Company Registration No. 11037327 (England and Wales)
HAND MADE BRAIN LTD
Unaudited accounts
for the year ended 31 May 2024
HAND MADE BRAIN LTD
Unaudited accounts
Contents
HAND MADE BRAIN LTD
Company Information
for the year ended 31 May 2024
Directors
Dong Chen
Wei Zhang
Company Number
11037327 (England and Wales)
Registered Office
3-5 BELL LANE
LONDON
E1 7LA
ENGLAND
HAND MADE BRAIN LTD
Statement of financial position
as at 31 May 2024
Intangible assets
1,400
1,600
Tangible assets
257,865
30,734
Cash at bank and in hand
284,913
663,011
Creditors: amounts falling due within one year
(486,841)
(459,016)
Net current assets
175,999
253,057
Total assets less current liabilities
435,264
285,391
Creditors: amounts falling due after more than one year
(10,506)
(20,752)
Net assets
424,758
264,639
Called up share capital
100
100
Profit and loss account
424,658
264,539
Shareholders' funds
424,758
264,639
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. The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.
The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
These accounts have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with the provisions of FRS 102 Section 1A - Small Entities. The profit and loss account has not been delivered to the Registrar of Companies.
The financial statements were approved by the Board of Directors and authorised for issue on 22 February 2025 and were signed on its behalf by
Dong Chen
Director
Company Registration No. 11037327
HAND MADE BRAIN LTD
Notes to the Accounts
for the year ended 31 May 2024
HAND MADE BRAIN LTD is a private company, limited by shares, registered in England and Wales, registration number 11037327. The registered office is 3-5 BELL LANE, LONDON, E1 7LA, ENGLAND.
2
Compliance with accounting standards
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 Section 1A small entities ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ and the Companies Act 2006.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
The principal accounting policies adopted in the preparation of the financial statements are set out below and have remained unchanged from the previous year, and also have been consistently applied within the same accounts.
The accounts have been prepared under the historical cost convention as modified by the revaluation of certain fixed assets.
The accounts are presented in £ sterling.
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
The company recognises revenue when the amount of revenue can be measured reliably, when it is probable that future economic benefits will flow to the entity and when specific criteria have been met for each of the company's activities.
Intangible fixed assets are stated at cost less accumulated depreciation and any accumulated impairment losses. It is amortised over its estimated life of five years and ten years using the straight-line method.
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new expectations.
Goodwill, being the amount paid in connection with the acquisition of a business in 2018, is being amortised evenly over its estimated useful life of five years.
HAND MADE BRAIN LTD
Notes to the Accounts
for the year ended 31 May 2024
Tangible fixed assets and depreciation
Tangible fixed assets are initially stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of property, plant and equipment includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Land & buildings
included with freehold property and which can be separated, is not depreciated..
Plant & machinery
25% on cost
Motor vehicles
25% on reducing balance.
Fixtures & fittings
15% on reducing balance.
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible 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.
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
The carrying amount of inventories sold is recognised as an expense in the period in which the related revenue is recognised.
Classification
The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties and loans to related parties and investments in non-puttable ordinary shares.
Recognition and measurement
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivables and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debts instruments that are payable or receivable within one year, typically trade payable or receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration, excepted to be paid or received. However if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.
Investments in non-convertible preference shares and in non-puttable ordinary and preference shares are measured:
i. At fair value with changes recognised in profit or loss if the shares are publicly traded or their fair value can otherwise be measured reliably;
ii. At cost less impairment for all other investments.
HAND MADE BRAIN LTD
Notes to the Accounts
for the year ended 31 May 2024
The tax expense for the period comprises current and deferred tax. Tax is recognised in the income statement, except that a change attributable to an item of income or expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised directly in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Deferred tax assets and liabilities are generally recognised for all timing differences between the recognition of gains and losses in the financial statements and recognition in the tax computation. A net deferred tax asset is recognised only if it can be regarded as more likely than not that there will be suitable taxable profit from which the future reversal of the underlying timing differences can be deducted.
Deferred tax assets and liabilities are calculated at the tax rates expected to be effective at the time the timing differences are expected to reverse. Differed tax assets and liabilities are not discounted.
Deferred tax is charged or credited in the Income Statement, except when it related to items charge or credited directly to equity, in which case the deferred tax is also dealt with in equity.
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 payments obligations.
The contributions are recognised as an expense in the Statement of comprehensive income when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position.
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied in recognised as a liability.
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Intangible fixed assets
Goodwill
Other
Total
At 1 June 2023
1,999
2,700
4,699
At 31 May 2024
1,999
2,700
4,699
At 1 June 2023
1,999
1,100
3,099
Charge for the year
-
200
200
At 31 May 2024
1,999
1,300
3,299
At 31 May 2024
-
1,400
1,400
At 31 May 2023
-
1,600
1,600
HAND MADE BRAIN LTD
Notes to the Accounts
for the year ended 31 May 2024
5
Tangible fixed assets
Land & buildings
Plant & machinery
Motor vehicles
Fixtures & fittings
Total
Cost or valuation
At cost
At cost
At cost
At cost
At 1 June 2023
4,734
-
-
52,364
57,098
Additions
42,289
113,861
137,795
-
293,945
At 31 May 2024
47,023
113,861
137,795
52,364
351,043
At 1 June 2023
-
-
-
26,364
26,364
Charge for the year
-
28,465
34,449
3,900
66,814
At 31 May 2024
-
28,465
34,449
30,264
93,178
At 31 May 2024
47,023
85,396
103,346
22,100
257,865
At 31 May 2023
4,734
-
-
26,000
30,734
Amounts falling due within one year
Other debtors
340,985
43,062
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Creditors: amounts falling due within one year
2024
2023
Bank loans and overdrafts
10,246
9,994
Taxes and social security
37,538
60,608
Other creditors
105,773
366,525
8
Creditors: amounts falling due after more than one year
2024
2023
9
Average number of employees
During the year the average number of employees was 32 (2023: 32).