ACCOUNTS - Final Accounts preparation

GOOD EARTH CORPORATION LTD - Company Information

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Registered number: 11988757

GOOD EARTH CORPORATION LTD

UNAUDITED

FINANCIAL STATEMENTS

INFORMATION FOR FILING WITH THE REGISTRAR

FOR THE PERIOD ENDED 31 MAY 2020

GOOD EARTH CORPORATION LTD

REGISTERED NUMBER: 11988757

BALANCE SHEET

AS AT 31 MAY 2020

		2020
Note		£

Fixed assets
Intangible assets	4		2,230
			2,230
Current assets
Stocks		36,090
Debtors: amounts falling due within one year	6	368
Cash at bank and in hand	7	1,401
		37,859
Creditors: amounts falling due within one year	8	(4,490)
Net current assets			33,369
Total assets less current liabilities			35,599
Creditors: amounts falling due after more than one year	9		(66,458)

Net (liabilities)/assets			(30,859)

Capital and reserves
Called up share capital			1
Profit and loss account			(30,860)
			(30,859)

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GOOD EARTH CORPORATION LTD

REGISTERED NUMBER: 11988757

BALANCE SHEET (CONTINUED)

AS AT 31 MAY 2020

The director considers that the Company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the Company to obtain an audit for the period in question in accordance with section 476 of the Companies Act 2006.

The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The Company's financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The Company has opted not to file the statement of income and retained earnings in accordance with provisions applicable to companies subject to the small companies' regime.

The financial statements were approved and authorised for issue by the board and were signed on its behalf by:

Sunil Poduval

Director

Date: 6 July 2021

The notes on pages 3 to 6 form part of these financial statements.

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GOOD EARTH CORPORATION LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 MAY 2020

1.	General information

Good Earth Corporation Limited ('the company') is a limited liability company incorporated and domiciled in the United Kingdom.
The address of its registered office is:
71-75 Shelton Street
Covent Garden
London
WC2H 9JQ
The financial statements are prepared in Sterling (£) which is the functional currency of the company. The company was incorporated on the 10 May 2019 and commenced trading on 1 July 2019. The financial statements are for the period of Incoporation to 31 May 2020.

2.Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies.

The following principal accounting policies have been applied:

2.2

Going concern

The financial statements are prepared on a going concern basis due to the continued financial support of the director, which is for a minimum period of twelve months from the date of approval of these financial statements.

2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

∙the Company has transferred the significant risks and rewards of ownership to the buyer;

∙the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

∙the amount of revenue can be measured reliably;

∙it is probable that the Company will receive the consideration due under the transaction; and

∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.

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GOOD EARTH CORPORATION LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 MAY 2020

2.Accounting policies (continued)

2.4

Interest income

Interest income is recognised in profit or loss using the effective interest method.

2.5

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

2.6

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

2.7

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

2.8

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

2.9

Creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

2.10

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

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GOOD EARTH CORPORATION LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 MAY 2020

Employees

The average monthly number of employees, including the director, during the period was as follows:

			2020
			No.

		Directors	2

4.	Intangible assets

		Computer software
		£
	Cost
	Additions	2,230
	At 31 May 2020	2,230

	Net book value
	At 31 May 2020	2,230

5.	Stocks
		2020
		£

	Finished goods and goods for resale	36,090
		36,090

Debtors

					2020
					£


	Trade debtors	282
	Other debtors	86
		368

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GOOD EARTH CORPORATION LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 MAY 2020

6.Debtors (continued)

7.	Cash and cash equivalents
		2020
		£

	Cash at bank and in hand	1,401
		1,401

8.	Creditors: Amounts falling due within one year
		2020
		£

	Trade creditors	1,989
	Accruals and deferred income	2,501
		4,490

9.	Creditors: Amounts falling due after more than one year
		2020
		£

	Loan from director	66,458
		66,458

The loan is unsecured and bears no interest.

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