J & S Restaurant Limited |
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Chartered Accountants' report to the board of directors on the preparation of the unaudited statutory accounts of J & S Restaurant Limited for the year ended 31 May 2017 |
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of J & S Restaurant Limited for the year ended 31 May 2017 which comprise of the Profit and Loss Account, the Balance Sheet, the Statement of Changes in Equity 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, we are subject to its ethical and other professional requirements which are detailed at www.icaew.com/en/members/regulations-standards-and-guidance |
This report is made solely to the Board of Directors of J & S Restaurant Limited, as a body, in accordance with the terms of our engagement letter dated 27 February 2017. Our work has been undertaken solely to prepare for your approval the accounts of J & S Restaurant Limited and state those matters that we have agreed to state to the Board of Directors of J & S Restaurant 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 J & S Restaurant Limited and its Board of Directors as a body for our work or for this report. |
It is your duty to ensure that J & S Restaurant Limited has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and profit of J & S Restaurant Limited. You consider that J & S Restaurant 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 accounts of J & S Restaurant 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 accounts. |
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Man & Co |
Chartered Accountants |
114 Hamlet Court Road |
Westcliff On Sea |
Essex |
SS0 7LP |
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25 May 2018 |
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J & S Restaurant Limited
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Notes to the Accounts |
for the year ended 31 May 2017
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1 |
Accounting policies |
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Basis of preparation |
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The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard).
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Turnover |
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Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.
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Intangible fixed assets |
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Intangible fixed assets are measured at cost less accumulative amortisation and any accumulative impairment losses.
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Tangible fixed assets |
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Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows:
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Plant and machinery |
over 5 years |
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Investments |
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Investments in subsidiaries, associates and joint ventures are measured at cost less any accumulated impairment losses. Listed investments are measured at fair value. Unlisted investments are measured at fair value unless the value cannot be measured reliably, in which case they are measured at cost less any accumulated impairment losses. Changes in fair value are included in the profit and loss account.
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Debtors |
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Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.
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Creditors |
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Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.
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Taxation |
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A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.
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2 |
Employees |
2017 |
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2016 |
Number |
Number |
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Average number of persons employed by the company |
3 |
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- |
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3 |
Intangible fixed assets |
£ |
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Goodwill: |
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Cost |
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At 1 June 2016 |
120,000 |
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At 31 May 2017 |
120,000 |
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Amortisation |
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At 1 June 2016 |
119,999 |
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At 31 May 2017 |
119,999 |
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Net book value |
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At 31 May 2017 |
1 |
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At 31 May 2016 |
1 |
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Goodwill is being written off in equal annual instalments over its estimated economic life of 5 years. |
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4 |
Tangible fixed assets |
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Plant and machinery etc |
£ |
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Cost |
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At 1 June 2016 |
308,527 |
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At 31 May 2017 |
308,527 |
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Depreciation |
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At 1 June 2016 |
308,526 |
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At 31 May 2017 |
308,526 |
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Net book value |
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At 31 May 2017 |
1 |
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At 31 May 2016 |
1 |
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5 |
Investments |
Investments in |
subsidiary |
undertakings |
£ |
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Cost |
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At 1 June 2016 |
509,137 |
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At 31 May 2017 |
509,137 |
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6 |
Debtors |
2017 |
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2016 |
£ |
£ |
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Deferred tax asset |
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12,163 |
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14,833 |
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Other debtors |
48,371 |
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48,893 |
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60,534 |
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63,726 |
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Amounts due after more than one year included above |
31,860 |
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31,860 |
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7 |
Creditors: amounts falling due within one year |
2017 |
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2016 |
£ |
£ |
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Bank loans and overdrafts |
115,940 |
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117,048 |
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Amounts owed to group undertakings and undertakings in which the company has a participating interest |
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86,239 |
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98,759 |
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Corporation tax |
25,320 |
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11,284 |
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Other taxes and social security costs |
2,943 |
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- |
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Other creditors |
228,066 |
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276,713 |
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458,508 |
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503,804 |
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8 |
Creditors: amounts falling due after one year |
2017 |
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2016 |
£ |
£ |
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Bank loans |
37,389 |
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147,081 |
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9 |
Loans |
2017 |
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2016 |
£ |
£ |
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Creditors include: |
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Secured bank loans |
153,329 |
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264,129 |
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Bank loan 1: This bears interest at 3.3% per annum over the Bank's Sterling Base Rate and is repayable by monthly instalments to March 2019. |
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Bank loan 2: This bears interest at 3.3% per annum over the Bank's Sterling Base Rate and is repayable by monthly instalments to March 2019. |
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Bank loan 3: This bears interest at 4.5% per annum over the Bank's Sterling Base Rate and is repayable by monthly instalments to July 2020. |
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Bank loan 4: This bears interest at 3.25% per annum over the Bank's Sterling Base Rate and is repayable by monthly instalments to September 2018. |
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The bank loans were secured by fixed and floating charges over the assets of the company and by guarantees provided by the Director. |
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10 |
Other financial commitments |
2017 |
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2016 |
£ |
£ |
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Total future minimum payments under non-cancellable operating leases |
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189,018 |
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189,018 |
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11 |
Related party transactions |
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During the period ended 31 May 2016, the company had the following transactions with its group companies: |
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2017 |
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2016 |
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Rent and service charges receivable |
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189,137 |
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192,414 |
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Management charge receivables |
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205,497 |
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82,639 |
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Dividends receivables |
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65,000 |
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10,000 |
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As at 31 May 2017: |
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Amounts to due to group companies |
86,239 |
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98,759 |
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Balances due to directors
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9,843 |
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59,843 |
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12 |
Other information |
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J & S Restaurant Limited is a private company limited by shares and incorporated in England. Its registered office is: |
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114 Hamlet Court Road |
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Westcliff On Sea |
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Essex |
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SS0 7LP |
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13 |
Additional information |
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These accounts are signed upon the Direction of a sole director by reason of a continuing director's dispute. |