Linell Energy Services Steel Company Ltd - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: SC558610

LINELL ENERGY SERVICES STEEL COMPANY LTD

UNAUDITED FINANCIAL STATEMENTS

FOR THE PERIOD 1 JANUARY 2021 TO 30 SEPTEMBER 2021

Page

Balance Sheet

1

Notes to the Financial Statements

2

CURRENT ASSETS

Cash at bank

15,061

22,110

CREDITORS

Amounts falling due within one year

5

37,129

42,645

NET CURRENT LIABILITIES

(22,068

)

(20,535

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(22,068

)

(20,535

)

CAPITAL AND RESERVES

Called up share capital

50,000

50,000

Retained earnings

(72,068

)

(70,535

)

(22,068

)

(20,535

)

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the period ended 30 September 2021.

The members have not required the company to obtain an audit of its financial statements for the period ended 30 September 2021 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 Profit and Loss Account has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 23 June 2022 and were signed on its behalf by:

D F Whyte - Director

1.	STATUTORY INFORMATION

Linell Energy Services Steel Company Ltd is a private company, limited by shares, registered in Scotland. The company's registered office is . Russell Street, Johnstone, Renfrewshire, Scotland, PA5 8BZ

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.

Accounting period end date

The financial statements cover a period of 9 months to 30 September 2021. Therefore comparative amounts presented in the financial statements (including the related notes) are not entirely comparable as these cover a period of 12 months to 31 December 2020.

Going concern basis

The financial statements have been prepared on a going concern basis which assumes that the company will be able to finance its future operations and obligations. The shareholders' have agreed to continue to support the company for the foreseeable future. Furthermore, the validity of this company is also dependent on the financial performance of the company following the restrictions and other conditions placed throughout the UK due to the Covid 19 pandemic. The directors continue to adopt a going concern basis of accounting and preparing the financial statements.

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.

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.

Turnover

Turnover represents the invoice value of goods supplied and services rendered, exclusive of value added tax. The company's policy is to recognise a sale when substantively 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.

Computer equipment

-

33.3% on cost

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

Impairment of non-financial assets

At each reporting date non-financial assets not carried at fair value, like 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 of value 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.

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 and loans to and from 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.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

Cash and cash equivalents includes cash held at bank

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 directors consider 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.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the period was NIL (2020 - NIL).

4.	TANGIBLE FIXED ASSETS

Computer

equipment

£

COST

At 1 January 2021

and 30 September 2021

1,400

DEPRECIATION

At 1 January 2021

and 30 September 2021

1,400

NET BOOK VALUE

At 30 September 2021

-

5.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Trade creditors

-

890

Amounts owed to related parties

30,854

30,954

Taxation and social security

2,525

7,051

Other creditors

3,750

3,750

37,129

42,645

6.	ULTIMATE CONTROLLING PARTY

The company's controlling entity is Linell International Forged Alloys Ltd, a company incorporated in Scotland. Linell International Forged Alloys Ltd is a 67% owned subsidiary company of The Linell Group Ltd., also incorporated in Scotland, a company which is under the control of D F Whyte and M G Elliott by virtue of their combined 100% shareholding in that company.The company registered address is C/O Linell Group Limited, Russell Street, Johnstone, Renfrewshire, PA5 8BZ.