| C V Airbrakes Limited |
| Notes to the Accounts |
| for the year ended 31 March 2017 |
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| 1 |
Accounting policies |
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Basis of preparation |
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The accounts have been prepared under the cessation basis. No adjustment to the financial statements have been required as a result of this basis of preparation. |
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Turnover |
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Turnover represents net invoiced sales of goods, excluding value added tax, except in respect of service contracts where turnover is recognised when the company obtains the right to consideration. |
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Tangible fixed assets |
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Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows: |
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Leasehold property improvements |
10 years straight line |
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Plant and machinery etc |
5 years straight line |
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Stocks |
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Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised. |
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Debtors |
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Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
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Creditors |
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Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
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Taxation |
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A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted. |
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Provisions |
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Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably. |
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Foreign currency translation |
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Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss. |
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Leased assets |
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A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term. |
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Pensions |
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Contributions to defined contribution plans are expensed in the period to which they relate. |
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| 2 |
Exceptional items |
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On the 30th November 2016, the company entered a business purchase agreement with Bremsen Technik Reman Limited. The business purchase agreement covers the sale of the business (together with the assets) as a going concern. |
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| 3 |
Employees |
2017 |
|
2016 |
| Number |
Number |
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Average number of persons employed by the company |
7 |
|
14 |
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| 4 |
Tangible fixed assets |
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Leasehold property improvements |
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Plant and machinery etc |
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Motor vehicles |
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Total |
| £ |
£ |
£ |
£ |
|
Cost |
|
At 1 April 2016 |
9,692 |
|
318,835 |
|
- |
|
328,527 |
|
Additions |
- |
|
29,921 |
|
- |
|
29,921 |
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Surplus on revaluation |
- |
|
- |
|
- |
|
- |
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Disposals |
(9,692) |
|
(348,756) |
|
- |
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(358,448) |
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At 31 March 2017 |
- |
|
- |
|
- |
|
- |
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Depreciation |
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At 1 April 2016 |
5,820 |
|
254,111 |
|
- |
|
259,931 |
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Charge for the year |
632 |
|
28,585 |
|
- |
|
29,217 |
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Surplus on revaluation |
- |
|
- |
|
- |
|
- |
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On disposals |
(6,452) |
|
(282,696) |
|
- |
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(289,148) |
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At 31 March 2017 |
- |
|
- |
|
- |
|
- |
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Net book value |
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At 31 March 2017 |
- |
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- |
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- |
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- |
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At 31 March 2016 |
3,872 |
|
64,724 |
|
- |
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68,596 |
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| 5 |
Debtors |
2017 |
|
2016 |
| £ |
£ |
|
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Trade debtors |
29,734 |
|
268,393 |
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Prepayments |
|
- |
|
36,637 |
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Other debtors |
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|
39,519 |
|
- |
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Corporation tax |
14,507 |
|
- |
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|
83,760 |
|
305,030 |
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| 6 |
Creditors: amounts falling due within one year |
2017 |
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2016 |
| £ |
£ |
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Bank loans and overdrafts |
- |
|
71,793 |
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Obligations under finance lease and hire purchase contracts |
- |
|
18,970 |
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Trade creditors |
18,107 |
|
224,827 |
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Factoring of trade debts |
|
- |
|
215,784 |
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Corporation tax |
- |
|
671 |
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Other taxes and social security costs |
23,877 |
|
28,665 |
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Directors' current accounts |
20,575 |
|
64,822 |
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Other creditors |
34,250 |
|
15,566 |
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|
96,809 |
|
641,098 |
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| 7 |
Creditors: amounts falling due after one year |
2017 |
|
2016 |
| £ |
£ |
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Obligations under finance lease and hire purchase contracts |
- |
|
16,113 |
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- |
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16,113 |
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| 8 |
Other financial commitments |
2017 |
|
2016 |
| £ |
£ |
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Total future minimum payments under non-cancellable operating leases |
|
- |
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63,400 |
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| 9 |
Related party transactions |
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Mr D.A. Gregory maintains a loan account with the company. At the balance sheet date, the company |
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owed Mr D.A. Gregory £20,575 (2016 - £64,302). |
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During the year the company paid rent to Mr D.A. Gregory totalling £nil (2016 - £520). |
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During the year, Mr D.A. Gregory received dividends totalling £nil (2016 - £30,000). |
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Mr D.A. Gregory is also a director of Bremsen Technik Reman Limited. During the year the company |
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sold the trade and assets to Bremsen Technik Reman Limited for £350,000. |
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At the year end the company was owed £39,519 by Bremsen Technik Reman Limited. |
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| # |
Controlling party |
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The company is under the control of Mr D.A. Gregory by virtue of his majority shareholding. |
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| 11 |
Other information |
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C V Airbrakes Limited is a private company limited by shares and incorporated in England. Its registered office is: |
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F1 Little Heath Industrial Estate |
|
Old Church Road |
|
Coventry |
|
Warwickshire |
|
CV6 7ND |
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| # |
Going concern |
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The company ceased to trade as from 30th November 2016. As a result, these accounts have been |
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prepared on the cessation basis. No adjustments have been required to prepare these accounts |
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under the cessation basis. |
