ITT Industries Holdings Limited - Limited company accounts 23.2

REGISTERED NUMBER: 07618421 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTOR AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2022

FOR

ITT INDUSTRIES HOLDINGS LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Director

3

to

4

Report of the Independent Auditors

5

to

7

Statement of Comprehensive Income

8

Statement of Financial Position

9

Statement of Changes in Equity

10

Notes to the Financial Statements

11

to

17

DIRECTOR:

Mr R Patel

SECRETARY:

Mr R Patel

REGISTERED OFFICE:

Unit 4- Faraday Office Park

Rankine Road

Basingstoke

Hampshire

RG24 8QB

REGISTERED NUMBER:

07618421 (England and Wales)

AUDITORS:

Seymour Taylor Limited, Statutory Auditor

First Floor North

40 Oxford Road

High Wycombe

Buckinghamshire

HP11 2EE

The directors present their strategic report for the period ending 2nd July 2022

REVIEW OF BUSINESS

The principal activity of the company continues to be that of a holding company of the subsidiary company. The subsidiary undertaking, ITT Industries Limited, is engaged in the development, manufacture and sale of a range of products in the field of industrial technology. The directors do not envisage any changes in the nature of the business of ITT Industries Limited in the future.

The directors report a profit before tax of £15,034,000 (2021: loss of £6,636,000).

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks and uncertainties are limited to the risk of investment impairment, which is mitigated by a review of the subsidiary company investment for impairment on an annual basis.

KEY PERFORMANCE INDICATORS

The company does not trade. Therefore, the directors do not believe that there are any relevant key performance indicators.

ON BEHALF OF THE BOARD:

Mr R Patel - Director

20 December 2023

The director presents his report with the financial statements of the company for the year ended 30 June 2022.

PRINCIPAL ACTIVITY

The company's principal activity is to act as a holding company for a subsidiary undertaking which is involved in the development, manufacturing and sale of a range of products in the field of industrial technology.

DIVIDENDS

No dividends will be distributed for the year ended 30 June 2022.

DIRECTORS

Mr R Patel has held office during the whole of the period from 1 July 2021 to the date of this report.

Other changes in directors holding office are as follows:

Mr J Buller - resigned 6 July 2021

Mr D Gajre ceased to be a director after 30 June 2022 but prior to the date of this report.

QUALIFYING THIRD PARTY INDEMNITY PROVISIONS

The company has made qualifying third party indemnity provisions for the benefit of its directors during the period. These provisions remain in force and the reporting date.

DISCLOSURE IN THE STRATEGIC REPORT

The company has chosen in accordance with the Companies Act 2006 (section 414C(11)) to set out in the Company's Strategic Report information required under the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulation 2008 (Schedule 7), to be contained in the Directors' Report. It has done so in respect of principal risks and uncertainties.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Seymour Taylor Limited, will be re-appointed in accordance with section 487(2) of the Companies Act 2006.

ON BEHALF OF THE BOARD:

Mr R Patel - Director

20 December 2023

Opinion

We have audited the financial statements of ITT Industries Holdings Limited (the 'company') for the year ended 30 June 2022 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 30 June 2022 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.

Other information

The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Director.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of director's remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Identifying and assessing potential risks related to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

- the nature of the industry and sector, control environment and business performance;

- results of our enquiries of management about their own identification and assessment of the risks of irregularities;

- any matters we identified having obtained and reviewed the Company's documentation of their policies and procedures relating to:

- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of noncompliance;

- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;

- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;

- the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory frameworks that the Company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and local tax legislation.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the Company's ability to operate or to avoid a material penalty.

Audit response to risks identified

As a result of performing the above, our procedures to respond to risks identified included the following:

- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

- enquiring of management concerning actual and potential litigation and claims;

- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

- obtained an understanding of provisions and held discussions with management to understand the basis of recognition or non-recognition of tax provisions; and

- in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or noncompliance with laws and regulations throughout the audit.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Joanne Kingsnorth FCA (Senior Statutory Auditor)

for and on behalf of Seymour Taylor Limited, Statutory Auditor

First Floor North

40 Oxford Road

High Wycombe

Buckinghamshire

HP11 2EE

20 December 2023

TURNOVER

-

-

Administrative expenses

32

6,636

(32

)

(6,636

)

Other operating income

973

-

OPERATING PROFIT/(LOSS)

4

941

(6,636

)

Intercompany write off

5

14,093

-

PROFIT/(LOSS) BEFORE TAXATION

15,034

(6,636

)

Tax on profit/(loss)

6

-

15

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

15,034

(6,651

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

15,034

(6,651

)

FIXED ASSETS

Investments

7

11,500

11,500

CREDITORS

Amounts falling due within one year

8

22

15,056

NET CURRENT LIABILITIES

(22

)

(15,056

)

TOTAL ASSETS LESS CURRENT LIABILITIES

11,478

(3,556

)

CAPITAL AND RESERVES

Called up share capital

9

1

1

Share premium

10

66,999

66,999

Retained earnings

10

(55,522

)

(70,556

)

SHAREHOLDERS' FUNDS

11,478

(3,556

)

The financial statements were approved by the director and authorised for issue on 20 December 2023 and were signed by:

Mr R Patel - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£'000

£'000

£'000

£'000

Balance at 1 January 2020

1

(63,905

)

66,999

3,095

Changes in equity

Total comprehensive income

-

(6,651

)

-

(6,651

)

Balance at 30 June 2021

1

(70,556

)

66,999

(3,556

)

Changes in equity

Total comprehensive income

-

15,034

-

15,034

Balance at 30 June 2022

1

(55,522

)

66,999

11,478

1.	STATUTORY INFORMATION

ITT Industries Holdings Limited is a private company limited by shares and incorporated in England and Wales. The address of the company's registered office is Unit 4 Faraday Office Park, Rankin Road, Basingstoke, Hampshire, England, RG24 8QB. The registered number is 00814151.

The principal activity of the company is to act as an holding company for a subsidiary undertaking which is involved in the development, manufacture and sale of a range of products in the field of industrial technology.

The presentation currency of these financial statements is Sterling (£), being the currency of the primary economic market in which the entity operates (its functional currency). All amounts in these financial statements have been rounded to the nearest thousand unless stated otherwise.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

The period covered by the financial statements is 12 months which is not comparable with the prior period of 18 months. The reason for the change in length of period previously was to assist with the activities of the company.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with applicable United Kingdom accounting standards, including Financial Reporting Standard 102 - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' ('FRS 102') and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The financial statements have been prepared on the going concern basis. Although at the statement of financial position date the company had net current liabilities of £22,000 (2021: £15,056,000), there was an overall net assets position of £11,478,000 (2021: total net liabilities of £3,556,000). The directors believe it is therefore appropriate for the financial statements to be prepared on this basis. The company is able to rely on the support of its immediate parent company, ITT Industries Luxembourg S.A.R.L, who have provided written confirmation of their willingness to provide continued financial support to the company for the foreseeable future, defined as at least 12 months from the date of signing the financial statements for the year ended 30 June 2022.

Financial Reporting Standard 102 - reduced disclosure exemptions

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

- Section 7 'Statement of Cash Flows' - Presentation of a Statement of Cash Flows and related notes and disclosures;

- Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instrument Issues' - Carrying amounts, interest income / expense and net gain / losses for each category of financial instrument; basis of determining fair values; details of collateral; loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

- Section 33 'Related Party Disclosures' - Compensation for key management personnel.

Critical accounting judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts of revenue, expenses, assets and liabilities, and the disclosure of contingent liabilities at the date of the financial statements. If in the future such estimates and assumptions, which are based on the management's best judgment at the date of the financial statements, deviate from the actual circumstances, the original estimates and assumptions will be modified as appropriate in the year in which the circumstances change.

The areas for which significant estimation has been applied are considered to be the impairment of investments in subsidiaries and provisions.

Intangible assets

Intangible assets acquired separately from a business are capitalised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets acquired on business combinations are capitalised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the assets will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of the assets less their residual values over the useful lives on the following bases:

Software

Straight line over 3 - 20 years

Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and impairment losses.

Depreciation is recognise so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings

Straight line over 3 - 20 years

Leasehold improvements

Straight line over term of the lease

Plant and equipment

Straight line over 3 - 20 years

Fixtures and fittings

Straight line over 3 - 20 years

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Investments in subsidiaries

Investments in subsidiary undertakings are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

Financial instruments

The company has applied the provisions of Section 11 "Basic Financial Instruments" and Section 12 "Other Financial Instrument Issues" of FRS 102 to its financial statements.

Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the statement of financial position. Finance costs and gains or losses relating to financial liabilities are included in the income statement. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability.

Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity.

Taxation

Tax on the profit or loss 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 directly in equity or other comprehensive income, in which case it is recognised directly in equity or other comprehensive income.

Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the statement of financial position date, and any adjustment to tax payable in respect of previous years.

Deferred tax is provided on timing differences which arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial statements. Differences between accumulated depreciation and tax allowances for the cost of a fixed asset, if and when all conditions for retaining the tax allowances have been met, are not provided for. Deferred tax is not recognised on permanent differences arising because certain types of income or expense are non-taxable or are disallowable for tax or because certain tax charges or allowances are greater or smaller than the corresponding income or expense.

Deferred tax is measured at the tax rate that is expected to apply to the reversal of the related difference, using tax rates enacted or substantively enacted at the statement of financial position date. Deferred tax balances are not discounted.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that is it probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies

Transactions denominated in foreign currencies are translated into Sterling at the rate of exchange ruling at the date of the transaction. Monetary assets and liabilities at the period end denominated in a foreign currency are translated into Sterling at the rate of exchange ruling at the statement of financial position] date. Exchange differences are taken into account when arriving at the operating profit.

Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

Leases

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging the operating lease are added the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

Preparation of consolidated financial statements

The financial statements contain information about ITT Industries Holdings as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 401 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertakings are included by full consolidation in the consolidated financial statements of its parent, ITT Inc. a company registered in the United States of America..

3.	EMPLOYEES AND DIRECTORS

There were no employees or staff costs in the current or proceeding periods.

Period

1.1.20

Year Ended

to

30.6.22

30.6.21

£

£

Directors' remuneration

-

-

4.	OPERATING PROFIT/(LOSS)

The operating profit (2021 - operating loss) is stated after charging:

Period

1.1.20

Year Ended

to

30.6.22

30.6.21

£'000

£'000

Auditors' remuneration

6

5

Impairment of investment in subsidiary

-

5,918

5.	EXCEPTIONAL ITEMS

Period

1.1.20

Year Ended

to

30.6.22

30.6.21

£'000

£'000

Intercompany write off

14,093

-

The exceptional items relates to the write off of the intercompany balance with the company's subsidiary.

6.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

Period

1.1.20

Year Ended

to

30.6.22

30.6.21

£'000

£'000

Deferred tax

-

15

Tax on profit/(loss)

-

15

UK corporation tax has been charged at 19% (2021 - 19%).

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

Period

1.1.20

Year Ended

to

30.6.22

30.6.21

£'000

£'000

Profit/(loss) before tax

15,034

(6,636

)

Profit/(loss) multiplied by the standard rate of corporation tax in the UK of 19% (2021 - 19%)

2,856

(1,261

)

Effects of:

Income not taxable for tax purposes

(2,678

)

-

Capital allowances in excess of depreciation

(2

)

-

Utilisation of tax losses

(177

)

-

Change in unrecognised deferred tax assets

-

1,276

tax rates

Total tax charge

(1

)

15

The standard rate of corporation tax prevailing during the period was 19%.

On 11 March 2020 it was announced (and substantively enacted on 17 March 2020) that the UK corporation tax rate would remain at 19% and not reduce to 17% (the previously enacted rate) from 1 April 2020. In the Budget of 3 March 2021 it was announced (and substantively enacted on 24 May 2021) that the corporation tax main rate would be increasing to 25% for periods commencing 1 April 2023, with the small profits rate remaining at 19%. Deferred tax balances have been recognised at the rate at which it is expected that the future benefit will be received.

A deferred tax asset has not been recognised in respect of tax trading losses. The amount that has not been recognised at the statement of financial position date, when calculated at the future rate of corporation tax in the UK of 25% (2021: 25%), amounts to £634,583 (2021: £624,262). The deferred tax asset would only be recoverable to the extent that future taxable profits are generated enabling the taxable trading losses to be relieved.

A deferred tax asset has not been recognised in respect of accelerated capital allowances. The amount that has not been recognised at the statement of financial position date, when calculated at the future rate of corporation tax in the UK of 25% (2021: 25%), amounts to £10,571 (2021: £12,892).

The net deferred tax asset at the year ended 30 June 2022 amounts to £645,154 (2021: £637,154).

7.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£'000

COST

At 1 July 2021

and 30 June 2022

17,418

PROVISIONS

At 1 July 2021

and 30 June 2022

5,918

NET BOOK VALUE

At 30 June 2022

11,500

At 30 June 2021

11,500

The company's investments at the Statement of Financial Position date in the share capital of companies include the following:

ITT Industries Limited

Registered office: Unit 4, Faraday Office Park, Rankine Road, Basingstoke, Hampshire, England, RG24 8QB

Nature of business: Manufacturing

%

Class of shares:

holding

Ordinary

100.00

2/7/22

2021

£'000

£'000

Aggregate capital and reserves

13,404

26,490

Loss for the period

(13,086

)

(5,018

)

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£'000

£'000

Amounts owed to group undertakings

1

15,046

Accruals and deferred income

21

10

22

15,056

9.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2022

2021

value:

£'000

£'000

1,001

Ordinary

£1

1

1

10.

RESERVES

Share capital - Share capital represents the nominal value of shares that have been issued.

Share premium - The share premium account represents the premium arising on the issue of shares.

11.	ULTIMATE PARENT COMPANY

The directors consider ITT Industries Luxembourg S.A.R.L. to be the immediate parent company and ITT Inc. to be the ultimate parent company. ITT Inc. is a public company listed on the United States Securities and Exchange Commission, Washington DC 20549.

The largest and smallest group in which this company's information is consolidated is that of the ultimate holding company, ITT Inc, which prepares its consolidated financial statements to 31 December 2021. The registered office for this company, from where copies of the consolidated financial statements of ITT Inc. can be obtained from is 1133 Westchester Avenue, White Plains, NY 10604, United States of America.