General Information
Tomo Motor Parts Limited is a private company, limited by shares, registered in England and Wales, registration number 05568584, registration address Unit 1, Tomo Industrial Estate, Packet Boat Lane, Uxbridge, UB8 2JP.
The presentation currency is £ sterling.
| 1. |
Accounting policies
Significant accounting policies
Statement of compliance
These financial statements have been prepared in compliance with FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland and the Companies Act 2006.
Basis of preparation
The financial statements have been prepared on the going concern basis and under the historical cost convention as modified by the revaluation of land and buildings and certain financial instruments measured at fair value in accordance with the accounting policies.
The financial statements are prepared in sterling which is the functional currency of the company.
Related party exemption
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.
Turnover
Turnover is measured at the fair value of the consideration received or receivable net of VAT and trade discounts. Turnover includes revenue earned from the sale of goods only.
Sale of goods revenue is recognised at the point of sale, which is usually where the customer has taken delivery of the goods, the risks and rewards are transferred to the customer and there is a valid sales contract. Amounts disclosed as revenue are net of sales returns and trade discounts.
Supplier rebates
Supplier rebates are offset against the appropriate purchase cost recognised at the point of purchase. Where there are timing differences the financial benefit is accrued.
Government grants
The company recognises government support grants as other income, accrued for the period of eligibility. Government grants relate to the Job Retention Scheme which is designed to safeguard employment due to pressures imposed by the Covid-19 pandemic.
The company has also received a loan via the Coronavirus Business Interruption Loan Scheme which is government backed financial borrowing in order to aid business recovery. The loan is 80% backed by the government and with the government funding the interest for the first 12 months. The company includes the nominal interest charge in finance costs and relief received from the government in other income.
Operating lease rentals
Rentals payable under operating leases are charged against income on a straight line basis over the lease term.
Finance lease and hire purchase charges
The finance element of the rental payment is charged to the income statement on a straight line basis.
Foreign currencies
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rate of exchange ruling at the statement of financial position date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All foreign exchange differences are included to the income statement.
Taxation
Taxation represents the sum of tax currently payable and deferred tax. Tax is recognised in the statement of income, except to the extent that it relates to items recognised in other comprehensive income or directly in capital and reserves.
The company’s liability for current tax is calculated using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Current and deferred tax assets and liabilities are not discounted
Deferred taxation
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the reporting date.
Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the reporting date 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.
Current and deferred tax assets and liabilities are not discounted.
Intangible assets
Intangible assets (including purchased goodwill and patents) are amortised at rates calculated to write off the assets on a straight line basis over their estimated useful economic lives. Impairment of intangible assets is only reviewed where circumstances indicate that the carrying value of an asset may not be fully recoverable.
Tangible fixed assets
Tangible fixed assets, other than freehold land, are stated at cost or valuation less depreciation and any provision for impairment. Depreciation is provided at rates calculated to write off the cost or valuation of fixed assets, less their estimated residual value, over their expected useful lives on the following basis:
| Land and Buildings |
10% Reducing Balance |
| Motor Vehicles |
33% Reducing Balance
|
| Fixtures and Fittings |
25% Reducing Balance
|
Assets on finance lease and hire purchase
Assets held under finance lease or hire purchase contracts i.e. those contracts where substantially all the risks and rewards of ownership have passed to the company, are included in the appropriate category of tangible fixed assets and depreciated over the shorter of the lease term and their estimated expected useful lives.
Future obligations under such contracts are included in creditors net of the finance charge allocated to future periods.
Stocks
Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow moving items. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.
Factored debts
The company includes factored debts within trade debtors since most of the risks and rewards of ownership of the factored debts have not passed to the factors. A corresponding liability is included in liabilities in respect of the proceeds received from the factor.
Provisions
Provisions are recognised when the company has a present obligation as a result of a past event which it is more probable than not will result in an outflow of economic benefits that can be reasonably estimated.
Provisions are measured using the best estimate of amounts required to settle the obligation at the end of the reporting period.
- Provisions - credit notes
The provision for credit notes is in respect of potential credits granted to customers for previous period sales. This is estimated based on historical credit notes issued.
- Provisions - annual leave
The company recognises a provision for annual leave accrued by employees as a result of services rendered in the current period, and which employees are entitled to carry forward and use within the next 12 months. The provision is measured at the salary cost payable for the period of absence.
Significant Judgements and Estimates
Preparation of the financial statements requires management to make significant judgements and estimates. The following are significant management judgements in applying the accounting policies of the group that have the most significant effect on the financial statements.
Stock represents a large amount on the company's balance sheet, the directors ensure that the stock is valued at the lower of cost and net realisable value. Management ensure this is reviewed and duly considered at regular intervals and have installed robust software and systems to maintain the correct valuation.
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with 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.
|
| 2. |
Average number of employees
Average number of employees during the year was 24 (2022 : 29).
|
| 3. |
Tangible fixed assets
| Cost or valuation |
Plant and Machinery |
|
Motor Vehicles |
|
Fixtures and Fittings |
|
Land and Buildings |
|
Total |
| |
£ |
|
£ |
|
£ |
|
£ |
|
£ |
| At 01 April 2022 |
23,249 |
|
146,198 |
|
458,018 |
|
274,086 |
|
901,551 |
| Additions |
- |
|
49,020 |
|
22,043 |
|
22,958 |
|
94,021 |
| Disposals |
- |
|
(69,101) |
|
- |
|
- |
|
(69,101) |
| At 31 March 2023 |
23,249 |
|
126,117 |
|
480,061 |
|
297,044 |
|
926,471 |
| Depreciation |
| At 01 April 2022 |
16,440 |
|
118,823 |
|
267,043 |
|
174,658 |
|
576,964 |
| Charge for year |
1,702 |
|
23,147 |
|
53,254 |
|
59,409 |
|
137,512 |
| On disposals |
- |
|
(62,850) |
|
- |
|
- |
|
(62,850) |
| At 31 March 2023 |
18,142 |
|
79,120 |
|
320,297 |
|
234,067 |
|
651,626 |
| Net book values |
| Closing balance as at 31 March 2023 |
5,107 |
|
46,997 |
|
159,764 |
|
62,977 |
|
274,845 |
| Opening balance as at 01 April 2022 |
6,809 |
|
27,375 |
|
190,975 |
|
99,428 |
|
324,587 |
The net book value of Motor Vehicles, Land and Buildings includes £ 95,820 (2022 £93,132) in respect of assets leased under finance leases or hire purchase contracts.
|
| 4. |
Share Capital
Allotted, called up and fully paid
|
2023
£ |
|
2022
£ |
|
1,000
Ordinary shares of £1.00 each |
1,000 |
|
1,000 |
|
1,000 |
|
1,000 |
|
3
|
