Registered number:
04729793
LOTUS CORPORATION LIMITED
UNAUDITED
FINANCIAL STATEMENTS
INFORMATION FOR FILING WITH THE REGISTRAR
For the Year Ended
30 September 2020
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LOTUS CORPORATION LIMITED
Registered number:
04729793
BALANCE SHEET
As at
30 September 2020
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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Provisions for liabilities
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LOTUS CORPORATION LIMITED
Registered number:
04729793
BALANCE SHEET
(CONTINUED)
As at
30 September 2020
The Directors consider that the Company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the Company to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.
The Directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The
financial statements have been prepared 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 financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of income and retained earnings in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
28 June 2021
.
The notes on pages 3 to 13 form part of these financial statements.
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LOTUS CORPORATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 30 September 2020
The Company is a private company, limited by shares, incorporated and domiciled in England within the United Kingdom, registration number 04729793. The Company's registered office is Lyndon House RMY, 62 Hagley Road, Edgbaston, Birmingham, West Midlands, United Kingdom, B16 8PE.
The financial statements are presented in sterling which is the functional currency of the company and the financial statements are rounded to the nearest £1.
2.
Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of
Financial Reporting Standard 102, the Financial Reporting Standard applicable in
the UK and the Republic of Ireland and the Companies Act 2006
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Cash flow
Under Financial Reporting Standard 102, the company is exempt from the requirement to prepare a cash flow statement on the grounds that it qualifies as a small company.
The directors have made a write off of intercompany loan balances during the year and as such the company now has net liabilities at the balance sheet date. Post year end the directors personally repaid the third party loan for this company and as such the main creditor of this company at the date of signing the report is the directors who intend to continue to support the company for the forseeable future and therefore have prepared the accounts on a going concern basis.
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Foreign currency translation
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Functional and presentation currency
The Company's functional and presentational currency is GBP.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
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LOTUS CORPORATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 30 September 2020
2.
Accounting policies (continued)
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Sale of goods
Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
∙
the Company has transferred the significant risks and rewards of ownership to the buyer;
∙
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
∙
the amount of revenue can be measured reliably;
∙
it is probable that the Company will receive the consideration due under the transaction; and
∙
the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of Income and Retained Earnings in the same period as the related expenditure.
Interest income is recognised in profit or loss using the effective interest method.
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LOTUS CORPORATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 30 September 2020
2.
Accounting policies (continued)
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Current and deferred taxation
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The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised 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 balance sheet date in the countries where the Company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance Sheet date, except that:
∙
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
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LOTUS CORPORATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 30 September 2020
2.
Accounting policies (continued)
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
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S/Term Leasehold Property
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The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted averagebasis. Work in progress and finished goods include labour and attributable overheads.
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
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LOTUS CORPORATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 30 September 2020
2.
Accounting policies (continued)
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Provisions for liabilities
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Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Balance Sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance Sheet.
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected 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 in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
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The average monthly number of employees, including directors, during the year was
3
(2019 -
3
)
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LOTUS CORPORATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 30 September 2020
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S/Term Leasehold Property
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Charge for the year on owned assets
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The net book value of land and buildings may be further analysed as follows:
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LOTUS CORPORATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 30 September 2020
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Finished goods and goods for resale
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Amounts owed by group undertakings
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Prepayments and accrued income
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LOTUS CORPORATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 30 September 2020
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Other taxation and social security
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Accruals and deferred income
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The following liabilities were secured:
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Details of security provided:
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Bank loans are secured by a debenture incorporating a fixed and floating charge over the property of the company, held by Barclays Bank PLC.
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LOTUS CORPORATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 30 September 2020
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Creditors: Amounts falling due after more than one year
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The following liabilities were secured:
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Details of security provided:
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Bank loans are secured by a debenture incorporating a fixed and floating charge over the property of the company, held by Barclays Bank PLC.
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The aggregate amount of liabilities repayable wholly or in part more than five years after the balance sheet date is:
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LOTUS CORPORATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 30 September 2020
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Analysis of the maturity of loans is given below:
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Amounts falling due within one year
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Amounts falling due 1-2 years
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Amounts falling due 2-5 years
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Amounts falling due after more than 5 years
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Charged to profit or loss
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LOTUS CORPORATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 30 September 2020
10.
Deferred taxation (continued)
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The deferred tax balance is made up as follows:
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Accelerated capital allowances
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Allotted, called up and fully paid
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2
(2019 -
2
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Ordinary
shares of £
1.00
each
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12.
Other financial commitments and operating lease commitments
As at 30 September 2020 the company had total commitments of £5,420 (2019 - £Nil).
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Related party transactions
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As at 30 September 2020 amounts were due to the directors of £3,332 (2019 - £880 due from). Loans are interest free and repayable on demand.
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Post balance sheet events
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On 12 January 2021 the company repaid one of its loans in full. The balance of this loan at the year end was £184,439, of this £15,653 is held within creditors due within one year and £168,787 is held within creditors due in more than one year.
The ultimate and immediate parent company is K3Boss Group Limited a company registered in England and Wales. The registered office of the parent company is Lyndon House, RMY, 62 Hagley Road, Edgbaston, Birmingham, West Midlands, United Kingdom, B16 8PE.
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