Registered number
06400906
Garcha Brothers Ltd
Filleted Accounts
31 October 2023
Garcha Brothers Ltd
Registered number: 06400906
Balance Sheet
as at 31 October 2023
Notes 2023 2022
£ £
Fixed assets
Intangible assets 3 2,917,510 2,917,510
Tangible assets 4 721,150 476,725
Investments 5 1,570,000 -
5,208,660 3,394,235
Current assets
Stocks 27,155 25,440
Debtors 6 1,319,629 1,383,739
Cash at bank and in hand 299,205 290,040
1,645,989 1,699,219
Creditors: amounts falling due within one year 7 (1,799,722) (1,573,917)
Net current (liabilities)/assets (153,733) 125,302
Total assets less current liabilities 5,054,927 3,519,537
Creditors: amounts falling due after more than one year 8 (3,006,318) (1,623,360)
Provisions for liabilities (2,372) (2,372)
Net assets 2,046,237 1,893,805
Capital and reserves
Called up share capital 100 100
Profit and loss account 2,046,137 1,893,705
Shareholders' funds 2,046,237 1,893,805
The directors are satisfied that the company is entitled to exemption from the requirement to obtain an audit under section 477 of the Companies Act 2006.
The members have not required the company to obtain an audit in accordance with section 476 of the Act.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.
The accounts have been prepared and delivered in accordance with the special provisions applicable to companies subject to the small companies regime. The profit and loss account has not been delivered to the Registrar of Companies.
Mandeep Singh Garcha
Director
Approved by the board on 3 September 2024
Garcha Brothers Ltd
Notes to the Accounts
for the year ended 31 October 2023
1 Accounting policies
Basis of preparation
The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard).
Turnover
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.
Intangible fixed assets
Intangible fixed assets are measured at cost less accumulative amortisation and any accumulative impairment losses.
Tangible fixed assets
Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows:
Plant and machinery 15% reducing balance method
Leasehold improvements 10% on cost
Investments
Investments in subsidiaries, associates and joint ventures are measured at cost less any accumulated impairment losses. Listed investments are measured at fair value. Unlisted investments are measured at fair value unless the value cannot be measured reliably, in which case they are measured at cost less any accumulated impairment losses. Changes in fair value are included in the profit and loss account.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised.
Debtors
Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.
Creditors
Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.
Taxation
A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. 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, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.
Leased assets
A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term.
Pensions
Contributions to defined contribution plans are expensed in the period to which they relate.
2 Employees 2023 2022
Number Number
Average number of persons employed by the company 152 251
3 Intangible fixed assets £
Goodwill:
Cost
At 1 November 2022 2,956,289
At 31 October 2023 2,956,289
Amortisation
At 1 November 2022 38,779
At 31 October 2023 38,779
Net book value
At 31 October 2023 2,917,510
At 31 October 2022 2,917,510
4 Tangible fixed assets
Land and buildings improvements Plant and machinery etc Leasehold Total
£ £ £ £
Cost
At 1 November 2022 139,490 784,801 120,000 1,044,291
Additions - 325,703 - 325,703
At 31 October 2023 139,490 1,110,504 120,000 1,369,994
Depreciation
At 1 November 2022 55,796 511,770 - 567,566
Charge for the year 13,949 67,329 - 81,278
At 31 October 2023 69,745 579,099 - 648,844
Net book value
At 31 October 2023 69,745 531,405 120,000 721,150
At 31 October 2022 83,694 273,031 120,000 476,725
5 Investments
Other
investments
£
Cost
Additions 1,570,000
At 31 October 2023 1,570,000
6 Debtors 2023 2022
£ £
Other debtors 1,319,629 1,383,739
7 Creditors: amounts falling due within one year 2023 2022
£ £
Bank loans and overdrafts 644,466 723,564
Trade creditors 290,032 157,805
Taxation and social security costs 203,981 238,266
Other creditors 661,243 454,282
1,799,722 1,573,917
8 Creditors: amounts falling due after one year 2023 2022
£ £
Bank loans 3,006,318 1,623,360
9 Related party transactions
GARCHA INVESTMENTS LTD 2023 2022
Both companies have common directors and shareholders.
The company has given a loan to Garcha Investments Ltd,
Included within other debtors.
23,900 23,900
MOKA LTD 2023 2022
Both companies have common directors and shareholders.
The company has given a loan
to Moka Ltd, Included within other debtors.
447,344 720,477
Garchai Ltd 2023 2022
Both companies have common directors and shareholders.
The company has given a loan
to Garchai Ltd, Included within other debtors.
250,000 250,000
G&GK Ltd 2023 2022
Both companies have common directors and shareholders.
The company has given a loan
to G&GK Ltd, Included within other debtors.
443,167 389,362
Beast Pizza Ltd 2023 2022
Both companies have common directors and shareholders.
During the year the company has given a loan
to Beast Pizza Ltd, Included within other creditors.
447,344 -
Global Midlands Furniture Ltd 2023 2022
Both companies have common directors and shareholders.
During the year the company has given a loan
to Global Midlands Furniture Ltd, Included within other debtors.
44,958 -
10 Other investments - unlisted
Beast Pizza Ltd
The company purchased 100% share capital of Beast Pizza Ltd, a company registered in England and Wales.
11 Other information
Garcha Brothers Ltd is a private company limited by shares and incorporated in England. Its registered office is:
38
Carver Street
Birmingham
England
B1 3AS
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