| 1. |
Accounting Policies
Basis of accounting
The financial statements have been prepared under the historical cost convention and in accordance with FRS 102 Section 1A small entities. There were no material departures from the standard.
This is the first period in which the financial statements have been prepared under FRS102 Section 1A small entities.
The Transition to FRS 102 Section 1A small entities has resulted in a small number of changes in the accounting policies to those used previously.
The nature of these changes and their impact on opening equity and profit for the comparative period are explained in note 19.
Deferred taxation
Deferred tax is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes. The deferred tax balance has not been discounted.
Dividends
Proposed dividends are only included as liabilities in the financial statements when their payment has been approved by the shareholders prior to the balance sheet date.
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:
| Plant and Machinery 6.67% to |
33
Straight Line
|
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.
Going Concern
The financial statements have been prepared on a going concern basis. The company's ongoing activities are dependent upon the continued support of the directors who have undertaken to provide such support for the foreseeable future.
If the going concern basis were not appropriate, adjustments would have to be made to reduce the value of assets to their recoverable amount, to provide for any further liabilities that may arise and to reclassify fixed assets as current assets and long term liabilities as current liabilities.
Turnover
Turnover comprises the invoiced value of goods and services supplied by the company, net of Value Added Tax and trade discounts.
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 profit and loss account on a straight line basis.
|
| 2. |
Tangible fixed assets
| Cost or Valuation |
Plant and Machinery 6.67% to |
|
Total |
| |
£ |
|
£ |
| At 01 April 2015 |
1,784,370 |
|
1,784,370 |
| Additions |
3,453 |
|
3,453 |
| Disposals |
- |
|
- |
| At 31 March 2016 |
1,787,823 |
|
1,787,823 |
| Depreciation |
| At 01 April 2015 |
1,082,208 |
|
1,082,208 |
| Charge for year |
159,207 |
|
159,207 |
| On disposals |
- |
|
- |
| At 31 March 2016 |
1,241,415 |
|
1,241,415 |
| Net book values |
| At 31 March 2016 |
546,408 |
|
546,408 |
| At 01 April 2015 |
702,162 |
|
702,162 |
The net book value of Plant and Machinery 6.67% to includes £444,594(2015 £560,757) in respect of assets leased under finance leases or hire purchase contracts.
The depreciation charged in the year in respect of assets held under hire purchase agreements amounted to £116,163 (2015 - £96,458) |
| 3. |
Share Capital
Authorised
8,000 Class A shares of £1.00 each
Allotted
|
2016
£ |
|
2015
£ |
|
8,000
Class A shares of £1.00 each |
8,000 |
|
8,000 |
|
8,000 |
|
8,000 |
|
| 4. |
Related Party Transactions
Dividends of £82,000 (2015 - £115,400) were paid to the shareholders in the year.
There were no other transactions with related parties undertaken such as are required to be disclosed under the small companies regime.
|
| 5. |
Statutory Information
Ripping Image Limited is a company limited by shares incorporated in England within the United Kingdom. The address of the registered office is given in the company information on page 3 of these financial statements.
The financial statements are presented in £sterling.
|
| 6. |
Transition
Short-term compensated absences
Prior to the adoption of FRS 102, Ripping Image Ltd did not make a provision for holiday pay earned not taken before the year end. FRS 102 requires the cost of short-term compensated absences to be recognised when employees render the service that increases their entitlement.
An accrual for the liability has been provided for in the financial statements.
|
| 7. |
Controlling Party
The distribution of shareholdings is such that there is no overall controlling party.
|
2
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