EXHIBIT 99(i)
Registered no. 1162324
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I.D.C. CARD LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 1996
J. B. TITCHENER & Co.
INCORPORATING
FRANCIS FRENCH & CO.
27 ELDON SQUARE,
READING, BERKSHIRE.
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I.D.C. CARD LIMITED
CONTENTS PAGE
Directors' report 1
Auditors' report 3
Profit and loss account 4
Balance sheet 5
Notes to the accounts 6
For information of the directors only:
Detailed trading and profit and loss account 11
Schedule of miscellaneous income 12
Schedule of overhead expenses 13
I.D.C. CARD LIMITED
DIRECTORS' REPORT FOR THE YEAR ENDED 31 MAY 1996
Directors' Responsibilities
Company law requires us as directors to prepare financial statements for each
financial year which 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
those financial statements, we are required to:
- select suitable accounting policies and then apply them
consistently;
- make judgements and estimates that are reasonable and prudent;
- prepare the financial statements on a going concern basis unless it
is inappropriate to presume that the company will continue in
business.
We are responsible for keeping proper accounting records which disclose with
reasonable accuracy at any time the financial position of the company and enable
us to ensure that the financial statements comply with the Companies Act 1985.
We 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.
Directors
M R L Beebee
Mrs J Beebee
Secretary
Mrs J Beebee
Registered Office
27 Eldon Square
Reading
Berkshire
RGI 4DP
Principal Activities
The principal activity of the company throughout the year was the provision of
discount facilities.
Directors
The present directors are as shown above. All served on the board throughout the
year.
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I.D.C. CARD LIMITED
DIRECTORS' REPORT FOR THE YEAR ENDED 31 MAY 1996 (CONT)
Mr M R L Beebee retires by rotation and, being eligible, offers himself for
re-election.
Directors' Interests
The interests of the directors in the shares of the company at the beginning and
end of the year, were as follows:
31 May 1996 1 June 1995
M R L Beebee
Ordinary shares
Beneficial interests 5,000 5,000
Auditors
The auditors, J B Titchener & Co, have indicated their willingness to accept
re-appointment under Section 385(2) of the Companies Act 1985.
The directors have taken advantage, in the preparation of their report, of the
special exemptions applicable to small companies.
ON BEHALF OF THE BOARD
/s/ J Beebee Date: 16-7-96
- -------------------------- --------------
MRS J BEEBEE - SECRETARY
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I.D.C. CARD LIMITED
AUDITORS' REPORT TO THE MEMBERS OF I.D.C. CARD LIMITED
We have audited the financial statements on pages 4 to 10 which have been
prepared under the historical cost convention and the accounting policies set
out on page 6.
Respective responsibilities of directors and auditors
As described on page 1, the company's directors are responsible for the
preparation of financial statements. It is our responsibility to form an
independent opinion, based on our audit, on those statements and to report our
opinion to you.
Basis of opinion
We conducted our audit in accordance with Auditing Standards issued by the
Auditing Practices Board. An audit includes examination, on a test basis, of
evidence relevant to the amounts and disclosures in the financial statements. It
also includes an assessment of the significant estimates and judgements made by
the directors in the preparation of the financial statements, and of whether the
accounting policies are appropriate to the company's circumstances, consistently
applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and
explanations which we considered necessary in order to provide us with
sufficient evidence to give reasonable assurance that the financial statements
are free from material misstatement, whether caused by fraud or other
irregularity or error. However, the evidence available to us was limited because
we did not attend the stocktake and there were no other satisfactory audit
procedures that we could adopt to confirm that stocks were properly recorded. In
forming our opinion, we have also evaluated the overall adequacy of the
presentation of information in the financial statements.
Qualified Opinion arising from limitation in audit scope
Except for any adjustments that might have been found to be necessary had we
been able to obtain sufficient evidence concerning stocks
In our opinion the financial statements give a true and fair view of the state
of the Company's affairs as at 31 May 1996 and of its loss for the year then
ended and have been properly prepared in accordance with the Companies Act 1985
as applicable to small companies.
In respect alone of the limitation on our work relating to stocks
- - we have not obtained all the information and explanations that we
considered necessary for the purpose of our audit; and
- - we were unable to determine whether proper accounting records had been
maintained.
/s/ J B TITCHENER & CO
J B TITCHENER & CO 27 ELDON SQUARE
Registered Auditors READING
BERKSHIRE
Date: 7th August 1996 RGI 4DP
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I.D.C. CARD LIMITED
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 MAY 1996
Note 1996 1995
(Pounds) (Pounds)
TURNOVER 2 327,481 614,146
Cost of sales 189,041 338,126
-------- --------
GROSS PROFIT 138,440 276,020
Net operating expenses 3 167,060 290,369
-------- --------
OPERATING LOSS 4 (28,620) (14,349)
Other interest receivable and similar
income 5 8,223 7,334
Interest payable and similar charges (362) --
-------- --------
LOSS ON ORDINARY ACTIVITIES
BEFORE TAXATION (20,759) (7,015)
Tax on loss on ordinary
activities 6 (3,568) (224)
-------- --------
RETAINED LOSS FOR THE
FINANCIAL YEAR (17,191) (6,791)
Retained profit brought forward 184,989 191,780
-------- --------
RETAINED PROFIT CARRIED
FORWARD 167,798 184,989
======== ========
The company's turnover and expenses all relate to continuing operations.
The only recognised loss for the year was the loss for the financial year of
(Pounds)(17,191) (1995 - (Pounds)(6,791)
The annexed notes form part of these financial statements.
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I.D.C. CARD LIMITED
BALANCE SHEET AT 31 MAY 1996
Note 1996 1995
(Pounds) (Pounds)
FIXED ASSETS
Tangible assets 7 24,861 41,144
CURRENT ASSETS
Stocks 8 15,518 5,000
Debtors 9 101,510 88,395
Cash at bank and in hand 127,618 337,876
-------- --------
244,646 431,271
CREDITORS
Amounts falling due within
one year 10 96,709 281,376
-------- --------
NET CURRENT ASSETS 147,937 149,895
-------- --------
TOTAL ASSETS LESS CURRENT
LIABILITIES 172,798 191,039
PROVISION FOR LIABILITIES AND
CHARGES 11 - 1,050
-------- --------
NET ASSETS 172,798 189,989
======== ========
CAPITAL AND RESERVES
Called up share capital 12 5,000 5,000
Profit and loss account 167,798 184,989
-------- --------
SHAREHOLDERS' FUNDS 13 172,798 189,989
======== ========
The directors have taken advantage of the special exemptions conferred by Part I
of Schedule 8 of the Companies Act 1985 and have done so on the grounds that, in
their opinion, the company is entitled to those exemptions as a small company.
These financial statements were approved by the board on 16/7/96
ON BEHALF OF THE BOARD -------
/s/ M R L Beebee Date: 16/O7/96
- ----------------- ---------
M R L BEEBEE - DIRECTOR
The annexed notes form part of these financial statements.
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I.D.C. CARD LIMITED
NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MAY 1996
1. ACCOUNTING POLICIES
The principal accounting policies adopted in the preparation of the
financial statements are set out below and have remained unchanged from
the previous year, and also have been consistently applied within the same
accounts.
Cash Flow Statement
The company qualifies as a small company and advantage has therefore been
taken of the exemption provided by the Financial Reporting Standard No 1
not to prepare a cash flow statement.
Basis of Preparation of Financial Statements
The financial statements have been prepared under the historical cost
convention.
The effect of events in relation to the year ended 31 May 1996 which
occurred before the date of approval of the financial statements by the
Board of Directors, have been included in the statements to the extent
required to show a true and fair view of the state of affairs at 31 May
1996 and of the results for the year ended on that date.
Depreciation
Depreciation has been computed to write off the cost of tangible fixed
assets over their expected useful lives using the following rates:
Leasehold property - Over 15 years
Plant and machinery - 20% per annum of cost
Fixtures and fittings - 10% per annum of cost
Motor vehicles - 25% per annum of cost
Stocks
Stocks have been valued at the lower of cost and net realisable value.
Deferred Taxation
Deferred taxation is provided on the liability method to take account of
certain items for accounts purposes and their treatment for tax purposes.
Tax deferred or accelerated is accounted for in respect of all material
timing differences to the extent that it is considered that a net
liability may crystallise.
Pension Costs
The company operates a pension scheme for its director, M R L Beebee. The
scheme is a defined contribution scheme, and the contributions are charged
against profits as they are paid.
2. TURNOVER
The company's turnover represents the value, excluding Value Added Tax, of
goods and services supplied to customers during the year.
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I.D.C. CARD LIMITED
NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MAY 1996 (CONT)
3. NET OPERATING EXPENSES
1996 1995
(pound) (pound)
Administrative expenses 184,759 307,741
Other operating income (17,699) (17,372)
------- -------
167,060 290,369
======= =======
4. OPERATING LOSS
Operating loss is stated after charging/(crediting):
1996 1995
(pound) (pound)
Directors' emoluments 21,702 84,510
Directors' pension contributions -- 40,160
------- -------
Total directors' emoluments 21,702 124,670
====== =======
Depreciation and amortisation of owned assets 16,283 16,283
Auditors' remuneration 1,700 1,700
====== =======
5. OTHER INTEREST RECEIVABLE AND SIMILAR INCOME
1996 1995
(pound) (pound)
Other interest and similar income 8,223 7,334
====== =======
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I.D.C. CARD LIMITED
NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MAY 1996 (CONT)
6. TAXATION ON ORDINARY ACTIVITIES
1996 1995
(pound) (pound)
Current year
Corporation tax at 25% (2,518) 1,142
Deferred tax at 25% (1,050) (1,466)
------ ------
(3,568) (324)
Prior year
Corporation tax under(over) provided -- 100
------ ------
(3,568) (224)
====== ======
7. TANGIBLE FIXED ASSETS
Leasehold Plant Fixtures
Land and and and Motor
buildings machinery fittings vehicles Total
(pound) (pound) (pound) (pound) (pound)
Cost
At 1 June 1995 24,975 996 81,790 33,259 141,020
Additions -- -- -- -- --
Revaluations -- -- -- -- --
Intra-group transfers -- -- -- -- --
Disposals -- -- -- -- --
------ ------ ------ ------ -------
At 31 May 1996 24,975 996 81,790 33,259 141,020
------ ------ ------ ------ -------
Depreciation
At 1 June 1995 14,292 996 65,568 19,020 99,876
Charge for the year 1,665 -- 8,180 6,438 16,283
Revaluations -- -- -- -- --
Intra-group transfers -- -- -- -- --
Elimination on disposals -- -- -- -- --
------ ------ ------ ------ -------
At 31 May 1996 15,957 996 73,748 25,458 116,159
------ ------ ------ ------ -------
Net book value
At 31 May 1996 9,018 -- 8,042 7,801 24,861
====== ====== ====== ====== =======
At 3l May 1995 10,683 -- 16,222 14,239 41,144
====== ====== ====== ====== =======
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I.D.C. CARD LIMITED
NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MAY 1996 (CONT)
8. STOCKS
1996 1995
(pound) (pound)
Stocks 15,518 5,000
====== =====
9. DEBTORS
1996 1995
(pound) (pound)
Trade debtors 70,248 37,189
Other debtors 31,262 51,206
------- ------
101,510 88,395
======= ======
10. CREDITORS - AMOUNTS DUE WITHIN ONE YEAR
1996 1995
(pound) (pound)
Trade creditors 63,512 167,090
Corporation tax payable - 1,142
Social security and other taxes 16,493 64,055
Other creditors 16,704 49,089
------ -------
96,709 281,376
====== =======
11. PROVISIONS FOR LIABILITIES AND CHARGES
1996
(pound)
Balance at 1 June 1995 1,050
Utilised during the year (1,050)
-------
Balance at 31 May 1996 --
=======
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I.D.C. CARD LIMITED
NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MAY 1996 (CONT)
12. SHARE CAPITAL
1996 1995
(pound) (pound)
Authorised
5,000 ordinary shares of (pound)1 each 5,000 5,000
======= =======
Allotted, called up and fully paid
5,000 ordinary shares of (pound)1 each 5,000 5,000
======= =======
13. RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
1996 1995
(pound) (pound)
Loss for the financial year (17,191) (6,791)
Opening shareholders' funds 189,989 196,780
------- -------
Closing shareholders' funds 172,798 189,989
======= =======
14. PENSION COSTS
The company operates a non-contributory pension scheme. It is a defined
contribution scheme and contributions are charged in the profit and loss
account as they accrue. The charge for the year was (pound)- (1995
(pound)40,160).
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THE FOLLOWING PAGES ARE FOR THE INFORMATION
OF THE DIRECTORS ONLY.
THEY DO NOT FORM PART OF THE STATUTORY ACCOUNTS.
I.D.C. CARD LIMITED
TRADING & PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31 MAY 1996
1996 1995
(pound) (pound)
TURNOVER 327,481 614,146
COST OF SALES
Opening stock 5,000 5,000
Countdown commission 51,875 170,440
Travelling and motor expenses 7,961 10,518
Test meals 189 156
Printing 71,144 87,638
Advertising and promotion 34,901 35,435
Overseas agents 33,489 33,939
------- -------
204,559 343,126
Closing stock (15,518) (5,000)
------- -------
189,041 338,126
------- -------
GROSS PROFIT 138,440 276,020
Other operating income 17,699 17,372
------- -------
156,139 293,392
Overhead expenses 184,759 307,741
------- -------
OPERATING LOSS (28,620) (14,349)
Other interest receivable and similar
income 8,223 7,334
------- -------
(20,397) (7,015)
Interest payable and similar charges 362 --
------- -------
LOSS ON ORDINARY ACTIVITIES
BEFORE TAXATION (20,759) (7,015)
======= =======
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I.D.C. CARD LIMITED
SCHEDULE TO THE TRADING AND PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MAY 1996
1996 1995
(pound) (pound)
OTHER OPERATING INCOME
Rent receivable 16,121 15,500
Sundry income 1,578 1,872
------ ------
17,699 17,372
====== ======
OTHER INTEREST RECEIVABLE AND SIMILAR
INCOME
Bank interest 8,223 7,304
Sundry interest -- 30
------ ------
8,223 7,334
====== ======
INTEREST PAYABLE AND SIMILAR CHARGES
Interest on overdue tax 362 --
====== ======
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I.D.C. CARD LIMITED
SCHEDULE OF OVERHEAD EXPENSES FOR THE YEAR ENDED 31 MAY 1996
1996 1995
(pound) (pound)
ADMINISTRATIVE EXPENSES
Rent and rates 20,702 21,757
Insurances 5,690 4,465
Light and heat 1,150 1,507
Directors' salaries 13,900 75,414
Pension contributions -- 40,160
Wages and salaries 71,743 74,075
Employer's NIC 9,818 15,377
Telephone 2,543 2,952
Postage and stationery 12,801 19,757
Office maintenance 3,674 4,377
Accountancy fees 1,987 1,936
Auditors' remuneration 1,700 1,700
Legal and professional fees 1,127 --
Consultancy fees 12,823 12,823
Donations 1,000 4,000
Sundry expenses 445 1,521
Depreciation charges 16,283 16,283
------- -------
177,386 298,104
------- -------
FINANCIAL EXPENSES
Bad debts -- (36)
Bank charges 7,373 9,673
------- -------
7,373 9,637
------- -------
OVERHEAD EXPENSES 184,759 307,741
======= =======
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