Langley_Motorist_Discount - Accounts

LANGLEY MOTORIST DISCOUNT CENTRE LIMITED - Company Information

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Langley Motorist Discount Centre Limited

Directors' Report and Unaudited Financial Statements

For the year ended 31 October 2016

Company Registration No. 06411965 (England and Wales)

Langley Motorist Discount Centre Limited

Company Information

Directors

H. S. Sandhu

D. S. Sandhu

J. S. Sandhu

Secretary

H. S. Sandhu

Company number

06411965

Registered office

Surrey House

36-44 High Street

Redhill

Surrey

RH1 1RH

Accountants

Kingston Smith LLP

Surrey House

36-44 High Street

Redhill

Surrey

RH1 1RH

Langley Motorist Discount Centre Limited

Directors' Report

For the year ended 31 October 2016

Page 1

The directors present their report and financial statements for the year ended 31 October 2016.

Principal activities

The principal activity of the company continued to be that of a vehicle parts retailer.a vehicle parts retailer.

Directors

The following directors have held office since 1 November 2015:

H. S. Sandhu

D. S. Sandhu

J. S. Sandhu

Statement of directors' responsibilities

The directors are responsible for preparing the Directors' Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have 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 directors must not approve the financial statements unless they are 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 directors are 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 directors are 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 them to ensure that the financial statements comply with the Companies Act 2006. They are 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.

This report has been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006.

On behalf of the board

J. S. Sandhu

Director

26 July 2017

Langley Motorist Discount Centre Limited

Chartered Accountants' Report to the Board of Directors on the preparation of the Unaudited Statutory Financial Statements of Langley Motorist Discount Centre Limited for the year ended 31 October 2016

Page 2

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Langley Motorist Discount Centre Limited for the year ended 31 October 2016 which comprise the Profit and Loss Account, the Balance Sheet and the related notes from the company's accounting records and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales, 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 Langley Motorist Discount Centre Limited, as a body, in accordance with the terms of our engagement letter dated 23 July 2015. Our work has been undertaken solely to prepare for your approval the financial statements of Langley Motorist Discount Centre Limited and state those matters that we have agreed to state to the Board of Directors of Langley Motorist Discount Centre Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Langley Motorist Discount Centre Limited and its Board of Directors as a body, for our work or for this report.

It is your duty to ensure that Langley Motorist Discount Centre 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 Langley Motorist Discount Centre Limited. You consider that Langley Motorist Discount Centre 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 Langley Motorist Discount Centre 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.

Kingston Smith LLP

27 July 2017

Chartered Accountants

Surrey House

36-44 High Street

Redhill

Surrey

RH1 1RH

Langley Motorist Discount Centre Limited

Profit and Loss Account

For the year ended 31 October 2016

Page 3

2016

2015

Notes

Turnover

1,351,275

1,407,086

Cost of sales

(823,124)

(862,246)

Gross profit

528,151

544,840

Administrative expenses

(297,467)

(281,015)

Operating profit

230,684

263,825

Interest payable and similar charges

(126)

(812)

Profit on ordinary activities before taxation

230,558

263,013

Tax on profit on ordinary activities

(46,112)

(53,603)

Profit for the year

184,446

209,410

Langley Motorist Discount Centre Limited

Balance Sheet

As at 31 October 2016

Page 4

2016

2015

Notes

Fixed assets

Tangible assets

17,748

21,983

Current assets

Stocks

246,763

273,065

Debtors

5,996

167,733

Cash at bank and in hand

367,185

262,588

619,944

703,386

Creditors: amounts falling due within one year

(233,136)

(285,761)

Net current assets

386,808

417,625

Total assets less current liabilities

404,556

439,608

Creditors: amounts falling due after more than one year

(126,973)

(255,666)

Provisions for liabilities

(3,361)

(4,166)

274,222

179,776

Capital and reserves

Called up share capital

Profit and loss account

274,219

179,773

Shareholders' funds

274,222

179,776

For the financial year ended 31 October 2016 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit.

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

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

Approved by the Board for issue on 26 July 2017

J. S. Sandhu

Director

Company Registration No. 06411965

Langley Motorist Discount Centre Limited

Notes to the Financial Statements

For the year ended 31 October 2016

Page 5

Accounting policies

1.1

Accounting convention

The financial statements are prepared under the historical cost convention and in accordance with the Financial Reporting Standard for Smaller Entities (effective January 2015).

1.2

Compliance with 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).

1.3

Turnover

Turnover represents amounts receivable for goods sold net of VAT and trade discounts.sold net of VAT and trade discounts.

1.4

Goodwill

Acquired goodwill is written off in equal annual installments over its estimated useful economic life of 6 and a half years. Goodwill was fully amortised at 31 October 2014.

1.5

Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Land and buildings Leasehold

20% reducing balance

Computer equipment

25% reducing balance

Fixtures, fittings & equipment

15% reducing balance

Motor vehicles

25% reducing balance

Operating profit

2016

2015

Operating profit is stated after charging:

Depreciation of tangible assets

4,235

5,347

Directors' remuneration

27,000

Taxation

2016

2015

Domestic current year tax

U.K. corporation tax

46,917

52,866

Total current tax

46,917

52,866

Deferred tax

Deferred tax movement

(805)

737

46,112

53,603

Langley Motorist Discount Centre Limited

Notes to the Financial Statements (Continued)

For the year ended 31 October 2016

Page 6

Dividends

2016

2015

Ordinary interim paid

90,000

Intangible fixed assets

Goodwill

Cost

At 1 November 2015 & at 31 October 2016

650,000

Amortisation

At 1 November 2015 & at 31 October 2016

650,000

Net book value

At 31 October 2016

At 31 October 2015

Tangible fixed assets

Land and buildings

Plant and machinery etc

Total

Cost

At 1 November 2015 & at 31 October 2016

3,466

67,480

70,946

Depreciation

At 1 November 2015

2,885

46,078

48,963

Charge for the year

116

4,119

4,235

At 31 October 2016

3,001

50,197

53,198

Net book value

At 31 October 2016

465

17,283

17,748

At 31 October 2015

581

21,402

21,983

Langley Motorist Discount Centre Limited

Notes to the Financial Statements (Continued)

For the year ended 31 October 2016

Page 7

Debtors

2016

2015

Other debtors

5,996

167,733

Creditors: amounts falling due within one year

2016

2015

Trade creditors

151,399

196,392

Taxation and social security

71,699

75,534

Other creditors

10,038

13,835

233,136

285,761

Creditors: amounts falling due after more than one year

2016

2015

Other creditors

126,973

255,666

Provisions for liabilities

Deferred tax liability

Balance at 1 November 2015

4,166

Profit and loss account

(805)

Balance at 31 October 2016

3,361

The deferred tax liability is made up as follows:

2016

2015

Accelerated capital allowances

3,361

4,166

Langley Motorist Discount Centre Limited

Notes to the Financial Statements (Continued)

For the year ended 31 October 2016

Page 8

Share capital

2016

2015

Allotted, called up and fully paid

3 ordinary shares of £1 each

Statement of movements on profit and loss account

Profit and loss
account

Balance at 1 November 2015

179,773

Profit for the year

184,446

Dividends paid

(90,000)

Balance at 31 October 2016

274,219

Control

The company is controlled by the directors, by virtue of their equal shareholdings.

Related party relationships and transactions

Included within other creditors under amounts falling due after more than one year are amounts due to H. S. Sandhu, D. S. Sandhu and J. S. Sandhu of £682 (2015: £102,425), £32,118 (2015: £33,217) and £94,173 (2015: £120,024) respectively, all of whom are directors of the company.

During the year, the company paid out dividends to H. S. Sandhu, D. S. Sandhu and J. S. Sandhu of £30,000 each (2015: £30,000 each) in their capacity as shareholders of the company.