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Registration number: 03420642

The Lemon Tree Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 28 February 2023

 

The Lemon Tree Limited

Contents

Company Information

1

Statement of Financial Position

2 to 3

Notes to the Financial Statements

4 to 10

 

The Lemon Tree Limited

Company Information

Directors

IN Rao

SA Rao

Company secretary

SA Rao

Registered office

Salatin House
19 Cedar Road
Sutton
Surrey
SM2 5DA

Accountants

Harmer Slater Limited
Chartered Accountants and Business Advisors
Salatin House
19 Cedar Road
Sutton
Surrey
SM2 5DA

 

The Lemon Tree Limited

(Registration number: 03420642)
Statement of Financial Position as at 28 February 2023

Note

2023
£

2022
£

Non-current assets

 

Property, plant and equipment

6

1,011

1,646

Current assets

 

Inventories

7

105,537

100,140

Receivables

8

15,404

108,523

Cash at bank and in hand

9

618

610

 

121,559

209,273

Payables: Amounts falling due within one year

10

(80,223)

(128,439)

Net current assets

 

41,336

80,834

Total assets less current liabilities

 

42,347

82,480

Creditors: Amounts falling due after more than one year

10

(39,483)

(46,251)

Provisions for liabilities

(2,725)

(2,818)

Net assets

 

139

33,411

Equity

 

Called up share capital

11

100

100

Retained earnings

11

39

33,311

Shareholders' funds

 

139

33,411

For the financial year ending 28 February 2023 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 year 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.

 

The Lemon Tree Limited

(Registration number: 03420642)
Statement of Financial Position as at 28 February 2023 (continued)

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 and in accordance with the provisions of FRS 102 Section 1A - small entities.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Income statement.

The financial statements of The Lemon Tree Limited were approved and authorised for issue by the Board on 11 August 2023 and signed on its behalf by:
 

.........................................

IN Rao
Director

 

The Lemon Tree Limited

Notes to the Financial Statements
for the Year Ended 28 February 2023

1

General information

The Lemon Tree Limited (the 'company') is a private company limited by share capital, registered in England and Wales under the Companies Act. The address of the registered office is given on page 1.

2

Accounting policies

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.

Going concern

The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis in preparing the annual financial statements.

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 that as disclosed in the accounting policies certain items are shown at fair value.

The functional currency of the company is considered to be pounds sterling (£) because that is the currency of the primary economic environment in which the company operates. The financial statements are presented in pounds sterling (£).

Key sources of estimation uncertainty and judgements

There are no critical judgements made by the directors in the process of applying the company’s accounting policies which have the most significant effect on the amounts recognised in the financial statements.

Revenue recognition

Revenue comprises the fair value of the consideration received or receivable for the provision of goods in the ordinary course of the company's activities and is net of Value Added Tax.

Taxation

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change 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.

 

The Lemon Tree Limited

Notes to the Financial Statements
for the Year Ended 28 February 2023 (continued)

2

Accounting policies (continued)

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when 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 and that are expected to apply to the reversal of the timing difference.

Property, plant and equipment

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

The cost of property, plant and equipment includes directly attributable incremental costs incurred in their acquisition and installation.

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

Plant and machinery

20%

Office equipment

33%

Goodwill

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. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

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.

Receivables

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

Receivables are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade receivables 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 receivables.

Inventories

Inventories are stated at the lower of cost and estimated selling price after making due allowance for obsolete and slow moving items. Cost is determined using the first-in, first-out (FIFO) method.

 

The Lemon Tree Limited

Notes to the Financial Statements
for the Year Ended 28 February 2023 (continued)

2

Accounting policies (continued)

Payables

Payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Payables 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.

Payables are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

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 income statement 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.

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.

Financial instruments

The company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

 

The Lemon Tree Limited

Notes to the Financial Statements
for the Year Ended 28 February 2023 (continued)

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 6 (2022 - 10).

4

Taxation

Tax charged/(credited) in the income statement

2023
£

2022
£

Current taxation

UK corporation tax

3,599

7,765

Deferred taxation

Arising from origination and reversal of timing differences

(93)

(522)

Tax expense in the income statement

3,506

7,243

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2022 - the same as the standard rate of corporation tax in the UK) of 19% (2022 - 19%).

The differences are reconciled below:

2023
£

2022
£

(Loss)/profit before tax

(4,866)

38,119

Corporation tax at standard rate

(925)

7,243

Effect of expense not deductible in determining taxable profit (tax loss)

4,431

-

Total tax charge

3,506

7,243

 

The Lemon Tree Limited

Notes to the Financial Statements
for the Year Ended 28 February 2023 (continued)

5

Intangible assets

Goodwill
 £

Cost or valuation

At 1 March 2022

115,217

At 28 February 2023

115,217

Amortisation

At 1 March 2022

115,217

At 28 February 2023

115,217

Carrying amount

At 28 February 2023

-

6

Property, plant and equipment

Plant and Machinery
£

Cost or valuation

At 1 March 2022

112,727

At 28 February 2023

112,727

Depreciation

At 1 March 2022

111,081

Charge for the year

635

At 28 February 2023

111,716

Carrying amount

At 28 February 2023

1,011

At 28 February 2022

1,646

 

The Lemon Tree Limited

Notes to the Financial Statements
for the Year Ended 28 February 2023 (continued)

7

Inventories

2023
£

2022
£

Other inventories

105,537

100,140

8

Receivables

2023
£

2022
£

Other receivables

12,922

104,363

Prepayments

2,482

4,160

15,404

108,523

9

Cash and cash equivalents

2023
£

2022
£

Cash at bank

618

610

10

Payables

2023
£

2022
£

Due within one year

Loans and borrowings

25,246

31,684

Trade payable

33,020

42,710

Social security and other taxes

(3,379)

34,401

Corporation tax

11,366

16,664

Other payables

11,135

280

Accruals

2,835

2,700

80,223

128,439

Due after one year

Loans and borrowings

39,483

46,251

 

The Lemon Tree Limited

Notes to the Financial Statements
for the Year Ended 28 February 2023 (continued)

11

Share capital and reserves

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary shares of £1 each

100

100

100

100

         

The company has one class of share capital which carries no right to fixed income.

Reserves
The retained earnings reserve represents cumulative profit or losses net of dividends paid and other adjustments.The company has one class of share capital which carries no right to fixed income.

12

Loans and borrowings

2023
£

2022
£

Non-current loans and borrowings

Bank borrowings

39,483

46,251

2023
£

2022
£

Current loans and borrowings

Bank borrowings

25,246

31,684

The amounts disclosed above under bank borrowings are secured against property owned by the directors up to £73,000.