Company registration number 04217868 (England and Wales)
INSPECTION LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
PAGES FOR FILING WITH REGISTRAR
INSPECTION LIMITED
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 11
INSPECTION LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
6
398,326
436,069
Current assets
Stocks
12,972
15,949
Debtors
7
1,010,870
1,025,447
Cash at bank and in hand
18,884
82,347
1,042,726
1,123,743
Creditors: amounts falling due within one year
8
(594,216)
(610,466)
Net current assets
448,510
513,277
Total assets less current liabilities
846,836
949,346
Creditors: amounts falling due after more than one year
9
(232,970)
(331,001)
Provisions for liabilities
11
(26,282)
(24,655)
Net assets
587,584
593,690
Capital and reserves
Called up share capital
13
2
2
Profit and loss reserves
14
587,582
593,688
Total equity
587,584
593,690
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 15 August 2024 and are signed on its behalf by:
Mr H Jivraj
Director
Company registration number 04217868 (England and Wales)
INSPECTION LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 April 2022
2
83,680
523,630
607,312
Year ended 31 March 2023:
Loss
-
-
(27,477)
(27,477)
Other comprehensive income:
Tax relating to other comprehensive income
-
13,855
13,855
Total comprehensive income
-
13,855
(27,477)
(13,622)
Transfers
-
(97,535)
97,535
-
Balance at 31 March 2023
2
593,688
593,690
Year ended 31 March 2024:
Loss and total comprehensive income
-
-
(6,106)
(6,106)
Balance at 31 March 2024
2
587,582
587,584
INSPECTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
1
Accounting policies
Company information
Inspection Limited is a private company limited by shares incorporated in England and Wales. The registered office is 133 High Street, Barnet, Hertfordshire, EN5 5UZ.
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 £.
The financial statements have been prepared on the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
The financial performance of the company is set out in the report of the directors and in the statement of profittrue or loss and the other comprehensive income. The financial position of the company is set out in the statement of financial position.
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover comprises revenue recognised by the company in respect of goods supplied during the period, exclusive of Value Added Tax. Turnover from restaurants is recognised when payment is tendered by the customer at the point of sale.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Leasehold land and buildings
Over the remaining life of lease
Plant and equipment
10% on reducing balance method
Fixtures and fittings
25% on reducing balance method
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
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.
INSPECTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 4 -
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 and recognised in other comprehensive income.
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.
1.6
Stocks
Stocks are stated at the lower of cost and net realisable value.
1.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, and bank overdrafts.
1.8
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.
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.
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.
INSPECTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 5 -
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.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the fair value of the cash or other resources received or receivable, net of direct issue 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 tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
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.
1.13
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
INSPECTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 6 -
1.14
There were no changes in comparative figures during the year.
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.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Useful lives of property, plant and equipment
Management reviews the useful lives, depreciation methods and residual values of the items of property, plant and equipment on a regular basis. During the financial year, the directors determined no significant changes in the useful lives and residual values. The carrying amounts of property, plant and equipment are disclosed in note 6.
3
Turnover
An analysis of the company's turnover is as follows:
2024
2023
£
£
Turnover analysed by geographical market
Borehamwood store
1,325,959
1,281,761
Kingston store
1,469,932
1,526,274
2,795,891
2,808,035
All turnover arose in the United Kingdom.
4
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
42
41
INSPECTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 7 -
5
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
5,423
4,107
Deferred tax
Origination and reversal of timing differences
1,627
4,462
Total tax charge
7,050
8,569
The actual charge for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit/(loss) before taxation
944
(18,908)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
236
(3,593)
Tax effect of expenses that are not deductible in determining taxable profit
436
Permanent capital allowances in excess of depreciation
5,033
7,700
Deferred tax
1,627
4,462
Marginal relief
(282)
Taxation charge for the year
7,050
8,569
In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:
2024
2023
£
£
Deferred tax arising on:
Revaluation of property
-
(13,855)
INSPECTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
6
Tangible fixed assets
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Total
£
£
£
£
Cost
At 1 April 2023
608,073
399,701
310,680
1,318,454
Additions
15,314
15,314
At 31 March 2024
608,073
415,015
310,680
1,333,768
Depreciation and impairment
At 1 April 2023
388,130
205,393
288,862
882,385
Depreciation charged in the year
26,641
20,962
5,454
53,057
At 31 March 2024
414,771
226,355
294,316
935,442
Carrying amount
At 31 March 2024
193,302
188,660
16,364
398,326
At 31 March 2023
219,943
194,308
21,818
436,069
7
Debtors
2024
2023
Amounts falling due within one year:
£
£
Amounts owed by group undertakings
938,101
994,941
Other debtors
54,306
14,896
Prepayments and accrued income
18,463
15,610
1,010,870
1,025,447
8
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans
10
102,429
102,016
Trade creditors
106,578
108,202
Amounts owed to group undertakings
14,124
14,165
Corporation tax
5,423
4,107
Other taxation and social security
82,038
83,129
Other creditors
16,896
509
Accruals and deferred income
266,728
298,338
594,216
610,466
Amounts due to group undertakings are unsecured, interest free and repayable on demand.
INSPECTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -
9
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans
10
232,970
331,001
10
Loans and overdrafts
2024
2023
£
£
Bank loans
335,399
433,017
Payable within one year
102,429
102,016
Payable after one year
232,970
331,001
The bank loans are secured by:
Composite company limited guarantee dated 20 July 2012 given by group companies.
Fixed and floating debenture charges over all present freehold and leasehold property, other debts, chattels, goodwill and uncalled capital, both present and future dated 19 July 2012.
The loans are subject to monthly repayments and commercial rates of interest.
11
Provisions for liabilities
2024
2023
£
£
Deferred tax liabilities
12
26,282
24,655
12
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
2024
2023
Balances:
£
£
Accelerated Capital Allowances
24,655
34,048
Revaluations
-
(13,855)
Property and Equipment
1,627
4,462
26,282
24,655
INSPECTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
12
Deferred taxation
(Continued)
- 10 -
2024
Movements in the year:
£
Liability at 1 April 2023
24,655
Charge to profit or loss
1,627
Liability at 31 March 2024
26,282
13
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
2
2
2
2
14
Profit and loss reserves
2024
2023
£
£
At the beginning of the year
593,688
523,630
Loss for the year
(6,106)
(27,477)
Transfer from revaluation reserve
97,535
At the end of the year
587,582
593,688
15
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Shilpa Chheda
Statutory Auditor:
KLSA LLP
Date of audit report:
15 August 2024
16
Financial commitments, guarantees and contingent liabilities
There are unlimited cross guarantees in place between group companies in respect of group borrowings.
INSPECTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
17
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2024
2023
£
£
Within one year
116,500
116,500
Between two and five years
377,542
419,156
In over five years
623,014
698,219
1,117,056
1,233,875
18
Related party transactions
The company has taken advantage of the exemption available in FRS 102 (s33 "Related Party Disclosure"), whereby it has not disclosed transactions with the parent company or any wholly owned subsidiary undertakings of the group.
Included in other creditors is directors account amounting to £3,444 (2023: £Nil).
19
Parent company
The ultimate parent company is Goldtique Limited, a company registered in England and Wales.
The largest group in which the entity is consolidated is Goldtique Limited. The copies of the consolidated financial statements can be obtained from 133 High Street, Barnet, Hertfordshire EN5 5UZ.
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