Nidec SR Drives Ltd - Period Ending 2019-03-31

Registration number: 01517273

Nidec SR Drives Ltd

Annual Report and Financial Statements

for the Year Ended 31 March 2019

Nidec SR Drives Ltd

Contents

Company Information	1
Directors' Report	2
Statement of Directors' Responsibilities	3
Independent Auditor's Report	4 to 6
Income Statement	7
Statement of Financial Position	8
Statement of Changes in Equity	9
Notes to the Financial Statements	10 to 21

Nidec SR Drives Ltd

Company Information

Directors

Mr M P Tankard Mr P A Rawlins Mr S P Cummins Mr S J Ambort Mr B A Weubbels

Company secretary

Mr P A Rawlins

Registered office

East Park House Otley Road Beckwithshaw Harrogate HG3 1PR

Bankers

Barclays Bank Plc Leeds Leeds International Global Corporate Centre 1 Park Row Leeds LS1 5WU

Auditor

MHA Tait Walker Chartered Accountants & Statutory Auditor Medway House Fudan Way Teesdale Park Stockton on Tees TS17 6EN

1

Nidec SR Drives Ltd

Directors' Report for the Year Ended 31 March 2019

The directors present their report and the financial statements for the year ended 31 March 2019.

Principal activities

The principal activity of the company during the year was consultancy, design and development of electrical equipment, particularly in the field of electrical variable speed drives. To date, all engineering activities have been directed towards design and development of new technology and associated engineering for client organisations. No manufacturing has been undertaken on the company's own account.

Directors of the company

The directors who held office during the year were as follows:

Mr G T Brown (resigned 31 March 2019)

Mr G Levine (resigned 17 August 2018)

Mr M J Turner (resigned 31 March 2019)

Mr D Weinrich (resigned 17 August 2018)

Mr M P Tankard

Mr W Hittie (resigned 11 May 2018)

Mr P A Rawlins - Company secretary and director

Mr S P Cummins

Mr S J Ambort (appointed 17 August 2018)

Mr B A Weubbels (appointed 17 August 2018)

Disclosure of information to the auditor

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.

Reappointment of auditor

In accordance with section 485 of the Companies Act 2006, a resolution for the re-appointment of MHA Tait Walker as auditor of the company is to be proposed at the forthcoming Annual General Meeting.

Small companies' provision statement

This report has been prepared in accordance with the small companies' regime under the Companies Act 2006.

Approved by the Board on 18 December 2019 and signed on its behalf by:

......................................... Mr P A Rawlins Company secretary and director

2

Nidec SR Drives Ltd

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

•	select suitable accounting policies and apply them consistently;

•	make judgements and accounting estimates that are reasonable and prudent;

•	state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

•	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

3

Nidec SR Drives Ltd

Independent Auditor's Report to the Members of Nidec SR Drives Ltd

Opinion

We have audited the financial statements of Nidec SR Drives Ltd (the 'company') for the year ended 31 March 2019, which comprise the Income Statement, Statement of Financial Position, Statement of Changes in Equity, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

•	give a true and fair view of the state of the company's affairs as at 31 March 2019 and of its profit for the year then ended;
•	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
•	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

•	the directors’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
•	the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

4

Nidec SR Drives Ltd

Independent Auditor's Report to the Members of Nidec SR Drives Ltd (continued)

Opinion on other matter prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

•	the information given in the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

•	the Directors' Report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors' Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

•	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
•	the financial statements are not in agreement with the accounting records and returns; or
•	certain disclosures of directors’ remuneration specified by law are not made; or
•	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities (set out on page 3), the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

5

Nidec SR Drives Ltd

Independent Auditor's Report to the Members of Nidec SR Drives Ltd (continued)

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

......................................
Christopher Potter BA (Hons) ACA (Senior Statutory Auditor)
For and on behalf of MHA Tait Walker
Chartered Accountants
Statutory Auditor
Medway House
Fudan Way
Teesdale Park
Stockton on Tees
TS17 6EN

18 December 2019


MHA Tait Walker is a trading name of Tait Walker LLP.

6

Nidec SR Drives Ltd

Income Statement for the Year Ended 31 March 2019

	Note	2019 £	2018 £
Turnover	3	9,911,051	5,919,195
Cost of sales		(6,687,871)	(4,139,708)
Gross profit		3,223,180	1,779,487
Administrative expenses		(1,801,999)	(1,856,264)
Exceptional costs	6	(561,910)	-
Other operating income	4	140,400	422,000
Operating profit	5	999,671	345,223
Other interest receivable and similar income		-	24,094
Profit before tax		999,671	369,317
Taxation	10	(194,923)	(81,113)
Profit for the financial year		804,748	288,204

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

The notes on pages 10 to 21 form an integral part of these financial statements.
 

7

Nidec SR Drives Ltd

(Registration number: 01517273)
Statement of Financial Position as at 31 March 2019

	Note	2019 £	2018 £
Fixed assets
Tangible assets	11	2,137,447	2,323,234
Current assets
Stocks	12	234,076	79,940
Debtors	13	4,740,717	4,117,344
Cash at bank and in hand		513,033	202,742
		5,487,826	4,400,026
Creditors: Amounts falling due within one year	14	(2,423,035)	(2,354,422)
Net current assets		3,064,791	2,045,604
Total assets less current liabilities		5,202,238	4,368,838
Provisions for liabilities	15	(99,550)	(70,898)
Net assets		5,102,688	4,297,940
Capital and reserves
Called up share capital	17	134,146	134,146
Share premium reserve	18	547,118	547,118
Profit and loss account	18	4,421,424	3,616,676
Total equity		5,102,688	4,297,940

Approved and authorised by the Board on 18 December 2019 and signed on its behalf by:
 

......................................... Mr P A Rawlins Company secretary and director

The notes on pages 10 to 21 form an integral part of these financial statements.
 

8

Nidec SR Drives Ltd

Statement of Changes in Equity for the Year Ended 31 March 2019

	Share capital £	Share premium £	Profit and loss account £	Total £
At 1 April 2017	134,146	547,118	3,328,472	4,009,736
Profit for the year	-	-	288,204	288,204
Total comprehensive income	-	-	288,204	288,204
At 31 March 2018	134,146	547,118	3,616,676	4,297,940

	Share capital £	Share premium £	Profit and loss account £	Total £
At 1 April 2018	134,146	547,118	3,616,676	4,297,940
Profit for the year	-	-	804,748	804,748
Total comprehensive income	-	-	804,748	804,748
At 31 March 2019	134,146	547,118	4,421,424	5,102,688

The notes on pages 10 to 21 form an integral part of these financial statements.
 

9

Nidec SR Drives Ltd

Notes to the Financial Statements for the Year Ended 31 March 2019

1	General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is East Park House, Otley Road, Beckwithshaw, Harrogate, HG3 1PR.

2	Accounting policies

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and with the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention.

These financial statements are presented in sterling which is the functional currency of the entity.

Summary of disclosure exemptions

The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102:

(a) Disclosures in respect of each class of share capital have not been presented.
(b) No cash flow statement has been presented for the company.
(c) Disclosures in respect of financial instruments have not been presented.
(d) No disclosure has been given for the aggregate remuneration of key management personnel.

The Company has taken advantage of the exemption available under paragraph 33.1A of FRS 102 and does not disclose related party transactions with members of the same group that are wholly owned.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

10

Nidec SR Drives Ltd

Notes to the Financial Statements for the Year Ended 31 March 2019 (continued)

2	Accounting policies (continued)

Judgements

The judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows:

Assessing indicators of impairment - In assessing whether there have been indicators of impairment of assets, the directors have considered both external and internal sources of information such as market conditions, counterparty credit ratings and experience of recoverability.

Taxation - Management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon likely timing and level of future taxable profits together with an assessment of the effect of future tax planning strategies.

Key sources of estimation uncertainty

Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows:

Trade receivables - The company regularly assesses the recoverability of its trade receivables based on a range of factors including the age of the receivable, creditworthiness of the customer, any credits required to release payments and changes in that customers access to credit to fund their purchases. When determining the recoverability of an account the company makes estimations as to the financial condition of each customer and any debt collection strategy in place.

Useful economic lives of fixed assets - The annual depreciation charge is sensitive to changes in the estimated useful lives of the assets. The useful economic lives are re-assessed annually. They are amended when necessary to reflect current estimates, future investments and economic utilisation.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods supplied and services rendered, stated net of discounts and of Value Added Tax.

Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that expenses recognised are recoverable.

Foreign currency transactions and balances

Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss.

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.

11

Nidec SR Drives Ltd

Notes to the Financial Statements for the Year Ended 31 March 2019 (continued)

2	Accounting policies (continued)

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 initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment loss.

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
	Freehold Property	2.5% per annum
	Furniture and equipment	20% per annum
	Development and test equipment	8.3%, 10% and 20% per annum

Investments

Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold 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

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are 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.

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Nidec SR Drives Ltd

Notes to the Financial Statements for the Year Ended 31 March 2019 (continued)

2	Accounting policies (continued)

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable 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.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probably that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense.

Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle an obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

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

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.

13

Nidec SR Drives Ltd

Notes to the Financial Statements for the Year Ended 31 March 2019 (continued)

3

Revenue

The analysis of the company's revenue for the year from continuing operations is as follows:

	2019 £	2018 £
Rendering of services	9,911,051	5,919,195

The analysis of the company's turnover for the year by market is as follows:

	2019 £	2018 £
UK	1,168,524	758,847
Rest of world	8,742,527	5,160,348
	9,911,051	5,919,195

4	Other operating income

The analysis of the company's other operating income for the year is as follows:

	2019  £	2018  £
Research and Development Expenditure Credit	140,400	422,000

5	Operating profit

Arrived at after charging/(crediting)

	2019 £	2018 £
Depreciation expense	94,435	97,367
Foreign exchange losses	70,259	81,395

6	Exceptional costs

	2019	2018
	£	£
Redundancy	422,769	-
Impairment of fixed assets	60,400	-
Repairs and maintenance	41,206	-
Legal and professional fees	20,413	-
Travel and subsistence	17,123	-
	561,911	-

During the year the group embarked on a restructuring programme which involved elements of this company's operations being moved to other group companies. The separately identifiable costs associated with this are noted above.

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Nidec SR Drives Ltd

Notes to the Financial Statements for the Year Ended 31 March 2019 (continued)

7	Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

	2019  £	2018  £
Wages and salaries	1,735,026	2,077,884
Social security costs	188,777	226,622
Pension costs, defined contribution scheme	300,368	191,914
	2,224,171	2,496,420

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

	2019 No.	2018 No.
Production	21	30
Administration and support	5	6
Management	12	11
	38	47

8	Directors' remuneration

The directors' remuneration for the year was as follows:

	2019  £	2018  £
Remuneration	399,082	373,160
Contributions paid to money purchase schemes	24,697	48,803
	423,779	421,963

During the year the number of directors who were receiving benefits and share incentives was as follows:

	2019  No.	2018  No.
Accruing benefits under defined benefit pension scheme	5	6

In respect of the highest paid director:

	2019  £	2018  £
Remuneration	106,167	96,578
Company contributions to money purchase pension schemes	4,773	10,327

15

Nidec SR Drives Ltd

Notes to the Financial Statements for the Year Ended 31 March 2019 (continued)

9	Auditor's remuneration

	2019 £	2018 £
Audit of the financial statements	6,900	6,750

10

Taxation

Tax charged/(credited) in the income statement

	2019  £	2018  £
Current taxation
UK corporation tax	166,271	101,036
UK corporation tax adjustment to prior periods	-	(36,963)
	166,271	64,073
Deferred taxation
Arising from origination and reversal of timing differences	28,652	17,040
Tax expense in the income statement	194,923	81,113

The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2018 - higher than the standard rate of corporation tax in the UK) of 19% (2018 - 19%).

The differences are reconciled below:

	2019  £	2018  £
Profit before tax	999,671	369,317
Corporation tax at standard rate	189,937	70,170
Effect of expense not deductible in determining taxable profit (tax loss)	153	388
Increase (decrease) in UK and foreign current tax from adjustment for prior periods	(31,573)	(36,963)
Tax increase (decrease) from effect of capital allowances and depreciation	33,604	47,833
Other tax effects for reconciliation between accounting profit and tax expense (income)	2,802	(315)
Total tax charge	194,923	81,113

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Nidec SR Drives Ltd

Notes to the Financial Statements for the Year Ended 31 March 2019 (continued)

10	Taxation (continued)

Deferred tax

Deferred tax assets and liabilities

2019	Asset £	Liability £
Accelerated capital allowances	-	104,195
Other timing differences	4,645	-
	4,645	104,195

2018	Asset £	Liability £
Accelerated capital allowances	-	73,035
Other timing differences	2,138	-
	2,138	73,035

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Nidec SR Drives Ltd

Notes to the Financial Statements for the Year Ended 31 March 2019 (continued)

11	Tangible assets

	Freehold land and buildings £	Fixtures and fittings £	Development and test equipment £	Total £
Cost or valuation
At 1 April 2018	1,969,638	146,335	1,887,129	4,003,102
Additions	-	-	124,570	124,570
Disposals	-	-	(215,922)	(215,922)
At 31 March 2019	1,969,638	146,335	1,795,777	3,911,750
Depreciation
At 1 April 2018	709,139	120,948	849,781	1,679,868
Charge for the year	41,105	11,621	41,709	94,435
At 31 March 2019	750,244	132,569	891,490	1,774,303
Carrying amount
At 31 March 2019	1,219,394	13,766	904,287	2,137,447
At 31 March 2018	1,260,499	25,387	1,037,348	2,323,234

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Nidec SR Drives Ltd

Notes to the Financial Statements for the Year Ended 31 March 2019 (continued)

12

Stocks

	2019  £	2018  £
Finished goods and goods for resale	234,076	79,940

13

Debtors

	2019 £	2018 £
Trade debtors	1,997,332	1,247,070
Amounts owed by group undertakings	2,055,118	1,885,654
Other debtors	293,891	177,233
Prepayments	155,488	67,749
Accrued income	120,528	316,364
Corporation tax asset	118,360	423,274
	4,740,717	4,117,344

14

Creditors

	2019  £	2018  £
Due within one year
Trade creditors	312,694	246,983
Amounts due to group undertakings	1,714,460	1,821,707
Social security and other taxes	44,554	57,363
Other creditors	27,378	12,574
Accrued expenses	323,949	215,795
	2,423,035	2,354,422

19

Nidec SR Drives Ltd

Notes to the Financial Statements for the Year Ended 31 March 2019 (continued)

15	Deferred tax and other provisions

	Deferred tax £
At 1 April 2018	70,898
Increase (decrease) in existing provisions	28,652
At 31 March 2019	99,550

16	Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £300,368 (2018 - £191,914).
 

17	Share capital

Allotted, called up and fully paid shares

	2019		2018
	No.	£	No.	£
Ordinary of £1 each	134,146	134,146	134,146	134,146

18

Reserves

Share capital
Share capital represents the nominal value of shares that have been issued.

Share premium
Share premium represents the premium arising on the issue of equity shares, net of issue costs.

Profit and loss account
This reserve records retained earnings and accumulated losses.

20

Nidec SR Drives Ltd

Notes to the Financial Statements for the Year Ended 31 March 2019 (continued)

19	Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

	2019 £	2018 £
Not later than one year	726	726
Later than one year and not later than five years	1,331	2,057
	2,057	2,783

The amount of non-cancellable operating lease payments recognised as an expense during the year was £726 (2018 - £726).

20	Commitments

Pension commitments

Commitments provided for in the accounts amounted to £3,954 (2018 - £4,253).

21	Parent and ultimate parent undertaking

The company's immediate parent is Nidec Motor Holdings Corporation

 The ultimate parent is Nidec Corporation, incorporated in Japan.

Nidec Corporation is the parent of the largest and smallest group of undertakings to consolidate these financial statements at 31 March 2019.

  These financial statements are available upon request from WWW.NIDEC.COM

21