Tercet Precision Limited - Accounts to registrar (filleted) - small 23.2.5

REGISTERED NUMBER: SC186797

TERCET PRECISION LIMITED

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

Page

Balance Sheet

1

Notes to the Financial Statements

3

FIXED ASSETS

Tangible assets

4

1,410,452

1,498,070

CURRENT ASSETS

Stocks

205,974

216,469

Debtors

5

674,989

781,004

Cash at bank

22,350

99,920

903,313

1,097,393

CREDITORS

Amounts falling due within one year

6

275,777

417,209

NET CURRENT ASSETS

627,536

680,184

TOTAL ASSETS LESS CURRENT LIABILITIES

2,037,988

2,178,254

CREDITORS

Amounts falling due after more than one year

7

(109,848

)

(164,002

)

PROVISIONS FOR LIABILITIES

(261,191

)

(301,694

)

NET ASSETS

1,666,949

1,712,558

CAPITAL AND RESERVES

Called up share capital

164,746

164,746

Share premium

554,766

554,766

Retained earnings

947,437

993,046

SHAREHOLDERS' FUNDS

1,666,949

1,712,558

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2023.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2023 in accordance with Section 476 of the Companies Act 2006.

The director acknowledges his 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.

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 Profit and Loss Account has not been delivered.

The financial statements were approved by the director and authorised for issue on 19 October 2023 and were signed by:

A H Burns - Director

1.	STATUTORY INFORMATION

Tercet Precision Limited is a private company, limited by shares, registered in Scotland. The company's registered office is Millarston Industrial Estate, Fulbar Road, Paisley, Renfrewshire, PA1 2XR.

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with the provisions of Section 1A "Small Entities" of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. There were no material departures from this standard. The financial statements have been prepared under the historical cost convention.

Going Concern

The financial statements have been prepared on a going concern basis. After due consideration, the director considers it appropriate to prepare the financial statements on a going concern basis.

Turnover

Turnover represents the net invoice value of goods sold and services rendered excluding value added tax. The company's policy is to recognise a sale when substantially all the risks and rewards in connection with the goods and services have been passed to the buyer.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life:

Plant & Machinery - depreciated on a straight line basis over 5 to 15 years.

Fixtures & Fittings and Motor Vehicles - depreciated on the reducing balance basis at percentages from 18.5% to 25% per annum.

Tangible fixed assets are included at cost less accumulated depreciation and accumulated impairment losses.

Impairment of non-financial assets

At each reporting date non-financial assets not carried at fair value, like plant and equipment, are reviewed to determine whether there is an indication that an asset may be impaired. If there is an indication of possible impairment, the recoverable amount which is the higher of value in use and the fair value less cost to sell, is estimated and compared with the carrying amount. If the recoverable amount is lower, the carrying amount of the asset is reduced to its recoverable amount and an impairment loss is recognised immediately in profit and loss.

Government grants

Government grants of a capital nature are taken to a separate deferred income account and released to the profit and loss account in accordance with the company's depreciation policy over the useful economic life of the asset concerned. Government grants relating to revenue are recognised in income on a systematic basis over the periods in which the entity recognises the related costs for which the grant is intended to compensate. Grants that become receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs shall be recognised in income in the period in which it becomes receivable.

Stocks

Stock has been valued at the lower of cost and estimated selling price less costs to complete. In respect of work in progress and finished goods, cost includes a relevant proportion of overhead according to the stage of completion.

Financial instruments

The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable and loans from banks and other third parties.

Debt instruments like loans and other accounts receivable and payable are initially measured at present value of the future payments and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year are measured, initially and subsequently, at the undiscounted amount of cash and other consideration expected to be paid or received.

Financial assets measured at cost and amortised cost are assessed at the end of each reporting period for evidence of impairment and if found, an impairment loss is recognised in the profit and loss account.

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

Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. Bank overdrafts, when applicable, are shown within borrowings in current liabilities.

Taxation

Taxation represents the sum of tax currently payable and deferred tax. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

The charge for taxation takes into account taxation deferred as a result of timing differences between the treatment of certain items for taxation and accounting purposes. In general, deferred taxation is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. However, deferred tax assets are recognised only to the extent that the director considers that it is more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted. Deferred taxation is measured on a non-discounted basis at the tax rates that are expected to apply in the periods in which the timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date.

With the exception of changes arising on the initial recognition of a business combination, the tax expense is presented either in profit or loss, other comprehensive income or statement of changes in equity depending on the transaction that resulted in the tax expense.

Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors.

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

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs

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.

Provisions

Provisions are recognised when the company has a legal or constructive obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle the obligation and the amount of the obligation can be reliably estimated. Provisions are recognised at the best estimate of the amount required to settle the obligation at the reporting date.

Judgements

The company considers on an annual basis the judgements that are made by management when applying its significant accounting policies that would have the most significant effect on amounts that are recognised in the financial statements. The director considers there are no such significant judgements.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 16 (2022 - 20 ) .

4.	TANGIBLE FIXED ASSETS

Plant and

machinery

etc

£

COST

At 1 April 2022

and 31 March 2023

4,577,955

DEPRECIATION

At 1 April 2022

3,079,885

Charge for year

87,618

At 31 March 2023

3,167,503

NET BOOK VALUE

At 31 March 2023

1,410,452

At 31 March 2022

1,498,070

Included above is £476,942 (2022: £510,393) carrying value of assets, which the company has pledged as security for hire purchase agreements.

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023

2022

£

£

Trade debtors

88,958

141,159

Amounts owed by group undertakings

554,900

593,492

Other debtors

31,131

46,353

674,989

781,004

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023

2022

£

£

Bank loans and overdrafts

45,454

45,455

Hire purchase contracts

8,700

21,539

Trade creditors

200,438

272,649

Taxation and social security

7,259

16,293

Other creditors

13,926

61,273

275,777

417,209

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2023

2022

£

£

Bank loans

109,848

155,302

Hire purchase contracts

-

8,700

109,848

164,002

8.	SECURED DEBTS

The following secured debts are included within creditors:

2023

2022

£

£

Bank loans

155,302

200,757

Hire purchase contracts

8,700

30,239

164,002

230,996

The invoice discounting balance, included in bank loans and overdrafts, is secured over the trade debtors of the company. Hire purchase contracts are secured over the assets to which they relate.

9.	RELATED PARTY DISCLOSURES

The company rents the property from the Tercet Precision Directors Pension Scheme at an annual rent of £68,000. The lease terms are open ended.

10.	ULTIMATE CONTROLLING PARTY