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REGISTERED NUMBER: 13517273 (England and Wales)















UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

FOR

R S CAR SALES LIMITED

R S CAR SALES LIMITED (REGISTERED NUMBER: 13517273)

CONTENTS OF THE FINANCIAL STATEMENTS
for the Year Ended 31 July 2023










Page

Company Information 1

Balance Sheet 2

Notes to the Financial Statements 4


R S CAR SALES LIMITED

COMPANY INFORMATION
for the Year Ended 31 July 2023







DIRECTORS: Mr R G R Anderson
Mr T M Cheung





REGISTERED OFFICE: 100 Barbirolli Square
Manchester
M2 3BD





REGISTERED NUMBER: 13517273 (England and Wales)





ACCOUNTANTS: KJG
100 Barbirolli Square
Manchester
M2 3BD

R S CAR SALES LIMITED (REGISTERED NUMBER: 13517273)

BALANCE SHEET
31 July 2023

31.7.23 31.7.22
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 4 1,298,340 1,428,170
Tangible assets 5 120,242 10,444
1,418,582 1,438,614

CURRENT ASSETS
Stocks 2,002,187 2,339,112
Debtors 6 692,595 56,825
Cash at bank 304,194 164,694
2,998,976 2,560,631
CREDITORS
Amounts falling due within one year 7 4,242,569 3,694,500
NET CURRENT LIABILITIES (1,243,593 ) (1,133,869 )
TOTAL ASSETS LESS CURRENT LIABILITIES 174,989 304,745

CREDITORS
Amounts falling due after more than one year 8 (89,817 ) (60,597 )

PROVISIONS FOR LIABILITIES (13,460 ) (3,267 )
NET ASSETS 71,712 240,881

CAPITAL AND RESERVES
Called up share capital 10 202 202
Retained earnings 71,510 240,679
SHAREHOLDERS' FUNDS 71,712 240,881

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 July 2023.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 July 2023 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:
(a)ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and
(b)preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

R S CAR SALES LIMITED (REGISTERED NUMBER: 13517273)

BALANCE SHEET - continued
31 July 2023


The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Profit and Loss Account has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 15 April 2024 and were signed on its behalf by:




Mr R G R Anderson - Director



Mr T M Cheung - Director


R S CAR SALES LIMITED (REGISTERED NUMBER: 13517273)

NOTES TO THE FINANCIAL STATEMENTS
for the Year Ended 31 July 2023


1. STATUTORY INFORMATION

R S Car Sales Limited is a private company, limited by shares, registered in England and Wales, registration number 13517273 . The address of the registered office address is 100 Barbirolli Square, Manchester, M2 3BD and principal place of business is Unit 19 Zan Industrial Park, Crewe Road, Sandbach, CW11 4QD.

The presentation currency of the financial statements is the Pound Sterling (£).

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The concept of going concern is an underlying assumption in the production of financial statements. As there are net current liabilities there is a question mark over going concern. Although there is no formal agreement in place the directors have indicated they will continue to provide financial support to the company for at least the next 12 months.

Turnover
Turnover is measured at the fair value of the consideration received or receivable and represents the amount receivable for goods supplied or services rendered, net of discounts and rebates allowed by the Company and value added taxes.

The Company recognises revenue when: (a) the significant risks and rewards of ownership have been transferred to the buyer; (b) the Company retains no continuing involvement or control over the goods; (c) the amount of revenue can be measured reliably; and (d) it is probable that future economic benefits will flow to the entity.

The Company operates a retail used car lot selling a broad range of makes and models to the general public. Sales of cars are recognised at point of delivery to the customer. Retail sales are funded through payment from either a finance company or direct payment from the customer via cash, cheque, or debit card. Financing agreements are between the customer and the finance company.

Goodwill
Goodwill arising from the acquisition of the trade of the partnership, representing the excess of the fair value of the consideration given over the fair value of net assets acquired is recognised in accordance with FRS 6 ‘Acquisitions and Mergers’ as an intangible asset.

Amortisation is calculated to write off the cost of the intangible assets over their useful life of 12 years.

The carrying amounts of the Company's assets are reviewed for impairment when events or changes in circumstances indicate that the carrying amount of the fixed asset may not be recoverable. If any such indication exists, the asset's recoverable amount is estimated and an impairment provision made if appropriate.

R S CAR SALES LIMITED (REGISTERED NUMBER: 13517273)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 July 2023


2. ACCOUNTING POLICIES - continued

Tangible fixed assets
Fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses.

Depreciation on fixed assets is charged to the profit and loss so as to write off their value, over their estimated useful lives, using the following methods:

Computer Equipment25% straight line
Motor vehicles20% straight line

At each balance sheet date, the Company reviews the carrying amounts of its property, plant and equipment to determine whether there is any indication that any items of property, plant and equipment have suffered an impairment loss. If any such indication exists, the recoverable amount of an asset is estimated in order to determine the extent of the impairment loss, if any. Where it is not possible to estimate the recoverable amount of the asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Stocks
Stocks are stated at the lower of invoiced cost and net realisable value on an individual asset basis. Net realisable value is the price at which stocks can be sold in the normal course of business after allowing for the costs of realisation. Where necessary, provisions are made for impairments arising from obsolete, slow moving and defective stocks.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the profit and loss account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

R S CAR SALES LIMITED (REGISTERED NUMBER: 13517273)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 July 2023


2. ACCOUNTING POLICIES - continued

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

Trade and other debtors
Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method, less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such cases, the receivables are stated less impairment losses for bad and doubtful debts.

Trade and other creditors
Trade and other creditors are initially recognised fair value and thereafter stated at amortised cost using the effective interest method unless the effect of discounting would be immaterial, in which case they are stated at cost.

Cash and cash equivalents
Cash and cash equivalents are represented by cash at bank and in hand, and bank borrowings.

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 11 (2022 - 11 ) .

R S CAR SALES LIMITED (REGISTERED NUMBER: 13517273)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 July 2023


4. INTANGIBLE FIXED ASSETS
Goodwill
£   
COST
At 1 August 2022
and 31 July 2023 1,558,000
AMORTISATION
At 1 August 2022 129,830
Charge for year 129,830
At 31 July 2023 259,660
NET BOOK VALUE
At 31 July 2023 1,298,340
At 31 July 2022 1,428,170

5. TANGIBLE FIXED ASSETS
Fixtures
Plant and and Motor Computer
machinery fittings vehicles equipment Totals
£    £    £    £    £   
COST
At 1 August 2022 6,314 7,190 - - 13,504
Additions - - 130,980 3,432 134,412
Reclassification/transfer - (7,190 ) - 7,190 -
At 31 July 2023 6,314 - 130,980 10,622 147,916
DEPRECIATION
At 1 August 2022 1,263 1,797 - - 3,060
Charge for year 1,263 - 20,696 2,655 24,614
Reclassification/transfer - (1,797 ) - 1,797 -
At 31 July 2023 2,526 - 20,696 4,452 27,674
NET BOOK VALUE
At 31 July 2023 3,788 - 110,284 6,170 120,242
At 31 July 2022 5,051 5,393 - - 10,444

R S CAR SALES LIMITED (REGISTERED NUMBER: 13517273)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 July 2023


5. TANGIBLE FIXED ASSETS - continued

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Motor
vehicles
£   
COST
Additions 108,980
At 31 July 2023 108,980
DEPRECIATION
Charge for year 16,663
At 31 July 2023 16,663
NET BOOK VALUE
At 31 July 2023 92,317

6. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.7.23 31.7.22
£    £   
Trade debtors 4,200 -
Other debtors 667,687 9,011
Social security and other - 1,618
VAT 20,708 -
Prepayments - 46,196
692,595 56,825

7. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.7.23 31.7.22
£    £   
Bank loans and overdrafts 20,000 20,000
Hire purchase contracts 41,159 -
Trade creditors 421,569 19,553
Taxation and social security 9,908 99,091
Other creditors 3,749,933 3,555,856
4,242,569 3,694,500

Secured Loans
The stocking loan is a short-term revolving loan agreement. The loan is personally secured by the directors.

R S CAR SALES LIMITED (REGISTERED NUMBER: 13517273)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 July 2023


8. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
31.7.23 31.7.22
£    £   
Bank loans 38,333 60,597
Hire purchase contracts 51,484 -
89,817 60,597

9. SECURED DEBTS

The following secured debts are included within creditors:

31.7.23 31.7.22
£    £   
Bank loans 58,333 80,597

The Bank Loan is secured by a fixed and floating charge over the company's assets.

10. CALLED UP SHARE CAPITAL

Allotted, issued, and fully paid:

Number: Class: Nominal Value: 2023 2022
100 Ordinary A £1.00 £100.00 £100.00
100 Ordinary B £1.00 £100.00 £100.00
1 Ordinary C £1.00 £1.00 £1.00
1 Ordinary D £1.00 £1.00 £1.00
£202.00 £202.00

11. RELATED PARTY DISCLOSURES

During the period the company was charged rent of £38,040 and advanced funds to a company under common control. At the reporting date the company was owed £382,1490 (2022: £9,011). This amount has been included within Other Debtors.

The directors have provided interest free finance to the company during the period. At the reporting date they were owed £2,335,511 (2022: £2,546,230).

The Ultimate Controlling parties are R Anderson and T Cheung by virtue of their majority shareholding in the business.