Business goes ‘pop’ for disqualified fizzy drinks director
The director of a firm which traded in fizzy drinks, car parts and accident data has been banned for nine years, for failing to ensure the company kept adequate accounting records of its £2m-plus turnover
10 Aug 2017
Javid Morgra, from Bolton, was the sole director of Middleborough Ltd which was wound up by the court in the public interest in November 2016.
The company owed creditors at least £2,119,589, despite filing accounts showing turnover of £2,321,657 for the period ended 31 August 2015.
An Insolvency Service investigation found Middleborough’s failure to keep adequate accounting records meant it was not possible to verify Morgra’s explanation for the shortfall of £54,229 paid to Middleborough by a customer in respect of beverages supplied between 29 June 2015 and 27 August 2015.
It was also not possible to verify his explanation for an underpayment of £1,435,954 to the supplier, a shortfall of £1,235,302 received from the customer and an overall loss of £348,390 incurred on sales of car parts between January and September 2015.
In addition, the Insolvency Service could not verify Morgra’s explanation regarding the sale of 6,136 sets of accident data and a debt due to a supplier of at least £624,929 incurred between July 2015 and September 2015.
Similarly, there was no way to determine the accuracy of financial statements filed at Companies House for the periods ending 28 February 2014, 10 February 2015 and 31 August 2015, or the accuracy of Middleborough’s VAT returns submitted to HMRC in relation to the 03/2015 to the 03/2016 VAT periods.
The investigation also showed it was not possible determine the nature and extent of Middleborough’s assets and liabilities, verify the legitimacy of the company’s trading, or show that all transactions have been carried out in the usual course of business and to the benefit of the company.
Ken Beasley, Official Receiver of the Insolvency Service’s public interest unit, said: ‘The director of this company has fallen far short of the standard of record keeping that can be reasonably expected and as a result, there were serious concerns over the true nature of this business.’