Registered Number |
Schweizer Electronic Limited | ||
Independent Auditor's Report | ||
To The Members of Schweizer Electronic Limited | ||
Opinion |
We have audited the financial statements of Schweizer Electronic Limited (the 'company') for the year ended 31 December 2022 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity 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 2022 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. |
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 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. | ||
Other information | ||
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 the audit: | ||
● | the information given in the strategic report and the directors' report 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. |
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 directors' report. 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 directors' 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' responsibilities statement, 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 accounts | ||
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. | ||
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below. | ||
Extent to which the audit was considered capable of detecting irregularities, including fraud | ||
We obtained an understanding of the legal and regulatory frameworks within which the company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context relating to the reporting framework (The Companies Act 2006) and relevant taxation compliance regulations. | ||
In addition, we also concluded that there are certain significant laws and regulations which may have an effect on the determination of the amounts and disclosures in the financial statements, being those laws relating to general health and safety, data protection and GDPR guidelines. | ||
We understood how the company is complying with these frameworks and regulations by making enquiries of management and those responsible for compliance and corroborated these enquiries with reviews of board minutes and any available correspondence with legal advisors. | ||
We assessed that there were risks of material impact on the financial statements from irregularities, including fraud from the overide of controls by management, timing and recognising of income and in the manipulation of the company's key performance indicators to meet targets. | ||
Audit response to risks identified | ||
We carried out procedures to respond to these risks, including enquiries of management about their systems and controls to identify these risks of irregularities, testwork to review a sample of journal entries made during the year, reviewing and testing assumptions made on accounting estimates for management biases and testing the timing and recognition of revenue. | ||
Our audit procedures were designed to respond to risks of material misstatements in the financial statements, recognising that 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 more sophisticated acts, including concealment, collusion or deliberately failing to record transactions through intentional misrepresentation. | ||
There are inherent limitations within an audit, even though it has been properly planned and carried out in accordance with auditing standards and we cannot be responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations. | ||
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. | ||
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 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. |
Accountants & Statutory Auditor | ||
Riverside House | ||
Kings Reach Business Park | ||
Yew Street | ||
Stockport | ||
SK4 2HD | ||
Registered Number: | |||||||
Statement of Financial Position | |||||||
As At |
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Notes | 2022 | 2021 | |||||
£ | £ | ||||||
Fixed assets | |||||||
Tangible assets | 6 | ||||||
Current assets | |||||||
Stocks | |||||||
Debtors | 7 | ||||||
Cash at bank and in hand | |||||||
Creditors: amounts falling due within one year | 8 | ( |
( |
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Net current assets | |||||||
Total assets less current liabilities | |||||||
Creditors: amounts falling due after more than one year | 9 | ( |
( |
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Net liabilities | ( |
( |
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Capital and reserves | |||||||
Called up share capital | |||||||
Profit and loss account | ( |
( |
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Shareholders' funds | ( |
( |
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P Schweizer | |||||||
Director | |||||||
Approved by the board on |
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Notes to the Accounts | ||||||||
For The Year Ended |
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1 | General information | |||||||
2 | Statement of compliance | |||||||
These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and Republic of Ireland | ||||||||
3 | Accounting policies | |||||||
(a) Basis of preparation | ||||||||
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities measured at fair value through profit or loss | ||||||||
(b) Going concern | ||||||||
The company is dependent upon the continuing financial support of its parent company who have indicated that they will continue with this support. The director of the company is also a director of the parent company and is confident of its ability to continue to provide the necessary financial support to the company and on this basis the financial statements have been prepared on a going concern basis | ||||||||
(c) Judgements and key sources of estimation uncertainty | ||||||||
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. | ||||||||
(d) Revenue recognition | ||||||||
(e) Deferred tax | ||||||||
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred at that date that will result in an obligation to pay more, or a right to pay less or to receive more tax, with the following exceptions: | ||||||||
Deferred tax assets are recognised only to the extent that the directors consider that it is more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted | ||||||||
Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date | ||||||||
(f) Foreign currencies | ||||||||
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currency are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account. | ||||||||
(g)Tangible fixed assets | ||||||||
Fixtures, fittings, tools and equipment | 20% and 25% and 33 1/3% straight line | |||||||
(h) Stocks | ||||||||
(i)Defined contribution plans | ||||||||
4 | Employees | 2022 | 2021 | |||||
Number | Number | |||||||
Average number of persons employed by the company | ||||||||
5 | Profit before taxation | 2022 | 2021 | |||||
£ | £ | |||||||
Profit before tax is stated after charging: | ||||||||
Auditors Remuneration | 4,350 | - | ||||||
Depreciation of tangible fixed assets | 11,279 | |||||||
6 | Tangible fixed assets | |||||||
Fixtures, Fittings & Equipment | ||||||||
£ | ||||||||
Cost | ||||||||
At 1 January 2022 | ||||||||
Additions | ||||||||
At 31 December 2022 | ||||||||
Depreciation | ||||||||
At 1 January 2022 | ||||||||
Charge for the year | ||||||||
At 31 December 2022 | ||||||||
Net book value | ||||||||
At 31 December 2022 | ||||||||
At 31 December 2021 | ||||||||
7 | Debtors | 2022 | 2021 | |||||
£ | £ | |||||||
Trade debtors | ||||||||
Prepayments and accrued income | 56,506 | 34,079 | ||||||
Other debtors | ||||||||
8 | Creditors: amounts falling due within one year | 2022 | 2021 | |||||
£ | £ | |||||||
Bank loans and overdrafts | - | |||||||
Trade creditors | ||||||||
Amounts owed to group undertakings and undertakings in which the company has a participating interest | ||||||||
Accruals and deferred income | 5,350 | 5,200 | ||||||
Taxation and social security costs | ||||||||
Other creditors | ||||||||
9 | Creditors: amounts falling due after one year | 2022 | 2021 | |||||
£ | £ | |||||||
Amounts owed to group undertakings and undertakings in which the company has a participating interest | ||||||||
Included within creditors: amounts falling due after more than one year is an amount of £1,800,000 (2021: £1,800,000) in respect of liabilities payable or repayable by instalments which fall due after more than five years from the reporting date. | ||||||||
The amounts owed to group undertakings has no fixed term for repayment under the terms of the loan agreement and interest is charged at a rate of 1.5% (2021: 1.5%) per annum. An amount of £1,800,000 is subject to a subordination agreement whereby repayment is permitted to the extent that the company remains able to pay off all its other debts as they fall due. | ||||||||
10 | Commitments under operating leases | 2022 | 2021 | |||||
£ | £ | |||||||
Total future minimum payments under non-cancellable operating leases are as follows: | ||||||||
Not later than 1 year | 48,055 | 25,987 | ||||||
Later than one year but less than five years | 100,100 | 71,878 | ||||||
148,155 | 97,865 | |||||||
12 | Controlling party | |||||||