Gift Creation and Design Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 07089794 (England and Wales)

GIFT CREATION AND DESIGN LIMITED

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTOR:

S Thakrar

REGISTERED OFFICE:

31-37 Park Royal Road

London

NW10 7LQ

REGISTERED NUMBER:

07089794 (England and Wales)

SENIOR STATUTORY AUDITOR:

Adam Calvert ACA

AUDITORS:

Rushtons

Chartered Accountants

Statutory Auditors

Shorrock House

1 Faraday Court

Fulwood

Preston

Lancashire

PR2 9NB

FIXED ASSETS

Intangible assets

4

-

3,000

Tangible assets

5

12,176

15,100

12,176

18,100

CURRENT ASSETS

Stocks

443,354

774,419

Debtors

6

476,135

713,577

Cash at bank

49,678

68,949

969,167

1,556,945

CREDITORS

Amounts falling due within one year

7

1,359,570

1,666,667

NET CURRENT LIABILITIES

(390,403

)

(109,722

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(378,227

)

(91,622

)

CAPITAL AND RESERVES

Called up share capital

500,000

500,000

Retained earnings

(878,227

)

(591,622

)

SHAREHOLDERS' FUNDS

(378,227

)

(91,622

)

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Statement of Comprehensive Income has not been delivered.

The financial statements were approved by the director and authorised for issue on 24 August 2020 and were signed by:

S Thakrar - Director

1.	STATUTORY INFORMATION

Gift Creation and Design Limited 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 Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Towards the end of the last year, the company moved premises and relocated to London.

This move incurred various costs, not least those of replacing staff who did not wish to

relocate. These costs have also fallen into the current financial year. As such, the

company was not expected to be profit making in the current financial year. The company

is, however, part of a large profitable group. The group will continue to give support and will

not put the company under any undue pressure to repay loans.

In addition to the above there has been a share issue on 21 August 2020. An additional

500,000 shares of £1 was issued to Gift Creation & Design (Holdings) Limited. Therefore

the share capital of Gift Creation and Design Limited increased to £1 million which will assist

with cash flow in 2020-21. As such, these accounts have been prepared on a going concern

basis.

Turnover

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

discounts, rebates, value added tax and other sales taxes.

Turnover is recognised on invoicing the customer.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2012, is being amortised evenly over its estimated useful life of eight years.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are

measured at cost less any accumulated amortisation and any accumulated impairment

losses.

Tangible fixed assets

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

Plant and machinery

-

20% on reducing balance

Fixtures and fittings

-

20% on reducing balance

Motor vehicles

-

25% on reducing balance

Computer equipment

-

50% on cost and 20% on reducing balance

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.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of

exchange ruling at the balance sheet date. Transactions in foreign currencies are translated

into sterling at the rate of exchange ruling at the date of transaction. Exchange differences

are taken into account in arriving at the operating result.

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.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 4 (2019 - 6 ) .

4.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 April 2019

and 31 March 2020

46,453

AMORTISATION

At 1 April 2019

43,453

Charge for year

3,000

At 31 March 2020

46,453

NET BOOK VALUE

At 31 March 2020

-

At 31 March 2019

3,000

5.	TANGIBLE FIXED ASSETS

Fixtures

Plant and

and

Motor

Computer

machinery

fittings

vehicles

equipment

Totals

£

£

£

£

£

COST

At 1 April 2019

3,156

11,285

3,752

97,486

115,679

Additions

-

2,604

-

2,030

4,634

At 31 March 2020

3,156

13,889

3,752

99,516

120,313

DEPRECIATION

At 1 April 2019

3,156

11,285

3,752

82,386

100,579

Charge for year

-

2,387

-

5,171

7,558

At 31 March 2020

3,156

13,672

3,752

87,557

108,137

NET BOOK VALUE

At 31 March 2020

-

217

-

11,959

12,176

At 31 March 2019

-

-

-

15,100

15,100

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Trade debtors

437,256

607,577

Other debtors

38,879

106,000

476,135

713,577

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Trade creditors

971,346

1,003,231

Taxation and social security

6,887

4,187

Other creditors

381,337

659,249

1,359,570

1,666,667

8.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

2020

2019

£

£

Within one year

-

1,500

9.	SECURED DEBTS

The following secured debts are included within creditors:

2020

2019

£

£

Trade finance

73,934

291,532

The trade finance is secured by the way of a fixed and floating charge.

10.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

We wish to draw attention to an issue regarding the company's ability to continue as a going

concern. The company has been loss making for a number of years, a situation which has

not been improved by the current COVID-19 pandemic. The company is however supported

by profitable group companies, and this support is not intended to be withdrawn. As such,

the accounts have been prepared on a going concern basis.

Adam Calvert ACA (Senior Statutory Auditor)

for and on behalf of Rushtons

11.	RELATED PARTY DISCLOSURES

During the year, purchases amounting to £29,143 (2019: £71,217) were made from

Drinksupermarket.com Ltd, a fellow subsidiary which is not wholly owned. The balance in

trade creditors at the year end was £6,591 (2019: £1,705).

12.	POST BALANCE SHEET EVENTS

There has been a share issue on 21 August 2020. An additional 500,000 shares of £1 to

rank pari passu with the existing shares was issued to Gift Creation & Design (Holdings)

Limited. Therefore the share capital of Gift Creation and Design Limited increased to £1

million.

13.	ULTIMATE CONTROLLING PARTY

The ultimate controlling party is Mr P Thakrar, who holds 60% of the issued share capital of

HT Drinks Holdings Ltd (the ultimate parent company).

Consolidated accounts are drawn up for HT Drinks Holdings Ltd, which include the results of

Gift Creation and Design Limited. The registered office for both HT Drinks Holdings Ltd and

Gift Creation and Design Ltd is the same, and is given on the company information page.