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Registration number: 07013975

President Watch Company Limited

Unaudited Filleted Financial Statements

for the Year Ended 30 April 2023

 

President Watch Company Limited

Contents

Company Information

1

Balance Sheet

2 to 3

Notes to the Unaudited Financial Statements

4 to 11

 

President Watch Company Limited

Company Information

Directors

Mr M Ahmed

Mr H Mahboob

Registered office

10 New Goulston Street
London
E1 7QD

Accountants

Aventus Partners Limited
Hygeia Building
Ground Floor
66-68 College Road
Harrow
Middlesex
HA1 1BE

 

President Watch Company Limited

(Registration number: 07013975)
Balance Sheet as at 30 April 2023

Note

2023
£

2022
£

Fixed assets

 

Intangible assets

4

-

137

Tangible assets

5

1,144

1,438

 

1,144

1,575

Current assets

 

Stocks

6

55,836

95,534

Debtors

7

20,187

7,116

Cash at bank and in hand

 

15,164

37,989

 

91,187

140,639

Creditors: Amounts falling due within one year

8

(46,717)

(87,141)

Net current assets

 

44,470

53,498

Total assets less current liabilities

 

45,614

55,073

Creditors: Amounts falling due after more than one year

8

(36,670)

(46,670)

Net assets

 

8,944

8,403

Capital and reserves

 

Called up share capital

10

100

100

Retained earnings

8,844

8,303

Shareholders' funds

 

8,944

8,403

For the financial year ending 30 April 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.

 

President Watch Company Limited

(Registration number: 07013975)
Balance Sheet as at 30 April 2023 (continued)

These financial statements have been prepared and delivered 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. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Profit and Loss Account.

These financial statements were approved and authorised for issue by the Board on 22 January 2024 and signed on its behalf by:
 

.........................................
Mr H Mahboob
Director

 

President Watch Company Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 April 2023

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:
10 New Goulston Street
London
E1 7QD
United Kingdom

These financial statements were authorised for issue by the Board on 22 January 2024.

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 smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

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 and presentational currency is GBP Sterling (£), being the currency of the primary economic environment in which the company operates in. The amounts are presented rounded to the nearest pound.

Going concern

The financial statements have been prepared on a going concern basis, as in the opinion of the directors they shall continue to financially support the company in the foreseeable future to meet the liabilities as they fall due.

Revenue recognition

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

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.

Government grants

Government grants are accounted under the accruals model as permitted by FRS102. Grants of revenue nature are recognised in the financial statements in the same period as the related expenditure.

 

President Watch Company Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 April 2023 (continued)

2

Accounting policies (continued)

Foreign currency transactions and balances

Transactions in foreign currencies are recorded at the exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the closing rates at the balance sheet date. All exchange differences are included in the profit and loss account.

Tangible assets

Tangible assets are stated in the balance sheet 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

Fixtures and fittings

20% per annum on reducing balance

Office equipment

25% per annum on reducing balance

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.

Intangible assets

Separately acquired trademarks and licences are shown at historical cost.

Trademarks are recognised at fair value at the acquisition date.

Trademarks have a finite useful life and are carried at cost less accumulated amortisation and any accumulated impairment losses.

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

Over 10 years

Trade marks

Over 10 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.

 

President Watch Company Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 April 2023 (continued)

2

Accounting policies (continued)

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. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. 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 receivables.

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.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

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 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 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.

 

President Watch Company Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 April 2023 (continued)

2

Accounting policies (continued)

Financial instruments

Classification
The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties and loans from related parties.

 Recognition and measurement
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other debtors and creditors, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method.

Debt instruments that are payable or receivable within one year, typically trade creditors or debtors, are
measured, initially and subsequently, at the undiscounted amount of the cash or other consideration, expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms of financed at a rate of interest that is not a market rate or in case of an out-right short term loan not at a market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.


 Impairment
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss if recognised in the Profit and loss account.

For financial assets measured as amortised cost, the impairment loss is measured as the difference between an asset’s carrying amount and the present value of estimated cash flows discounted at the asset’s original effective interest rate. If a financial asset has a variable interest rate, the discounted rate for measuring any impairment loss is the current effective interest rate determined under the contract.

Financial assets and liabilities are offset and the net amount reported in the Balance sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

3

Staff numbers

The average monthly number of persons employed by the company (including directors) during the year, was 3 (2022: 3).

 

President Watch Company Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 April 2023 (continued)

4

Intangible assets

Goodwill
 £

Trademarks
 £

Total
£

Cost

At 1 May 2022

5,825

5,793

11,618

At 30 April 2023

5,825

5,793

11,618

Amortisation

At 1 May 2022

5,825

5,656

11,481

Amortisation charge

-

137

137

At 30 April 2023

5,825

5,793

11,618

Carrying amount

At 30 April 2023

-

-

-

At 30 April 2022

-

137

137

 

President Watch Company Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 April 2023 (continued)

5

Tangible assets

Fixtures and fittings
£

Office equipment
£

Total
£

Cost or valuation

At 1 May 2022

12,074

308

12,382

At 30 April 2023

12,074

308

12,382

Depreciation

At 1 May 2022

10,766

178

10,944

Charge for the year

262

32

294

At 30 April 2023

11,028

210

11,238

Carrying amount

At 30 April 2023

1,046

98

1,144

At 30 April 2022

1,308

130

1,438

6

Stocks

2023
£

2022
£

Finished goods and goods for resale

55,836

95,534

7

Debtors

2023
£

2022
£

Trade debtors

7,937

2,116

Prepayments

7,250

-

Other debtors

5,000

5,000

20,187

7,116

 

President Watch Company Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 April 2023 (continued)

8

Creditors

Creditors: amounts falling due within one year

Note

2023
£

2022
£

Due within one year

 

Bank loans and overdrafts

9

10,000

10,000

Trade creditors

 

20,503

52,202

Taxation and social security

 

15,473

20,677

Other creditors

 

-

141

Corporation tax payable

 

600

3,062

Directors current account

 

141

1,059

 

46,717

87,141

Creditors: amounts falling due after more than one year

Note

2023
£

2022
£

Due after one year

 

Loans and borrowings

9

36,670

46,670

9

Loans and borrowings

2023
£

2022
£

Current loans and borrowings

Bank borrowings

10,000

10,000

2023
£

2022
£

Non-current loans and borrowings

Bank borrowings

21,670

31,670

Other borrowings

15,000

15,000

36,670

46,670

Bank borrowings consists of a government-backed Bounce Back Loan with a repayment term of 6 years from June 2021. The interest rate applicable to the loan is 2.5% with the first 12 months interest being covered by the government.

 

President Watch Company Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 April 2023 (continued)

9

Loans and borrowings (continued)

The other borrowings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.

10

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary Shares of £1 each

100

100

100

100

         

11

Related party transactions

Directors' remuneration

The directors' remuneration for the year was as follows:

2023
£

2022
£

Remuneration

15,585

32,968

Loans from related parties

2022

Key management
£

At start of period

6,059

Repaid

(5,000)

At end of period

1,059

2023

Key management
£

At start of period

1,059

Advanced

141

Repaid

(1,059)

At end of period

141

12

Ultimate controlling party

There is not one ultimate controlling party.