1Accounting Policies

Basis of measurement and preparation of accounts
The accounts have been prepared under the historical cost convention and in accordance with the Financial Reporting Standard for Smaller Entities effective April 2008.

Turnover policy
Turnover represents income receivable for goods and services provided in the period, exclusive of Value Added Tax and trade discounts.

Tangible assets depreciation policy
Depreciation of fixed assets
A full years depreciation is charged in the year of acquisition of an asset but none in the year of disposal.

Depreciation has been computed to write off the cost of fixed assets over their expected useful lives at the following rates

Plant and machinery 15% per annum reducing balance
Fixtures and fittings 20% per annum reducing balance
Motor vehicles 25% per annum reducing balance

Intangible assets amortisation policy
Intangible assets
Goodwill is the difference between the amount paid on the acquisition of a business and the aggregate fair value of its separable net assets. It is being written off in equal annual instalments over its estimated economic life.

Other accounting policies
Stocks
Stocks and work in progress are valued consistently at the lower of cost (on a first in, first out basis) or net realisable value. Cost, where appropriate, includes a proportion of directly attributable overheads. Due to the downturn in sales the director believes this to be nil.

Debtors
Debtors are shown after providing for any amounts which in the opinion of the director may not be collected in full.

Deferred taxation
Deferred tax assets and liabilities have arisen from timing differences between the recognition of gains and losses in the financial statements and their recognition in a tax computation. Full provision is made for all liabilities, and provision is made for assets to the extent that they are considered more likely than not to be recoverable in the foreseeable future. Provision is made using tax rates that are expected to apply in the periods in which the timing differences are expected to reverse based upon rates enacted at the balance sheet date.

Investments
Investments are stated at the lower of cost less any permanent diminution in value.

Leasing
Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets and depreciated over the shorter of the lease term and their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Pension costs
The company paid contributions into personal pension schemes for specific employees. Contributions are charged to profit and loss account on a paid basis.

Grants received
Grants related to capital expenditure on tangible assets have been offset against the cost of the assets and are credited to the profit and loss account through the reduced depreciation charged on the assets to which the grants relate.

Group accounts
The company has taken the exemption included within s398 of the Companies Act 2006 not to prepare group accounts as the company and its subsidiary comprise a small group.

Other reserves
Other reserves relate to a corporate voluntary arrangement account. Creditors and payments have been allocated to this in accordance with the agreement made.

4Fixed assets Investments
Cost of investments
At 1 July 2011 £100
At 30 June 2012 £100


Net book value
At 30 June 2012 £100
At 30 June 2011 £100

The company holds 100% of the Ordinary share capital of Alpha Powder Coatings (Wet Paint)
Limited, a company incorporated in England and Wales.

Included in trade debtors is an amount of £70,781 (2011 £113,592) which is factored.

8Transactions with directors

Transactions with directors and officers

Included in creditors are loans from the directors totalling £Nil (2011 £Nil).