The Chinese Room Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 07372832 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2018

FOR

THE CHINESE ROOM LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

C Cavers

C Stockwell

S Webb

D C Wilton

REGISTERED OFFICE:

32 Jessops Riverside

Brightside Lane

Sheffield

South Yorkshire

S9 2RX

REGISTERED NUMBER:

07372832 (England and Wales)

FIXED ASSETS

Tangible assets

4

12,032

9,578

CURRENT ASSETS

Debtors

5

714,760

121,300

Cash at bank and in hand

977,282

1,343,932

1,692,042

1,465,232

CREDITORS

Amounts falling due within one year

6

(16,395

)

(17,282

)

NET CURRENT ASSETS

1,675,647

1,447,950

TOTAL ASSETS LESS CURRENT LIABILITIES

1,687,679

1,457,528

PROVISIONS FOR LIABILITIES

8

(2,045

)

(2,068

)

NET ASSETS

1,685,634

1,455,460

CAPITAL AND RESERVES

Called up share capital

9

2

2

Retained earnings

1,685,632

1,455,458

SHAREHOLDERS' FUNDS

1,685,634

1,455,460

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2018.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2018 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 December 2018 and were signed on its behalf by:

C Stockwell - 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.

Video Game Tax Credits have only been recognised where management believe that a tax credit will be

recoverable based on their experience of obtaining the relevant certification and the success of similar historical

claims. Such credits are recognised within corporation tax.

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 5 (2017 - 12 ) .

4.	TANGIBLE FIXED ASSETS

Fixtures

and

Motor

Computer

fittings

vehicles

equipment

Totals

£

£

£

£

COST

At 1 April 2017

7,631

22,559

52,282

82,472

Additions

8,913

-

-

8,913

At 31 March 2018

16,544

22,559

52,282

91,385

DEPRECIATION

At 1 April 2017

4,805

22,559

45,530

72,894

Charge for year

2,899

-

3,560

6,459

At 31 March 2018

7,704

22,559

49,090

79,353

NET BOOK VALUE

At 31 March 2018

8,840

-

3,192

12,032

At 31 March 2017

2,826

-

6,752

9,578

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

Motor

vehicles

£

COST

At 1 April 2017

and 31 March 2018

22,559

DEPRECIATION

At 1 April 2017

and 31 March 2018

22,559

NET BOOK VALUE

At 31 March 2018

-

At 31 March 2017

-

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

as restated

£

£

Trade debtors

75

106,014

Other debtors

714,685

15,286

714,760

121,300

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

as restated

£

£

Hire purchase contracts (see note 7)

-

13,000

Taxation and social security

13,708

86

Other creditors

2,687

4,196

16,395

17,282

7.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts

2018

2017

as restated

£

£

Net obligations repayable:

Within one year

-

13,000

Non-cancellable

operating leases

2018

2017

as restated

£

£

Within one year

-

10,091

8.	PROVISIONS FOR LIABILITIES

2018

2017

as restated

£

£

Deferred tax

2,045

2,068

Deferred

tax

£

Balance at 1 April 2017

2,068

Provided during year

(23

)

Accelerated capital allowances

Balance at 31 March 2018

2,045

9.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2018

2017

value:

as restated

£

£

1

Ordinary A

£1

1

1

1

Ordinary B

£1

1

1

2

2

10.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to directors subsisted during the years ended 31 March 2018 and

31 March 2017:

2018

2017

as restated

£

£

D M Pinchbeck and Mrs J Pinchbeck

Balance outstanding at start of year

8,300

(2,400

)

Amounts advanced

629,191

12,430

Amounts repaid

(19,835

)

(1,730

)

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

617,656

8,300