Company Registration No. SC163377 (Scotland)
TECHDRILL INTERNATIONAL LTD
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
PAGES FOR FILING WITH REGISTRAR
TECHDRILL INTERNATIONAL LTD
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 7
TECHDRILL INTERNATIONAL LTD
BALANCE SHEET
AS AT 31 DECEMBER 2018
31 December 2018
- 1 -
2018
2017
Notes
£
£
£
£
Fixed assets
Intangible assets
3
873,736
982,946
Tangible assets
4
-
343
Investments
5
682
682
874,418
983,971
Current assets
Debtors
6
688,543
543,887
Cash at bank and in hand
2,072
25,588
690,615
569,475
Creditors: amounts falling due within one year
7
(1,102,341)
(932,642)
Net current liabilities
(411,726)
(363,167)
Total assets less current liabilities
462,692
620,804
Capital and reserves
Called up share capital
200,000
200,000
Profit and loss reserves
262,692
420,804
Total equity
462,692
620,804
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 December 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 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.
TECHDRILL INTERNATIONAL LTD
BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2018
31 December 2018
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 18 December 2019 and are signed on its behalf by:
M H DAGET
M H Daget
Director
Company Registration No. SC163377
TECHDRILL INTERNATIONAL LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
- 3 -
1
Accounting policies
Company information
Techdrill International Ltd is a
private
company
limited by shares
incorporated in Scotland.
The registered office is
252 Union Street, Aberdeen, AB10 1TN.
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 net current liabilities of £
true
411,726
(201
7
- £
363,167
). Included within these liabilities
are amounts due to related undertakings of £
681,396
. The financial statements are prepared on a
going concern basis, which assumes that the company will continue to meet its liabilities as they fall
due. The directors have advised that the related undertakings shall not seek repayment of amounts
due to the detriment of other creditors and shall continue to support the company to facilitate its ability
to continue as a going concern for the foreseeable future.
The directors, having made due and careful enquiry, are of the opinion that the
c
ompany has
adequate working capital to execute its operations over the next 12 months. The directors, therefore,
have made an informed judgement, at the time of approving the financial statements, that there is a
reasonable expectation that the
c
ompany has adequate resources to continue in operational
existence for the foreseeable future. As a result, the directors have continued to adopt the going
concern basis of accounting in preparing the annual financial statements.
1.3
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.
Income arising from licence sales is recognised in the period of the sale. Maintenance income is
spread over the period which the agreement covers.
1.4
Intangible fixed assets other than goodwill
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible
assets are measured at cost less any accumulated amortisation and any accumulated impairment
losses.
All intangible assets are considered to have a finite useful life.
1.5
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.
TECHDRILL INTERNATIONAL LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2018
1
Accounting policies
(Continued)
- 4 -
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:
Fixtures and fittings
20% straight line
Office equipment
33% straight line
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
.
1.6
Fixed asset investments
Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
The investments are assessed for impairment at each reporting date
and
any
impairment
losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company
. Control is
the power to govern the financial and operating policies of
the
entity so as to obtain benefits from its activities.
1.7
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.
1.8
Financial instruments
The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade debtors and creditors. These are measured at amortised cost and are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of comprehensive income.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
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.
TECHDRILL INTERNATIONAL LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2018
1
Accounting policies
(Continued)
- 5 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.10
Retirement benefits
The company operates a defined contribution plan for it's employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations. The contributions are recognised as an expense in the Statement of comprehensive income when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the company in independently administered funds.
1.11
Leases
Rentals payable under operating leases,
including
any lease incentives received, are charged to
profit or loss
on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease
s
asset are consumed.
1.12
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 are included in the profit and loss account for the period.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 4 (2017 - 4
).
TECHDRILL INTERNATIONAL LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2018
- 6 -
3
Intangible fixed assets
Trademarks
Research & development costs
Intellectual property rights
Total
£
£
£
£
Cost
At 1 January 2018 and 31 December 2018
42,000
263,869
2,884,224
3,190,093
Amortisation and impairment
At 1 January 2018
42,000
263,869
1,901,278
2,207,147
Amortisation charged for the year
-
-
109,210
109,210
At 31 December 2018
42,000
263,869
2,010,488
2,316,357
Carrying amount
At 31 December 2018
-
-
873,736
873,736
At 31 December 2017
-
-
982,946
982,946
4
Tangible fixed assets
Fixtures and fittings
Office equipment
Total
£
£
£
Cost
At 1 January 2018 and 31 December 2018
15,784
83,753
99,537
Depreciation and impairment
At 1 January 2018
15,784
83,410
99,194
Depreciation charged in the year
-
343
343
At 31 December 2018
15,784
83,753
99,537
Carrying amount
At 31 December 2018
-
-
-
At 31 December 2017
-
343
343
5
Fixed asset investments
2018
2017
£
£
Investments
682
682
TECHDRILL INTERNATIONAL LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2018
5
Fixed asset investments
(Continued)
- 7 -
Movements in fixed asset investments
Shares in group undertakings
£
Cost or valuation
At 1 January 2018 & 31 December 2018
682
Carrying amount
At 31 December 2018
682
At 31 December 2017
682
6
Debtors
2018
2017
Amounts falling due within one year:
£
£
Trade debtors
59,946
62,928
Corporation tax recoverable
-
27,369
Other debtors
610,665
452,014
Prepayments and accrued income
17,932
1,576
688,543
543,887
7
Creditors: amounts falling due within one year
2018
2017
£
£
Bank loans and overdrafts
10,222
-
Trade creditors
74,564
1,744
Amounts owed to group undertakings
681,396
712,526
Taxation and social security
1,929
1,963
Other creditors
128,211
70,525
Accruals and deferred income
206,019
145,884
1,102,341
932,642
8
Related party transactions
During the year, the company made advances to the directors of £
117,720. The company also received credits of £1,504
which resulted in amounts due
to the company at the year end of £
454,616
(201
7
- £
338,400
). The company also has amounts due to
group undertakings at the year end of £
681,396
(201
7
- £
712,526
). The loans are unsecured and interest
free with no fixed repayment terms in place.