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Registration number: 07102556

Ram Fabrications Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 January 2023

 

Ram Fabrications Limited

Contents

Company Information

1

Statement of Financial Position

2 to 3

Notes to the Unaudited Financial Statements

4 to 11

 

Ram Fabrications Limited

Company Information

Director

Mr A D Ramsden

Registered office

C/O Fitton & Co
Callis Mill
Woodland View
Hebden Bridge
West Yorks
HX7 6PJ

Accountants

Fitton & Co
Chartered Certified Accountants
Callis Mill
Woodland View
Hebden Bridge
West Yorkshire
HX7 6PJ

 

Ram Fabrications Limited

(Registration number: 07102556)
Statement of financial position as at 31 January 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

7

3,837

1,478

Current assets

 

Stocks

8

60,250

20,000

Debtors

99,489

65,233

Cash at bank and in hand

 

1,126,759

1,263,238

 

1,286,498

1,348,471

Creditors: Amounts falling due within one year

(45,069)

(64,293)

Net current assets

 

1,241,429

1,284,178

Total assets less current liabilities

 

1,245,266

1,285,656

Provisions for liabilities

(729)

(281)

Net assets

 

1,244,537

1,285,375

Capital and reserves

 

Called up share capital

11

50

50

Capital redemption reserve

50

50

Retained earnings

1,244,437

1,285,275

Shareholders' funds

 

1,244,537

1,285,375

For the financial year ending 31 January 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The director acknowledges his responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the director has not delivered to the registrar a copy of the Income Statement.

Approved and authorised by the director on 16 October 2023
 

 

Ram Fabrications Limited

(Registration number: 07102556)
Statement of financial position as at 31 January 2023

.........................................
Mr A D Ramsden
Director

 

Ram Fabrications Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 January 2023

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
C/O Fitton & Co
Callis Mill
Woodland View
Hebden Bridge
West Yorks
HX7 6PJ

These financial statements were authorised for issue by the director on 16 October 2023.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The presentation currency of the financial statements is the Pound Sterling (£).

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

 

Ram Fabrications Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 January 2023

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Furniture and fixtures

Over 5 years

Office equipment

Over 3 years

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Intangible assets

Intangible assets are initially recorded at cost, and are subsequently stated at cost less any
accumulated amortisation and impairment losses. Any intangible assets carried at revalued amounts,
are recorded at the fair value at the date of revaluation, as determined by reference to an active
market, less any subsequent accumulated amortisation and subsequent accumulated impairment
losses.

Intangible assets acquired as part of a business combination are recorded at the fair value at the
acquisition date.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Goodwill

Over 5 years

Research and development

Over 5 years

 

Ram Fabrications Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 January 2023

Research and development

Research and development costs incurred in the year are capitalised and are amortised over the
useful life of the project starting from the date the project is fully completed.

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable
amount being estimated where such indicators exist. Where the carrying value exceeds the
recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for
possible reversal at each reporting date.

For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of
an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to
which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that
includes the asset and generates cash inflows that largely independent of the cash inflows from other
assets or groups of assets.

For impairment testing of goodwill, the goodwill acquired in a business combination is, from the
acquisition date, allocated to each of the cash-generating units that are expected to benefit from the
synergies of the combination, irrespective of whether other assets or liabilities of the company are
assigned to those units.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are 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.

 

Ram Fabrications Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 January 2023

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past
event, it is probable that the entity will be required to transfer economic benefits in settlement and the
amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the
statement of financial position and the amount of the provision as an expense.

Provisions are initially measured at the best estimate of the amount required to settle the obligation at
the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the
current best estimate of the amount that would be required to settle the obligation. Any adjustments to
the amounts previously recognised are recognised in profit or loss unless the provision was originally
recognised as part of the cost of an asset. When a provision is measured at the present value of the
amount expected to be required to settle the obligation, the unwinding of the discount is recognised as
a finance cost in profit or loss in the period it arises.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

 

Ram Fabrications Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 January 2023

3

Staff numbers

The average number of persons employed by the company (including the director) during the year, was 1 (2022 - 2).

4

Tax on profit

Major components of tax expense

Note

2023
 £

2022
 £

Current tax: UK current tax expense

 

3,556

13,698

Deferred tax: Origination and reversal of timing differences

 

448

187

Tax on Profit

 

4,004

13,885

5

Reconciliation of tax expense

The tax assessed on the profit on ordinary activities for the year is higher than (2022 lower than) the
standard rate of corporation tax in the UK at 57.68% (2022 18.8%).

Note

2023
 £

2022
 £

Profit on ordinary activities before taxation

 

6,166

72,854

Profit on ordinary activities by rate of tax

 

1,172

13,842

Note

2023
 £

2022
 £

Effect of expenses not deductible for tax purposes

 

3,015

127

Effect of capital allowances and depreciation

 

(631)

(271)

Tax on Profit

 

3,556

13,698

 

Ram Fabrications Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 January 2023

6

Intangible assets

Goodwill
 £

Research and development costs
 £

Total
£

Cost or valuation

At 1 February 2022

400,000

30,890

430,890

At 31 January 2023

400,000

30,890

430,890

Amortisation

At 1 February 2022

400,000

30,890

430,890

At 31 January 2023

400,000

30,890

430,890

Carrying amount

At 31 January 2023

-

-

-

7

Tangible assets

Fixtures and fittings
£

Plant and machinery
£

Office equipment
£

Total
£

Cost or valuation

At 1 February 2022

1,125

-

3,022

4,147

Additions

-

2,149

1,048

3,197

At 31 January 2023

1,125

2,149

4,070

7,344

Depreciation

At 1 February 2022

1,125

-

1,544

2,669

Charge for the year

-

16

822

838

At 31 January 2023

1,125

16

2,366

3,507

Carrying amount

At 31 January 2023

-

2,133

1,704

3,837

At 31 January 2022

-

-

1,478

1,478

 

Ram Fabrications Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 January 2023

8

Stocks

2023
£

2022
£

Work in progress

5,250

-

Other inventories

55,000

20,000

60,250

20,000

9

Debtors

2023
 £

2022
 £

Trade debtors

37,695

48,696

Other debtors

49,904

9,146

Prepayments

11,890

7,391

Total current trade and other debtors

99,489

65,233

10

Creditors

Note

2023
 £

2022
 £

Due within one year

 

Trade creditors

 

35,381

20,244

Amounts due to related parties

13

284

24,882

Social security and other taxes

 

670

1,238

Accrued expenses

 

5,178

4,232

Income tax liability

3,556

13,697

 

45,069

64,293

11

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary £1 of £1 each

50

50

50

50

         
 

Ram Fabrications Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 January 2023

12

Dividends

Note

2023
 £

2022
 £

Dividends on Ordinary shares

 

43,000

38,000

 

43,000

38,000

13

Related party transactions

Transactions with the director

2023

At 1 February 2022
£

Advances to director
£

Repayments by director
£

At 31 January 2023
£

Mr A D Ramsden

Loan advances to company

24,880

(69,284)

44,688

284

         
       

 

2022

At 1 February 2021
£

Advances to director
£

Repayments by director
£

At 31 January 2022
£

Mr A D Ramsden

Loan advances to company

25,392

(40,339)

39,827

24,880

         
       

 

Director's remuneration

The director's remuneration for the year was as follows:

2023
£

2022
£

Remuneration

11,523

9,600

Dividends paid to the director

   

2023
£

 

2022
£

Mr A D Ramsden

       

Dividends

 

43,000

 

38,000