Operating Risks Limited - Period Ending 2020-04-30
Operating Risks Limited - Period Ending 2020-04-30
Registration number:
Operating Risks Limited
for the Year Ended 30 April 2020
Operating Risks Limited
Contents
Company Information |
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Balance Sheet |
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Notes to the Unaudited Financial Statements |
Operating Risks Limited
Company Information
Director |
Mr P A Kinsey |
Registered office |
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Operating Risks Limited
(Registration number: 07614899)
Balance Sheet as at 30 April 2020
Note |
2020 |
2019 |
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Current assets |
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Stocks |
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- |
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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 assets |
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Capital and reserves |
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Called up and fully paid share capital |
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Profit and loss account |
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- |
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Total equity |
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For the financial year ending 30 April 2020 the Company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Director's responsibilities:
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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.
Approved and authorised by the
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Operating Risks Limited
Notes to the Unaudited Financial Statements for the Year Ended 30 April 2020
General information |
The Company is a private company limited by share capital incorporated in England and Wales. Details of the registered office are shown on page 1.
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.
Basis of preparation
These financial statements have been prepared on a going concern basis, using the historical cost convention and in accordance with FRS 102 Section 1A 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.
Going concern
The director has prepared the financial statements on the going concern basis of accounting taking into account the Covid-19 (coronavirus) and the impact this has had on the performance of the business. The director took action to protect the finances of the company as a result of public houses and nightclubs closing in late March 2020 as a result of Covid 19. The company has utilised the Job Retention Scheme Grant throughout the period from late March 2020 with only public houses staff returning to work in July 2020 as the nightclubs remained closed. The overall impact of the Covid-19 outbreak has seen a reduction in sales throughout late March 2020 to date, but due to the above steps costs and cashflow have been managed leaving the company in a postive cash position as lockdown conditions are eased. As a result the director concludes that the going concern basis remains appropriate.
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 value added tax, returns, rebates and discounts and is recognised when the amount of revenue can be reliably measured, and it is probable that future economic benefits will flow to the entity.
Government grants
Government grants in relation to revenue expenditure that has already been incurred for the purpose of giving immediate financial support to the entity with no future related costs shall be recognised in income in the period in which they become receivable.
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.
Current income tax is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date.
Operating Risks Limited
Notes to the Unaudited Financial Statements for the Year Ended 30 April 2020
2 |
Accounting policies (continued) |
Deferred tax is recognised on timing differences between taxable profits and profits reported in the financial statements. Deferred tax is recognised on all timing differences at the reporting date and is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
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.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Share capital
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.
Dividends
Dividend distribution to the Company’s shareholders is recognised in the financial statements in the reporting period in which the dividends are paid.
Operating Risks Limited
Notes to the Unaudited Financial Statements for the Year Ended 30 April 2020
2 |
Accounting policies (continued) |
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.
Financial instruments
Basic financial instruments are recognised at amortised cost, except for investments in non-convertible preference and non-puttable ordinary and preference shares, which are measured at fair value provided that this can be measured reliably. Derivative financial instruments are initially recorded at cost and thereafter at fair value with changes recognised in profit or loss.
Staff numbers |
The average number of persons employed by the company (including the director) in the year, was
Stocks |
2020 |
2019 |
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Finished goods and goods for resale |
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- |
Debtors |
2020 |
2019 |
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Trade debtors |
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- |
Other debtors |
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- |
Prepayments |
109,237 |
- |
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- |
Operating Risks Limited
Notes to the Unaudited Financial Statements for the Year Ended 30 April 2020
Creditors |
2020 |
2019 |
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Due within one year |
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Trade creditors |
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- |
Taxation and social security |
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- |
Other creditors |
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- |
Accrued expenses |
4,500 |
- |
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- |
Financial commitments, guarantees and contingencies |
Amounts not provided for in the balance sheet
The total amount of financial commitments not included in the balance sheet is £
The operating leases paid by the company are for equipment held at specific venues. Some of these commitments have been personally guaranteed by Mr PA Kinsey.
Related party transactions |
Transactions with directors |
2020 |
At 1 May 2019 |
Advances to directors |
Repayments by director |
At 30 April 2020 |
Mr P A Kinsey |
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Loan Account |
- |
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( |
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Other transactions with directors |
Interest has been charged this loan at a rate of 2.5% during the year.