Badiani Limited - Limited company accounts 20.1

REGISTERED NUMBER: 09303465 (England and Wales)

Report of the Directors and

Unaudited Financial Statements for the Year Ended 31 December 2020

for

BADIANI LIMITED

Page

Company Information

1

Report of the Directors

2

Income Statement

3

Statement of Financial Position

4

Notes to the Financial Statements

5

DIRECTORS:

C Ferrer Roqueta

M Franchi

REGISTERED OFFICE:

Palladium House

1-4 Argyll Street

London

Greater London

W1F 7LD

REGISTERED NUMBER:

09303465 (England and Wales)

ACCOUNTANTS:

ACT London Limited

48 Dover Street

Mayfair, London

W1S 4FF

The directors present their report with the financial statements of the company for the year ended 31 December 2020.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of Gelato makers and retail of ice creams and savoury foods.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2020 to the date of this report.

C Ferrer Roqueta

M Franchi

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

ON BEHALF OF THE BOARD:

M Franchi - Director

21 July 2021

REVENUE

1,417,785

1,041,411

Cost of sales

656,179

494,578

GROSS PROFIT

761,606

546,833

Administrative expenses

1,898,178

1,689,369

(1,136,572

)

(1,142,536

)

Other operating income

232,194

-

OPERATING LOSS

4

(904,378

)

(1,142,536

)

Interest payable and similar expenses

5,515

9,454

LOSS BEFORE TAXATION

(909,893

)

(1,151,990

)

Tax on loss

(8,682

)

-

LOSS FOR THE FINANCIAL YEAR

(901,211

)

(1,151,990

)

FIXED ASSETS

Intangible assets

5

5,594

-

Property, plant and equipment

6

848,108

1,036,111

853,702

1,036,111

CURRENT ASSETS

Inventories

7

46,742

48,032

Debtors

8

234,299

222,562

Cash at bank and in hand

24,129

283,131

305,170

553,725

CREDITORS

Amounts falling due within one year

9

756,007

340,347

NET CURRENT (LIABILITIES)/ASSETS

(450,837

)

213,378

TOTAL ASSETS LESS CURRENT LIABILITIES

402,865

1,249,489

CREDITORS

Amounts falling due after more than one year

10

82,828

53,241

NET ASSETS

320,037

1,196,248

CAPITAL AND RESERVES

Called up share capital

2,996,860

2,971,860

Retained earnings

(2,676,823

)

(1,775,612

)

320,037

1,196,248

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2020.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2020 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 in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Board of Directors and authorised for issue on 21 July 2021 and were signed on its behalf by:

M Franchi - Director

1.	STATUTORY INFORMATION

Badiani 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.

The presentation currency of the financial statements is the Pound Sterling (£).

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, excluding discounts, rebates, value added tax and other sales taxes.

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.

Computer software is being amortised evenly over its estimated useful life of four years.

Tangible fixed assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Long leasehold property - On straight line basis over the lease term

Plant and machinery - 25% straight line

Fixtures and fittings - 25% straight line

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cost includes cost of purchase of finished goods from related parties and other costs incurred in bringing the stock to its present location and condition.

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 statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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.

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

Foreign currencies

Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position 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.

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.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Going concern

The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 35 (2019 - 35 ) .

4.	OPERATING LOSS

The operating loss is stated after charging:

31.12.20

31.12.19

£

£

Depreciation - owned assets

233,365

172,779

Computer software amortisation

785

-

5.	INTANGIBLE FIXED ASSETS

Other

intangible

assets

£

COST

Additions

6,379

At 31 December 2020

6,379

AMORTISATION

Charge for year

785

At 31 December 2020

785

NET BOOK VALUE

At 31 December 2020

5,594

6.	PROPERTY, PLANT AND EQUIPMENT

Plant and

Land and

machinery

buildings

etc

Totals

£

£

£

COST

At 1 January 2020

541,177

716,393

1,257,570

Additions

7,950

56,768

64,718

Disposals

(19,356

)

-

(19,356

)

At 31 December 2020

529,771

773,161

1,302,932

DEPRECIATION

At 1 January 2020

51,482

169,977

221,459

Charge for year

51,768

181,597

233,365

At 31 December 2020

103,250

351,574

454,824

NET BOOK VALUE

At 31 December 2020

426,521

421,587

848,108

At 31 December 2019

489,695

546,416

1,036,111

7.	INVENTORIES

31.12.20

31.12.19

£

£

Stocks

46,742

48,032

8.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.20

31.12.19

£

£

Trade debtors

48,134

19,677

Rent deposit

119,299

121,500

Prepayments and accrued income

-

2,290

Prepayments

66,866

79,095

234,299

222,562

9.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.20

31.12.19

£

£

Bank loans and overdrafts

20,547

20,162

Trade creditors

332,051

195,586

Social security and other taxes

87,098

20,418

VAT

88,181

16,899

Other creditors

59,312

2,469

Accruals and deferred income

168,818

84,813

756,007

340,347

10.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.12.20

31.12.19

£

£

Bank loans - 1-2 years

32,412

22,863

Bank loans - 2-5 years

31,856

11,856

Bank loans more 5 yr by instal

18,560

18,522

82,828

53,241

Amounts falling due in more than five years:

Repayable by instalments

Bank loans more 5 yr by instal

18,560

18,522

11.	DEFERRED TAX

The company has taxable losses of £2,981,154 available to offset against future taxable profits. At the balance sheet date, the company has an unrecognised total deferred tax asset of £566,419 which relates primarily to losses. The asset will be recognised in the future only if suitable and sufficient taxable income were to arise within the company.