Tercet Precision Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: SC186797

TERCET PRECISION LIMITED

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2019

Page

Balance Sheet

1

Notes to the Financial Statements

3

FIXED ASSETS

Tangible assets

4

1,236,602

1,296,967

CURRENT ASSETS

Stocks

302,740

314,348

Debtors

5

1,155,205

944,199

Cash at bank

11,499

13,196

1,469,444

1,271,743

CREDITORS

Amounts falling due within one year

6

1,068,991

887,711

NET CURRENT ASSETS

400,453

384,032

TOTAL ASSETS LESS CURRENT LIABILITIES

1,637,055

1,680,999

CREDITORS

Amounts falling due after more than one year

7

(174,934

)

(292,465

)

PROVISIONS FOR LIABILITIES

(206,760

)

(212,040

)

NET ASSETS

1,255,361

1,176,494

CAPITAL AND RESERVES

Called up share capital

164,746

164,746

Share premium

554,766

554,766

Retained earnings

535,849

456,982

SHAREHOLDERS' FUNDS

1,255,361

1,176,494

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2019.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2019 in accordance with Section 476 of the Companies Act 2006.

The director acknowledges his responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Profit and Loss Account has not been delivered.

The financial statements were approved by the director on 11 October 2019 and were signed by:

A H Burns - Director

1.	STATUTORY INFORMATION

Tercet Precision Limited is a private company, limited by shares, registered in Scotland. The company's

registered office is Millarston Industrial Estate, Fulbar Road, Paisley, Renfrewshire, PA1 2XR.

The presentation currency of the financial statements is Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with the provisions of Section 1A "Small Entities"

of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of

Ireland" and the Companies Act 2006. There were no material departures from this standard. The financial

statements have been prepared under the historical cost convention.

Turnover

Turnover represents the net invoiced sales of goods and services net of Value Added Tax. The company's policy

is to recognise a sale when substantially all the risks and rewards in connection with the goods and services have

been passed to the buyer.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value

of each asset over its estimated useful life:

Plant & machinery are depreciated on a straight line basis over 5 to 15 years to residual values.

Fixtures & fittings and Motor vehicles are depreciated on the reducing balance per month by percentages 18.5%

to 25% per annum.

Tangible fixed assets are included at cost less depreciation and impairment.

Impairment of non-financial assets

At each reporting date non-financial assets not carried at fair value, like goodwill and plant, property and

equipment, are reviewed to determine whether there is an indication that an asset may be impaired. If there is an

indication of possible impairment, the recoverable amount which is the higher in use and the fair value less cost

to sell, is estimated and compared with the carrying amount. If the recoverable amount is lower, the carrying

amount of the asset is reduced to its recoverable amount and an impairment loss is recognised immediately in

profit and loss.

Stocks

Stocks are valued at the lower of cost and estimated selling price less cost to sell, as follows:

Raw materials - purchase cost on first-in, first-out basis.

Work in progress - cost of direct materials and labour plus attributable overheads based on normal level of

activity.

Net realisable value is based on estimated selling price less further costs expected to be incurred to completion

and disposal.

Financial instruments

The company only enters into basic financial instruments transactions that result in the recognition of financial

assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third

parties, loans to related parties.

Debt instruments like loans and other accounts receivable and payable are initially measured at present value of

the future payments and subsequently at amortised cost using the effective interest method. Debt instruments

that are payable or receivable within one year, typically trade debtors and trade creditors, are measured, initially

and subsequently, at the undiscounted amount of cash or other consideration expected to be paid or received.

Financial assets measured at cost and amortised cost are assessed at the end of each reporting period for evidence

of impairment and if found, an impairment loss is recognised in profit or loss.

Taxation

Taxation represents the sum of tax currently payable and deferred tax. The company's liability for current tax is

calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

The charge for taxation takes into account taxation deferred as a result of timing differences between the

treatment of certain items for taxation and accounting purposes. In general, deferred taxation is recognised in

respect of all timing differences that have originated but not reversed at the balance sheet date. However,

deferred tax assets are recognised only to the extent that the director considers that it is more likely than not that

there will be suitable taxable profits from which the future reversal of the underlying timing differences can be

deducted. Deferred taxation is measured on a non-discounted basis at the tax rates that are expected to apply in

the periods in which the timing differences reverse, based on tax rates and laws enacted or substantively enacted

at the balance sheet date.

With the exception of changes arising on the initial recognition of a business combination, the tax expense is

presented either in profit or loss, other comprehensive income or statement of changes in equity depending on the

transaction that resulted in the tax expense.

Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors.

Foreign currencies

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 are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Where assets are financed by hire purchase or by leasing agreements which give rights similar to ownership

(finance leases), the assets are treated as though they had been purchased outright and are depreciated in the

same manner as owned assets. The interest element of the rental obligations is charged to the profit and loss

account as incurred.

Rentals paid under operating leases are charged to the profit and loss account on a straight line basis over the

period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension

scheme are charged to profit or loss in the period to which they relate.

Provisions

Provisions are recognised when the company has a legal or constructive obligation at the reporting date as a

result of a past event, it is probable that the company will be required to settle the obligation and the amount of

the obligation can be reliably estimated. Provisions are recognised at the best estimate of the amount required to

settle the obligation at the reporting date.

Judgements

The company considers on an annual basis the judgements that are made by management when applying its

significant accounting policies that would have the most significant effect on amounts that are recognised in the

financial statements.

The directors consider there are no such significant judgements.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 31 (2018 - 32 ) .

4.	TANGIBLE FIXED ASSETS

Plant and

machinery

etc

£

COST

At 1 April 2018

5,270,934

Additions

141,454

At 31 March 2019

5,412,388

DEPRECIATION

At 1 April 2018

3,973,967

Charge for year

201,819

At 31 March 2019

4,175,786

NET BOOK VALUE

At 31 March 2019

1,236,602

At 31 March 2018

1,296,967

Included above is £814,242 (2018: £755,246) carrying value of assets, which the company has pledged as

security.

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Trade debtors

357,711

310,979

Amounts owed by group undertakings

729,106

570,511

Other debtors

68,388

62,709

1,155,205

944,199

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Bank loans and overdrafts

262,062

80,443

Hire purchase contracts

176,740

225,057

Trade creditors

456,252

363,524

Amounts owed to group undertakings

205

33,325

Taxation and social security

50,606

65,800

Other creditors

123,126

119,562

1,068,991

887,711

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2019

2018

£

£

Hire purchase contracts

124,085

205,034

Other creditors

50,849

87,431

174,934

292,465

8.	SECURED DEBTS

The following secured debts are included within creditors:

2019

2018

£

£

Bank overdrafts

262,062

80,443

Hire purchase contracts

300,825

430,091

Other loans

-

151,097

562,887

661,631

The invoice discounting balance, included in bank loans and overdrafts, is secured over the trade debtors of the

company.

9.	PENSION COMMITMENTS

The company pays into the personal pensions of certain employees. The assets of the scheme are held separately

from those of the company in an independently administered fund. Contributions this year were £25,223 (2018:

£9,631). Contributions outstanding at the year end amounted to £2,271 (2018: £949).

10.	RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102A 'The

Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party

transactions with wholly owned subsidiaries within the group.

The company rents the property at Fulbar Road, Paisley from the Tercet Precision Pension Scheme, the directors

pension scheme, at an annual rent of £68,000. The company has received loans from the pension scheme and at

the year end owed £Nil (2018: £28,997). Interest of £Nil was paid during the year (2018:£1,324).

11.	ULTIMATE CONTROLLING PARTY