MD Audio Solutions Limited 30/06/2020 iXBRL

MD Audio Solutions Limited 30/06/2020 iXBRL

MD AUDIO SOLUTIONS LIMITED - Company Information

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Company registration number: 07952397
MD Audio Solutions Limited
Unaudited filleted financial statements
30 June 2020
MD AUDIO SOLUTIONS LIMITED
Contents
Statement of financial position
Notes to the financial statements
MD AUDIO SOLUTIONS LIMITED
STATEMENT OF FINANCIAL POSITION
30 JUNE 2020
2020 2019
Note £ £ £ £
Fixed assets
Intangible assets 5 - -
Tangible assets 6 86,904 88,276
_______ _______
86,904 88,276
Current assets
Stocks 149,780 148,029
Debtors 7 4,926 3,045
Cash at bank and in hand - 21,416
_______ _______
154,706 172,490
Creditors: amounts falling due
within one year 8 ( 196,342) ( 156,810)
_______ _______
Net current (liabilities)/assets ( 41,636) 15,680
_______ _______
Total assets less current liabilities 45,268 103,956
Creditors: amounts falling due
after more than one year 9 ( 56,000) ( 76,475)
Provisions for liabilities ( 678) ( 939)
_______ _______
Net (liabilities)/assets ( 11,410) 26,542
_______ _______
Capital and reserves
Called up share capital 100 100
Profit and loss account 10 ( 11,510) 26,442
_______ _______
Shareholders (deficit)/funds ( 11,410) 26,542
_______ _______
For the year ending 30 June 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 their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.
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 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 comprehensive income has not been delivered.
These financial statements were approved by the board of directors and authorised for issue on 30 June 2021 , and are signed on behalf of the board by:
Mr M Dibley
Director
Company registration number: 07952397
MD AUDIO SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 30 JUNE 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 26-28 Southernhay East, Exeter, Devon, EX1 1NS.
Principal activity
The principal activity of the company is the retail sale of audio and video equipment.
2. Statement of compliance
These financial statements have been prepared in compliance with the provisions of FRS 102, Section 1A, 'The Financial Reporting Standard applicable in the UK and 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 and investment properties 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
As at 30 June 2020 the company had net liabilities of £11,410. The director has expressed his continued support of the company and therefore consider the going concern basis of accounting to be appropriate.
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.Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome.
Turnover
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership 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.
Taxation
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in the statement of comprehensive income, except to the extent that it relates to items recognised in other comprehensive income or directly in capital and reserves. In this case, tax is recognised in other comprehensive income or directly in capital and reserves, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that 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 that are expected to apply to the reversal of the timing difference.
Operating leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Tangible assets
tangible assets are initially recorded at cost, and are 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 capital and reserves, 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 capital and reserves in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in capital and reserves 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:
Short leasehold property - 5 Years
Office equipment - 33.33 % straight line
Fixtures & fittings - 25 % reducing balance
If there is an indication that there has been a significant change in depreciation rate, useful life or residual value of tangible assets, the depreciation is revised prospectively to reflect the new estimates.
Impairment
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. When it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.
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 stocks to their present location and condition.
Government grants
Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Government grants are recognised using the accrual model and the performance model. Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable. Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income and not deducted from the carrying amount of the asset. Under the performance model, where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event; it is probable 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 the obligation, the unwinding of the discount is recognised in finance costs in profit or loss in the period it arises.
Financial instruments
A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Defined contribution plans
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. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised in finance costs in profit or loss in the period in which it arises.
4. Employee numbers
The average number of persons employed by the company during the year amounted to 3 (2019: 3 ).
5. Intangible assets
Goodwill Total
£ £
Cost
At 1 July 2019 and 30 June 2020 12,000 12,000
_______ _______
Amortisation
At 1 July 2019 and 30 June 2020 12,000 12,000
_______ _______
Carrying amount
At 30 June 2020 - -
_______ _______
At 30 June 2019 - -
_______ _______
6. Tangible assets
Short leasehold property Office equipment Fixtures and fittings Total
£ £ £ £
Cost
At 1 July 2019 83,333 8,062 15,324 106,719
Additions 20,833 - - 20,833
_______ _______ _______ _______
At 30 June 2020 104,166 8,062 15,324 127,552
_______ _______ _______ _______
Depreciation
At 1 July 2019 - 6,807 11,636 18,443
Charge for the year 20,833 450 922 22,205
_______ _______ _______ _______
At 30 June 2020 20,833 7,257 12,558 40,648
_______ _______ _______ _______
Carrying amount
At 30 June 2020 83,333 805 2,766 86,904
_______ _______ _______ _______
At 30 June 2019 83,333 1,255 3,688 88,276
_______ _______ _______ _______
7. Debtors
2020 2019
£ £
Other debtors 4,926 3,045
_______ _______
8. Creditors: amounts falling due within one year
2020 2019
£ £
Bank loans and overdrafts 30,810 21,000
Trade creditors 76,934 48,270
Social security and other taxes 2,828 2,645
Other creditors 85,770 84,895
_______ _______
196,342 156,810
_______ _______
9. Creditors: amounts falling due after more than one year
2020 2019
£ £
Bank loans and overdrafts 56,000 76,475
_______ _______
10. Reserves
Profit and loss account:This reserve records retained earnings and accumulated losses .
11. Other financial commitments
As at 30 June 2020 the company had operating lease commitments totalling £158,125 (2019: £32,542).
12. Events after the end of the reporting period
In March 2020 the UK Government announced measures to mitigate the spread of coronavirus (COVID-19) within the UK, including social distancing and a lockdown. Despite these measures being supplemented by a range of financial support packages made available to businesses, the directors consider that overall there will be an adverse financial impact on the business in the remainder of 2020. The financial effect of this cannot be reliably estimated given the inherent uncertainties surrounding the situation, including the longer-term impact this has had on economic activity and the possibility of future resurgence of the virus.
13. Directors advances, credits and guarantees
During the year the director entered into the following advances and credits with the company:
Loans to / (from) director at 1 July 2019 Loans to / (from) the director Amounts repaid Balance at 30 June 2020
£ £ £ £
Director ( 24,336) 28,297 ( 36,200) ( 32,239)
_______ _______ _______ _______
Loans to / (from) director at 1 July 2018 Loans to / (from) the director Amounts repaid Balance at 30 June 2019
£ £ £ £
Director ( 17,278) 46,942 ( 54,000) ( 24,336)
_______ _______ _______ _______
Directors' loans are repayable on demand and subject to interest on overdrawn balances at the official rate.