Company Registration No. 10250719 (England and Wales)
RICHMOND GUEST HOUSE LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
PAGES FOR FILING WITH REGISTRAR
RICHMOND GUEST HOUSE LIMITED
COMPANY INFORMATION
Directors
Mrs G Kaur
Mr S Singh
Mr I Singh
Company number
10250719
Registered office
3 Ombersley Street West
Droitwich
Worcestershire
WR9 8HZ
Accountants
Ormerod Rutter Limited
The Oakley
Kidderminster Road
Droitwich
Worcestershire
WR9 9AY
Bankers
Lloyds TSB Plc
138 New Road
Rubery
Birmingham
B45 9JA
RICHMOND GUEST HOUSE LIMITED
CONTENTS
Page
Accountants' report
1
Balance sheet
2 - 3
Notes to the financial statements
4 - 7
RICHMOND GUEST HOUSE LIMITED
ACCOUNTANTS' REPORT TO THE BOARD OF DIRECTORS ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF RICHMOND GUEST HOUSE LIMITED FOR THE YEAR ENDED 30 JUNE 2020
- 1 -
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Richmond Guest House Limited for the year ended 30 June 2020 which comprise, the balance sheet and the related notes from the company’s accounting records and from information and explanations you have given us.
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 at http://www.icaew.com/en/members/regulations-standards-and-guidance
.
This report is made solely to the Board of Directors of Richmond Guest House 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 Richmond Guest House Limited
and state those matters that we have agreed to state to the Board of Directors of Richmond Guest House Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Richmond Guest House Limited and its Board of Directors as a body, for
our work or for this report.
It is your duty to ensure that Richmond Guest House 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 Richmond Guest House Limited. You consider that Richmond Guest House Limited is exempt from the statutory audit
requirement for the year.
We have not been instructed to carry out an audit or a review of the financial statements of Richmond Guest House 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.
Ormerod Rutter Limited
18 November 2020
Chartered Accountants
The Oakley
Kidderminster Road
Droitwich
Worcestershire
WR9 9AY
RICHMOND GUEST HOUSE LIMITED
BALANCE SHEET
AS AT 30 JUNE 2020
30 June 2020
- 2 -
2020
2019
Notes
£
£
£
£
Fixed assets
Goodwill
3
46,800
54,600
Tangible assets
4
419,039
420,281
465,839
474,881
Current assets
Debtors
5
-
9,958
Cash at bank and in hand
63,716
8,576
63,716
18,534
Creditors: amounts falling due within one year
6
(420,994)
(464,584)
Net current liabilities
(357,278)
(446,050)
Total assets less current liabilities
108,561
28,831
Creditors: amounts falling due after more than one year
7
(50,000)
-
Provisions for liabilities
(1,350)
(1,590)
Net assets
57,211
27,241
Capital and reserves
Called up share capital
10
100
100
Profit and loss reserves
57,111
27,141
Total equity
57,211
27,241
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 30 June 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 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.
RICHMOND GUEST HOUSE LIMITED
BALANCE SHEET (CONTINUED)
AS AT 30 JUNE 2020
30 June 2020
- 3 -
The financial statements were approved by the board of directors and authorised for issue on 18 November 2020 and are signed on its behalf by:
Mr S Singh
Director
Company Registration No. 10250719
RICHMOND GUEST HOUSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
- 4 -
1
Accounting policies
Company information
Richmond Guest House Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
3 Ombersley Street West, Droitwich, Worcestershire, WR9 8HZ.
1.1
Accounting convention
These financial statements have been prepared in accordance with 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 disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments 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
services provided in the normal course of business
, and
is shown net of VAT
.
Revenue from the provision of services is recognised by reference to the stage of completion, when the costs incurred and costs to complete can be estimated reliably.
1.3
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated
amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is ten years.
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:
Freehold property
Nil
Plant and machinery
20% on reducing balance
Fixtures and fittings
20% on reducing balance
Computer equipment
33% on cost
No depreciation is provided on freehold property. This treatment may be a departure from the requirements of Companies Act 2006 concerning depreciation of fixed assets, however, the company follows a program of regular refurbishment and maintenance of its properties, which includes the reinstatement of the fabric of the buildings where necessary in order to maintain them to a high standard. Accordingly, in the opinion of the directors, any element of depreciation would be immaterial and no provision has been made, as the residual value would be in excess of cost.
1.5
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
RICHMOND GUEST HOUSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2020
1
Accounting policies
(Continued)
- 5 -
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.
1.6
Employee benefits
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
1.7
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.8
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.
A grant that specifies performance conditions is recognised in income when the performance conditions are met
. Where a
grant does not specify performance conditions
it
is recognised in income when the proceeds are received or receivable
. A grant received before the recognition criteria are satisfied is recognised as a liability.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 6 (2019 - 8).
RICHMOND GUEST HOUSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2020
- 6 -
3
Intangible fixed assets
Goodwill
£
Cost
At 1 July 2019 and 30 June 2020
78,000
Amortisation and impairment
At 1 July 2019
23,400
Amortisation charged for the year
7,800
At 30 June 2020
31,200
Carrying amount
At 30 June 2020
46,800
At 30 June 2019
54,600
4
Tangible fixed assets
Freehold property
Plant and machinery
Fixtures and fittings
Computer equipment
Total
£
£
£
£
£
Cost
At 1 July 2019
411,903
1,221
12,238
2,012
427,374
Additions
-
511
-
406
917
At 30 June 2020
411,903
1,732
12,238
2,418
428,291
Depreciation and impairment
At 1 July 2019
-
390
5,533
1,169
7,092
Depreciation charged in the year
-
269
1,340
551
2,160
At 30 June 2020
-
659
6,873
1,720
9,252
Carrying amount
At 30 June 2020
411,903
1,073
5,365
698
419,039
At 30 June 2019
411,903
830
6,705
843
420,281
5
Debtors
2020
2019
Amounts falling due within one year:
£
£
Trade debtors
-
9,904
Other debtors
-
54
-
9,958
RICHMOND GUEST HOUSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2020
- 7 -
6
Creditors: amounts falling due within one year
2020
2019
£
£
Trade creditors
1,572
972
Taxation and social security
53,429
36,911
Other creditors
365,993
426,701
420,994
464,584
7
Creditors: amounts falling due after more than one year
2020
2019
£
£
Bank loans and overdrafts
50,000
-
8
Secured debts
The following secured debts are included within creditors:
2020
2019
£
£
Bank loans
50,000
-
Bank loans are secured by way of a fixed and floating charge over all assets of the company.
9
Provisions for liabilities
2020
2019
£
£
Deferred tax liabilities
1,350
1,590
10
Called up share capital
2020
2019
£
£
Ordinary share capital
Issued and fully paid
25 Ordinary A of £1 each
25
25
50 Ordinary B of £1 each
50
50
25 Ordinary C of £1 each
25
25
100
100
11
Ultimate controlling party
The ultimate controlling party is Mr S Singh.