Modco Limited - Accounts to registrar (filleted) - small 18.1

REGISTERED NUMBER: 03546693

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2017

FOR

MODCO LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTOR:

Mr A Modhvadia

SECRETARY:

Mr R Modhvadia

REGISTERED OFFICE:

7 Wainman Road

Peterborough

England

PE2 7BU

REGISTERED NUMBER:

03546693

ACCOUNTANTS:

Hanburys Limited

Chartered Certified Accountants

6b Parkway

Porters Wood

St Albans

Hertfordshire

AL3 6PA

FIXED ASSETS

Intangible assets

4

-

4,000

Tangible assets

5

603,590

650,914

603,590

654,914

CURRENT ASSETS

Stocks

6

45,457

70,453

Debtors

7

183,638

144,323

Cash at bank and in hand

47,425

59,118

276,520

273,894

CREDITORS

Amounts falling due within one year

8

404,698

538,091

NET CURRENT LIABILITIES

(128,178

)

(264,197

)

TOTAL ASSETS LESS CURRENT LIABILITIES

475,412

390,717

CREDITORS

Amounts falling due after more than one year

9

(202,844

)

(209,638

)

PROVISIONS FOR LIABILITIES

11

(2,771

)

(11,814

)

NET ASSETS

269,797

169,265

CAPITAL AND RESERVES

Called up share capital

12

4

4

Retained earnings

13

269,793

169,261

SHAREHOLDERS' FUNDS

269,797

169,265

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 August 2017.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 August 2017 in accordance with Section 476 of the Companies Act 2006.

The director acknowledges his responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

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 Profit and Loss Account has not been delivered.

The financial statements were approved by the director on 25 May 2018 and were signed by:

Mr A Modhvadia - Director

1.	STATUTORY INFORMATION

Modco Limited is a private company, limited by shares , registered in Not specified/Other. The company's

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

These financial statements for the year ended 31 August 2017 are the first financial statements of Modco Limited

prepared in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of

Ireland. The reported financial position and financial performance for the previous period are unaffected by the

transition to FRS 102 other than by the inclusion of Deferred Tax amounting to £9,565 as at 1 September 2015,

the date of transition to FRS 102.

Turnover

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

value added tax and other sales taxes.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2016, is being amortised evenly over its estimated useful life of five years.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost

less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Freehold property

-

20% on cost

Plant and machinery

-

20% on reducing balance

Motor vehicles

-

25% on reducing balance

Computer equipment

-

33% on cost

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow

moving items.

Financial instruments

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12

'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the

contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is

a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to

realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction

price including transaction costs and are subsequently carried at amortised cost using the effective interest

method unless the arrangement constitutes a financing transaction, where the transaction is measured at the

present value of the future receipts discounted at a market rate of interest. Financial assets classified as

receivable within one year are not amortised.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual

arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of

the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are classified as debt, are initially recognised at

transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is

measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities

classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of

business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or

less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction

price and subsequently measured at amortised cost using the effective interest method.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account,

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 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.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held

under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases

are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element

of the future payments is treated as a liability.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 8 (2016 - 8 ) .

4.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 September 2016

5,000

Disposals

(5,000

)

At 31 August 2017

-

AMORTISATION

At 1 September 2016

1,000

Amortisation for year

750

Eliminated on disposal

(1,750

)

At 31 August 2017

-

NET BOOK VALUE

At 31 August 2017

-

At 31 August 2016

4,000

5.	TANGIBLE FIXED ASSETS

Freehold

Plant and

Motor

Computer

property

machinery

vehicles

equipment

Totals

£

£

£

£

£

COST

At 1 September 2016

792,374

126,931

22,930

11,158

953,393

Additions

-

-

14,490

2,659

17,149

Disposals

-

(40,000

)

(22,930

)

-

(62,930

)

At 31 August 2017

792,374

86,931

14,490

13,817

907,612

DEPRECIATION

At 1 September 2016

203,370

77,135

11,257

10,717

302,479

Charge for year

15,847

12,449

3,522

775

32,593

Eliminated on disposal

-

(16,875

)

(14,175

)

-

(31,050

)

At 31 August 2017

219,217

72,709

604

11,492

304,022

NET BOOK VALUE

At 31 August 2017

573,157

14,222

13,886

2,325

603,590

At 31 August 2016

589,004

49,796

11,673

441

650,914

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Motor

vehicles

£

COST

Additions

14,490

At 31 August 2017

14,490

DEPRECIATION

Charge for year

604

At 31 August 2017

604

NET BOOK VALUE

At 31 August 2017

13,886

6.

STOCKS

31.8.17

31.8.16

£

£

Stocks

45,457

70,453

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.8.17

31.8.16

£

£

Trade debtors

171,095

137,542

Other debtors

12,543

6,781

183,638

144,323

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.8.17

31.8.16

£

£

Bank loans and overdrafts (see note 10)

31,071

75,371

Hire purchase contracts

5,270

-

Trade creditors

16,997

41,965

Taxation

38,010

21,361

Social security and other taxes

621

763

Directors' current accounts

309,729

395,631

Accruals

3,000

3,000

404,698

538,091

9.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.8.17

31.8.16

£

£

Bank loans (see note 10)

193,184

209,638

Hire purchase contracts

9,660

-

202,844

209,638

The bank loan is secured over the freehold property of the company.

10.

LOANS

An analysis of the maturity of loans is given below:

31.8.17

31.8.16

£

£

Amounts falling due within one year or on demand:

Bank loans

31,071

75,371

Amounts falling due between two and five years:

Bank loans

193,184

209,638

11.	PROVISIONS FOR LIABILITIES

31.8.17

31.8.16

£

£

Deferred tax

Accelerated capital allowances

2,771

11,814

Deferred

tax

£

Balance at 1 September 2016

11,814

Credit to Income Statement during year

(9,043

)

Balance at 31 August 2017

2,771

12.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

31.8.17

31.8.16

value:

£

£

4

Ordinary

£ 1

4

4

13.

RESERVES

Retained

earnings

£

At 1 September 2016

169,261

Profit for the year

120,532

Dividends

(20,000

)

At 31 August 2017

269,793