PONDICHERRY DESIGNS LIMITED - Filleted accounts

PONDICHERRY DESIGNS LIMITED - Filleted accounts

PONDICHERRY DESIGNS LIMITED - Company Information

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Registered number
06971087
(England and Wales)
PONDICHERRY DESIGNS LIMITED
AUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 September 2019
PONDICHERRY DESIGNS LIMITED
AUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 September 2019
Contents Page
Company information 1
Statement of Financial Position 2
Notes to the Financial Statements 3 to 8
PONDICHERRY DESIGNS LIMITED
COMPANY INFORMATION
FOR THE YEAR ENDED
30 September 2019
Directors
S Lodha
D Chandris
E Guerrand
Auditors
Haines Watts (Westbury) LLP
Chartered Accountants & Statutory Auditors
New Derwent House
69-73 Theobalds Road
London
WC1X 8TA
Registered office
3rd Floor
1-5 Clerkenwell Road
London
EC1M 5PA
Registered number
06971087
PONDICHERRY DESIGNS LIMITED Registered number:
Statement of Financial Position 06971087
as at 30 September 2019
Notes 2019 2018
£ £ £ £
Fixed assets
Tangible assets 5 364,275 86,816
Current assets
Stocks 7 709,923 282,072
Debtors 8 1,564,542 1,590,034
Cash at bank and in hand 583,585 126,501
2,858,050 1,998,607
Creditors: amounts falling due within one year 9 (1,651,843) (1,300,650)
Net current assets 1,206,207 697,957
Total assets less current liabilities 1,570,482 784,773
Creditors: amounts falling due after more than one year 10 - (140,000)
Provisions for liabilities 11 (61,919) -
Net assets 1,508,563 644,773
Capital and reserves
Called up share capital 12 143 143
Share premium 1,200,997 1,200,997
Profit and loss account 307,423 (556,367)
Shareholders' funds 1,508,563 644,773
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 relating to small companies with respect to accounting records and the preparation of financial statements.
The financial statements have been prepared and delivered in accordance with the special provisions applicable to companies subject to the small companies regime.
In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.
The financial statements were approved by the Board of Directors on 17 February 2020 and were
signed on its behalf by:
S Lodha
Director
PONDICHERRY DESIGNS LIMITED
Notes to the Financial Statements
for the Year Ended 30 September 2019
1 Statutory information
PONDICHERRY DESIGNS LIMITED is a private company limited by shares and incorporated in England. Its registered office is:
3rd Floor
1-5 Clerkenwell Road
London
EC1M 5PA
The presentation currency of the financial statements is Pound Sterling (£).
2 Accounting policies
Basis of preparation
The financial statements 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) and Companies Act 2006.
Preparation of consolidated financial statements
The financial statements contain information about Pondicherry Designs Limited as an individual Company and do not contain consolidated financial information as the parent of a group. The Company is exempt under Section 399(2A) of the Companies Act 2006 from the requirements to prepare consolidated financial statements.
Significant judgements and estimates
Preparation of the financial statements requires management to make significant judgements and estimates in determining the carrying amounts of certain assets and liabilities. Management makes assumptions of the effects of uncertain future events on those assets and liabilities at the balance sheet date. The management's estimates and assumptions are based on historical experience and expectation of future events and are reviewed periodically.
Returns accrual
At the balance sheet date, the management assessed all estimates and judgements and have concluded that the provision for sales returns and credit notes is considered significant to the financial statements.
An average of 9% of total sales relating to Autumn and Winter seasons has been provided for in the Balance Sheet as the provision for dilutions.

The following seasons and collections were affected:
-Holiday 2020 - 10%,
-High Summer 2019 - 10%,
-Pre Autumn Winter 2019 - 8%,
-Autumn Winter 2019 - 8%.

This has been based on the previous year's percentage of returns and credit notes of total sales, increased by 1% on average, as management believe that this reflects current trading and already approved returns.
Stock provision
Management judgement is required to estimate the provision for the devaluation of stock for older seasons. The provision calculation is based on the ageing of stock on hand : 40% write off of seasons older than a year (Holiday, Venyx), and 35% (Pre Spring Summer 2019) and 30% (Spring Summer 2019) of seasons that shipped in the first part of the current financial year.
Revenue Recognition
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. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer.
Tangible fixed assets
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:
Improvements to leasehold property over the lease term
Fixtures, fittings and equipment straight line over 5 years
Investments
Investments in subsidiaries are measured at cost.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the average cost method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised. Provision is made for obsolete, slow moving or defective items where appropriate.
Debtors
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.

Direct costs that relate to fashion collections to be delivered in future periods are deferred until such collections are delivered. Selling and administration costs associated with such collections are written off as incurred.
Creditors
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.
Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Income and Retained Earnings, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. Current or deferred taxation assets and liabilities are not discounted. Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. 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.
Foreign currency translation
Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss.
Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.
Pensions
Contributions to defined contribution plans are expensed in the period to which they relate.
Short term benefits and holiday pay
The costs of short-term employee benefits, including holiday pay, are recognised as a liability and an expense. The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
3 Employees and directors 2019 2018
Number Number
Average number of persons including directors employed by the Company 34 22
4 Disclosure under Section 444(5B) of the Companies Act 2006
The Report of the auditors was unqualified
Andy Gittins (Senior Statutory Auditor)
for and on behalf of Haines Watts (Westbury) LLP
17 February 2020
Date
5 Tangible fixed assets
Improvements to leasehold property Fixtures, fittings and equipment Total
£ £ £
Cost
At 1 October 2018 17,968 97,468 115,436
Additions 60,548 258,595 319,143
At 30 September 2019 78,516 356,063 434,579
Depreciation
At 1 October 2018 2,643 25,977 28,620
Charge for the year 10,000 31,684 41,684
At 30 September 2019 12,643 57,661 70,304
Net book value
At 30 September 2019 65,873 298,402 364,275
At 30 September 2018 15,325 71,491 86,816
6 Investments in subsidiary undertakings
During year ended 30 September 2017 the Company invested in a subsidiary undertaking. The cost of the investment was £0.11 and remains unchanged at the balance sheet date.
7 Stocks 2019 2018
£ £
Finished goods 709,923 282,072
8 Debtors: amounts falling due within one year 2019 2018
£ £
Factored debts outstanding 920,885 1,185,207
Trade debtors not factored 282,867 30,853
Deferred tax asset - 11,766
Other debtors 360,790 362,208
1,564,542 1,590,034
9 Creditors: amounts falling due within one year 2019 2018
£ £
Bank loans and overdrafts 4,516 24,296
Payments on account from factoring company (secured by charge over the North American present and future trade debtors) 16,293 327,224
Trade creditors 1,141,477 685,608
Amounts owed to group undertakings and undertakings in which the company has a participating interest 14,521 -
Taxation and social security costs 247,835 40,534
Other creditors 227,201 222,988
1,651,843 1,300,650
All amounts owing to the bank are secured by first fixed and floating charge over all the company assets.

The payments received on account from the factoring company are secured by charge over the North American present and future trade debtors.
10 Creditors: amounts falling due after one year 2019 2018
£ £
Other creditors (see note 15) - 140,000
11 Provisions for liabilities 2019 2018
£ £
Deferred tax 61,919 -
12 Called up share capital Nominal 2019 2018
value Number £ £
Allotted, issued and fully paid:
Ordinary shares £0.001 each 142,617 143 143
13 Pension commitments
The Company is operating a defined contribution pension scheme. During the year the Company contributed £26,775 (2018: £6,935).
14 Other financial commitments 2019 2018
£ £
Total future minimum payments under non-cancellable operating leases:
- less than one year 501,000 132,940
- more than one year 384,282 226,180
885,282 359,120
15 Related Party Transactions
Other creditors over one year comprised an amount due to a director of £140,000. The amount was repaid on 30 September 2019. During the year the company charged interest on the outstanding balance of £140,000 at 4% being £5,600 (2018: £5,600).

The Company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.
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