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Registered number: 08840113
GREEN VALLEY CAPITAL LIMITED
UNAUDITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 5 APRIL 2021
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GREEN VALLEY CAPITAL LIMITED
REGISTERED NUMBER:08840113
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BALANCE SHEET
AS AT 5 APRIL 2021
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Debtors: amounts falling due within one year
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Current asset investments
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Creditors: amounts falling due within one year
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Provisions for liabilities
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GREEN VALLEY CAPITAL LIMITED
REGISTERED NUMBER:08840113
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BALANCE SHEET (CONTINUED)
AS AT 5 APRIL 2021
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 year 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 financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
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 profit and loss account 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:
The notes on pages 3 to 9 form part of these financial statements.
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GREEN VALLEY CAPITAL LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 5 APRIL 2021
Green Valley Capital Limited is a private company, limited by shares, that is incorporated in England and Wales. Its registered office is located at Portwall Place, Portwall Lane, Bristol, BS1 6NA and its registered number is 08840113.
2.Accounting policies
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Basis of preparation of financial statements
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These financial statements are prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” as applied in the context of the small entities regime.
The following principal accounting policies have been applied:
The company is reliant upon its director.
The ongoing COVID-19 pandemic has not had a significant impact on the company but the director continues to monitor the situation. The director has given assurance that he will continue to support the company and therefore the financial statements have been prepared on a going concern basis.
Income arising from investments is comprised of interest receiveable and dividends received. Interest receivable is recognised in the period it is incurred and dividends are recognised when received.
Investments in unlisted company shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the profit and loss account for the year. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.
Investments in listed company shares are remeasured to market value (quoted market price) at each balance sheet date. Gains and losses on remeasurement are recognised in the profit and loss account for the year.
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Cash and cash equivalents
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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.
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GREEN VALLEY CAPITAL LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 5 APRIL 2021
2.Accounting policies (continued)
(i) Financial assets and liabilities
All financial assets and liabilities are initially measured at transaction price (including transaction
costs), except for those financial assets classified as at fair value through profit or loss, which are
initially measured at fair value (which is normally the transaction price excluding transaction costs),
unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing
transaction, the financial asset or financial liability is measured at the present value of the future
payments discounted at a market rate of interest for a similar debt instrument.
Financial assets and liabilities are only offset in the statement of financial position when, and only
when there exists a legally enforceable right to set off the recognised amounts and the Company
intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Debt instruments which meet the conditions of being ‘basic’ financial instruments as defined in FRS
102.11.9 are subsequently measured at amortised cost using the effective interest method.
Debt instruments that have no stated interest rate (and do not constitute financing transaction) and
are classified as payable or receivable within one year are initially measured at an undiscounted
amount of the cash or other consideration expected to be paid or received, net of impairment.
Other debt instruments not meeting conditions of being ‘basic’ financial instruments are measured at
fair value through profit or loss.
Financial assets are derecognised when and only when (a) the contractual rights to the cash flows
from the financial asset expire or are settled, (b) the Company transfers to another party substantially
all of the risks and rewards of ownership of the financial asset, or (c) the Company, despite having
retained some, but not all, significant risks and rewards of ownership, has transferred control of the
asset to another party.
Financial liabilities are derecognised only when the obligation specified in the contract is discharged,
cancelled or expires.
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or income as appropriate. The company does not currently apply hedge accounting for interest rate and foreign exchange derivatives.
(ii) Fair value measurement
The best evidence of fair value is a quoted market price for an identical asset in an active market. When quoted market prices are unavailable, the price of a recent transaction for an identical asset provides evidence of fair value as long as there has not been a significant change in economic circumstances or a significant lapse of time since the transaction took place. If the market is not active and recent transactions of an identical asset on their own are not a good estimate of fair value, the fair value is estimated by using a valuation technique.
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GREEN VALLEY CAPITAL LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 5 APRIL 2021
2.Accounting policies (continued)
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Foreign currency translation
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Functional and presentation currency
The company's functional and presentational currency is GBP.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the profit and loss account within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
All borrowing costs are recognised in profit or loss in the year in which they are incurred.
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Provisions for liabilities
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Provisions are made where an event has taken place that gives the company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the balance sheet.
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GREEN VALLEY CAPITAL LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 5 APRIL 2021
2.Accounting policies (continued)
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Current and deferred taxation
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The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
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The average monthly number of employees, including directors, during the year was 1 (2020 - 1).
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GREEN VALLEY CAPITAL LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 5 APRIL 2021
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Listed and unlisted investments
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The historical cost of the investments at 5 April 2021 was £9,024,708 (2020 - £7,108,736).
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Corporation tax repayable
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GREEN VALLEY CAPITAL LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 5 APRIL 2021
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Current asset investments
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The historical cost of the listed investments at 5 April 2021 is £4,066,155 (2020 - restated £6,233,343).
Included within current asset investments at 5 April 2021 is an amount of £287,139 (2020 - £(200,122)) in respect of derivatives. This reflects the fair value at the year end in line with the accounting policy. The company enters into swaps and forward contracts.
All swaps and forward contracts expired post year end.
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Creditors: Amounts falling due within one year
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Accruals and deferred income
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A bank loan and overdrafts of £3,932,507 (2020 - £4,064,763) are secured by a fixed charge over all cash and securities held by the company.
Some of the director's loan account may be payable after five years however this amount cannot be calculated reliably. The director is repaid a minimum of £450,000 per year but as additional payments are regularly made, this amount is considered repayable on demand.
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Included in the profit and loss account at 5 April 2021 is a balance of £2,678,884 (2020 - £Nil) which is not distributable for dividend purposes.
The company has commitments in respect of various investments in private equity funds. The maximum
commitment is $2,250,000 (2020 - $2,000,000), of which $847,375 (2020 - $632,396) had been
invested by year end.
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GREEN VALLEY CAPITAL LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 5 APRIL 2021
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Related party transactions
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During the year, the company repaid the director an amount of £450,000 (2020 - £780,000). At 5 April 2021 the director was owed £5,683,841 (2020 - £6,133,841) by Green Valley Capital Limited which is included in creditors due within one year. The loan is interest free and repayable on demand.
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