SHERWOOD_CARPET_COMPANY_L - Accounts

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Sherwood Carpet Company Limited for the year ended 31 January 2015 set out on pages 3 to 8 from the company's accounting records and from information and explanations you have given us.

As a practising member firm of the Association of Chartered Certified Accountants, we are subject to its ethical and other professional requirements which are detailed at http://www.accaglobal.com/en/member/professional-standards/rules-standards/acca-rulebook.html.

This report is made solely to the Board of Directors of Sherwood Carpet Company Limited, as a body, in accordance with the terms of our engagement letter dated 17 March 2014. Our work has been undertaken solely to prepare for your approval the financial statements of Sherwood Carpet Company Limited and state those matters that we have agreed to state to the Board of Directors of Sherwood Carpet Company Limited, as a body, in this report in accordance with the requirements of the Association of Chartered Certified Accountants as detailed at http://www2.accaglobal.com/pubs/members/publications/technical_factsheets/downloads/163.doc. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Sherwood Carpet Company Limited and its Board of Directors as a body, for our work or for this report.

It is your duty to ensure that Sherwood Carpet Company Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Sherwood Carpet Company Limited. You consider that Sherwood Carpet Company Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the financial statements of Sherwood Carpet Company Limited. 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 statutory financial statements.

Directors' responsibilities:

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Approved by the Board for issue on 3 November 2015

The financial statements are prepared in accordance with applicable United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), which have been applied consistently (except as otherwise stated).

Rentals payable under operating leases are charged against income on a straight line basis over the lease term.

Stock is valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year to which they relate.