Company Registration No. SC061711 (Scotland)
MACIAIN LTD.
UNAUDITED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 OCTOBER 2018
PAGES FOR FILING WITH REGISTRAR
MACIAIN LTD.
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 6
MACIAIN LTD.
BALANCE SHEET
AS AT 31 OCTOBER 2018
31 October 2018
- 1 -
2018
2017
Notes
£
£
£
£
Fixed assets
Tangible assets
4
82,622
161,578
Current assets
Stocks
1,000
2,000
Debtors
5
180,723
3,751
Cash at bank and in hand
1,970
1,000
183,693
6,751
Creditors: amounts falling due within one year
6
(2,167,652)
(2,133,963)
Net current liabilities
(1,983,959)
(2,127,212)
Total assets less current liabilities
(1,901,337)
(1,965,634)
Capital and reserves
Called up share capital
7
57,450
57,450
Profit and loss reserves
(1,958,787)
(2,023,084)
Total equity
(1,901,337)
(1,965,634)
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 period ended 31 October 2018 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 period 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.
The financial statements were approved by the board of directors and authorised for issue on 17 September 2020 and are signed on its behalf by:
Raghnall MacIain
Director
Company Registration No. SC061711
MACIAIN LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 OCTOBER 2018
- 2 -
1
Accounting policies
Company information
MacIain Ltd.
(SC061711),
is a
private
company
limited by shares
incorporated in Scotland.
The registered office is
Cnoc-An-Locha, Sollas, NORTH UIST, HS6 5BU.
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 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. The principal accounting policies adopted are set out below.
1.2
Going concern
The company has recorded a gross loss in the financial period and has net liabilities of £1,901,337 at the period-end. The company has been meeting its day to day working capital requirements mainly through funding provided from the directors. The directors have confirmed that they will not seek repayment of the balance due to them of £1,514,102 for a period of at least 12 months from the date of approval of these financial statements, and until the company is in a position to make these repayments. Furthermore, the MacIain Partnership has confirmed that it will not seek repayment of the balance due to it of £618,462 for a period of at least 12 months from the date of approval of these financial statements, and until the company is in a position to make these repayments.
The directors continue to adopt the going concern basis of accounting in preparing the financial statements. At the date of approving the financial statements, the directors continue to closely monitor the constantly changing risk of the global COVID-19 pandemic. The potential impact will depend on the length of the UK outbreak and whilst the company’s activity levels have been low during the pandemic, the directors have a reasonable expectation that there are sufficient opportunities for continued trade in the area for the company to continue in operational existence for the foreseeable future.
It is recognised that the ability of the company to continue as a going concern is dependent in the short-term on the on-going financial support from the directors. The directors are confident that funds will be made available to allow the company to meet its liabilities as they fall due. For these reasons, the directors continue to adopt the going concern basis in preparing the financial statements.
1.3
Reporting period
These represent an 18 month reporting period to the 31 October 2018. The comparative figures represent a 12 month accounting period and for this reason the comparative figures are not comparable.
1.4
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
.
1.5
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
MACIAIN LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2018
1
Accounting policies
(Continued)
- 3 -
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Buildings
2% straight line
Plant and machinery
10% - 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 the profit and loss account.
1.6
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).
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.
1.8
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash in hand
.
1.9
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.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs 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 value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
Impairment of financial assets
Financial assets, other than those
held
at
fair value through profit and loss
, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.
If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in the profit and loss account.
MACIAIN LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2018
1
Accounting policies
(Continued)
- 4 -
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when
the company
transfers the financial asset and substantially all the risks and rewards of ownership to another entity
.
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans
and overdrafts
, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
payments
discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
1.10
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.
1.11
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.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
2
Exceptional costs/(income)
2018
2017
£
£
Related party loan provision
(1,151,226)
362,592
Profit/(loss) on disposal of operations
963,100
-
During the period, the company was issued 955,989,000 ordinary shares at par value of £0.001 each
in
Uist Asco Limited (SC426050). The consideration payable to Uist Asco Limited in respect of these shares was set against the loan owed to the company by Uist Asco Limited.
Subsequently, the company sold these shares to Acadian Seaplants Limited, a company registered in Canada, for £1
.
At the end of the period, the net amount owed to the company by Uist Asco Limited was £178,512 (2017 – £1,128,371 (£181,371 net of
bad debt
provision)).
3
Employees
The average monthly number of persons (including directors) employed by the company during the period was 6 (2017 - 6).
MACIAIN LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2018
- 5 -
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 May 2017
374,117
1,500,223
1,874,340
Additions
-
12,165
12,165
Disposals
(374,117)
-
(374,117)
At 31 October 2018
-
1,512,388
1,512,388
Depreciation and impairment
At 1 May 2017
304,002
1,408,760
1,712,762
Depreciation charged in the period
-
21,006
21,006
Eliminated in respect of disposals
(304,002)
-
(304,002)
At 31 October 2018
-
1,429,766
1,429,766
Carrying amount
At 31 October 2018
-
82,622
82,622
At 30 April 2017
70,115
91,463
161,578
5
Debtors
2018
2017
Amounts falling due within one year:
£
£
Trade debtors
2,209
2,209
Other debtors
178,514
1,542
180,723
3,751
6
Creditors: amounts falling due within one year
2018
2017
£
£
Bank overdrafts
-
2,540
Trade creditors
-
3,970
Other taxation and social security
491
1,000
Other creditors
2,167,161
2,126,453
2,167,652
2,133,963
The bank overdraft is secured by way of a floating charge over the company's assets.
MACIAIN LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2018
- 6 -
7
Called up share capital
2018
2017
£
£
Ordinary share capital
Issued and fully paid
42,450 Ordinary shares of £1 each
42,450
42,450
42,450
42,450
Preference share capital
Issued and fully paid
15,000 10% Non Redeemable Cumulative Preference shares of £1 each
15,000
15,000
15,000
15,000
8
Events after the reporting date
The risks attached to the emergence of the Covid-19 pandemic subsequent to the period end continue to be monitored and action taken wherever possible.
9
Related party transactions
Transactions with related parties
The following amounts were outstanding at the reporting end date:
2018
2017
Amounts due to related parties
£
£
Entities with control, joint control or significant influence over the company
618,462
583,421
Key management personnel
1,514,102
1,513,888
These loans are unsecured, interest free and have no fixed terms of repayment. Not withstanding this, these loans are not to be repaid within a period of at least 12 months or until the company has sufficient funds to do so.