Lochinch Limited - Period Ending 2016-03-31

Registration number: SC443078

Lochinch Limited

Unaudited Abbreviated Accounts

31 March 2016
 

Lochinch Limited
Contents

Accountants' Report 1

Abbreviated Balance Sheet 2

Notes to the Abbreviated Accounts 4

The following reproduces the text of the accountants' report in respect of the company's annual financial statements, from which the abbreviated accounts (set out on pages 2 to 6) have been prepared.

Chartered Accountants' Report to the Board of Directors on the Preparation of the Unaudited Financial Statements of
Lochinch Limited
for the Year Ended 31 March 2016

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Lochinch Limited for the year ended 31 March 2016 set out on pages 4 to 13 from the company's accounting records and from information and explanations you have given us.

As a member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at icaew.com/membershandbook.

This report is made solely to the Board of Directors of Lochinch Limited, as a body, in accordance with the terms of our engagement letter dated 1 May 2013. Our work has been undertaken solely to prepare for your approval the financial statements of Lochinch Limited and state those matters that we have agreed to state to them, as a body, in this report in accordance with AAF 2/10 as detailed at icaew.com/compilation. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Lochinch Limited and its Board of Directors as a body for our work or for this report.

It is your duty to ensure that Lochinch Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Lochinch Limited. You consider that Lochinch Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the financial statements of Lochinch Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

Dodd & Co Limited
Chartered Accountants
Clint Mill
Cornmarket
PENRITH
CA11 7HW

1 December 2016

Page 1

Lochinch Limited
(Registration number: SC443078)
Abbreviated Balance Sheet at 31 March 2016

		Note			2016 £			2015 £
Fixed assets
Intangible fixed assets		2			204,231			216,245
Tangible fixed assets		2			162,428			174,142
					366,659			390,387
Current assets
Stocks					3,500			2,500
Debtors					40,828			21,041
Cash at bank and in hand					9,157			5,188
					53,485			28,729
Creditors: Amounts falling due within one year		3			(87,879)			(84,536)
Net current liabilities					(34,394)			(55,807)
Total assets less current liabilities					332,265			334,580
Creditors: Amounts falling due after more than one year		3			(257,620)			(289,991)
Net assets					74,645			44,589
Capital and reserves
Called up share capital		4			40,000			40,000
Profit and loss account					34,645			4,589
Shareholders' funds					74,645			44,589

The notes on pages 4 to 6 form an integral part of these financial statements.
Page 2

Lochinch Limited
(Registration number: SC443078)
Abbreviated Balance Sheet at 31 March 2016
......... continued

For the year ending 31 March 2016 the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the Financial Reporting Standard for Smaller Entities (effective January 2015).

Approved by the Board on 1 December 2016 and signed on its behalf by:

.........................................
V Kavi
Director

.........................................
R Musthyala
Director

The notes on pages 4 to 6 form an integral part of these financial statements.
Page 3

Lochinch Limited
Notes to the Abbreviated Accounts for the Year Ended 31 March 2016
......... continued

1	Accounting policies

Basis of preparation

The 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 January 2015).

The company has net current liabilities at 31 March 2016 and meets its day to day working capital requirements through its directors loan account. On the basis of this support, the directors consider it appropriate to prepare the financial statements on the going concern basis.However, should the company not have the support of its directors, and therefore be unable to continue trading, 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, and to reclassify fixed assets and long term liabilities as current assets and current liabilities.
 

Turnover

Turnover represents amounts chargeable in respect of the sale of goods and services to customers.

Government grants

Government grants in respect of capital expenditure are credited to a deferred income account and are released to profit over the expected useful lives of the relevant assets by equal annual instalments. Grants of a revenue nature are credited to income so as to match them with the expenditure to which they relate.

Goodwill

Positive goodwill is capitalised, classified as an asset on the balance sheet and amortised on a straight line basis over its useful economic life. It is reviewed for impairment at the end of the first full financial year following the acquisition and in other periods if events or changes in circumstances indicate that the carrying value may not be recoverable.

Amortisation

Amortisation is provided on intangible fixed assets so as to write off the cost, less any estimated residual value, over their expected useful economic life as follows:

Asset class	Amortisation method and rate
Goodwill	20 years straight line basis

Depreciation

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:

Asset class	Depreciation method and rate
Freehold land and buildings	2% straight line basis
Plant and machinery	25% reducing balance basis
Fixtures and fittings	15% reducing balance basis
Office equipment	33% straight line basis

Stock

Page 4

Lochinch Limited
Notes to the Abbreviated Accounts for the Year Ended 31 March 2016
......... continued

Stock is valued at the lower of cost and net realisable value, after due regard for obsolete and slow moving stocks. Net realisable value is based on selling price less anticipated costs to completion and selling costs.

Deferred tax

Deferred tax is recognised, without discounting, in respect of all timing differences between the treatment of certain items for taxation and accounting purposes, which have arisen but not reversed by the balance sheet date, except as required by the FRSSE. Deferred tax is measured at the rates that are expected to apply in the periods when the timing differences are expected to reverse, based on the tax rates and law enacted at the balance sheet date.

Hire purchase and leasing

Rentals payable under operating leases are charged in the profit and loss account on a straight line basis over the lease term.

2	Fixed assets

		Intangible assets £			Tangible assets £			Total £
Cost
At 1 April 2015		240,273			194,724			434,997
At 31 March 2016		240,273			194,724			434,997
Depreciation
At 1 April 2015		24,028			20,582			44,610
Charge for the year		12,014			11,714			23,728
At 31 March 2016		36,042			32,296			68,338
Net book value
At 31 March 2016		204,231			162,428			366,659
At 31 March 2015		216,245			174,142			390,387

Page 5

Lochinch Limited
Notes to the Abbreviated Accounts for the Year Ended 31 March 2016
......... continued

3

Creditors

Creditors includes the following liabilities, on which security has been given by the company:

		2016 £			2015 £
Amounts falling due within one year		18,113			17,343
Amounts falling due after more than one year		208,811			226,896
Total secured creditors		226,924			244,239

4	Share capital

Allotted, called up and fully paid shares

	2016						2015
		No.			£			No.			£
Ordinary shares of £1 each		40,000			40,000			40,000			40,000

5

Control

The company is controlled by the directors who own 100% of the called up share capital.

Page 6