Medina Capital Dairy Company Limited - Accounts to registrar (filleted) - small 18.2

MEDINA CAPITAL DAIRY COMPANY LIMITED

T/A

HILLSBOROUGH DAIRY

REPORT OF THE DIRECTORS AND

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31ST MARCH 2020

Page

Company Information

1

Report of the Directors

2

Balance Sheet

3

Notes to the Financial Statements

5

Accountants' Report

9

DIRECTORS:

A Hussain

K Singh

REGISTERED OFFICE:

42-44 Leppings Lane

Hillsborough

Sheffield

S6 1ST

REGISTERED NUMBER:

06935889 (England and Wales)

ACCOUNTANTS:

Haines Watts

First Floor, Woburn Court

2 Railton Road

Woburn Rd Ind Est

Kempston

Bedfordshire

MK42 7PN

The directors present their report with the financial statements of the company for the year ended 31st March 2020.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the sales of dairy produce and other fresh goods.

DIRECTORS

The directors shown below have held office during the whole of the period from 1st April 2019 to the date of this report.

A Hussain

K Singh

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

ON BEHALF OF THE BOARD:

K Singh - Director

21st October 2020

FIXED ASSETS

Tangible assets

4

724,266

734,712

CURRENT ASSETS

Stocks

30,565

44,750

Debtors

5

718,563

709,960

Cash at bank and in hand

171,105

340,812

920,233

1,095,522

CREDITORS

Amounts falling due within one year

6

574,948

777,861

NET CURRENT ASSETS

345,285

317,661

TOTAL ASSETS LESS CURRENT LIABILITIES

1,069,551

1,052,373

CREDITORS

Amounts falling due after more than one year

7

(135,363

)

(164,054

)

PROVISIONS FOR LIABILITIES

(14,523

)

(15,363

)

NET ASSETS

919,665

872,956

CAPITAL AND RESERVES

Called up share capital

100

100

Retained earnings

919,565

872,856

SHAREHOLDERS' FUNDS

919,665

872,956

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31st March 2020.

The members have not required the company to obtain an audit of its financial statements for the year ended 31st March 2020 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 Statement of Comprehensive Income has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 21st October 2020 and were signed on its behalf by:

K Singh - Director

1.	STATUTORY INFORMATION

Medina Capital Dairy Company Limited 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.

The financial statements have been prepared on a going concern basis. The Directors have reviewed and considered relevant information, including the annual budget and future cash flows in making their assessment. In particular, in response to the COVID-19 pandemic, the Directors have tested their cash flow analysis to take into account the impact on their business of possible scenarios brought on by the impact of COVID-19, alongside the measures that they can take to mitigate the impact. Based on these assessments, given the measures that could be undertaken to mitigate the current adverse conditions, and the current resources available, the Directors have concluded that they can continue to adopt the going concern basis in preparing the annual report and accounts.

The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £1.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Turnover

Turnover is measured at the fair value of the consideration received or receivable net of VAT and trade discounts. The policies adopted for the recognition of turnover are as follows:

Turnover from the sale of dairy products is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be measured reliably. This is usually on dispatch of the goods.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property

-

2% on cost

Plant and machinery

-

25% on reducing balance

Fixtures and fittings

-

25% on reducing balance

Motor vehicles

-

25% on reducing balance

Computer equipment

-

33% on cost

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition. Cost is calculated using the first-in, first-out formula. Provision is made for damaged, obsolete and slow-moving stock where appropriate.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and loss account, 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.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 48 (2019 - 50 ) .

4.	TANGIBLE FIXED ASSETS

Fixtures

Freehold

Plant and

and

property

machinery

fittings

£

£

£

COST

At 1st April 2019

678,731

10,852

1,428

Additions

-

-

-

At 31st March 2020

678,731

10,852

1,428

DEPRECIATION

At 1st April 2019

37,035

9,482

1,300

Charge for year

3,841

342

32

At 31st March 2020

40,876

9,824

1,332

NET BOOK VALUE

At 31st March 2020

637,855

1,028

96

At 31st March 2019

641,696

1,370

128

Motor

Computer

vehicles

equipment

Totals

£

£

£

COST

At 1st April 2019

266,138

18,227

975,376

Additions

18,000

-

18,000

At 31st March 2020

284,138

18,227

993,376

DEPRECIATION

At 1st April 2019

174,765

18,082

240,664

Charge for year

24,086

145

28,446

At 31st March 2020

198,851

18,227

269,110

NET BOOK VALUE

At 31st March 2020

85,287

-

724,266

At 31st March 2019

91,373

145

734,712

Included in cost of land and buildings is freehold land of £ 486,721 (2019 - £ 486,721 ) which is not depreciated.

5.

DEBTORS

31/3/20

31/3/19

£

£

Amounts falling due within one year:

Trade debtors

663,633

658,235

Doubtful debt provision

(9,676

)

(12,453

)

Other debtors

10,473

7,146

VAT

36,931

28,820

Prepayments

10,466

21,476

711,827

703,224

Amounts falling due after more than one year:

Franchisee bond

6,736

6,736

Aggregate amounts

718,563

709,960

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31/3/20

31/3/19

£

£

Bank loans and overdrafts

39,047

39,047

Trade creditors

490,466

571,957

Amounts owed to group undertakings

-

50,000

Corporation tax

12,696

31,830

Social security and other taxes

15,361

18,966

Other creditors

14,720

14,392

Directors' current accounts

-

50,000

Accrued expenses

2,658

1,669

574,948

777,861

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31/3/20

31/3/19

£

£

Bank loans - 1-2 years

39,047

39,047

Bank loans - 2-5 years

96,316

117,142

Bank loans more 5 yr by instal

-

7,865

135,363

164,054

Amounts falling due in more than five years:

Repayable by instalments

Bank loans more 5 yr by instal

-

7,865

8.	SECURED DEBTS

The following secured debts are included within creditors:

31/3/20

31/3/19

£

£

Bank loans

174,410

203,101

The company's bank borrowings are secured on the company's freehold premises in Leppings Lane in Hillsborough, a personal guarantee of £100,000 from K Singh, and a cross guarantee between The Capital Dairy Company Limited and Medina Capital Dairy Company Limited.

9.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

As disclosed in Note 9, K Singh, has provided a personal guarantee of £100,000 to the company's bankers.

10.	ULTIMATE CONTROLLING PARTY

The company is controlled by its directors A Hussain and K Singh by virtue of his majority shareholding in Ash Properties Limited.

The following reproduces the text of the report prepared for the directors in respect of the company's annual unaudited financial statements. In accordance with the Companies Act 2006, the company is only required to file a Balance Sheet. Readers are cautioned that the Statement of Comprehensive Income and certain other primary statements and the Report of the Directors are not required to be filed with the Registrar of Companies.

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Medina Capital Dairy Company Limited for the year ended 31st March 2020 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and the related notes from the company's accounting records and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed within the ICAEW's regulations and guidance at http://www.icaew.com/en/membership/regulations-standards-and-guidance.

This report is made solely to the Board of Directors of Medina Capital Dairy Company Limited, as a body, in accordance with our terms of engagement. Our work has been undertaken solely to prepare for your approval the financial statements of Medina Capital Dairy Company Limited and state those matters that we have agreed to state to the Board of Directors of Medina Capital Dairy Company Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Medina Capital Dairy Company Limited and its Board of Directors, as a body, for our work or for this report.

It is your duty to ensure that Medina Capital Dairy Company Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Medina Capital Dairy Company Limited. You consider that Medina Capital Dairy Company Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the financial statements of Medina Capital Dairy Company 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 financial statements.

Haines Watts

First Floor, Woburn Court

2 Railton Road

Woburn Rd Ind Est

Kempston

Bedfordshire

MK42 7PN

21st October 2020