Drallim Industries Limited - Accounts to registrar (filleted) - small 22.3
Drallim Industries Limited - Accounts to registrar (filleted) - small 22.3
| REGISTERED NUMBER: |
| DRALLIM INDUSTRIES LIMITED |
| FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 30TH JUNE 2022 |
| DRALLIM INDUSTRIES LIMITED (REGISTERED NUMBER: 00606278) |
| CONTENTS OF THE FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 30TH JUNE 2022 |
| Page |
| Company Information | 1 |
| Balance Sheet | 2 | to | 4 |
| Notes to the Financial Statements | 5 | to | 14 |
| DRALLIM INDUSTRIES LIMITED |
| COMPANY INFORMATION |
| FOR THE YEAR ENDED 30TH JUNE 2022 |
| DIRECTORS: |
| SECRETARY: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| ACCOUNTANTS: |
| Chartered Accountants |
| 20 Eversley Road |
| Bexhill-on-Sea |
| East Sussex |
| TN40 1HE |
| BANKERS: |
| 4 Robertson Street |
| Hastings |
| East Sussex |
| TN34 1HW |
| SOLICITORS: |
| 3 Lonsdale Gardens |
| Tunbridge Wells |
| Kent |
| TN1 1NX |
| DRALLIM INDUSTRIES LIMITED (REGISTERED NUMBER: 00606278) |
| BALANCE SHEET |
| 30TH JUNE 2022 |
| 2022 | 2021 |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Tangible assets | 4 |
| Investments | 5 |
| CURRENT ASSETS |
| Stocks | 6 |
| Debtors | 7 |
| Cash in hand |
| CREDITORS |
| Amounts falling due within one year | 8 |
| NET CURRENT ASSETS |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| CREDITORS |
| Amounts falling due after more than one year |
9 |
( |
) |
| PROVISIONS FOR LIABILITIES | 12 | ( |
) |
| PENSION LIABILITY | 15 | ( |
) | ( |
) |
| NET ASSETS |
| DRALLIM INDUSTRIES LIMITED (REGISTERED NUMBER: 00606278) |
| BALANCE SHEET - continued |
| 30TH JUNE 2022 |
| 2022 | 2021 |
| Notes | £ | £ | £ | £ |
| CAPITAL AND RESERVES |
| Called up share capital | 13 |
| Share premium |
| Revaluation reserve | 14 |
| Retained earnings |
| SHAREHOLDERS' FUNDS |
| 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. |
| In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered. |
| DRALLIM INDUSTRIES LIMITED (REGISTERED NUMBER: 00606278) |
| BALANCE SHEET - continued |
| 30TH JUNE 2022 |
| The financial statements were approved by the Board of Directors and authorised for issue on |
| DRALLIM INDUSTRIES LIMITED (REGISTERED NUMBER: 00606278) |
| NOTES TO THE FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 30TH JUNE 2022 |
| 1. | STATUTORY INFORMATION |
| Drallim Industries Limited is a |
| The presentation currency of the financial statements is the Pound Sterling (£). |
| 2. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| Preparation of consolidated financial statements |
| The financial statements contain information about Drallim Industries Limited as an individual company and do not contain consolidated financial information as the parent of a group. The subsidiary companies are dormant or non trading and any consolidation would not be material. |
| Related party exemption |
| The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
| Turnover |
| Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
| Turnover is recognised to the extent that the company has obtained the right to consideration through its performance under the contract. Where contracts are in progress at the year end, but have not been billed, revenue and profit is recognised to the extent that the company has obtained the right to consideration. |
| Tangible fixed assets |
| Depreciation is provided at the following annual rates in order to write down each asset over its estimated useful life taking into account the approximate residual value on disposal. |
Freehold property | - straight line over 40 years from the date of construction |
| Plant and machinery | - 10% on cost |
| Computer equipment, fixtures and fittings | - 20 - 50% on cost |
| Motor vehicles | - 25% on cost |
| No depreciation is provided on freehold land. |
| Investments in subsidiaries |
| Investments in subsidiary undertakings are recognised at cost. |
| DRALLIM INDUSTRIES LIMITED (REGISTERED NUMBER: 00606278) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30TH JUNE 2022 |
| 2. | ACCOUNTING POLICIES - continued |
| Stocks |
| Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
| Taxation |
| Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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. |
| Research and development |
| Expenditure on research and development is written off in the year in which it is incurred. |
| 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. |
| Hire purchase and leasing commitments |
| Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
| Pension costs and other post-retirement benefits |
| The company operates a defined benefit pension scheme closed to new accruals at 30 June 2016. The current pension deficit is spread in the profit and loss account over the remaining service lives of current employees. |
| The company operates a defined contribution scheme. The contributions are charged to the profit and loss account and the assets of the scheme are held separately from those of the company in an independently administered fund. |
| DRALLIM INDUSTRIES LIMITED (REGISTERED NUMBER: 00606278) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30TH JUNE 2022 |
| 2. | ACCOUNTING POLICIES - continued |
| Government grants |
| Grants are credited to deferred revenue. Grants towards capital expenditure are released to the profit and loss account over the expected useful life of the assets. Grants towards revenue expenditure are released to the profit and loss account as the related expenditure is incurred. |
| 3. | EMPLOYEES AND DIRECTORS |
| The average number of employees during the year was |
| 4. | TANGIBLE FIXED ASSETS |
| Computer |
| equipment, |
| fixtures |
| Freehold | Plant and | and | Motor |
| property | machinery | fittings | vehicles | Totals |
| £ | £ | £ | £ | £ |
| COST OR VALUATION |
| At 1st July 2021 |
| Additions |
| Disposals | ( |
) | ( |
) |
| Revaluations |
| At 30th June 2022 |
| DEPRECIATION |
| At 1st July 2021 |
| Charge for year |
| Eliminated on disposal | ( |
) | ( |
) |
| Revaluation adjustments | ( |
) | ( |
) |
| At 30th June 2022 |
| NET BOOK VALUE |
| At 30th June 2022 |
| At 30th June 2021 |
| Included in cost or valuation of land and buildings is freehold land of £ 368,000 (2021 - £ 270,000 ) which is not depreciated. |
| The freehold land and buildings was professionally revalued on 30th June 2022, by a RICS registered valuer. |
| DRALLIM INDUSTRIES LIMITED (REGISTERED NUMBER: 00606278) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30TH JUNE 2022 |
| 4. | TANGIBLE FIXED ASSETS - continued |
| Cost or valuation at 30th June 2022 is represented by: |
| Computer |
| equipment, |
| fixtures |
| Freehold | Plant and | and | Motor |
| property | machinery | fittings | vehicles | Totals |
| £ | £ | £ | £ | £ |
| Valuation in 2022 | 1,029,492 | - | - | - | 1,029,492 |
| Cost | 3,320,508 | 340,816 | 154,695 | 61,320 | 3,877,339 |
| 4,350,000 | 340,816 | 154,695 | 61,320 | 4,906,831 |
| 5. | FIXED ASSET INVESTMENTS |
| Shares in |
| group |
| undertakings |
| £ |
| COST |
| At 1st July 2021 |
| and 30th June 2022 |
| NET BOOK VALUE |
| At 30th June 2022 |
| At 30th June 2021 |
| The company's investments at the Balance Sheet date in the share capital of companies include the following: |
| Registered office: Inside of the United Kingdom |
| Nature of business: |
| % |
| Class of shares: | holding |
| 2022 | 2021 |
| £ | £ |
| Aggregate capital and reserves |
| DRALLIM INDUSTRIES LIMITED (REGISTERED NUMBER: 00606278) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30TH JUNE 2022 |
| 5. | FIXED ASSET INVESTMENTS - continued |
| Registered office: Inside of the United Kingdom |
| Nature of business: |
| % |
| Class of shares: | holding |
| 2022 | 2021 |
| £ | £ |
| Aggregate capital and reserves |
| Registered office: Inside of the United Kingdom |
| Nature of business: |
| % |
| Class of shares: | holding |
| 2022 | 2021 |
| £ | £ |
| Aggregate capital and reserves |
| Registered office: Outside of the United Kingdom |
| Nature of business: |
| % |
| Class of shares: | holding |
| 2022 | 2021 |
| £ | £ |
| Aggregate capital and reserves | ( |
) | ( |
) |
| Registered office: Outside of the United Kingdom |
| Nature of business: |
| % |
| Class of shares: | holding |
| 6. | STOCKS |
| 2022 | 2021 |
| £ | £ |
| Inventory parts |
| DRALLIM INDUSTRIES LIMITED (REGISTERED NUMBER: 00606278) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30TH JUNE 2022 |
| 7. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2022 | 2021 |
| £ | £ |
| Trade debtors |
| Other debtors |
| Tax |
| VAT |
| Accrued income |
| Prepayments |
| 8. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2022 | 2021 |
| £ | £ |
| Trade creditors |
| Amounts owed to group undertakings |
| Social security and other taxes |
| VAT | 10,448 | - |
| Other creditors |
| Accrued expenses |
| 9. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
| 2022 | 2021 |
| £ | £ |
| Other creditors |
| Provision is made for compensation on loss of office for the Executive Directors on termination at a future date yet to be determined. |
| 10. | LEASING AGREEMENTS |
| Minimum lease payments under non-cancellable operating leases fall due as follows: |
| 2022 | 2021 |
| £ | £ |
| Within one year |
| Between one and five years |
| 11. | SECURED DEBTS |
| On 1st March 2021, HSBC Bank plc were granted a charge over cash deposits totalling £170,500 held by the company and deposited with the bank on a 1 month revolving fixed rate deposit. The charge covers all present and future debts, money and liabilities owed to HSBC Bank plc including interest, fees, costs and expenses. |
| DRALLIM INDUSTRIES LIMITED (REGISTERED NUMBER: 00606278) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30TH JUNE 2022 |
| 12. | PROVISIONS FOR LIABILITIES |
| 2022 | 2021 |
| £ | £ |
| Deferred tax | 36,044 | - |
| Deferred |
| tax |
| £ |
| Charge/(credit) to other |
| comprehensive income during |
| the year | 36,044 |
| Balance at 30th June 2022 |
| 13. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 2022 | 2021 |
| value: | £ | £ |
| Ordinary | £1 | 400,000 | 400,000 |
| 14. | RESERVES |
| Revaluation |
| reserve |
| £ |
| Increase to property revaluation reserve |
1,043,980 |
| At 30th June 2022 |
| 15. | EMPLOYEE BENEFIT OBLIGATIONS |
| The Company sponsors Drallim Industries Limited Retirement Benefit Scheme, a funded defined benefit pension scheme in the UK. The scheme is set up on a tax relieved basis as a separate trust independent of the Company and is supervised by its Trustees. They are responsible for ensuring that the correct benefits are paid, that the scheme is appropriately funded and that scheme assets are appropriately invested. |
| The Company pays the cost as determined by the annual actuarial valuations. The Trustees are required to use prudent assumptions to value the liabilities and costs of the scheme whereas the accounting assumptions must be best estimates. Following the formal actuarial valuation dated 30 June 2019, the company agreed to pay increased monthly contributions from 1 October 2019 of £17,250 per month for 7 years and 9 months until 30 June 2027 as set out in the Schedule of Contributions dated 24 September 2020 and the scheme deficit recovery plan dated 30th September 2020, submitted and accepted by the Pension Regulator. |
| DRALLIM INDUSTRIES LIMITED (REGISTERED NUMBER: 00606278) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30TH JUNE 2022 |
| 15. | EMPLOYEE BENEFIT OBLIGATIONS - continued |
| The amounts recognised in the balance sheet are as follows: |
| Defined benefit |
| pension plans |
| 2022 | 2021 |
| £ | £ |
| Present value of funded obligations | ( |
) | ( |
) |
| Fair value of plan assets |
| (147,000 | ) | (1,837,000 | ) |
| Present value of unfunded obligations |
| Deficit | ( |
) | ( |
) |
| Deferred tax asset |
| Net liability | ( |
) | ( |
) |
| The amounts recognised in profit or loss are as follows: |
| Defined benefit |
| pension plans |
| 2022 | 2021 |
| £ | £ |
| Current service cost |
| Net interest from net defined benefit asset/liability |
33,000 |
39,000 |
| Past service cost |
| 33,000 | 39,000 |
| Actual return on plan assets | ( |
) |
| Actual return on plan assets is represented by the following amounts: |
| 2022 | 2021 |
| £ | £ |
| Income return | 94,000 | 67,000 |
| Capital return | (193,000 | ) | 682,000 |
| (99,000 | ) | 749,000 |
| DRALLIM INDUSTRIES LIMITED (REGISTERED NUMBER: 00606278) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30TH JUNE 2022 |
| 15. | EMPLOYEE BENEFIT OBLIGATIONS - continued |
| Changes in the present value of the defined benefit obligation are as follows: |
| Defined benefit |
| pension plans |
| 2022 | 2021 |
| £ | £ |
| Opening defined benefit obligation |
| Interest cost |
| Actuarial losses/(gains) | ( |
) | ( |
) |
| Benefits paid | ( |
) | ( |
) |
| Changes in the fair value of scheme assets are as follows: |
| Defined benefit |
| pension plans |
| 2022 | 2021 |
| £ | £ |
| Opening fair value of scheme assets (adjusted) |
| Contributions by employer |
| Assets expenses | (3,000 | ) | (8,000 | ) |
| Expected return | 94,000 | 67,000 |
| Actuarial gains/(losses) | ( |
) |
| Benefits paid | (719,000 | ) | (205,000 | ) |
| The amounts recognised in other comprehensive income are as follows: |
| Defined benefit |
| pension plans |
| 2022 | 2021 |
| £ | £ |
| Actuarial gains/(losses) |
| 1,690,000 | 953,000 |
| The major categories of scheme assets as a percentage of total scheme assets are as follows: |
| Defined benefit |
| pension plans |
| 2022 | 2021 |
| Diversified Growth Fund | 100% | 100% |
| 100.00% | 100.00% |
| DRALLIM INDUSTRIES LIMITED (REGISTERED NUMBER: 00606278) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30TH JUNE 2022 |
| 15. | EMPLOYEE BENEFIT OBLIGATIONS - continued |
| Principal actuarial assumptions at the balance sheet date (expressed as weighted averages): |
| 2022 | 2021 |
| Liability discount rate |
| Inflation assumption - RPI |
| Inflation assumption - CPI |
| Revaluation of deferred pensions |
| Increases for pensions in payment |
| Proportion of employees commuting pension for cash | 100% | 100% |
| Forecast mortality rates are: |
| Male aged 65 at year end | 86.9 | 86.9 |
| Female aged 65 at year end | 89.3 | 89.3 |
| Male aged 45 at year end | 88.2 | 88.2 |
| Female aged 45 at year end | 90.7 | 90.7 |
| Sensitivity rates |
| The increase in the scheme deficit in the current financial year for each 0.1% change in the variable rate for the following assumptions amounted to: |
| 2022 | 2021 |
| Inflation rate increase | £66,000 | £114,000 |
| Discount rate decrease | £63,000 | £116,000 |
| The pension scheme deficit after tax relief measured by the Scheme Actuary using current practice applying a discount rate of 3.80% based on the current return on 17 year high grade (AA rated) corporate bonds amounts to £119,070. The pension scheme's assets are currently invested in a Diversified Growth Fund with a benchmark return of 5% per annum over 1 month SONIA before charges of 0.65%. |
| Defined contribution scheme |
| The company operates a defined contribution pension scheme available to all staff and the contributions are charged to the profit and loss account. |
| 16. | CONTINGENT LIABILITIES |
| Deferred guarantees totalling £96,935 were outstanding at 30 June 2022 (2021 - £10,000). |
| 17. | CONTROLLING PARTIES |
| Throughout the year the company was under the control of the board of directors. The ultimate controlling party is the A W Millard 1983 Trust, which has the majority shareholding in the company. |