible to obtain a reliable measurement of the individual liabilities. On initial recognition, assets and liabilities are measured at cost. Subsequently, assets and liabilities are measured as described for each item. Anticipated losses and risks arising before the presentation of the financial statements and confirming or disconfirming facts and circumstances known at the reporting date are taken into consideration at recognition and measurement.The functional currency used is Danish kroner. All other currencies are considered foreign currencies. Foreign currency translation Foreign currency transactions are translated at the exchange rates ruling at the transaction dates. Gains and losses arising from movements between the exchange rates at the date of the individual transaction and the date of payment are recognised in the income statement as financial income or financial expenses. Receivables, accounts payable and other monetary items denominated in a foreign currency, but not settled at the reporting date, are translated at the exchange rates ruling at the reporting date.Exchange rate differences between the exchange rates at the reporting date and the date of the individual transaction are recognised in the income statement as financial income or financial expenses.Leases Lease payments under operating leases are recognised in the income statement on a straight-line basis over the lease term. The remaining liability is stated under contingent liabilities.Changes in the fair value of financial instruments which are classified as and meet the criteria for recognition as a fair value hedge of a recognised asset or liability are recognised in the income statement together with changes in the fair value of the asset or liability attributable to the risk being hedged.INCOME STATEMENT General informationCertain income and expenses have been aggregated in the item designated 'Gross profit' with reference to section 32 of the Financial Statements Act.Gross profitGross profit is a combination of the items of 'Revenue', 'Change in inventories of finished goods, work in progress and goods for resale', 'Other operating income', 'Cost of raw materials and consumables' and 'Other external costs'.Revenue Revenue from the sale of goods for resale and finished goods is recognised in the income statement if the goods have been delivered and the risk has passed to the buyer before year-end. Revenue is recognised exclusive of VAT and net of sales discounts. Change in inventories of finished goods and work in progressThe change in inventories of finished goods and work in progress is changes in inventories.Distribution costsDistribution costs include costs relating to distribution and sales, advertising and marketing costs, vehicle operating costs, etc.Administrative expenses Administrative expenses include expenses for Management and administrative staff, office expenses, amortisation and depreciation, etc.Cost of raw materials and consumablesCost of raw materials and consumables includes the cost of goods purchased less discounts and changes in inventories for the year.Other external expensesOther external expenses include costs for sales, advertising, administration, premises, bad debts, rental expenses under operating leases, etc.Staff costs Staff costs include wages, salaries and other pay-related costs, such as sickness benefits for enterprise employees less wage/salary reimbursement from the Government.Financial income and expensesFinancial income and expenses are recognised in the income statement based on the amounts which relate to the financial year. Financial income and expenses include interest revenue and expenses, accounts payable and transactions in foreign currencies, and surcharges and allowances under the tax prepayment scheme.Tax on net profit for the yearTax for the year comprises current tax and changes in deferred tax. The share attributable to the profit or loss for the year is recognised in the income statement, and the share attributable directly to equity is recognised directly in equity. The Company is the administration company of the joint taxation scheme. All Danish taxes on the taxable income are paid by the Company.BALANCE SHEETIntangible assets Patents and licences Patents and licences are measured at the lower of cost less accumulated amortisation and the recoverable amount. Patents are amortised over the remaining patent period, and licences are amortised over the contract period, but never more than 10 years. Gains or losses arising from the sale of patents and licences are determined as the difference between the selling prices less selling costs and the carrying amounts at the time of sale. Gains or losses are recognised in the income statement as other operating income or other operating expense.Property, plant and equipment Property, plant and equipment are measured at cost less accumulated depreciation and impairment losses. The depreciable amount is cost less estimated residual value at the end of the useful life of the relevant asset.Cost includes the purchase price and expenses directly related to the acquisition until the time when the asset is ready for use. The cost of assets produced in-house includes costs for materials, components, subcontractors, direct payroll costs and indirect production costs. Depreciation is computed using the straight-line method over the following estimated useful lives of the individual assets and their residual values: The depreciable amount is cost less estimated residual value at the end of the useful life of the relevant asset.Cost includes the purchase price and expenses directly related to the acquisition until the time when the asset is ready for use. The cost of assets produced in-house includes costs for materials, components, subcontractors, direct payroll costs and indirect production costs. Depreciation is computed using the straight-line method over the following estimated useful lives of the individual assets and their residual values: User timeResidual valueTools and equipment3 years0 % Gains or losses arising from the disposal of property, plant and equipment are determined as the difference between the selling price less selling costs and the carrying amounts at the time of sale. Gains or losses are recognised in the income statement as other operating income or other operating expense.Investments Deposits Deposits are measured at cost.Inventories Inventories are measured at cost using weighted average prices. Where the net realisable value is lower than cost, the inventories are written down to this lower value. The net realisable value of inventories is calculated as the selling price less costs of completion and costs incurred to perform sales. The value is determined taking into consideration marketability, obsolescence and development in expected selling price.ReceivablesReceivables are measured at amortised cost, which normally corresponds to the nominal value. The value is reduced by an allowance for expected impairment losses. Impairment of accounts receivable past due is established on individual assessment of receivables.PrepaymentsPrepayments recognised under assets include costs already defrayed but relating to the subsequent financial year.Corporate income tax and deferred taxCurrent tax liabilities and current tax receivables are recognised in the balance sheet as tax calculated on the taxable income for the year adjusted for tax on the taxable income for previous years and for prepaid taxes.Deferred tax is measured using the balance-sheet liability method on any temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. In cases where the tax base can be determined under alternative taxation rules, such as in relation to shares, deferred tax is measured on the basis of the intended use of the relevant asset or settlement of the liability.Deferred tax assets, including the tax base of tax losses allowed for carryforward, are measured at their anticipated realisable values, either by elimination in tax on future earnings or by being offset against deferred tax liabilities within the same legal tax entity. Any deferred net tax assets are measured at their net realisable values. Deferred tax is measured based on the tax rules and tax rates applicable when the deferred tax is expected to crystallise as current tax according to the legislation in force at the reporting date. Any change in deferred tax as a result of changes in the tax rates is recognised in the income statement. The corporate income tax rate decreased gradually from 25% to 22% in the financial years 2014 to 2016. Deferred tax is measured based on the tax rules and tax rates applicable when the deferred tax is expected to crystallise as current tax according to the legislation in force at the reporting date. The effect of the change in the accounting estimates are recognized with 0 kr.Payables Other payables, comprising trade payables and amounts owed to Group enterprises and associates and other accounts payable, are measured at amortised cost, which normally corresponds to the nominal value.Cash and cash equivalents Cash and cash equivalents comprise the items of 'Cash' and 'Securities' recognised under current assets. 'Securities' are short-term securities that are readily convertible into known amounts of cash and subject to an insignificant risk of changes in value.8861651096082292403-15158467771282857200000-2495831179838431114082-264654668-26466141 Staff costs Wages and salaries 766.590 Other social security costs 10.538 Staff costs total 777.128 2 Finished goods and goods for resale Manufactured goods and goods for resale from group enterprises 2.004.016 Write-down on inventory -200.000 Finished goods and goods for resale total 1.804.016 3 Trade receivables Trade receivables 211.360 Provisions for expected losses -60.000 Trade receivables total 151.360 4 Equity Contributed capital 50.000 0 50.000 Share premium 450.000 0 450.000 Retained earnings 0 -2.646.614 -2.646.614 500.000 -2.646.614 -2.146.614 5 Long-term payables Amounts owed to group enterprises 4.211.789 0 4.211.789 0 6 Letter of subordination The company have received written confirmation from Kastel Denmark (US) that they will continue to fund operations in Kastel Denmark ApS until the annual report for 2016 is made public. 7 Contingencies, etc. The Company has a tax deductable carried forward loss of TDKK 2.560 not recognized in the Company balance. The Company has a lease on a car. The leaseagreement runs until December 2017 and holds a commitment of TDKK 56. The Company has a rent commitment until the 31st of May 2016 which will not be renewed. 392493924914166141668812588125141540180401618040161513607993553522284817632422152075229361550000450000-2646614-214661468684211789421178912309810527422837244401612293615Henning Jensen31943582TimeVision Frederiksberg, Godkendt RevisionsaktieselskabRegistreret RevisorMichael Joseph Paidakovich-2646614