Chipstead_Golf_Club_Limit - Accounts

The directors of the company have 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.

Chipstead Golf Club Limited is a private company limited by shares incorporated in England and Wales. The registered office is Monarch House, 7-9 Stafford Road, Wallington, Surrey, SM6 9AN.

These financial statements have been prepared in accordance with section 1A of 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 financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest pound.

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

At thetrue year end, the company had net liabilities of £831,097, including £1,200,980 owing to Majestic Securities Limited, the parent company. In the absence of any formal loan agreement, the directors consider the parent company debt to be at call and it has been treated as falling due within one year. Majestic Securities Limited has confirmed it will not seek repayment of this balance for a period of at least twelve months from the date of the approval of these financial statements and that it will provide additional financial support to the company during the same period should it be required. Consequently, the directors consider it appropriate to prepare the financial statements on the going concern basis, albeit the loan technically remains at call.

The directors have considered the impact of the COVID-19 pandemic, and the measures taken to contain it, on the company.  Government lockdowns have had an impact on turnover due to the temporary closure of the golf club and clubhouse.  The directors recognise the uncertain timescale for a full recovery due to the impact of COVID – 19. Golf club memberships have increased substantially since early 2020 and bookings for corporate and social events have been steady with a strong order book for June 2021 onwards giving the directors confidence that the company can break even for the year 2021/22. The directors have taken the decision to cease outsourcing catering services and the management team has a strong plan to diversify events, hospitality and catering in order increase sales. At the time of approving the financial statements, the directors are confident that the company has adequate resources to successfully continue to operate for at least the next 12 months from the date of approval of the financial statements and for the foreseeable future beyond.  Consequently, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT.

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. The directors have taken the decision to write off the remaining value of goodwill paid on acquisition of the business.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Stock is stated at the lower of cost and estimated selling price.

Cash at bank and in hand are basic financial assets and include cash in hand and deposits held at call with banks.

The company only has basic financial instruments measured at amortised cost. The company has no financial instruments that are classified as ‘other’ or basic instruments measured at fair value.

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.

Rentals payable under operating leases, including any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease.

The directors have taken the decision to write off the remaining value of goodwill paid on acquisition of the business.

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.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

The franchise agreement was terminated in September 2020 and the function, catering and bar services are now being operated in-house by the company.

The company is a wholly owned subsidiary of Majestic Securities Limited and has taken advantage of the exemption conferred by FRS 102 not to disclose transactions with Majestic Securities Limited or other wholly owned subsidiaries within the group.

Included within other debtors at the year end is a balance of £86,878 (2019: £41,108) due from The Dosanjh Foundation, a company in which P S Dosanjh and A S Dosanjh are directors.

Included within other debtors at the year end is a balance of £170,634 (2019: £187,465) due from Chipstead Clubhouse Limited, a company under common control.

The company is a wholly owned subsidiary of Majestic Securities Limited, a company registered in England and Wales. The company registered office is 7-9 Stafford Road, Wallington, Surrey, SM6 9AN. The largest and smallest group in which the results of the company are consolidated is that headed by Majestic Securities Limited. The consolidated accounts of this company are available to the public and may be obtained from Companies House, Crown Way, Cardiff, CF14 3UZ.