The Dragon Clothing Co Llp - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: OC397782 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST JANUARY 2018

FOR

THE DRAGON CLOTHING CO LLP

Page

General Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DESIGNATED MEMBERS:

S J Wingett

S Wingett

REGISTERED OFFICE:

The Garden House

Erbistock

Wrexham

LL13 0DL

REGISTERED NUMBER:

OC397782 (England and Wales)

ACCOUNTANTS:

M. D. Coxey and Co. Limited

Chartered Accountants

25 Grosvenor Road

Wrexham

LL11 1BT

BANKERS:

Barclays Bank plc

51-52 Hope Street

Wrexham

LL11 1BB

FIXED ASSETS

Tangible assets

2

31,759

45,322

CURRENT ASSETS

Stocks

3

-

20,490

Debtors

4

53,351

14,629

Cash in hand

223

223

53,574

35,342

CREDITORS

Amounts falling due within one year

5

22,767

17,188

NET CURRENT ASSETS

30,807

18,154

TOTAL ASSETS LESS CURRENT LIABILITIES

62,566

63,476

CREDITORS

Amounts falling due after more than one year

6

17,230

18,140

NET ASSETS ATTRIBUTABLE TO MEMBERS

45,336

45,336

LOANS AND OTHER DEBTS DUE TO MEMBERS

8

15,336

15,336

MEMBERS' OTHER INTERESTS

Capital accounts

30,000

30,000

45,336

45,336

TOTAL MEMBERS' INTERESTS

Loans and other debts due to members

8

15,336

15,336

Members' other interests

30,000

30,000

Amounts due from members

4

(48,758

)

(6,429

)

(3,422

)

38,907

The LLP is entitled to exemption from audit under Section 477 of the Companies Act 2006 as applied to LLPs by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008 for the year ended 31st January 2018.

The members acknowledge their responsibilities for:

(a)	ensuring that the LLP keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 as applied to LLPs by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the LLP 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 as applied to LLPs by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008 relating to financial statements, so far as applicable to the LLP.

The financial statements have been prepared and delivered in accordance with the provisions of Part 15 of the Companies Act 2006 as applied to LLPs by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008 relating to small LLPs.

In accordance with Section 444 of the Companies Act 2006 as applied to LLPs by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008, the Income Statement has not been delivered.

The financial statements were approved by the members of the LLP on 28th November 2018 and were signed by:

S Wingett - Designated member

1.	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 requirements of the Statement of Recommended Practice, Accounting by Limited Liability Partnerships. The financial statements have been prepared under the historical cost convention.

The financial statements have been prepared on a going concern basis on the assumption that the support of the

providers of finance will be continued. If this support is withdrawn, adjustments would have to be made to

reduce the value of assets to their recoverable amounts, to provide for any further liabilities that might arise and

to reclassify fixed assets and long term liabilities as current assets and current liabilities.

This is the first year that the company has presented its results under FRS 102. The prior years financial

statements were prepared under UK GAAP. The date of transition to FRS 102 was the first day of the prior year.

There were no material adjustments on the transition to FRS 102.

The company's functional and presentational currencies are pounds sterling.

Status and principal activities

The Dragon Clothing Co LLP is a limited liability partnership, incorporated in England and Wales. Its

Registered Office is The Garden House, Erbistock, Wrexham, LL13 0DL.

The principal activity of the company is that of a high end clothing retailer.

Significant judgements and estimates

In the application of the LLP’s accounting policies, management are required to make judgements, estimates

and assumptions about carrying values of assets and liabilities that are not readily available from other sources.

The estimates and underlying assumptions are based on historical experience and other factors that are

considered to be relevant. Actual results may differ from these estimates.

The key judgements and sources of estimation uncertainty that have a significant effect on the amounts

recognised in the financial statements are described below:

- Estimated useful lives and residual values of fixed assets:

The carrying value of fixed assets are reviewed each year end for indicators of impairment triggers. If such

triggers exist, management would be required to carry out a formal impairment review using a discounted cash

flow model to determine their value in use on a cash-generating unit basis. The value in use calculation requires

management to estimate the future cash flows expected to arise from the cash-generating unit and a sustainable

discount rate in order to calculate the present value.

Depreciation of tangible fixed assets has been based on estimated useful lives and residual values deemed

appropriate by the Members. Estimated useful lives and residual values are reviewed annually and revised as

appropriate. Revisions take into account estimated useful lives used by other companies operating in the sector

and actual asset lives and residual values, as evidenced by disposals during current and prior accounting periods.

- Estimated write down of stock to net realisable value:

Stock valuation has been based on an estimated useful life and residual value deemed appropriate by the

directors. The estimated write down of stock to net realisable value is reviewed annually and revised as

appropriate by the Members.

- Revenue recognition:

In making its judgement, management consider the detailed criteria for the recognition of revenue as set out

within Section 23 of FRS 102. The Members are satisfied that the recognition point being typically when goods

are delivered and legal title has passed is correct.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates,

value added tax and other sales taxes.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Plant and machinery

-

20% on cost

Fixtures and fittings

-

25% on cost

Motor vehicles

-

25% on cost

Computer equipment

-

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.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held

under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases

are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital

element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the

lease.

Allocation of profit and drawings

Profits and losses arising in the LLP are allocated automatically to the Members in accordance with the

proportions set out in the Members Agreement and are credited or debited to the Members' current accounts

with the LLP as soon as the accounts for the relevant accounting year of the LLP are approved by the Members.

The profits and losses are allocated after paying interest on the amount of each Member's capital contribution

and interest on any loan made to the LLP by any Member.

To the extent that drawings exceed profit allocations, the excess drawing is repayable immediately following the

finalisation of the accounts for that accounting year. To the extent that profit allocations exceed drawings then

the excess is included within the balance sheet under loans and other debts due to Members.

Financial instruments

The following assets and liabilities are classified as financial instruments - trade debtors and trade creditors.

Trade debtors and trade creditors are measured at the undiscounted amount of cash or other consideration

expected to be paid or received.

Financial assets are assessed at the end of each reporting period for objective evidence of impairment. If

objective evidence of impairment is found, an impairment loss is recognised in profit and loss.

2.	TANGIBLE FIXED ASSETS

Fixtures

Plant and

and

Motor

Computer

machinery

fittings

vehicles

equipment

Totals

£

£

£

£

£

COST

At 1st February 2017

and 31st January 2018

13,059

2,873

38,020

2,909

56,861

DEPRECIATION

At 1st February 2017

3,063

829

6,701

946

11,539

Charge for year

2,612

718

9,505

728

13,563

At 31st January 2018

5,675

1,547

16,206

1,674

25,102

NET BOOK VALUE

At 31st January 2018

7,384

1,326

21,814

1,235

31,759

At 31st January 2017

9,996

2,044

31,319

1,963

45,322

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Motor

vehicles

£

COST

At 1st February 2017

and 31st January 2018

38,020

DEPRECIATION

At 1st February 2017

6,701

Charge for year

9,505

At 31st January 2018

16,206

NET BOOK VALUE

At 31st January 2018

21,814

At 31st January 2017

31,319

3.

STOCKS

31.1.18

31.1.17

£

£

Stocks

-

20,490

4.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.1.18

31.1.17

£

£

Trade debtors

-

3,430

Amounts due from members

48,758

6,429

Prepayments

4,593

4,770

53,351

14,629

5.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.1.18

31.1.17

£

£

Bank loans and overdrafts (see note 7)

4,733

1,091

Hire purchase contracts

6,282

6,772

Trade creditors

1

1

VAT

-

111

Other creditors

8,500

8,500

Accrued expenses

3,251

713

22,767

17,188

6.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.1.18

31.1.17

£

£

Hire purchase contracts

17,230

18,140

7.

LOANS

An analysis of the maturity of loans is given below:

31.1.18

31.1.17

£

£

Amounts falling due within one year or on demand:

Bank overdrafts

4,733

1,091

8.

LOANS AND OTHER DEBTS DUE TO MEMBERS

31.1.18

31.1.17

£

£

Amounts owed to members in respect of profits

15,336

15,336

Falling due within one year

15,336

15,336

In the event of a winding up, members' other reserves rank after unsecured creditors. Loans and other debts due

to members rank pari passu with unsecured creditors in the event of a winding up. There is no formal restriction

on the ability of the LLP to reduce the amount of members' other interests.