SKS Ventures Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 08463173

SKS VENTURES LIMITED

UNAUDITED FINANCIAL STATEMENTS

FOR THE PERIOD 27 MARCH 2019 TO 31 MARCH 2020

Page

Balance Sheet

1

Notes to the Financial Statements

3

FIXED ASSETS

Intangible assets

4

358,283

411,605

Tangible assets

5

221,381

317,296

579,664

728,901

CURRENT ASSETS

Stocks

15,020

15,033

Debtors

6

169,015

45,192

Cash at bank

3

27,431

184,038

87,656

CREDITORS

Amounts falling due within one year

7

556,021

699,360

NET CURRENT LIABILITIES

(371,983

)

(611,704

)

TOTAL ASSETS LESS CURRENT LIABILITIES

207,681

117,197

CREDITORS

Amounts falling due after more than one year

8

419,481

274,097

NET LIABILITIES

(211,800

)

(156,900

)

CAPITAL AND RESERVES

Called up share capital

100

100

Profit and loss account

(211,900

)

(157,000

)

SHAREHOLDERS' FUNDS

(211,800

)

(156,900

)

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

The members have not required the company to obtain an audit of its financial statements for the period ended 31 March 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 Profit and Loss Account has not been delivered.

The financial statements were approved by the director and authorised for issue on 1 December 2020 and were signed by:

S Shah - Director

1.	STATUTORY INFORMATION

SKS Ventures Limited is a private company, limited by shares, registered in England and Wales. The company's registered office is 170 Kingsway, Gatley, Cheadle, Cheshire, SK8 4NT.

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with the provisions of Section 1A "Small Entities" of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. There were no material departures from that standard. The financial statements have been prepared under the historical cost convention.

Going concern

The financial statements have been prepared on a going concern basis. The validity of this is dependant on continued support from the director. If support was to be withdrawn, adjustments may have to be made to reduce the value of the assets to their recoverable amount and to provide for any further liabilities that may arise.

Furthermore, this is also dependant on the continued support from debtors, creditors and the government for issues arising during the Covid 19 pandemic.

The director considers however, that it is still appropriate to prepare the financial statements on a going concern basis despite this uncertainty.

Judgements

The company considers on an annual basis the judgements that are made by management when applying its significant accounting policies that would have the most significant effect on amounts that are recognised in the financial statements.

The director considers there are no such significant judgements.

Turnover

Turnover represents net sales of goods, excluding value added tax, and is recognised at the point of sale.

Goodwill

Goodwill is initially measured at cost. After initial recognition, goodwill is measured at cost less any accumulated amortisation and any accumulated impairment losses.

Goodwill is amortised evenly over its estimated useful life of ten years.

Tangible fixed assets

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

Land and buildings

-

10% on cost

Plant and machinery etc

-

33.3% on cost and 20% on cost

Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses.

Impairment of non-financial 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 which is the higher of value in use and the fair value less cost to sell, is estimated and compared with the 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 and loss.

Government grants

Government grants relating to revenue expenditure are recognised in income on a systematic basis over the periods in which the entity recognises the related costs for which the grant is intended to compensate. Grants that become receivable as compensation for expenses or losses already incurred or 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 it becomes receivable.

Grants related to the purchase of assets are recognised on a systematic basis over the useful economic life of the underlying assets that was acquired with the grant.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

Taxation represents the sum of tax currently payable and deferred tax. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

The charge for taxation takes into account taxation deferred as a result of timing differences between the treatment of certain items for taxation and accounting purposes. In general, deferred taxation is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. However, deferred tax assets are recognised only to the extent that the director considers that it is more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted. Deferred taxation is measured on a non-discounted basis at the tax rates that are expected to apply in the periods in which the timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date.

With the exception of changes arising on the initial recognition of a business combination, the tax expense is presented either in profit or loss, other comprehensive income or statement of changes in equity depending on the transaction that resulted in the tax expense.

Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors.

Operating lease commitments

Rentals paid under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease.

Pension costs

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

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

Debt instruments like loans and other accounts receivable and payable are initially measured at present value of the future payments and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and trade creditors, are measured, initially and subsequently, at the undiscounted amount of cash or other consideration expected to be paid or received.

Financial assets measured at cost and amortised cost are assessed at the end of each reporting period for evidence of impairment and if found, an impairment loss is recognised in profit or loss.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged,cancelled or expires.

Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. Bank overdrafts, when applicable, are shown within borrowings in current liabilities

Provisions

Provisions are recognised when the company has a legal or constructive obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle the obligation and the amount of the obligation can be reliably estimated. Provisions are recognised at the best estimate of the amount required to settle the obligation at the reporting date.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the period was 42 (2019 - 47 ) .

4.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 27 March 2019

and 31 March 2020

533,214

AMORTISATION

At 27 March 2019

121,609

Charge for period

53,322

At 31 March 2020

174,931

NET BOOK VALUE

At 31 March 2020

358,283

At 26 March 2019

411,605

Goodwill, being the amount paid in connection with the acquisition of a business in 2014, is being amortised evenly over its estimated useful life of ten years.

5.	TANGIBLE FIXED ASSETS

Plant and

Land and

machinery

buildings

etc

Totals

£

£

£

COST

At 27 March 2019

362,704

471,389

834,093

Additions

-

14,139

14,139

At 31 March 2020

362,704

485,528

848,232

DEPRECIATION

At 27 March 2019

147,529

369,268

516,797

Charge for period

36,270

73,784

110,054

At 31 March 2020

183,799

443,052

626,851

NET BOOK VALUE

At 31 March 2020

178,905

42,476

221,381

At 26 March 2019

215,175

102,121

317,296

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Other debtors

169,015

45,192

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Bank loans and overdrafts

56,949

182,716

Trade creditors

60,713

33,306

Taxation and social security

35,974

24,480

Other creditors

402,385

458,858

556,021

699,360

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2020

2019

£

£

Bank loans

244,481

274,097

Other creditors

175,000

-

419,481

274,097

9.	LEASING AGREEMENTS

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

2020

2019

£

£

Within one year

130,519

166,196

Between one and five years

514,135

687,426

644,654

853,622

10.	SECURED DEBTS

The following secured debts are included within creditors:

2020

2019

£

£

Bank loans

282,261

456,813

The above debts are secured by a charge over the company's assets.

11.	RELATED PARTY DISCLOSURES

The balance due to the director at the balance sheet date was £212,407 (2019: £146,176). The amount is included in creditors and is interest free, unsecured and repayable on demand. The director has agreed not to seek repayment of £175,000 within 12 months of the year end.

12.	POST BALANCE SHEET EVENTS

Since 31 March 2020 the UK's economic outlook has deteriorated as a consequence of the Covid-19 pandemic and the measures taken by the government to control the spread of the virus. At this point it is not possible to estimate the financial effect of this ongoing event.

After the year end, the Didsbury store was closed in May 2020 which was unrelated to the Covid-19 pandemic. This was a result of shop location and its proximity to another store owned by the director. At present the director cannot reliably gauge the financial effect of this event.