Company Registration No. SC177956 (Scotland)
Tracs International Limited
Unaudited accounts
for the year ended 31 December 2022
Tracs International Limited
Unaudited accounts
Contents
Tracs International Limited
Company Information
for the year ended 31 December 2022
Director
Mohammad Reza Hajyfathaliyan
Company Number
SC177956 (Scotland)
Registered Office
Admiral Court
Poynernook Road East Wing (1st Floor)
Aberdeen
Scotland
AB11 5QX
United Kingdom
Accountants
Hutcheon Mearns Limited
2 Queens Road
Aberdeen
AB15 4ZT
Tracs International Limited
Statement of financial position
as at 31 December 2022
Tangible assets
13,455
13,534
Cash at bank and in hand
159,855
350,171
Creditors: amounts falling due within one year
(1,475,063)
(1,302,675)
Net current liabilities
(137,935)
(461,913)
Total assets less current liabilities
(124,480)
(447,604)
Creditors: amounts falling due after more than one year
(16,658)
(31,743)
Net liabilities
(141,138)
(479,347)
Called up share capital
29,584
29,584
Share premium
651,363
651,363
Capital redemption reserve
4,434
4,434
Capital contribution reserve
2,629,000
2,629,000
Profit and loss account
(3,455,519)
(3,793,728)
Shareholders' funds
(141,138)
(479,347)
For the year ending 31 December 2022 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies. The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.
The director acknowledges his responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
These accounts have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with the provisions of FRS 102 Section 1A - Small Entities. The profit and loss account has not been delivered to the Registrar of Companies.
The financial statements were approved by the Board and authorised for issue on 5 October 2023 and were signed on its behalf by
Mohammad Reza Hajyfathaliyan
Director
Company Registration No. SC177956
Tracs International Limited
Notes to the Accounts
for the year ended 31 December 2022
Tracs International Limited is a private company, limited by shares, registered in Scotland, registration number SC177956. The registered office is Admiral Court, Poynernook Road East Wing (1st Floor), Aberdeen, Scotland, AB11 5QX, United Kingdom.
2
Compliance with accounting standards
The accounts have been prepared in accordance with the provisions of FRS 102 Section 1A Small Entities. There were no material departures from that standard.
The principal accounting policies adopted in the preparation of the financial statements are set out below and have remained unchanged from the previous year, and also have been consistently applied within the same accounts.
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with the Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of the financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Companies accounting policies.
The following principal accounting policies have been applied:
The director having made due and careful enquiry, is of the opinion that the company has adequate working capital to execute its operations over the next 12 months. The director, therefore, has made an informed judgement, at the time of approving the financial statements, that there is a reasonable expectation that the company has adequate resources to continue in an operational existence for the foreseeable future.
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the date of transaction.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.
Tracs International Limited
Notes to the Accounts
for the year ended 31 December 2022
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Rendering of services
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
∙ the amount of revenue can be measured reliably;
∙ it is probable that the Company will receive the consideration
due under the contract;
∙ the stage of completion of the contract at the end of the
reporting period can be measured reliably; and
∙ the costs incurred and the costs to complete the contract can be
measured reliably.
Operating leases: the Company as a lessee
Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profit on a straight line basis over the lease term.
Government grants are accounted under the accruals models as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of Comprehensive Income in the same period as the related expenditure.
Interest income is recognised in the profit or loss using the effective interest method.
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
All borrowing costs are recognised in profit or loss in the year in which they are incurred.
The company operates a defined contribution scheme for the benefit of its employees. A defined contribution plan is a 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 profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are help separately from the Company in independently administered funds.
Tracs International Limited
Notes to the Accounts
for the year ended 31 December 2022
Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance sheet date, except that:
∙ The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙ Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
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. Development costs are amortised over a period of 4 years.
Tangible fixed assets and depreciation
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Fixtures & fittings
5 years
Computer equipment
3 years
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first outbasis. Work in progress and finished goods include labour and attributable overheads.
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
Tracs International Limited
Notes to the Accounts
for the year ended 31 December 2022
Cash and Cash Equivalents
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
Financial assets that are measured at cost and amortised cost 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.
Share premium: This reserve records the premium paid over the nominal value of the shares.
Capital contribution reserve: This reserve records a financial contribution made by a previous immediate parent undertaking by way of a waiver of all debt owed to the parent undertaking by the company.
Capital redemption reserve: This reserve records the nominal value of shares repurchased by the company.
Profit and loss account: This reserve records the cumulative profits or losses attained by the company.
4
Intangible fixed assets
Other
At 31 December 2022
56,515
At 31 December 2022
56,515
Tracs International Limited
Notes to the Accounts
for the year ended 31 December 2022
5
Tangible fixed assets
Fixtures & fittings
Computer equipment
Total
Cost or valuation
At cost
At cost
At 1 January 2022
4,148
72,777
76,925
Additions
4,240
8,675
12,915
At 31 December 2022
8,388
81,452
89,840
At 1 January 2022
2,480
60,911
63,391
Charge for the year
1,683
11,311
12,994
At 31 December 2022
4,163
72,222
76,385
At 31 December 2022
4,225
9,230
13,455
At 31 December 2021
1,668
11,866
13,534
Amounts falling due within one year
Trade debtors
687,448
407,047
Accrued income and prepayments
323,698
79,523
7
Creditors: amounts falling due within one year
2022
2021
Bank loans and overdrafts
10,648
6,212
Trade creditors
505,303
152,682
Taxes and social security
321,596
368,217
Other creditors
35,414
2,301
8
Creditors: amounts falling due after more than one year
2022
2021
Bank loan falling due after 1 year relate to amounts payable between years 2 and 5.
Allotted, called up and fully paid:
295,840 Authorised, allotted, called up and fully paid of £0.10 each
29,584
29,584
Tracs International Limited
Notes to the Accounts
for the year ended 31 December 2022
The company contributes to a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the funds and amounted to £37,488 (2021 - £20,558). Contributions totalling £10,299 (2021 - £nil) were payable to the fund at the year end.
11
Operating lease commitments
2022
2021
At 31 December 2022 the company had the following future minimum lease payments under non-cancellable operating leases for each of the following periods:
Not later than one year
70,649
57,453
Later than one year and not later than five years
66,955
229,810
Later than five years
-
176,620
On January 2020, the entire share capital of the company was acquired by the director and another individual. Prior to that date the company's immediate parent company was TRACS International Holding Company Limited.
13
Average number of employees
During the year the average number of employees was 16 (2021: 13).