Baketime Limited - Period Ending 2023-09-30
Baketime Limited - Period Ending 2023-09-30
Registration number:
Baketime Limited
for the Period from 1 July 2022 to 30 September 2023
Baketime Limited
Contents
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Company Information |
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Balance Sheet |
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Notes to the Unaudited Financial Statements |
Baketime Limited
Company Information
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Directors |
Mr Mohamed Zain Ismail Abdoola Mr Naushad Mahomed Ismail Abdoola Dr Dissanayake Hitihamu Mr Mohamed Asif Abdoola |
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Registered office |
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Accountants |
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Baketime Limited
(Registration number: 07300779)
Balance Sheet as at 30 September 2023
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Note |
2023 |
2022 |
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Fixed assets |
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Tangible assets |
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Current assets |
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Stocks |
- |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current liabilities |
( |
( |
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Total assets less current liabilities |
( |
( |
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Creditors: Amounts falling due after more than one year |
( |
( |
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Net liabilities |
( |
( |
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Capital and reserves |
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Called up share capital |
1,975 |
1,975 |
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Share premium reserve |
974,025 |
974,025 |
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Retained earnings |
(12,364,334) |
(11,251,593) |
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Shareholders' deficit |
(11,388,334) |
(10,275,593) |
Baketime Limited
(Registration number: 07300779)
Balance Sheet as at 30 September 2023 (continued)
For the financial period ending 30 September 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
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The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. |
These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Profit and Loss Account.
Approved and authorised by the
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Baketime Limited
Notes to the Unaudited Financial Statements for the Period from 1 July 2022 to 30 September 2023
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Accounting policies |
Summary of significant accounting policies and key accounting estimates
In preparing these financial statements the directors have had to make the following judgements which may have a material effect thereon:
- the directors have had to determine whether there are indicators of impairment of the company's tangible assets, taking into consideration the economic viability and expected future performance of the asset and, where it is a component of a large cash generating unit, the viability and expected performance of that unit.
- the directors have had to determine that preparing the accounts on a going concern basis is appropriate having regard to the company's ongoing performance and confirmed ongoing financial support from fellow group undertakings.
- tangible fixed assets are depreciated over their useful lives taking into account residual values. The directors have assessed the estimated Jives of the assets having regard to factors such as technological innovation, product life cycles and maintenance programmes, and have assessed residual values having considered issues such as future market conditions, the remaining life of the asset and projected disposal values.
Baketime Limited
Notes to the Unaudited Financial Statements for the Period from 1 July 2022 to 30 September 2023 (continued)
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Accounting policies (continued) |
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 IA "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.
The financial statements are prepared in Pound Sterling (GBP), which is the functional currency of the company, Monetary amounts in these financial statements are rounded to the nearest Pound.
Related party exemption
Going concern
During the year forecast increased sales orders failed to materialize, in part due to the effects of the ongoing Covid-19 pandemic which did not subside as expected during the first half of the year. Further lockdown periods had a detrimental effect on new product development and sales orders.
Subsequent to the year end the trading environment remains difficult, and future forecasts prepared by the directors indicate that the company is expected to continue to record losses in the short term whilst sales levels build up and the effect of sales enquiries and new product developments take full effect, and as the general economic outlook improves as the effects of the ongoing Covid pandemic begin to subside. This is expected to realise from. the second half onwards with the company targeting to make small profits by the end of the year. Thereafter the directors expect that targeted increased sales levels will be maintained into the 1st and 2nd quarters of 2022/23 and the company will report profits.
However, the directors acknowledge that the full impact of the pandemic on market recovery and hence on the company cannot be assessed with complete certainty at the current time, and in particular the effect on sales orders, sales patterns and price pressures, and these and anticipated short term losses will necessarily impact on cash flow moving forward. They acknowledge that additional funding and careful management of working capital are needed to ensure funds are available as required to finance activity.
The Lion Match Company (Pty) Limited, the parent of the company's immediate parent, LMC Baketime Holdings Limited, has provided confirmation that it will not seek repayment of existing loans for a period of at least one year from. the date of the signing of these financial statements. Other loan creditors have provided confirmation that they will not seek repayment of loans until such time as the company has sufficient funds available.
Baketime Limited
Notes to the Unaudited Financial Statements for the Period from 1 July 2022 to 30 September 2023 (continued)
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Accounting policies (continued) |
In addition, The Lion Match Company (Pty) Limited has confirmed that it will provide additional funding as and when required, this latter being subject to the approval of the South African Reserve Bank and their own financial resources. The directors acknowledge that such approval is not certain but note that historically it has been received as part of the business case put forward, and believe that actual and forecast improved performance will strengthen that case whilst reducing the requirement for such funding.
In addition, the company is continuing to seek financing for new plant and equipment and potential grant funding towards anticipated expansion, including accessing relevant Government assistance where available.
Accordingly, the directors acknowledge that the above may indicate a material uncertainty over the company's ability to continue as a going concern. However, at the time of signing these accounts they are satisfied that they have taken all possible steps to protect the company, and that sufficient resources will be available to enable it to meet its operational requirements as and when they fall due, and accordingly they continue to adopt the going concern basis of accounting in preparing the financial statements.
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.
Turnover
Turnover represents sale of goods at invoiced amounts net of local sales taxes. Sales of goods are recognised when the company has substantially transferred all the risks and rewards of ownership to the buyer, retains no effective control over the goods sold, can be reliably measured, and it is probable that the company will receive the consideration due under the transaction.
Research and development
Research and development expenditure on new product development and production processes is written off in the year in which it is incurred.
Government grants
Grants are classified as either a grant relating to revenue or a grant relating to assets. Grants relating to revenue are recognised in income on a systematic basis over the periods in which the entity recognises the related costs for which the grant is intended to compensate. Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset.
Baketime Limited
Notes to the Unaudited Financial Statements for the Period from 1 July 2022 to 30 September 2023 (continued)
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Accounting policies (continued) |
Finance costs
Finance costs are charged to the statement of comprehensive income over the terms of the loan using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Transaction costs are initially recognised as a reduction in the proceeds of the associated loan.
Foreign currency transactions and balances
Exchange differences arising from translation are taken into account in arriving at the operating result and are presented in 'finance income or costs' where they relate to borrowings and cash balances, and 'other operating income' in all other cases.
Tax
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 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.
Baketime Limited
Notes to the Unaudited Financial Statements for the Period from 1 July 2022 to 30 September 2023 (continued)
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Accounting policies (continued) |
Tangible assets
Tangible fixed assets are initially recognised at historic cost, which includes expenditure incurred in bringing the asset to its present location and condition.
They are assessed at each reporting date for evidence of impairment. Impairment losses are recognised for the amount by which the carrying amount exceeds recoverable amount. Assets that have been previously impaired are reviewed at each reporting date to assess whether there is any indication that previously recognised impairment losses may no longer exist or be reduced, and any reversal recognised in the accounts.
Depreciation
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.
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Asset class |
Depreciation method and rate |
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Plant and machinery |
25% on cost and 10% on cost |
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Fixtures and fittings |
25% on cost |
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Motor vehicles |
25% on cost |
Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.
- Raw materials and goods for resale are valued at purchase cost on a first in first out basis
- Work in progress and finished goods are valued at the cost of direct materials and labour
Net realisable value is based on estimated selling price less further costs expected to be incurred to completion and sale.
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.
Baketime Limited
Notes to the Unaudited Financial Statements for the Period from 1 July 2022 to 30 September 2023 (continued)
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Accounting policies (continued) |
Financial instruments
The company only enters into transactions in 'basic' financial instruments which result in the recognition of assets and liabilities; these include trade and other debtors and creditors, bank balances, loans from banks and other third parties, and loans to related parties,
Basic financial assets (other than those classified as payable within one year) are initially measured at cost, and are subsequently carried at cost or amortised cost using the effective interest method, less any impairment losses. Basic financial assets classified as receivable within one year are not amortised.
Basic financial liabilities (other than those classified as payable within one year) are initially recognised at present value of future cash flows and subsequently at amortised costs using the effective interest method. Basic financial liabilities classified as payable within one year are not amortised.
Financial assets and liabilities are offset, with the net amounts reported 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.
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Staff numbers |
The average number of persons employed by the company (including directors) during the period, was
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Loss before tax |
Arrived at after charging/(crediting)
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2023 |
2022 |
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Depreciation expense |
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Baketime Limited
Notes to the Unaudited Financial Statements for the Period from 1 July 2022 to 30 September 2023 (continued)
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Tangible assets |
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Fixtures and fittings |
Plant and machinery |
Motor vehicles |
Total |
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Cost or valuation |
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At 1 July 2022 |
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Additions |
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- |
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Disposals |
- |
- |
( |
( |
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At 30 September 2023 |
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Depreciation |
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At 1 July 2022 |
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Charge for the period |
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- |
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Eliminated on disposal |
- |
- |
( |
( |
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At 30 September 2023 |
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Carrying amount |
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At 30 September 2023 |
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- |
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At 30 June 2022 |
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- |
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Debtors |
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Current |
Note |
2023 |
2022 |
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Trade debtors |
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Amounts owed by related parties |
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Prepayments |
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Other debtors |
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Baketime Limited
Notes to the Unaudited Financial Statements for the Period from 1 July 2022 to 30 September 2023 (continued)
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Creditors |
Creditors: amounts falling due within one year
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Note |
2023 |
2022 |
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Due within one year |
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Trade creditors |
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Amounts owed to group undertakings and undertakings in which the company has a participating interest |
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Taxation and social security |
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Accruals and deferred income |
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Other creditors |
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Creditors: amounts falling due after more than one year
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2023 |
2022 |
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Due after one year |
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Other non-current financial liabilities |
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Related party transactions |
Included in amounts owed to group undertakings is a loan of £389,513 (2022: £316,149) owing to Imperial Property Development Limited, a company in which N. M. Ismail Abdoola and D. Hitihamu are directors in common.The loan is repayable on demand and interest free.
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Parent and ultimate parent undertaking |
The company's immediate parent is
The ultimate parent is