The Chinese Room Limited - Accounts to registrar - small 17.2

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017

FOR

THE CHINESE ROOM LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

D M Pinchbeck

Mrs J Pinchbeck

REGISTERED OFFICE:

1st Floor

Unison

179 Preston Road

Brighton

East Sussex

BN1 6AG

REGISTERED NUMBER:

07372832 (England and Wales)

FIXED ASSETS

Tangible assets

4

9,578

10,400

CURRENT ASSETS

Debtors

5

113,000

12,871

Cash at bank and in hand

1,343,932

1,422,319

1,456,932

1,435,190

CREDITORS

Amounts falling due within one year

6

(33,571

)

(83,689

)

NET CURRENT ASSETS

1,423,361

1,351,501

TOTAL ASSETS LESS CURRENT LIABILITIES

1,432,939

1,361,901

CREDITORS

Amounts falling due after more than one year

7

-

(10,757

)

PROVISIONS FOR LIABILITIES

9

(2,068

)

(2,522

)

NET ASSETS

1,430,871

1,348,622

CAPITAL AND RESERVES

Called up share capital

10

2

2

Retained earnings

1,430,869

1,348,620

SHAREHOLDERS' FUNDS

1,430,871

1,348,622

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2017.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2017 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 20 July 2017 and were signed on its behalf by:

D M Pinchbeck - Director

Mrs J Pinchbeck - Director

1.	STATUTORY INFORMATION

The Chinese Room 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.

The presentation currency of the financial statements is the Pound Sterling (£).

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 the 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.

The impact on the financial statements from transition to FRS 102 has been disclosed in the notes to the financial

statements.

Significant judgements and estimates

Preparation of the financial statements requires management to make significant judgements and estimates and

these estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates

are recognised in the period in which the estimate is revised if the revision affects only that period, or in the

period of the revision and future periods if the revision affects both current and future periods.

The items in the financial statements where these judgements and estimates have been made include the useful

economic life of tangible fixed assets, the depreciation of these assets, income deferral and the recoverability of

debtors.

Turnover

Turnover represents the fair value of consideration received or receivable net of VAT and trade discounts.

Revenue from royalties is recognised on an accruals basis in accordance with the substance of the agreement.

Revenue from advances is recognised when the advance is received.

Tangible fixed assets

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and

accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating

as intended by management.

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

economic life.

Fixtures & fittings - 33% on cost

Motor vehicles - 25% on cost

Computer equipment - 33% on cost

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.

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.

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.

Impairment

At each balance sheet date, the company reviews the carrying amount of its assets to determine whether there is

any indication that any items have suffered an impairment loss. If any such indication exists, the recoverable

amount of an asset is estimated in order to determine the extent of the impairment loss, if any. Where it is not

possible to estimate the recoverable amount of an asset, the Company estimates the recoverable amount of the

cash-generating to which the asset belongs.

Going concern

The directors have a reasonable expectation that the company has adequate resources to continue in existence for

the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its

financial statements.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 12 (2016 - 11 ) .

4.	TANGIBLE FIXED ASSETS

Fixtures

and

Motor

Computer

fittings

vehicles

equipment

Totals

£

£

£

£

COST

At 1 April 2016

4,055

22,559

43,761

70,375

Additions

3,576

-

8,521

12,097

At 31 March 2017

7,631

22,559

52,282

82,472

DEPRECIATION

At 1 April 2016

2,331

21,825

35,819

59,975

Charge for year

2,474

734

9,711

12,919

At 31 March 2017

4,805

22,559

45,530

72,894

NET BOOK VALUE

At 31 March 2017

2,826

-

6,752

9,578

At 31 March 2016

1,724

734

7,942

10,400

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

Motor

vehicles

£

COST

At 1 April 2016

and 31 March 2017

22,559

DEPRECIATION

At 1 April 2016

21,825

Charge for year

734

At 31 March 2017

22,559

NET BOOK VALUE

At 31 March 2017

-

At 31 March 2016

734

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Trade debtors

106,014

-

Other debtors

6,986

12,871

113,000

12,871

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Hire purchase contracts (see note 8)

13,000

4,209

Trade creditors

-

11,550

Taxation and social security

86

47,880

Other creditors

20,485

20,050

33,571

83,689

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2017

2016

£

£

Hire purchase contracts (see note 8)

-

10,757

8.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts

2017

2016

£

£

Net obligations repayable:

Within one year

13,000

4,209

Between one and five years

-

10,757

13,000

14,966

Non-cancellable

operating leases

2017

2016

£

£

Within one year

10,091

-

Between one and five years

-

40,363

10,091

40,363

9.	PROVISIONS FOR LIABILITIES

2017

2016

£

£

Deferred tax

2,068

2,522

Deferred

tax

£

Balance at 1 April 2016

2,522

Accelerated capital allowances

(454

)

Balance at 31 March 2017

2,068

10.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2017

2016

value:

£

£

1

Ordinary A

£1

1

1

1

Ordinary B

£1

1

1

2

2

11.	RELATED PARTY DISCLOSURES

12.	ULTIMATE CONTROLLING PARTY

13.	FIRST YEAR ADOPTION

The policies applied under the entity's previous accounting framework are not materially different to FRS102 and

have not impacted on equity or profit or loss.