Supreme Knitwear Manufacturing Co. Ltd - Accounts to registrar - small 17.2

REGISTERED NUMBER: 01235497 (England and Wales)

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2016

FOR

SUPREME KNITWEAR MANUFACTURING COMPANY

LTD

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

K Din

B Din

N Din

Z Din

SECRETARY:

K Din

REGISTERED OFFICE:

Durham & Tees Valley Business Centre

Primrose Hill Business Park

Orde Wingate Way, Durham Road

Stockton on Tees

Tees Valley

TS19 0GA

REGISTERED NUMBER:

01235497 (England and Wales)

ACCOUNTANTS:

Ribchesters

Chartered Accountants

Finchale House

Belmont Business Park

Durham

DH1 1TW

FIXED ASSETS

Tangible assets

4

4,876

6,095

Investment property

5

3,080,000

3,080,000

3,084,876

3,086,095

CURRENT ASSETS

Stocks

446,435

868,425

Debtors

6

23,290

29,098

469,725

897,523

CREDITORS

Amounts falling due within one year

7

2,017,673

2,096,106

NET CURRENT LIABILITIES

(1,547,948

)

(1,198,583

)

TOTAL ASSETS LESS CURRENT LIABILITIES

1,536,928

1,887,512

CREDITORS

Amounts falling due after more than one year

8

(1,135,248

)

(1,391,940

)

PROVISIONS FOR LIABILITIES

(95,727

)

(92,203

)

NET ASSETS

305,953

403,369

CAPITAL AND RESERVES

Called up share capital

10

78,949

78,949

Other reserves

21,051

21,051

Retained earnings

205,953

303,369

SHAREHOLDERS' FUNDS

305,953

403,369

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2016.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2016 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 and delivered in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

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 on 26 September 2017 and were signed on its behalf by:

K Din - Director

1.	STATUTORY INFORMATION

Supreme Knitwear Manufacturing Company Ltd 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 the provisions of Section 1A "Small Entities" of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Turnover

Turnover represents property trading activities. Income is recognised when a property legally transfers to the

purchaser.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Fixtures and fittings

-

20% on reducing balance

Investment property

Completed investment property is shown at most recent valuation. Investment property under construction is

shown at cost. Any aggregate surplus or deficit arising from changes in market value is transferred to revaluation

reserve.

Stocks

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

moving items.

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.

Pensions

The company operates a defined contribution pension scheme. The assets of the scheme are held separately from

those of the company in an independently administered fund. There were no contributions during the year.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 13 (2015 - 13 ) .

4.	TANGIBLE FIXED ASSETS

Plant and

machinery

etc

£

COST

At 1 January 2016

and 31 December 2016

18,572

DEPRECIATION

At 1 January 2016

12,477

Charge for year

1,219

At 31 December 2016

13,696

NET BOOK VALUE

At 31 December 2016

4,876

At 31 December 2015

6,095

5.	INVESTMENT PROPERTY

Total

£

FAIR VALUE

At 1 January 2016

and 31 December 2016

3,080,000

NET BOOK VALUE

At 31 December 2016

3,080,000

At 31 December 2015

3,080,000

Cost or valuation at 31 December 2016 is represented by:

£

Valuation in 2016

3,080,000

If Investment property had not been revalued it would have been included at the following historical cost:

2016

2015

£

£

Cost

4,052,249

4,052,249

Investment property was valued on an open market basis on 31 May 2012 by Storeys Edward Symmons Limited

.

In the opinion of the directors, those valuations remain appropriate at 31 December 2016.

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2016

2015

£

£

Trade debtors

18,012

28,038

Other debtors

5,278

1,060

23,290

29,098

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2016

2015

£

£

Bank loans and overdrafts

84,618

88,515

Trade creditors

3,697

8,240

Taxation and social security

16,757

40,512

Other creditors

1,912,601

1,958,839

2,017,673

2,096,106

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2016

2015

£

£

Bank loans

1,135,248

1,391,940

Amounts falling due in more than five years:

Repayable by instalments

Bank loans more than 5 years

by instalments

1,135,248

1,391,940

1,135,248

1,391,940

9.	SECURED DEBTS

The following secured debts are included within creditors:

2016

2015

£

£

Bank overdrafts

4,143

8,040

Bank loans

1,215,723

1,472,415

1,219,866

1,480,455

Included within bank loans is a bank loan of £1,053,604 secured by way of:

- A first priority Legal Charge over the company's Investment Property and other properties included within

Trading Stock.

- An unlimited Inter Company Composite Guarantee by and between the company and Supreme Property

Developments Limited, a company under common control.

- A Debenture over the assets of the company and those of Supreme Property Developments Limited.

The remaining bank loans are secured over the Trading Stock properties to which they relate.

10.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2016

2015

value:

£

£

78,949

Ordinary

£1

78,949

78,949

11.	CONTINGENT LIABILITIES

The company had contingent liabilities in respect of a cross-guarantee with the bank borrowings of Supreme

Property Developments Limited, a company under common control. At 31 December 2016 the amount of bank

borrowing in Supreme Property Developments Limited, and potentially subject to this cross-guarantee, was

£47,707 (2015: £238,413).

The company received grant finance totalling £1,569,741 during the years 2005 to 2007 and a further £244,786

in 2010, in respect of the construction of certain investment properties. The terms of the grant provide for full or

part repayment if specific defined events occur in the 20 years following the award of the grant. No defined

repayment events have occurred to date.

12.	RELATED PARTY DISCLOSURES

The controlling directors of this company are also the controlling directors and shareholders of Supreme

Property Developments Limited, and the Trustees of The Din Self Administered Pension Scheme.

The Din Self Administered Pension Scheme has a 50% interest in The Din Self Administered Pension Scheme

and Riaz Hameed Property Partnership.

During the year £127,500 was charged by Supreme Property Developments Limited for property management

services.

During the year the company sold a property to Supreme Property Developments Limited at cost price of

£225,000.

Included within other creditors is £1,816,002 (2015: £1,843,306) due to Supreme Property Developments

Limited, £63,884 (2015: £63,210) due to The Din Self Administered Pension Scheme and £1,249 (2015:£1,322)

due to The Din Self Administered Pension Scheme and Riaz Hameed Property Partnership.

During the year N Din, a director, made an interest free loan to the company. At 31 December 2016 the balance

outstanding was £4 (2015: Nil).

13.	FIRST YEAR ADOPTION

These financial statements for year ended 31 December 2016 are the first financial statements prepared under

Financial Reporting Standard "FRS 102". The date of transition to FRS 102 is 1 January 2015.

The transition to FRS 102 has required some compulsory changes in accounting policies to those used

previously.

The nature of these changes and their impact on opening equity and profit for the comparative period are

explained below and detailed on the reconciliation on pages 14 to 16 of these financial statements.

Investment Property

Under FRS 102 the revaluation of investment properties is recognised through the profit and loss account rather

than through the statement of recognised gains and losses. As the revaluation of the investment property has

previously been included in the revaluation reserve, FRS 102 requires a transfer to retained earnings. This has

resulted in an increase of £97,965 in retained earnings, at 1 January 2015.

Distributable reserves

The adoption of FRS 102 results in total profit and loss reserves which include both distributable and

non-distributable amounts. The distributable amounts included in profit and loss reserves at 31 December 2016

are £107,988.