LIBERTY_HOUSE_LIMITED - Accounts

The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

Liberty House Limited is a private company limited by shares incorporated in England and Wales. The registered office is 40 Grosvenor Place, 2nd Floor, London, SW1X 7GG, United Kingdom.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in US Dollars ($), which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest US Dollar ($).

The financial statements have been prepared on the historical cost convention. The principal accounting policies adopted are set out below.

The directors have considered the effect of the Covid-19 outbreak. As a result of the commodities in which the company provide being a key commodity globally, the company has continued to trade, however the outbreak did lead to an initial reduction in transactions before recovering to normal levels, The directors consider it unlikely that a prolonged outbreak will cause significant damage to the businesstrue

In the prior year the banking facilities were closed, therefore the Company is supported by a company under common control which operates a group treasury function. The company under common control owes amounts to the Company, from time to time the company under common control uses these amounts to settle items on behalf of the Company. The company under common control has agreed to provide support for at least 12 months from the date of approval of the financial statements. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

Turnover from commodities trading is recognised when the risks and the rewards of ownership of commodities have transferred to the customer in accordance with International Commercial Terms 2010 (Incoterms 2010) and represents the invoiced value of the commodities sold net of VAT. Generally, contract terms are on CFR ("cost and freight") basis, whereby risk and rewards pass when goods are loaded onto the ship.

Freight turnover represents the amounts earned from the freight agency services in relation to shipping activities to connected companies. Revenue is recognised based upon the freight invoice date.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Basic financial assets, which include debtors, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Financial assets are assessed for indicators of impairment at each reporting end date.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including creditors, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

The number of persons (including directors) employed by the company during the year was Nil (2018: Nil).

As the income statement has been omitted from the filing copy of the financial statements the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

During the year, the company earned freight revenue of $11,242 (2018: $268,464) from companies under the common control of S K Gupta. At the year end, the company was owed $524,081 (2018: $771,912) from these companies.

During the year, the company made purchases from a related company of $5,621 (2018: $121,946). At the year end, the company owed $327,366 (2018: $321,745) to this company.

At the year end, the company owed S K Gupta, the director, an amount of $343,073 (2018: $343,073).

The directors have considered the effect of the Covid-19 outbreak, that has been spreading throughout the world in 2020, on the company’s activities. The company has remained operational throughout the pandemic and the directors took measures quickly to ensure the company was able to adapt. The directors do not foresee any major modification or termination of any client or employee contracts due to Covid-19. They consider the main impact to be a short term reduction in revenues.