Company registration number 10646614 (England and Wales)
GLOBAL CAPITAL HOLDINGS LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 MARCH 2022
GLOBAL CAPITAL HOLDINGS LTD
COMPANY INFORMATION
Directors
Mr F Lalani
Mr J Mawji
Company number
10646614
Registered office
Azets
Wynyard Park House
Wynyard Avenue
Wynyard
United Kingdom
TS22 5TB
Auditor
Azets Audit Services
Wynyard Park House
Wynyard Avenue
Wynyard
United Kingdom
TS22 5TB
Bankers
HSBC Bank Plc
St Clement Danes W C 2
194 Strand
London
United Kingdom
WC2R 1DX
GLOBAL CAPITAL HOLDINGS LTD
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 22
GLOBAL CAPITAL HOLDINGS LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 30 MARCH 2022
- 1 -
The directors present the strategic report for the year ended 30 March 2022.
Fair review of the business
The Company has made a small loss during the year as this year was a year of consolidation in relation to properties included in deals from previous periods. The Company has incurred expenditure in relation to these properties whilst not entering into new deals in the period.
The majority of outflows during the year relate to refurbishment costs in relation to these properties.
The Company remains in strong financial position and expects to meet all of its committed obligations based on current liquidity and requirements.
There have been no negative headwinds to impact the continued growth of the Company.
Principal risks and uncertainties
The Company has clear leadership at the director level and a strong management team.
Risks to the business are regularly considered and their impact mitigated. Principal risks and uncertainties are noted as:
-
Funding for future growth: the Company has relationships with various funders to assist in the purchase and sale of properties. The Company continues to expand this funder base to support the expected growth.
-
Refurbishment costs: Refurbishment costs continue to increase, and often actual costs are higher than those projected at acquisition of the property. The Company has been including a contingency into its projections which has mitigated the cost increases to date.
The Company continues to strengthen its processes and systems to identify risks early in order to minimise the impact.
Key performance indicators
The Company's focus this year has concentrated on the expenditure of the refurbishment of properties, to make suitable for their intended use, from deals in the previous period and has therefore reported results as expected. The company reported revenue of £nil (2021: £16,299,251) and loss before tax of £235,711 (2021 profit: £2,202,305).
Mr J Mawji
Director
20 December 2022
GLOBAL CAPITAL HOLDINGS LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 MARCH 2022
- 2 -
The directors present their annual report and financial statements for the year ended 30 March 2022.
Principal activities
The principal activity of the company continued to be that of buying and selling real estate.
Results and dividends
The results for the year are set out on page 7.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr F Lalani
Mr J Mawji
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s
auditor
is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s
auditor
is aware of that information.
On behalf of the board
Mr J Mawji
Director
20 December 2022
GLOBAL CAPITAL HOLDINGS LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 MARCH 2022
- 3 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
-
select suitable accounting policies and then apply them consistently;
-
make judgements and accounting estimates that are reasonable and prudent;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
GLOBAL CAPITAL HOLDINGS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GLOBAL CAPITAL HOLDINGS LTD
- 4 -
Opinion
We have audited the financial statements of Global Capital Holdings Ltd (the 'company') for the year ended 30 March 2022 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies.
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102
The Financial Reporting Standard applicable in the UK and Republic of Ireland
(United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
-
give a true and fair view of the state of the company's affairs as at 30 March 2022 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.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the
Auditor's
responsibilities for the audit of the
financial statements
section of our report. We are independent of the
company
in accordance with the ethical requirements that are relevant to our audit of the
financial statements
in the UK, including the FRC’s Ethical Standard
, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit
:
-
the information given in the strategic report and the directors'
r
eport for the financial year for which the financial statements are prepared is consistent with the financial statements
; and
-
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
GLOBAL CAPITAL HOLDINGS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GLOBAL CAPITAL HOLDINGS LTD
- 5 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie
d
material misstatements in the strategic report or the directors'
r
eport
. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
-
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
-
the financial statements are not in agreement with the accounting records and returns; or
-
certain disclosures of
remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors'
r
esponsibilities
s
tatement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of
financial statements
that are free from material misstatement, whether due to fraud or error. In preparing the
financial statements
, the
directors are
responsible for assessing the company
'
s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have
no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the
financial statements
as a whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor's
report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with
ISAs (UK)
will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these
financial statements
.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
GLOBAL CAPITAL HOLDINGS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GLOBAL CAPITAL HOLDINGS LTD
- 6 -
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
-
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
-
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;
-
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
-
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Joanne Regan FCA (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
20 December 2022
Chartered Accountants
Statutory Auditor
Wynyard Park House
Wynyard Avenue
Wynyard
United Kingdom
TS22 5TB
GLOBAL CAPITAL HOLDINGS LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 MARCH 2022
- 7 -
2022
2021
Notes
£
£
Turnover
3
16,299,251
Cost of sales
(156,389)
(13,651,613)
Gross (loss)/profit
(156,389)
2,647,638
Administrative expenses
(380,424)
(476,259)
Exceptional item
4
250,000
(23,766)
Operating (loss)/profit
5
(286,813)
2,147,613
Interest receivable and similar income
8
63,531
61,320
Interest payable and similar expenses
9
(12,429)
(6,628)
(Loss)/profit before taxation
(235,711)
2,202,305
Tax on (loss)/profit
10
51,866
(413,444)
(Loss)/profit for the financial year
(183,845)
1,788,861
GLOBAL CAPITAL HOLDINGS LTD
BALANCE SHEET
AS AT
30 MARCH 2022
30 March 2022
- 8 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
11
136,103
187,149
Current assets
Debtors
12
11,319,827
11,173,766
Cash at bank and in hand
723,793
2,592,712
12,043,620
13,766,478
Creditors: amounts falling due within one year
13
(3,133,340)
(4,658,797)
Net current assets
8,910,280
9,107,681
Total assets less current liabilities
9,046,383
9,294,830
Creditors: amounts falling due after more than one year
14
(29,232)
(84,136)
Provisions for liabilities
Deferred tax liability
16
25,860
35,558
(25,860)
(35,558)
Net assets
8,991,291
9,175,136
Capital and reserves
Called up share capital
18
4
4
Profit and loss reserves
8,991,287
9,175,132
Total equity
8,991,291
9,175,136
The financial statements were approved by the board of directors and authorised for issue on 20 December 2022 and are signed on its behalf by:
Mr J Mawji
Director
Company Registration No. 10646614
GLOBAL CAPITAL HOLDINGS LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 MARCH 2022
- 9 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 31 March 2020
4
7,386,271
7,386,275
Year ended 30 March 2021:
Profit and total comprehensive income for the year
-
1,788,861
1,788,861
Balance at 30 March 2021
4
9,175,132
9,175,136
Year ended 30 March 2022:
Loss and total comprehensive income for the year
-
(183,845)
(183,845)
Balance at 30 March 2022
4
8,991,287
8,991,291
GLOBAL CAPITAL HOLDINGS LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 MARCH 2022
- 10 -
2022
2021
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
21
(1,489,476)
2,129,312
Interest paid
(12,429)
(6,628)
Income taxes paid
(377,304)
(556,311)
Net cash (outflow)/inflow from operating activities
(1,879,209)
1,566,373
Investing activities
Purchase of tangible fixed assets
(3,085)
(213,795)
Proceeds on disposal of subsidiaries
101
Interest received
63,531
61,320
Net cash generated from/(used in) investing activities
60,446
(152,374)
Financing activities
Payment of finance leases obligations
(50,156)
134,291
Net cash (used in)/generated from financing activities
(50,156)
134,291
Net (decrease)/increase in cash and cash equivalents
(1,868,919)
1,548,290
Cash and cash equivalents at beginning of year
2,592,712
1,044,422
Cash and cash equivalents at end of year
723,793
2,592,712
GLOBAL CAPITAL HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 MARCH 2022
- 11 -
1
Accounting policies
Company information
Global Capital Holdings Ltd is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
Azets, Wynyard Park House, Wynyard Avenue, Wynyard, United Kingdom, TS22 5TB.
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.
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
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. Thus
t
he directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for
the sale of properties
in the normal course of business
. The sale of properties are either as individual property sales, or the sale of shares in special purpose vehicles in which the properties are contained.
Revenue from the sale of
properties
is recognised when the significant risks and rewards of ownership of the
properties
have passed to the buyer, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Office equipment
33% straight line
Computers
33% straight line
Motor vehicles
25% straight line
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
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
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.
GLOBAL CAPITAL HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 MARCH 2022
1
Accounting policies
(Continued)
- 12 -
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in
profit
or
loss
, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
1.6
Cash and cash equivalents
Cash and cash equivalents
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 has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet 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
debtors
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.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in
profit
or
loss
, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those
held
at
fair value through profit and loss
, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.
If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
GLOBAL CAPITAL HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 MARCH 2022
1
Accounting policies
(Continued)
- 13 -
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when
the company
transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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.
Basic financial liabilities
Basic financial liabilities, including
creditors
,
and
loans from
fellow group
and associated
companie
s
, 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 creditors
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 creditors
are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations
expire or are discharged or cancelled.
1.8
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.
1.9
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.
GLOBAL CAPITAL HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 MARCH 2022
1
Accounting policies
(Continued)
- 14 -
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.
1.10
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
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair
value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
1.13
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
in the period
are included in profit or loss.
GLOBAL CAPITAL HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 MARCH 2022
- 15 -
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.
Provision for fit out costs
As a condition of the sale of some of the properties, refurbishment is required after sale to ensure they are suitable for the use intended. The company contracts to meet this obligation. A specific provision for the costs expected for each property is included within creditors under ‘provision for fit out costs’. At the balance sheet date, the directors provide a best estimate of the provision required for future fit out costs for properties sold. The directors best estimate is derived from their knowledge of historic transactions and costs.
Income recognition
Income relating to the sale of a property or investment is recognised when the significant risks and rewards of the properties or investments have passed to the buyer.
Carrying value of stock
Properties for resale are held at the lower of cost and net realisable value. The cost includes all legal costs incurred in purchasing the property to be resold. Pre acquisition property costs are held within stock at cost. These relate to costs incurred on properties which are purchased post year end. No costs are held in stocks for any aborted property purchases post year end.
3
Turnover and other revenue
2022
2021
£
£
Turnover analysed by class of business
Property sales
-
16,297,250
Other income
-
2,001
16,299,251
2022
2021
£
£
Other revenue
Interest income
63,531
61,320
All turnover is generated from within the United Kingdom.
GLOBAL CAPITAL HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 MARCH 2022
- 16 -
4
Exceptional item
2022
2021
£
£
Expenditure
Intercompany loan write off
-
23,766
Third party loan write off
(250,000)
-
The exceptional item is in relation to the settlement of a historic loan which was written off in the year ended 30 March 2020 when it was deemed to be irrecoverable.
5
Operating (loss)/profit
2022
2021
Operating (loss)/profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
11,500
14,400
Depreciation of owned tangible fixed assets
1,325
1,924
Depreciation of tangible fixed assets held under finance leases
52,806
26,403
(Profit)/loss on disposal of tangible fixed assets
624
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Management and admin
4
7
Their aggregate remuneration comprised:
2022
2021
£
£
Wages and salaries
127,000
279,019
Social security costs
12,346
30,029
Pension costs
1,223
2,329
140,569
311,377
7
Directors' remuneration
2022
2021
£
£
Remuneration for qualifying services
48,000
24,000
GLOBAL CAPITAL HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 MARCH 2022
- 17 -
8
Interest receivable and similar income
2022
2021
£
£
Interest income
Interest on bank deposits
1,015
477
Other interest income
62,516
60,843
Total income
63,531
61,320
Investment income includes the following:
Interest on financial assets not measured at fair value through profit or loss
63,531
61,320
9
Interest payable and similar expenses
2022
2021
£
£
Other finance costs:
Interest on finance leases and hire purchase contracts
9,773
6,627
Other interest
2,656
1
12,429
6,628
10
Taxation
2022
2021
£
£
Current tax
UK corporation tax on profits for the current period
(42,168)
377,304
Deferred tax
Origination and reversal of timing differences
(9,698)
36,140
Total tax (credit)/charge
(51,866)
413,444
GLOBAL CAPITAL HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 MARCH 2022
10
Taxation
(Continued)
- 18 -
The actual (credit)/charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:
2022
2021
£
£
(Loss)/profit before taxation
(235,711)
2,202,305
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
(44,785)
418,438
Tax effect of expenses that are not deductible in determining taxable profit
4,989
2,050
Tax effect of income not taxable in determining taxable profit
(12,070)
Adjustments in respect of financial assets
(11,560)
Intercompany balances written off
4,516
Taxation (credit)/charge for the year
(51,866)
413,444
11
Tangible fixed assets
Office equipment
Computers
Motor vehicles
Total
£
£
£
£
Cost
At 31 March 2021
450
8,561
211,225
220,236
Additions
3,085
3,085
At 30 March 2022
3,535
8,561
211,225
223,321
Depreciation and impairment
At 31 March 2021
400
6,284
26,403
33,087
Depreciation charged in the year
307
1,018
52,806
54,131
At 30 March 2022
707
7,302
79,209
87,218
Carrying amount
At 30 March 2022
2,828
1,259
132,016
136,103
At 30 March 2021
50
2,277
184,822
187,149
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2022
2021
£
£
Motor vehicles
132,016
184,822
GLOBAL CAPITAL HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 MARCH 2022
- 19 -
12
Debtors
2022
2021
Amounts falling due within one year:
£
£
Corporation tax recoverable
42,168
Other debtors
8,937,601
8,896,255
Prepayments and accrued income
4,240
4,210
8,984,009
8,900,465
2022
2021
Amounts falling due after more than one year:
£
£
Other debtors
2,335,818
2,273,301
Total debtors
11,319,827
11,173,766
13
Creditors: amounts falling due within one year
2022
2021
Notes
£
£
Obligations under finance leases
15
54,903
50,155
Trade creditors
53,011
275,054
Corporation tax
377,304
Other creditors
3,003,350
3,921,266
Accruals and deferred income
22,076
35,018
3,133,340
4,658,797
Obligations under finance lease are secured on the assets to which they relate.
14
Creditors: amounts falling due after more than one year
2022
2021
Notes
£
£
Obligations under finance leases
15
29,232
84,136
Obligations under finance lease are secured on the assets to which they relate.
GLOBAL CAPITAL HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 MARCH 2022
- 20 -
15
Finance lease obligations
2022
2021
Future minimum lease payments due under finance leases:
£
£
Within one year
54,903
50,155
In two to five years
29,232
84,136
84,135
134,291
Finance lease payments represent rentals payable by the company for motor vehicles. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
16
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2022
2021
Balances:
£
£
Accelerated capital allowances
25,860
35,558
2022
Movements in the year:
£
Liability at 31 March 2021
35,558
Credit to profit or loss
(9,698)
Liability at 30 March 2022
25,860
The deferred tax liability set out above is expected to reverse over the period fixed assets are depreciated and relates to accelerated capital allowances on those assets.
17
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
1,223
2,329
The company operates a defined contribution pension scheme for all qualifying employees.
The assets of the scheme are held separately from those of the company in an independently administered fund.
GLOBAL CAPITAL HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 MARCH 2022
- 21 -
18
Share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
4
4
4
4
19
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Profit share in collaborative projects
Care contribution and fit out costs
2022
2021
2022
2021
£
£
£
£
Other related parties
-
5,514
-
665,072
The following amounts were outstanding at the reporting end date:
2022
2021
Amounts due to related parties
£
£
Key management personnel
2,026,208
2,040,008
The following amounts were outstanding at the reporting end date:
2022
2021
Amounts due from related parties
£
£
Other related parties
11,023,421
10,959,952
20
Ultimate controlling party
The ultimate controlling parties are Mr and Mrs Mawji and Mr and Mrs Lalani, the shareholders of Global Capital Holdings Ltd.
GLOBAL CAPITAL HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 MARCH 2022
- 22 -
21
Cash (absorbed by)/generated from operations
2022
2021
£
£
(Loss)/profit for the year after tax
(183,845)
1,788,861
Adjustments for:
Taxation (credited)/charged
(51,866)
413,444
Finance costs
12,429
6,628
Investment income
(63,531)
(61,320)
(Gain)/loss on disposal of tangible fixed assets
624
Depreciation and impairment of tangible fixed assets
54,131
28,327
Movements in working capital:
Decrease in stocks
13,000
(Increase)/decrease in debtors
(103,893)
2,136,366
Decrease in creditors
(1,152,901)
(2,196,618)
Cash (absorbed by)/generated from operations
(1,489,476)
2,129,312
22
Analysis of changes in net funds
31 March 2021
Cash flows
30 March 2022
£
£
£
Cash at bank and in hand
2,592,712
(1,868,919)
723,793
Obligations under finance leases
(134,291)
50,156
(84,135)
2,458,421
(1,818,763)
639,658
2022-03-30
2021-03-31
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