KMDL_Engineering_NI_Ltd_31_Dec_2020_companies_house_set_of_accounts.html

KMDL ENGINEERING (NI) LTD - Company Information

Company registration number:

NI601446

KMDL Engineering (NI) Ltd

Unaudited Filleted Financial Statements for the year ended

31 December 2020

KMDL Engineering (NI) Ltd

Chartered accountant's report to the board of directors on the unaudited statutory financial statements of KMDL Engineering (NI) Ltd

Year ended

31 December 2020

In order to assist you to fulfil your duties under the Companies Act 2006, we have compiled the

financial statements

of the company which comprise the income statement, statement of financial position, statement of changes in equity and related notes from the accounting records and information and explanations you have given to us.

This report is made to the Company’s Board of Directors, as a body, in accordance with the terms of our engagement. Our work has been undertaken so that we might compile the

financial statements

that we have been engaged to compile, report to the Company’s Board of Directors that we have done so, and state those matters that we have agreed to state to them in this report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company’s Board of Directors, as a body, for our work, or for this report.

We have carried out this engagement in accordance with guidance issued by the Institute of Chartered Accountants in Ireland and have complied with the Code of Ethics for Members published by the Institute relating to members undertaking the compilation of

financial statements

You have acknowledged on the statement of financial position for the year ended

31 December 2020

your duty under the Companies Act 2006 to ensure that the company has kept adequate accounting records and prepared

financial statements

which give a true and fair view of the assets, liabilities and financial position of the company at the end of its year and of its profit or loss for that year, and otherwise comply with the provisions of the Companies Act 2006 relating to

financial statements

so far as they are applicable to the company. You consider that the company is exempt from the statutory requirement for an audit for the year.

We have not been instructed to carry out an audit of the

financial statements

. 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

financial statements

Arthur Boyd & Company

Chartered Accountants

5th Floor, Causeway Tower

9 James Street South

Belfast

BT2 8DN

United Kingdom

Date:

9 October 2021

KMDL Engineering (NI) Ltd

Statement of Financial Position

31 December 2020

		2020		2019
	Note	£		£
Fixed assets
Tangible assets	5	9,539		11,478
Current assets
Stocks		18,900		20,444
Debtors	6	358,002		359,983
Cash at bank and in hand		207,437		96,393
		584,339		476,820
Creditors: amounts falling due within one year	7	(452,096	)	(258,997	)
Net current assets		132,243		217,823
Total assets less current liabilities		141,782		229,301
Creditors: amounts falling due after more than one year	8	(194,164	)	-
Provisions for liabilities		(1,813	)	(1,951	)
Net (liabilities)/assets		(54,195	)	227,350
Capital and reserves
Called up share capital		50		100
Other reserves		50		-
Profit and loss account		(54,295	)	227,250
Shareholders (deficit)/funds		(54,195	)	227,350

For the year ending

31 December 2020

, the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' 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 directors acknowledge 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.

In accordance with Section 444 of the Companies Act 2006, the income statement has not been delivered.

These

financial statements

were approved by the board of directors and authorised for issue on

9 October 2021

, and are signed on behalf of the board by:

Mr Kenneth Maginty

Director

Company registration number:

NI601446

KMDL Engineering (NI) Ltd

Notes to the Financial Statements

Year ended

31 December 2020

1 General information

The company is a private company limited by shares and is registered in Northern Ireland. The address of the registered office is

Unit 6a

30 Island Street

Belfast

Co Antrim

BT4 1DH

, United Kingdom.

2 Statement of compliance

These

financial statements

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

3 Accounting policies

Basis of preparation

The

financial statements

have been prepared under the historical cost basis, as modified by the revaluation of certain financial assets and liabilities measured at fair value.

The

financial statements

are prepared in sterling, which is the functional currency of the company.

Going concern

Although the company incurred a loss for the year of £29,095 which, together with the company buy back of own shares referred to at note 9 has lead to a deficit of £54,295 at the year end, the director has considered a period of 12 months from the date of signing these financial statements and is confident that this position is temporary , the company can continue to trade as a going concern for a period of at least 12 months, and anticipates that this deficit will be reversed in the coming year and it therefore remains appropriate to prepare the accounts on a going concern basis.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and Value Added Tax.

Sale of goods

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company, and the costs incurred or to be incurred in respect of the transaction can be measured reliably. This is usually on dispatch of the goods.

Construction contracts

When the outcome of a construction contract can be estimated reliably, contract costs and turnover are recognised by reference to the stage of completion of the contract at the Statement of Financial Position date. Turnover is recognised as works certified as complete by appropriate professionals experienced in the recognition and measurement of such works. Stage completion is measured by reference to such certified turnover as a percentage of total anticipated contract turnover, and costs recognised accordingly in cost of sales.

Where the outcome cannot be measured reliably, contract costs are recognised as an expense in the period in which they are incurred and contract turnover is recognised to the extent of costs incurred that it is probable will be recovered. When it is probable that contract costs will exceed the total contract turnover, the expected loss is recognised as an expense immediately.

Current tax

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively.

The 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.

Tangible assets

Tangible assets are initially measured at cost, and are subsequently measured at cost less any accumulated depreciation and accumulated impairment losses or at a revalued amount.

Any tangible assets carried at a revalued amount 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. However, the increase is recognised in profit or loss to the extent that 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. If a revaluation decrease exceeds the accumulated revaluation gains accumulated in capital and reserves in respect of that asset, the excess is recognised in profit or loss.

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

Plant and machinery	25% reducing balance
Office equipment	25% straight line
Motor vehicles	25% reducing balance

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 and impairment loss is recognised in the statement of Income & Retained Earning unless the asset is carried at a revalued amount where the impairment is a revaluation decrease.

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. In the case of work-in-progress and finished goods, cost includes a relevant proportion of overheads according to the stage of manufacture / completion. Provision is made for obsolete, slow moving or damaged stock where appropriate.

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 entity 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 entity 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.

Financial instruments

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the transaction price and are subsequently measured as follows: Debt instruments are subsequently measured at amortised cost and commitments to receive a loan and to make a loan to another entity are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment.

All other financial instruments, including derivatives, are initially recognised at fair value, which is normally the transaction price and are subsequently measured at fair value, with any changes recognised in profit or loss.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately.

All equity instruments regardless of significance, and other financial assets that are individually significant, are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics.

Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

Deferred tax

Deferred tax is recognised in respect of all timing differences at the reporting date. Timing differences are differences between assessable profits for tax purposes and profits reflected in the financial statements that arise as a result of including items of income and expense in tax assessments in periods different from those in which they are recognised in the financial statements. 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.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date that are expected to apply to the reversal of timing differences.

Provisions for liabilities

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.

Defined contribution pension plan

The company operates a defined contribution pension scheme for the benefit of its employees.

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 as a finance cost in profit or loss in the period in which it arises.

4 Average number of employees

The average number of persons employed by the company during the year was

(2019:

5 Tangible assets

	Plant and machinery etc.
	£
Cost
At 1 January 2020	64,548
Additions	1,603
At 31 December 2020	66,151
Depreciation
At 1 January 2020	53,070
Charge	3,542
At 31 December 2020	56,612
Carrying amount
At 31 December 2020	9,539
At 31 December 2019	11,478

6 Debtors

	2020	2019
	£	£
Trade debtors	348,564	352,196
Other debtors	9,438	7,787
	358,002	359,983

7 Creditors: amounts falling due within one year

	2020	2019
	£	£
Bank loans and overdrafts	43,144	-
Trade creditors	162,139	91,259
Taxation and social security	31,850	128,779
Other creditors	214,963	38,959
	452,096	258,997

On 16 December 2020 the company granted to Ulster Bank Ltd a fixed and floating charge over all of the company assets, rights and undertakings as security for the bank borrowings.

8 Creditors: amounts falling due after more than one year

	2020		2019
	£		£
Bank loans and overdrafts	194,164		-

9 Share capital

Company Buy Back of Own Shares

As shown in the Statement of Changes in Equity on page 7, the company bought back 50% of its paid up share capital on 28 February 2020. At this time the company complied with all statutory requirements in respect of this purchase. This took place prior to the Covid 19 pandemic and ensuing lockdown which subsequently impacted trading performance and has resulted in an operating loss in the period.