Registration number:
ABC Brothers Limited
for the Period from 1 April 2016 to 30 June 2017
Accountants and Tax Consultants
Thakrar House
113 Woolwich High Street
Woolwich
London
SE18 6DN
ABC Brothers Limited
Contents
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Company Information |
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Directors' Report |
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Accountants' Report |
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Abridged Profit and Loss Account |
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Statement of Comprehensive Income |
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Abridged Balance Sheet |
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Statement of Changes in Equity |
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Notes to the Abridged Financial Statements |
ABC Brothers Limited
Company Information
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Directors |
Ashwin C Patel Chandrakant C Patel |
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Company secretary |
Ashwin C Patel |
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Registered office |
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Bankers |
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Accountants |
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Page 1 |
ABC Brothers Limited
Directors' Report for the Period from 1 April 2016 to 30 June 2017
The directors present their report and the abridged financial statements for the period from 1 April 2016 to 30 June 2017.
Directors of the company
The directors who held office during the period were as follows:
Principal activity
The principal activity of the company is Grocery & Off Licence
Small companies provision statement
This report has been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
Approved by the Board on
.........................................
Ashwin C Patel
Director
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Page 2 |
Accountants' Report to the Board of Directors on the Preparation of the Unaudited Statutory Accounts of
ABC Brothers Limited
for the Period Ended 30 June 2017
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of ABC Brothers Limited for the period ended 30 June 2017 as set out on pages 4 to 14 from the company's accounting records and from information and explanations you have given us.
This report is made solely to the Board of Directors of ABC Brothers Limited, as a body, in accordance with the terms of our engagement letter. Our work has been undertaken solely to prepare for your approval the accounts of ABC Brothers Limited and state those matters that we have agreed to state to the Board of Directors of ABC Brothers Limited. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than ABC Brothers Limited and its Board of Directors as a body for our work or for this report.
It is your duty to ensure that ABC Brothers 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 loss of ABC Brothers Limited. You consider that ABC Brothers Limited is exempt from the statutory audit requirement for the period.
We have not been instructed to carry out an audit or a review of the accounts of ABC Brothers 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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Thakrar House
113 Woolwich High Street
Woolwich
London
SE18 6DN
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Page 3 |
ABC Brothers Limited
Abridged Profit and Loss Account for the Period from 1 April 2016 to 30 June 2017
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Note |
Total |
Total |
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Gross profit |
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Administrative expenses |
( |
( |
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Other interest receivable and similar income |
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(Loss)/profit before tax |
( |
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Taxation |
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( |
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(Loss)/profit for the financial period |
( |
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The above results were derived from continuing operations.
The company has no recognised gains or losses for the period other than the results above.
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Page 4 |
ABC Brothers Limited
Statement of Comprehensive Income for the Period from 1 April 2016 to 30 June 2017
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Note |
2017 |
2016 |
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(Loss)/profit for the period |
( |
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Total comprehensive income for the period |
( |
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Page 5 |
ABC Brothers Limited
(Registration number: 4164475)
Abridged Balance Sheet as at 30 June 2017
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Note |
2017 |
2016 |
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Fixed assets |
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Intangible assets |
- |
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Tangible assets |
- |
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- |
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Current assets |
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Stocks |
- |
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Debtors |
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- |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
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Total assets less current liabilities |
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Provisions for liabilities |
- |
( |
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Accruals and deferred income |
( |
( |
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Net assets |
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Capital and reserves |
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Called up share capital |
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Profit and loss account |
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Total equity |
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For the financial period ending 30 June 2017 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
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• |
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• |
The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. |
These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
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Page 6 |
ABC Brothers Limited
(Registration number: 4164475)
Abridged Balance Sheet as at 30 June 2017
All of the company’s members have consented to the preparation of an Abridged Profit and Loss Account and an Abridged Balance Sheet in accordance with Section 444(2A) of the Companies Act 2006.
Approved and authorised by the Board on
.........................................
Chandrakant C Patel
Director
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Page 7 |
ABC Brothers Limited
Statement of Changes in Equity for the Period from 1 April 2016 to 30 June 2017
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Share capital |
Profit and loss account |
Total |
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At 1 April 2016 |
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Loss for the period |
- |
( |
( |
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Total comprehensive income |
- |
( |
( |
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Dividends |
- |
( |
( |
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At 30 June 2017 |
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Share capital |
Profit and loss account |
Total |
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At 1 April 2015 |
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Profit for the period |
- |
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Total comprehensive income |
- |
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Dividends |
- |
( |
( |
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At 31 March 2016 |
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Page 8 |
ABC Brothers Limited
Notes to the Abridged Financial Statements for the Period from 1 April 2016 to 30 June 2017
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General information |
The company is a private company limited by share capital incorporated in England & Wales.
The address of its registered office is:
These financial statements were authorised for issue by the
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Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These abridged financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
Basis of preparation
These abridged financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
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Page 9 |
ABC Brothers Limited
Notes to the Abridged Financial Statements for the Period from 1 April 2016 to 30 June 2017
Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.
Tangible assets
Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
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Asset class |
Depreciation method and rate |
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Fixtures & fittings |
15% reducing balance basis |
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Motor vehicle |
25% reducing balance basis |
Goodwill
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
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Asset class |
Amortisation method and rate |
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Goodwill |
5% straight line basis |
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
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Page 10 |
ABC Brothers Limited
Notes to the Abridged Financial Statements for the Period from 1 April 2016 to 30 June 2017
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
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Page 11 |
ABC Brothers Limited
Notes to the Abridged Financial Statements for the Period from 1 April 2016 to 30 June 2017
Dividends
Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
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Staff numbers |
The average number of persons employed by the company (including directors) during the period, was
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Loss/profit before tax |
Arrived at after charging/(crediting)
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2017 |
2016 |
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Depreciation expense |
- |
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Amortisation expense |
- |
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Page 12 |
ABC Brothers Limited
Notes to the Abridged Financial Statements for the Period from 1 April 2016 to 30 June 2017
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Intangible assets |
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Total |
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Cost or valuation |
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At 1 April 2016 |
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Disposals |
( |
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At 30 June 2017 |
- |
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Amortisation |
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At 1 April 2016 |
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Amortisation eliminated on disposals |
( |
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At 30 June 2017 |
- |
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Carrying amount |
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At 30 June 2017 |
- |
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At 31 March 2016 |
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The aggregate amount of research and development expenditure recognised as an expense during the period is £Nil (2016 - £Nil).
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Page 13 |
ABC Brothers Limited
Notes to the Abridged Financial Statements for the Period from 1 April 2016 to 30 June 2017
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Tangible assets |
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Total |
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Cost or valuation |
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At 1 April 2016 |
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Disposals |
( |
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At 30 June 2017 |
- |
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Depreciation |
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At 1 April 2016 |
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Eliminated on disposal |
( |
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At 30 June 2017 |
- |
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Carrying amount |
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At 30 June 2017 |
- |
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At 31 March 2016 |
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Stocks |
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2017 |
2016 |
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Other inventories |
- |
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Dividends |
Final dividends paid
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2017 |
2016 |
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Final dividend of £112.50 (2016 - £160) per each |
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Page 14 |
ABC Brothers Limited
Detailed Profit and Loss Account for the Period from 1 April 2016 to 30 June 2017
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2017 |
2016 |
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Turnover (analysed below) |
1,745,037 |
1,894,594 |
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Cost of sales (analysed below) |
(1,348,574) |
(1,462,580) |
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Gross profit |
396,463 |
432,014 |
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Gross profit (%) |
22.72% |
22.8% |
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Administrative expenses |
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Employment costs (analysed below) |
(580,996) |
(198,317) |
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Establishment costs (analysed below) |
(82,683) |
(72,945) |
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General administrative expenses (analysed below) |
(34,436) |
(27,556) |
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Finance charges (analysed below) |
(9,167) |
(12,431) |
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Depreciation costs (analysed below) |
(50,368) |
(31,560) |
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Other expenses (analysed below) |
239,465 |
- |
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(518,185) |
(342,809) |
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Operating (loss)/profit |
(121,722) |
89,205 |
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Other interest receivable and similar income (analysed below) |
1,122 |
839 |
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(Loss)/profit before tax |
(120,600) |
90,044 |
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Page 15 |
ABC Brothers Limited
Detailed Profit and Loss Account for the Period from 1 April 2016 to 30 June 2017
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2017 |
2016 |
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Turnover |
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Sales |
1,733,474 |
1,881,022 |
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Commissions receivable |
11,563 |
13,572 |
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1,745,037 |
1,894,594 |
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Cost of sales |
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Opening stock |
64,961 |
71,300 |
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Purchases |
1,283,613 |
1,456,241 |
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Closing raw materials |
- |
(64,961) |
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1,348,574 |
1,462,580 |
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Employment costs |
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Wages and salaries (excluding directors) |
(200,371) |
(180,756) |
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Directors remuneration |
(55,235) |
(17,561) |
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Staff pensions (Defined contribution) |
(325,000) |
- |
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Staff pensions (Other) |
(390) |
- |
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(580,996) |
(198,317) |
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Establishment costs |
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Rent and rates |
(65,376) |
(59,102) |
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Light, heat and power |
(10,903) |
(8,723) |
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Insurance |
(2,804) |
(2,240) |
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Use of home as office |
(3,600) |
(2,880) |
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(82,683) |
(72,945) |
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General administrative expenses |
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Repairs and renewals |
(9,939) |
(9,392) |
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Telephone and fax |
(2,579) |
(2,184) |
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Printing, postage and stationery |
(1,003) |
(1,518) |
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Sundry expenses |
(1,243) |
(1,813) |
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Cleaning |
(2,254) |
(1,869) |
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Motor expenses |
(3,408) |
(3,630) |
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Advertising |
(2,790) |
(1,150) |
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Accountancy fees |
(8,300) |
(6,000) |
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Legal and professional fees |
(2,920) |
- |
|
(34,436) |
(27,556) |
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Page 16 |
ABC Brothers Limited
Detailed Profit and Loss Account for the Period from 1 April 2016 to 30 June 2017
|
Finance charges |
||
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Bank charges |
(9,167) |
(12,431) |
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Depreciation costs |
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Amortisation of goodwill |
- |
(11,750) |
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Depreciation of fixtures and fittings (owned) |
- |
(19,178) |
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Depreciation of motor vehicles (owned) |
- |
(632) |
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(Profit)/loss on disposal of tangible fixed assets |
(50,368) |
- |
|
(50,368) |
(31,560) |
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Other expenses |
||
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(Profit)/loss on disposal of disposal of business |
239,465 |
- |
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Other interest receivable and similar income |
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Bank interest receivable |
1,122 |
839 |
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Page 17 |