Company registration number 02536521 (England and Wales)
GOLDEN MEADOWS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
GOLDEN MEADOWS LIMITED
COMPANY INFORMATION
Directors
D S Sheth
N D Sheth
Secretary
N D Sheth
Company number
02536521
Registered office
c/o Ashley King Ltd
68 St. Margarets Road
Edgware
Middlesex
HA8 9UU
Auditor
Ashley King Ltd
68 St. Margarets Road
Edgware
Middlesex
HA8 9UU
Business address
256 Water Road
Wembley
Middlesex
HA0 1HX
GOLDEN MEADOWS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 22
GOLDEN MEADOWS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 31 December 2023.

Review of the business

Turnover for the year ended 31 December 2023 was £36,801,907 compared to £27,784,762 for the previous year and the operating profit for the year was £10,093,517compared to £6,028,523 in the previous year.

 

The directors considered the results to be satisfactory and intend to pursue strategies that would enhance the growth of the company and result in improved performance.

 

Principal risks and uncertainties

The company is not exposed to material levels of credit, liquidity and interest rate risks. The Board monitors the net debt, banking facilities and cashflows on a regular basis and that adequate working capital facilities are in place.

 

Financial instruments

The company policy is to finance its operations largely from retained profits. Additional uncommitted borrowing and overdraft facilities are utilised for short term financing requirements and asset finance as and when required.

 

The financial instruments utilised by the company are borrowings, short-term cash deposits and items such as trade creditors which arise directly from its operations. Borrowing and deposit facilities are on a floating rate basis. The company's policy is not to trade in financial instruments.

Future developments

The directors aim to continue with the management policies which have resulted in the company's steady growth in recent years. They forecast that the year to 31st December 2024 will show further steady growth in revenues.

 

While we remain cautious about the current economic climate, we hope to demonstrate the strength of our business model with the continued support of our employees and successful relationships with our suppliers and customers.

Key performance indicators

The directors use both financial and non-financial performance indicators to monitor performance. The key financial indicators used are sales £36,801,907 (2022: £27,784,762), gross profit £10,694,057(2022: £6,593,681), and balance sheet with net assets of £19,297,677 (2022: £ 12,129,421).

The key non-financial performance indicators used are customer service and satisfaction, and stakeholder relationships. The directors review these with constantly, and take feedback from customers and stakeholders into account when assessing performance.

 

The directors consider that the monitoring of the above-mentioned indicators and using them in decision making is effective.

 

GOLDEN MEADOWS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Other Information

Brexit Impact

The company’s principal market is un the United Kingdom although it has some customers based in the European Union.

Whist the company has had some impact of its trading relationships with the European Union based customers, the net effect is expected to be negligible.

The primary source of products is from non-European Union Countries, and Brexit is expected to have no significant impact on costs, although some delays can be expected in processing of imported goods at ports.

Covid-19 pandemic

The company is optimistic that the measures taken by the Governments around the Globe will result in the return to normal trading conditions and the Board is confident that it will be able adopt workings practices, to safely continue operations.

By order of the board

N D Sheth
Secretary
25 September 2024
GOLDEN MEADOWS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

The directors present their annual report and financial statements for the year ended 31 December 2023.

Principal activities
The principal activity of the company throughout the year continued to be that of wholesale food distribution.
Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

D S Sheth
N D Sheth
Auditor
The auditors, Ashley King Ltd, are deemed to be reappointed under section 487(2) of the Companies Act 2006.
Energy and carbon report

As the company has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.

Statement of disclosure to auditor
So far as the directors are aware, there is no relevant audit information of which the company's auditors are unaware. Additionally, the directors have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company's auditors are aware of that information.
By order of the board
N D Sheth
Secretary
25 September 2024
GOLDEN MEADOWS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

GOLDEN MEADOWS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GOLDEN MEADOWS LIMITED
- 5 -
Opinion

We have audited the financial statements of Golden Meadows Limited (the 'company') for the year ended 31 December 2023 which comprise the profit and loss account, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

GOLDEN MEADOWS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GOLDEN MEADOWS LIMITED (CONTINUED)
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the directors' report.

 

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

 

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

 

 

GOLDEN MEADOWS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GOLDEN MEADOWS LIMITED (CONTINUED)
- 7 -

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

 

We also obtained an understanding of the legal and regulatory frameworks that the Company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. We focused on laws and regulations that could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and relevant tax legislation.

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

 

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Ravi Jagetia
Senior Statutory Auditor
For and on behalf of Ashley King Ltd
25 September 2024
Chartered Accountants
Statutory Auditor
68 St. Margarets Road
Edgware
Middlesex
HA8 9UU
GOLDEN MEADOWS LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
36,801,907
27,784,762
Cost of sales
(26,107,850)
(21,191,081)
Gross profit
10,694,057
6,593,681
Administrative expenses
(600,540)
(565,158)
Operating profit
10,093,517
6,028,523
Interest receivable and fair value movements
716,671
193,056
Interest payable and fair value movements
(1,669)
(184,293)
Profit before taxation
10,808,519
6,037,286
Tax on profit
7
(2,540,263)
(1,140,770)
Profit for the financial year
8,268,256
4,896,516

The profit and loss account has been prepared on the basis that all operations are continuing operations.

GOLDEN MEADOWS LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
8
54,942
65,965
Investments
9
1,907,025
1,460,380
1,961,967
1,526,345
Current assets
Stocks
913,111
529,664
Debtors
10
20,708,040
6,777,220
Cash at bank and in hand
183,207
6,203,426
21,804,358
13,510,310
Creditors: amounts falling due within one year
11
(4,457,602)
(2,895,557)
Net current assets
17,346,756
10,614,753
Total assets less current liabilities
19,308,723
12,141,098
Provisions for liabilities
12
(11,046)
(11,677)
Net assets
19,297,677
12,129,421
Capital and reserves
Called up share capital
14
10,000
10,000
Profit and loss reserves
19,287,677
12,119,421
Total equity
19,297,677
12,129,421
The financial statements were approved by the board of directors and authorised for issue on 25 September 2024 and are signed on its behalf by:
D S Sheth
Director
Company registration number 02536521 (England and Wales)
GOLDEN MEADOWS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
10,000
8,972,905
8,982,905
Year ended 31 December 2022:
Profit and total comprehensive income
-
4,896,516
4,896,516
Dividends
-
(1,750,000)
(1,750,000)
Balance at 31 December 2022
10,000
12,119,421
12,129,421
Year ended 31 December 2023:
Profit and total comprehensive income
-
8,268,256
8,268,256
Dividends
-
(1,100,000)
(1,100,000)
Balance at 31 December 2023
10,000
19,287,677
19,297,677
GOLDEN MEADOWS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
18
(3,220,017)
4,663,409
Interest paid
(1,669)
(1,669)
Income taxes paid
(1,953,227)
(800,000)
Net cash (outflow)/inflow from operating activities
(5,174,913)
3,861,740
Investing activities
Purchase of tangible fixed assets
(7,291)
(7,494)
Proceeds from disposal of tangible fixed assets
-
0
1
Purchase of investments
(446,645)
(254,881)
Interest received
515,026
178,176
Dividends received
13,390
14,880
Other income received from investments
188,255
-
0
Net cash generated from/(used in) investing activities
262,735
(69,318)
Financing activities
Payment of finance leases obligations
(8,041)
(27,927)
Dividends paid
(1,100,000)
(1,750,000)
Net cash used in financing activities
(1,108,041)
(1,777,927)
Net (decrease)/increase in cash and cash equivalents
(6,020,219)
2,014,495
Cash and cash equivalents at beginning of year
6,203,426
4,188,931
Cash and cash equivalents at end of year
183,207
6,203,426
GOLDEN MEADOWS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
1
Accounting policies
Company information

Golden Meadows Limited is a private company limited by shares incorporated in England and Wales. The registered office is c/o Ashley King Ltd, 68 St. Margarets Road, Edgware, Middlesex, HA8 9UU.

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 disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

 

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 £.

1.2
Going concern

The Company’s activities, together with the factors likely to affects its future development, performance and position are set out in the Strategic report on page 1-2.true

 

In light of the Company’s financial resource and the impact of Coronavirus on the financial statements, the Directors believe that the Company is well positioned to successfully manage its business risks and have a reasonable expectation that the Company has adequate resource to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the Annual Report and Accounts.

1.3
Turnover
Turnover represents amounts receivable for goods, net of VAT and trade discounts Turnover is recognised when goods are either physically delivered or invoiced and in transit to customers.
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:

Fixtures, fittings & equipment
25% reducing balance
Motor vehicles
25% reducing balance

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
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

GOLDEN MEADOWS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the 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 an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.7
Stocks

Stock is valued at the lower of cost and net realisable value.

1.8
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.

1.9
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally 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.

GOLDEN MEADOWS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

GOLDEN MEADOWS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

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.

1.10
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 taxation is provided at appropriate rates on all timing differences using the liability method only to the extent that, in the opinion of the directors, there is a reasonable probability that a liability or asset will crystallise in the foreseeable future.
1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

GOLDEN MEADOWS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.13
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

1.14
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.

1.15
Trade and other receivables
Trade debtors are stated after deduction of provisions for bad debts computed on the basis of an assessment of the particular risks.
1.16
Trade and other payables

The company's policy on payment of creditors is to abide by the terms agreed prior to the agreement of purchase. The company normally discharges its obligations to creditors upon the stock being satisfactorily delivered.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Wholesale
36,801,907
27,784,762
GOLDEN MEADOWS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
3
Turnover and other revenue
(Continued)
- 17 -
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
27,851,407
20,077,551
Rest of the world
8,950,500
7,707,211
36,801,907
27,784,762
2023
2022
£
£
Other revenue
Interest income
703,281
178,176
Dividends received
13,390
14,880
4
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
23,215
25,000
5
Employees

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

2023
2022
Number
Number
Total
11
10
6
Directors' remuneration and dividends
2023
2022
£
£
Remuneration paid to directors
60,000
60,000
Dividends paid to directors
1,100,000
1,750,000

The directors represent the key management and their compensation details are shown above.

7
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
2,540,894
1,146,568
GOLDEN MEADOWS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
7
Taxation
2023
2022
£
£
(Continued)
- 18 -
Deferred tax
Origination and reversal of timing differences
(631)
(5,798)
Total tax charge
2,540,263
1,140,770

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
10,808,519
6,037,286
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
2,702,130
1,147,084
Tax effect of expenses that are not deductible in determining taxable profit
1,303
(6,314)
Tax effect of income not taxable in determining taxable profit
(3,347)
-
0
Effect of change in corporation tax rate
(159,823)
-
0
Taxation charge for the year
2,540,263
1,140,770
8
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 January 2023
203,942
Additions
7,291
At 31 December 2023
211,233
Depreciation and impairment
At 1 January 2023
137,977
Depreciation charged in the year
18,314
At 31 December 2023
156,291
Carrying amount
At 31 December 2023
54,942
At 31 December 2022
65,965
GOLDEN MEADOWS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
9
Fixed asset investments
2023
2022
£
£
Other investments other than loans
1,907,025
1,460,380
Movements in fixed asset investments
Investments
£
Cost or valuation
At 1 January 2023
1,460,380
Additions
258,390
Valuation changes
188,255
At 31 December 2023
1,907,025
Carrying amount
At 31 December 2023
1,907,025
At 31 December 2022
1,460,380
10
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
3,878,412
3,250,836
Other debtors
16,829,628
3,526,384
20,708,040
6,777,220

 

 

 

 

 

11
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
2,684,854
1,689,803
Corporation tax
1,578,472
990,805
Other creditors
194,276
214,949
4,457,602
2,895,557
GOLDEN MEADOWS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
11
Creditors: amounts falling due within one year
(Continued)
- 20 -

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments. These obligations are secured against the individual asset in question.

 

12
Provisions for liabilities
2023
2022
£
£
Deferred tax liabilities
13
11,046
11,677
13
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2023
2022
Balances:
£
£
ACAs
11,046
11,677
14
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
10,000
10,000
10,000
10,000
15
Financial commitments, guarantees and contingent liabilities

The bank has issued a guarantee in favour of HM Revenue & Customs for £300,000. Should the bank be called upon the guarantee the company will have a commitment to the bank for this amount.

 

GOLDEN MEADOWS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
16
Related party transactions
Remuneration of key management personnel
2023
2022
£
£
Aggregate compensation
60,000
60,000
Other information

During the year the company paid £ 92,012(2022 - £ 80,072) for rent, rates and other miscellaneous expenses to a company in which the directors have significant influence.

 

There was a loan between the company and another company in, in which the directors have significant influence. The outstanding loan at the balance sheet date was of £ 14,728,573(2022 - £ 2,872,341) which is unsecured and repayable on demand. This amount includes Interest charged at the rate of 5-6% per annum

 

 

17
Directors' transactions

Dividends totalling £1,100,000 (2022 - £1,750,000) were paid in the year in respect of shares held by the company's directors.

18
Cash (absorbed by)/generated from operations
2023
2022
£
£
Profit for the year after tax
8,268,256
4,896,516
Adjustments for:
Taxation charged
2,540,263
1,140,770
Finance costs and FV loss
1,669
184,293
Investment income and FV (Gain)
(716,671)
(193,056)
(Gain)/loss on disposal of tangible fixed assets
-
1,408
Depreciation and impairment of tangible fixed assets
18,314
21,989
Movements in working capital:
Increase in stocks
(383,447)
(61,216)
Increase in debtors
(13,930,820)
(1,092,766)
Increase/(decrease) in creditors
982,419
(234,529)
Cash (absorbed by)/generated from operations
(3,220,017)
4,663,409
GOLDEN MEADOWS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
19
Analysis of changes in net funds
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
6,203,426
(6,020,219)
183,207
Obligations under finance leases
(45,323)
8,041
(37,282)
6,158,103
(6,012,178)
145,925
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