Gayways Limited Small abridged accounts

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Statement of Consent to Prepare Abridged Financial Statements

All of the members of Gayways Limited have consented to the preparation of the statement of income and retained earnings and the abridged statement of financial position for the year ending 31 May 2017 in accordance with Section 444(2A) of the Companies Act 2006.

COMPANY REGISTRATION NUMBER: 06588030

Gayways Limited

Unaudited Abridged Financial Statements

31 May 2017

CAS

Chartered accountant

151 Askew Road

London

W12 9AU

Gayways Limited

Abridged Financial Statements

Year ended 31 May 2017

Contents	Page

Director's report	1

Chartered accountant's report to the director on the preparation of the unaudited statutory abridged financial statements	2

Statement of income and retained earnings	3

Abridged statement of financial position	4

Notes to the abridged financial statements	5

The following pages do not form part of the abridged financial statements

Detailed abridged income statement	10

Notes to the detailed abridged income statement	11

Gayways Limited

Director's Report

Year ended 31 May 2017

The director presents his report and the unaudited abridged financial statements of the company for the year ended 31 May 2017 .

Director

The director who served the company during the year was as follows:

Mr S Parmar

Small company provisions

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

This report was approved by the board of directors on 27 February 2018 and signed on behalf of the board by:

Mr S Parmar
Director

Registered office:

213-217 Watford Road

Harrow

Middlesex

HA1 3UA

Gayways Limited

Chartered Accountant's Report to the Director on the Preparation of the Unaudited Statutory Abridged Financial Statements of Gayways Limited

Year ended 31 May 2017

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the abridged financial statements of Gayways Limited for the year ended 31 May 2017, which comprise the statement of income and retained earnings, abridged statement of financial position and the related notes from the company's accounting records and from information and explanations you have given us. As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at www.icaew.com/en/membership/regulations-standards-and-guidance. This report is made solely to the director of Gayways Limited in accordance with the terms of our engagement letter dated 1 February 2018. Our work has been undertaken solely to prepare for your approval the abridged financial statements of Gayways Limited and state those matters that we have agreed to state you in this report in accordance with ICAEW Technical Release 07/16 AAF as detailed at www.icaew.com/compilation. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Gayways Limited and its director for our work or for this report.

It is your duty to ensure that Gayways Limited has kept adequate accounting records and to prepare statutory abridged financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Gayways Limited. You consider that Gayways Limited is exempt from the statutory audit requirement for the year. We have not been instructed to carry out an audit or a review of the abridged financial statements of Gayways Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory abridged financial statements.

CAS Chartered accountant

151 Askew Road London W12 9AU

27 February 2018

Gayways Limited

Statement of Income and Retained Earnings

Year ended 31 May 2017

	2017	2016
Note	£	£
Gross profit	301,142	250,526

Distribution costs	10,195	6,688
Administrative expenses	188,942	161,666
	---------	---------
Operating profit	102,005	82,172

Other interest receivable and similar income		126	302
		---------	---------
Profit before taxation	5	102,131	82,474

Tax on profit	21,019	17,481
	---------	--------
Profit for the financial year and total comprehensive income	81,112	64,993
	---------	--------

Dividends paid and payable	( 83,750)	( 45,000)

Retained earnings at the start of the year	57,654	37,661
	--------	--------
Retained earnings at the end of the year	55,016	57,654
	--------	--------

All the activities of the company are from continuing operations.

Gayways Limited

Abridged Statement of Financial Position

31 May 2017

	2017		2016
Note	£	£	£

Fixed assets

Tangible assets	6		16,155	20,242

Current assets

Stocks	127,800	138,500
Debtors	4,800	2,044
Cash at bank and in hand	223,877	152,252
	---------	---------
	356,477	292,796

Creditors: amounts falling due within one year	317,613		255,381
	---------		---------
Net current assets		38,864	37,415
		--------	--------
Total assets less current liabilities		55,019	57,657
		--------	--------

Capital and reserves

Called up share capital	3	3
Profit and loss account	55,016	57,654
	--------	--------
Members funds	55,019	57,657
	--------	--------

These abridged financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

For the year ending 31 May 2017 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's responsibilities:

- The members have not required the company to obtain an audit of its abridged financial statements for the year in question in accordance with section 476 ;

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

These abridged financial statements were approved by the board of directors and authorised for issue on 27 February 2018 , and are signed on behalf of the board by:

Mr S Parmar
Director

Company registration number: 06588030

Gayways Limited

Notes to the Abridged Financial Statements

Year ended 31 May 2017

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 213-217 Watford Road, Harrow, Middlesex, HA1 3UA.

2. Statement of compliance

These abridged financial statements have been prepared in compliance with the provisions of FRS 102 Section 1A, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The abridged financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

The abridged financial statements are prepared in sterling, which is the functional currency of the entity.

Transition to FRS 102

The entity transitioned from previous UK GAAP to FRS 102 as at 1 June 2015. Details of how FRS 102 has affected the reported financial position and financial performance is given in note 9.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

Income tax

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

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:

Plant & Machinery	-	15% reducing balance
Motor Vehicles	-	25% reducing balance
Equipment	-	25% reducing balance

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

Financial instruments

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the entity after deducting all of its financial liabilities. Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability. Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity.

4. Staff costs

The average number of persons employed by the company during the year, including the director, amounted to 5 (2016: 5).

5. Profit before taxation

Profit before taxation is stated after charging:

	2017	2016
	£	£
Depreciation of tangible assets	4,087	5,221
	-------	-------

6. Tangible assets

	£
Cost
At 1 June 2016 and 31 May 2017	59,808
	--------
Depreciation
At 1 June 2016	39,566
Charge for the year	4,087
	--------
At 31 May 2017	43,653
	--------
Carrying amount
At 31 May 2017	16,155
	--------
At 31 May 2016	20,242
	--------

7. Director's advances, credits and guarantees

At the year end the company owed Mr S R Parmar £161,972 (2016: £135,937).

8. Related party transactions

The company was under the control of Mr S R Parmar throughout the current and previous year. Mr S R Parmar is the managing director and majority shareholder. During the year company paid Mr S R Parmar £5,000, Mr R Parmar £35,000 & Mr A Parmar £43,750 (2016: Mr S R Parmar £15,000, Mr R Parmar £15,000 & Mr A Parmar £15,000)in dividends.

9. Transition to FRS 102

These are the first abridged financial statements that comply with FRS 102. The company transitioned to FRS 102 on 1 June 2015.

No transitional adjustments were required in equity or profit or loss for the year.

Gayways Limited

Management Information

Year ended 31 May 2017

The following pages do not form part of the abridged financial statements.

Gayways Limited

Detailed Abridged Income Statement

Year ended 31 May 2017

	2017	2016
	£	£
Turnover	740,323	668,337

Cost of sales

Opening stock - raw materials	138,500	147,000
Purchases	428,481	409,311
	---------	---------
	566,981	556,311

Closing stock - resale	127,800	138,500
	---------	---------
	439,181	417,811
	---------	---------

	---------	---------
Gross profit	301,142	250,526

Overheads

Distribution costs	10,195	6,688
Administrative expenses	188,942	161,666
	---------	---------
	199,137	168,354

	---------	---------
Operating profit	102,005	82,172

Other interest receivable and similar income	126	302

	---------	--------
Profit before taxation	102,131	82,474
	---------	--------

Gayways Limited

Notes to the Detailed Abridged Income Statement

Year ended 31 May 2017

	2017	2016
	£	£

Distribution costs

Advertising	10,195	6,688
	--------	-------

Administrative expenses

Administrative staff salaries	54,144	15,001
Casual Wages	–	29,259
Staff national insurance contributions	5,149	3,138
Rent	43,544	45,456
Rates and water	12,473	12,584
Light and heat	6,340	2,352
Insurance	7,640	6,987
Repairs and maintenance (allowable)	916	1,309
Cleaning costs	2,315	1,433
Motor expenses	3,132	6,805
Travel and subsistence	993	2,549
Telephone	3,145	1,859
Equipment repairs and renewals	1,696	544
Printing postage and stationery	14,859	6,845
Staff training	1,500	–
Sundry expenses	3,026	1,117
Charitable donations (allowable)	50	131
Entertaining	108	190
Legal and professional fees (allowable)	3,031	3,375
Accountancy fees	4,195	4,453
Depreciation of tangible assets	4,087	5,221
Bank charges	16,599	11,058
	---------	---------
	188,942	161,666
	---------	---------

Other interest receivable and similar income

Interest on cash and cash equivalents	126	302
	----	----