Benicraft Limited
Unaudited Financial Statements
For Filing with Registrar
For the year ended 31 July 2021
Company Registration No. 02980625 (England and Wales)
Benicraft Limited
Balance Sheet
As at 31 July 2021
Page 1
2021
2020
Notes
£
£
£
£
Fixed assets
Tangible assets
4
22,867
27,314
Investment properties
5
900,000
800,000
922,867
827,314
Current assets
Stock
6
80,201
94,276
Debtors
7
505,014
210,490
Cash at bank and in hand
198,814
533,601
784,029
838,367
Creditors: amounts falling due within one year
8
(269,609)
(269,861)
Net current assets
514,420
568,506
Total assets less current liabilities
1,437,287
1,395,820
Creditors: amounts falling due after more than one year
9
(692,295)
(783,735)
Provisions for liabilities
10
(63,075)
(44,875)
Net assets
681,917
567,210
Capital and reserves
Called up share capital
11
51,000
51,000
Revaluation reserve
314,099
233,099
Profit and loss reserves
316,818
283,111
Total equity
681,917
567,210
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 2021 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 2021
Page 2
The financial statements were approved by the board of directors and authorised for issue on 28 January 2022 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 2021
Page 3
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 August 2019
51,000
233,099
198,170
482,269
Year ended 31 July 2020:
Profit and total comprehensive income for the year
-
-
114,941
114,941
Dividends
-
-
(30,000)
(30,000)
Balance at 31 July 2020
51,000
233,099
283,111
567,210
Year ended 31 July 2021:
Profit and total comprehensive income for the year
-
-
194,707
194,707
Dividends
-
-
(80,000)
(80,000)
Transfer of the movement on deferred tax on investment property
-
(19,000)
19,000
-
Transfer of the revaluation gain
-
100,000
(100,000)
-
Balance at 31 July 2021
51,000
314,099
316,818
681,917
Benicraft Limited
Notes to the Financial Statements
For the year ended 31 July 2021
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
Going concern
The directors have assessed the impact of the worldwide COVID-19 pandemic on the company and considers any impact or delays to be short term only. As a result the directors believe that the company will be able to continue in business and meet its liabilities as they fall due for a period of at least twelve months from the date of approval of the financial statements.
true
1.3
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
.
1.4
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
.
1.5
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 2021
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.
1.6
Stocks
Stocks
are stated at the lower of cost and estimated selling price less costs to complete and sell.
1.7
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.
1.8
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.
1.9
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.
1.10
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 2021
1
Accounting policies
(Continued)
Page 6
1.11
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.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
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.
1.14
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant
effect on amounts recognised in the financial statements.
Valuation of investment property
The investment property owned by the company has been revalued as at 31 July 2021 by the directors on a fair value basis.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was 20
(2020 - 20).
Benicraft Limited
Notes to the Financial Statements (Continued)
For the year ended 31 July 2021
Page 7
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 August 2020
103,812
158,737
262,549
Additions
1,302
1,302
At 31 July 2021
103,812
160,039
263,851
Depreciation and impairment
At 1 August 2020
103,812
131,423
235,235
Depreciation charged in the year
5,749
5,749
At 31 July 2021
103,812
137,172
240,984
Carrying amount
At 31 July 2021
22,867
22,867
At 31 July 2020
27,314
27,314
5
Investment property
2021
£
Fair value
At 1 August 2020
800,000
Revaluations
100,000
At 31 July 2021
900,000
Investment property comprises 21A Barlow Way. The fair value of the investment property has been made as at 31 July 2021 by the directors on an open market basis. The historical cost of the property is £553,505 (2020: £553,505).
6
Stock
2021
2020
£
£
Stock
80,201
94,276
7
Debtors
2021
2020
Amounts falling due within one year:
£
£
Other debtors
505,014
210,490
Benicraft Limited
Notes to the Financial Statements (Continued)
For the year ended 31 July 2021
Page 8
8
Creditors: amounts falling due within one year
2021
2020
£
£
Bank loans and overdrafts
83,972
34,211
Trade creditors
145,768
192,140
Corporation tax
29,804
27,961
Other taxation and social security
499
Other creditors
9,566
15,549
269,609
269,861
9
Creditors: amounts falling due after more than one year
2021
2020
£
£
Bank loans and overdrafts
692,295
783,735
The borrowing is secured against the investment property owned by the company and by personal guarantees provided by directors of the company.
Amounts included above which fall due after five years are as follows:
Payable by instalments
-
45,834
10
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
2021
2020
Balances:
£
£
Accelerated capital allowances
4,140
4,940
Revaluations
58,935
39,935
63,075
44,875
Benicraft Limited
Notes to the Financial Statements (Continued)
For the year ended 31 July 2021
10
Deferred taxation
(Continued)
Page 9
2021
Movements in the year:
£
Liability at 1 August 2020
44,875
Charge to profit or loss
18,200
Liability at 31 July 2021
63,075
11
Called up share capital
2021
2020
£
£
Ordinary share capital
Issued and fully paid
51,000 Ordinary shares of £1 each
51,000
51,000
51,000
51,000
12
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:
2021
2020
£
£
Within one year
33,473
98,140
Between two and five years
32,333
33,473
130,473
13
Related party transactions
During the year the company paid dividends of £80,000
(2020: £30,000)
to Benicraft Trading Limited, the parent company.
At 31 July 2021, there was a balance of £200
(2020: £200)
due from Benicraft Investments Limited, a connected company.
14
Controlling party
The parent company is Benicraft Trading Limited, a company registered in England and Wales.