Central Otago Pinot Noir Ltd

Transcription

1 Special Purpose Financial Report Audit Tax Advisory

2 Special Purpose Financial Report Contents Company Directory Statement of Financial Performance Statement of Movements in Equity Statement of Financial Position Statement of Accounting Policies Notes to the Financial Statements Compilation Report Supplementary Schedule Schedule of Fixed Assets and Depreciation 14.

3 Company Directory As At 31 July 2017 Nature of Business Business Location Registered Office Directors Accountants Bankers Tax Status Incorporation Number Solicitors Central Otago Pinot Noir Ltd has been established to generically market Central Otago wine and promote the Central Otago wine brand. P O Box 155 Cromwell 21 Brownston Street Wanaka Stephen Farquharson Angus Bradshaw Crowe Horwath (NZ) Limited 21 Brownston Street Wanaka 9305 ANZ The Mall P O Box 4 Cromwell Standard Company DN/ Goldsmith Law 5th Floor Forsyth Barr House PO Box 40 Dunedin Shareholder Central Otago Winegrowers Association Incorporated 250 Total Ordinary 250 Date of Incorporation 12 August

4 Statement of Financial Performance Notes Trading Account Pinot Noir Celebrations Income Pinot - Member Registrations - 57,750 Pinot - Delegate Registrations - 112,594 Pinot - Sponsorship - 71,500 Total Income - 241,844 Direct Expenses Accommodation & Meals - 21,162 Airfares - 14,510 General expenses - 1,831 Event Co-ordination (internal) - 12,848 Bank fees and credit card charges - 2,275 Venue & Equipment Hire - 38,235 Committee Expenses - 1,088 Event Co-Ordination (external) - 16,962 Promotional and Print - 12,302 Transport expenses - 16,681 Catering expenses - 96,133 Wine expenses - 8,594 Total Direct Expenses - 242,620 Gross Surplus/(Deficit) - (776) -0.3% These statements should be read in conjunction with the Notes to the Financial Statements and have been compiled without undertaking an audit or review and is subject to the Accountant's compilation report. 2

5 Statement of Financial Performance Notes Trading Account Generic Promotions & Membership Fees Promotion Income Promotion - Wine writer visits 3,525 1,115 Promotion - Wine tastings - 9,485 Promotion - Registrations 108,590 79,318 Total Income 112,115 89,918 Promotions Expenses Airfares 28,451 15,386 Accommodation & Meals 14,687 12,460 General expenses Event Co-ordination (internal) 30,858 20,652 Bank fees and credit card charges Venue & Equipment Hire - 9,579 Committee Expenses 5, Freight and handling Event Co-Ordination (external) 603 2,975 Promotional and Print 3,962 2,482 Transport expenses 5,978 5,930 Event Supplies & Hireage Theming Expenses 9,004 - Catering expenses 18,518 18,520 Wine expenses 1, Total Promotions Expenses 120,113 88,836 Gross Surplus (7,998) 1, % 32.5% These statements should be read in conjunction with the Notes to the Financial Statements and have been compiled without undertaking an audit or review and is subject to the Accountant's compilation report. 3

6 Statement of Financial Performance Notes Gross Surplus/(Deficit) Pinot Noir Celebrations - (776) Gross Surplus Generic Promotions & Membership Fees (7,998) 1,082 Gross Surplus (7,998) 306 Overhead Income Glass Hire 465 Promotion - Sponsorship 27,500 23,500 Promotion - COPNL membership fee 88,000 41,600 Total Income 115,965 65,100 Expenses Overhead Expenses Accountancy fees 3,671 3,659 Bank Charges Computer Expenses Directors and meeting expenses Contract Wages - Project 4,935 - Insurance 3, Interest - Bank Overdraft - 31 Kiwisaver Contributions 2,725 - Legal expenses 3,247 1,275 Mileage expenses 83 - Office Rental 24,138 - Office Utilities and expenses 4,140 - Photocopier Lease Printing and stationery Salary - GM 32,858 12,650 Staff Development Telephone and tolls 1,011 1,053 Wages - Finance 8,003 10,934 Wages & Salaries - 17,159 Wages - Event Co-ordinator Generic 16,909 - Web site expenses Non Cash Items 109,340 48,608 Depreciation 3,479 2,422 3,479 2,422 Total Expenses 112,819 51,030 Net Operating Deficit (4,852) 14,376 Other Income Interest received 2,625 3,111 Total Other Income 2,625 3,111 These statements should be read in conjunction with the Notes to the Financial Statements and have been compiled without undertaking an audit or review and is subject to the Accountant's compilation report. 4

7 Statement of Financial Performance Notes Net Operating Surplus/(Deficit) Before Taxation (2,227) 17,487 Provision for taxation 1-4,895 Total Taxation - 4,895 Net Surplus/(Deficit) (2,227) 12,592 These statements should be read in conjunction with the Notes to the Financial Statements and have been compiled without undertaking an audit or review and is subject to the Accountant's compilation report. 5

8 Statement of Movements in Equity Notes Opening Equity 143, ,329 Net Surplus/(Deficit) (2,227) 12,592 Total Recognised Revenues & Expenses (2,227) 12,592 Closing Equity 141, ,921 These statements should be read in conjunction with the Notes to the Financial Statements and have been compiled without undertaking an audit or review and is subject to the Accountant's compilation report. 6

9 Statement of Financial Position As At 31 July 2017 Notes Current Assets Serious Saver ,268 - Serious Saver ANZ - 00 a/c 20,615 25,550 ANZ - 23 a/c 12, ,089 ANZ Visa Paypal Accounts Receivable 76,416 63,273 Income Tax Receivable 1 5,022 2,212 Prepayments - Pinot Noir ,240 - Prepayments 8,120 1,724 Inventory For Sale 3,439 3,439 Resident withholding tax adjustment Total Current Assets 264, ,529 Non-Current Assets Property, Plant and Equipment 3 9,505 4,995 Total Non Current Assets 9,505 4,995 Total Assets 273, ,524 Current Liabilities ANZ Visa 2,269 - Accounts payable 57,771 52,928 Promotional Fund 66,000 45,000 GST Payable 5, Total Current Liabilities 131,981 98,603 Net Assets 141, ,921 Shareholders Equity Share Capital 5 63,944 63,944 Retained Surplus 77,750 79,977 Total Shareholder's Equity 141, ,921 These statements should be read in conjunction with the Notes to the Financial Statements and have been compiled without undertaking an audit or review and is subject to the Accountant's compilation report. 7

10 Statement of Financial Position As At 31 July 2017 Notes The Directors present the approved financial statements. APPROVED For and on behalf of the Board. Angus Bradshaw Date Stephen Farquharson Date These statements should be read in conjunction with the Notes to the Financial Statements and have been compiled without undertaking an audit or review and is subject to the Accountant's compilation report. 8

11 Statement of Accounting Policies Reporting Entity Central Otago Pinot Noir Ltd is a company registered under the Companies Act 1993 and was incorporated on 12 August Basis of Preparation These financial statements have been prepared in accordance with the Special Purpose Framework for use by For-Profit Entities published by the New Zealand Institute of Chartered Accountants. These financial statements have been prepared for the company's owners and to meet the company's income tax requirements. Measurement Base The measurement base adopted is historical cost. The accrual accounting basis has been used unless otherwise stated and the financial statements have been prepared on a going concern basis. Property, Plant and Equipment Property, plant and equipment are recorded at cost, less any accumulated depreciation. Depreciation Depreciation is charged to the Statement of Financial Performance at the same rates as are allowed by the Income Tax Act 2007 over the estimated useful lives of each item of property, plant and equipment. The method and rates applied are as follows: Asset Class Method Rate Plant and equipment Diminishing Value % Furniture and fittings Diminishing Value 16.0% Office equipment Diminishing Value % Income Tax The income tax expense recognised in the statement of financial performance is the estimated income tax payable in the current year, adjusted for any differences between the estimated and actual income tax payable in prior years. Trade and Other Receivables Accounts Receivable are recorded at expected realisable values as determined by the Directors. Goods and Services Tax (GST) All revenue and expense transactions are recorded net of GST. Where applicable, all assets and liabilities have been stated net of GST with the exception of receivables and payables which are stated inclusive of GST. Changes in Accounting Policies There have been no changes in accounting policies. All accounting policies have been applied on a basis consistent with those used in previous years. These statements should be read in conjunction with the Notes to the Financial Statements and have been compiled without undertaking an audit or review and is subject to the Accountant's compilation report. 9

12 Notes to the Financial Statements 1 Tax Reconciliation Operating Surplus Before Tax (2,227) 17,488 Adjusted Net Surplus/(Deficit) Before Tax (2,227) 17,488 Taxable Income/(Loss To Carry Forward) (2,227) 17,488 Tax Expense - 4,897 Resident Withholding Tax Paid (453) (544) Provisional Tax Paid (3,046) (2,188) Accrued 3rd instalment of provisional tax (1,523) (4,376) Income Tax Refund as per Tax Return (5,022) (2,212) Brought Forward Tax Liability (Asset) (2,212) 477 Terminal tax paid - (477) Tax refunds received 2,212 - Income Tax Refund (5,022) (2,212) Losses Carried Forward are Made up of: Business Losses 2,227-2,227-2 Imputation Credits Balance at beginning of year 26,628 21,494 Plus Terminal Tax Paid Provisional Tax Paid 3,046 2,188 Resident Withholding Tax Paid Prior Year Provisional Tax Paid 4,376 1,925 Other Imputation Credits Less Tax Refunded 8,540 5,134 (2,212) - Balance at end of year 32,956 26,628 The closing balance represents imputation credits available to be attached to any future dividend distributions from the company's reserves, subject to certain shareholder continuity provisions. This account is not reflected in the company's financial statements. These notes have been compiled without undertaking an audit or review engagement and are subject to the Accountant's compilation report. 11

13 Notes to the Financial Statements Property, Plant and Equipment Cost Depreciation Accumulated Net Book Property, Plant and Equipment 2017 Charged Depreciation Value Plant and equipment 41,354 1,386 Furniture and fittings 1, Office equipment 21,019 1,977 63,460 3,479 38,843 2, ,635 6,384 53,955 9,505 Cost Depreciation Accumulated Net Book Property, Plant and Equipment 2016 Charged Depreciation Value Plant and equipment 41,354 1,903 Furniture and fittings 1, Office equipment 13, ,471 2,422 37,457 3, , ,476 4,995 4 Depreciation Plant And Equipment 1,386 1,903 Furniture And Fittings Office Equipment 1, Total Depreciation 3,479 2,422 5 Capital Issued and Paid in Capital 250 Ordinary shares 63,944 63,944 Total Issued and Paid in Capital 63,944 63,944 All shares have equal voting rights and share equally in dividends and surplus on winding up. 6 Related Parties The following material transactions occurred with related parties during the year: General There have been no related party transactions during the current financial year. These notes have been compiled without undertaking an audit or review engagement and are subject to the Accountant's compilation report. 12

14 Notes to the Financial Statements 7 Going Concern These financial statements have been prepared assuming that the company is a going concern and has the continuing financial support of its shareholders. If the shareholders withdraw their support then the going concern principle can not be relied upon. These notes have been compiled without undertaking an audit or review engagement and are subject to the Accountant's compilation report. 13

15 Schedule of Fixed Assets and Depreciation As At 31 July 2017 % Opening Gain/Loss Private Original Accum Opening Additions on Capital Closing Date Use Cost Depn WDV Disposals Disposal Profit Rate Depn WDV Plant and equipment (118) Authentis Burgundy glasses Jan 03 1,200 1, % DV - - (128) Authentis Burgundy glasses Jun 03 1,676 1, % DV - - Promotional banners x 1 Sep 03 7,958 6,290 1, % DV 190 1,478 Promotional banner Dec 04 3,140 2, % DV Website development Jun 06 2,357 2, % DV - - (1400) Spiegelau tasting glasses Jan 06 9,560 9, % DV 1 - Table runner banner Feb % DV (179) Authentis tasting and multi purpose glassess Nov 08 1,728 1, % DV - - Glass racks x 36 Nov 08 10,260 10, % DV x Glass Racks Dec 15 2,925 1,568 1, % DV 1, Total Plant and equipment 41,354 37,457 3, ,386 2,511 Furniture and fittings Office Furniture - 1/2 share Apr 14 1, % DV Total Furniture and fittings 1, Office equipment Evolv hard drive Jun 10 1,708 1, % DV 4 3 Website Aug 09 8,115 8, , % DV 228 4,106 HP Spectre XT Feb 13 1,260 1, % DV HP ProBook & Microsoft Office Jul 13 1,948 1, % DV Laptop Aug , % DV 1,417 1,417 Chairs x 6 Sep % DV Total Office equipment 13,030 12, , ,977 6,384 TOTAL FIXED ASSETS 55,471 50,476 4,995 7, ,479 9,505 These statements should be read in conjunction with the Notes to the Financial Statements and have been compiled without undertaking an audit or review and is subject to the Accountant's compilation report. 14

16 Compilation Report Compilation Report to the Directors of Central Otago Pinot Noir Ltd Scope On the basis of information provided by you we have compiled, in accordance with Service Engagement Standard No. 2: Compilation of Financial Information and relevant professional standards and ethical requirements issued by the New Zealand Institute of Chartered Accountants, the financial statements of Central Otago Pinot Noir Ltd for the year ending 31 July 2017 as set out on pages 1 to 13. The financial statements have been prepared for the purposes of meeting the company's income tax requirements. Accordingly, the financial statements should not be relied upon for any other purpose. Responsibilities You are solely responsible for the information contained in the financial statements and have determined that the financial reporting framework used is appropriate to meet your needs and for the purpose that the financial statements were prepared. The financial statements were prepared exclusively for your benefit. We do not accept responsibility to any other person for the contents of the financial statements. No audit or review engagement undertaken Our procedures use accounting expertise to undertake the compilation of the financial statements from information which you provided to us. Our procedures do not include verification or validation procedures. No audit or review engagement has been performed and accordingly no assurance is expressed. Disclaimer of Liability As mentioned earlier in our report, we have compiled the financial information based on information provided to us which has not been subject to an audit or review engagement. Accordingly, neither we nor any of our employees accept any responsibility for the reliability, accuracy or completeness of the compiled financial information nor do we accept any liability of any kind whatsoever, including liability by reason of negligence, to any person for losses incurred as a result of placing reliance on the compiled financial information. Crowe Horwath (NZ) Limited Wanaka 29th November