REGISTERED NUMBER:
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Lower Hope Fruit Limited |
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Unaudited Financial Statements |
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for the Year Ended 31 March 2021 |
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REGISTERED NUMBER:
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Lower Hope Fruit Limited |
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Unaudited Financial Statements |
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for the Year Ended 31 March 2021 |
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Lower Hope Fruit Limited (Registered number: 03383099) |
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Contents of the Financial Statements |
for the Year Ended 31 March 2021 |
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Page |
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Company Information | 1 |
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Chartered Accountants' Report | 2 |
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Balance Sheet | 3 |
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Notes to the Financial Statements | 5 |
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Lower Hope Fruit Limited |
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Company Information |
for the Year Ended 31 March 2021 |
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DIRECTORS: |
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SECRETARY: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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ACCOUNTANTS: |
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trading as The Hutchinson Partnership |
Chartered Accountants |
The Bull Pen |
Grove Farm |
Portway, Burghill |
Hereford |
HR4 8NF |
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BANKERS: |
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1 Broad Street |
Leominster |
Herefordshire |
HR6 8BU |
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SOLICITORS: |
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Broadway House |
32/35 Broad Street |
Hereford |
Herefordshire |
HR4 9AR |
Chartered Accountants' Report to the Board of Directors |
on the Unaudited Financial Statements of |
Lower Hope Fruit Limited |
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The following reproduces the text of the report prepared for the directors in respect of the company's annual unaudited financial statements. In accordance with the Companies Act 2006, the company is only required to file a Balance Sheet. Readers are cautioned that the Statement of Income and Retained Earnings and certain other primary statements and the Report of the Directors are not required to be filed with the Registrar of Companies. |
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In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Lower Hope Fruit Limited for the year ended 31 March 2021 which comprise the Statement of Income and Retained Earnings, Balance Sheet and the related notes from the company's accounting records and from information and explanations you have given us. |
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As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed within the ICAEW's regulations and guidance at http://www.icaew.com/en/membership/regulations-standards-and-guidance. |
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This report is made solely to the Board of Directors of Lower Hope Fruit Limited, as a body, in accordance with our terms of engagement. Our work has been undertaken solely to prepare for your approval the financial statements of Lower Hope Fruit Limited and state those matters that we have agreed to state to the Board of Directors of Lower Hope Fruit Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Lower Hope Fruit Limited and its Board of Directors, as a body, for our work or for this report. |
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It is your duty to ensure that Lower Hope Fruit Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Lower Hope Fruit Limited. You consider that Lower Hope Fruit Limited is exempt from the statutory audit requirement for the year. |
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We have not been instructed to carry out an audit or a review of the financial statements of Lower Hope Fruit Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements. |
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trading as The Hutchinson Partnership |
Chartered Accountants |
The Bull Pen |
Grove Farm |
Portway, Burghill |
Hereford |
HR4 8NF |
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Lower Hope Fruit Limited (Registered number: 03383099) |
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Balance Sheet |
31 March 2021 |
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2021 | 2020 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 4 |
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CURRENT ASSETS |
Stocks | 5 |
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Debtors | 6 |
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Cash at bank and in hand |
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CREDITORS |
Amounts falling due within one year | 7 |
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NET CURRENT LIABILITIES | ( |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
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CREDITORS |
Amounts falling due after more than one
year |
8 |
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NET ASSETS |
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CAPITAL AND RESERVES |
Allotted, issued and fully paid share capital |
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Retained earnings |
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( |
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SHAREHOLDERS' FUNDS |
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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. |
Lower Hope Fruit Limited (Registered number: 03383099) |
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Balance Sheet - continued |
31 March 2021 |
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In accordance with Section 444 of the Companies Act 2006, the Statement of Income and Retained Earnings has not been delivered. |
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The financial statements were approved by the Board of Directors and authorised for issue on
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Lower Hope Fruit Limited (Registered number: 03383099) |
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Notes to the Financial Statements |
for the Year Ended 31 March 2021 |
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1. | STATUTORY INFORMATION |
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Lower Hope Fruit Limited is a
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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Going concern |
The company continues to re-invest in its fruit enterprise. As a consequence of previous investments borrowings are high and cash flow has been tight. The fruit plantations have reached a point of maturity where they have the potential to produce a sufficient quantity of fruit to generate a profit, subject to the impact of weather. In the coming years, as profitability improves, the company should be able to generate funds to repay debt. The company plans to continue meeting its working capital requirements through a combination of bank loan and overdraft facilities, loans from a director and loans from other entities controlled by the directors. The overdraft facility has been agreed until March 2022. |
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The directors have considered the financial requirements of the company and consider that it will be able to operate within its agreed financial facilities for the next 12 months. The directors therefore consider it appropriate to prepare accounts on the going concern basis. |
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COVID-19 has meant extra costs have had to be incurred to satisfy social distancing and hygiene rules and to establish separate teams within the accommodation blocks to limit potential outbreaks within zones. |
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COVID-19 has not had an impact on income. |
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The directors have considered this in making their going concern assessment. |
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Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
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Tangible fixed assets |
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Land and buildings | - |
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Plant and machinery etc | - |
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Freehold land is not depreciated. |
Lower Hope Fruit Limited (Registered number: 03383099) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 March 2021 |
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2. | ACCOUNTING POLICIES - continued |
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Stocks |
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
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Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition. |
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The company has the following biological assets which are valued as follows: |
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Growing crop - valued at the cost of inputs and cultivations up to the period end. |
Apple and cherry orchards - valued at cost less accumulated depreciation. Depreciation is charged on a straight line basis over the estimated useful life of 10 years. |
Raspberry plantations - valued at cost less accumulated depreciation. Depreciation is charged on a straight line basis over the estimated useful life of 5 years. New technology means that new, potted, raspberry canes are written off in the year of purchase. |
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Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Income and Retained Earnings, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
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Current or deferred taxation assets and liabilities are not discounted. |
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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. |
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Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
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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. |
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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. |
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Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
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Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their useful lives. Those held under finance leases are depreciated over their useful lives or the lease term, whichever is the shorter. |
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The interest elements of these obligations is charged to the profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
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Rentals paid under operating leases are charged to the profit or loss on a straight line basis over the period of the lease. |
Lower Hope Fruit Limited (Registered number: 03383099) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 March 2021 |
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2. | ACCOUNTING POLICIES - continued |
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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. |
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Capital grants |
Capital grants received are capitalised and amortised to the profit and loss account over a period consistent with the depreciation policy of the fixed asset to which they relate. |
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3. | EMPLOYEES |
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The average number of employees during the year was
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4. | TANGIBLE FIXED ASSETS |
Tractors |
Freehold | Plant and | and |
property | machinery | vehicles | Totals |
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COST |
At 1 April 2020 |
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Additions |
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Disposals | ( |
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At 31 March 2021 |
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DEPRECIATION |
At 1 April 2020 |
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Charge for year |
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Eliminated on disposal | ( |
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At 31 March 2021 |
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NET BOOK VALUE |
At 31 March 2021 |
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At 31 March 2020 |
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Included in cost of land and buildings is freehold land of £ 667,831 (2020 - £ 667,831 ) which is not depreciated. |
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The net book value of tangible fixed assets includes £225,673 (2020 - £235,491) in respect of assets held under hire purchase contracts. |
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5. | STOCKS |
2021 | 2020 |
£ | £ |
Raw materials valuation |
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Growing crop valuation | 209,784 | 250,940 |
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Lower Hope Fruit Limited (Registered number: 03383099) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 March 2021 |
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6. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2021 | 2020 |
£ | £ |
Trade debtors |
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Prepayments and accrued income | 79,613 | 124,009 |
VAT |
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Deferred tax asset |
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7. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2021 | 2020 |
£ | £ |
Bank loans and overdrafts |
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Hire purchase contracts |
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Trade creditors |
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Taxation and social security |
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Other creditors |
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Other creditors includes deferred capital grants of £29,445 (2020 - £29,445). |
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8. |
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR |
2021 | 2020 |
£ | £ |
Bank loans |
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Hire purchase contracts |
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Other creditors |
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Amounts falling due in more than five years: |
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Repayable by instalments |
Bank loans more than 5 years | 60,000 | 241,131 |
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Other creditors includes deferred capital grants of £120,054 (2020 - £149,499). |
Lower Hope Fruit Limited (Registered number: 03383099) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 March 2021 |
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9. | SECURED DEBTS |
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The following secured debts are included within creditors: |
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2021 | 2020 |
£ | £ |
Bank overdrafts |
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Bank loans |
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Hire purchase contracts | 144,078 | 143,180 |
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The bank overdraft is secured by a debenture dated 28 May 1998 which has a fixed and floating charge over the undertaking and all the property and assets. |
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The HSBC loans have a variable interest rate and are secured by two charges over Sidnall farm and the associated land dated 9 October 2003 and 31 January 2017. The loans mature in 2023 and 2026. There is also a second legal mortgage in favour of HSBC over the freehold property of the estate of WSC Richards CBE KSG DL known as The Lower Hope Estate, Ullingswick, Hereford. |
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Obligations under hire purchase contracts are secured by the related assets. |
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10. | DEFERRED TAX |
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Balance at 1 April 2020 | ( |
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Credit to Statement of Income and Retained Earnings during year | ( |
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Adjustment for prior years | (314 | ) |
Balance at 31 March 2021 | ( |
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The provision for deferred tax is made up as follows: |
2021 | 2020 |
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Accelerated capital allowances | 161,739 | 183,118 |
Losses brought forward | (237,500 | ) | (219,630 | ) |
(75,761 | ) | (36,512 | ) |
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11. | RELATED PARTY DISCLOSURES |
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Included in other creditors is a loan due to an LLP under common control of £214,388 (2020 - £419,923). This is interest free and repayable on demand. The LLP also manages the arable enterprise under a management agreement. |
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A company which is controlled by one of the directors has an outstanding loan balance of £675,000 (2020 - £675,000). This loan is interest free and unsecured. The loan is repayable on demand. |