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STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
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FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021 |
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ASHVIN METALS LTD |
REGISTERED NUMBER:
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STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
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FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021 |
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FOR |
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ASHVIN METALS LTD |
ASHVIN METALS LTD (REGISTERED NUMBER: 07723962) |
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CONTENTS OF THE FINANCIAL STATEMENTS |
for the year ended 30 September 2021 |
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Company Information | 1 |
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Strategic Report | 2 |
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Report of the Directors | 4 |
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Report of the Independent Auditors | 6 |
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Income Statement | 9 |
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Other Comprehensive Income | 10 |
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Balance Sheet | 11 |
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Statement of Changes in Equity | 12 |
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Cash Flow Statement | 13 |
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Notes to the Cash Flow Statement | 14 |
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Notes to the Financial Statements | 15 |
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ASHVIN METALS LTD |
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COMPANY INFORMATION |
for the year ended 30 September 2021 |
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DIRECTORS: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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AUDITORS: |
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Statutory Auditors |
17 St Peters Place |
Fleetwood |
Lancashire |
FY7 6EB |
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BANKERS: |
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1 Churchill Place |
London |
E14 5HP |
ASHVIN METALS LTD (REGISTERED NUMBER: 07723962) |
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STRATEGIC REPORT |
for the year ended 30 September 2021 |
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The directors present their strategic report for the year ended 30 September 2021. |
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REVIEW OF BUSINESS |
The Year ended 30 September 2021 has seen Ashvin Metals Limited trading activity grow substantially as UK metal recycling industry recovers from the uncertainty of the previous 18 months. |
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Turnover for the Year to 30 September 2021 was £65.66 million (18 months to 30 September 2020 - £53.77 million) reflecting an 83.2% increase in sales on a pro-rata basis. This increase in Turnover has occurred due to a combination a significant rise in LME metal prices in the Year together with increased volumes of material traded. The official LME copper price climbed from $6,405/MT on 2 October 2020 to a high of $10,734/MT on 10 May 2021 as the demand for Copper from the Far East continued. Demand for other non-ferrous metals continued to recover in the same manner. |
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Development of the business continued with an increase employee headcount to 25 (September 2020 - 20 employees) and further Capital Expenditure of £322,643 to upgrade machinery and vehicles. |
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Gross Profit for the Year to 30 September 2021 was £4.67 million (18 Months to 30 September 2020 - £4.29 million) increased 63.3% on a pro-rata basis. Gross Profit Margin fell slightly from 7.98% to 7.11% as volumes of metal handled increased passing metal price increases to suppliers and hedging losses were incurred as market prices fluctuated. |
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Operating profit for the Year to 30 September 2021 was £2.48 million (18 Months to 30 September 2020 - £1.92 million) reflecting a 93.9% increase on a pro-rata basis for the period. This is a result of overheads being controlled with only staff costs being variable with the remaining overheads being relatively fixed so the increase in trading activity has a direct impact on the bottom line. |
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Administrative expenses if £2.21 million (18 months to 30 September 2020 - £2.50 million) reflect a 32.6% increase on a pro-rata basis for the period. The largest increase in administration expenses were as a result of increased employee costs from higher staff headcount and motor and travelling costs as a result of starting to transport goods using the Company's own transport. Again, there were no bad debts in the year. |
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ASHVIN METALS LTD (REGISTERED NUMBER: 07723962) |
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STRATEGIC REPORT |
for the year ended 30 September 2021 |
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PRINCIPAL RISKS AND UNCERTAINTIES |
The directors of the Company face a number of business risks and uncertainties when operating the Company. The main risks of the business are as follows. |
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Exposure to Commodity Price Movements - As the price of non-ferrous scrap metal is directly linked to metal prices quoted on the London Metal Exchange (LME), the Company is exposed to the risk of price fluctuation. Worldwide metal markets have been affected by macro-economic factors. |
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The directors have operated within the metals sector for a number of years and constantly monitor market prices to ensure any price movements are reflected accordingly. The directors do not speculate on the movement of market prices. |
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Metals Price Movements - As metal prices are linked to the LME, the Company is exposed to metals price movements for stock held and future sales orders obtained. To mitigate this, the directors use a hedging facility to cover large fluctuations in metal prices. The directors do not use the facility to speculate on market price movements. |
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Credit Risk- The directors have insured the Company's trade debtor balances during the year to mitigate the risk of bad debt. The directors obtain an approved level of credit from the insurance underwriter and where possible attempt to trade within these limits. Trading with customers above their insured limit must be approved by the directors of Ashvin Metals Ltd. |
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Foreign Currency Risk - With the Company's growth strategy being implemented and the level of export sales trading in Euros and US Dollar currencies has increased. To mitigate currency fluctuations, the Company hedges its foreign currency sales using forward rates obtained for the date of receipt of monies from customers. Exchange rates differences are not significant. |
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Industry Related Regulations - The directors of Ashvin Metals Ltd ensure the company complies with all scrap and waste sector regulations and legislation maintaining all relevant licences and permits. |
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Ashvin Metals Ltd works in the recycling industry, which is seen as a critical sector, the Company has been allowed to continue trading through lockdown periods. The Company is following all Government guidelines in respect of the COVID-19 pandemic, including social distancing in the workplace. |
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The directors believe that the Company's working capital and cash management should ensure that it is well placed to survive the crisis. |
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KEY PERFORMANCE INDICATORS |
The directors monitor volumes of scrap metal traded, monthly sales levels and gross profit on a monthly basis. Working capital availability is monitored to manage the business on a daily basis. |
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ON BEHALF OF THE BOARD: |
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ASHVIN METALS LTD (REGISTERED NUMBER: 07723962) |
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REPORT OF THE DIRECTORS |
for the year ended 30 September 2021 |
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The directors present their report with the financial statements of the company for the year ended 30 September 2021. |
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PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of non-ferrous metal traders. |
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DIVIDENDS |
No dividends will be distributed for the period ended 30 September 2020 |
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FUTURE DEVELOPMENTS |
The directors aim to increase the trading volumes of non-ferrous metals and improve the efficiencies within the business. They are aware of the competitive business environment that the Company operates in and continue to explore new opportunities to enhance the financial position of the Company. The Company is in a strong financial position and controls the business to mitigate its exposure to operational risks. |
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DIRECTORS |
The directors shown below have held office during the whole of the period from 1 October 2020 to the date of this report. |
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Other changes in directors holding office are as follows: |
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STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
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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: |
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- | 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. |
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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. |
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STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
ASHVIN METALS LTD (REGISTERED NUMBER: 07723962) |
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REPORT OF THE DIRECTORS |
for the year ended 30 September 2021 |
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AUDITORS |
The auditors, Jones Harris Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
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ON BEHALF OF THE BOARD: |
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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ASHVIN METALS LTD |
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Opinion |
We have audited the financial statements of Ashvin Metals Ltd (the 'company') for the year ended 30 September 2021 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of 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). |
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In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 30 September 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. |
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Basis for opinion |
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 Auditors' 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. |
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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. |
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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. |
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Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
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Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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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. |
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In connection with our audit of the financial statements, 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 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. |
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Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ASHVIN METALS LTD |
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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 identified material misstatements in the Strategic Report or the Report of the Directors. |
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We have nothing to report in respect of the following matters where 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 directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
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Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
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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. |
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Auditors' 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 a Report of the Auditors 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. |
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The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
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Based on our understanding of the entity and the industry in which it operates we identified principal risks of non-compliance with laws and regulations related to Health and Safety, and various regulations which apply to scrap yards. We considered the extent to which non-compliance with these laws and regulations might have a material effect on the financial statements. We also considered the Companies Act 2006 as this has a direct impact on the financial statements. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of override of controls, and determined that the principal risks were related to the posting of inappropriate journals and manipulation of accounting estimates in order to impact profitability. Significant accounting estimates which could give rise to management bias including the valuation of work done receivable. |
Audit procedures performed in order to mitigate the risks highlighted include the following: |
- Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulation and fraud. |
- Evaluation and testing of the operating effectiveness of the management's controls designed to prevent and detect irregularities. |
- Reviewing key correspondence with regulatory authorities in relation to compliance with relevant regulations. |
- Challenging assumptions and judgements made by the management as well as explanations given. |
- Identifying and testing journal entries, in particular those posted with unusual account combinations. |
There are limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment. |
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A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ASHVIN METALS LTD |
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Use of our 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 a Report of the Auditors 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. |
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for and on behalf of
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Statutory Auditors |
17 St Peters Place |
Fleetwood |
Lancashire |
FY7 6EB |
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ASHVIN METALS LTD (REGISTERED NUMBER: 07723962) |
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INCOME STATEMENT |
for the year ended 30 September 2021 |
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period |
1/4/19 |
year ended | to |
30/9/21 | 30/9/20 |
Notes | £ | £ |
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REVENUE | 3 |
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Cost of sales |
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GROSS PROFIT |
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Administrative expenses |
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2,461,896 | 1,792,843 |
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Other operating income |
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OPERATING PROFIT | 5 |
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Interest payable and similar expenses | 6 |
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PROFIT BEFORE TAXATION |
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Tax on profit | 7 |
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PROFIT FOR THE FINANCIAL YEAR |
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ASHVIN METALS LTD (REGISTERED NUMBER: 07723962) |
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OTHER COMPREHENSIVE INCOME |
for the year ended 30 September 2021 |
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period |
1/4/19 |
year ended | to |
30/9/21 | 30/9/20 |
Notes | £ | £ |
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PROFIT FOR THE YEAR |
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OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR |
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ASHVIN METALS LTD (REGISTERED NUMBER: 07723962) |
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BALANCE SHEET |
30 September 2021 |
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2021 | 2020 |
Notes | £ | £ |
FIXED ASSETS |
Property, plant and equipment | 8 |
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CURRENT ASSETS |
Inventories | 9 |
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Debtors | 10 |
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Cash at bank |
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CREDITORS |
Amounts falling due within one year | 11 | ( |
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NET CURRENT ASSETS |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
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CREDITORS |
Amounts falling due after more than one year | 12 | ( |
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PROVISIONS FOR LIABILITIES | 16 | ( |
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NET ASSETS |
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CAPITAL AND RESERVES |
Called up share capital | 17 |
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Retained earnings | 18 |
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SHAREHOLDERS' FUNDS |
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The financial statements were approved by the Board of Directors and authorised for issue on
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ASHVIN METALS LTD (REGISTERED NUMBER: 07723962) |
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STATEMENT OF CHANGES IN EQUITY |
for the year ended 30 September 2021 |
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Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
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Balance at 1 April 2019 |
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Changes in equity |
Total comprehensive income | - |
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Balance at 30 September 2020 |
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Changes in equity |
Total comprehensive income | - |
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Balance at 30 September 2021 |
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ASHVIN METALS LTD (REGISTERED NUMBER: 07723962) |
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CASH FLOW STATEMENT |
for the year ended 30 September 2021 |
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period |
1/4/19 |
year ended | to |
30/9/21 | 30/9/20 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
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Interest paid | ( |
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Interest element of hire purchase payments paid |
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Finance costs paid | (465 | ) | - |
Tax paid | ( |
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Net cash from operating activities | ( |
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Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
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Sale of tangible fixed assets |
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Net cash from investing activities | ( |
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Cash flows from financing activities |
New loans in year |
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Loan repayments in year |
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Capital repayments in year | ( |
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Amount introduced by directors | 110,088 | 624,001 |
Amount withdrawn by directors | (110,708 | ) | (1,766,455 | ) |
Net cash from financing activities |
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( |
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Increase in cash and cash equivalents |
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Cash and cash equivalents at beginning of
year |
2 |
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542,555 |
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Cash and cash equivalents at end of year | 2 | 1,063,568 | 1,018,071 |
ASHVIN METALS LTD (REGISTERED NUMBER: 07723962) |
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NOTES TO THE CASH FLOW STATEMENT |
for the year ended 30 September 2021 |
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1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
period |
1/4/19 |
year ended | to |
30/9/21 | 30/9/20 |
£ | £ |
Profit before taxation |
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Depreciation charges |
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Loss on disposal of fixed assets |
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Finance costs | 12,465 | 57,335 |
2,741,834 | 2,275,930 |
(Increase)/decrease in inventories | ( |
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(Increase)/decrease in trade and other debtors | ( |
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Increase/(decrease) in trade and other creditors |
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Cash generated from operations |
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2. | CASH AND CASH EQUIVALENTS |
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The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
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Year ended 30 September 2021 |
30/9/21 | 1/10/20 |
£ | £ |
Cash and cash equivalents | 1,063,568 | 1,018,071 |
Period ended 30 September 2020 |
30/9/20 | 1/4/19 |
£ | £ |
Cash and cash equivalents | 1,018,071 | 542,555 |
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3. | ANALYSIS OF CHANGES IN NET FUNDS |
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At 1/10/20 | Cash flow | At 30/9/21 |
£ | £ | £ |
Net cash |
Cash at bank | 1,018,071 | 45,497 | 1,063,568 |
1,018,071 |
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1,063,568 |
Debt |
Finance leases | (66,862 | ) | 38,316 | (28,546 | ) |
Debts falling due after 1 year | (100,000 | ) | (450,000 | ) | (550,000 | ) |
(166,862 | ) | (411,684 | ) | (578,546 | ) |
Total | 851,209 | (366,187 | ) | 485,022 |
ASHVIN METALS LTD (REGISTERED NUMBER: 07723962) |
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NOTES TO THE FINANCIAL STATEMENTS |
for the year ended 30 September 2021 |
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1. | STATUTORY INFORMATION |
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Ashvin Metals Ltd is a
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The presentation currency of the financial statements is the Pound Sterling (£). |
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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Revenue recognition |
Revenue is the amount derived from ordinary activities, and is measured at the fair value of the consideration received or receivable. Revenue is reduced for estimated customer returns, rebates and other similar allowances, and is stated net of VAT. |
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Revenue from the sale of non-ferrous metals is recognised when all the following conditions are satisfied: |
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- the company has transferred to the buyer the significant risks and rewards of ownership of the goods; |
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- the company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; |
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- the amount of revenue can be measured reliably; |
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- it is probable that the economic benefits associated with the transaction will flow to the Company; and |
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- the costs incurred or to be incurred in respect of the transaction can be measured reliably. |
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Specifically, revenue from the sale of goods is recognised when goods are delivered and legal title is passed. |
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Tangible fixed assets |
Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses. Such cost includes costs directly attributable to making the asset capable of operating as intended. Depreciation is provided on all property, plant and equipment, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life. The carrying values of tangible fixed assets are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable. |
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Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter. |
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Short leasehold | Over the period of the lease |
Plant and machinery | 20% on reducing balance and 10% on reducing balance |
Fixtures and fittings | 20% on reducing balance |
Motor vehicles | 20% on reducing balance |
ASHVIN METALS LTD (REGISTERED NUMBER: 07723962) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 30 September 2021 |
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2. | ACCOUNTING POLICIES - continued |
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Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
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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 stocks recognised as an expense in the period in which the reversal occurs. |
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Financial instruments |
Trade and other debtors that are receivable within one year and do not constitute a financing transaction are recorded at the undiscounted amount expected to be received, net of impairment. Those that are receivable after more than one year or constitute a financing transaction are recorded initially at fair value less transaction costs and subsequently at amortised cost, net of impairment. |
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Cash and cash equivalents comprise cash at bank and on hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. In the statement of financial position, bank overdrafts are shown within borrowings or current liabilities. |
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Trade and other creditors are initially recognised at the transaction price and are therefore stated at amortised cost using the effective interest method unless the discounting would be immaterial, in which case they are stated at cost. |
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Interest bearing borrowings are recognised initially at fair value less attributable transaction costs. Subsequent to initial recognition, interest-bearing borrowings are stated at amortised cost with any difference between the amount initially recognised and redemption value being recognised in the statement of comprehensive income over the period of the borrowings, together with any interest and fees payable, using the effective interest rate method. |
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The company uses forward contracts to reduce exposure to price rate changes of non-ferrous metals. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit and loss. The company does not currently apply hedge accounting for any derivatives. |
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Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
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Current or deferred taxation assets and liabilities are not discounted. |
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Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
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Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
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Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
|
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
ASHVIN METALS LTD (REGISTERED NUMBER: 07723962) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 30 September 2021 |
|
2. | ACCOUNTING POLICIES - continued |
|
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
|
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
|
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
|
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease |
|
Pension costs and other post-retirement benefits |
The Company operates defined contribution pension schemes for employees and directors. Contributions payable to the company's pension schemes are charged to profit or loss in the period to which they relate |
|
Short term debtors and creditors receivable |
Short term debtors and creditors with no stated interest rate are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account. |
|
Grants |
During the year the company received government support in the form of the Coronavirus Job Retention Scheme. These have been recognised under the accruals model and included within the statement of comprehensive income. |
|
3. | REVENUE |
|
The revenue and profit before taxation are attributable to the one principal activity of the company. |
|
An analysis of revenue by geographical market is given below: |
|
period |
1/4/19 |
year ended | to |
30/9/21 | 30/9/20 |
£ | £ |
United Kingdom |
|
|
Rest of world | 12,596,440 | 13,449,738 |
|
|
|
4. | EMPLOYEES AND DIRECTORS |
ASHVIN METALS LTD (REGISTERED NUMBER: 07723962) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 30 September 2021 |
|
2021 | 2020 |
£ | £ |
Wages and salaries | 1,197,646 | 1,237,215 |
Social security costs | 133,998 | 129,480 |
Other pension costs | 59,826 | 77,195 |
1,391,470 | 1,443,890 |
|
The average number of employees during the year was as follows: |
|
2021 | 2020 |
|
Administration | 12 | 10 |
Yard management | 13 | 10 |
25 | 20 |
|
2021 | 2020 |
£ | £ |
Directors' remuneration | 185,167 | 272,500 |
|
185,167 | 272,500 |
|
|
2021 | 2020 |
£ | £ |
Directors pension contributions to money purchase schemes | 45,000 | 57,500 |
|
45,000 | 57,500 |
|
|
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 2 | 2 |
|
ASHVIN METALS LTD (REGISTERED NUMBER: 07723962) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 30 September 2021 |
|
5. | OPERATING PROFIT |
|
The operating profit is stated after charging/(crediting): |
|
period |
1/4/19 |
year ended | to |
30/9/21 | 30/9/20 |
£ | £ |
Depreciation - owned assets |
|
|
Depreciation - assets on hire purchase contracts |
|
|
Loss on disposal of fixed assets |
|
|
Auditors' remuneration |
|
|
Auditors' remuneration for non audit work |
|
|
Foreign exchange differences | ( |
) | ( |
) |
|
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
period |
1/4/19 |
year ended | to |
30/9/21 | 30/9/20 |
£ | £ |
Hire purchase |
|
|
Other loan interest |
|
|
Other interest payable |
|
|
|
|
|
7. | TAXATION |
|
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
period |
1/4/19 |
year ended | to |
30/9/21 | 30/9/20 |
£ | £ |
Current tax: |
UK corporation tax |
|
|
|
Deferred tax |
|
|
Tax on profit |
|
|
ASHVIN METALS LTD (REGISTERED NUMBER: 07723962) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 30 September 2021 |
|
7. | TAXATION - continued |
|
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
|
period |
1/4/19 |
year ended | to |
30/9/21 | 30/9/20 |
£ | £ |
Profit before tax |
|
|
Profit multiplied by the standard rate of corporation tax in the UK of
|
|
|
|
Effects of: |
Expenses not deductible for tax purposes | ( |
) |
|
Capital allowances in excess of depreciation | ( |
) | ( |
) |
Deferred tax | 98,997 | 42,527 |
Total tax charge | 543,603 | 365,998 |
|
8. | PROPERTY, PLANT AND EQUIPMENT |
Fixtures |
Short | Plant and | and | Motor |
leasehold | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 October 2020 |
|
|
|
|
|
Additions |
|
|
|
|
|
Disposals |
|
( |
) |
|
|
( |
) |
At 30 September 2021 |
|
|
|
|
|
DEPRECIATION |
At 1 October 2020 |
|
|
|
|
|
Charge for year |
|
|
|
|
|
Eliminated on disposal |
|
( |
) |
|
|
( |
) |
At 30 September 2021 |
|
|
|
|
|
NET BOOK VALUE |
At 30 September 2021 |
|
|
|
|
|
At 30 September 2020 |
|
|
|
|
|
ASHVIN METALS LTD (REGISTERED NUMBER: 07723962) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 30 September 2021 |
|
8. | PROPERTY, PLANT AND EQUIPMENT - continued |
|
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and |
machinery |
£ |
COST |
At 1 October 2020 |
|
Transfer to ownership | (28,000 | ) |
At 30 September 2021 |
|
DEPRECIATION |
At 1 October 2020 |
|
Charge for year |
|
Transfer to ownership | (15,098 | ) |
At 30 September 2021 |
|
NET BOOK VALUE |
At 30 September 2021 |
|
At 30 September 2020 |
|
|
9. | INVENTORIES |
2021 | 2020 |
£ | £ |
Stocks |
|
|
|
10. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2021 | 2020 |
£ | £ |
Trade debtors |
|
|
Other debtors |
|
|
VAT |
|
|
Prepayments |
|
|
|
|
ASHVIN METALS LTD (REGISTERED NUMBER: 07723962) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 30 September 2021 |
|
11. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2021 | 2020 |
£ | £ |
Hire purchase contracts (see note 14) |
|
|
Trade creditors |
|
|
Corporation tax |
|
|
Social security and other taxes |
|
|
VAT | - | 59,812 |
Other creditors |
|
|
Directors' current accounts | 10 | 630 |
Accruals and deferred income |
|
|
|
|
|
12. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2021 | 2020 |
£ | £ |
Loan from related party (see note 13) |
|
|
Hire purchase contracts (see note 14) |
|
|
|
|
|
13. | LOANS |
|
The related party loan was provided by Mr B and Mrs M Dixon, parents of one of the directors. The loan is unsecured and interest only.. Interest is charged at 4% per annum. |
|
14. | LEASING AGREEMENTS |
|
Minimum lease payments fall due as follows: |
|
Hire purchase contracts |
2021 | 2020 |
£ | £ |
Net obligations repayable: |
Within one year |
|
|
Between one and five years |
|
|
|
|
|
Non-cancellable operating | leases |
2021 | 2020 |
£ | £ |
Within one year |
|
|
Between one and five years |
|
|
|
|
|
Lease payments recognised as an expense are £62,600 (2020: £92,850). |
ASHVIN METALS LTD (REGISTERED NUMBER: 07723962) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 30 September 2021 |
|
15. | SECURED DEBTS |
|
The following secured debts are included within creditors: |
|
2021 | 2020 |
£ | £ |
Hire purchase | 28,546 | 66,863 |
|
The hire purchase contract loans are secured by charges on the assets to which they relate. |
|
16. | PROVISIONS FOR LIABILITIES |
|
Finance bill 2022 provisions to increase the main rate of UK corporation tax from 1st April 2023. As substantive enactment had occurred before the balance sheet date, deferred tax balances as at year ending 30th September 2021 have been updated to be measured at a rate of 25% (2020: 19%). |
|
17. | CALLED UP SHARE CAPITAL |
|
|
|
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2021 | 2020 |
value: | £ | £ |
|
Ordinary A | 1 | 1,020 | 1,020 |
|
Ordinary B | 1 | 980 | 980 |
2,000 | 2,000 |
|
The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the Company. All ordinary shares rank equally with regard to the Company's residual assets. |
|
Called-up share capital represents the nominal value of shares that have been issued. |
|
18. | RESERVES |
Retained |
earnings |
£ |
|
At 1 October 2020 |
|
Profit for the year |
|
At 30 September 2021 |
|
ASHVIN METALS LTD (REGISTERED NUMBER: 07723962) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 30 September 2021 |
|
19. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
|
The following advances and credits to a director subsisted during the year ended 30 September 2021 and the period ended 30 September 2020: |
|
2021 | 2020 |
£ | £ |
|
Balance outstanding at start of year |
|
|
Amounts advanced |
|
|
Amounts repaid | ( |
) | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
|
|
|
20. | RELATED PARTY DISCLOSURES |
|
|
2021 | 2020 |
£ | £ |
Movement on directors loan accounts | 620 | 1,142,454 |
Amount due to related party |
|
|
|
|
2021 | 2020 |
£ | £ |
Sales |
|
|
Purchases |
|
|
Amount due from related party |
|
|
|
Mr B & Mrs M Dixon |
2021 | 2020 |
£ | £ |
Loan facility from Mr & Mrs Dixon | 550,000 | 300,000 |
(Parents of one of the directors) |
Interest paid to Mr & Mrs Dixon | 12,000 | 30,000 |
|
The loan is unsecured and is due after more than one year. Interest on the facility is charged at 4% per annum. |
|
Pension Fund |
2021 | 2020 |
£ | £ |
Rent paid to pension fund | 50,000 | 75,000 |