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Report of the Directors and |
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Audited Financial Statements for the Year Ended 31 December 2021 |
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BALLCROWN LIMITED |
REGISTERED NUMBER:
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Report of the Directors and |
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Audited Financial Statements for the Year Ended 31 December 2021 |
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for |
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BALLCROWN LIMITED |
BALLCROWN LIMITED (Registered number: 03880958) |
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Contents of the Financial Statements |
for the Year Ended 31 December 2021 |
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Page |
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Company Information | 1 |
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Report of the Directors | 2 |
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Report of the Independent Auditors | 4 |
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Statement of Comprehensive Income | 7 |
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Balance Sheet | 8 |
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Statement of Changes in Equity | 9 |
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Cash Flow Statement | 10 |
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Notes to the Cash Flow Statement | 11 |
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Notes to the Financial Statements | 12 |
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BALLCROWN LIMITED |
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Company Information |
for the Year Ended 31 December 2021 |
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DIRECTORS: |
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SECRETARY: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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SENIOR STATUTORY AUDITOR: |
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INDEPENDENT AUDITORS : |
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Chartered Accountants and Statutory Auditors |
30B Southgate |
Chichester |
West Sussex |
PO19 1DP |
United Kingdom |
BALLCROWN LIMITED (Registered number: 03880958) |
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Report of the Directors |
for the Year Ended 31 December 2021 |
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The Directors of the Company ("Directors") present their report with the audited financial statements of Ballcrown Limited ("Company") for the year ended 31 December 2021 ("Year"). |
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PRINCIPAL ACTIVITY |
The principal activity of the Company in the Year has not changed and was that of purchasing and re-selling film, television and video distribution rights. |
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DIRECTORS |
The Directors shown below have held office during the whole of the period from 1 January 2021 to the date of this report. |
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Dr. LAM Kin Ngok, Peter |
Mr. LUI Siu Tsuen, Richard |
Mr. CHEW Fook Aun |
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Mr. LUI Siu Tsuen, Richard holds one share in the Company as nominee. The said share is held in trust for Media Asia Distribution Ltd. Mr. LUI Siu Tsuen, Richard has no beneficial interest in this share. |
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GOING CONCERN |
The Company has made losses before other comprehensive income of £7,753 in this Year and losses in prior years and its liabilities exceed its assets. As a result, it is dependent on the ongoing financial support of its parent company for its continued trading. |
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STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The Directors are responsible for preparing the Report of the Directors and the financial statements of the Company in accordance with applicable law and regulations. |
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Company law requires the Directors to prepare financial statements of the Company 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 year. In preparing these financial statements, the Directors are required to: |
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- select suitable accounting policies and then apply them consistently; |
- make judgements and accounting estimates that are reasonable and prudent; and |
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business. |
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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. |
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STATEMENT AS TO DISCLOSURE OF INFORMATION TO INDEPENDENT AUDITORS |
So far as the Directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the Company's independent auditors are unaware, and each Director has taken all the steps that he ought to have taken as a Director in order to make himself aware of any relevant audit information and to establish that the Company's independent auditors are aware of that information. |
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BALLCROWN LIMITED (Registered number: 03880958) |
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Report of the Directors |
for the Year Ended 31 December 2021 |
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This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies. |
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ON BEHALF OF THE BOARD: |
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Report of the Independent Auditors to the Members of |
BALLCROWN LIMITED (Registered number: 03880958) |
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Opinion |
We have audited the financial statements of BALLCROWN LIMITED (the 'Company') for the year ended 31 December 2021 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of 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). |
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In our opinion the financial statements: |
- | give a true and fair view of the state of the Company's affairs as at 31 December 2021 and of its loss for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
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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 Auditors' 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 the provisions available for small entities, in the circumstances set out in note twelve to the financial statements, 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. |
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Material uncertainty related to going concern |
We draw attention to note 13 in the financial statements, which indicates that the Company incurred a loss before other comprehensive income of £7,753 during the year ended 31 December 2021 and, as of that date, the Company's current liabilities exceeded its total assets by £144,289. As stated in note 13, this position indicates that a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern and is subject to the ongoing support from its parent company. Our opinion is not modified in respect of this matter. |
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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. |
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Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
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Other information |
The directors are responsible for the other information. The other information comprises the information in the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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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. |
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In connection with our audit of the financial statements, 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 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. |
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Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Report of the Directors has been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
BALLCROWN LIMITED (Registered number: 03880958) |
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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 Report of the Directors. |
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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: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit; or |
- | the directors were not entitled to take advantage of the small companies' exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Directors. |
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Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page two, 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 necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
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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. |
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Auditors' 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 a Report of the Auditors 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. |
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The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
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We obtained an understanding of the legal and regulatory frameworks that are applicable to the Company and determined that the most significant were to be the applicable financial reporting frameworks and relevant tax compliance regulations. |
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We assessed the risks of material misstatement in respect of fraud, including understanding where and how fraud might occur and raised relevant enquiries with management. |
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Based on the results of our risk assessment, we designed our audit procedures to identify non-compliance with the laws and regulations identified above |
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A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Report of the Independent Auditors to the Members of |
BALLCROWN LIMITED (Registered number: 03880958) |
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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 a Report of the Auditors 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. |
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for and on behalf of
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Chartered Accountants and Statutory Auditors |
30B Southgate |
Chichester |
West Sussex |
PO19 1DP |
United Kingdom |
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BALLCROWN LIMITED (Registered number: 03880958) |
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Statement of Comprehensive |
Income |
for the Year Ended 31 December 2021 |
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31.12.21 | 31.12.20 |
Notes | £ | £ |
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TURNOVER |
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Cost of sales |
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GROSS PROFIT |
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Administrative expenses |
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OPERATING LOSS | 3 | ( |
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Interest receivable and similar income |
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LOSS BEFORE TAXATION | ( |
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Tax on loss | 4 |
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LOSS FOR THE FINANCIAL YEAR | ( |
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OTHER COMPREHENSIVE (LOSS)/INCOME |
Revaluations to presentational currency | ( |
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Income tax relating to other comprehensive
(loss)/income |
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OTHER COMPREHENSIVE
(LOSS)/INCOME FOR THE YEAR, NET OF INCOME TAX |
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TOTAL COMPREHENSIVE LOSS FOR
THE YEAR |
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BALLCROWN LIMITED (Registered number: 03880958) |
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Balance Sheet |
31 December 2021 |
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31.12.21 | 31.12.20 |
Notes | £ | £ |
CURRENT ASSETS |
Debtors | 6 |
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Cash at bank |
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CREDITORS |
Amounts falling due within one year | 7 |
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NET CURRENT LIABILITIES | ( |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
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CAPITAL AND RESERVES |
Called up share capital | 8 |
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Retained earnings | 9 | ( |
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SHAREHOLDERS' FUNDS | ( |
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The financial statements were approved by the Board of Directors and authorised for issue on
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BALLCROWN LIMITED (Registered number: 03880958) |
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Statement of Changes in Equity |
for the Year Ended 31 December 2021 |
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Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
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Balance at 1 January 2020 |
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Changes in equity |
Total comprehensive loss | - | ( |
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Balance at 31 December 2020 |
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Changes in equity |
Total comprehensive loss | - | ( |
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Balance at 31 December 2021 |
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BALLCROWN LIMITED (Registered number: 03880958) |
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Cash Flow Statement |
for the Year Ended 31 December 2021 |
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31.12.21 | 31.12.20 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | ( |
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Tax paid |
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Net cash from operating activities | ( |
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Cash flows from investing activities |
Interest received |
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Net cash from investing activities |
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Decrease in cash and cash equivalents | (4,718 | ) | (197,315 | ) |
Cash and cash equivalents at beginning of
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238,139 |
Effect of foreign exchange rate changes | 8 | 6,209 |
Cash and cash equivalents at end of year | 2 | 42,323 | 47,033 |
BALLCROWN LIMITED (Registered number: 03880958) |
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Notes to the Cash Flow Statement |
for the Year Ended 31 December 2021 |
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1. | RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31.12.21 | 31.12.20 |
£ | £ |
Loss before taxation | ( |
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Other comprehensive (loss)/income items | (1,256 | ) | 3,776 |
Unrealised gain on bank balance | (8 | ) | (6,209 | ) |
Finance income | (13 | ) | (247 | ) |
(9,030 | ) | (7,476 | ) |
Decrease in trade and other debtors |
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Decrease in trade and other creditors | ( |
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Cash generated from operations | ( |
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2. | CASH AND CASH EQUIVALENTS |
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The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
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Year ended 31 December 2021 |
31.12.21 | 1.1.21 |
£ | £ |
Cash and cash equivalents | 42,323 | 47,033 |
Year ended 31 December 2020 |
31.12.20 | 1.1.20 |
£ | £ |
Cash and cash equivalents | 47,033 | 238,139 |
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3. | ANALYSIS OF CHANGES IN NET FUNDS |
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At 1.1.21 | Cash flow | At 31.12.21 |
£ | £ | £ |
Net cash |
Cash at bank | 47,033 | (4,710 | ) | 42,323 |
47,033 | (4,710 | ) | 42,323 |
Total | 47,033 | (4,710 | ) | 42,323 |
BALLCROWN LIMITED (Registered number: 03880958) |
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Notes to the Financial Statements |
for the Year Ended 31 December 2021 |
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1. | STATUTORY INFORMATION |
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BALLCROWN LIMITED ("Company") is a private company, limited by shares, registered in England and Wales. The Company's registered number and registered office address can be found on the Company Information page. |
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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Turnover |
Turnover represents the net value of distribution rights earned in the year on the basis of the income being recognised when the film materials have been delivered to the licensees. The amount of the income recognised is limited to the amount of deposits or subsequent license fees received in the year, and is subject to due allowance for contingencies. |
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Taxation |
Taxation for the year comprises current and deferred tax. 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 equity. |
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Current or deferred taxation assets and liabilities are not discounted. |
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Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
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Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
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Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
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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. |
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Foreign currencies |
The Company's functional currency is US Dollars but it elects to present its accounts in sterling, this being the currency of the country in which it is incorporated. Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences between transactional currencies and the functional currency are taken into account in arriving at the operating result. Exchange differences between the functional currency and the presentational currency are recognised in other comprehensive income/loss. |
BALLCROWN LIMITED (Registered number: 03880958) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 December 2021 |
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3. | OPERATING LOSS |
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The operating loss is stated after charging/(crediting): |
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31.12.21 | 31.12.20 |
£ | £ |
Auditors' remuneration |
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Taxation compliance services |
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Other non-audit services |
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Foreign exchange differences |
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4. | TAXATION |
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Analysis of the tax charge |
The tax charge on the loss for the year was as follows: |
31.12.21 | 31.12.20 |
£ | £ |
Current tax: |
Foreign with-holding tax | - | 13 |
Tax on loss |
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Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
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31.12.21 | 31.12.20 |
£ | £ |
Loss before tax | ( |
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Loss multiplied by the standard rate of corporation tax in the UK of
(2020 - |
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( |
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Effects of: |
Restriction on loss relief |
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Foreign with-holding tax |
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Total tax charge | - | 13 |
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Tax effects relating to effects of other comprehensive income |
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31.12.21 |
Gross | Tax | Net |
£ | £ | £ |
Revaluations to presentational currency | ( |
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31.12.20 |
Gross | Tax | Net |
£ | £ | £ |
Revaluations to presentational currency |
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- | 3,776 |
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5. | EMPLOYEES |
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The average number of the Company's employees during the year was NIL (2020 - NIL). |
BALLCROWN LIMITED (Registered number: 03880958) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 December 2021 |
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6. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.21 | 31.12.20 |
£ | £ |
Trade debtors |
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VAT |
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7. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.21 | 31.12.20 |
£ | £ |
Customer overpayments | 574 | 570 |
Amounts owed to group undertakings |
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Accrued expenses |
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8. | CALLED UP SHARE CAPITAL |
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Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.12.21 | 31.12.20 |
value: | £ | £ |
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Ordinary | £1 | 2 | 2 |
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9. | RESERVES |
Retained |
earnings |
£ |
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At 1 January 2021 | ( |
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Deficit for the year | ( |
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Exchange loss regarding
presentational currency |
(1,256 |
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At 31 December 2021 | ( |
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10. | ULTIMATE PARENT COMPANY |
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The Company is a wholly-owned subsidiary of Media Asia Distribution Ltd. which was incorporated in the British Virgin Islands. |
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The ultimate holding company of the Company is Lai Sun Garment (International) Limited which was incorporated in Hong Kong and whose shares are listed and traded on the Main Board of The Stock Exchange of Hong Kong Limited. |
BALLCROWN LIMITED (Registered number: 03880958) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 December 2021 |
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11. | RELATED PARTY DISCLOSURES |
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During the year under review, the Company undertook transactions on normal commercial terms with the
following companies which are |
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Fees paid for services |
2021 | 2020 |
£ | £ |
Media Asia Distribution Ltd. |
Purchases | 72,086 | 90,108 |
Distribution representative fees | 728 | 910 |
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Commission receivable |
2021 | 2020 |
£ | £ |
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Media Asia Distribution Ltd. | 1,456 | 1,821 |
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Creditor |
Amounts owed to related parties as at | 31.12.21 | 31.12.20 |
£ | £ |
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Media Asia Holdings Ltd. | (253,992 | ) | (260,277 | ) |
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12. | FRC ETHICAL STANDARD - PROVISIONS AVAILABLE FOR SMALL ENTITIES |
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In common with many other businesses of this size and nature, the Company uses their independent auditors to prepare and submit returns to the tax authorities and assist with the preparation of the financial statements. |
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13. | GOING CONCERN |
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As noted in the Report of the Directors, the Company has made a loss before other comprehensive income of £7,753 in this year and losses in prior years. Its liabilities exceed its assets by £144,289. As a result, it is dependent on the ongoing financial support of its parent company for its continued trading. |