Company Registration No. 10521323 (England and Wales)
JOE'S TEA COMPANY LTD
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
PAGES FOR FILING WITH REGISTRAR
JOE'S TEA COMPANY LTD
CONTENTS
Page
Statement of financial position
1
Statement of changes in equity
2
Notes to the financial statements
3 - 9
JOE'S TEA COMPANY LTD
STATEMENT OF FINANCIAL POSITION
AS AT
31 MARCH 2021
31 March 2021
- 1 -
2021
2020
Notes
£
£
£
£
Non-current assets
Intangible assets
3
17,800
26,700
Property, plant and equipment
4
46
17,800
26,746
Current assets
Inventories
125,380
127,590
Trade and other receivables
5
46,859
66,435
Cash and cash equivalents
8,501
17,761
180,740
211,786
Current liabilities
6
(165,782)
(126,748)
Net current assets
14,958
85,038
Total assets less current liabilities
32,758
111,784
Non-current liabilities
7
(205,000)
(265,000)
Net liabilities
(172,242)
(153,216)
Equity
Called up share capital
8
1,000
1,000
Share premium account
26,749
26,749
Other reserves
9
145,174
145,174
Retained earnings
(345,165)
(326,139)
Total equity
(172,242)
(153,216)
The directors of the company have elected not to include a copy of the income statement within the financial statements.
true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 28 October 2021 and are signed on its behalf by:
S.B Herath
Director
Company Registration No. 10521323
JOE'S TEA COMPANY LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2021
- 2 -
Share capital
Share premium account
Other reserves
Retained earnings
Total
£
£
£
£
£
Balance at 1 April 2019
1,000
26,749
145,174
(303,369)
(130,446)
Year ended 31 March 2020:
Loss and total comprehensive income for the year
-
-
-
(22,770)
(22,770)
Balance at 31 March 2020
1,000
26,749
145,174
(326,139)
(153,216)
Year ended 31 March 2021:
Loss and total comprehensive income for the year
-
-
-
(19,026)
(19,026)
Balance at 31 March 2021
1,000
26,749
145,174
(345,165)
(172,242)
JOE'S TEA COMPANY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
- 3 -
1
Accounting policies
Company information
Joe's Tea Company Ltd is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Devonshire House, 1 Devonshire Street, London, W1W 5DR.
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 are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
Despite the company's excess of liabilities over assets at the balance sheet date, a
true
t the time of approving the financial statements
,
t
he directors have a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future
based upon the continued support of its parent company
.
The directors have further considered the impact of Covid-19 when making their assessment and do not believe it creates a material uncertainty with regard going concern. T
hus
t
he directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Revenue
Revenue
represents amounts receivable for goods sold net of VAT (where applicable) and trade discounts. Revenue is recognised at the point of sale when it is probable that the economic benefits associated with the transaction will flow to the company and the amount of the revenue can be reliably measured.
1.4
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 10 years.
1.5
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date
where
it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the
fair
value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation 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:
Trademarks
Estimated useful lives of 3 years
JOE'S TEA COMPANY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
1
Accounting policies
(Continued)
- 4 -
1.6
Property, plant and equipment
Property, plant and equipment
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:
Fixtures, fittings & equipment
50% straight line
1.7
Impairment of non-current assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.8
Inventories
Inventories
comprise finished goods and
are stated at the lower of cost and estimated selling price less costs
to
sell. Cost
s
comprise
finished goods and, where applicable,
those overheads that have been incurred in bringing the inventories to their present location and condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of inventories over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.9
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash in hand
and
deposits held at call with banks
.
1.10
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
JOE'S TEA COMPANY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
1
Accounting policies
(Continued)
- 5 -
Basic financial liabilities
Basic financial liabilities, including trade and other payables and loans from
fellow group companies, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade payables
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities. Trade payables are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method
.
1.11
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.12
Taxation
The tax expense represents the sum of the tax currently payable
.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 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.
1.13
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 non-current 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.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.15
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.
Government grants relating to turnover are recognised as income over the periods when the related costs are incurred
. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.
JOE'S TEA COMPANY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
1
Accounting policies
(Continued)
- 6 -
Coronavirus Job Retention Scheme
Th
e Coronavirus Job Retention Scheme (
"
CJRS
"
) results in cash payments from the government to compensate employers for part of the wages, associated national insurance contributions (NICs) and employer pension contributions of employees who have been placed on furlough (i.e. placed on a temporary leave of absence from working for the employer).
The CJRS grant is recognised under the accrual
s
model, and is recognised as income on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. As such the income from the grant is recognised on a straight line basis over the furlough period for each relevant employee.
1.16
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the
statement of comprehensive income
for the period.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Total
2
1
3
Intangible fixed assets
Goodwill
Trademarks
Total
£
£
£
Cost
At 1 April 2020 and 31 March 2021
89,000
6,106
95,106
Amortisation and impairment
At 1 April 2020
62,300
6,106
68,406
Amortisation charged for the year
8,900
8,900
At 31 March 2021
71,200
6,106
77,306
Carrying amount
At 31 March 2021
17,800
17,800
At 31 March 2020
26,700
26,700
JOE'S TEA COMPANY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
- 7 -
4
Property, plant and equipment
Fixtures, fittings & equipment
£
Cost
At 1 April 2020 and 31 March 2021
6,534
Depreciation and impairment
At 1 April 2020
6,488
Depreciation charged in the year
46
At 31 March 2021
6,534
Carrying amount
At 31 March 2021
At 31 March 2020
46
5
Trade and other receivables
2021
2020
Amounts falling due within one year:
£
£
Trade receivables
28,819
46,812
Other receivables
18,040
19,623
46,859
66,435
6
Current liabilities
2021
2020
£
£
Trade payables
11,725
25,190
Amounts owed to group undertakings
144,579
96,079
Other payables
9,478
5,479
165,782
126,748
7
Non-current liabilities
2021
2020
£
£
Amounts owed to group undertakings
205,000
265,000
JOE'S TEA COMPANY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
7
Non-current liabilities
(Continued)
- 8 -
Included within current and non-current liabilities is a loan of £205,000 (2020: £265,000) made from a group undertaking. The loan is unsecured, bears interest at 5%. The loan is due to be repaid on within 5 years of the year end.
Creditors which fall due after five years are as follows:
2021
2020
£
£
Payable by instalments
-
58,463
8
Called up share capital
2021
2020
2021
2020
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary 'A' shares of £1 each
750
750
750
750
Ordinary 'B' shares of £1 each
250
250
250
250
1,000
1,000
1,000
1,000
9
Other reserves
Other reserves represents a capital contribution from the immediate parent undertaking of £145,174. This reserve is non-distributable.
10
Audit report information
As the income statement has been omitted from the filing copy of the financial statements
,
the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006
:
The auditor's report was unqualified.
The senior statutory auditor was Kim Youle FCA.
The auditor was Citroen Wells.
11
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
JOE'S TEA COMPANY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
11
Related party transactions
(Continued)
- 9 -
Description of
Income
Payments
transaction
2021
2020
2021
2020
£
£
£
£
Entities with control over the company
Inter company purchases
193,804
250,543
Other related parties
Inter company purchases
3,982
Balances with related parties
The following amounts were outstanding at the reporting end date:
Amounts owed by
Amounts owed to
2021
2020
2021
2020
£
£
£
£
Entities with control over the company
352,257
361,348
Other related parties
1,782
12
Parent company
The parent company of Joe's Tea Company Ltd is
English Tea Shop (UK) Ltd
, which shares the same registered office as the company.
2021-03-31
2020-04-01
false
CCH Software
CCH Accounts Production 2021.200
The principal activity of the company is the wholesale of teas and tea related products.
In our opinion the financial statements give a true and fair view of the state of the company's affairs as at 31 March 2021 and of its loss for the year then ended;
• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
• have been prepared in accordance with the requirements of the Companies Act 2006.
S.B Herath
G. Jayaweera
D.L.R De Silva
J. Kinch
2021-11-01
10521323
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