REGISTERED NUMBER: |
| STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
| FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 |
FOR |
| CRAMLINGTON PRECISION FORGE LIMITED |
REGISTERED NUMBER: |
| STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
| FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 |
FOR |
| CRAMLINGTON PRECISION FORGE LIMITED |
CRAMLINGTON PRECISION FORGE LIMITED (REGISTERED NUMBER: 04842214) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2025 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 5 |
Profit and Loss Account and other comprehensive income | 9 |
Balance Sheet | 10 |
Statement of Changes in Equity | 11 |
Notes to the Financial Statements | 12 |
CRAMLINGTON PRECISION FORGE LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 MARCH 2025 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Ground Floor |
Hygeia Building |
66-68 College Road |
Harrow |
Middlesex |
HA1 1BE |
CRAMLINGTON PRECISION FORGE LIMITED (REGISTERED NUMBER: 04842214) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2025 |
The directors present their strategic report for the year ended 31 March 2025. |
REVIEW OF BUSINESS |
The sales revenue for the year ended 31 March 2025 is £12,687,060 as against the previous year's sales revenue of £17,119,334 registering a decrease of 25.89% majorly on account of temporary slowdown in commercial vehicle segment which consitutes a major customer base for Cramlington Precision Forge Limited ("the Company"). The revenue comprises of 96.94% from the EU region and the balance 3.06% from the UK and rest of the world. Profit for the current year (KPI) was £829,893 compared to profit of £1,399,313 in the previous year, mainly due to decline in revenue during the year. |
Gross assets of the Company have decreased by around 10% in current year mainly owing to decrease in stock levels to align with lower demand on account of slowdown in commercial vehicle segment. The Company does not have any external borrowing other than an overdraft balance which has remained almost at the same level as previous year. Net assets position of the Company improved from £53,967 in the previous year to £883,860 mainly due to profits earned by the Company during the year. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The challenges foreseen by the Company in the near future would be the uncertain economic conditions and availability of skilled labor. |
ON BEHALF OF THE BOARD: |
20 August 2025 |
CRAMLINGTON PRECISION FORGE LIMITED (REGISTERED NUMBER: 04842214) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MARCH 2025 |
The directors present their report and the financial statements for the year ended 31 March 2025. |
PRINCIPAL ACTIVITY |
| The principal activity of the Company is that of manufacturing of precision forgings. |
DIVIDENDS |
No dividends distributed for the year ended 31 March 2025 (2024: Nil). |
FUTURE DEVELOPMENTS |
The Company is actively engaging with customers in Europe, the UK and the USA for new business opportunities. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 April 2024 to the date of this report. |
CREDIT RISK, LIQUIDITY RISK AND CASH FLOW RISK |
The Company's board of directors has overall responsibility for the establishment and oversight of the Company's risk management framework. The board of directors, along with the top management of the parent company, is responsible for developing and monitoring the Company's risk management policies. Management advises on the financial risks and the appropriate financial risk governance framework for the Company. |
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in market interest rates. The Company's exposure to the risk of changes in market interest rates relates primarily to the Company's bank overdraft with variable interest rates. This is monitored by the Company. The Company has fixed interest rates for loans from related parties. |
Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or a reasonable price. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of credit facilities to meet obligations when due. Management is responsible for liquidity, funding as well as settlement management. Management monitors the Company's liquidity position through rolling forecasts based on expected cash flows. |
GOING CONCERN |
The ultimate parent company has indicated a willingness to continue to provide such support, and the Directors, based on their interactions with the ultimate parent are confident that it intends to continue to provide this support. The Directors consider the Company will be able to continue in business for the foreseeable future through the continued support of the ultimate parent. Therefore, the Directors have continued to adopt the going concern basis of accounting in preparing these financial statements. |
CRAMLINGTON PRECISION FORGE LIMITED (REGISTERED NUMBER: 04842214) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MARCH 2025 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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 of 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 judgements 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. |
DISCLOSURE OF INFORMATION TO THE AUDITORS |
| Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the Company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware. |
AUDITORS |
The auditors, KNAV Limited are deemed to be reappointed under section 487(2) of the Companies Act 2006. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
CRAMLINGTON PRECISION FORGE LIMITED |
Opinion |
| We have audited the financial statements of Cramlington Precision Forge Limited (the 'Company') for the year ended 31 March 2025 which comprise the Profit and Loss Account and other comprehensive income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, 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 Financial Reporting Standard 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 2025 and of its profit for the year then ended; |
| - | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
| - | 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 Auditors' 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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 this gives rise to a material misstatement in the financial statements themselves. 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 Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
CRAMLINGTON PRECISION FORGE LIMITED |
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 Report of the Directors. |
We have nothing to report in respect of the following matters where 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 Statement of Directors' Responsibilities set out on page four, 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 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
CRAMLINGTON PRECISION FORGE LIMITED |
Auditors' 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 a Report of the Auditors 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
We design our procedures so as to obtain sufficient appropriate audit evidence that the financial statements are not materially misstated due to non-compliance with laws and regulations or due to fraud and error. |
We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations. The primary responsibility for prevention and detection of fraud rests with both those charged with governance of the entity and management. |
Based on our understanding of the Company and the industry, discussions with the management, we identified Companies Act 2006, Employment laws, Financial Reporting Standard 102 and UK taxation legislation as having a direct effect on the amounts and disclosures in the financial statements. |
As part of the engagement team discussion about how and where the Company's financial statements may be materially misstated due to fraud, we did not identify any area with an increased risk of fraud. |
Our audit procedures included: |
- enquiry of management about the Company's policies, procedures and related controls regarding compliance with the laws and regulations and if there are any known instances of non-compliance; |
- examining supporting documents for all material balances, transactions and disclosures; |
- review of the minutes of the meetings conducted by the Board of Directors and shareholder's resolution; |
- enquiry of management of legal matters during the year and use of legal firms thereof; |
- evaluation of the selection and application of accounting policies related to subjective measurements and complex transactions; |
- analytical procedures to verify unusual or unexpected relationships; |
- testing the appropriateness of journal entries recorded in the general ledger and other adjustments made in the preparation of the financial statements; and |
- review of accounting estimates for biases. |
Owing to the inherent limitations of an audit there is an unavoidable risk that some material misstatements of the financial statements may not be detected, even though the audit is properly planned and performed in accordance with ISAs (UK). |
The potential effects of inherent limitations are particularly significant in case of misstatement resulting from fraud because fraud may involve sophisticated and carefully organised schemes designed to conceal it, including deliberate failure to record transactions, collusion or intentional misrepresentations being made to us. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
CRAMLINGTON PRECISION FORGE LIMITED |
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 a Report of the Auditors 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. |
for and on behalf of |
Ground Floor |
Hygeia Building |
66-68 College Road |
Harrow |
Middlesex |
HA1 1BE |
UAC: 2025-78-UK |
CRAMLINGTON PRECISION FORGE LIMITED (REGISTERED NUMBER: 04842214) |
PROFIT AND LOSS ACCOUNT AND |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 MARCH 2025 |
31.3.25 | 31.3.24 |
Notes | £ | £ | £ | £ |
TURNOVER | 4 |
Cost of sales |
GROSS PROFIT |
Distribution costs |
Administrative expenses |
1,259,217 | 1,337,092 |
538,370 | 1,100,693 |
Other operating income | 5 |
OPERATING PROFIT | 7 |
Interest receivable and similar income | 9 |
1,056,094 | 1,593,991 |
Interest payable and similar expenses | 10 |
PROFIT BEFORE TAXATION |
Tax on profit | 11 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
CRAMLINGTON PRECISION FORGE LIMITED (REGISTERED NUMBER: 04842214) |
BALANCE SHEET |
31 MARCH 2025 |
31.3.25 | 31.3.24 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 12 |
Tangible assets | 13 |
CURRENT ASSETS |
Stocks | 14 |
Debtors | 15 |
Investments | 16 |
Cash and cash equivalents | 17 |
CREDITORS |
Amounts falling due within one year | 18 |
NET CURRENT LIABILITIES | ( | ) | ( | ) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 19 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Retained earnings | ( | ) | ( | ) |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
CRAMLINGTON PRECISION FORGE LIMITED (REGISTERED NUMBER: 04842214) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 MARCH 2025 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 April 2023 | ( | ) | ( | ) |
Changes in equity |
Total comprehensive income | - |
Balance at 31 March 2024 | ( | ) |
Changes in equity |
Total comprehensive income | - |
Balance at 31 March 2025 | ( | ) |
CRAMLINGTON PRECISION FORGE LIMITED (REGISTERED NUMBER: 04842214) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2025 |
1. | GENERAL INFORMATION |
Cramlington Precision Forge Limited ("the Company") is a private company limited by share capital, incorporated in England and Wales. |
The address of its registered office is: |
Hygeia Building |
Rear Ground Floor |
66-68 College Road |
Harrow |
Middlesex |
HA1 1BE |
United Kingdom |
2. | 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 were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006. |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
These financial statements are prepared on a going concern basis, under the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value. |
The financial statements are prepared in Pound Sterling (£), which is the functional currency of the Company. Monetary amounts in these financial statements are rounded to the nearest £. |
Previous year's numbers have been rearranged and regrouped for better presentation wherever it was necessary. |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
• | the requirements of Section 7 Statement of Cash Flows; |
• | the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c); |
• | the requirement of paragraph 33.7. |
This information is included in the consolidated financial statements of its ultimate parent, Sundram Fasteners Limited and these financial statements may be obtained from Sundram Fasteners Limited, 98A, VII Floor, Dr Radhakrishnan Salai, Mylapore, Chennai 600 004, India. |
CRAMLINGTON PRECISION FORGE LIMITED (REGISTERED NUMBER: 04842214) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2025 |
3. | ACCOUNTING POLICIES - continued |
Critical accounting judgements and key sources of estimation uncertainty |
| Significant assumptions and estimates used are as follows: |
| - Provision for slow moving and obsolete inventory |
| Directors provide for slow moving inventory i.e. older than 2 years but less than 3 years at 50% and obsolete inventory which is older than 3 years at 100%. Provision for slow moving and obsolete inventory at the balance sheet date is £Nil (2024 - £57,319). |
| - Provision against receivables |
| Using information available at the balance sheet date, the Directors make assumptions on the estimated debt recovery rates, based on experience, regarding the level of provision required to account for potentially uncollectible receivables. No provision against receivable is recorded in current and previous year. |
Going concern |
The ultimate parent company has indicated a willingness to continue to provide such support, and the Directors, based on their interactions with the ultimate parent are confident that it intends to continue to provide this support. The Directors consider the Company will be able to continue in business for the foreseeable future through the continued support of the ultimate parent. Therefore, the Directors have continued to adopt the going concern basis of accounting in preparing these financial statements. |
Revenue recognition |
Turnover comprises the fair value of the consideration received or receivable for the sale of goods 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 from the sale of goods when the goods are shipped and the title has passed. |
Where the consideration receivable in cash or cash equivalents is deferred, and the arrangement constitutes a financing transaction, the fair value of the consideration is measured as the present value of all future receipts using the imputed rate of interest. |
Intangible assets |
| Intangible assets are initially recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses. |
| Where factors, such as technological advancement or changes in market price, indicate that residual value or useful life have changed, the residual value, useful life or amortisation rate are amended prospectively to reflect the new circumstances. The assets are reviewed for impairment if the above factors indicate that the carrying amount may be impaired. |
| 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 |
| Development costs | 10 years straight line basis |
CRAMLINGTON PRECISION FORGE LIMITED (REGISTERED NUMBER: 04842214) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2025 |
3. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
| Tangible assets are stated in the Balance sheet at cost, less any accumulated depreciation and accumulated impairment losses. |
| The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation. |
| The assets' residual values and useful lives are reviewed, and adjusted, if appropriate, at the end of each reporting period. The effect of any change is accounted for prospectively. |
| Repairs and maintenance costs are expensed as incurred. |
| Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Profit and loss account. |
| Depreciation |
| Depreciation is charged so as to write off the cost of assets over their estimated useful lives, as follows: |
| Asset class | Depreciation method and rate |
| Land and buildings leasehold | 20 years straight line basis |
| Plant and machinery | 3 to 30 years straight line basis |
| Fixtures, fittings and equipment | 3 to 10 years straight line basis |
| Impairment of non-financial assets |
| At each balance sheet date, non-financial assets not carried at fair value are assessed to determine whether there is an indication that the asset (or asset's cash generating unit) may be impaired. If there is such an indication the recoverable amount of the asset (or asset's cash generating unit) is compared to the carrying amount of the asset (or asset's cash generating unit). |
| The recoverable amount of the asset (or asset's cash generating unit) is the higher of the fair value less costs to sell and value in use. Value in use is defined as the present value of the future cash flows before interest and tax obtainable as a result of the asset's (or asset's cash generating unit's) continued use. These cash flows are discounted using a pre-tax discount rate that represents the current risk-free market rate and the risks inherent in the asset. |
| If the recoverable amount of the asset (or asset's cash generating unit) is estimated |
| to be lower than the carrying amount, the carrying amount is reduced to its recoverable amount. An impairment loss is recognised in the Profit and loss account, unless the asset has been revalued when the amount is recognised in other comprehensive income to the extent of any previously recognised revaluation. Thereafter any excess is recognised in the Profit and loss account. |
| If an impairment loss is subsequently reversed, the carrying amount of the asset (or asset's cash generating unit) is increased to the revised estimate of its recoverable amount, but only to the extent that the revised carrying amount does not exceed the carrying amount that would have been determined (net of depreciation or amortisation) had no impairment loss been recognised in prior periods. A reversal of an impairment loss is recognised in the Profit and loss account. |
CRAMLINGTON PRECISION FORGE LIMITED (REGISTERED NUMBER: 04842214) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2025 |
3. | ACCOUNTING POLICIES - continued |
Financial instruments |
| Classification |
| The Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, bank overdraft and loans from related parties. |
| Recognition and measurement |
| Debt instruments (other than those wholly repayable or receivable within one year), including loans and other debtors and creditors, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. |
| Debt instruments that are payable or receivable within one year, typically trade creditors or debtors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration, expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms of financed at a rate of interest that is not a market rate or in case of an out-right short term loan not at a market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost. |
| Impairment |
| Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Profit and loss account. |
| For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discounted rate for measuring any impairment loss is the current effective interest rate determined under the contract. |
| Financial assets and liabilities are offset and the net amount reported in the Balance sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. |
CRAMLINGTON PRECISION FORGE LIMITED (REGISTERED NUMBER: 04842214) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2025 |
3. | ACCOUNTING POLICIES - continued |
Tax |
| The tax expense represents the sum of the current tax expense and deferred tax expense. Current tax assets are recognised when tax paid exceeds the tax payable. |
| Current and deferred tax is charged or credited to the Profit and loss account, except when it relates to items charged or credited to other comprehensive income or equity, when the tax follows the transaction or event it relates to and is also charged or credited to other comprehensive income or equity. |
| Current tax is based on taxable profit for the year. Current tax assets and liabilities are measured using tax rates that have been enacted or substantively enacted by the reporting date. |
| Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities. |
| Deferred tax arises from timing differences that are differences between taxable profits and total comprehensive income as stated in the financial statements. These timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial statements. |
| Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that: |
| - the recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and . |
| - any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met. |
| Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Foreign currency transactions and balances |
| Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured. Exchange differences are taken into account in arriving at operating profit. |
| Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated. |
CRAMLINGTON PRECISION FORGE LIMITED (REGISTERED NUMBER: 04842214) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2025 |
3. | ACCOUNTING POLICIES - continued |
Operating leases |
Leases that do not transfer all the risks and rewards of ownership are classified as operating leases. |
Rentals paid under operating leases are charged to the Profit and loss and other comprehensive income on a straight line basis over the life of the lease. |
Obligations under hire purchase agreements |
Arrangements where the Company acquires the right to use an asset immediately but legal title transfers after payment of all installments are made are classified as hire purchase agreements. |
Where the risks and rewards of ownership substantially transfer to the Company at the start of the agreement, the hire purchase is treated as a finance lease under FRS 102. |
Assets acquired under hire purchase agreements are recognised at the lower of their fair value of the asset and the present value of future minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the hire term or the useful economic life of the asset. A corresponding financial liability is recognised equal to the present value of future payments. The liability is reduced as payments are made, with the finance charge allocated over the period of the agreement using an effective interest method. The finance charge (interest element) is recognised in the Profit and loss account over the hire term on a basis that reflects a constant periodic rate of interest on the remaining balance of the liability. |
Employee benefits |
| The Company provides a range of benefits to employees, including annual bonus arrangements, paid holiday arrangements and defined contribution pension plans. |
| 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. |
| Holiday pay accrual |
| A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the balance sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlements accrued at the balance sheet date. |
CRAMLINGTON PRECISION FORGE LIMITED (REGISTERED NUMBER: 04842214) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2025 |
3. | ACCOUNTING POLICIES - continued |
Interest income |
Interest income is recognised in the Profit and loss account as and when accrued. |
Finance costs |
Finance costs are charged to Profit and loss account over the term of the debt using the effective interest method. |
Cash and cash equivalents |
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less. Bank overdrafts are shown as current liabilities. |
Current assets investments |
Current asset investments include fixed deposits with original maturities of more than three months and measured at fair value which is the amount deposited. |
Trade debtors |
Trade debtors are amounts due from customers for products sold 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 includes all purchase costs (net of trade discounts), import duties, transport, handling, and other directly attributable costs incurred in bringing the inventories to their present location and condition. Cost is determined using the weighted average cost method. This method calculates the cost of inventory based on the average cost of similar items at the beginning of the period and those purchased during the period. |
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 and loss account. |
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. |
Borrowings |
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and loss account over the period of the relevant borrowing. |
CRAMLINGTON PRECISION FORGE LIMITED (REGISTERED NUMBER: 04842214) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2025 |
3. | ACCOUNTING POLICIES - continued |
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges. |
Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date. |
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. |
4. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the Company. |
An analysis of turnover by class of business is given below: |
31.3.25 | 31.3.24 |
£ | £ |
An analysis of turnover by geographical market is given below: |
31.3.25 | 31.3.24 |
£ | £ |
United Kingdom |
Europe |
Rest of the world | 2,769 | 45,492 |
5. | OTHER OPERATING INCOME |
31.3.25 | 31.3.24 |
£ | £ |
Miscellaneous other operating income |
Government grants |
484,616 | 478,941 |
| Interest income on deposits amounting to £14,357 for the previous year have been reclassified from "Other operating income" to "Interest receivable and similar income" in order to correctly reflect the nature of the income. |
CRAMLINGTON PRECISION FORGE LIMITED (REGISTERED NUMBER: 04842214) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2025 |
6. | EMPLOYEES AND DIRECTORS |
| 31.3.25 | 31.3.24 |
| £ | £ |
| Wages and salaries | 2,750,979 | 3,846,040 |
| Social security costs | 271,919 | 325,843 |
| Other pension costs | 214,979 | 230,745 |
| Other employee benefits | 6,782 | 26,447 |
| 3,244,659 | 4,429,075 |
| The average number of employees during the year was as follows: |
| 31.3.25 | 31.3.24 |
| £ | £ |
| Production | 79 | 90 |
| Administration and support | 11 | 14 |
| Director | - | 1 |
| 90 | 105 |
31.3.25 | 31.3.24 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The Company has three directors. During the year, two directors provided advisory services and were remunerated by the Company in respect of those roles. None of the directors received remuneration through the Company's payroll during the current year (one director was on the payroll in the previous year). |
The third director is remunerated by the Company's parent undertaking, Sundram Fasteners Limited. It is impracticable to accurately determine the portion of his total remuneration that relates specifically to services provided to the Company. Comprehensive disclosures regarding directors' remuneration can be found in the financial statements of Sundram Fasteners Limited. |
7. | OPERATING PROFIT |
| The operating profit is stated after charging: |
| 31.3.25 | 31.3.24 |
| £ | £ |
| Operating lease charges | 251,619 | 211,183 |
| Depreciation expense | 264,233 | 294,579 |
| Amortisation expense | 12,125 | 12,125 |
| Foreign exchange losses | 10,475 | 17,935 |
CRAMLINGTON PRECISION FORGE LIMITED (REGISTERED NUMBER: 04842214) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2025 |
8. | AUDITORS' REMUNERATION |
31.3.25 | 31.3.24 |
£ | £ |
Fees payable to the Company's auditors for the audit of the Company's financial statements | 21,000 | 20,000 |
Other non- audit services |
9. | INTEREST RECEIVABLE AND SIMILAR INCOME |
31.3.25 | 31.3.24 |
£ | £ |
Interest income on deposits |
Interest income on deposits amounting to £14,357 for the previous year have been reclassified from "Other operating income" to "Interest receivable and similar income" in order to correctly reflect the nature of the income. |
10. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.3.25 | 31.3.24 |
£ | £ |
Interest on bank overdrafts |
Interest payable on loans from group undertakings |
Interest on obligations under hire purchase agreements |
11. | TAXATION |
Analysis of the tax charge |
No liability to UK corporation tax arose for the year ended 31 March 2025 nor for the year ended 31 March 2024. |
CRAMLINGTON PRECISION FORGE LIMITED (REGISTERED NUMBER: 04842214) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2025 |
11. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
31.3.25 | 31.3.24 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2024 - |
Effects of: |
Expenses not deductible for tax purposes | ( | ) |
Capital allowances in excess of depreciation | ( | ) | - |
Depreciation in excess of capital allowances | - |
Utilisation of tax losses | ( | ) | ( | ) |
Total tax charge | - | - |
| The Company has unutilised trading losses available for carry forward against future trading profits of £1,627,225 (2024: £2,449,40) and unutilised non-trade loan relationship loss of £290,314 (2024: £290,314). |
12. | INTANGIBLE FIXED ASSETS |
Development |
costs |
£ |
COST |
At 1 April 2024 |
and 31 March 2025 |
AMORTISATION |
At 1 April 2024 |
Amortisation for year |
At 31 March 2025 |
NET BOOK VALUE |
At 31 March 2025 |
At 31 March 2024 |
| Development cost pertains cost capitalised for development of parts for a specific customer. The asset is carried at £75,783 (2024: £87,908) and has a remaining amortisation period of 6.25 years (2024: 7.25 years). |
CRAMLINGTON PRECISION FORGE LIMITED (REGISTERED NUMBER: 04842214) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2025 |
13. | TANGIBLE FIXED ASSETS |
Fixtures | Assets |
Long | Plant and | and | under |
leasehold | machinery | fittings | construction | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 April 2024 |
Additions |
Reclassification/transfer | ( | ) |
At 31 March 2025 |
DEPRECIATION |
At 1 April 2024 |
Charge for year |
At 31 March 2025 |
NET BOOK VALUE |
At 31 March 2025 |
At 31 March 2024 |
| At 31 March 2024 plant and machinery cost of £739,022 has been re-classified to assets under construction to correctly reflect that they were not operational. Assets under construction will be transferred once they are deemed to be operational. |
| The net carrying amount of assets purchased under hire purchase agreements included in plant and machinery is £144,334 (2024: £172,368) and the depreciation charged on such assets totals to £28,034 (2024:£28,034). |
14. | STOCKS |
31.3.25 | 31.3.24 |
£ | £ |
Raw materials and consumables | 574,590 | 666,062 |
Work-in-progress |
Finished goods and goods for resale |
15. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.3.25 | 31.3.24 |
£ | £ |
Trade debtors |
Other debtors |
Prepayments |
CRAMLINGTON PRECISION FORGE LIMITED (REGISTERED NUMBER: 04842214) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2025 |
16. | CURRENT ASSET INVESTMENTS |
31.3.25 | 31.3.24 |
£ | £ |
Fixed deposits |
Fixed deposits amounting to £642,994 have been reclassified from "Cash and cash equivalents" to "Investments" for the year ended 31 March 2024, in order to correctly reflect the liquidity profile. |
17. | CASH AND CASH EQUIVALENTS |
31.3.25 | 31.3.24 |
£ | £ |
Cash in hand |
Fixed deposits amounting to £642,994 have been reclassified from "Cash and cash equivalents" to "Investments" for the year ended 31 March 2024, in order to correctly reflect the liquidity profile. |
18. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.3.25 | 31.3.24 |
£ | £ |
Trade creditors |
Amounts owed to group undertakings |
Social security and other taxes |
Other payables |
Outstanding defined contribution pension costs | 49,832 | 28,019 |
Bank overdraft* | 2,859,173 | 2,877,517 |
Obligation under hire purchase agreements (refer note 21) | 51,379 | 57,032 |
Accrued expenses |
| *Bank overdraft is secured by fixed and floating charges. First fixed charge over book and other debts, chattels, goodwill and uncalled capital, both present and future. First floating charge over all assets and undertaking both present and future. |
| Amounts owed to group undertakings include interest-free short-term loans from group undertakings that are unsecured and repayable on demand. |
| The Company has reclassified interest on non current loan of £98,816 from " Creditors:- Amount falling due within one year" to "Creditors:- Amounts falling due after more than one year" for the year ended 31 March 2024, in order to correctly reflect the maturity profile. |
| Obligations under hire purchase agreements have been reclassified from bank overdraft. |
CRAMLINGTON PRECISION FORGE LIMITED (REGISTERED NUMBER: 04842214) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2025 |
19. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
31.3.25 | 31.3.24 |
£ | £ |
Amounts owed to group undertakings |
Obligation under hire purchase agreements (refer note 21) | 27,804 | 68,873 |
| Amounts owed to group undertakings includes loans taken from holding company incurring interest at 2.61%/2.92% per annum , are unsecured and repayable on 7 September 2026 and 15 December 2026 respectively. |
| The Company has reclassified interest on non current loan of £98,816 from " Creditors:- Amount falling due within one year" to "Creditors:- Amounts falling due after more than one year" for the year ended 31 March 2024, in order to correctly reflect the maturity profile. |
20. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.3.25 | 31.3.24 |
value: | £ | £ |
Ordinary shares | 1 | 1,400,000 | 1,400,000 |
| There is a single class of ordinary shares. There are no restrictions on the distribution of dividends and the repayment of capital. |
CRAMLINGTON PRECISION FORGE LIMITED (REGISTERED NUMBER: 04842214) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2025 |
21. | COMMITMENTS UNDER LEASES |
Obligations under hire purchase agreements |
The total of future payments is as follows: |
31.3.25 | 31.3.24 |
£ | £ |
Not later than one year | 55,379 | 56,834 |
Later than one year and not later than five years | 28,090 | 79,252 |
Less: Interest | (4,286 | ) | (10,180 | ) |
79,183 | 125,905 |
Operating lease |
The lease rental expense recognised in the Profit and loss account for the year is £251,619 (2024 - £211,183). |
As at 31 March 2025, the Company has future minimum lease payments under non-cancellable operating leases as follows: |
31.3.25 | 31.3.24 |
£ | £ |
Not later than one year | 248,016 | 162,605 |
Later than one year and not later than five years | 274,983 | 197,412 |
522,999 | 360,017 |
22. | PENSION AND OTHER SCHEMES |
Defined contribution pension scheme |
The Company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the Company to the scheme and amounted to £214,979 (2024 - £230,745). |
Contributions totalling £49,832 (2024 - £28,019) were payable to the scheme at the end of the year and are included in creditors. |
23. | RELATED PARTY TRANSACTIONS |
The Company has taken advantage of the exemption contained in FRS 102 Section 33 "Related Party Disclosures" from disclosing transactions with entities which are a wholly owned part of the group. |
Key management personnel are considered to be the directors. Directors' remunerations have been disclosed under note 6. |
24. | PARENT AND ULTIMATE PARENT UNDERTAKING |
The Company's immediate parent is Sundram International Limited which is incorporated in England and Wales. |
The ultimate parent company is Sundram Fasteners Limited which is incorporated in India. |