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

REGISTERED NUMBER: 07640835 (England and Wales)

Audited Financial Statements for the Year Ended 31 October 2020

for

Home Discount Limited

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

Mr Suresh Handa

Mrs Rakhi Handa

Mr Rajesh Handa

Mrs Mandeep Kaur Handa

REGISTERED OFFICE:

Home Discount

Dawson Lane

Bradford

BD4 6JD

REGISTERED NUMBER:

07640835 (England and Wales)

AUDITORS:

Accumen Business Consultancy Limited

Coventry University Technology Park

Puma Way

Coventry

CV1 2TT

FIXED ASSETS

Tangible assets

4

95,503

104,798

CURRENT ASSETS

Stocks

5

-

988,000

Debtors

6

181,960

68,996

Cash at bank and in hand

5,042,929

734,489

5,224,889

1,791,485

CREDITORS

Amounts falling due within one year

7

(3,540,527

)

(891,124

)

NET CURRENT ASSETS

1,684,362

900,361

TOTAL ASSETS LESS CURRENT LIABILITIES

1,779,865

1,005,159

CREDITORS

Amounts falling due after more than one year

8

(12,886

)

(326,271

)

PROVISIONS FOR LIABILITIES

9

(14,594

)

(15,290

)

NET ASSETS

1,752,385

663,598

CAPITAL AND RESERVES

Called up share capital

10

100

100

Retained earnings

1,752,285

663,498

SHAREHOLDERS' FUNDS

1,752,385

663,598

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 30 July 2021 and were signed on its behalf by:

Mr Suresh Handa - Director

1.	STATUTORY INFORMATION

Home Discount 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.

Critical accounting judgements and key sources of estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Turnover

Turnover comprises the invoiced value of goods and services supplied by the company, net of Value Added Tax and trade discounts.

Tangible fixed assets

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Leasehold

Over the duration of the lease (5 years)

Motor Vehicles

25% Reducing balance

Fixtures & Fittings

25% Reducing balance

Computer Equipment

25% Reducing balance

Stocks

Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks.

Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12

‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to

the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when

there is a legally 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.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the

effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual

arrangements entered into. An equity instrument is any contract that evidences a residual interest in the

assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference

shares that are classified as debt, are initially recognised at transaction price unless the arrangement

constitutes a financing transaction, where the debt instrument is measured at the present value of the future

payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are

not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of

business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year

or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs.

Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion

of the company.

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.

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.

Presentation currency

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 £.

Leasing and hire purchase contracts

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful lives. Assets acquired under hire purchase contracts are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in the creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to profit and loss account as incurred.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 34 (2019 - 50 ) .

4.	TANGIBLE FIXED ASSETS

Fixtures

Short

and

Motor

Computer

leasehold

fittings

vehicles

equipment

Totals

£

£

£

£

£

COST

At 1 November 2019

13,960

176,355

9,000

52,614

251,929

Additions

-

6,100

-

16,822

22,922

Disposals

-

-

(9,000

)

-

(9,000

)

At 31 October 2020

13,960

182,455

-

69,436

265,851

DEPRECIATION

At 1 November 2019

13,960

90,100

6,865

36,206

147,131

Charge for year

-

21,774

534

8,308

30,616

Eliminated on disposal

-

-

(7,399

)

-

(7,399

)

At 31 October 2020

13,960

111,874

-

44,514

170,348

NET BOOK VALUE

At 31 October 2020

-

70,581

-

24,922

95,503

At 31 October 2019

-

86,255

2,135

16,408

104,798

5.

STOCKS

31.10.20

31.10.19

£

£

Finished goods

-

988,000

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.10.20

31.10.19

£

£

Trade debtors

83,939

68,996

Prepayments and accrued income

98,021

-

181,960

68,996

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.10.20

31.10.19

£

£

Hire purchase contracts

14,964

14,964

Trade creditors

219,641

192,691

Amounts owed to group undertakings

2,501,135

362,819

Tax

387,122

65,647

Social security and other taxes

17,680

16,932

VAT

226,155

186,669

Other Creditors

-

70

Directors' current accounts

142,013

28,532

Accruals and deferred income

31,817

22,800

3,540,527

891,124

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.10.20

31.10.19

£

£

Hire purchase contracts

12,886

26,271

Other creditors

-

300,000

12,886

326,271

9.	PROVISIONS FOR LIABILITIES

31.10.20

31.10.19

£

£

Deferred tax

14,594

15,290

Deferred

tax

£

Balance at 1 November 2019

15,290

Provided during year

(696

)

Balance at 31 October 2020

14,594

10.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

31.10.20

31.10.19

value:

£

£

100

Ordinary

£1

100

100

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

The Report of the Auditors was unqualified.

Tej Saran (Senior Statutory Auditor)

for and on behalf of Accumen Business Consultancy Limited

12.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to directors subsisted during the years ended 31 October 2020 and 31 October 2019:

31.10.20

31.10.19

£

£

Mr Suresh Handa and Mr Rajesh Handa

Balance outstanding at start of year

28,532

248,293

Amounts advanced

113,481

-

Amounts repaid

-

(219,761

)

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

142,013

28,532

Included within Creditors is a loan from the directors of £142,013

13.	RELATED PARTY DISCLOSURES

During the year ended 31 October 2020, the company had the following related party transactions:

Purchases from Lassic Limited - £7,990,727

Sales to Lassic Limited - £988,435

Management charge to Lassic Limited - £320,000

The company charged provision of staff, utilities, shipping and courier costs to Lassic Limited.

At the year-end, Home Discounts Limited owed £2,456,137 to Lassic Limited.

Messers Suresh and Rajesh Handa were also the directors of Lassic Limited as of 31 October 2020.

14.	ULTIMATE CONTROLLING PARTY

The company's ultimate controlling party are Suresh Handa and Rajesh Handa by virtue of his ownership of 100% of the issued share capital in the company..