European Music Company Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 02373931 (England and Wales)

Unaudited Financial Statements

for the Year Ended 31 July 2020

for

European Music Company Limited

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

D Kommer

A J Flatt

M Kommer

Mrs H Kommer

SECRETARY:

D Matthews

REGISTERED OFFICE:

1st Floor, Cromwell House

14 Fulwood Place

London

WC1V 6HZ

REGISTERED NUMBER:

02373931 (England and Wales)

FIXED ASSETS

Tangible assets

4

12,481

16,522

Investments

5

1

1

12,482

16,523

CURRENT ASSETS

Stocks

381,498

317,757

Debtors

6

675,771

960,609

Cash at bank and in hand

1,304,468

909,939

2,361,737

2,188,305

CREDITORS

Amounts falling due within one year

7

585,951

596,946

NET CURRENT ASSETS

1,775,786

1,591,359

TOTAL ASSETS LESS CURRENT LIABILITIES

1,788,268

1,607,882

PROVISIONS FOR LIABILITIES

2,400

1,500

NET ASSETS

1,785,868

1,606,382

CAPITAL AND RESERVES

Called up share capital

100

100

Other reserves

8

692,563

621,941

Retained earnings

8

1,093,205

984,341

1,785,868

1,606,382

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 July 2020.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 July 2020 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 applicable to companies subject to the small companies regime.

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 and authorised for issue on 15 April 2021 and were signed on its behalf by:

D Kommer - Director

A J Flatt - Director

M Kommer - Director

1.	STATUTORY INFORMATION

European Music Company 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.

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.

Plant and machinery etc

-

33% 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.

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.

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.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 5 (2019 - 8 ) .

4.	TANGIBLE FIXED ASSETS

Plant and

machinery

etc

£

COST

At 1 August 2019

116,587

Additions

550

At 31 July 2020

117,137

DEPRECIATION

At 1 August 2019

100,065

Charge for year

4,591

At 31 July 2020

104,656

NET BOOK VALUE

At 31 July 2020

12,481

At 31 July 2019

16,522

5.	FIXED ASSET INVESTMENTS

Other

investments

£

COST

At 1 August 2019

and 31 July 2020

1

NET BOOK VALUE

At 31 July 2020

1

At 31 July 2019

1

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.7.20

31.7.19

£

£

Trade debtors

672,869

655,553

Other debtors

2,902

305,056

675,771

960,609

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.7.20

31.7.19

£

£

Trade creditors

77,768

87,207

Taxation and social security

98,639

62,314

Other creditors

409,544

447,425

585,951

596,946

8.

RESERVES

Retained

Other

earnings

reserves

Totals

£

£

£

At 1 August 2019

984,341

621,941

1,606,282

Profit for the year

308,542

308,542

Dividends

(99,678

)

(99,678

)

Transfer between reserves

(100,000

)

100,000

-

Dividends paid

-

(29,378

)

(29,378

)

At 31 July 2020

1,093,205

692,563

1,785,768

9.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 31 July 2020 and 31 July 2019:

31.7.20

31.7.19

£

£

D Kommer

Balance outstanding at start of year

-

55,648

Amounts repaid

-

(55,648

)

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

-

-

10.	RELATED PARTY DISCLOSURES

During the year, total dividends of £129,056 (2019 - £90,169) were paid to the directors .

The company's ultimate controlling party is Mr D Kommer, a director.

The company's pension scheme, EMC Ltd Pension Scheme, owned three warehouses used by the company for which rent of £95,044 was paid in the year.

The directors are also directors of and shareholders in Tanglewood Guitar Company Limited, which owed the company £294,776 including vat on trading account at 31st July 2020. Goods to the value of £980,397 excluding vat were sold to Tanglewood Guitar Company Limited in the year.

The company paid a management charge of £85,500 to Tanglewood Guitar Company Limited in the year.