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 comprises the invoiced value of goods and services supplied by the
company, net of Value added Tax and trade discounts.

Tangible assets depreciation policy
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at
rates calculated to write off the cost of fixed assets, less their estimated residual
value, over their expected useful lives on the following bases:-

Plant & Machinery 25% reducing balance
Motor Vehicle 25% reducing balance

Other accounting policies
Leasing and hire purchase
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 accounts so
as to produce a constant periodic rate of charge on the net obligation outstanding in
each period.

Operating leases
Rental applicable to operating leases where substantially all of the benefits and risks
of ownership remain with the lessor are charged to profit and loss account as
incurred.
Stocks and work in progress
Stocks and work in progress are valued at the lower of cost and net realisable value
after making due allowance for obsolete and slow moving stocks. Cost includes all
direct costs and an appropriate proporation of fixed and variable overheads.

Research and development
Expenditure on research and development is written off in the year that it is
incurred

Deferred Taxation
Provision is made for taxation deferred as a result of material timing differences
between the incidence of income and expenditure for taxation and accounts
purposes, using the liabilty method, only to the extent that, in the opinion of
directors there is reasonable probability that a liability or asset will crystalise in the
near future.