Macleod Organics Ltd |
Notes to the Accounts |
for the year ended 31 March 2023 |
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1 |
Accounting policies |
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Basis of preparation |
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The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard).They are presented in £ sterling which is the company's functional currency. The accounts have been prepared on a going concern basis which is considered appropriate by the directors. As at 31 March 2023 the company had net current liabilities of £64,328 (2022 - £69,367) and total net liabilities of £26,405 (2022 - £15,085). The company relies upon continued support from its directors and related parties to be able to meet its liabilities as they fall due and the appropriateness of the going concern basis is dependent on this support being continued. |
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Turnover |
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Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods which is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. |
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Intangible fixed assets |
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Intangible fixed assets are measured at cost less accumulated amortisation and any accumulated impairment losses. Intangible assets are amortised over their expected useful life of 5 years. |
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Tangible fixed assets |
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Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows: |
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Leasehold land and buildings |
over the lease term |
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Plant and machinery |
25% per annum on a reducing balance basis |
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Fixtures, fittings, tools and equipment |
25% per annum on a reducing balance basis |
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Motor vehicles |
25% per annum on a reducing balance basis |
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Stocks |
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Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised. |
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Financial instruments |
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The following assets and liabilities are classified as financial instruments - trade debtors, trade creditors and loan's to the company. Trade debtors and trade creditors are measured at the undiscounted amounts receivable from a customer or payable to a supplier, which is normally the invoice price. Trade debtors are assessed at the end of each reporting period for objective evidence of impairment. If such evidence is found, an impairment loss is recognised in the profit and loss account. Loan's to the company, which are repayable on demand, are measured at the undiscounted amount of the cash expected to be paid. |
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Government Grants |
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Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the company will comply with conditions attaching to them and the grants will be received using the accrual model. |
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Taxation |
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A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that 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, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted. |
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Foreign currency translation |
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Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss. |
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Leased assets |
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Operating lease payments are recognised as an expense on a straight line basis over the lease term. |
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Pensions |
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The company operates a defined benefit contribution pension scheme. Contributions are charged to the profit and loss account as they become payable in accordance with the rules of the scheme. |
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2 |
Employees |
2023 |
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2022 |
Number |
Number |
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Average number of persons employed by the company |
8 |
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9 |
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3 |
Intangible fixed assets |
£ |
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Goodwill and website: |
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Cost |
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At 1 April 2022 |
27,699 |
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At 31 March 2023 |
27,699 |
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Amortisation |
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At 1 April 2022 |
14,740 |
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Provided during the year |
5,540 |
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At 31 March 2023 |
20,280 |
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Net book value |
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At 31 March 2023 |
7,419 |
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At 31 March 2022 |
12,959 |
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Intangible fixed assets are being written off in equal annual instalments over their estimated economic life of 5 years. |
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4 |
Tangible fixed assets |
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Land and buildings |
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Plant and machinery etc |
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Motor vehicles |
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Total |
£ |
£ |
£ |
£ |
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Cost |
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At 1 April 2022 |
5,097 |
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1,887 |
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70,978 |
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77,962 |
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At 31 March 2023 |
5,097 |
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1,887 |
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70,978 |
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77,962 |
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Depreciation |
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At 1 April 2022 |
2,973 |
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734 |
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32,932 |
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36,639 |
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Charge for the year |
1,019 |
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288 |
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9,512 |
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10,819 |
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At 31 March 2023 |
3,992 |
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1,022 |
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42,444 |
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47,458 |
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Net book value |
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At 31 March 2023 |
1,105 |
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865 |
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28,534 |
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30,504 |
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At 31 March 2022 |
2,124 |
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1,153 |
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38,046 |
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41,323 |
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5 |
Debtors |
2023 |
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2022 |
£ |
£ |
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Trade debtors |
21,704 |
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13,528 |
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Other debtors |
21,908 |
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11,479 |
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43,612 |
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25,007 |
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6 |
Creditors: amounts falling due within one year |
2023 |
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2022 |
£ |
£ |
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Trade creditors |
56,513 |
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60,603 |
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Other creditors |
71,223 |
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87,930 |
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127,736 |
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148,533 |
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7 |
Other financial commitments |
2023 |
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2022 |
£ |
£ |
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Total future minimum payments under non-cancellable operating leases |
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1,710 |
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- |
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8 |
Other information |
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Macleod Organics Ltd is a private company limited by shares and incorporated in Scotland. Its registered office is: |
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Kylerona Farm |
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Ardersier |
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Inverness |
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Highland |
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IV2 7QZ |