Charms Enterprise Ltd 31/05/2024 iXBRL

Company registration number: 08532706

Charms Enterprise Ltd

Unaudited filleted financial statements

31 May 2024

Charms Enterprise Ltd

Contents

Directors and other information

Statement of financial position

Notes to the financial statements

Charms Enterprise Ltd

Directors and other information


	Director	Mr Krishanthan Selvam


	Company number	08532706


	Registered office	797 Harrow Road
		Sudbury Town
		Wembley
		Middlesex
		HA0 2LP


	Accountants	Accountancy Solutions
		797 Harrow Road
		Sudbury Town
		Wembley
		HA0 2LP

Charms Enterprise Ltd

Statement of financial position

31 May 2024

		2024		2023
	Note	£	£	£	£

Fixed assets
Tangible assets	5	34,635		39,458
		_______		_______
			34,635		39,458

Current assets
Stocks		64,565		59,876
Debtors	6	205,922		128,571
Cash at bank and in hand		7,811		41,290
		_______		_______
		278,298		229,737
Creditors: amounts falling due
within one year	7	( 164,837)		( 113,230)
		_______		_______
Net current assets			113,461		116,507
			_______		_______
Total assets less current liabilities			148,096		155,965

Creditors: amounts falling due
after more than one year	8		( 29,403)		( 52,012)
			_______		_______
Net assets			118,693		103,953
			_______		_______

Capital and reserves
Called up share capital			100		100
Profit and loss account			118,593		103,853
			_______		_______
Shareholders funds			118,693		103,953
			_______		_______

For the year ending 31 May 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's responsibilities:

- The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476;

- The director acknowledges their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In accordance with section 444 of the Companies Act 2006, the statement of income and retained earnings has not been delivered.

These financial statements were approved by the board of directors and authorised for issue on 24 May 2025 , and are signed on behalf of the board by:

Mr Krishanthan Selvam

Director

Company registration number: 08532706

Charms Enterprise Ltd

Notes to the financial statements

Year ended 31 May 2024

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Charms Enterprise Ltd, 797 Harrow Road, Sudbury Town, Wembley, Middlesex, HA0 2LP.

2. Statement of compliance

These financial statements have been prepared in compliance with the provisions of FRS 102, Section 1A, 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Turnover

Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

Taxation

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in the statement of comprehensive income, except to the extent that it relates to items recognised in other comprehensive income or directly in capital and reserves. In this case, tax is recognised in other comprehensive income or directly in capital and reserves, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Tangible assets

tangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in capital and reserves, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in capital and reserves in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in capital and reserves in respect of that asset, the excess shall be recognised in profit or loss.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:


Short leasehold property	-	over life of the lease
Fittings fixtures and equipment	-	10 %	reducing balance

If there is an indication that there has been a significant change in depreciation rate, useful life or residual value of tangible assets, the depreciation is revised prospectively to reflect the new estimates.

Impairment

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. When it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stocks to their present location and condition.

Financial instruments

A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets or either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised in finance costs in profit or loss in the period in which it arises.

4. Employee numbers

The average number of persons employed by the company during the year amounted to 13 (2023: 13 ).

5. Tangible assets

	Short leasehold property	Fixtures, fittings and equipment	Total
	£	£	£
Cost
At 1 June 2023 and 31 May 2024	19,487	61,740	81,227
	_______	_______	_______
Depreciation
At 1 June 2023	18,512	23,257	41,769
Charge for the year	975	3,848	4,823
	_______	_______	_______
At 31 May 2024	19,487	27,105	46,592
	_______	_______	_______
Carrying amount
At 31 May 2024	-	34,635	34,635
	_______	_______	_______

At 31 May 2023	975	38,483	39,458
	_______	_______	_______

6. Debtors

	2024	2023
	£	£
Trade debtors	39,712	5,375
Other debtors	166,210	123,196
	_______	_______
	205,922	128,571
	_______	_______

7. Creditors: amounts falling due within one year

	2024	2023
	£	£
Bank loans and overdrafts	63,416	19,448
Trade creditors	10,982	38,381
Corporation tax	48,932	47,907
Social security and other taxes	10,388	3,894
Other creditors	31,119	3,600
	_______	_______
	164,837	113,230
	_______	_______

8. Creditors: amounts falling due after more than one year

	2024	2023
	£	£
Bank loans and overdrafts	22,056	42,043
Other creditors	7,347	9,969
	_______	_______
	29,403	52,012
	_______	_______

The bounce back loan is for a term of six years from draw down. This loan is secured under UK government Bounce Back Loan guarantee scheme, under the terms of this loan the first year interest is paid by UK government.

9. Directors advances, credits and guarantees

	During the year the director entered into the following advances and credits with the company:

2024
		Balance brought forward	Advances /(credits) to the director	Balance o/standing
		£	£	£
	Mr Krishanthan Selvam	80,322	32,160	112,482
		_______	_______	_______

2023
		Balance brought forward	Advances /(credits) to the director	Balance o/standing
		£	£	£
	Mr Krishanthan Selvam	57,017	23,305	80,322
		_______	_______	_______

10. Controlling party

Mr K Selvam and his spouse controls the entire issued share capital of the company.