Company registration number 01947688 (England and Wales)
ROLSON TOOLS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
ROLSON TOOLS LIMITED
COMPANY INFORMATION
Directors
Mr S K Rajput
Mrs U Rajput
Secretary
Mrs U Rajput
Company number
01947688
Registered office
Rolson House
London Road
Ruscombe
TWYFORD
RG10 9HZ
Auditor
Craufurd Hale Audit Services Limited
C/O Craufurd Hale Group
Ground Floor, Arena Court
Crown Lane
MAIDENHEAD
SL6 8QZ
Business address
Rolson House
London Road
Ruscombe
TWYFORD
RG10 9HZ
ROLSON TOOLS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of income and retained earnings
7
Balance sheet
8
Statement of cash flows
9
Notes to the financial statements
10 - 21
ROLSON TOOLS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 1 -
The directors present the strategic report for the year ended 31 December 2021.
Fair review of the business
The directors are satisfied with the company's performance during the year and are of the opinion that the company has continued to respond well to the principal risk of the ongoing economic difficulties facing parts of the world.
The directors are of the opinion that the company, having responded well to the economic recession, has now been able to take advantage of the economic recovery being experienced in many countries. However, the recovery is fragile and the challenges posed by a further economic recession continue to be the major risk and uncertainty facing the company.
Principal risks and uncertainties
The company has a credit risk if its major customers default on paying invoices and fail. This is mitigated by diligent credit control.
There is an exchange rate risk because a significant proportion of the company's purchases and sales are made in US Dollars or Euros. However, to some extent these offset one another.
Development and performance
The financial performance of the company is as disclosed on the statement of income and retained earnings. the financial position of the company at 31 December 2021 is as disclosed on the balance sheet.
Key performance indicators
The gross profit percentage has increased to 26% compared with 25% in 2020.
Mr S K Rajput
Director
16 December 2022
ROLSON TOOLS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 2 -
The directors present their annual report and financial statements for the year ended 31 December 2021.
Principal activities
The principal activity of the company continued to be that of selling hand and power tools.
Branches
There are no overseas branches.
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £380,000. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr S K Rajput
Mrs U Rajput
Future developments
The directors are not aware at the date of signing this report of any likely changes to the principal activities over the next reporting period.
Auditor
The auditor, Craufurd Hale Audit Services Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
-
select suitable accounting policies and then apply them consistently;
-
make judgements and accounting estimates that are reasonable and prudent;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s
auditor
is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s
auditor
is aware of that information.
ROLSON TOOLS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 3 -
On behalf of the board
Mr S K Rajput
Director
16 December 2022
ROLSON TOOLS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ROLSON TOOLS LIMITED
- 4 -
Opinion
We have audited the financial statements of Rolson Tools Limited (the 'company') for the year ended 31 December 2021 which comprise the statement of income and retained earnings, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies.
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102
The Financial Reporting Standard applicable in the UK and Republic of Ireland
(United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
-
give a true and fair view of the state of the company's affairs as at 31 December 2021 and of its profit for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the
Auditor's
responsibilities for the audit of the
financial statements
section of our report. We are independent of the
company
in accordance with the ethical requirements that are relevant to our audit of the
financial statements
in the UK, including the FRC’s Ethical Standard
, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit
:
-
the information given in the strategic report and the directors'
r
eport for the financial year for which the financial statements are prepared is consistent with the financial statements
; and
-
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
ROLSON TOOLS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ROLSON TOOLS LIMITED
- 5 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie
d
material misstatements in the strategic report or the directors'
r
eport
.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
-
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
-
the financial statements are not in agreement with the accounting records and returns; or
-
certain disclosures of
remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors'
r
esponsibilities
s
tatement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of
financial statements
that are free from material misstatement, whether due to fraud or error. In preparing the
financial statements
, the
directors are
responsible for assessing the company
'
s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have
no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the
financial statements
as a whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor's
report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with
ISAs (UK)
will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these
financial statements
.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below
.
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including non-compliance with laws and regulations, was as follows:
-
the engagement director ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
-
we identified the laws and regulations applicable to the company through discussions with management, and from our commercial knowledge and experience;
-
we focussed on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery and employment legislation;
-
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal fee expenditure; and
-
identified laws and regulations were communicated within the audit team and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
-
Making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
-
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
ROLSON TOOLS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ROLSON TOOLS LIMITED
- 6 -
To address the risk of fraud through management bias and override of controls, we:
-
performed analytical procedures to identify any unusual or unexpected relationships;
-
tested journal entries to identify unusual transactions;
-
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
-
investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
-
agreeing financial statements disclosures to underlying supporting documentation;
-
reading the minutes of meetings of those charged with governance; and
-
enquiring of management as to actual and potential litigation and claims.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of management and inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Christopher Krol FCA
Senior Statutory Auditor
For and on behalf of Craufurd Hale Audit Services Limited
16 December 2022
Chartered Accountants
Statutory Auditor
C/O Craufurd Hale Group
Ground Floor, Arena Court
Crown Lane
MAIDENHEAD
SL6 8QZ
ROLSON TOOLS LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 7 -
2021
2020
Notes
£
£
Turnover
3
19,467,978
17,374,322
Cost of sales
(14,311,657)
(13,115,226)
Gross profit
5,156,321
4,259,096
Distribution costs
(451,578)
(517,806)
Administrative expenses
(2,556,869)
(2,372,254)
Other operating income
48,970
Operating profit
4
2,147,874
1,418,006
Interest receivable and similar income
7
187
4,403
Interest payable and similar expenses
8
(2,978)
(9,063)
Profit before taxation
2,145,083
1,413,346
Tax on profit
9
(411,000)
(276,511)
Profit for the financial year
1,734,083
1,136,835
Retained earnings brought forward
3,747,487
2,790,652
Dividends
10
(380,000)
(180,000)
Retained earnings carried forward
5,101,570
3,747,487
The profit and loss account has been prepared on the basis that all operations are continuing operations.
ROLSON TOOLS LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2021
31 December 2021
- 8 -
2021
2020
Notes
£
£
£
£
Fixed assets
Tangible assets
11
139,876
165,248
Current assets
Stocks
12
4,134,933
2,650,651
Debtors
13
4,812,096
4,845,210
Cash at bank and in hand
1,058,635
1,390,486
10,005,664
8,886,347
Creditors: amounts falling due within one year
14
(5,043,870)
(5,297,772)
Net current assets
4,961,794
3,588,575
Total assets less current liabilities
5,101,670
3,753,823
Creditors: amounts falling due after more than one year
15
(6,236)
Net assets
5,101,670
3,747,587
Capital and reserves
Called up share capital
19
100
100
Profit and loss reserves
5,101,570
3,747,487
Total equity
5,101,670
3,747,587
The financial statements were approved by the board of directors and authorised for issue on 16 December 2022 and are signed on its behalf by:
Mr S K Rajput
Director
Company Registration No. 01947688
ROLSON TOOLS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 9 -
2021
2020
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
519,263
1,625,357
Interest paid
(2,978)
(9,063)
Income taxes paid
(275,200)
(36,971)
Net cash inflow from operating activities
241,085
1,579,323
Investing activities
Purchase of tangible fixed assets
(50,306)
Proceeds from disposal of tangible fixed assets
29,800
Interest received
187
4,403
Net cash (used in)/generated from investing activities
(20,319)
4,403
Financing activities
Payment of finance leases obligations
(17,903)
(32,925)
Dividends paid
(380,000)
(180,000)
Net cash used in financing activities
(397,903)
(212,925)
Net (decrease)/increase in cash and cash equivalents
(177,137)
1,370,801
Cash and cash equivalents at beginning of year
1,235,772
(135,029)
Cash and cash equivalents at end of year
1,058,635
1,235,772
Relating to:
Cash at bank and in hand
1,058,635
1,390,486
Bank overdrafts included in creditors payable within one year
(154,714)
ROLSON TOOLS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 10 -
1
Accounting policies
Company information
Rolson Tools Limited is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
Rolson House, London Road, Ruscombe, TWYFORD, RG10 9HZ.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
A
true
t the time of approving the financial statements
,
t
he directors have a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future. Thus
t
he directors continue to adopt the going concern basis of accounting in preparing the financial statements.
COVID-19 is not expected to have a significant impact on the entity. Management has determined that there is no material uncertainty that casts doubt on the entity's ability to continue as a going concern. It expects that COVID-19 will have some impact, though not significant, for example greater lead times from suppliers worldwide.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods provided in the normal course of business
, and
is shown net of VAT
.
The fair value of consideration takes into account trade discounts
and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer
(usually on dispatch of the goods)
, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost
less
depreciation.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
Equal instalments over 20 years
Fixtures, fittings & equipment
20% per annum of the net book value
Motor vehicles
25% per annum of the net book value
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
.
ROLSON TOOLS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 11 -
1.5
Stocks
Stocks
are stated at the lower of cost and
estimated selling price less costs
of sale if material. Adjustments are made as necessary to write-down damaged and obsolete stock.
Cost is calculated using the average method.
At each reporting date, an assessment is made for 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 or loss. Reversals of impairment losses are also recognised in profit or loss.
1.6
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include deposits held at banks and bank overdrafts.
Bank overdrafts are shown within borrowings in current liabilities.
1.7
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Basic financial assets
Basic financial assets, which include
debtors
and cash and bank balances, are measured at transaction price including transaction costs.
Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets are measured at fair value, which is normally the transaction price.
Any c
hanges in fair value are recognised in
profit
or
loss
.
Impairment of financial assets
Financial assets are assessed for indicators of impairment at each reporting end date.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including
creditors,
are recognised at transaction price.
Financial liabilities classified as payable within one year are not amortised.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current.
Trade creditors
are recognised
at transaction price.
ROLSON TOOLS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 12 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts,
are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are
s
ubsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in
profit
or
loss
in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as
being measured at
fair value th
r
ough profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations
expire or are discharged or cancelled.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.9
Taxation
The tax expense represents the sum of the tax currently payable.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the
profit and loss account
because it excludes items of income or expense that are taxable or deductible in other years
or
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 reporting end date.
1.10
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense
.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
Leases
Leases are classified 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 classified as operating leases.
Assets held under finance leases are recognised as assets at the assets
'
fair
value at the date of inception. 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 profit and loss account on a striaght line basis as the amounts are not material.
1.13
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grants will be received.
ROLSON TOOLS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 13 -
1.14
Foreign exchange
Transactions in currencies other than
pounds sterling
are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation
in the period
are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2021
2020
£
£
Turnover analysed by class of business
Sale of tools and other items
19,467,978
17,374,322
2021
2020
£
£
Turnover analysed by geographical market
United Kingdom and British Isles
18,263,793
16,101,108
Rest of Europe
922,876
824,417
Rest of World
281,309
448,797
19,467,978
17,374,322
2021
2020
£
£
Other revenue
Interest income
187
4,403
Grants received
48,970
ROLSON TOOLS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 14 -
4
Operating profit
2021
2020
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
(10,993)
(68,633)
Government grants
(48,970)
Fees payable to the company's auditor for the audit of the company's financial statements
12,000
12,000
Depreciation of owned tangible fixed assets
42,610
32,122
Depreciation of tangible fixed assets held under finance leases
-
15,394
Loss on disposal of tangible fixed assets
3,268
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Management and administration
15
11
Sales
3
3
Warehouse
22
14
Total
40
28
Their aggregate remuneration comprised:
2021
2020
£
£
Wages and salaries
1,283,263
1,161,481
Social security costs
154,995
140,368
Pension costs
21,020
17,455
1,459,278
1,319,304
6
Directors' remuneration
2021
2020
£
£
Remuneration for qualifying services
238,134
230,340
ROLSON TOOLS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
6
Directors' remuneration
(Continued)
- 15 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2021
2020
£
£
Remuneration for qualifying services
129,829
129,849
7
Interest receivable and similar income
2021
2020
£
£
Interest income
Interest on bank deposits
187
4,403
Investment income includes the following:
Interest on financial assets
187
4,403
8
Interest payable and similar expenses
2021
2020
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
693
4,686
Other finance costs:
Interest on finance leases and hire purchase contracts
2,285
4,377
2,978
9,063
9
Taxation
2021
2020
£
£
Current tax
UK corporation tax on profits for the current period
411,000
276,511
ROLSON TOOLS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
9
Taxation
(Continued)
- 16 -
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2021
2020
£
£
Profit before taxation
2,145,083
1,413,346
Expected tax charge based on the standard rate of corporation tax in the UK of 019% (2020: 19.00%)
407,566
268,536
Tax effect of expenses that are not deductible in determining taxable profit
225
36
Depreciation on assets not qualifying for tax allowances
8,096
9,028
Capital allowances
(6,416)
(2,404)
Over provision in the current year
908
4
Over provision in prior years
1,311
Tax on sale of fixed assets
621
Taxation charge for the year
411,000
276,511
10
Dividends
2021
2020
£
£
Interim paid
380,000
180,000
ROLSON TOOLS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 17 -
11
Tangible fixed assets
Leasehold improvements
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 January 2021
105,629
645,385
193,435
944,449
Additions
16,806
33,500
50,306
Disposals
(52,989)
(52,989)
At 31 December 2021
105,629
662,191
173,946
941,766
Depreciation and impairment
At 1 January 2021
77,203
554,594
147,404
779,201
Depreciation charged in the year
9,475
21,519
11,616
42,610
Eliminated in respect of disposals
(19,921)
(19,921)
At 31 December 2021
86,678
576,113
139,099
801,890
Carrying amount
At 31 December 2021
18,951
86,078
34,847
139,876
At 31 December 2020
28,426
90,791
46,031
165,248
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2021
2020
£
£
Fixtures, fittings & equipment
12,800
22,606
Motor vehicles
29,232
12,800
51,838
12
Stocks
2021
2020
£
£
Goods for resale
4,134,933
2,650,651
ROLSON TOOLS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 18 -
13
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
4,661,859
4,693,512
Other debtors
19,062
22,371
Prepayments and accrued income
131,175
129,327
4,812,096
4,845,210
14
Creditors: amounts falling due within one year
2021
2020
Notes
£
£
Bank loans and overdrafts
16
154,714
Obligations under finance leases
17
6,236
17,903
Trade creditors
3,385,362
3,892,933
Corporation tax
411,000
275,200
Other taxation and social security
435,175
72,864
Other creditors
769,760
846,194
Accruals and deferred income
36,337
37,964
5,043,870
5,297,772
The directors consider that the carrying amount of trade payables approximates to their fair value.
Fixed and floating charges over the undertaking and all property and assets, present and future, including goodwill, bookdebts, uncalled capital, buildings, fixtures, fixed plant and machinery is in place regarding the £520,992 (2020: £559,374) invoice discounting balance.
15
Creditors: amounts falling due after more than one year
2021
2020
Notes
£
£
Obligations under finance leases
17
6,236
16
Loans and overdrafts
2021
2020
£
£
Bank overdrafts
154,714
Payable within one year
154,714
The overdraft is secured by a debenture over all assets of the company and a third party guarantee for £676,000.
ROLSON TOOLS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
16
Loans and overdrafts
(Continued)
- 19 -
17
Finance lease obligations
2021
2020
Future minimum lease payments due under finance leases:
£
£
Within one year
6,236
17,903
In two to five years
6,236
6,236
24,139
Hire purchase payments represent amounts payable by the company for certain motor vehicles and plant and machinery. Hire purchase include purchase options at the end of the agreement period, and no restrictions are placed on the use of the assets. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent payments.
18
Retirement benefit schemes
2021
2020
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
21,020
17,455
The company operates a defined contribution pension scheme for all qualifying employees.
The assets of the scheme are held separately from those of the company in an independently administered fund.
19
Share capital
2021
2020
2021
2020
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
The company has one class of ordinary shares which carry no right to fixed income
ROLSON TOOLS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 20 -
20
Financial commitments, guarantees and contingent liabilities
A debenture is in place with the company's bankers, with a fixed and floating charge over the undertaking and all property and assets, present and future, including goodwill, uncalled capital, buildings, fixtures, plant and machinery, relating to all monies due, or to become due, from the company to the chargee on any account whatsoever.
A mortgage debenture is in place with the company's bankers, with a specific equitable charge over all freehold and leasehold properties and/or the proceeds of sale thereof and fixed and floating charges over the undertaking and all property and assets, present and future, including goodwill, bookdebts and the benefits of any licences relating to all monies due, or to become due, from the chargee on any account whatsoever.
A fixed and floating charge is in place with the discounting provider, with a fixed and floating charge over the undertaking and all property and assets present and future, including goodwill, bookdebts, uncalled capital, buildings, fixtures, fixed plant and machinery relating to all monies due, or to become due, from the company to the chargee under the terms of the instrument creating, or evidencing, the charge.
A guarantee of £1,264,000 is in place with the directors and close family bankers via a debenture with the company.
21
Related party transactions
Purchases from Rolson India, a company controlled by the company director and shareholder, totalled £1,300,234 (2020: £654,803) with amounts payable totalling £0 (2020: £126,945) included in creditors.
Sales to Sachshal Limited, a company with directors and shareholders in common, totalled £270,487 (2020: £235,847) with amounts receivable totalling £8,390 (2020: £13,249) included in debtors.
Remuneration was paid to the directors son and daughter during the year totalling £143,943 (2020: £146,217).
22
Directors' transactions
Dividends totalling £380,000 (2020: £180,000) were paid in the year in respect of shares held by the company's directors.
The directors' loan account was not overdrawn in the year.
Rent payable under tenancies at will to directors totalled £464,239 (2020: £492,798).
23
Ultimate controlling party
Throughout the current and previous year the company was controlled by Mr S K Rajput and Mrs U Rajput, company directors, by virtue of owning 100% of the issued ordinary share capital.
ROLSON TOOLS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 21 -
24
Cash generated from operations
2021
2020
£
£
Profit for the year after tax
1,734,083
1,136,835
Adjustments for:
Taxation charged
411,000
276,511
Finance costs
2,978
9,063
Investment income
(187)
(4,403)
Loss on disposal of tangible fixed assets
3,268
Depreciation and impairment of tangible fixed assets
42,610
47,516
Movements in working capital:
(Increase)/decrease in stocks
(1,484,282)
1,031,671
Decrease/(increase) in debtors
33,114
(793,223)
Decrease in creditors
(223,321)
(78,613)
Cash generated from operations
519,263
1,625,357
25
Analysis of changes in net funds
1 January 2021
Cash flows
31 December 2021
£
£
£
Cash at bank and in hand
1,390,486
(331,851)
1,058,635
Bank overdrafts
(154,714)
154,714
1,235,772
(177,137)
1,058,635
Obligations under finance leases
(24,139)
17,903
(6,236)
1,211,633
(159,234)
1,052,399
2021-12-31
2021-01-01
false
CCH Software
CCH Accounts Production 2022.300
Mr S K Rajput
Mrs U Rajput
Mrs U Rajput
01947688
2021-01-01
2021-12-31
01947688
bus:Director1
2021-01-01
2021-12-31
01947688
bus:CompanySecretaryDirector1
2021-01-01
2021-12-31
01947688
bus:CompanySecretary1
2021-01-01
2021-12-31
01947688
bus:Director2
2021-01-01
2021-12-31
01947688
bus:RegisteredOffice
2021-01-01
2021-12-31
01947688
2021-12-31
01947688
2020-01-01
2020-12-31
01947688
core:RetainedEarningsAccumulatedLosses
2020-12-31
01947688
core:RetainedEarningsAccumulatedLosses
2019-12-31
01947688
core:ShareCapital
2021-12-31
01947688
core:ShareCapital
2020-12-31
01947688
core:RetainedEarningsAccumulatedLosses
2021-12-31
01947688
core:RetainedEarningsAccumulatedLosses
2020-12-31
01947688
2020-12-31
01947688
core:RetainedEarningsAccumulatedLosses
2020-01-01
2020-12-31
01947688
core:LandBuildings
core:LeasedAssetsHeldAsLessee
2021-12-31
01947688
core:FurnitureFittings
2021-12-31
01947688
core:MotorVehicles
2021-12-31
01947688
core:LandBuildings
core:LeasedAssetsHeldAsLessee
2020-12-31
01947688
core:FurnitureFittings
2020-12-31
01947688
core:MotorVehicles
2020-12-31
01947688
core:CurrentFinancialInstruments
core:WithinOneYear
2021-12-31
01947688
core:CurrentFinancialInstruments
core:WithinOneYear
2020-12-31
01947688
core:Non-currentFinancialInstruments
core:AfterOneYear
2021-12-31
01947688
core:Non-currentFinancialInstruments
core:AfterOneYear
2020-12-31
01947688
core:CurrentFinancialInstruments
2021-12-31
01947688
core:CurrentFinancialInstruments
2020-12-31
01947688
2020-12-31
01947688
2019-12-31
01947688
core:WithinOneYear
2021-12-31
01947688
core:WithinOneYear
2020-12-31
01947688
core:LandBuildings
core:LeasedAssetsHeldAsLessee
2021-01-01
2021-12-31
01947688
core:FurnitureFittings
2021-01-01
2021-12-31
01947688
core:MotorVehicles
2021-01-01
2021-12-31
01947688
core:UKTax
2021-01-01
2021-12-31
01947688
core:UKTax
2020-01-01
2020-12-31
01947688
1
2021-01-01
2021-12-31
01947688
1
2020-01-01
2020-12-31
01947688
2
2021-01-01
2021-12-31
01947688
2
2020-01-01
2020-12-31
01947688
3
2021-01-01
2021-12-31
01947688
3
2020-01-01
2020-12-31
01947688
4
2021-01-01
2021-12-31
01947688
4
2020-01-01
2020-12-31
01947688
5
2021-01-01
2021-12-31
01947688
5
2020-01-01
2020-12-31
01947688
core:LandBuildings
core:LeasedAssetsHeldAsLessee
2020-12-31
01947688
core:FurnitureFittings
2020-12-31
01947688
core:MotorVehicles
2020-12-31
01947688
core:Non-currentFinancialInstruments
2021-12-31
01947688
core:Non-currentFinancialInstruments
2020-12-31
01947688
core:BetweenTwoFiveYears
2021-12-31
01947688
core:BetweenTwoFiveYears
2020-12-31
01947688
bus:PrivateLimitedCompanyLtd
2021-01-01
2021-12-31
01947688
bus:FRS102
2021-01-01
2021-12-31
01947688
bus:Audited
2021-01-01
2021-12-31
01947688
bus:FullAccounts
2021-01-01
2021-12-31
xbrli:pure
xbrli:shares
iso4217:GBP