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Registration number: 05721033

Shalli Limited

Annual Report and Unaudited Financial Statements

for the Period from 1 March 2021 to 31 December 2021

 

Shalli Limited

Contents

Company Information

1

Balance Sheet

2

Notes to the Unaudited Financial Statements

3 to 10

 

Shalli Limited

Company Information

Directors

A Shalli

T Suleiman

Company secretary

T Suleiman

Registered office

462 Ashley Road
Poole
Dorset
BH14 0AD

Accountants

Hazlewoods LLP
Staverton Court
Staverton
Cheltenham
Gloucestershire
GL51 0UX

 

Shalli Limited

(Registration number: 05721033)
Balance Sheet as at 31 December 2021

Note

31 December 2021
 £

28 February 2021
 £

Fixed assets

 

Intangible assets

4

63,689

143,301

Tangible assets

5

12,722

4,101

Investment property

6

180,000

180,000

 

256,411

327,402

Current assets

 

Stocks

54,000

54,000

Debtors

7

763,435

425,707

Cash at bank and in hand

 

156,476

83,310

 

973,911

563,017

Creditors: Amounts falling due within one year

8

(375,487)

(362,135)

Net current assets

 

598,424

200,882

Total assets less current liabilities

 

854,835

528,284

Creditors: Amounts falling due after more than one year

8

(120,746)

(147,005)

Deferred tax liabilities

10

(9,541)

(9,453)

Net assets

 

724,548

371,826

Capital and reserves

 

Called up share capital

11

100

100

Profit and loss account

724,448

371,726

Total equity

 

724,548

371,826

For the financial period ending 31 December 2021 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the period in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 14 August 2022 and signed on its behalf by:
 


A Shalli
Director

 

Shalli Limited

Notes to the Unaudited Financial Statements for the Period from 1 March 2021 to 31 December 2021

 

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
462 Ashley Road
Poole
Dorset
BH14 0AD

 

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Going concern

After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The 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.
 

Judgements

No significant judgements have been made by management in preparing these financial statements.

Key sources of estimation uncertainty

No key sources of estimation uncertainty have been identified by management in preparing these financial statements other than those detailed in these accounting policies.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the company.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

 

Shalli Limited

Notes to the Unaudited Financial Statements for the Period from 1 March 2021 to 31 December 2021

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Freehold land and buildings

2% straight line

Fixtures and fittings

25% straight line

Computer equipment

33% straight line

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually by external valuers. The valuers use observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

Intangible assets

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Goodwill

Straight line over 8 years

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

 

Shalli Limited

Notes to the Unaudited Financial Statements for the Period from 1 March 2021 to 31 December 2021

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

 

Shalli Limited

Notes to the Unaudited Financial Statements for the Period from 1 March 2021 to 31 December 2021

Financial instruments


Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

 Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

 Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

 

3

Staff numbers

The average number of persons employed by the company (including directors) during the period, was as follows:

 

Shalli Limited

Notes to the Unaudited Financial Statements for the Period from 1 March 2021 to 31 December 2021

 

5

Tangible assets

Furniture, fittings and equipment
 £

Leasehold property
 £

Total
£

Cost

At 1 March 2021

14,211

1,747

15,958

Additions

9,808

-

9,808

At 31 December 2021

24,019

1,747

25,766

Depreciation

At 1 March 2021

11,746

111

11,857

Charge for the year

914

273

1,187

At 31 December 2021

12,660

384

13,044

Carrying amount

At 31 December 2021

11,359

1,363

12,722

At 28 February 2021

2,465

1,636

4,101

 

6

Investment properties

2021
£

At 1 March 2020

180,000

At 31 December 2021

180,000

There has been no valuation of investment property by an independent valuer. The investment property was last valued by the directors at fair value in 2017.

 

7

Debtors

Note

31 December 2021
 £

28 February 2021
 £

Trade debtors

 

245,316

268,425

Amounts owed by related parties

13

443,310

145,310

Other debtors

 

55,354

11,442

Prepayments

 

19,455

530

 

763,435

425,707

 

Shalli Limited

Notes to the Unaudited Financial Statements for the Period from 1 March 2021 to 31 December 2021

 

8

Creditors

Note

31 December 2021
 £

28 February 2021
 £

Due within one year

 

Loans and borrowings

9

43,013

109,878

Trade creditors

 

159,613

115,180

Outstanding defined contribution pension costs

 

159

83

Other creditors

 

96,322

84,798

Accrued expenses

 

76,380

52,196

 

375,487

362,135

Due after one year

 

Loans and borrowings

9

120,746

147,005

 

9

Loans and borrowings

31 December 2021
£

28 February 2021
£

Current loans and borrowings

Bank borrowings

31,441

27,748

Loans from directors

11,572

82,130

43,013

109,878

31 December 2021
£

28 February 2021
£

Non-current loans and borrowings

Bank borrowings

120,746

147,005

Included in the loans and borrowings are the following amounts due after more than five years:

31 December 2021
£

28 February 2021
£

After more than five years by instalments

-

15,134

-

-

The bank loans are secured over the assets of the company.

 

Shalli Limited

Notes to the Unaudited Financial Statements for the Period from 1 March 2021 to 31 December 2021

 

10

Deferred tax

Deferred tax assets and liabilities

31 December 2021

Liability
£

Capital allowances in excess of depreciation

556

Tax on gain on revaluation of investment property

8,985

 

9,541

28 February 2021

Liability
£

Capital allowances in excess of depreciation

468

Tax on gain on revaluation of investment property

8,985

 

9,453

 

11

Share capital

Allotted, called up and fully paid shares

 

31 December 2021

28 February 2021

 

No.

£

No.

£

Ordinary A shares of £1 each

50

50

50

50

Ordinary B shares of £1 each

50

50

50

50

 

100

100

100

100

The different classes of share referred to above carry separate rights to dividends but, in all other significant respects, rank pari passu.

 

12

Financial commitments, guarantees and contingencies

Operating leases

The total of future minimum lease payments is as follows:

31 December 2021
£

28 February 2021
£

Not later than one year

15,000

15,000

Later than one year and not later than five years

60,000

60,000

Later than five years

2,500

15,000

77,500

90,000

The amount of non-cancellable operating lease payments recognised as an expense during the period was £12,500 (February 2021 - £15,000).

 

Shalli Limited

Notes to the Unaudited Financial Statements for the Period from 1 March 2021 to 31 December 2021

 

13

Related party transactions

Summary of transactions with key management

Key management personnel are considered to be the directors of the company.

As at the balance sheet date, the company owed the directors £11,572 (February 2021: £82,130). There are no fixed repayment terms and interest is charged at 7.5%.

 

Summary of transactions with other related parties

S&S Shalli Limited
(A Shalli and T Suleiman are also directors of S&S Shalli Limited)
At the balance sheet date, the company was owed £443,310 (February 2021: £145,310) by S&S Shalli Limited. There are no fixed repayment terms and no interest is charged on the loan.