Star Power Hire Limited - Accounts to registrar (filleted) - small 23.2.5

REGISTERED NUMBER: 05008468 (England and Wales)

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

FOR

STAR POWER HIRE LIMITED

PREVIOUSLY KNOWN AS

POWERTEK SERVICES LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

P Munjal

S Seth

REGISTERED OFFICE:

Unit 2 Charnwood Edge Business Park

Syston Road

Cossington

Leicestershire

LE7 4UZ

REGISTERED NUMBER:

05008468 (England and Wales)

AUDITORS:

Magma Audit LLP

Magma House

16 Davy Court

Castle Mound Way

Rugby

CV23 0UZ

FIXED ASSETS

Tangible assets

4

2,791,348

1,215,678

CURRENT ASSETS

Stocks

5

23,913

27,409

Debtors

6

859,946

497,163

Cash at bank

155,059

252,238

1,038,918

776,810

CREDITORS

Amounts falling due within one year

7

(2,480,396

)

(647,594

)

NET CURRENT (LIABILITIES)/ASSETS

(1,441,478

)

129,216

TOTAL ASSETS LESS CURRENT LIABILITIES

1,349,870

1,344,894

CREDITORS

Amounts falling due after more than one year

8

(505,457

)

(467,147

)

PROVISIONS FOR LIABILITIES

11

(148,593

)

(166,055

)

NET ASSETS

695,820

711,692

CAPITAL AND RESERVES

Called up share capital

12

103

103

Retained earnings

13

695,717

711,589

SHAREHOLDERS' FUNDS

695,820

711,692

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 Statement of Comprehensive Income has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 13 September 2023 and were signed on its behalf by:

P Munjal - Director

1.	STATUTORY INFORMATION

Star Power Hire Limited is a limited company, registered in England and Wales. Its registered office address is Unit 2 Charnwood Edge Business Park, Syston Road, Cossington, Leicestershire, LE7 4UZ and the registered number is 05008468.

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.

Going concern

The company had net current liabilities of £1,441,478 (2022: net current assets £129,216) and net assets of £695,820 (2022: £711,692) as at 31 March 2023. For the year ended 31 March 2023 the company made a profit before tax of £16,646 (2022: £199,137).

The directors have prepared forecasts and projections along with an assessment of existing cash resources, profit and cash generation. On this basis the directors deem the company will be able to meet it's liabilities as they fall due for at least 12 months from the signing of these financial statements and have therefore prepared the financial statements on a going concern basis.

Turnover

Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. Turnover is recognised as described below for the different sales channels:

(i) Hire and associated income

Hire income is recognised at the earlier of when the asset is collected or returned to the depot (off-hire invoicing), or at the month end (continuation invoicing), if the asset remains on hire at this date.

Transport income, damage income and recoveries income are directly tied to the level of hire income and recognised as above.

(ii) Equipment sales

Equipment sales revenue relates to the re-sale of new equipment. Stock is held and the sale is recognised when the following criteria are met:

(a) the significant risks and rewards of ownership have been transferred to the buyer;

(b) the company retains no continuing involvement or control over the goods;

(c) the amount of revenue can be measured reliably;

(d) it is probable that future economic benefits will flow to the entity

(iii) Engineering services

Engineering services income is earned through the provision of electrical engineering services and is recognised at the point the service takes place.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Tangible assets are stated at historical cost less depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives on a straight line basis.

Depreciation is provided on the following basis:

Leasehold improvements

- 5 years straight line

Plant and Machinery

- 5 years straight line/25% reducing balance

Fixtures and fittings

- 5 years straight line

Motor vehicles

- 5 years straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis.

Financial instruments

The company has chosen to adopt the Sections 11 and 12 of FRS 102 in respect of financial instruments.

(i) Financial assets

Basic financial assets, including trade and other debtors, cash and bank balances, investments and loans to fellow group companies are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Such assets are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price.

Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publically traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

(ii) Financial liabilities

Basic financial liabilities, including trade and other creditors, bank loans and loans from fellow group companies are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if payment is due within one year or less.

Financial liabilities are derecognised when the liability is extinguished, is when the contractual obligation is discharged, cancelled or expires.

(iii) Offsetting

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Taxation

The tax expense for the year comprises current and deferred tax.

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance Sheet date, except that:

- The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

- Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Both current and deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Operating and finance lease commitments

At inception the company assesses agreements that transfer the right to use assets. The assessment considers whether the arrangement is, or contains, a lease based on the substance of the arrangement.

(i) Finance leased assets

Leases of assets that transfer substantially all the risks and rewards incidental to ownership are classified as finance leases.

Finance leases are capitalised at commencement of the lease as assets at the fair value of the leased asset or, if lower, the present value of the minimum lease payments calculated using the interest rate implicit in the lease. Where the implicit rate cannot be determined the company’s incremental borrowing rate is used. Incremental direct costs, incurred in negotiating and arranging the lease, are included in the cost of the asset.

Assets are depreciated over the shorter of the lease term and the estimated useful life of the asset. Assets are assessed for impairment at each reporting date.

The capital element of lease obligations is recorded as a liability on inception of the arrangement. Lease payments are apportioned between capital repayment and finance charge, using the effective interest rate method, to produce a constant rate of charge on the balance of the capital repayments outstanding.

(ii) Operating leased assets

Leases that do not transfer all the risks and rewards of ownership are classified as operating leases. Payments under operating leases are charged to the profit and loss account on a straight-line basis over the period of the lease.

(iii) Lease incentives

Incentives received to enter into a finance lease reduce the fair value of the asset and are included in the calculation of present value of minimum lease payments.

Incentives received to enter into an operating lease are credited to the profit and loss account, to reduce the lease expense, on a straight-line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 20 (2022 - 18 ) .

4.	TANGIBLE FIXED ASSETS

Fixtures

Leasehold

Plant and

and

Motor

improvements

machinery

fittings

vehicles

Totals

£

£

£

£

£

COST

At 1 April 2022

-

2,942,404

42,647

378,638

3,363,689

Additions

2,458

1,898,254

15,915

244,993

2,161,620

Disposals

-

(343,619

)

-

(34,388

)

(378,007

)

At 31 March 2023

2,458

4,497,039

58,562

589,243

5,147,302

DEPRECIATION

At 1 April 2022

-

1,943,188

23,558

181,265

2,148,011

Charge for year

123

469,111

7,115

90,587

566,936

Eliminated on disposal

-

(326,105

)

-

(32,888

)

(358,993

)

At 31 March 2023

123

2,086,194

30,673

238,964

2,355,954

NET BOOK VALUE

At 31 March 2023

2,335

2,410,845

27,889

350,279

2,791,348

At 31 March 2022

-

999,216

19,089

197,373

1,215,678

The net carrying amount of assets held under finance leases included in plant, machinery, fixtures and fittings and motor vehicles is £2,085,840 (2022: £597,695).

5.

STOCKS

2023

2022

£

£

Stocks

23,913

27,409

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023

2022

£

£

Trade debtors

761,067

473,703

Amounts owed by group undertakings

1,696

4,022

Other debtors

13

340

VAT

65,511

-

Prepayments

31,659

19,098

859,946

497,163

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023

2022

£

£

Hire purchase contracts (see note 9)

1,516,724

273,234

Trade creditors

756,827

182,195

Amounts owed to group undertakings

101,339

-

Tax

-

71,085

Social security and other taxes

18,190

20,046

VAT

-

63,115

Other creditors

87,316

37,919

2,480,396

647,594

Included within creditors are pension contributions payable of £2,847 (2022: £1,419).

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2023

2022

£

£

Hire purchase contracts (see note 9)

505,457

467,147

9.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts

2023

2022

£

£

Net obligations repayable:

Within one year

1,516,724

273,234

Between one and five years

505,457

467,147

2,022,181

740,381

Non-cancellable

operating leases

2023

2022

£

£

Within one year

35,238

5,962

Between one and five years

47,217

17,389

82,455

23,351

10.	SECURED DEBTS

The following secured debts are included within creditors:

2023

2022

£

£

Hire purchase contracts

2,022,181

740,381

The finance leases are secured by the lessors' title to the leased assets and the directors consider that the carrying amount of the obligations under the finance leases approximate to their fair value. Interest rates underlying all obligations are fixed at respective contract rates.

11.	PROVISIONS FOR LIABILITIES

2023

2022

£

£

Deferred tax

Accelerated capital allowances

217,740

166,195

Tax losses carried forward

(66,287

)

-

Other timing differences

(2,860

)

(140

)

148,593

166,055

Deferred

tax

£

Balance at 1 April 2022

166,055

Credit to Statement of Comprehensive Income during year

(17,462

)

Balance at 31 March 2023

148,593

12.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2023

2022

value:

£

£

103

Ordinary

1

103

103

13.

RESERVES

Retained

earnings

£

At 1 April 2022

711,589

Profit for the year

34,108

Dividends

(49,980

)

At 31 March 2023

695,717

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

The Report of the Auditors was unqualified.

Victoria Craig (Senior Statutory Auditor)

for and on behalf of Magma Audit LLP

15.	RELATED PARTY DISCLOSURES

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.

16.	ULTIMATE CONTROLLING PARTY

R Seth is considered to be the ultimate controlling party by virtue of his majority shareholding in the ultimate parent company, Sudhir Power Limited.

17.	ULTIMATE AND IMMEDIATE PARENT COMPANY

Sudhir Power (UK) Limited, a company incorporated in the United Kingdom is the immediate parent company.

The entire share capital of Sudhir Power (UK) Limited is owned by Sudhir Power Limited, a company incorporated in India, and is the the ultimate parent company.

The smallest group in which the results of the company are consolidated for the current year ended is that headed by Sudhir Power (UK) Limited. The consolidated accounts of this company are available to the public and may be obtained from Unit 2 Charnwood Edge Business Park, Syston Road, Cossington, United Kingdom, LE7 4UZ.