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Absolute Garments Ltd

Annual Report and Unaudited Financial Statements

for the Year Ended 31 December 2016

A-spire Business Partners Ltd
Chartered Accountants
32 Byron Hill Road
Harrow on the Hill
Middlesex
HA2 0HY

Absolute Garments Ltd

Contents

Company Information	1
Balance Sheet	2 to 3
Notes to the Financial Statements	4 to 8

Absolute Garments Ltd

Company Information

Company secretary

Mr Alan Silver

Registered office

32 Byron Hill Road Harrow on the Hill Middlesex HA2 0HY

Accountants

A-spire Business Partners Ltd Chartered Accountants 32 Byron Hill Road Harrow on the Hill Middlesex HA2 0HY

Page 1

Absolute Garments Ltd

(Registration number: 4768508)
Balance Sheet as at 31 December 2016

	Note	2016 £	2015 £
Fixed assets
Tangible assets	4	4,103	1,610
Current assets
Stocks	5	200,000	269,321
Debtors	6	1,894,742	1,331,460
Cash at bank and in hand		651,718	280,985
		2,746,460	1,881,766
Creditors: Amounts falling due within one year	7	(711,205)	(210,438)
Net current assets		2,035,255	1,671,328
Total assets less current liabilities		2,039,358	1,672,938
Provisions for liabilities		(322)	(322)
Net assets		2,039,036	1,672,616
Capital and reserves
Called up share capital		2	2
Profit and loss account		2,039,034	1,672,614
Total equity		2,039,036	1,672,616

For the financial year ending 31 December 2016 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's responsibilities:

•	The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and
•	The director acknowledges his 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.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

The notes on pages 4 to 8 form an integral part of these financial statements.

Page 2

Absolute Garments Ltd

(Registration number: 4768508)
Balance Sheet as at 31 December 2016

Approved and authorised by the director on 25 September 2017
 

.........................................

Mr Mohammad Khan

Director

The notes on pages 4 to 8 form an integral part of these financial statements.

Page 3

Absolute Garments Ltd

Notes to the Financial Statements for the Year Ended 31 December 2016

1	General information

The company is a private company limited by share capital, incorporated in England.

The address of its registered office is:
32 Byron Hill Road
Harrow on the Hill
Middlesex
HA2 0HY
United Kingdom

The principal place of business is:
Waterside - Unit 15
44-48 Wharf Road
London
N1 7UX

These financial statements were authorised for issue by the director on 25 September 2017.

2	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 financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These 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 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.

Page 4

Absolute Garments Ltd

Notes to the Financial Statements for the Year Ended 31 December 2016

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.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when 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.

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:

Asset class	Depreciation method and rate
Office equipment	33.33% straight line

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.

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.

Page 5

Absolute Garments Ltd

Notes to the Financial Statements for the Year Ended 31 December 2016

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.

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.

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.

3	Staff numbers

The average number of persons employed by the company (including the director) during the year, was 3 (2015 - 3).

Page 6

Absolute Garments Ltd

Notes to the Financial Statements for the Year Ended 31 December 2016

4	Tangible assets

	Furniture, fittings and equipment  £	Total £
Cost or valuation
At 1 January 2016	3,488	3,488
Additions	3,532	3,532
At 31 December 2016	7,020	7,020
Depreciation
At 1 January 2016	1,878	1,878
Charge for the year	1,039	1,039
At 31 December 2016	2,917	2,917
Carrying amount
At 31 December 2016	4,103	4,103
At 31 December 2015	1,610	1,610

5

Stocks

	2016 £	2015 £
Other inventories	200,000	269,321

6

Debtors

	2016 £	2015 £
Trade debtors	337,766	45,288
Prepayments	1,254	48,379
Other debtors	1,555,722	1,237,793
	1,894,742	1,331,460

7

Creditors

Creditors: amounts falling due within one year

Page 7

Absolute Garments Ltd

Notes to the Financial Statements for the Year Ended 31 December 2016

	2016 £	2015 £
Due within one year
Trade creditors	518,195	46,041
Accruals and deferred income	65,502	85,619
Other creditors	127,508	78,778
	711,205	210,438