Benicraft Limited
Unaudited Financial Statements
For Filing with Registrar
For the year ended 31 July 2019
Company Registration No. 02980625 (England and Wales)
Benicraft Limited
Balance Sheet
As at 31 July 2019
Page 1
2019
2018
Notes
£
£
£
£
Fixed assets
Tangible assets
3
32,917
41,205
Investment properties
4
800,000
750,000
832,917
791,205
Current assets
Stock
5
81,265
83,487
Debtors
6
256,556
313,878
Cash at bank and in hand
173,251
60,220
511,072
457,585
Creditors: amounts falling due within one year
7
(238,750)
(316,756)
Net current assets
272,322
140,829
Total assets less current liabilities
1,105,239
932,034
Creditors: amounts falling due after more than one year
8
(577,085)
(439,137)
Provisions for liabilities
9
(45,885)
(37,893)
Net assets
482,269
455,004
Capital and reserves
Called up share capital
10
51,000
51,000
Revaluation reserve
233,099
192,599
Profit and loss reserves
198,170
211,405
Total equity
482,269
455,004
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial year ended 31 July 2019 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
T
he directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.
T
he members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476
.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime.
Benicraft Limited
Balance Sheet (Continued)
As at 31 July 2019
Page 2
The financial statements were approved by the board of directors and authorised for issue on 26 April 2020 and are signed on its behalf by:
K.S. Gill
Director
Company Registration No. 02980625
Benicraft Limited
Statement of Changes in Equity
For the year ended 31 July 2019
Page 3
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 August 2017
51,000
-
149,766
200,766
Year ended 31 July 2018:
Profit and total comprehensive income for the year
-
-
294,238
294,238
Dividends
-
-
(40,000)
(40,000)
Transfer of the deferred tax liability movement
-
(30,435)
30,435
-
Transfer of the revaluation gain
-
223,034
(223,034)
-
Balance at 31 July 2018
51,000
192,599
211,405
455,004
Year ended 31 July 2019:
Profit and total comprehensive income for the year
-
-
72,265
72,265
Dividends
-
-
(45,000)
(45,000)
Transfer of the deferred tax liability movement
-
(9,500)
9,500
-
Transfer of the revaluation gain
-
50,000
(50,000)
-
Balance at 31 July 2019
51,000
233,099
198,170
482,269
Benicraft Limited
Notes to the Financial Statements
For the year ended 31 July 2019
Page 4
1
Accounting policies
Company information
Benicraft Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
5-6 Carlton Terrace, Green Street, Forest Gate, London, E7 8LH.
1.1
Accounting convention
These financial statements have been prepared in accordance with Section 1A of FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest pound.
The financial statements have been prepared under the historical cost convention, modified to include investment properties at fair value. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods provided in the normal course of business
, and
is shown net of VAT
.
1.3
Tangible fixed assets
Tangible fixed assets
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:
Leasehold land and buildings
Over the period of the lease
Plant and machinery
20% reducing balance
Fixtures, fittings & equipment
20% reducing balance
Motor vehicles
25% reducing balance
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 credited or charged to profit or loss
.
1.4
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure
. Subsequently it is measured
at fair value a
t
the reporting end date.
The surplus or deficit on revaluation is recognised in the profit and loss account.
The cumulative surplus on revaluation whilst recognised in profit or loss, is not distributable. The company transfers such revaluation surplus to a separate revaluation reserve within retained earnings together with the associated deferred tax annually.
Benicraft Limited
Notes to the Financial Statements (Continued)
For the year ended 31 July 2019
1
Accounting policies
(Continued)
Page 5
Although this accounting policy is in accordance with FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" ("FRS 102"), it is a departure from the general requirements of the Companies Act 2006 for all tangible fixed assets to be depreciated. In the opinion of the directors compliance with the standard is necessary for the financial statements to give a true and fair view. Depreciation or amortisation is only one of the many factors reflected in the annual valuation and the amount of this which might otherwise have been charged cannot be separately identified or quantified.
1.5
Stocks
Stocks
are stated at the lower of cost and estimated selling price less costs to complete and sell.
1.6
Cash at bank and in hand
Cash at bank and in hand
are basic financial assets
and
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.
1.7
Financial instruments
The company only has financial instruments classified as basic and measured at amortised cost. The company has no financial instruments that are classified as 'other' or financial instruments measured at fair value.
1.8
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.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account 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 liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing 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 profit and loss account, 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.
Benicraft Limited
Notes to the Financial Statements (Continued)
For the year ended 31 July 2019
1
Accounting policies
(Continued)
Page 6
1.10
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 stock or fixed 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.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
Leases
Rentals payable under operating leases,
including
any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease asset are consumed.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 22 (2018 - 24).
3
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 August 2018 and 31 July 2019
103,812
157,686
261,498
Depreciation and impairment
At 1 August 2018
103,812
116,481
220,293
Depreciation charged in the year
-
8,288
8,288
At 31 July 2019
103,812
124,769
228,581
Carrying amount
At 31 July 2019
-
32,917
32,917
At 31 July 2018
-
41,205
41,205
Benicraft Limited
Notes to the Financial Statements (Continued)
For the year ended 31 July 2019
Page 7
4
Investment property
2019
£
Fair value
At 1 August 2018
750,000
Revaluations
50,000
At 31 July 2019
800,000
Investment property comprises 21A Barlow Way. The fair value of the investment property has been made as at 31 July 2019 by the directors on an open market basis.
The historical cost of the property is £553,505 (2018: £553,505).
5
Stock
2019
2018
£
£
Stock
81,265
83,487
6
Debtors
2019
2018
Amounts falling due within one year:
£
£
Trade debtors
-
10
Other debtors
256,556
313,868
256,556
313,878
7
Creditors: amounts falling due within one year
2019
2018
£
£
Bank loans and overdrafts
24,771
50,848
Trade creditors
189,187
217,619
Corporation tax
8,976
37,140
Other taxation and social security
720
1,943
Other creditors
15,096
9,206
238,750
316,756
Benicraft Limited
Notes to the Financial Statements (Continued)
For the year ended 31 July 2019
Page 8
8
Creditors: amounts falling due after more than one year
2019
2018
£
£
Bank loans and overdrafts
577,085
439,137
The borrowing is secured against the investment property in note (6) and by personal guarantees provided by directors of the company.
9
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2019
2018
Balances:
£
£
Accelerated capital allowances
5,950
7,458
Revaluations
39,935
30,435
45,885
37,893
2019
Movements in the year:
£
Liability at 1 August 2018
37,893
Charge to profit or loss
7,992
Liability at 31 July 2019
45,885
10
Called up share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
51,000 Ordinary shares of £1 each
51,000
51,000
51,000
51,000
Benicraft Limited
Notes to the Financial Statements (Continued)
For the year ended 31 July 2019
Page 9
11
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2019
2018
£
£
Within one year
98,140
93,140
Between two and five years
129,333
214,667
227,473
307,807
12
Related party transactions
During the year the company paid dividends of £45,000
(2018: £40,000)
to Benicraft Trading Limited, the parent company.
At 31 July 2019, there was a balance of £200
(2018: £200)
due from Benicraft Investments Limited, a connected company.
13
Controlling party
The parent company is Benicraft Trading Limited, a company registered in England and Wales.