Abbreviated Company Accounts - ETI ENGINEERING TEXTILE INDUSTRY LTD

1Accounting Policies

Basis of measurement and preparation of accounts
The full financial statements, from which these abbreviated accounts have been extracted, have been prepared under the historical cost convention and in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008).

Other accounting policies
Compliance with and departure from accounting standards

The financial statements are prepared in accordance with applicable United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), which have been applied consistently (except as otherwise stated).

The company has not disclosed the ultimate controlling party which is a requirement of the Financial Reporting Standard for Smaller Entities (effective April 2008). This is a departure from the accounting standard. The directors are of the opinion that the non disclosure of this information does not affect the truth and fairness of the financial statements.

Going concern

The directors have prepared the financial statements on the going concern basis. This is considered appropriate as the company's shareholders and creditors will continue to provide financial support to the company for the foreseeable future. Should the company be unable to continue with its principal activity of holding and managing investments, adjustments would have to be made to reduce the value of assets to their recoverable amounts, to provide for any further liabilities which might arise.

Changes to accounting policies

These accounts have been prepared in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008), which is a change of accounting policy. There have been no changes to the current and prior year figures as a result of this change.

Investments

Investments held as fixed assets are shown at cost less provision for impairment.

Deferred taxation

Full provision is made for deferred tax assets and liabilities arising from all timing differences between the recognition of gains and losses in the financial statements and recognition in the tax computation

A net deferred tax asset is recognised only if it can be regarded as 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 tax assets and liabilities are calculated at the tax rates expected to be effective at the time the timing differences are expected to reverse.

Deferred tax assets and liabilities are not discounted.

Foreign currencies

Monetary assets and liabilities denominated in foreign currencies are translated into euros at rates of exchange ruling at the balance sheet date.

Transactions in foreign currencies are translated into euros at the rate ruling on the date of the transaction.

Exchange gains and losses are recognised in the Profit and loss account.

CREDITORS:
Amounts falling due within one year

Included in other creditors is a shareholder loan of €95,394 (2012: €95,399). The loan is interest free and repayments will only commence if the company has the necessary cash flow.

SHARE CAPITAL

Allotted, called up and fully paid
3,000 Ordinary shares of £1 each - 2013: €4,435 (2012: €4,435)

2Fixed assets Investments
Cost or valuation
At 1 January 2013 and 31 December 2013: €45,000

Net book value
At 31 December 2013: €45,000
At 31 December 2012: €45,000

Subsidiary undertakings
The following were subsidiary undertakings of the company:

Name: Universalfor Micro Industriali SRL
Class of shares: Ordinary
Holding: 45%

Aggregate of share capital and reserves as at 31 December 2012: €2,670,202
Profit/(loss) as at 31 December 2012: (€358,647)