REGISTERED NUMBER:
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Unaudited Financial Statements |
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for the Year Ended 29 February 2020 |
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for |
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GK General Engineering Limited |
REGISTERED NUMBER:
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Unaudited Financial Statements |
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for the Year Ended 29 February 2020 |
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for |
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GK General Engineering Limited |
GK General Engineering Limited (Registered number: 01697708) |
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Contents of the Financial Statements |
for the Year Ended 29 February 2020 |
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Company Information | 1 |
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Balance Sheet | 2 |
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Notes to the Financial Statements | 4 |
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GK General Engineering Limited |
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Company Information |
for the Year Ended 29 February 2020 |
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DIRECTOR: |
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SECRETARY: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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ACCOUNTANTS: |
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Chartered Accountants |
50 Osmaston Road |
Derby |
DE1 2HU |
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BANKERS: |
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58 St Peter's Street |
Derby |
Derbyshire |
DE1 1XL |
GK General Engineering Limited (Registered number: 01697708) |
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Balance Sheet |
29 February 2020 |
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2020 | 2019 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 5 |
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CURRENT ASSETS |
Stocks | 6 |
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Debtors | 7 |
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Cash at bank |
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CREDITORS |
Amounts falling due within one year | 8 |
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NET CURRENT ASSETS |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
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PROVISIONS FOR LIABILITIES |
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NET ASSETS |
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CAPITAL AND RESERVES |
Called up share capital |
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Revaluation reserve | 9 |
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Retained earnings |
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The director acknowledges her responsibilities for: |
(a) | ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and |
(b) | preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company. |
GK General Engineering Limited (Registered number: 01697708) |
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Balance Sheet - continued |
29 February 2020 |
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In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered. |
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The financial statements were approved by the director and authorised for issue on
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GK General Engineering Limited (Registered number: 01697708) |
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Notes to the Financial Statements |
for the Year Ended 29 February 2020 |
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1. | STATUTORY INFORMATION |
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GK General Engineering Limited is a
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The presentation currency of the financial statements is the Pound Sterling (£). |
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2. | STATEMENT OF COMPLIANCE |
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3. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
The financial statements have been prepared under the historical cost convention. |
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Going Concern |
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The Company made a profit for the year of £47,290 (2019: £74,047) and there are net current assets at 29 February 2020 of £454,972 (2019: £407,202). The director has prepared the financial statements on the going concern basis which assumes that the company will continue to trade for the foreseeable future. The validity of the assumption is based on the directors' assessment of future cash forecasts and revenue projections and for the reasons set out below. |
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Coronavirus |
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As at the date of approving these financial statements, the impact of COVID-19 on the Company's trading is continually being assessed and subject to rapid change. Our 'base case' assumption is that the coronavirus pandemic will impact on trade for the rest of 2020. We then anticipate following a relaxation of governmental restrictions on businesses and the ability of citizens to move freely an improvement in the outlook for the business. This base case then assumes a recovery to more normalised trading levels in the following months as new contracts are taken on by the company. |
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The director believes that from the date of approval of these financial statements under the forecasted scenario, the company will have sufficient funds to meet its liabilities as they fall due for the following twelve months. Under this scenario there would be no significant additional bank borrowings. |
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During this period the business is currently taking appropriate measures to preserve liquidity. |
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The following mitigating actions have been built into the base case scenario; |
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Regarding permanent staff members, government assistance has been available to offset costs that continue to be incurred. Where possible, and subject to regulations, staffing levels and the hours of operation can be reduced in accordance with the level of demand necessary to deliver on contracts. |
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The company's future plans do not include significant capital expenditure other than on the replacement of vehicles. No further expenditure is currently contracted and any that is due to take place can therefore be delayed which also helps to preserve cash. |
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Essential expenditure to ensure the health and safety of customers and staff will continue where required and in accordance with government advice. |
GK General Engineering Limited (Registered number: 01697708) |
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Notes to the Financial Statements - continued |
for the Year Ended 29 February 2020 |
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The company is also able to take advantage of the UK Government concessions over tax payments. |
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The director has considered all variable expenditure, reducing it where possible and have been able to delay and/or cancel expenditure in several areas. |
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It is currently very difficult to assess how the COVID-19 situation will evolve. The Director believes that it remains appropriate to prepare the financial statements on a going concern basis. The financial statements do not include any adjustments that would result from the basis of preparation being inappropriate. |
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Judgements and key sources of estimation uncertainty |
The preparation of the financial statement requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgements have had the most significant effect on amounts recognised in the financial statements:- |
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Revaluation of land and buildings |
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The company carries its land and buildings at fair value with changes in fair value being recognised in comprehensive income. The current valuation used the most recent valuation report prepared by independent valuation specialists to determine fair value at 28 February 2019. The valuer used a valuation technique which took account of the estimate of fair maintainable turnover and the marketability of the property. The determined fair value of the property is most sensitive to the estimated yield as well as the long term vacancy rate. |
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Coronavirus |
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As at 31 December 2019 China had alerted the World Health Organisation (WHO) of several cases of an unusual form of pneumonia in Wuhan. However, substantive information about what has now been identified as coronavirus (or COVID-19) only came to light in early 2020. |
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The impact of the coronavirus pandemic will cause disruption to and create uncertainty around the business, not least with regard to its working capital and the ability of its customers to pay now and into the future and whether it needs to impair its assets. Any disruption or uncertainty could have an adverse effect on the business, financial results and operations. |
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The full impact of the coronavirus is still to be determined and the director continues to assess and monitor the potential risks and impacts on GK General Engineering Limited's customers and major stakeholders, whilst taking appropriate mitigation measures to address challenges including logistics, staff and supply. |
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Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
GK General Engineering Limited (Registered number: 01697708) |
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Notes to the Financial Statements - continued |
for the Year Ended 29 February 2020 |
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3. | ACCOUNTING POLICIES - continued |
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Tangible fixed assets |
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Freehold property | - |
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Plant and machinery | - |
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Fixtures & fittings, office equipment | - |
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Motor vehicles | - |
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The Directors consider it inappropriate to provide depreciation on freehold land and buildings as it is their practice to maintain the properties in a continual state of sound repair such that their useful lives are so long and residual values so high that depreciation is felt to be insignificant.The financial statements comply with accounting standards and applicable legislation, subject to this departure which management has concluded is required to ensure the financial statements present a true and fair view. |
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Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairments losses. |
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The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss. |
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Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
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Debtors and creditors receivable/payable within one year |
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in administrative expenses. |
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Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
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Current or deferred taxation assets and liabilities are not discounted. |
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Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
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Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
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Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
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Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
GK General Engineering Limited (Registered number: 01697708) |
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Notes to the Financial Statements - continued |
for the Year Ended 29 February 2020 |
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3. | ACCOUNTING POLICIES - continued |
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Hire purchase and leasing commitments |
Tangible fixed assets acquired under finance leases or hire purchase contracts are capitalised and depreciated in the same manner as other tangible fixed assets. The related obligations, net of future finance charges, are included in creditors. Rentals payable under under operating leases are charged to the Profit and Loss Account on a straight line basis over the period of the lease. |
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Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
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Cash and cash equivalents |
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. |
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Impairment |
Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss. |
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Provisions |
Provisions are recognised when the company has an obligation at the balance sheet date as a result of a past event, it is probable that the outflow of economic benefits will be required in settlement and the amount can be reliably estimated. |
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4. | EMPLOYEES AND DIRECTORS |
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The average number of employees during the year was
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5. | TANGIBLE FIXED ASSETS |
Fixtures |
& fittings, |
Freehold | Plant and | office | Motor |
property | machinery | equipment | vehicles | Totals |
£ | £ | £ | £ | £ |
COST OR VALUATION |
At 1 March 2019 |
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Additions |
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At 29 February 2020 |
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DEPRECIATION |
At 1 March 2019 |
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Charge for year |
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At 29 February 2020 |
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NET BOOK VALUE |
At 29 February 2020 |
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At 28 February 2019 |
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GK General Engineering Limited (Registered number: 01697708) |
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Notes to the Financial Statements - continued |
for the Year Ended 29 February 2020 |
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5. | TANGIBLE FIXED ASSETS - continued |
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The directors have not provided depreciation on the freehold property in the current year which is a departure from the requirements of the Financial Reporting Standard 102. Given the continued current use of the property and its position on an industrial estate the directors believe this isolated instance of non-adherence to the provisions of the Financial Reporting Standard 102 does not impact on the true and fair view of the financial statements. |
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6. | STOCKS |
2020 | 2019 |
£ | £ |
Stocks |
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7. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2020 | 2019 |
£ | £ |
Trade debtors |
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Prepayments |
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8. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2020 | 2019 |
£ | £ |
Payments on account |
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Trade creditors |
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Corporation tax |
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Social security and other taxes |
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Other creditors |
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Directors' current accounts | 112,203 | 110,517 |
Accruals |
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9. | RESERVES |
Revaluation |
reserve |
£ |
At 1 March 2019 |
and 29 February 2020 |
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