Colorbar International Limited
Financial Statements
For the year ended 31 March 2023
Pages for Filing with Registrar
Company Registration No. 13525580 (England and Wales)
Colorbar International Limited
Contents
Page
Balance sheet
1
Notes to the financial statements
2 - 7
Colorbar International Limited
Balance Sheet
As at 31 March 2023
Page 1
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
3
3,347
109,000
Current assets
Stock
771,445
13,318
Debtors
4
101,563
74,225
Cash at bank and in hand
24,513
40,846
897,521
128,389
Creditors: amounts falling due within one year
5
(478,857)
(113,224)
Net current assets
418,664
15,165
Net assets
422,011
124,165
Capital and reserves
Called up share capital
6
2,300,000
300,000
Profit and loss reserves
(1,877,989)
(175,835)
Total equity
422,011
124,165
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved and signed by the director and authorised for issue on 31 October 2023
S Modi
Director
Company Registration No. 13525580
Colorbar International Limited
Notes to the Financial Statements
For the year ended 31 March 2023
Page 2
1
Accounting policies
Company information
Colorbar International Limited (formerly known as Modicare International Limited) is a private company limited by shares incorporated in England and Wales. The registered office is 6th Floor, 9 Appold Street, London, EC2A 2AP.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Colorbar Cosmetics Private Limited. These consolidated financial statements are available from its registered office 4, Community Centre, New Friends Colony, Delhi, India 110025.
Colorbar International Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2023
1
Accounting policies
(Continued)
Page 3
1.2
Going concern
This is the second period of trading of the company. Ttruehe company has made a loss of £1,702,154 (2022: £175,835) during the period.
The losses made by the company in 2023 have been funded by the parent company. As at 31 March 2023, the company had net assets on its balance sheet of £422,011 (2022: £124,165).
The parent company continued to make sufficient profits in 2023 to fully support it's loss making UK subsidiary, and are expected to continue making sufficient profits in 2024 and beyond.
Based on the group support available, at the time of approving these financial statements, the directors have a reasonable expectation that the company can continue in operational existence for the foreseeable future, and can meet its debts as they fall due throughout 2024 and beyond. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Computers
3-4 Years
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Stock
Stock is stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stock to their present location and condition.
Stock held for distribution at no or nominal consideration is measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
Colorbar International Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2023
1
Accounting policies
(Continued)
Page 4
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stock over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.6
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.7
Financial instruments
The company only has basic financial instruments measured at amortised cost, with no financial instruments classified as other or basic instruments at fair value.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and 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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
1.10
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
1.11
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
Colorbar International Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2023
Page 5
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
1
1
3
Tangible fixed assets
Leasehold improvements
Plant and machinery etc
Total
£
£
£
Cost
At 1 April 2022
109,000
109,000
Additions
135,000
3,347
138,347
Disposals
(244,000)
(244,000)
At 31 March 2023
3,347
3,347
Depreciation and impairment
At 1 April 2022 and 31 March 2023
Carrying amount
At 31 March 2023
3,347
3,347
At 31 March 2022
109,000
109,000
4
Debtors
2023
2022
Amounts falling due within one year:
£
£
Other debtors
97,620
74,225
Prepayments and accrued income
3,943
101,563
74,225
Colorbar International Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2023
Page 6
5
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
110,276
85,690
Amounts owed to group undertakings
323,763
Other creditors
6,316
-
Accruals and deferred income
38,502
27,534
478,857
113,224
6
Called up share capital
2023
2022
Ordinary share capital
£
£
Issued and fully paid
2,300,000 Ordinary shares of £1 each
2,300,000
300,000
During the year, 2 million ordinary shares were allotted at par.
7
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
John Staniforth
Statutory Auditor:
Moore Kingston Smith LLP
8
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
Within one year
9,687
Between two and five years
232,480
In over five years
222,793
464,960
9
Related party transactions
In accordance with FRS 102 section 33 paragraph 33.1A, the company has not disclosed transactions with wholly owned fellow group undertakings.
Colorbar International Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2023
Page 7
10
Parent company
The parent company is Colorbar Cosmetics Private Limited by virtue of a controlling shareholding, with a registered address at 4 Community Centre, New Friends Colony, Delhi, India, 110025.