Charnwood Manufacturing Limited - Period Ending 2016-12-31

Registration number: 06183980

Charnwood Manufacturing Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 December 2016

Deans Accountants And Business Advisors Ltd
Chartered Accountants and Business Advisors
27 North Bridge Street
Hawick
Borders
TD9 9BD

Charnwood Manufacturing Limited

Contents

Company Information	1
Accountants' Report	2
Balance Sheet	3
Statement of Changes in Equity	4
Notes to the Financial Statements	5 to 9

Charnwood Manufacturing Limited

Company Information

Director

Mr James Noel Wright

Registered office

Oak Garth 20 Cheltenham Avenue Ben Rhydding Ilkley West Yorkshire LS29 8BN

Accountants

Deans Accountants And Business Advisors Ltd Chartered Accountants and Business Advisors 27 North Bridge Street Hawick Borders TD9 9BD

Page 1

DEANS

Chartered Accountants

Chartered Accountants' Report to the Director on the Preparation of the Unaudited Statutory Accounts of
Charnwood Manufacturing Limited for the Year Ended 31 December 2016

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of Charnwood Manufacturing Limited for the year ended 31 December 2016 as set out on pages 3 to 9 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 of Scotland (ICAS), we are subject to its ethical and other professional requirements which are detailed at http://www.icas.com/ethics/icas-code-of-ethics.

This report is made solely to the Board of Directors of Charnwood Manufacturing Limited, as a body, in accordance with the terms of our engagement letter dated 5 August 2014. Our work has been undertaken solely to prepare for your approval the accounts of Charnwood Manufacturing Limited and state those matters that we have agreed to state to the Board of Directors of Charnwood Manufacturing 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 Charnwood Manufacturing Limited and its Board of Directors as a body for our work or for this report.

It is your duty to ensure that Charnwood Manufacturing Limited has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and profit of Charnwood Manufacturing Limited. You consider that Charnwood Manufacturing 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 accounts of Charnwood Manufacturing 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 accounts.

......................................

Deans Accountants And Business Advisors Ltd
Chartered Accountants and Business Advisors
27 North Bridge Street
Hawick
Borders
TD9 9BD

27 September 2017

Page 2

Charnwood Manufacturing Limited

(Registration number: 06183980)
Balance Sheet as at 31 December 2016

	Note	2016 £	2015 £
Fixed assets
Tangible assets	4	37	50
Current assets
Stocks	5	14,175	15,592
Debtors	6	37,614	35,461
Cash at bank and in hand		504	319
		52,293	51,372
Creditors: Amounts falling due within one year	7	(55,098)	(68,532)
Net current liabilities		(2,805)	(17,160)
Net liabilities		(2,768)	(17,110)
Capital and reserves
Called up share capital		1	1
Profit and loss account		(2,769)	(17,111)
Total equity		(2,768)	(17,110)

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

Director's responsibilities:

•	The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and
•	The director acknowledges his responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the director on 27 September 2017
 

.........................................

Mr James Noel Wright

Director

The notes on pages 5 to 9 form an integral part of these financial statements.

Page 3

Charnwood Manufacturing Limited

Statement of Changes in Equity for the Year Ended 31 December 2016

	Share capital £	Profit and loss account £	Total £
At 1 January 2016	1	(17,111)	(17,110)
Profit for the year	-	14,342	14,342
Total comprehensive income	-	14,342	14,342
At 31 December 2016	1	(2,769)	(2,768)

	Share capital £	Profit and loss account £	Total £
At 1 January 2015	1	(9,644)	(9,643)
Loss for the year	-	(7,467)	(7,467)
Total comprehensive income	-	(7,467)	(7,467)
At 31 December 2015	1	(17,111)	(17,110)

The notes on pages 5 to 9 form an integral part of these financial statements.

Page 4

Charnwood Manufacturing Limited

Notes to the Financial Statements for the Year Ended 31 December 2016

1	General information

The company is a private company limited by share capital incorporated in England.

The address of its registered office is:
Oak Garth
20 Cheltenham Avenue
Ben Rhydding
Ilkley
West Yorkshire
LS29 8BN

These financial statements were authorised for issue by the director on 27 September 2017.

2	Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The financial statements are presented in Sterling (£) and rounded to the nearest £0.

Going concern

The company has net liabilities of £2,768 as at 31 December 2016 (2015: £17,110). The company relies on the continued support of the director to finance the day to day requirements.

The director considers it appropriate to prepare the financial statements on a going concern basis after consideration of all the information available about the foreseebale future (limited to one year from the date of approval of these financial statements) there is reasonable expectation that the company has adequate resources to remain in operational existance for the foreseeable future.

Judgements

Preparation of the financial statements requires management to make significant judgements and estimates. The items in the financial statements where these judgements and estimates have been made included:

Useful economic lives of tangible assets – the annual depreciation charge for tangible assets is sensitive to change in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on economic utilisation, and the physical condition of the assets.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

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Charnwood Manufacturing Limited

Notes to the Financial Statements for the Year Ended 31 December 2016

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Plant and machinery	25% reducing balance

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Page 6

Charnwood Manufacturing Limited

Notes to the Financial Statements for the Year Ended 31 December 2016

Financial instruments

Classification
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of it’s liabilities.

 Recognition and measurement
Where shares are issued, any component that creates, a financial liability of the company is presented as a liability in the balance sheet. The corresponding dividends relating to the liability component are charged as an interest expenses in the profit and loss account.
 Impairment
At the end of each reporting period financial instruments measured at fair value are assessed for objective evidence of impairment. The impairment loss is recognised in the profit and loss account.
 

3	Staff numbers

The average number of persons employed by the company (including the director) during the year, was 2 (2015 - 2).

Page 7

Charnwood Manufacturing Limited

Notes to the Financial Statements for the Year Ended 31 December 2016

4	Tangible assets

	Plant and machinery  £	Total £
Cost or valuation
At 1 January 2016	500	500
At 31 December 2016	500	500
Depreciation
At 1 January 2016	450	450
Charge for the year	13	13
At 31 December 2016	463	463
Carrying amount
At 31 December 2016	37	37
At 31 December 2015	50	50

5

Stocks

	2016 £	2015 £
Other inventories	14,175	15,592

6

Debtors

	2016 £	2015 £
Trade debtors	36,449	34,792
Other debtors	1,165	669
Total current trade and other debtors	37,614	35,461

7

Creditors

	Note	2016 £	2015 £
Due within one year
Trade creditors		27,275	24,328
Taxation and social security		2,543	857
Other creditors		25,280	43,347
		55,098	68,532

Page 8

Charnwood Manufacturing Limited

Notes to the Financial Statements for the Year Ended 31 December 2016

8	Related party transactions

Transactions with directors

Other transactions with directors

J N Wright
(Director and Shareholder)
J N Wright advanced loans to the company during the year. The loan is unsecured, undated and no interest has been charged. At the balance sheet date the amount due to J N Wright was £3,880 (2015 - £3,280).

Summary of transactions with other related parties

The House of Cheviot Limited
(A company registered in England in which J N Wright is a director and shareholder)
Loans and trading transactions made to the company are at normal commercial rates. At the balance sheet date the amount due to The House of Cheviot Limited was £18,531 (2015 - £38,542).
 

9	Transition to FRS 102

No adjustments are required in respect of the transition to FRS 102.

Page 9