134 false false false false true false false false false false false true false false true false true true 2023-04-01 Sage Accounts Production Advanced 2023 - FRS102_2023 908,494 920,366 1,850 393 1,457 1,326 131 1,457 524 57,622 4,417 62,039 xbrli:pure xbrli:shares iso4217:GBP 04304748 2023-04-01 2024-03-31 04304748 2024-03-31 04304748 2023-03-31 04304748 2022-04-01 2023-03-31 04304748 2023-03-31 04304748 2022-03-31 04304748 bus:RegisteredOffice 2023-04-01 2024-03-31 04304748 bus:OrdinaryShareClass1 2023-04-01 2024-03-31 04304748 bus:LeadAgentIfApplicable 2023-04-01 2024-03-31 04304748 bus:Director1 2023-04-01 2024-03-31 04304748 bus:Director2 2023-04-01 2024-03-31 04304748 bus:Director3 2023-04-01 2024-03-31 04304748 bus:CompanySecretary1 2023-04-01 2024-03-31 04304748 core:WithinOneYear 2024-03-31 04304748 core:WithinOneYear 2023-03-31 04304748 core:PlantMachinery 2023-03-31 04304748 core:FurnitureFittings 2023-03-31 04304748 core:MotorVehicles 2023-03-31 04304748 core:PlantMachinery 2024-03-31 04304748 core:FurnitureFittings 2024-03-31 04304748 core:MotorVehicles 2024-03-31 04304748 core:DeferredTaxation 2023-04-01 2024-03-31 04304748 core:PlantMachinery 2023-04-01 2024-03-31 04304748 core:FurnitureFittings 2023-04-01 2024-03-31 04304748 core:MotorVehicles 2023-04-01 2024-03-31 04304748 core:AfterOneYear 2024-03-31 04304748 core:AfterOneYear 2023-03-31 04304748 core:UKTax 2023-04-01 2024-03-31 04304748 core:UKTax 2022-04-01 2023-03-31 04304748 core:RetainedEarningsAccumulatedLosses 2023-03-31 04304748 core:RetainedEarningsAccumulatedLosses 2022-03-31 04304748 core:RetainedEarningsAccumulatedLosses 2024-03-31 04304748 core:RetainedEarningsAccumulatedLosses 2023-03-31 04304748 core:ShareCapital 2024-03-31 04304748 core:ShareCapital 2023-03-31 04304748 core:CapitalRedemptionReserve 2024-03-31 04304748 core:CapitalRedemptionReserve 2023-03-31 04304748 core:BetweenOneFiveYears 2024-03-31 04304748 core:BetweenOneFiveYears 2023-03-31 04304748 core:AcceleratedTaxDepreciationDeferredTax 2024-03-31 04304748 core:AcceleratedTaxDepreciationDeferredTax 2023-03-31 04304748 core:PlantMachinery 2023-03-31 04304748 core:FurnitureFittings 2023-03-31 04304748 core:MotorVehicles 2023-03-31 04304748 core:LeasedAssetsHeldAsLessee core:PlantMachinery 2024-03-31 04304748 core:FurnitureFittings core:LeasedAssetsHeldAsLessee 2024-03-31 04304748 core:LeasedAssetsHeldAsLessee core:MotorVehicles 2024-03-31 04304748 core:LeasedAssetsHeldAsLessee 2024-03-31 04304748 core:LeasedAssetsHeldAsLessee core:PlantMachinery 2023-03-31 04304748 core:FurnitureFittings core:LeasedAssetsHeldAsLessee 2023-03-31 04304748 core:LeasedAssetsHeldAsLessee core:MotorVehicles 2023-03-31 04304748 core:LeasedAssetsHeldAsLessee 2023-03-31 04304748 core:DeferredTaxation 2023-03-31 04304748 core:DeferredTaxation 2024-03-31 04304748 countries:UnitedKingdom 2023-04-01 2024-03-31 04304748 countries:UnitedKingdom 2022-04-01 2023-03-31 04304748 countries:RestWorldOutsideUK 2023-04-01 2024-03-31 04304748 countries:RestWorldOutsideUK 2022-04-01 2023-03-31 04304748 bus:Agent1 2023-04-01 2024-03-31 04304748 bus:Agent1 2022-04-01 2023-03-31 04304748 bus:MediumEntities 2023-04-01 2024-03-31 04304748 bus:Audited 2023-04-01 2024-03-31 04304748 bus:Medium-sizedCompaniesRegimeForAccounts 2023-04-01 2024-03-31 04304748 bus:PrivateLimitedCompanyLtd 2023-04-01 2024-03-31 04304748 bus:FullAccounts 2023-04-01 2024-03-31 04304748 bus:OrdinaryShareClass1 2024-03-31 04304748 bus:OrdinaryShareClass1 2023-03-31 04304748 core:AllSubsidiaries 2023-04-01 2024-03-31 04304748 core:AllSubsidiaries 2022-04-01 2023-03-31 04304748 core:ComputerSoftware 2023-03-31 04304748 core:ComputerSoftware 2023-04-01 2024-03-31 04304748 core:ComputerSoftware 2024-03-31 04304748 core:ComputerEquipment 2023-03-31 04304748 core:ComputerEquipment 2023-04-01 2024-03-31 04304748 core:ComputerEquipment 2024-03-31 04304748 core:ComputerEquipment core:LeasedAssetsHeldAsLessee 2023-03-31 04304748 core:AllSubsidiaries 2024-03-31 04304748 core:AllSubsidiaries 2023-03-31 04304748 core:CapitalRedemptionReserve 2023-04-01 2024-03-31
COMPANY REGISTRATION NUMBER: 04304748
PARKINSON HARNESS TECHNOLOGY LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 March 2024
PARKINSON HARNESS TECHNOLOGY LIMITED
FINANCIAL STATEMENTS
YEAR ENDED 31 MARCH 2024
Contents
Page
Officers and Professional Advisers
1
Strategic Report
2
Directors' Report
3
Independent Auditor's Report to the Members
5
Statement of Income and Retained Earnings
10
Statement of Financial Position
11
Notes to the Financial Statements
12
PARKINSON HARNESS TECHNOLOGY LIMITED
OFFICERS AND PROFESSIONAL ADVISERS
The Board of Directors
R Rv Dhoot
Rv R Dhoot
D M Earnshaw
Company Secretary
M D Wilcock
Registered Office
Marsh Lane
Riverside Industrial Estate
Boston
Lincolnshire
England
PE21 7FP
Auditor
Streets Audit LLP
Chartered accountants & statutory auditor
Halifax House
30 George Street
Hull
East Yorkshire
HU1 3AJ
PARKINSON HARNESS TECHNOLOGY LIMITED
STRATEGIC REPORT
YEAR ENDED 31 MARCH 2024
Review of the Business
The company's principal business activity is the sale of wiring harnesses. Whilst the challenges surrounding component shortages and inflation continue to ease, uncertainty within the global economy means existing markets remain challenging. However, the company continues to invest in the technology required for emerging green markets and these markets continue to see significant growth. Despite turnover for the period decreasing the gross profit percentage has improved and the directors are pleased with the business performance. Both the net assets and shareholders funds position at the end of the year continue to increase in line with the directors expectations. The company is fulfilling its aim to increase market share in the United Kingdom. The key performance indicators are turnover and gross margin which are monitored through monthly management accounts.
Principal Risks and Uncertainties
The principal risks are: 1. Increased costs of raw materials and energy 2. Major changes in exchange rates 3. Competitive pressure 4. Adverse changes in legislation 5. Reduced demand from the company's main markets The company has strategies to manage these risks and the directors are confident that they will continue to be successful.
Plans for the Future
The directors consider that the company is in a strong financial position to further develop the business and take advantage of opportunities as they arise.
This report was approved by the board of directors on 14 May 2024 and signed on behalf of the board by:
R Rv Dhoot
D M Earnshaw
Director
Director
Registered office:
Marsh Lane
Riverside Industrial Estate
Boston
Lincolnshire
England
PE21 7FP
PARKINSON HARNESS TECHNOLOGY LIMITED
DIRECTORS' REPORT
YEAR ENDED 31 MARCH 2024
The directors present their report and the financial statements of the company for the year ended 31 March 2024 .
Directors
The directors who served the company during the year were as follows:
R Rv Dhoot
Rv R Dhoot
D M Earnshaw
Dividends
The directors do not recommend the payment of a dividend.
Disclosure of Information in the Strategic Report
Information in respect of business review and principal risks and uncertainties is included in the strategic report.
Directors' Responsibilities Statement
The directors are responsible for preparing the strategic report, directors' report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: - select suitable accounting policies and then apply them consistently; - make judgments and accounting estimates that are reasonable and prudent; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on 14 May 2024 and signed on behalf of the board by:
R Rv Dhoot
D M Earnshaw
Director
Director
Registered office:
Marsh Lane
Riverside Industrial Estate
Boston
Lincolnshire
England
PE21 7FP
PARKINSON HARNESS TECHNOLOGY LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PARKINSON HARNESS TECHNOLOGY LIMITED
YEAR ENDED 31 MARCH 2024
Opinion
We have audited the financial statements of Parkinson Harness Technology Limited (the 'company') for the year ended 31 March 2024 which comprise the statement of income and retained earnings, statement of financial position and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 March 2024 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - 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. 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. In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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 Financial Statements
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. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: - the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; - we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the company and sector in which it operates; - we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, anti-bribery, employment, environmental and health and safety legislation; - we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and - identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: - making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and - considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. To address the risk of fraud through management bias and override of controls, we: - performed analytical procedures to identify any unusual or unexpected relationships; - assessed whether judgements and assumptions made in determining the accounting estimates set out in Note 3 were indicative of potential bias; and - investigated the rationale behind significant or unusual transactions. In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: - agreeing financial statement disclosures to underlying supporting documentation; - reading the minutes of meetings of those charged with governance; - obtaining third party confirmation of material debtor balances in the financial statements. There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to inquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 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.
Robert Anderson
(Senior Statutory Auditor)
For and on behalf of
Streets Audit LLP
Chartered accountants & statutory auditor
Halifax House
30 George Street
Hull
East Yorkshire
HU1 3AJ
17 June 2024
PARKINSON HARNESS TECHNOLOGY LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
YEAR ENDED 31 MARCH 2024
2024
2023
Note
£
£
Turnover
4
17,674,257
18,585,044
Cost of sales
14,605,596
15,741,474
--------------
--------------
Gross Profit
3,068,661
2,843,570
Administrative expenses
1,835,358
1,698,607
Other operating income
5
14,005
7,162
-------------
-------------
Operating Profit
6
1,247,308
1,152,125
Interest payable and similar expenses
10
24,817
24,092
-------------
-------------
Profit Before Taxation
1,222,491
1,128,033
Tax on profit
11
313,997
207,667
-------------
-------------
Profit for the Financial Year and Total Comprehensive Income
908,494
920,366
-------------
-------------
Retained Earnings at the Start of the Year
3,370,660
2,450,294
-------------
-------------
Retained Earnings at the End of the Year
4,279,154
3,370,660
-------------
-------------
All the activities of the company are from continuing operations.
PARKINSON HARNESS TECHNOLOGY LIMITED
STATEMENT OF FINANCIAL POSITION
31 March 2024
2024
2023
Note
£
£
£
Fixed Assets
Intangible assets
12
524
Tangible assets
13
310,861
306,938
----------
----------
310,861
307,462
Current Assets
Stocks
14
2,035,039
2,108,290
Debtors
15
5,526,077
4,905,847
Cash at bank and in hand
77,495
27,218
-------------
-------------
7,638,611
7,041,355
Creditors: amounts falling due within one year
16
3,543,641
3,870,310
-------------
-------------
Net Current Assets
4,094,970
3,171,045
-------------
-------------
Total Assets Less Current Liabilities
4,405,831
3,478,507
Creditors: amounts falling due after more than one year
17
63,638
49,225
Provisions
19
62,039
57,622
-------------
-------------
Net Assets
4,280,154
3,371,660
-------------
-------------
Capital and Reserves
Called up share capital
22
600
600
Capital redemption reserve
23
400
400
Profit and loss account
23
4,279,154
3,370,660
-------------
-------------
Shareholders Funds
4,280,154
3,371,660
-------------
-------------
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.
These financial statements were approved by the board of directors and authorised for issue on 14 May 2024 , and are signed on behalf of the board by:
R Rv Dhoot
D M Earnshaw
Director
Director
Company registration number: 04304748
PARKINSON HARNESS TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 MARCH 2024
1. General Information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Marsh Lane, Riverside Industrial Estate, Boston, Lincolnshire, PE21 7FP, England.
2. Statement of Compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting Policies
Basis of Preparation
The financial statements have been prepared on the historical cost basis. The financial statements are prepared in sterling, which is the functional currency of the entity. Disclosure Exemptions The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. Its financial statements are consolidated into the financial statements of Dhoot Transmission (UK) Limited which can be obtained from Companies House. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102: (a) Disclosures in respect of each class of share capital have not been presented. (b) No cash flow statement has been presented for the company. (c) Disclosures in respect of financial instruments have not been presented. (d) Disclosures in respect of share-based payments have not been presented. (e) No disclosure has been given for the aggregate remuneration of key management personnel. 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. Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. Tangible fixed assets are stated at cost less depreciation and any impairments. Depreciation takes place over the estimated useful life down to the assessed residual value. The carrying amount of the fixed assets is tested as soon as changed conditions indicate that a need for impairment has arisen. Provisions for stock obsolescence and bad debts are made on a specific case basis using information available to management. Revenue Recognition Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably. Income Tax The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date. Deferred tax is recognised in respect of all material timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised 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 that are expected to apply to the reversal of the timing difference. Operating Leases Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis. 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.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Tangible Assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset. The following depreciation rates are under the Straight line basis:
Plant and machinery
-
Over 15 years
Fixtures and fittings
-
Over 10 years
Motor vehicles
-
Over 8 years
Computer equipment
-
Over 3 years
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.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
Finance Leases and Hire Purchase Contracts
Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
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.
Financial Instruments
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the entity after deducting all of its financial liabilities. Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability. Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity.
Defined Contribution Plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.
4. Turnover
Turnover arises from:
2024
2023
£
£
Sale of goods
17,674,257
18,585,044
--------------
--------------
The turnover is attributable to the one principal activity of the company. An analysis of turnover by the geographical markets that substantially differ from each other is given below:
2024
2023
£
£
United Kingdom
14,309,699
15,608,472
Overseas
3,364,558
2,976,572
--------------
--------------
17,674,257
18,585,044
--------------
--------------
5. Other Operating Income
2024
2023
£
£
Other operating income
14,005
7,162
---------
-------
6. Operating Profit
Operating profit or loss is stated after charging:
2024
2023
£
£
Amortisation of intangible assets
131
175
Depreciation of tangible assets
55,035
90,386
Loss on disposal of tangible assets
28,589
2,499
Loss on disposal of intangible assets
393
---------
---------
7. Auditor's Remuneration
2024
2023
£
£
Fees payable for the audit of the financial statements
6,500
5,200
-------
-------
8. Staff Costs
The average number of persons employed by the company during the year amounted to 134 (2023: 133 ).
The aggregate payroll costs incurred during the year, relating to the above, were:
2024
2023
£
£
Wages and salaries
3,220,053
3,065,965
Social security costs
286,765
290,548
Other pension costs
62,069
55,646
-------------
-------------
3,568,887
3,412,159
-------------
-------------
9. Directors' Remuneration
The directors' aggregate remuneration in respect of qualifying services was:
2024
2023
£
£
Remuneration
116,469
112,566
----------
----------
10. Interest Payable and Similar Expenses
2024
2023
£
£
Interest on obligations under finance leases and hire purchase contracts
4,118
5,303
Other interest payable and similar charges
20,699
18,789
---------
---------
24,817
24,092
---------
---------
11. Tax on Profit
Major components of tax expense
2024
2023
£
£
Current tax:
UK current tax expense
309,580
218,385
Deferred tax:
Origination and reversal of timing differences
4,417
( 10,718)
----------
----------
Tax on profit
313,997
207,667
----------
----------
Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the year is higher than (2023: lower than) the standard rate of corporation tax in the UK of 25 % (2023: 19 %).
2024
2023
£
£
Profit on ordinary activities before taxation
1,222,491
1,128,033
-------------
-------------
Profit on ordinary activities by rate of tax
305,648
214,326
Effect of expenses not deductible for tax purposes
135
1,972
Effect of capital allowances and depreciation
8,214
5,895
Effect of different UK tax rates on some earnings
(14,526)
-------------
-------------
Tax on profit
313,997
207,667
-------------
-------------
12. Intangible Assets
Other intangible assets
£
Cost
At 1 April 2023
1,850
Additions
Disposals
( 393)
-------
At 31 March 2024
1,457
-------
Amortisation
At 1 April 2023
1,326
Charge for the year
131
-------
At 31 March 2024
1,457
-------
Carrying amount
At 31 March 2024
-------
At 31 March 2023
524
-------
13. Tangible Assets
Plant and machinery
Fixtures and fittings
Motor vehicles
Computer Equipment
Total
£
£
£
£
£
Cost
At 1 April 2023
802,992
211,652
24,315
227,264
1,266,223
Additions
55,102
26,800
7,604
89,506
Disposals
( 89,588)
( 111,483)
( 24,315)
( 163,042)
( 388,428)
----------
----------
---------
----------
-------------
At 31 March 2024
768,506
100,169
26,800
71,826
967,301
----------
----------
---------
----------
-------------
Depreciation
At 1 April 2023
607,696
176,641
18,875
156,074
959,286
Charge for the year
20,229
7,869
2,168
24,769
55,035
Disposals
( 89,021)
( 103,452)
( 19,926)
( 145,482)
( 357,881)
----------
----------
---------
----------
-------------
At 31 March 2024
538,904
81,058
1,117
35,361
656,440
----------
----------
---------
----------
-------------
Carrying amount
At 31 March 2024
229,602
19,111
25,683
36,465
310,861
----------
----------
---------
----------
-------------
At 31 March 2023
195,296
35,011
5,440
71,190
306,937
----------
----------
---------
----------
-------------
Finance leases and hire purchase contracts
Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:
Plant and machinery
Fixtures and fittings
Motor vehicles
Computer Equipment
Total
£
£
£
£
£
At 31 March 2024
135,251
3,514
25,683
164,448
----------
-------
---------
----
----------
At 31 March 2023
123,989
4,452
4,947
586
133,974
----------
-------
---------
----
----------
14. Stocks
2024
2023
£
£
Raw materials and consumables
1,359,732
1,343,751
Work in progress
553,703
644,306
Finished goods and goods for resale
121,604
120,233
-------------
-------------
2,035,039
2,108,290
-------------
-------------
15. Debtors
2024
2023
£
£
Trade debtors
3,997,199
4,044,607
Amounts owed by group undertakings
1,433,335
759,610
Prepayments and accrued income
95,543
101,630
-------------
-------------
5,526,077
4,905,847
-------------
-------------
16. Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
2,248,672
2,509,996
Accruals and deferred income
135,767
113,865
Corporation tax
174,698
130,379
Social security and other taxes
409,677
486,169
Obligations under finance leases and hire purchase contracts
35,520
57,375
Director loan accounts
2,342
Invoice discounting
479,862
515,923
Other creditors
57,103
56,603
-------------
-------------
3,543,641
3,870,310
-------------
-------------
The invoice discounting liability is secured against trade debtors. Hire purchase liabilities are secured against the related fixed assets.
17. Creditors: amounts falling due after more than one year
2024
2023
£
£
Obligations under finance leases and hire purchase contracts
63,638
49,225
---------
---------
Hire purchase liabilities are secured against the related fixed assets.
18. Finance Leases and Hire Purchase Contracts
The total future minimum lease payments under finance leases and hire purchase contracts are as follows:
2024
2023
£
£
Not later than 1 year
35,520
57,375
Later than 1 year and not later than 5 years
63,638
49,225
---------
----------
99,158
106,600
---------
----------
19. Provisions
Deferred tax (note 20)
£
At 1 April 2023
57,622
Additions
4,417
---------
At 31 March 2024
62,039
---------
20. Deferred Tax
The deferred tax included in the statement of financial position is as follows:
2024
2023
£
£
Included in provisions (note 19)
62,039
57,622
---------
---------
The deferred tax account consists of the tax effect of timing differences in respect of:
2024
2023
£
£
Accelerated capital allowances
62,039
57,622
---------
---------
21. Employee Benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 62,069 (2023: £ 55,646 ).
22. Called Up Share Capital
Issued, called up and fully paid
2024
2023
No.
£
No.
£
Ordinary shares of £ 1 each
600
600
600
600
----
----
----
----
23. Reserves
Capital redemption reserve - This reserve records the nominal value of shares repurchased by the company. Profit and loss account - This reserve records retained earnings and accumulated losses.
24. Operating Leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
2024
2023
£
£
Not later than 1 year
92,798
85,438
Later than 1 year and not later than 5 years
25,000
17,798
----------
----------
117,798
103,236
----------
----------
25. Related Party Transactions
During the year the company entered into the following transactions with related parties:
Transaction value
Balance owed by/(owed to)
2024
2023
2024
2023
£
£
£
£
Sales to ultimate parent company
68,117
22,856
94,816
82,676
Purchases from ultimate parent company
109,975
85,719
323,169
357,172
Loan to immediate parent company
677,490
634,610
1,437,101
759,610
----------
----------
-------------
----------
26. Controlling Party
The company is a wholly owned subsidiary of Dhoot Transmission (UK) Limited. The ultimate parent company is Dhoot Transmission PVT Ltd, a company registered in India. The ultimate controlling party is R Rv Dhoot .