Cheshire Tool And Pressing Company Ltd - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 06004491 (England and Wales)

Unaudited Financial Statements

for the Year Ended 31 December 2019

for

Cheshire Tool And Pressing Company Ltd

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

Chartered Accountants' Report

10

DIRECTOR:

P A Carr

SECRETARY:

P A Carr

REGISTERED OFFICE:

Unit 5

Park Road Industrial Estate

Timperley

Cheshire

WA14 5QH

REGISTERED NUMBER:

06004491 (England and Wales)

ACCOUNTANTS:

Voisey & Co

Chartered Accountants

8 Winmarleigh Street

Warrington

Cheshire

WA1 1JW

FIXED ASSETS

Investments

4

604,700

674,700

CURRENT ASSETS

Stocks

37,760

37,760

Debtors

5

124,672

63,887

Cash at bank

-

17,191

162,432

118,838

CREDITORS

Amounts falling due within one year

6

927,664

728,962

NET CURRENT LIABILITIES

(765,232

)

(610,124

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(160,532

)

64,576

CREDITORS

Amounts falling due after more than one year

7

82,122

186,514

NET LIABILITIES

(242,654

)

(121,938

)

CAPITAL AND RESERVES

Called up share capital

10

160,000

160,000

Share premium

11

90,000

90,000

Retained earnings

11

(492,654

)

(371,938

)

SHAREHOLDERS' FUNDS

(242,654

)

(121,938

)

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

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 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 Statement of Comprehensive Income has not been delivered.

The financial statements were approved by the director and authorised for issue on 15 April 2021 and were signed by:

P A Carr - Director

1.	STATUTORY INFORMATION

Cheshire Tool And Pressing Company Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The principal accounting policies adopted are set out below.

Related party exemption

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

Significant judgements and estimates

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Investments in subsidiaries

Investments in subsidiary undertakings are stated at cost less amounts written off. Provisions are made for impairment.

Stocks

Work in progress is valued at the lower of cost and net realisable value.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Pension costs and other post-retirement benefits

The company operates defined contribution pension schemes in respect of employees. The assets of the schemes are held in separately administered funds from the other assets of the company. The charge to the profit and loss account represents the contributions to the schemes in the year.

Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with bank, other short-term liquid investments with original maturities of three months or less, and bank overdrafts.

Financial instruments

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforcible right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the net asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised costs using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publically traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit or loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled.

Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

Employees benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 3 (2018 - 3 ) .

4.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 1 January 2019

and 31 December 2019

776,475

PROVISIONS

At 1 January 2019

101,775

Provision for year

70,000

At 31 December 2019

171,775

NET BOOK VALUE

At 31 December 2019

604,700

At 31 December 2018

674,700

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Other debtors

9,462

1,000

Directors' current accounts

115,000

62,677

Prepayments and accrued income

210

210

124,672

63,887

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Bank loans and overdrafts (see note 8)

62,150

82,144

Other loans (see note 8)

237,045

100,983

Amounts owed to group undertakings

567,769

517,112

Tax

44,860

5,166

Directors' current accounts

-

23,557

Accruals and deferred income

15,840

-

927,664

728,962

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2019

2018

£

£

Bank loans (see note 8)

82,122

139,014

Other loans (see note 8)

-

47,500

82,122

186,514

8.

LOANS

An analysis of the maturity of loans is given below:

2019

2018

£

£

Amounts falling due within one year or on demand:

Bank overdrafts

2,018

-

Bank loans

60,132

82,144

Other loans

189,545

30,983

Deferred consideration

47,500

70,000

299,195

183,127

Amounts falling due between one and two years:

Bank loans

82,122

139,014

Deferred consideration

-

47,500

82,122

186,514

9.	SECURED DEBTS

The following secured debts are included within creditors:

2019

2018

£

£

Bank loans

142,254

221,158

The bank borrowings are secured by a debenture creating a fixed and floating charge over the company assets.

The company indemnifies by guarantee the hire purchase agreement held in its subsidiary company Cheshire Tool Company Limited.

10.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2019

2018

value:

£

£

160,000

Ordinary

£1

160,000

160,000

11.

RESERVES

Retained

Share

earnings

premium

Totals

£

£

£

At 1 January 2019

(371,938

)

90,000

(281,938

)

Deficit for the year

(120,716

)

(120,716

)

At 31 December 2019

(492,654

)

90,000

(402,654

)

12.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to directors subsisted during the years ended 31 December 2019 and 31 December 2018:

2019

2018

£

£

P C Woods

Balance outstanding at start of year

23,557

(1,443

)

Amounts repaid

(23,557

)

25,000

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

-

23,557

P A Carr

Balance outstanding at start of year

(54,564

)

-

Amounts advanced

(175,451

)

(192,324

)

Amounts repaid

115,021

137,760

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

(114,994

)

(54,564

)

Ms S Woodnett

Balance outstanding at start of year

(8,113

)

(4,338

)

Amounts advanced

(350

)

(3,775

)

Amounts repaid

8,463

-

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

-

(8,113

)

13.	ULTIMATE CONTROLLING PARTY

The controlling party is P A Carr.

14.	GOING CONCERN BASIS

The shareholders and related parties have agreed to a deferral of capital repayments until the group companies have sufficient funds and in addition the shareholders and related parties have agreed that until further notice the loans are on an interest free basis.

Accordingly the directors believe it appropriate to prepare the financial statements on the going concern basis which assumes that the company will continue in operational existence for the foreseeable future.

The following reproduces the text of the report prepared for the director in respect of the company's annual unaudited financial statements. In accordance with the Companies Act 2006, the company is only required to file a Balance Sheet. Readers are cautioned that the Statement of Comprehensive Income and certain other primary statements and the Report of the Director are not required to be filed with the Registrar of Companies.

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Cheshire Tool And Pressing Company Ltd for the year ended 31 December 2019 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and the related notes from the company's accounting records and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed within the ICAEW's regulations and guidance at http://www.icaew.com/en/membership/regulations-standards-and-guidance.

This report is made solely to the director of Cheshire Tool And Pressing Company Ltd in accordance with our terms of engagement. Our work has been undertaken solely to prepare for your approval the financial statements of Cheshire Tool And Pressing Company Ltd and state those matters that we have agreed to state to the director of Cheshire Tool And Pressing Company Ltd in this report in accordance with ICAEW Technical Release 07/16AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Cheshire Tool And Pressing Company Ltd and its director for our work or for this report.

It is your duty to ensure that Cheshire Tool And Pressing Company Ltd has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and loss of Cheshire Tool And Pressing Company Ltd. You consider that Cheshire Tool And Pressing Company Ltd is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the financial statements of Cheshire Tool And Pressing Company Ltd. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

Voisey & Co

Chartered Accountants

8 Winmarleigh Street

Warrington

Cheshire

WA1 1JW

15 April 2021