Nirro Limited Filleted accounts for Companies House (small and micro)

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COMPANY REGISTRATION NUMBER: 04050459

Nirro Limited

Filleted Unaudited Financial Statements

31 August 2020

Nirro Limited

Statement of Financial Position

31 August 2020

	2020		2019
Note	£	£	£

Fixed assets

Tangible assets	6		324,672	220,023

Current assets

Stocks		245,724	288,000
Debtors	7	485,698	484,647
Cash at bank and in hand		190,735	234,968
		---------	------------
		922,157	1,007,615

Creditors: amounts falling due within one year	8	114,161		126,744
		---------		------------
Net current assets			807,996	880,871
			------------	------------
Total assets less current liabilities			1,132,668	1,100,894
			------------	------------
Net assets			1,132,668	1,100,894
			------------	------------

Capital and reserves

Called up share capital	1,000	1,000
Profit and loss account	1,131,668	1,099,894
	------------	------------
Shareholders funds	1,132,668	1,100,894
	------------	------------

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In accordance with section 444 of the Companies Act 2006, the statement of income and retained earnings has not been delivered.

For the year ending 31 August 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's responsibilities:

- The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476 ;

- The director acknowledges his responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements .

Nirro Limited

Statement of Financial Position (continued)

31 August 2020

These financial statements were approved by the board of directors and authorised for issue on 25 November 2020 , and are signed on behalf of the board by:

Mr. Tural Kuburoglu
Director

Company registration number: 04050459

Nirro Limited

Notes to the Financial Statements

Year ended 31 August 2020

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 834 Hertford Road, Enfield, Middlesex, EN3 6UE.

2. Statement of compliance

These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities measured at fair value through profit or loss. The financial statements are prepared in sterling, which is the functional currency of the entity.

Going concern

The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Judgements and key sources of estimation uncertainty

Preparation of the financial statements requires management to make significant judgements and estimates. The items in the financial statements where these judgement and estimates have been made include: a - Critical judgements in applying accounting policies There are no critical judgements (apart from those involving estimates) that have had a significant effect on amounts recognised in the financial statements. b - Key accounting estimates and assumptions The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results.

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 sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer, usually on despatch of the goods, the amount of revenue can be measured reliably, it is probable that the associated economic benefits will flow to the entity, and the costs incurred or to be incurred in respect of the transactions can be measured reliably. Interest receivable on bank deposits and other items is included within other income.

Income tax

Current tax is recognised for the amount of income tax payable in respect of the taxable profit for the current or past reporting periods using the tax rates and laws that that have been enacted or substantively enacted by the reporting date. Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Plant and machinery	-	18% reducing balance
Motor van	-	18% reducing balance

Impairment of assets

At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in profit or loss. If an impairment loss subsequently reverses, the carry amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

Provisions for liabilities

A provision is recognised in the Balance Sheet when the Company has a present legal or constructive obligation as a result of a past event, that can be reliably measured and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects risks specific to the liability.

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties and loans to related parties. Debt instruments (other than those wholly repayable or receivable within one year), including loans and other debtors and creditors, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors or creditors, are measured, initially and subsequently, at the undiscounted amount of the cash and other consideration, expected to be paid or or received. However if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost. Financial assets that are measured at cost and amortised are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Profit and Loss Account.

Cash and cash equivalents

Cash and cash equivalents include cash in hand and at bank. Bank overdrafts are shown within borrowings in current liabilities.

4. Employee numbers

The average number of persons employed by the company during the year amounted to 15 (2019: 12 ).

5. Tax on profit

Major components of tax expense

	2020	2019
	£	£

Current tax:

UK current tax expense	7,463	31,162
	-------	--------
Tax on profit	7,463	31,162
	-------	--------

Reconciliation of tax expense

The tax assessed on the profit on ordinary activities for the year is higher than (2019: the same as) the standard rate of corporation tax in the UK of 19 % (2019: 19 %).

	2020	2019
	£	£
Profit on ordinary activities before taxation	39,237	161,433
	--------	---------
Profit on ordinary activities by rate of tax	7,455	31,162
Effect of expenses not deductible for tax purposes	8	–
	--------	---------
Tax on profit	7,463	31,162
	--------	---------

6. Tangible assets

	Plant and machinery	Motor van	Total
	£	£	£
Cost
At 1 September 2019	341,389	25,167	366,556
Additions	175,259	–	175,259
	---------	--------	---------
At 31 August 2020	516,648	25,167	541,815
	---------	--------	---------
Depreciation
At 1 September 2019	126,305	20,228	146,533
Charge for the year	69,721	889	70,610
	---------	--------	---------
At 31 August 2020	196,026	21,117	217,143
	---------	--------	---------
Carrying amount
At 31 August 2020	320,622	4,050	324,672
	---------	--------	---------
At 31 August 2019	215,084	4,939	220,023
	---------	--------	---------

7. Debtors

	2020	2019
	£	£
Trade debtors	46,300	14,116
Prepayments and accrued income	18,398	30,265
Loan to connected company	400,000	400,000
Other debtors	21,000	40,266
	---------	---------
	485,698	484,647
	---------	---------

8. Creditors: amounts falling due within one year

	2020	2019
	£	£
Bank loans and overdrafts	19,114	16,093
Trade creditors	15,770	58,323
Corporation tax	38,782	31,162
Social security and other taxes	19,553	12,830
Other creditors	20,942	8,336
	---------	---------
	114,161	126,744
	---------	---------

9. Financial instruments

The company has the following financial instruments:

	2020	2019
	£	£
Financial assets measured at amortised cost
Loan to connected company	400,000	400,000
Trade and other debtors	67,300	54,382
Prepayments	18,398	30,265
	---------	---------
	485,698	484,647
	---------	---------


Financial liabilities measured at amortised cost
Bank loans and overdraft	19,114	16,093
Trade and other creditors	15,770	59,206
Accruals	20,942	7,453
	--------	--------
	55,826	82,752
	--------	--------

10. Director's advances, credits and guarantees

During the year the director entered into the following advances and credits with the company:

	2020
	Balance brought forward	Amounts repaid	Balance outstanding
	£	£	£
Mr. Tural Kuburoglu	( 883)	883	–
	----	----	----

	2019
	Balance brought forward	Amounts repaid	Balance outstanding
	£	£	£
Mr. Tural Kuburoglu	( 883)	–	( 883)
	----	----	----

11. Related party transactions

The following related party transactions were undertaken:

	2020	2019
	£	£
Loan to connected companies:
HTK Investments Limited	400,000	400,000
	---------	---------

Mr. Tural Kuburoglu , the managing director, along with Mr. Hasan Irfan are joint shareholders of Nirro Limited and jointly own both the premises that Nirro Limited is trading from. The owners and related parties charge rent to the company and hold a deposit of £21,000 for the rent.