R.E.B. WELDING LIMITED
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Notes to the Accounts |
for the year ended 31 March 2021
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1 |
Accounting policies |
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Basis of preparation |
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The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard) and the requirements of the Companies House Act 2006 as applicable to companies subject to the small companies regime.
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The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial sttatements are rounded to the nearest £. |
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Going concern |
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These financial statements are prepared on the going concern basis. Compared to the previous years, the directors feel more confident with the positive trading results and have an improved expectation that the company will continue as a going concern for the foreseeable future. The directors have given their assurances that they will continue to provide support to the company to allow it to continue in operational existence for the foreseeable future. In view of this the directors have a reasonable expectation that the financial statements should be prepared on a going concern basis. |
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Turnover |
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Turnover includes revenue earned for services in relation to welding and fabrication, net of VAT. |
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Revenue from contracts for the provision of the professional services is recognised by reference to the stage of completion; when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a promotion of total costs. Where the outcome cannot be estimated reliably, revenue is recognized only to the extent of the expenses recognised that it is probable will be recovered. |
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Tangible fixed assets |
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Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows:
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Freehold buildings |
non depreciable |
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Leasehold land and buildings |
non depreciable |
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Plant and machinery |
20% reducing balance |
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Fixtures, fittings, tools and equipment |
20% reducing balance |
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Motor vehicles |
25% reducing balance |
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The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss. |
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Stocks |
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Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost compromises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
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At each reporting date, an assessment is made of impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit and loss. Reversals of impairment losses are also recognised in profit or loss. |
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Taxation |
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The company has elected to apply the provesions of Section 11 "Basic Financial Instruments" and Section 12 "Other Financial Instruments Issues" of FRS 102 to all of its financial instruments.
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Financial instruments |
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Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument. |
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Financial assets and liabilities are offset with the net amounts presented in the fianncial statements, when there is a legally enforceable right to set off recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
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Basic financial assets |
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Basic financial assets, which include debtors and cash and bank balances, are initialy measured at transaction price including transaction cost and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a dinancing transaction, where the transaction is measured at the present value of th efuture receipts discounted at a market rate of interest. Financial assets clasified a receivable within one year are not amortised.
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Imairement of financial assets |
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Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairement at each reporting end date.
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Financial assets are impaired where there is objective evidence that, as a result of one or more events that accured after the initial recognition of the financial asset, the estimated future cash flows have been aftected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairement loss is recognised in profit or loss. |
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If there is a decrease in the impairment loss arising from an event occuring after the impairement was recognised, th eimpairement is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had th eimpairement not previously been recognised. the impairment reversal is recognised in profit or loss. |
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Derecognition of financial assets |
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Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained, but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party. |
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Clasification of financial liabilities |
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Financial liabilities and equity instruments are clasified according to the substance of the contractual arrangements enetered into. An equity instrument in any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. |
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Basic financial liabilities |
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Basic financial liabilities, including creditors, are intially recognised at transaction price. Financial liabilities classified as payable within one year are not amortised. |
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Trade creditors are obligations to pay fo goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are calssified as current liabilities if payment is due within one year or less. If not, they are represented as non-current liabilities. trade creditors are recognised initially at transcation price and subsequently measured at amortised cost using the effective interest method. |
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Derecognition of financial liabilities |
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Financial liablities are derecognised when the ocmpany's contractual obligations expire or are discharged or cancelled. |
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Equity instruments |
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Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. |
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Employee benefits |
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The cost of short term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock. |
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Pensions |
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Contributions to defined contribution plans are expensed in the period to which they relate.
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Leases |
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Leases are clasified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are clasified as operating leases. |
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Assets held unde finance leases are recognised as assets at the lower of assets fair value at the date of inception and present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to the porfit an dloss account so as to produce a constant periodic rate of interest on teh remaining balance of liability. |
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2 |
Employees |
2021 |
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2020 |
Number |
Number |
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Average number of persons employed by the company |
8 |
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8 |
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3 |
Tangible fixed assets |
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Land and buildings |
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Plant and machinery etc |
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Motor vehicles |
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Total |
£ |
£ |
£ |
£ |
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Cost |
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At 1 April 2020 |
21,989 |
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160,246 |
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28,045 |
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210,280 |
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Disposals |
(12,000) |
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- |
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- |
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(12,000) |
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At 31 March 2021 |
9,989 |
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160,246 |
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28,045 |
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198,280 |
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Depreciation |
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At 1 April 2020 |
21,989 |
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159,051 |
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26,091 |
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207,131 |
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Charge for the year |
- |
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239 |
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488 |
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727 |
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On disposals |
(12,000) |
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- |
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- |
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(12,000) |
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At 31 March 2021 |
9,989 |
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159,290 |
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26,579 |
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195,858 |
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Net book value |
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At 31 March 2021 |
- |
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956 |
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1,466 |
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2,422 |
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At 31 March 2020 |
- |
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1,195 |
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1,954 |
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3,149 |
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4 |
Debtors |
2021 |
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2020 |
£ |
£ |
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Trade debtors |
115,128 |
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142,251 |
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Other debtors |
97 |
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1,639 |
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115,225 |
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143,890 |
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5 |
Creditors: amounts falling due within one year |
2021 |
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2020 |
£ |
£ |
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Accruals and differed income |
3,500 |
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3,000 |
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Bank loans and overdrafts |
- |
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21,529 |
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Trade creditors |
44,872 |
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54,116 |
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Amounts owed |
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- |
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11,395 |
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Taxation and social security costs |
71,899 |
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42,556 |
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Other creditors |
10,009 |
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43,049 |
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130,280 |
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175,645 |
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6 |
Other information |
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At the reporting period the company owed the directors £4,377.00 (2020: £13,420.00). The amount is interest free and repayble upon demand. |
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R.E.B. WELDING LIMITED is a private company limited by shares and incorporated in England. Its registered office is: |
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Globe Works |
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Rectory Road |
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Grays |
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Essex |
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RM17 6ST |