REGISTRAR OF COMPANIES |
Registration number:
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Hawk Farming Limited
Contents
Accountants' Report |
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Balance Sheet |
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Notes to the Unaudited Financial Statements |
Chartered Accountants' Report to the Board of Directors on the Preparation of the Unaudited Statutory Accounts of
Hawk Farming Limited
for the Year Ended 31 March 2021
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of Hawk Farming Limited for the year ended 31 March 2021 as set out on pages 2 to 11 from the company's accounting records and from information and explanations you have given us.
As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at http://www.icaew.com/regulation.
This report is made solely to the Board of Directors of Hawk Farming Limited, as a body, in accordance with the terms of our engagement letter dated 29 April 2019. Our work has been undertaken solely to prepare for your approval the accounts of Hawk Farming Limited and state those matters that we have agreed to state to the Board of Directors of Hawk Farming Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Hawk Farming Limited and its Board of Directors as a body for our work or for this report.
It is your duty to ensure that Hawk Farming Limited has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and profit of Hawk Farming Limited. You consider that Hawk Farming Limited is exempt from the statutory audit requirement for the year.
We have not been instructed to carry out an audit or a review of the accounts of Hawk Farming Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory accounts.
Chartered Accountants
Montgomery Way
Rosehill Estate
CARLISLE
CA1 2RW
Hawk Farming Limited
(Registration number: SC162973)
Balance Sheet as at 31 March 2021
Note |
2021 |
2020 |
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Fixed assets |
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Tangible assets |
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Investment property |
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Other financial assets |
389,168 |
302,141 |
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Current assets |
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Stocks |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
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( |
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Net current assets |
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Total assets less current liabilities |
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Provisions for liabilities |
( |
( |
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Net assets |
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Capital and reserves |
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Allotted, called up and fully paid share capital |
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Profit and loss account |
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Total equity |
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Hawk Farming Limited
(Registration number: SC162973)
Balance Sheet as at 31 March 2021 (continued)
For the financial year ending 31 March 2021 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
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The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. |
These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.
Approved and authorised by the
.........................................
A K Hamilton
Director
Hawk Farming Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 March 2021
General information |
The company is a private company limited by share capital, incorporated in Scotland.
The address of its registered office is:
Accounting policies |
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 have been prepared in accordance with Financial Reporting Standard 102 Section 1A - '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.
Revenue recognition
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 reliably measured; it is probable that future economic benefits will flow to the entity; and specific criteria have been met for each of the company's activities.
Government grants
Government grants such as the basic payment scheme are included in the profit and loss account when all the necessary conditions for receipt have been met.
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Hawk Farming Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 March 2021 (continued)
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
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 is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when 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 and that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
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:
Asset class |
Depreciation method and rate |
Buildings |
10% reducing balance basis |
Plant and equipment |
15% reducing balance basis |
Motor vehicles |
25% reducing balance basis |
Buildings relate to tenants improvements on land owned by the directors. As the long term intention is for the business operation to continue, it is deemed a true and fair view to depreciate the assets at 10% reducing balance over their useful economic life.
Investment property
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Hawk Farming Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 March 2021 (continued)
Trade debtors
Trade debtors are amounts due from customers for the sale of goods or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
Stocks
Trading stock is valued at the lower of cost and net realisable value, after due regard for obsolete and slow moving stocks. The cost of livestock represents the purchase cost plus any additional costs of rearing the animal. Net realisable value is based on selling price less anticipated selling costs. Crop stock is valued at fair value less any anticipated costs to sell.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method where due after more than one year.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Hawk Farming Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 March 2021 (continued)
Financial instruments
Classification
Recognition and measurement
Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.
Impairment
Staff numbers |
The average number of persons employed by the company (including directors) during the year, was
Hawk Farming Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 March 2021 (continued)
Tangible assets |
Land and buildings |
Plant and equipment |
Motor vehicles |
Total |
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Cost or valuation |
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At 1 April 2020 |
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Additions |
- |
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- |
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At 31 March 2021 |
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Depreciation |
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At 1 April 2020 |
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Charge for the year |
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At 31 March 2021 |
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Carrying amount |
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At 31 March 2021 |
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At 31 March 2020 |
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Investment properties |
£ |
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At 1 April 2020 |
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At 31 March 2021 |
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The directors are of the opinion that cost is a reasonable estimate of fair value of investment properties.
There has been no valuation of investment properties by an independent valuer.
Hawk Farming Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 March 2021 (continued)
Other financial assets (current and non-current) |
2021 |
2020 |
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Non-current financial assets |
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Financial assets at fair value through profit and loss |
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Financial assets at fair value through profit and loss |
Total |
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Non-current financial assets |
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Cost or valuation |
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At 1 April 2020 |
302,141 |
302,141 |
Additions |
58,895 |
58,895 |
Fair value adjustments |
87,204 |
87,204 |
Disposals |
(59,072) |
(59,072) |
At 31 March 2021 |
389,168 |
389,168 |
Carrying amount |
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At 31 March 2021 |
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389,168 |
At 31 March 2020 |
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302,141 |
Debtors |
2021 |
2020 |
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Trade debtors |
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Other debtors |
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Hawk Farming Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 March 2021 (continued)
Creditors |
2021 |
2020 |
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Due within one year |
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Trade creditors |
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Taxation and social security |
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Corporation tax liability |
11,210 |
7,636 |
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Other creditors |
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Related party transactions |
Transactions with directors |
2021 |
At 1 April 2020 |
Advances |
Repayments |
Other payments |
Dividends credited |
Interest |
At 31 March 2021 |
A K Hamilton |
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Loan |
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( |
- |
(37,500) |
4,807 |
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J M Hamilton |
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Loan |
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( |
- |
(37,500) |
5,352 |
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2020 |
At 1 April 2019 |
Advances |
Repayments |
Other payments |
Dividends credited |
Interest |
At 31 March 2020 |
A K Hamilton |
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Loan |
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( |
- |
(37,500) |
5,116 |
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J M Hamilton |
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Loan |
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( |
- |
(37,500) |
5,695 |
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Directors' advances are repayable on demand.
Interest has been charged at a rate of 2.25% on advances to directors.
Hawk Farming Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 March 2021 (continued)
Financial instruments |
Financial assets measured at fair value
Listed Equity Investments
Listed equity investments have been valued at quoted market prices in an active market.
The fair value is £389,168
(2020 - £302,141)
and the change in value included in profit or loss is
£
87,204
(2020 - £(40,620)).