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T & R TEST (HOLDINGS) LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
T & R Test (Holdings) Limited is a private company limited by shares incorporated in England and Wales. The address of the registered office is disclosed on the company information page.
2.
Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of
Financial Reporting Standard 102, the Financial Reporting Standard applicable in
the UK and the Republic of Ireland and the Companies Act 2006
.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies.
The emergence and spread of COVID-19 in 2020, the associated social distancing measures and imposed travel restrictions have significantly impacted businesses globally. As a result of the pandemic, the Company's trading subsidiaries have been impacted by a reduction in customer orders, reflecting the temporary cessation of operations for many customers as well as ongoing uncertainty in the wider economic environment.
Whilst COVID-19 has had a significant impact on operations during the year, it is now possible to more reliably forecast the full long-term extent of its impact on the Company. A strong financial position prior to the pandemic has enabled the Company's trading subsidiary to continue meeting its liabilities as they fall due.
As the UK government has encouraged manufacturers to continue production despite restrictions throughout 2020 and into the third quarter of 2021, the directors are able to forecast with reasonable certainty the Company's trading subsidiary expected cash flows for the short to medium term. Based on a review of the order pipeline and discussions with key customers, a further significant reduction in revenue is not expected, and with the strength of the current financial position, a well controlled cost base and the continued careful management of margins the directors are satisfied that the Company and its trading subsidiaries will be able to continue in operation for a period of at least twelve months from the date of approval of these financial statements.
The directors therefore consider that the going concern basis of preparation continues to be appropriate.
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Exemption from preparing consolidated financial statements
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The Company, and the Group headed by it, qualify as small as set out in Section 383 of the Companies Act 2006 and the parent and Group are considered eligible for the exemption to prepare consolidated accounts.
Investments in subsidiaries are measured at cost less accumulated impairment.
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
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The average monthly number of employees, including directors, during the year was
2
(2019 -
2
)
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