Drilltec International Limited - Accounts to registrar (filleted) - small 23.2.5

REGISTERED NUMBER: SC083961 (Scotland)

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

FOR

DRILLTEC INTERNATIONAL LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTOR:

Mr T E O'Grady

SECRETARY:

Mrs J H Toseland

REGISTERED OFFICE:

7 Conference Square

Edinburgh

EH3 8AN

REGISTERED NUMBER:

SC083961 (Scotland)

SENIOR STATUTORY AUDITOR:

Mark Harrison BA(Hons) FCA

AUDITORS:

Mark J Rees LLP Chartered Accountants

Granville Hall

Granville Road

Leicester

Leicestershire

LE1 7RU

FIXED ASSETS

Tangible assets

4

-

-

CURRENT ASSETS

Debtors

5

3,263

4,670

Cash at bank

48,232

27,043

51,495

31,713

CREDITORS

Amounts falling due within one year

6

2,409,212

2,343,664

NET CURRENT LIABILITIES

(2,357,717

)

(2,311,951

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(2,357,717

)

(2,311,951

)

CAPITAL AND RESERVES

Called up share capital

7

5,400,000

5,400,000

Retained earnings

(7,757,717

)

(7,711,951

)

SHAREHOLDERS' FUNDS

(2,357,717

)

(2,311,951

)

The 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.

The financial statements were approved by the director and authorised for issue on 7 August 2023 and were signed by:

Mr T E O'Grady - Director

1.	STATUTORY INFORMATION

Drilltec International Limited is a private company, limited by shares , registered in Scotland. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Revenue from the sales of goods is recognised when all of the following conditions are satisfied:

- The Company has transferred the significant risks and rewards of ownership to the buyer;

- The Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

- The amount of revenue can be measured easily;

- It is probable that the Company will receive the consideration due under the transaction; and

- The costs incurred or to be incurred in respect of the transaction can be measured reliably.

Tangible fixed assets

The assets have been depreciated over their usual life and carry no value.

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.

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.

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently, where material, at amortised cost using the effective interest method, less any impairment.

Creditors

Short term creditors are measured at transaction price, less any impairment. Other financial liabilities, including bank loans are measured initially at fair value, net of transaction costs, and are measured subsequently, where material, at amortised cost using the effective interest method, less any impairment.

Going concern

The company incurred a net loss of £45,766 during the year and as of that date, the company's current liabilities exceeded its total assets by £2,357,717.

The directors have considered the working capital needs of the business for the foreseeable future, being at least the 12 month period from the approval of these financial statements. The Company meets its day-to-day working capital requirements by the continued support of the group/parent company, Drilltec Investors LCC, which has expressed its ongoing support although such support cannot be guaranteed.

On the basis that they consider future group support will be forthcoming, the directors believe that the Company will continue in operational existence for the foreseeable future and consider it appropriate to prepare the financial statements on a going concern basis.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 3 (2021 - 3 ) .

4.	TANGIBLE FIXED ASSETS

Fixtures

Plant and

and

machinery

fittings

Totals

£

£

£

COST

At 1 January 2022

and 31 December 2022

193,208

5,557

198,765

DEPRECIATION

At 1 January 2022

and 31 December 2022

193,208

5,557

198,765

NET BOOK VALUE

At 31 December 2022

-

-

-

At 31 December 2021

-

-

-

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Trade debtors

622

2,291

Other debtors

2,641

2,379

3,263

4,670

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Trade creditors

83

74

Amounts owed to group undertakings

2,402,045

2,336,740

Taxation and social security

532

525

Other creditors

6,552

6,325

2,409,212

2,343,664

7.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2022

2021

value:

£

£

5,150,000

Ordinary

£1

5,150,000

5,150,000

250,000

Redeemable preference shares

£1

250,000

250,000

5,400,000

5,400,000

Redeemable preference shares

The redeemable preference shares carry an entitlement to a dividend at the discretion of the Company. They may be redeemed at £1 per share at any time at the option of the Company. Holders of redeemable preference shares have no voting rights. Redeemable preference shares have the right on a winding up to receive, in priority to any other class of shares, the sum of £1 per share.

8.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Mark Harrison BA(Hons) FCA (Senior Statutory Auditor)

for and on behalf of Mark J Rees LLP Chartered Accountants

9.	RELATED PARTY DISCLOSURES

Transactions with related parties during the year comprise:

2022

2021

£

£

Royalties paid to parent undertaking

702

829

Purchases from group companies

4,020

3,549

4,722

4,378

Amounts due in respect of related parties at the year end were as follows:

2022

2021

£

£

Amounts owed to parent undertaking

(914,353

)

(910,333

)

Loan from parent undertaking

(1,487,692

)

(1,426,407

)

(2,402,045

)

(2,336,740

)

10.	ULTIMATE PARENT UNDERTAKING AND CONTROLLING PARTY

The parent undertaking of the company is Drilltec Acquisition Holding Corporation, incorporated in the United States of America. The registered office is 10875 Kempwood Drive, Suite 2, Houston, Texas.

The ultimate parent undertaking and controlling party is Drilltec Investors LLC incorporated in the United States of America.