WECS Precision Limited - Period Ending 2021-03-31
WECS Precision Limited - Period Ending 2021-03-31
Registration number:
for the Year Ended 31 March 2021
WECS Precision Limited
Contents
Section |
Page |
Director's Report |
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Statement of Financial Position |
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Notes to the Financial Statements |
WECS Precision Limited
Director's Report for the Year Ended 31 March 2021
The director presents his annual report on the affairs of WECS Precision Limited, together with the financial statements for the year ended 31 March 2021.
Principal activity
The principal activity of the company is machining.
Director of the company
The director who served throughout the year and up to date of authorisation of this report was as follows:
Small companies provision statement
The director has taken advantage of the small companies exemptions provided by sections 414B and 415A of the Companies Act 2006 from the requirement to prepare a strategic report and in preparing the director's report on the grounds that the company is entitled to prepare its accounts for the year in accordance with the small companies regime.
The director's report was approved by the Board on
.........................................
N J Pooles
Director
WECS Precision Limited
(Registration number: 05114474)
Statement of Financial Position as at 31 March 2021
Note |
2021 |
2020 |
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Non-current assets |
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Property, plant and equipment |
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Current assets |
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Inventories |
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Receivables |
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Cash at bank and in hand |
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Payables: Amounts falling due within one year |
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( |
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Net current assets |
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Total assets less current liabilities |
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Provisions for liabilities |
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( |
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Net assets |
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Equity |
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Called up share capital |
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Retained earnings |
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Total equity |
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WECS Precision Limited
(Registration number: 05114474)
Statement of Financial Position as at 31 March 2021 (continued)
For the financial year ending 31 March 2021 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Director's responsibilities:
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• |
The director acknowledges his responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. |
These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006 and in accordance with the provisions of FRS 102 Section 1A - small entities.
The director of the company has elected not to include a copy of the income statement within the financial statements.
Approved and authorised by the
.........................................
Director
WECS Precision Limited
Notes to the Financial Statements
for the Year Ended 31 March 2021
General information |
WECS Precision Limited (the 'company') is a private company limited by share capital incorporated in England and Wales under the Companies Act. The address of the registered office is given on page 1. The nature of the company’s operations and its principal activities are set out in the director's report on page 2.
Accounting policies |
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented.
Going concern
The director has considered the impact of COVID-19 on the company’s financial position, liquidity and future performance together with financial projections for the company and over the foreseeable future and have also reviewed the availability of banking facilities. After making enquiries, the director is satisfied that the company has sufficient resources to continue in operation for the foreseeable future, being at least 12 months from the date of signing the financial statements. Accordingly, he continues to adopt the going concern basis in preparing the company’s financial statements.
Statement of compliance
These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
The functional currency of the company is considered to be pound sterling (£) because that is the currency of the primary economic environment in which the company operates. The financial statements are presented in pound sterling (£).
Judgements
There are no critical judgements made by the director in the process of applying the company’s accounting policies which have the most significant effect on the amounts recognised in the financial statements. |
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable. excluding discounts, rebates, value added tax and other sales taxes.
WECS Precision Limited
Notes to the Financial Statements
for the Year Ended 31 March 2021 (continued)
2 |
Accounting policies (continued) |
Taxation
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when 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 and that are expected to apply to the reversal of the timing difference.
Property, plant and equipment
Property, plant and equipment are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of property, plant and equipment includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Fixtures and fittings |
10% straight line |
Plant and machinery |
10% straight line |
Motor vehicles |
25% straight line |
Office equipment |
33% straight line |
Goodwill
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.
WECS Precision Limited
Notes to the Financial Statements
for the Year Ended 31 March 2021 (continued)
2 |
Accounting policies (continued) |
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
Asset class |
Amortisation method and rate |
Goodwill |
10 years straight line |
Cash and cash equivalents
Cash ans cash equivalents comprise cash in hand and call deposits.
Receivables
Receivables are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Inventories
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.
Payables
Payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Financial instruments
WECS Precision Limited
Notes to the Financial Statements
for the Year Ended 31 March 2021 (continued)
Staff numbers |
The average number of persons employed by the company (including the director) during the year, was
Intangible assets |
Goodwill |
Total |
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Cost or valuation |
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At 1 April 2020 |
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At 31 March 2021 |
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Amortisation |
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At 1 April 2020 |
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At 31 March 2021 |
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Carrying amount |
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At 31 March 2021 |
- |
- |
At 31 March 2020 |
- |
- |
Property, plant and equipment |
Fixtures and fittings |
Plant and machinery |
Motor vehicles |
Office equipment |
Total |
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Cost |
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At 1 April 2020 |
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At 31 March 2021 |
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Depreciation |
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At 1 April 2020 |
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Charge for the year |
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- |
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At 31 March 2021 |
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Carrying amount |
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At 31 March 2021 |
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- |
- |
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At 31 March 2020 |
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- |
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WECS Precision Limited
Notes to the Financial Statements
for the Year Ended 31 March 2021 (continued)
Inventories |
2021 |
2020 |
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Raw materials and consumables |
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Receivables |
Note |
2021 |
2020 |
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Trade receivables |
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Loan to director |
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Other receivables |
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Tax recoverable |
42,692 |
42,692 |
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Prepayments |
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Cash and cash equivalents |
2021 |
2020 |
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Cash on hand |
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Cash at bank |
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Short-term deposits |
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Payables |
2021 |
2020 |
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Due within one year |
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Trade payables |
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Corporation tax |
50,287 |
39,046 |
Social security and other taxes |
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Other payables |
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Accrued expenses |
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WECS Precision Limited
Notes to the Financial Statements
for the Year Ended 31 March 2021 (continued)
Pension scheme |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £
Share capital and reserves |
Allotted, called up and fully paid shares
2021 |
2020 |
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No. |
£ |
No. |
£ |
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1,000 |
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1,000 |
The company has one class of share capital which carries no right to fixed income.
Reserves
The retained earnings reserve represents cumulative profit or losses net of dividends paid and other adjustments.
Obligations under leases and hire purchase contracts |
Operating leases
The total of future minimum lease payments is as follows:
2021 |
2020 |
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Not later than one year |
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Later than one year and not later than five years |
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Later than five years |
- |
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The amount of non-cancellable operating lease payments recognised as an expense during the year was £