Password Productions Ltd. - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 05727791 (England and Wales)

Unaudited Financial Statements for the Year Ended 31 July 2019

for

Password Productions Ltd.

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

D Johnson

R J Eady

SECRETARY:

S H Pennington

REGISTERED OFFICE:

85b Torriano Avenue

London

NW5 2RX

REGISTERED NUMBER:

05727791 (England and Wales)

FIXED ASSETS

Tangible assets

4

1,866

1,959

Investments

5

150,000

-

151,866

1,959

CURRENT ASSETS

Debtors

6

258,792

310,977

Cash at bank and in hand

254,375

640,510

513,167

951,487

CREDITORS

Amounts falling due within one year

7

43,603

310,505

NET CURRENT ASSETS

469,564

640,982

TOTAL ASSETS LESS CURRENT LIABILITIES

621,430

642,941

PROVISIONS FOR LIABILITIES

8

355

372

NET ASSETS

621,075

642,569

CAPITAL AND RESERVES

Called up share capital

2

2

Retained earnings

621,073

642,567

SHAREHOLDERS' FUNDS

621,075

642,569

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 July 2019.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 July 2019 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the 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 and authorised for issue on 30 April 2020 and were signed on its behalf by:

D Johnson - Director

1.	STATUTORY INFORMATION

Password Productions Ltd. is a private company, limited by shares , registered in England

and Wales. The company's registered number and registered office address can be found

on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover

Turnover is measured at the fair value of the consideration received or receivable and

represents amounts receivable for goods and services rendered, stated net of discounts and

of Value Added Tax.

When cash inflows are deferred and represent a financing arrangement, the fair value of the

consideration is the present value of the future receipts. The difference between the fair

value of the consideration and the normal amount received is recognised as interest

income.

The company recognised income as a producer of theatre, comedy and spoken work events

on a right to consideration basis.

Box office revenue from theatrical productions is recognised by reference to the date the

performance took place.

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 at the following rate to write off the cost of the asset less their

residual values over the assets useful lives:

Office Equipment etc - 33% on cost and 20% on cost

On disposal, the difference between the net disposal proceeds and the carrying amount of

the item sold is recognised in profit or loss.

Financial instruments

The company only enters into basic financial instruments transactions that result in the

recognition of financial assets and liabilities like trade and other accounts receivable and

payable, loans from banks and other third parties, loans to related parties and other third

parties and investments in non-puttable ordinary shares.

Financial assets that are measured at cost and amortised cost are assessed at the end of

each reporting period for objective evidence of impairment. If objective evidence of

impairment is found, an impairment loss is recognised in profit or loss.

For financial assets measured at amortised cost, the impairment loss is measured as the

difference between an asset's carrying amount and the present value of estimated cash

flows discounted at the asset's original effective interest rate. If a financial asset has a

variable interest rate, the discount rate for measuring any impairment loss is the current

effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as

the difference between an asset's carrying amount and the best estimate, which is an

approximation, of the amount that the company would receive for the asset if it were to be

sold at the reporting date.

Financial assets and liabilities are offset and the net amount reported in the statement of

financial position when there is an 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.

Debtors:

Short term debtors, classified as receivable in one year, are measured at transaction price,

less any impairment.

Creditors:

Short term trade creditors, classified as payable in one year, are measured at the

transaction price.

Cash at bank and in hand:

Cash at bank and in hand are basic financial assets and include cash in hand, despoils 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 under current

liabilities.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income

Statement, 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.

Fixed asset investments

Investments in theatrical productions consist of advances to productions which are repayable

out of the profit of a production. The investments are initially measured at fair value

(normally transaction price). In general fair values subsequent to the initial investment

cannot be measure reliability, therefore costs in theatrical productions are subsequently

measured at cost less impairment. The investments are assessed for impairment at each

reporting date and any impairment losses or reversals of impairment losses are recognised

immediately in the profit and loss.

Impairment of fixed assets

At each reporting date non-financial assets not carried at fair value, like goodwill and plant,

property and equipment, are reviewed to determine whether there is an indication that an

asset may be impaired. If there is an indication of possible impairment, the recoverable

amount of any asset or group of related assets, which is the higher of value in use and the

fair value less cost to sell, is estimated and compared with its carrying amount. If the

recoverable amount is lower, the carrying amount of the asset is reduced to its recoverable

amount and an impairment loss is recognised immediately in profit or loss.

Inventories are also assessed for impairment at each reporting date. The carrying amount of

each item of inventory, or group of similar items, is compared with its selling price less costs

to complete and sell. If an item of inventory or group of similar items is impaired, its carrying

amount is reduced to selling price less costs to complete and sell, and an impairment loss is

recognised immediately in profit or loss.

If an impairment loss is subsequently reversed, the carrying amount of the asset or group of

elated assets is increased to the revised estimate of its recoverable amount, but not to

exceed the amount that would have been determined had no impairment loss been

recognised for the asset or group of related assets in prior periods. A reversal of an

impairment loss is recognised immediately in profit or loss.

Leasing

Rentals payable under operating leases, including any lease incentives received, are

charged to the profit & loss on a straight line basis over the term of the relevant lease.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 1 (2018 - 1 ) .

4.	TANGIBLE FIXED ASSETS

Plant and

machinery

etc

£

COST

At 1 August 2018

12,659

Additions

1,300

At 31 July 2019

13,959

DEPRECIATION

At 1 August 2018

10,700

Charge for year

1,393

At 31 July 2019

12,093

NET BOOK VALUE

At 31 July 2019

1,866

At 31 July 2018

1,959

5.	FIXED ASSET INVESTMENTS

Unlisted

investments

£

COST

Additions

150,000

At 31 July 2019

150,000

NET BOOK VALUE

At 31 July 2019

150,000

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.7.19

31.7.18

£

£

Trade debtors

-

3,241

Other debtors

258,792

307,736

258,792

310,977

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.7.19

31.7.18

£

£

Trade creditors

-

247,500

Taxation and social security

13,916

30,251

Other creditors

29,687

32,754

43,603

310,505

8.	PROVISIONS FOR LIABILITIES

31.7.19

31.7.18

£

£

Deferred tax

Accelerated capital allowances

372

372

Tax losses carried forward

(17

)

-

355

372

Deferred

tax

£

Balance at 1 August 2018

372

Credit to Income Statement during year

(17

)

Balance at 31 July 2019

355

9.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended

31 July 2019 and 31 July 2018:

31.7.19

31.7.18

£

£

D Johnson

Balance outstanding at start of year

3,241

(84

)

Amounts advanced

67,982

92,222

Amounts repaid

(72,979

)

(88,897

)

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

(1,756

)

3,241

10.	RELATED PARTY DISCLOSURES

D Johnson

Director and shareholder.

During the period dividends were paid to D Johnson of £65,000 (2018: £34,500).

As at the balance sheet date the company owes D Johnson £1,756 (2018: D Johnson owes

the company £3,241). Interest of 2.5% (2018: 2.5%) per annum is charged on amounts

owed to the company.

Awkward Films Ltd

A company in which D Johnson is a director and shareholder.

As at the balance sheet date Password Productions Ltd is owed £NIL (2018: £15,000) by the

company. The amount was classified as a current debtor and was repayable on demand, no

interest was charged on the amount.

S Johnson

A close family member of D Johnson.

As at the balance sheet date Password Productions Ltd is owed £47,500 (2018: £47,500) by

S Johnson. The amount is classified as a current debtor and is repayable on demand.

Interest of 2.5% (2018: 2.5%) per annum is charged on amounts owed to the company.

11.	ULTIMATE CONTROLLING PARTY

The director, D Johnson, has ultimate control of the company, by virtue of his ownership of

the company's ordinary share capital.