Vantona Home Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 08499351 (England and Wales)

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2020

FOR

VANTONA HOME LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

Mr B D Soper

Mr H Bashir

REGISTERED OFFICE:

Grane Road Mill

Grane Road

Haslingden

Rossendale

Lancashire

BB4 5ET

REGISTERED NUMBER:

08499351 (England and Wales)

AUDITORS:

Whitehead & Howarth

Statutory Auditors

327 Clifton Drive South

Lytham St Annes

Lancashire

FY8 1HN

BANKERS:

Santander UK plc

Bridle Road

Bootle

Merseyside

L30 4GB

FIXED ASSETS

Intangible assets

4

466,748

497,627

Tangible assets

5

-

-

466,748

497,627

CURRENT ASSETS

Stocks

6

1,155,776

593,052

Debtors

7

462,382

2,111,086

Cash at bank and in hand

32,998

11,541

1,651,156

2,715,679

CREDITORS

Amounts falling due within one year

8

2,562,316

3,332,586

NET CURRENT LIABILITIES

(911,160

)

(616,907

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(444,412

)

(119,280

)

CAPITAL AND RESERVES

Called up share capital

100

100

Retained earnings

10

(444,512

)

(119,380

)

SHAREHOLDERS' FUNDS

(444,412

)

(119,280

)

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 Income and Retained Earnings has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 3 September 2020 and were signed on its behalf by:

Mr H Bashir - Director

1.	STATUTORY INFORMATION

Vantona Home 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.

Significant judgements and estimates

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets liabilities as at the balance sheet date and the amounts reported in the profit and loss accounting during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. Accruals, depreciation useful life of intangible assets and stock contain the most significant estimates of the amounts recognised in the accounts.

Turnover

The turnover shown in the profit and loss account represents the value of all goods sold and services provided during the year, less returns received, at selling price exclusive of Value Added Tax. Sales are recognised at the point at which the company has fulfilled its contractual obligations and the risks and rewards attaching to the product and service have been transfered to the customer.

Goodwill

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.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Intellectual property are being amortised evenly over their estimated useful life of twenty five years.

Amortisation

Amortisation is provided on intangible fixed assets so as to write off the cost, less any estimated residual value, over their expected useful economic life. Intellectual property of design rights is amortised over 25 years.

Tangible fixed assets

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

Plant and machinery

-

20% on cost

Tangible fixed assets are initially recorded at historic cost and stated in the balance sheet at their net book value, being the amount of capital expenditure less accumulated depreciation.

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 for the year comprises current and deferred tax. Tax is recognised in the Statement of Income and Retained Earnings, 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.

Hire purchase and leasing commitments

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

Going concern

The company made a loss of £325,132 for the period ended 30 June 2020 and had net liabilities of £444,412. The company is dependent, in the absence of other funding on the continued financial support of it's parent companies. They have confirmed their commitment to provide the necessary support and the directors consider it appropriate to prepare financial statements on a going concern basis, based on an increase customer base in the UK and new clients with active marketing campaigns whilst focusing on higher business margins. The directors have considered the potential implications of COVID-19 and the measures taken to control it's impact on the business when assessing the entity's ability to continue as a going concern. The consideration extended to updating forecasts and sensitivities, taking into account the risk factors identified and the different possible outcomes and assessment of its plans to mitigate events or conditions including the availability of finance if needed.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 5 (2019 - 6 ) .

4.	INTANGIBLE FIXED ASSETS

Intellectual

Goodwill

property

Totals

£

£

£

COST

At 1 July 2019

and 30 June 2020

45,000

659,475

704,475

AMORTISATION

At 1 July 2019

24,375

182,473

206,848

Amortisation for year

4,500

26,379

30,879

At 30 June 2020

28,875

208,852

237,727

NET BOOK VALUE

At 30 June 2020

16,125

450,623

466,748

At 30 June 2019

20,625

477,002

497,627

5.	TANGIBLE FIXED ASSETS

Plant and

machinery

£

COST

At 1 July 2019

and 30 June 2020

111,994

DEPRECIATION

At 1 July 2019

and 30 June 2020

111,994

NET BOOK VALUE

At 30 June 2020

-

At 30 June 2019

-

6.

STOCKS

30.6.20

30.6.19

as restated

£

£

Stocks

1,155,776

593,052

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

30.6.20

30.6.19

as restated

£

£

Trade debtors

113,736

1,633,731

Amounts owed by group undertakings

-

2,062

Other debtors

331,198

457,845

Deferred tax asset

17,448

17,448

462,382

2,111,086

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

30.6.20

30.6.19

as restated

£

£

Trade creditors

142,842

74,773

Amounts owed to group undertakings

2,400,641

3,047,793

Tax

625

625

Social security and other taxes

2,282

4,928

VAT

-

35,185

Other creditors

11,957

21,091

Invoice discounting creditor

1,519

138,543

Accrued expenses

2,450

9,648

2,562,316

3,332,586

9.	SECURED DEBTS

The bank registered a charge dated 23rd November 2017 with a fixed and floating charge over all the property with One Stop Business Capital Limited.

The bank registered a charge dated 5th December 2017 with a fixed and floating charge over all the property with Secure Trust Bank plc.

The bank registered a charge dated 31st July 2018 with a fixed and floating charge over all the property with Bibby Financial Services Ltd.

10.

RESERVES

Retained

earnings

£

At 1 July 2019

(71,925

)

Prior year adjustment

(47,455

)

(119,380

)

Deficit for the year

(325,132

)

At 30 June 2020

(444,512

)

11.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

In forming our opinion on the financial statements, which is not modified, we have considered the adequacy of the

disclosure made in Note 2 to the financial statements concerning the company's ability to continue as a going concern. The company's income has also been negatively impacted post year end due to Covid-19. These conditions indicate the existence of material uncertainties which may cast doubt over the company's ability to continue as a going concern. The financial statements do not include adjustments that would result if the company was unable to continue as a going concern as the directors consider that the company is a going concern.

Mark Croasdale Bsc (Hons) F.C.C.A. (Senior Statutory Auditor)

for and on behalf of Whitehead & Howarth

12.	RELATED PARTY DISCLOSURES

JCCO 406 Limited

Parent company of Vantona Home Ltd

At 30th June 2020 an amount of £nil (2019 - £350,000) was due to JCCO 406 Limited.

GTM (Europe) Limited

Parent company of JCCO 406 Ltd.

At 30th June 2020 an amount of £1,710,935 (2019 - £1,758,223) was due to GTM (Europe) Ltd.

Gul Ahmed Textile Mills Limited

Ultimate parent company.

At 30th June 2020 an amount of £367,912 (2019 - £939,570) was due to Gul Ahmed Textile Mills Ltd.

Vantona Home Retail Limited

Associate of GTM (Europe) Ltd.

At 30th June 2020 no amount was due to or from Vantona Home Retail Ltd.

Sky Home Corporation

Subsidiary of GTM (Europe) Ltd.

At 30th June 2020 £321,796 was due to Sky Home Corporation.

Group accounts are being prepared by Gul Ahmed Textile Mills Ltd which can be obtained from the registered office: Plot number 82, Main National Highway, Landhi, Karachi.

13.	ULTIMATE CONTROLLING PARTY

At the year end date JCCO 406 Limited is the immediate parent company as it owns the entire share capital of Vantona Home Limited. JCCO 406 is owned 100% by GTM (Europe) Limited which is ultimately owned by Gul Ahmed Textile Mills Ltd.