Password Productions Ltd. - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 05727791 (England and Wales)

Report of the Directors and

Unaudited Financial Statements for the Year Ended 31 July 2021

for

Password Productions Ltd.

Page

Company Information

1

Report of the Directors

2

Chartered Certified Accountants' Report

3

Balance Sheet

4

Notes to the Financial Statements

6

DIRECTORS:

R J Eady

J B Mackay

SECRETARY:

S H Pennington

REGISTERED OFFICE:

16 Dalmore Road

London

SE21 8HB

REGISTERED NUMBER:

05727791 (England and Wales)

ACCOUNTANTS:

BAILHACHE LINTON LLP

Bourne House

475 Godstone Road

Whyteleafe

Surrey

CR3 0BL

The directors present their report with the financial statements of the company for the year ended 31 July 2021.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of producer of theatre, comedy and spoken work events.

DIVIDENDS

No dividends will be distributed for the year ended 31 July 2021.

DIRECTORS

R J Eady has held office during the whole of the period from 1 August 2020 to the date of this report.

Other changes in directors holding office are as follows:

D Johnson - deceased 13 December 2020

J B Mackay was appointed as a director after 31 July 2021 but prior to the date of this report.

ON BEHALF OF THE BOARD:

J B Mackay - Director

9 March 2022

The following reproduces the text of the report prepared for the directors in respect of the company's annual unaudited financial statements. In accordance with the Companies Act 2006, the company is only required to file a Balance Sheet. Readers are cautioned that the Income Statement and certain other primary statements and the Report of the Directors are not required to be filed with the Registrar of Companies.

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Password Productions Ltd for the year ended 31 July 2021, which comprise the statement of income and retained earnings, statement of financial position and the related notes from the company's accounting records and from information and explanations you have given us.

As a practising member firm of the Association of Chartered Certified Accountants, we are subject to its ethical and other professional requirements which are detailed at:

www.accaglobal.com/en/member/professional-standards/rules-standards/acca-rulebook.html.

Our work has been undertaken in accordance with the requirements of the Association of Chartered Certified Accountants as detailed at:

www.accaglobal.com/content/dam/ACCA_Global/Technical/fact/technical-factsheet-163.pdf.

BAILHACHE LINTON LLP

Bourne House

475 Godstone Road

Whyteleafe

Surrey

CR3 0BL

9 March 2022

FIXED ASSETS

Tangible assets

4

2,568

3,495

Investments

5

-

120,000

2,568

123,495

CURRENT ASSETS

Debtors

6

357,328

228,844

Cash at bank and in hand

7

472,690

649,844

830,018

878,688

CREDITORS

Amounts falling due within one year

8

87,769

177,947

NET CURRENT ASSETS

742,249

700,741

TOTAL ASSETS LESS CURRENT LIABILITIES

744,817

824,236

PROVISIONS FOR LIABILITIES

10

488

664

NET ASSETS

744,329

823,572

CAPITAL AND RESERVES

Called up share capital

2

2

Retained earnings

744,327

823,570

SHAREHOLDERS' FUNDS

744,329

823,572

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 July 2021.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 July 2021 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their 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 Board of Directors and authorised for issue on 9 March 2022 and were signed on its behalf by:

J B Mackay - Director

1.	STATUTORY INFORMATION

Password Productions 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.

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.

Turnover

Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services rendered, stated net of discounts and of Value Added Tax.

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the normal amount received is recognised as interest income.

The company recognised income as a producer of theatre, comedy and spoken work events on a right to consideration basis.

Box office revenue from theatrical productions is recognised by reference to the date the performance took place.

Tangible fixed assets

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

Depreciation is recognised at the following rate to write off the cost of the asset less their residual values over the assets useful lives:

Office Equipment etc - 33% on cost and 20% on cost

On disposal, the difference between the net disposal proceeds and the carrying amount of the item sold is recognised in profit or loss.

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 receivable and payable, loans from banks and other third parties, loans to related parties and other third parties and investments in non-puttable ordinary shares.

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

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and the best estimate, which is an approximation, of the amount that the company would receive for the asset if it were to be sold at the reporting date.

Financial assets and liabilities are offset and the net amount reported in the statement of financial position when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

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.

Fixed asset investments

Investments in theatrical productions consist of advances to productions which are repayable out of the profit of a production. The investments are initially measured at fair value (normally transaction price). In general fair values subsequent to the initial investment cannot be measure reliability, therefore costs in theatrical productions are subsequently measured at cost less impairment. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in the profit and loss.

Impairment of fixed 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 of any asset or group of related assets, which is the higher of value in use and the fair value less cost to sell, is estimated and compared with its 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 or loss.

Inventories are also assessed for impairment at each reporting date. The carrying amount of each item of inventory, or group of similar items, is compared with its selling price less costs to complete and sell. If an item of inventory or group of similar items is impaired, its carrying amount is reduced to selling price less costs to complete and sell, and an impairment loss is recognised immediately in profit or loss.

If an impairment loss is subsequently reversed, the carrying amount of the asset or group of elated assets is increased to the revised estimate of its recoverable amount, but not to exceed the amount that would have been determined had no impairment loss been recognised for the asset or group of related assets in prior periods. A reversal of an impairment loss is recognised immediately in profit or loss.

Debtors and creditors

Debtors:

Short term debtors, classified as receivable in one year, are measured at transaction price, less any impairment.

Creditors:

Short term trade creditors, classified as payable in one year, are measured at the transaction price.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 1 (2020 - 1 ) .

4.	TANGIBLE FIXED ASSETS

Plant and

machinery

etc

£

COST

At 1 August 2020

and 31 July 2021

16,738

DEPRECIATION

At 1 August 2020

13,243

Charge for year

927

At 31 July 2021

14,170

NET BOOK VALUE

At 31 July 2021

2,568

At 31 July 2020

3,495

5.	FIXED ASSET INVESTMENTS

Unlisted

investments

£

COST

At 1 August 2020

120,000

Disposals

(120,000

)

At 31 July 2021

-

NET BOOK VALUE

At 31 July 2021

-

At 31 July 2020

120,000

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.7.21

31.7.20

£

£

Other debtors

357,328

228,844

7.	CASH AT BANK AND IN HAND

Cash at bank and in hand are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings under current liabilities.

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.7.21

31.7.20

£

£

Taxation and social security

-

65,115

Other creditors

87,769

112,832

87,769

177,947

9.	LEASING AGREEMENTS

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

31.7.21

31.7.20

£

£

Within one year

-

10,800

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

10.	PROVISIONS FOR LIABILITIES

31.7.21

31.7.20

£

£

Deferred tax

Accelerated capital allowances

488

664

Deferred

tax

£

Balance at 1 August 2020

664

Credit to Income Statement during year

(176

)

Balance at 31 July 2021

488

11.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 31 July 2021 and 31 July 2020:

31.7.21

31.7.20

£

£

D Johnson

Balance outstanding at start of year

-

-

Amounts advanced

-

149,241

Amounts repaid

-

(149,241

)

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

-

-

Interest is calculated at the average interest rate of £NIL (2020: 2.38%) on amounts owing to the company when they reach or exceed £10K Amounts owing / owed to the company by the directors are classified as current debtors / creditors and are repayable on demand.

12.	RELATED PARTY DISCLOSURES

D Johnson

Director

During the period dividends were paid to D Johnson of £NIL (2020: £45,000).

As at the balance sheet date the Estate of D Johnson owes the company £NIL (2020: the company owes D Johnson £1,890).

Awkward Films Ltd

A company in which D Johnson (deceased) a person with significant control, also had significant control. D Johnson ceased to be a person with significant control in both companies following his death on the 13/12/2020.

During the year the company repaid Password Productions Ltd £13,500 (2020: £NIL) As at the balance sheet date Password Productions Ltd is owed £NIL (RESTATED 2020: £13,500) by the company.

The amount was classified as a current debtor and was repayable on demand, no interest was charged.

A close family member of D Johnson.

As at the balance sheet date Password Productions Ltd is owed £48,531 (2020: £47,500) by a close family member of D Johnson. The amount is classified as a current debtor and is repayable on demand. Interest of 2.17% (2020: 2.42%) per annum is charged on amounts owed to the company (calculated on the average interest method).

A person with significant control and influence over the company.

At the date of signing the report a person with significant control and influence over the company owes the company £158,753 (2020: £131,265). The amount is classified as a current debtor and is repayable on demand, no interest is charged on the amount.

13.	ULTIMATE CONTROLLING PARTY

At the balance sheet the shares owned by the director, D Johnson (deceased), are held by the executor of D Johnson's estate pending probate.