Kelvin Steels Limited - Accounts to registrar - small 17.2

REGISTERED NUMBER: SC205181 (Scotland)

Financial Statements for the Year Ended 30 November 2016

for

KELVIN STEELS LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

B F A Nugent

Mrs C R P Nugent

H B Nugent

SECRETARY:

W T Nugent

REGISTERED OFFICE:

Caledonia House

Thornliebank Industrial Estate

Glasgow

G46 8JT

REGISTERED NUMBER:

SC205181 (Scotland)

SENIOR STATUTORY AUDITOR:

Robert Pollock BA CA

AUDITORS:

Sharles Audit Limited

Statutory Auditor

29 Brandon Street

Hamilton

ML3 6DA

FIXED ASSETS

Intangible assets

5

-

-

Tangible assets

6

217,148

143,897

217,148

143,897

CURRENT ASSETS

Stocks

530,810

710,957

Debtors

7

1,557,876

1,303,140

Cash at bank

476,604

683,487

2,565,290

2,697,584

CREDITORS

Amounts falling due within one year

8

843,346

760,603

NET CURRENT ASSETS

1,721,944

1,936,981

TOTAL ASSETS LESS CURRENT LIABILITIES

1,939,092

2,080,878

PROVISIONS FOR LIABILITIES

722,648

770,322

NET ASSETS

1,216,444

1,310,556

CAPITAL AND RESERVES

Called up share capital

10,000

10,000

Retained earnings

1,206,444

1,300,556

SHAREHOLDERS' FUNDS

1,216,444

1,310,556

The financial statements have been prepared and delivered in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors on 25 August 2017 and were signed on its behalf by:

H B Nugent - Director

1.	STATUTORY INFORMATION

Kelvin Steels Limited is a private company, limited by shares , registered in Scotland. The company's registered

number and registered office address can be found on the Company Information page.

2.	STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with the provisions of Section 1A "Small Entities" of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. There were no material departures from the standard.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates,

value added tax and other sales taxes.

Turnover is derived from sales of steel by the company.

Turnover is measured at the fair value of the sales of steel, net of discounts and excluding value added tax, and

is recognised at the point that the company obtains the right to consideration.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2009, is being amortised evenly over its estimated useful life of four years.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Land and buildings

-

2% on cost

Plant and machinery etc

-

25% on cost, 10% on cost and at varying rates on cost

Tangible fixed assets held for the companies own use are stated at cost less accumulated depreciation and

accumulated impairment loss.

At each balance sheet date, the company reviews the carrying amounts of its tangible fixed assets to determine

whether there is any indication that any items have suffered an impairment loss. If any such indication exists, the

recoverable amount of an asset is estimated in order to determine the extent of the impairment loss. Where it is

not possible to estimate the recoverable amount of the asset, the company estimates the recoverable amount of

the cash-generating unit to which the asset belongs.

Expenditure of £1,000 or more on individual tangible fixed assets is capitalised at cost. Expenditure on assets

below this threshold is charged directly to the income statement in the period it is incurred.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell (net realisable

value). Costs, which comprise direct production costs, are based on the method appropriate to the type of

inventory class, but usually on a first-in-first-out basis. Overheads are charged to the income statement as

incurred. Net realisable value is based on the estimated selling price less any estimated completion or selling

costs.

When stocks are sold, the carrying amount of those stocks is recognised as an expense in the period in which the

related revenue is recognised. The amount of any write-down of stocks to net realisable value and all losses of

stocks are recognised as an expense in the period in which the write-down or loss occurs. The amount of any

reversal of any write-down of stocks is recognised as a reduction in the amounts of stocks recognised as an

expense in the period in which the reversal occurs.

Taxation

Taxation 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 in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that that have been enacted or

substantively enacted by the balance sheet date.

Deferred Tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance

sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from

those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that

have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the

timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they

will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Pension costs and other post-retirement benefits

The company makes contributions to a defined contribution pension scheme and the pension charge represents

the amounts payable by the company to the fund in respect of the year.

4.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 34 .

5.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 December 2015

and 30 November 2016

68,252

AMORTISATION

At 1 December 2015

and 30 November 2016

68,252

NET BOOK VALUE

At 30 November 2016

-

At 30 November 2015

-

6.	TANGIBLE FIXED ASSETS

Plant and

Land and

machinery

buildings

etc

Totals

£

£

£

COST

At 1 December 2015

50,621

621,591

672,212

Additions

119,970

22,764

142,734

Disposals

-

(2,876

)

(2,876

)

At 30 November 2016

170,591

641,479

812,070

DEPRECIATION

At 1 December 2015

33,916

494,399

528,315

Charge for year

7,461

59,146

66,607

At 30 November 2016

41,377

553,545

594,922

NET BOOK VALUE

At 30 November 2016

129,214

87,934

217,148

At 30 November 2015

16,705

127,192

143,897

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2016

2015

£

£

Trade debtors

900,627

993,409

Amounts owed by group undertakings

582,995

234,468

Other debtors

74,254

75,263

1,557,876

1,303,140

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2016

2015

£

£

Trade creditors

466,100

235,232

Taxation and social security

76,582

124,114

Other creditors

300,664

401,257

843,346

760,603

9.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Robert Pollock BA CA (Senior Statutory Auditor)

for and on behalf of Sharles Audit Limited

10.	RELATED PARTY DISCLOSURES

The company's related parties are considered to be Eaststrand Ltd, Arran Holdings limited, Weststrand Limited

and Kelvin Steels (England) Limited. Eaststrand Limited has a common director and beneficial shareholder and

Arran Holdings Limited is a subsidiary of Eaststrand Limited. Weststrand Limited is the company's ultimate

parent company, and Kelvin Steels (England) Limited is a fellow subsidiary.

The company leases its premises from Arran Holdings Limited. During the year rent of £150,000 (2015 -

£150,000) was paid to Arran Holdings Limited under the terms of the lease. Also, £15,000 (2015 - £15,000)

was paid to this company in respect of management fees. £18,000 was due to this company at the year end (2015

- £nil)

There were no transactions or balances at the year end with Inox Alloys Limited.

Exemption has been taken from disclosing related party transactions with Weststrand Limited and Kelvin Steels

(England) Limited on the basis that consolidated financial statements have been prepared for the group headed

by the company's parent, Weststrand Limited.