Nirro Limited Small abridged accounts

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Statement of Consent to Prepare Abridged Financial Statements

All of the members of Nirro Limited have consented to the preparation of the abridged statement of income and retained earnings and the abridged statement of financial position for the year ending 31 August 2017 in accordance with Section 444(2A) of the Companies Act 2006.

COMPANY REGISTRATION NUMBER: 04050459

Nirro Limited

Unaudited Abridged Financial Statements

31 August 2017

Nirro Limited

Abridged Financial Statements

Year ended 31 August 2017

Contents	Page

Officers and professional advisers	1

Director's report	2

Abridged statement of income and retained earnings	3

Abridged statement of financial position	4

Notes to the abridged financial statements	5

The following pages do not form part of the abridged financial statements

Detailed abridged income statement	11

Notes to the detailed abridged income statement	12

Nirro Limited

Officers and Professional Advisers

Director	Mr. Tural Kuburoglu

Company secretary	Mr. Adnan Irfan

Registered office	834 Hertford Road
	Enfield
	Middlesex
	EN3 6UE

Accountants	Gursoy & Co. Accountants Ltd
	Certified Accountants
	834 Hertford Road
	Enfield
	Middlesex
	UK
	EN3 6UE

Nirro Limited

Director's Report

Year ended 31 August 2017

The director presents his report and the unaudited abridged financial statements of the company for the year ended 31 August 2017 .

Director

The director who served the company during the year was as follows:

Mr. Tural Kuburoglu

Small company provisions

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

This report was approved by the board of directors on 10 November 2017 and signed on behalf of the board by:

Mr. Tural Kuburoglu
Director

Registered office:

834 Hertford Road

Enfield

Middlesex

EN3 6UE

Nirro Limited

Abridged Statement of Income and Retained Earnings

Year ended 31 August 2017

	2017	2016
Note	£	£
Gross profit	598,040	530,131

Distribution costs	50,026	57,458
Administrative expenses	357,226	367,785
	---------	---------
Operating profit	190,788	104,888

Other interest receivable and similar income		829	2,465
		---------	---------
Profit before taxation	5	191,617	107,353

Tax on profit	6	37,688	21,709
		---------	---------
Profit for the financial year and total comprehensive income		153,929	85,644
		---------	---------

Retained earnings at the start of the year	675,151	589,507
	---------	---------
Retained earnings at the end of the year	829,080	675,151
	---------	---------

All the activities of the company are from continuing operations.

Nirro Limited

Abridged Statement of Financial Position

31 August 2017

	2017		2016
Note	£	£	£

Fixed assets

Tangible assets	7		40,283	45,928

Current assets

Stocks	262,900	259,800
Debtors	54,645	53,251
Cash at bank and in hand	598,283	414,962
	---------	---------
	915,828	728,013

Creditors: amounts falling due within one year	126,031		97,790
	---------		---------
Net current assets		789,797	630,223
		---------	---------
Total assets less current liabilities		830,080	676,151
		---------	---------
Net assets		830,080	676,151
		---------	---------

Capital and reserves

Called up share capital	1,000	1,000
Profit and loss account	829,080	675,151
	---------	---------
Shareholders funds	830,080	676,151
	---------	---------

These abridged financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

For the year ending 31 August 2017 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 abridged financial statements for the year in question in accordance with section 476 ;

- The director acknowledges his responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of abridged financial statements .

These abridged financial statements were approved by the board of directors and authorised for issue on 10 November 2017 , and are signed on behalf of the board by:

Mr. Tural Kuburoglu
Director

Company registration number: 04050459

Nirro Limited

Notes to the Abridged Financial Statements

Year ended 31 August 2017

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 834 Hertford Road, Enfield, Middlesex, EN3 6UE.

2. Statement of compliance

These abridged financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities measured at fair value through profit or loss. The financial statements are prepared in sterling, which is the functional currency of the entity.

Going concern

The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Transition to FRS 102

The entity transitioned from previous UK GAAP to FRS 102 as at 1 September 2015. Details of how FRS 102 has affected the reported financial position and financial performance is given in note 10.

Judgements and key sources of estimation uncertainty

Preparation of the financial statements requires management to make significant judgements and estimates. The items in the financial statements where these judgement and estimates have been made include: a - Critical judgements in applying accounting policies There are no critical judgements (apart from those involving estimates) that have had a significant effect on amounts recognised in the financial statements. b - Key accounting estimates and assumptions The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods supplied and services rendered, stated net of discounts and of Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer, usually on despatch of the goods, the amount of revenue can be measured reliably, it is probable that the associated economic benefits will flow to the entity, and the costs incurred or to be incurred in respect of the transactions can be measured reliably. Interest receivable on bank deposits and other items is included within other income.

Income tax

Current tax is recognised for the amount of income tax payable in respect of the taxable profit for the current or past reporting periods using the tax rates and laws that that have been enacted or substantively enacted by the reporting date. Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Foreign currencies

Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Plant and machinery	-	18% reducing balance
Motor van	-	18% reducing balance

Impairment of assets

At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in profit or loss. If an impairment loss subsequently reverses, the carry amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

Provisions for liabilities

A provision is recognised in the Balance Sheet when the Company has a present legal or constructive obligation as a result of a past event, that can be reliably measured and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects risks specific to the liability.

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties and loans to related parties. Debt instruments (other than those wholly repayable or receivable within one year), including loans and other debtors and creditors, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors or creditors, are measured, initially and subsequently, at the undiscounted amount of the cash and other consideration, expected to be paid or or received. However if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost. Financial assets that are measured at cost and amortised are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Profit and Loss Account.

Cash and cash equivalents

Cash and cash equivalents include cash in hand and at bank. Bank overdrafts are shown within borrowings in current liabilities.

4. Employee numbers

The average number of persons employed by the company during the year amounted to 15 (2016: 15 ).

5. Profit before taxation

Profit before taxation is stated after charging:

	2017	2016
	£	£
Depreciation of tangible assets	8,842	10,080
	-------	--------

6. Tax on profit

Major components of tax expense

	2017	2016
	£	£

Current tax:

UK current tax expense	37,688	21,709
	--------	--------
Tax on profit	37,688	21,709
	--------	--------

7. Tangible assets

	£
Cost
At 1 September 2016	127,884
Additions	3,197
	---------
At 31 August 2017	131,081
	---------
Depreciation
At 1 September 2016	81,956
Charge for the year	8,842
	---------
At 31 August 2017	90,798
	---------
Carrying amount
At 31 August 2017	40,283
	---------
At 31 August 2016	45,928
	---------

8. Financial instruments at fair value

The company has the following financial instruments:

	2017	2016
	£	£
Financial assets measured at amortised cost
Trade and other debtors	26,002	25,200
Prepayments	28,643	28,051
	--------	--------
	54,645	53,251
	--------	--------


Financial liabilities measured at amortised cost
Bank loans and overdraft	468	1,124
Trade and other creditors	48,426	38,916
Accruals	7,274	6,652
	--------	--------
	56,168	46,692
	--------	--------

9. Related party transactions

Mr. Tural Kuburoglu , the managing director, along with Mr. Hasan Irfan are joint shareholders of Nirro Limited and jointly own both the premises that Nirro Limited is trading from. The owners and related parties charge rent to the company and hold a deposit of £21,000 for the rent.

10. Transition to FRS 102

These are the first abridged financial statements that comply with FRS 102. The company transitioned to FRS 102 on 1 September 2015.

No transitional adjustments were required in equity or profit or loss for the year.

This is the first financial year that the company has presented its financial statements in accordance with FRS 102 "The Financial Reporting Framework Applicable in the UK and Republic of Ireland (FRS 102). For financial years up to and including the year ending 31 August 2015, the Company prepared its financial statements in accordance with old UK GAAP. The Company's opening equity position as at 1 September 2015 and its previously published financial statements for the year ended 31 August 2016 have been restated from old UK GAAP.

Nirro Limited

Management Information

Year ended 31 August 2017

The following pages do not form part of the abridged financial statements.

Nirro Limited

Detailed Abridged Income Statement

Year ended 31 August 2017

	2017	2016
	£	£
Turnover	958,731	896,702

Cost of sales

Opening stock	259,800	265,400
Purchases	363,791	360,971
	---------	---------
	623,591	626,371

Closing stock	262,900	259,800
	---------	---------
	360,691	366,571
	---------	---------

	---------	---------
Gross profit	598,040	530,131

Overheads

Distribution costs	50,026	57,458
Administrative expenses	357,226	367,785
	---------	---------
	407,252	425,243

	---------	---------
Operating profit	190,788	104,888

Other interest receivable and similar income	829	2,465

	---------	---------
Profit before taxation	191,617	107,353
	---------	---------

Nirro Limited

Notes to the Detailed Abridged Income Statement

Year ended 31 August 2017

	2017	2016
	£	£

Distribution costs

Postage and couriers	36,064	49,339
Motor van expenses	7,492	8,119
Carriage and delivery	6,470	–
	--------	--------
	50,026	57,458
	--------	--------

Administrative expenses

Directors salaries	12,000	12,000
Wages and salaries	145,324	144,872
Employers national insurance contributions	4,008	4,352
Rent, rates and Ebay hosting	107,459	107,476
Light and heat	5,957	5,531
Insurance	23,276	24,886
Repairs and maintenance	6,749	7,490
Travelling and sustenance	1,986	576
Hire costs (non-operating leases)	232	2,726
Telephone and broadband	4,523	4,035
Printing and stationery	2,174	6,752
Sundry trade expenses	869	924
Laundry and cleaning	1,802	1,580
Subscriptions	3,002	3,822
Advertising	4,500	4,557
Entertaining	729	500
Permits and licences	885	1,786
Accountancy fees	9,125	8,894
Depreciation	8,842	10,080
Bank, credit card and PayPal charges	12,069	14,946
Foreign currency gains/losses	1,715	–
	---------	---------
	357,226	367,785
	---------	---------

Other interest receivable and similar income

Interest receivable	829	2,465
	----	-------