Modco Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 03546693 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

FOR

MODCO LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

Mr A Modhvadia

Ms P Modhvadia

SECRETARY:

Mr R Modhvadia

REGISTERED OFFICE:

Unit 7 Wainman Road

Woodston

Peterborough

Cambridgeshire

PE2 7BU

REGISTERED NUMBER:

03546693 (England and Wales)

ACCOUNTANTS:

Hanburys Limited

Chartered Certified Accountants

6b Parkway

Porters Wood

St Albans

Hertfordshire

AL3 6PA

FIXED ASSETS

Tangible assets

4

558,268

569,167

CURRENT ASSETS

Stocks

5

70,107

53,776

Debtors

6

560,896

547,626

Cash at bank and in hand

7,114

33,901

638,117

635,303

CREDITORS

Amounts falling due within one year

7

142,089

153,304

NET CURRENT ASSETS

496,028

481,999

TOTAL ASSETS LESS CURRENT LIABILITIES

1,054,296

1,051,166

CREDITORS

Amounts falling due after more than one year

8

(539,138

)

(559,947

)

PROVISIONS FOR LIABILITIES

10

(6,204

)

(5,264

)

NET ASSETS

508,954

485,955

CAPITAL AND RESERVES

Called up share capital

11

4

4

Retained earnings

508,950

485,951

SHAREHOLDERS' FUNDS

508,954

485,955

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 August 2020.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 August 2020 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their 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 Income and Retained Earnings has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 26 May 2021 and were signed on its behalf by:

Mr A Modhvadia - Director

1.	STATUTORY INFORMATION

Modco Limited 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 accounts have been prepared on a going concern basis which assumes that the company will continue to trade. The directors continue to adopt the going concern basis of accounting despite the current economic impact as a result of COVID-19. The directors consider that the available reserves and the availability of continued financial support will ensure the required working capital be in place for the company to continue operations for the foreseeable future. If the company were unable to continue to trade adjustments would have to be made to reduce the value of assets to their realisable amount, to reclassify fixed assets as current assets, long-term liabilities as current liabilities, and to provide for any further liabilities that may arise.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Freehold property

-

Straight line over 50 years

Plant and machinery

-

25% on reducing balance

Motor vehicles

-

25% on reducing balance

Computer equipment

-

33% on cost

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

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 balance sheet 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 enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors, cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost 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.

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

Basic financial liabilities, including creditors and bank loans, 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 payments 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.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Income and Retained Earnings, 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.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 6 (2019 - 6 ) .

4.	TANGIBLE FIXED ASSETS

Freehold

Plant and

Motor

Computer

property

machinery

vehicles

equipment

Totals

£

£

£

£

£

COST

At 1 September 2019

792,374

97,881

14,490

16,517

921,262

Additions

-

-

13,500

-

13,500

At 31 August 2020

792,374

97,881

27,990

16,517

934,762

DEPRECIATION

At 1 September 2019

250,911

79,616

6,679

14,889

352,095

Charge for year

15,847

4,566

2,797

1,189

24,399

At 31 August 2020

266,758

84,182

9,476

16,078

376,494

NET BOOK VALUE

At 31 August 2020

525,616

13,699

18,514

439

558,268

At 31 August 2019

541,463

18,265

7,811

1,628

569,167

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Motor

vehicles

£

COST

At 1 September 2019

and 31 August 2020

14,490

DEPRECIATION

At 1 September 2019

6,679

Charge for year

1,953

At 31 August 2020

8,632

NET BOOK VALUE

At 31 August 2020

5,858

At 31 August 2019

7,811

5.

STOCKS

31.8.20

31.8.19

£

£

Stocks

70,107

53,776

6.

DEBTORS

31.8.20

31.8.19

£

£

Amounts falling due within one year:

Trade debtors

154,251

139,095

Value added tax

-

1,886

154,251

140,981

Amounts falling due after more than one year:

Other debtors

406,645

406,645

Aggregate amounts

560,896

547,626

Other debtors include a loan to Steel Frame Builds Ltd that has shareholders and directors in common.

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.8.20

31.8.19

£

£

Bank loans and overdrafts (see note 9)

20,808

19,843

Hire purchase contracts

-

4,283

Trade creditors

56,714

21,850

Taxation

10,118

18,613

Social security and other taxes

6,127

-

Value added tax

2,530

-

Directors' current accounts

42,392

85,315

Accruals

3,400

3,400

142,089

153,304

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.8.20

31.8.19

£

£

Bank loans (see note 9)

539,138

559,947

Amounts falling due in more than five years:

Repayable by instalments

Bank loans more than 5 years

by instalments

446,149

470,971

446,149

470,971

The bank loan is secured by way of a legal charge on the properties concerned.

9.

LOANS

An analysis of the maturity of loans is given below:

31.8.20

31.8.19

£

£

Amounts falling due within one year or on demand:

Bank loans

20,808

19,843

Amounts falling due between two and five years:

Bank loans - 2-5 years

92,989

88,976

Amounts falling due in more than five years:

31.8.20

31.8.19

£

£

Amounts falling due in more than five years:

Repayable by instalments

Bank loans more than 5 years

by instalments

446,149

470,971

446,149

470,971

10.	PROVISIONS FOR LIABILITIES

31.8.20

31.8.19

£

£

Deferred tax

Accelerated capital allowances

6,204

5,264

Deferred

tax

£

Balance at 1 September 2019

5,264

Charge to Statement of Income and Retained Earnings during year

940

Balance at 31 August 2020

6,204

11.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

31.8.20

31.8.19

value:

£

£

4

Ordinary

£ 1

4

4