Registration number:
Effingham Road Motor Company Limited
for the Year Ended 31 May 2017
Chartered Accountants
68 Queen Street
Sheffield
South Yorkshire
S1 1WR
Effingham Road Motor Company Limited
Contents
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Accountants' Report |
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Balance Sheet |
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Notes to the Financial Statements |
Chartered Accountants' Report to the Director on the Preparation of the Unaudited Statutory Accounts of
Effingham Road Motor Company Limited
for the Year Ended 31 May 2017
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of Effingham Road Motor Company Limited for the year ended 31 May 2017 as set out on pages 2 to 8 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 in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at
http://www.icaew.com/en/members/regulations-standards-and-guidance/.
This report is made solely to the Board of Directors of Effingham Road Motor Company Limited, as a body, in accordance with the terms of our engagement letter. Our work has been undertaken solely to prepare for your approval the accounts of Effingham Road Motor Company Limited and state those matters that we have agreed to state to the Board of Directors of Effingham Road Motor Company 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 Effingham Road Motor Company Limited and its Board of Directors as a body for our work or for this report.
It is your duty to ensure that Effingham Road Motor Company 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 loss of Effingham Road Motor Company Limited. You consider that Effingham Road Motor Company 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 Effingham Road Motor Company 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.
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Chartered Accountants
Sheffield
South Yorkshire
S1 1WR
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Page 1 |
Effingham Road Motor Company Limited
(Registration number: 05447722)
Balance Sheet as at 31 May 2017
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Note |
2017 |
2016 |
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Fixed assets |
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Tangible assets |
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Current assets |
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Stocks |
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Debtors |
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- |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current liabilities |
( |
( |
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Net liabilities |
( |
( |
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Capital and reserves |
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Called up share capital |
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Profit and loss account |
( |
( |
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Total equity |
( |
( |
For the financial year ending 31 May 2017 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Director's responsibilities:
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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.
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Page 2 |
Effingham Road Motor Company Limited
(Registration number: 05447722)
Balance Sheet as at 31 May 2017
Approved and authorised by the
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Director
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Page 3 |
Effingham Road Motor Company Limited
Notes to the Financial Statements for the Year Ended 31 May 2017
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General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
The principal place of business is:
Effingham Road
Sheffield
S9 3QD
These financial statements were authorised for issue by the
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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 presentation and functional currency is considered to be pounds sterling because that is the currency in the primary economic environment in which the company operates.
Going concern
The financial statements have been prepared on a going concern basis.
The company has reported a loss of £4,335 this year (2016: £17,375) and has a deficit in shareholders funds at the year end of £35,730 (2016: £31,395).
The company is operating within its banking facilities and is dependant on its sole director to fund the business for the time being.
The director is confident that trade will improve, as he is now looking at working with low value vehicles on a high volume basis, and as such considers it appropriate to prepare the accounts on a going concern basis.
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Page 4 |
Effingham Road Motor Company Limited
Notes to the Financial Statements for the Year Ended 31 May 2017
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.
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.
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:
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Asset class |
Depreciation method and rate |
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Motor vehicles |
25% reducing balance |
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Plant and machinery |
20% 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.
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Page 5 |
Effingham Road Motor Company Limited
Notes to the Financial Statements for the Year Ended 31 May 2017
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.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
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.
Financial instruments
Classification
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Staff numbers |
The average number of persons employed by the company (including the director) during the year, was
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Page 6 |
Effingham Road Motor Company Limited
Notes to the Financial Statements for the Year Ended 31 May 2017
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Tangible assets |
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Motor vehicles |
Other tangible assets |
Total |
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Cost or valuation |
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At 1 June 2016 |
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- |
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Additions |
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At 31 May 2017 |
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Depreciation |
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At 1 June 2016 |
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- |
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Charge for the year |
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At 31 May 2017 |
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Carrying amount |
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At 31 May 2017 |
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At 31 May 2016 |
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- |
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Stocks |
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2017 |
2016 |
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Other inventories |
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Debtors |
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2017 |
2016 |
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Trade debtors |
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- |
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Other debtors |
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- |
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Total current trade and other debtors |
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- |
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Page 7 |
Effingham Road Motor Company Limited
Notes to the Financial Statements for the Year Ended 31 May 2017
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Creditors |
Creditors: amounts falling due within one year
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Note |
2017 |
2016 |
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Due within one year |
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Trade creditors |
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- |
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Taxation and social security |
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Other creditors |
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Directors Loan |
51,070 |
41,998 |
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Loans and borrowings |
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2017 |
2016 |
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Current loans and borrowings |
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Directors Loan |
51,070 |
41,998 |
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Transition to FRS 102 |
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Page 8 |