At the balance sheet date, the company owed £4,201 to C McGuren, a director of the company. This balance is unsecured, interest free and repayable on demand.

At the balance sheet date, the company had no material financial commitments, guarantees or contingent liabilities not otherwise provided for in these financial statements.

Basis Of Preparaton

These financial statements have been prepared in accordance with FRS 105 The Financial Reporting Standard applicable to the Micro-entities Regime. The company qualifies as a micro-entity and has taken advantage of the reduced disclosure framework available under this standard. The financial statements have been prepared on the historical cost basis.

Accounting Policies

Turnover

Turnover represents the invoiced value of goods/services supplied to customers during the year, excluding value added tax.

Tangible Fixed Assets

Tangible fixed assets are measured at cost less accumulated depreciation. Depreciation is calculated to write down the cost of assets over their estimated useful economic lives on a straight-line basis as follows:

• Plant and machinery 25% per annum
• Fixtures and fittings 25% per annum
• Computer equipment 25% per annum

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 and other costs incurred in bringing the stocks to their present location and condition.

Financial Instruments

The company only holds basic financial instruments. Trade debtors and creditors are measured at transaction price. Bank loans and other borrowings are measured at the amount of cash received, net of any transaction costs.