Totally Natural Solutions Ltd - Accounts to registrar (filleted) - small 18.2

TOTALLY NATURAL SOLUTIONS LTD

Financial Statements

for the Year Ended 31 July 2020

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

Director:

C Wilson

Registered office:

Unit 2, Eastlands Estate Maidstone Road

Paddock Wood

Tonbridge

Kent

TN12 6BU

Registered number:

08410460 (England and Wales)

Fixed assets

Intangible assets

4

74,063

61,511

Tangible assets

5

330,111

209,211

404,174

270,722

Current assets

Stocks

371,370

469,697

Debtors

6

434,307

384,766

Cash at bank and in hand

955,503

542,942

1,761,180

1,397,405

Creditors

Amounts falling due within one year

7

317,251

409,433

Net current assets

1,443,929

987,972

Total assets less current liabilities

1,848,103

1,258,694

Creditors

Amounts falling due after more than one year

8

-

(56,438

)

Provisions for liabilities

10

(47,008

)

(63,814

)

Net assets

1,801,095

1,138,442

Capital and reserves

Called up share capital

1,000

1,000

Retained earnings

1,800,095

1,137,442

1,801,095

1,138,442

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

The members have not required the company to obtain an audit of its financial statements for the year ended 31 July 2020 in accordance with Section 476 of the Companies Act 2006.

The director acknowledges his 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 director and authorised for issue on 7 January 2021 and were signed by:

C Wilson - Director

1.	Statutory information

Totally Natural Solutions 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.

The presentation currency of the financial statements is the Pound Sterling (£).

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.

Related party exemption

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.

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Revenue is recognised in the period to which it relates, based on order fulfilment.

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed 10 years.

The estimated useful lives range as follows:

Patents

-

straight line up to July 2035

Development expenditure

-

33% straight line

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight line method.

Depreciation is provided on the following basis:

Plant and machinery

-

3-10 years straight line

Fixtures and fittings

-

15% straight line

Office equipment

-

33% straight line

Leasehold property improvements

-

10% straight line

The assets residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of profit and loss.

Government grants

Government grants are recognised in the accounting period in which they relate to under the accruals concept.

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell.

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties and loans to related parties.

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.

Debtors

Short term debtors are measured at transaction price, less any impairment

Creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

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.

Research and development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight line basis over their useful economic lives, which range from 3 to 6 years.

If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Operating leases: the company as lessee

Rentals paid under operating leases are charged to the Income Statement on a straight line basis over the lease term.

Pensions: defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in the Statement of profit and loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.

Provisions are charged as an expense to the Income Statement in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Balance Sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.

When payments are eventually made, they are charged to the provision carried in the Balance Sheet.

Finance costs

Finance costs are charged to the Statement of profit and loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.

Going concern

The current economic conditions, together with the COVID-19 pandemic, present increased risks for all

businesses. In response to such conditions, the director has carefully considered these risks including an

assessment on uncertainty on future trading projection for a period of at least 12 months from the date of

signing the financial statements, and the extent to which they might affect the preparation of the financial

statements on a going concern basis.

After making enquiries, the director has a reasonable expectation that the company has adequate resources

to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements.

3.	Employees and directors

The average number of employees during the year was 15 (2019 - 13 ) .

4.	Intangible fixed assets

Patents and

licences

£

Cost

At 1 August 2019

70,187

Additions

17,092

At 31 July 2020

87,279

Amortisation

At 1 August 2019

8,676

Amortisation for year

4,540

At 31 July 2020

13,216

Net book value

At 31 July 2020

74,063

At 31 July 2019

61,511

5.	Tangible fixed assets

Fixtures

Improvements

Plant and

and

Office

to property

machinery

fittings

equipment

Totals

£

£

£

£

£

Cost

At 1 August 2019

36,392

181,361

23,972

53,498

295,223

Additions

55,444

125,959

7,126

4,178

192,707

Disposals

-

(10,563

)

-

-

(10,563

)

At 31 July 2020

91,836

296,757

31,098

57,676

477,367

Depreciation

At 1 August 2019

3,608

61,396

5,309

15,699

86,012

Charge for year

5,530

39,550

4,558

15,743

65,381

Eliminated on disposal

-

(4,137

)

-

-

(4,137

)

At 31 July 2020

9,138

96,809

9,867

31,442

147,256

Net book value

At 31 July 2020

82,698

199,948

21,231

26,234

330,111

At 31 July 2019

32,784

119,965

18,663

37,799

209,211

6.

Debtors

2020

2019

£

£

Amounts falling due within one year:

Trade debtors

384,642

301,881

Other debtors

41,165

74,385

425,807

376,266

2020

2019

£

£

Amounts falling due after more than one year:

Other debtors

8,500

8,500

Aggregate amounts

434,307

384,766

7.

Creditors: amounts falling due within one year

2020

2019

£

£

Other loans

56,438

107,694

Trade creditors

106,129

216,921

Tax

56,532

-

Social security and other taxes

16,869

8,497

Other creditors

592

2,383

Accruals and deferred income

80,691

73,938

317,251

409,433

8.

Creditors: amounts falling due after more than one year

2020

2019

£

£

Other loans - 1-2 years

-

56,438

9.	Leasing agreements

Minimum lease payments under non-cancellable operating leases fall due as follows:

2020

2019

£

£

Within one year

58,000

34,000

Between one and five years

232,000

8,500

In more than five years

14,500

-

304,500

42,500

10.	Provisions for liabilities

2020

2019

£

£

Deferred tax

47,008

28,814

Other provisions

-

35,000

47,008

63,814

Deferred

Other

tax

provisions

£

£

Balance at 1 August 2019

28,814

35,000

Provided during year

18,194

-

Credit to Income Statement during year

-

(35,000

)

Balance at 31 July 2020

47,008

-