Company Registration No. 04509347 (England and Wales)
Alroy Carpets Limited
Unaudited Financial Statements
For the year ended 31 July 2020
Pages for filing with registrar
Alroy Carpets Limited
Contents
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 7
Alroy Carpets Limited
Balance Sheet
As at 31 July 2020
- 1 -
2020
2019
Notes
£
£
£
£
Fixed assets
Tangible assets
3
12,275
16,367
Current assets
Stocks
2,000
2,000
Debtors
4
27,248
33,061
Cash at bank and in hand
149,768
33,804
179,016
68,865
Creditors: amounts falling due within one year
5
(190,095)
(78,005)
Net current liabilities
(11,079)
(9,140)
Total assets less current liabilities
1,196
7,227
Creditors: amounts falling due after more than one year
6
(855)
(5,832)
Net assets
341
1,395
Capital and reserves
Called up share capital
4
4
Profit and loss reserves
337
1,391
Total equity
341
1,395
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial year ended 31 July 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
T
he members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476
.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
Alroy Carpets Limited
Balance Sheet (Continued)
As at 31 July 2020
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 20 April 2021 and are signed on its behalf by:
Ms M C Greener
Mr A Robinson
Director
Director
Company Registration No. 04509347
Alroy Carpets Limited
Notes to the Financial Statements
For the year ended 31 July 2020
- 3 -
1
Accounting policies
Company information
Alroy Carpets Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Pendragon House, 65 London Road, St Albans, Hertfordshire, AL1 1LJ. The principal address of the company is Springtime Nurseries, Cattlegate Road, Crews Hill, Enfield, EN2 9EE.
1.1
Accounting convention
These financial statements have been prepared in accordance with Section 1A of FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business
, and
is shown net of VAT and other sales related taxes
.
The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
1.3
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
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:
Plant and machinery
25% Reducing Balance
Fixtures and fittings
25% Reducing Balance
Equipment
25% Reducing Balance
Motor vehicles
25% Reducing Balance
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
.
1.4
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
Alroy Carpets Limited
Notes to the Financial Statements (Continued)
For the year ended 31 July 2020
1
Accounting policies
(Continued)
- 4 -
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the
in
prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.5
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises 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.
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 cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, 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
and
Section 12
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 initially measured at transaction price and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present
fair
value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities
Basic financial liabilities, which include trade and other payables and bank loans, are initially measured at transaction price
and are subsequently carried at amortised cost using the effective interest method
unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the
present
fair
value of the future receipts discounted at a market rate of interest
.
Alroy Carpets Limited
Notes to the Financial Statements (Continued)
For the year ended 31 July 2020
1
Accounting policies
(Continued)
- 5 -
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction 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 and it further excludes 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, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
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 lower of the assets fair
value at the date of inception and the 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 profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
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 grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met
. Where a
grant does not specify performance conditions
it
is recognised in income when the proceeds are received or receivable
. A grant received before the recognition criteria are satisfied is recognised as a liability.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2020
2019
Number
Number
Total
4
5
Alroy Carpets Limited
Notes to the Financial Statements (Continued)
For the year ended 31 July 2020
- 6 -
3
Tangible fixed assets
Plant and machinery
Fixtures and fittings
Equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 August 2019 and 31 July 2020
1,565
6,137
2,014
29,610
39,326
Depreciation and impairment
At 1 August 2019
163
4,541
972
17,283
22,959
Depreciation charged in the year
350
399
261
3,082
4,092
At 31 July 2020
513
4,940
1,233
20,365
27,051
Carrying amount
At 31 July 2020
1,052
1,197
781
9,245
12,275
At 31 July 2019
1,402
1,596
1,042
12,327
16,367
4
Debtors
2020
2019
Amounts falling due within one year:
£
£
Trade debtors
1,210
12,386
Other debtors
26,038
20,675
27,248
33,061
5
Creditors: amounts falling due within one year
2020
2019
£
£
Trade creditors
60,465
40,396
Taxation and social security
24,706
31,170
Other creditors
104,924
6,439
190,095
78,005
6
Creditors: amounts falling due after more than one year
2020
2019
£
£
Other creditors
855
5,832
Alroy Carpets Limited
Notes to the Financial Statements (Continued)
For the year ended 31 July 2020
- 7 -
7
Directors' transactions
Advances or credits have been granted by the company to its directors as follows:
Description
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
Ms M C Greener -
(282)
8,624
-
8,342
Mr A Robinson -
8,754
-
(503)
8,251
8,472
8,624
(503)
16,593