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Company registration number: 02832312
Ink (Clothing) Limited
Filleted financial statements
31 December 2021
Ink (Clothing) Limited
Contents
Directors and other information
Directors responsibilities statement
Statement of financial position
Statement of changes in equity
Notes to the financial statements
Ink (Clothing) Limited
Directors and other information
Directors R. Batra
P. Rudran
Secretary K. Uthayakumaran
Company number 02832312
Registered office Unit 1
Colonial Business Park
Colonial Way
Watford Hertfordshire
WD24 4PR
Business address Unit 1
Colonial Business Park
Colonial Way
Watford Hertfordshire
WD24 4PR
Auditor SRV Delson
Maruti House
1st Floor
369 Station Road
Harrow
HA1 2AW
Ink (Clothing) Limited
Directors responsibilities statement
Year ended 31 December 2021
The directors are responsible for preparing the directors report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company for that period.
In preparing these financial statements, the directors are required to:
- select suitable accounting policies and then apply them consistently;
- make judgments and accounting estimates that are reasonable and prudent; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Ink (Clothing) Limited
Statement of financial position
31 December 2021
2021 2020
Note £ £ £ £
Fixed assets
Tangible assets 6 223,621 -
Investments 7 22,553 22,553
_______ _______
246,174 22,553
Current assets
Stocks 1,007,437 523,889
Debtors 8 6,007,612 1,467,611
Cash at bank and in hand 6,300,924 4,870,027
_______ _______
13,315,973 6,861,527
Creditors: amounts falling due
within one year 9 ( 5,578,684) ( 2,374,226)
_______ _______
Net current assets 7,737,289 4,487,301
_______ _______
Total assets less current liabilities 7,983,463 4,509,854
_______ _______
Net assets 7,983,463 4,509,854
_______ _______
Capital and reserves
Called up share capital 11 1,849,034 1,849,034
Profit and loss account 12 6,134,429 2,660,820
_______ _______
Shareholders funds 7,983,463 4,509,854
_______ _______
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
In accordance with section 444 of the Companies Act 2006, the statement of comprehensive income has not been delivered.
These financial statements were approved by the board of directors and authorised for issue on 25 March 2022 , and are signed on behalf of the board by:
P. Rudran
Director
Company registration number: 02832312
Ink (Clothing) Limited
Statement of changes in equity
Year ended 31 December 2021
Called up share capital Profit and loss account Total
£ £ £
At 1 January 2020 125,000 653,855 778,855
Profit for the year 2,306,965 2,306,965
_______ _______ _______
Total comprehensive income for the year - 2,306,965 2,306,965
Issue of shares 1,724,034 1,724,034
Dividends paid and payable ( 300,000) ( 300,000)
_______ _______ _______
Total investments by and distributions to owners 1,724,034 ( 300,000) 1,424,034
_______ _______ _______
At 31 December 2020 and 1 January 2021 1,849,034 2,660,820 4,509,854
Profit for the year 3,973,609 3,973,609
_______ _______ _______
Total comprehensive income for the year - 3,973,609 3,973,609
Dividends paid and payable ( 500,000) ( 500,000)
_______ _______ _______
Total investments by and distributions to owners - ( 500,000) ( 500,000)
_______ _______ _______
At 31 December 2021 1,849,034 6,134,429 7,983,463
_______ _______ _______
Ink (Clothing) Limited
Notes to the financial statements
Year ended 31 December 2021
1. General information
The company is a private company limited by shares, registered in England & Wales. The address of the registered office is Unit 1, Colonial Business Park, Colonial Way, Watford Hertfordshire, WD24 4PR.
The principal activity of the company continues to be that of owning the trademarks of Urban Stone, trading of Juicy Couture brand under a license and other income derived from branded licenses and sourcing of branded products.
2. Statement of compliance
These financial statements have been prepared in compliance with the provisions of FRS 102, Section 1A, 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. The Triennial review 2017 amendments to the standard have been early adopted.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
In common with many other businesses of our size and nature, we use our auditor to prepare and submit returns to the tax authorities and assist with the preparation of the financial statements
Going concern
In preparing the financial statements the directors have taken into account all the information that could reasonably be expected to be available together with their continued support The company is dependent on the availability of orders and the current conditions of Covid 19 are having significant impact upon the orders and the conditions remain challenging. Based on the results of the company the board consider that the company has sufficient confirmed future orders to maintain its profitability. The directors have reasonable expectations and adequate resources that the company will be able to continue in operations and meet its liabilities as they fall due.On this basis the financial statements have been prepared by using the going concern basis of accounting because there are no material uncertainties related to events and conditions that may cast significant doubt about the ability of the company to continue as a going concern.
Turnover
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Taxation
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in the statement of comprehensive income, except to the extent that it relates to items recognised in other comprehensive income or directly in capital and reserves. In this case, tax is recognised in other comprehensive income or directly in capital and reserves, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Tangible assets
tangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in capital and reserves, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in capital and reserves in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in capital and reserves in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
If there is an indication that there has been a significant change in depreciation rate, useful life or residual value of tangible assets, the depreciation is revised prospectively to reflect the new estimates.
Fixed asset investments
Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses. Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.
Impairment
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. When it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stocks to their present location and condition.
Financial instruments
A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets or either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised in finance costs in profit or loss in the period in which it arises.
4. Employee numbers
The average number of persons employed by the company during the year amounted to 14 (2020: 3 ).
5. Tax on profit
Major components of tax expense
2021 2020
£ £
Current tax:
UK current tax expense 747,191 543,246
Adjustments in respect of previous periods ( 41,770) 8,979
_______ _______
Tax on profit 705,421 552,225
_______ _______
Reconciliation of tax expense
The tax assessed on the profit for the year the standard rate of corporation tax in the UK of 19.00% (2020: 19.00%).
2021 2020
£ £
Profit before taxation 4,679,030 2,859,190
_______ _______
Profit multiplied by rate of tax 889,016 543,246
Adjustments in respect of prior periods ( 41,770) 8,979
Effect of capital allowances and depreciation ( 42,488) -
Disallowed expenses 9,500 -
Research & Development tax credit ( 108,837) -
_______ _______
Tax on profit 705,421 552,225
_______ _______
6. Tangible assets
Fixtures, fittings and equipment Total
£ £
Cost
At 1 January 2021 - -
Additions 247,879 247,879
_______ _______
At 31 December 2021 247,879 247,879
_______ _______
Depreciation
At 1 January 2021 - -
Charge for the year 24,258 24,258
_______ _______
At 31 December 2021 24,258 24,258
_______ _______
Carrying amount
At 31 December 2021 223,621 223,621
_______ _______
At 31 December 2020 - -
_______ _______
7. Investments
Shares in group undertakings and participating interests Total
£ £
Cost
At 1 January 2021 and 31 December 2021 22,553 22,553
_______ _______
Impairment
At 1 January 2021 and 31 December 2021 - -
_______ _______
Carrying amount
At 31 December 2021 22,553 22,553
_______ _______
At 31 December 2020 22,553 22,553
_______ _______
The company has a wholly owned subsidiary named Ink (Clothing) GMBH which is incorporated in Germany
8. Debtors
2021 2020
£ £
Trade debtors 3,333,359 1,388,902
Other debtors 2,674,253 78,709
_______ _______
6,007,612 1,467,611
_______ _______
9. Creditors: amounts falling due within one year
2021 2020
£ £
Trade creditors 3,293,090 934,240
Corporation tax 705,421 543,246
Social security and other taxes 563,317 396,937
Other creditors 1,016,856 499,803
_______ _______
5,578,684 2,374,226
_______ _______
10. Financial instruments
Financial instruments carried on the statement of financial position include cash and cash equivalents, borrowings and accruals. The particular recognition methods adopted are disclosed in the individual policy statements associated with each item.
11. Called up share capital
Issued, called up and fully paid
2021 2020
No £ No £
Ordinary shares of £ 1.00 each 125,000 125,000 125,000 125,000
Preference shares shares of £ 1.30 each 1,326,172 1,724,024 1,326,172 1,724,024
_______ _______ _______ _______
1,451,172 1,849,024 1,451,172 1,849,024
_______ _______ _______ _______
Share movements
No £
Preference shares :
At 1 January 2021 1,326,172 1,724,024
Issue of shares 1,326,172 1,724,024
_______ _______
At 31 December 2021 1,326,172 1,724,024
_______ _______
The preference shares are non-redeemable.
Called-up share capital represents the nominal value of shares that have been issued.
12. Reserves
The profit & loss reserve includes all current and prior year's retained profits and losses.
13. Summary audit opinion
The auditor's report for the year dated 25 March 2022 was unqualified.
The senior statutory auditor was Sailesh Rameshchandra Vaghjee for and on behalf of SRV Delson
14. Related party transactions
During the year the company entered into the following transactions with related parties:
Transaction value Balance owed by/(owed to)
2021 2020 2021 2020
£ £ £ £
Hi-Tec Europe Limited 1,180,345 165,815 ( 678,809) ( 8,493)
Future Brands Limited 87,000 36,000 - -
_______ _______ _______ _______
During the year the company carried transactions between companies with common control. The balances owed to the companies are as per above.
15. Controlling party
The ultimate controlling interest is held by the director, R. Batra .