Registration number:
Ram Fabrications Limited
for the Year Ended 31 January 2023
Ram Fabrications Limited
Contents
Company Information |
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Statement of Financial Position |
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Notes to the Unaudited Financial Statements |
Ram Fabrications Limited
Company Information
Director |
Mr A D Ramsden |
Registered office |
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Accountants |
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Ram Fabrications Limited
(Registration number: 07102556)
Statement of financial position as at 31 January 2023
Note |
2023 |
2022 |
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Fixed assets |
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Tangible assets |
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Current assets |
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Stocks |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
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Total assets less current liabilities |
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Provisions for liabilities |
( |
( |
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Net assets |
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Capital and reserves |
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Called up share capital |
50 |
50 |
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Capital redemption reserve |
50 |
50 |
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Retained earnings |
1,244,437 |
1,285,275 |
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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:
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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
Ram Fabrications Limited
(Registration number: 07102556)
Statement of financial position as at 31 January 2023
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Ram Fabrications Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 January 2023
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
These financial statements were authorised for issue by the
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
Staff numbers |
The average number of persons employed by the company (including the director) during the year, was
Tax on profit |
Major components of tax expense
Note |
2023 |
2022 |
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Current tax: UK current tax expense |
3,556 |
13,698 |
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Deferred tax: Origination and reversal of timing differences |
448 |
187 |
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Tax on Profit |
4,004 |
13,885 |
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 |
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Profit on ordinary activities before taxation |
6,166 |
72,854 |
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Profit on ordinary activities by rate of tax |
1,172 |
13,842 |
Note |
2023 |
2022 |
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Effect of expenses not deductible for tax purposes |
3,015 |
127 |
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Effect of capital allowances and depreciation |
(631) |
(271) |
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Tax on Profit |
3,556 |
13,698 |
Ram Fabrications Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 January 2023
Intangible assets |
Goodwill |
Research and development costs |
Total |
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Cost or valuation |
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At 1 February 2022 |
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At 31 January 2023 |
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Amortisation |
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At 1 February 2022 |
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At 31 January 2023 |
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Carrying amount |
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At 31 January 2023 |
- |
- |
- |
Tangible assets |
Fixtures and fittings |
Plant and machinery |
Office equipment |
Total |
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Cost or valuation |
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At 1 February 2022 |
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- |
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Additions |
- |
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At 31 January 2023 |
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Depreciation |
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At 1 February 2022 |
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- |
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Charge for the year |
- |
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At 31 January 2023 |
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Carrying amount |
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At 31 January 2023 |
- |
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At 31 January 2022 |
- |
- |
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Ram Fabrications Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 January 2023
Stocks |
2023 |
2022 |
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Work in progress |
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- |
Other inventories |
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Debtors |
2023 |
2022 |
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Trade debtors |
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Other debtors |
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Prepayments |
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Total current trade and other debtors |
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Creditors |
Note |
2023 |
2022 |
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Due within one year |
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Trade creditors |
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Amounts due to related parties |
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Social security and other taxes |
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Accrued expenses |
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Income tax liability |
3,556 |
13,697 |
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Share capital |
Allotted, called up and fully paid shares
2023 |
2022 |
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No. |
£ |
No. |
£ |
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50 |
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50 |
Ram Fabrications Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 January 2023
Dividends |
Note |
2023 |
2022 |
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Dividends on Ordinary shares |
43,000 |
38,000 |
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43,000 |
38,000 |
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 |
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Loan advances to company |
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( |
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2022 |
At 1 February 2021 |
Advances to director |
Repayments by director |
At 31 January 2022 |
Mr A D Ramsden |
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Loan advances to company |
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( |
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Director's remuneration
The director's remuneration for the year was as follows:
2023 |
2022 |
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Remuneration |
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Dividends paid to the director
2023 |
2022 |
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Mr A D Ramsden |
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Dividends |
43,000 |
38,000 |
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