Aaran Sheet Metal Limited Accounts






Aaran Sheet Metal Limited
	Company No. 03951807
		Information for Filing with The Registrar
		31 December 2016

The Director presents his report and the accounts for the year ended 31 December 2016.

Principal activities
The principal activity of the company during the year under review was manufacture of metal structures and parts of structures.




Director

The Director who served at any time during the year was as follows:

J. Parkinson



































































The above report has been prepared in accordance with the provisions applicable to companies subject to the small companies regime as set out in Part 15 of the Companies Act 2006.

Signed on behalf of the board

J. Parkinson
Director
04 August 2017

at	31 December 2016

Company No.		03951807	Notes	2016	2015
				£	£
Fixed assets
	Intangible assets		2	-	-
	Tangible assets		3	40,451	28,142


				40,451	28,142
Current assets
	Stocks		4	38,000	40,650
	Debtors		5	309,984	497,716

	Cash at bank and in hand			249,297	105,871
				597,281	644,237
Creditors: Amount falling due within one year			6	(98,526)	(95,182)
Net current assets				498,755	549,055
Total assets less current liabilities				539,206	577,197




Net assets				539,206	577,197

Capital and reserves
	Called up share capital			10,000	10,000



	Profit and loss account		7	529,206	567,197

Total equity				539,206	577,197


These accounts have been prepared in accordance with the special provisions applicable to companies subject to the small companies regime of the Companies Act 2006.
For the year ended 31 December 2016 the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies.
The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.

As permitted by section 444 (5A)of the Companies Act 2006 the directors have not delivered to the Registrar a copy of the company's profit and loss account.

Approved by the board on 04 August 2017

And signed on its behalf by:

J. Parkinson
Director
04 August 2017

for the year ended 31 December 2016

Accounting policies

Basis of preparation

The accounts have been prepared in accordance with FRS 102 - The Financial Reporting Standard applicable in the UK and Republic of Ireland and the Companies Act 2006. There were no material departures from that standard.

The accounts have been prepared under the historical cost convention as modified by the revaluation of certain fixed assets and in accordance with the accounting policies set out below.

Turnover

Turnover is measured at the fair value of the consideration received or receivable. Turnover is reduced for estimated customer returns, rebates and other similar allowances.
Revenue from the sale of goods is recognised when all the following conditions are satisfied:
• the Company has transferred to the buyer the significant risks and rewards of ownership of the
goods;
• the Company retains neither continuing managerial involvement to the degree usually associated
with ownership nor effective control over the goods sold;
• the amount of revenue can be measured reliably;
• it is probable that the economic benefits associated with the transaction will flow to the Company;
and
• the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Specifically, revenue from the sale of goods is recognised when goods are delivered and legal title is passed.

Intangible fixed assets

Intangible fixed assets are carried at cost less accumulated amortisation and impairment losses.

Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the profit and loss account because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible timing differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

Current or deferred tax for the year is recognised in profit or loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax is also recognised in other comprehensive income or directly in equity respectively.

Tangible fixed assets and depreciation

Tangible fixed assets held for the company's own use are stated at cost less accumulated depreciation and accumulated impairment losses.

At each balance sheet date, the company reviews the carrying amount of its tangible fixed assets to determine whether there is any indication that any items have suffered an impairment loss. If any such indication exists, the recoverable amount of an asset is estimated in order to determine the extent of the impairment loss.

Depreciation is provided at the following annual rates in order to write off the cost or valuation less the estimated residual value of each asset over its estimated useful life:

Plant and machinery

25% Reducing Balance

Motor vehicles

25% Reducing Balance

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Costs, which comprise direct production costs, are based on the method most appropriate to the type of inventory class, but usually on a first-in-first-out basis. Overheads are charged to profit or loss as incurred. Net realisable value is based on the estimated selling price less any estimated completion or selling costs.

When stocks are sold, the carrying amount of those stocks is recognised as an expense in the period in which the related revenue is recognised. The amount of any write-down of stocks to net realisable value and all losses of stocks are recognised as an expense in the period in which the write-down or loss occurs. The amount of any reversal of any write-down of stocks is recognised as a reduction in the amount of inventories recognised as an expense in the period in which the reversal occurs.

Trade and other debtors

Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method, less impairment losses for bad and doubtful debts.

Trade and other creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Leased assets

Where the company enters into a lease which entails taking substantially all the risks and rewards of ownership of an asset, the lease is treated as a finance lease.
Leases which do not transfer substantially all the risks and rewards of ownership to the Company are classified as operating leases.
Assets held under finance leases are initially recognised as assets of the Company at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the balance sheet date as a finance lease obligation. Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance expenses are recognised immediately in profit or loss, unless they are directly attributable to qualifying assets, in which case they are capitalised in accordance with the Company's policy on borrowing costs (see the accounting policy above).
Assets held under finance leases are depreciated in the same way as owned assets.

Operating lease payments are recognised as an expense on a straight-line basis over the lease term.

In the event that lease incentives are received to enter into operating leases, such incentives are recognised as a liability. The aggregate benefit of incentives is recognised as a reduction of rental expense on a straight-line basis.

2	Intangible fixed assets
			Goodwill	Total
			£	£
		Cost
		At 1 January 2016	90,000	90,000


		At 31 December 2016	90,000	90,000
		Amortisation and impairment
		At 1 January 2016	90,000	90,000



		At 31 December 2016	90,000	90,000
		Net book values
		At 31 December 2016	-	-
		At 31 December 2015	-	-

3	Tangible fixed assets
			Plant and machinery	Motor vehicles	Total
			£	£	£
		Cost or revaluation
		At 1 January 2016	88,268	71,844	160,112
		Additions	-	38,250	38,250


		Disposals	-	(45,339)	(45,339)
		At 31 December 2016	88,268	64,755	153,023
		Depreciation
		At 1 January 2016	75,613	56,357	131,970
		Charge for the year	3,164	10,320	13,484


		Disposals	-	(32,882)	(32,882)
		At 31 December 2016	78,777	33,795	112,572
		Net book values
		At 31 December 2016	9,491	30,960	40,451
		At 31 December 2015	12,655	15,487	28,142

4	Stocks
			2016	2015
			£	£
		Raw materials and consumables	38,000	40,650


			38,000	40,650

5	Debtors
			2016	2015
			£	£
		Trade debtors	106,208	137,716





		Other debtors	203,375	360,000
		Prepayments and accrued income	401	-
			309,984	497,716

6	Creditors:
		amounts falling due within one year
			2016	2015
			£	£




		Trade creditors	8,970	16,392

		Corporation tax	34,925	37,696
		Other taxes and social security	52,766	23,597
		Loans from directors	-	3,766
		Other creditors	1,865	13,731

			98,526	95,182

Reserves

Profit and loss account - includes all current and prior period retained profits and losses.

8	Dividends
			2016	2015
			£	£
		Dividends for the period:
		Dividends paid in the period	190,000	70,000

			190,000	70,000

		Dividends by type:

		Equity dividends	190,000	70,000
			190,000	70,000

9	Advances and credits to directors
		Included within Other debtors are the following loans to directors:

		Director	Description	At 1 January 2016	Advanced	Repaid	At 31 December 2016
				£	£	£	£
		J. Parkinson	Overdrawn loan account	360,000	-	(156,625)	203,375







































				360,000	-	(156,625)	203,375

Related party disclosures

Name of related party

Mr J Parkinson

Description of relationship between the parties

Director with overdrawn loan account

Description of transaction and general amounts involved

The balance on the loan account as at 31 December 2016 amounted to £203,375 (2015 - £360,000). Interest is charged on the loan at 3% per annum on the amount outstanding at the year-end. The loan is repayable on demand and disclosed within Other debtors in the Balance Sheet.

Controlling party

Immediate controlling party

The company is equally controlled by Mr J & Mrs D Parkinson.

Additional information

Its registered number is:

03951807

Its registered office is:

Unit 6 Crossley Hall Works

York Street

Fairweather Green

Bradford

BD8 0HR