1. Accounting policies

Basis of measurement and preparation of accounts

The accounts have been prepared under the historic cost convention and in accordance with the Financial Reporting Standard for Smaller Entities

Turnover policy

Turnover represents the net amount of invoices to customers less credit notes for goods returned,ecluding VAT

Tangible fixed assets depreciation policy

Depreciation is provided for on tangible fixed assets in use at rates calculated to write off the cost of each asset over its expected useful life as follows Fixtures,Fittings,Equipment and Machinery 15% Reducing Balance Motor Vehicles 25% Reducing balance There is no provision for depreciation on the properties held by the company as the director is of the opinion that the current market value is in excess of the book value of those assets

Valuation information and policy

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

Other accounting policies

Assets being purchased under finance lease and hire purchase contracts are capitalised and depreciated over their expected useful lives. The corresponding lease or hire purchase obligation is treated in the balance sheet as a liability. The interest element of rental obligations is charged to profit and loss account over the period of the lease at a constant proportion of the outstanding balance of capital repayments. Provision is made under the liability method for deferred taxation arising from timing differences between profits as computed for taxation purposes and profits as stated in the accounts to the extent that it is probable a liability will arise Foreign Currency transactions completed and settled during the financial year are converted to Pounds sterling at the average rate applicable in the month of transaction. Balance sheet items are converted from the foreign currency at the closing rate applicable at the balance sheet date. Exchange rate gains or losses are reflected in The Profit and Loss account in administration expenses

7. Tangible assets

9. Debtors

There are no secured debtors

10. Creditors: amounts falling due within one year

Hire purchase liabilities are secured on the relevant assets.

11. Creditors: amounts falling due after more than one year

The loans are secured by mortgage deed dated 10th February 2006 created for securing all monies due or to become due from the company to Backless bank PLC and his was registered pursuant to chapter 1 Part XII of the companies act 1985 on the 14th February 2006

13. Called up share capital

Allotted, called up and paid