Company Registration No. SC259692 (Scotland)
DYNAM LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2020
PAGES FOR FILING WITH REGISTRAR
DYNAM LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 8
DYNAM LIMITED
BALANCE SHEET
AS AT 31 MAY 2020
31 May 2020
- 1 -
2020
2019
Notes
£
£
£
£
Fixed assets
Goodwill
3
4,400
6,600
Tangible assets
4
16,031
15,765
20,431
22,365
Current assets
Debtors
5
194,885
276,705
Cash at bank and in hand
18,935
3,359
213,820
280,064
Creditors: amounts falling due within one year
6
(186,247)
(276,889)
Net current assets
27,573
3,175
Total assets less current liabilities
48,004
25,540
Creditors: amounts falling due after more than one year
7
(4,859)
(14,829)
Provisions for liabilities
Deferred tax liability
2,733
2,372
(2,733)
(2,372)
Net assets
40,412
8,339
Capital and reserves
Called up share capital
8
102
102
Profit and loss reserves
40,310
8,237
Total equity
40,412
8,339
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
DYNAM LIMITED
BALANCE SHEET (CONTINUED)
AS AT 31 MAY 2020
31 May 2020
- 2 -
For the financial year ended 31 May 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
T
he members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476
.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 19 May 2021 and are signed on its behalf by:
K Green
Director
Company Registration No. SC259692
DYNAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2020
- 3 -
1
Accounting policies
Company information
Dynam Limited
(SC259692),
is a
private
company
limited by shares
incorporated in Scotland.
The registered office is
Wester Inshes Farmhouse, Inverness, IV2 5BG.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business
, and
is shown net of VAT and other sales related taxes
.
The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the company and the turnover can be reliably measured.
1.3
Intangible fixed assets - goodwill
Acquired goodwill is written off in equal annual instalments over its estimated useful economic life of
1
0 years.
1.4
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Plant and machinery
25% straight line
Fixtures, fittings & equipment
20% reducing balance
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 the statement of income and retained earnings.
1.5
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
DYNAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2020
1
Accounting policies
(Continued)
- 4 -
1.6
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash in hand
and
deposits held at call with banks
.
1.7
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally 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.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
Impairment of financial assets
Financial assets, other than those
held
at
fair value through the statement of income and retained earnings
, are assessed for indicators of impairment at each reporting end date.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when
the company
transfers the financial asset and substantially all the risks and rewards of ownership to another entity
.
Basic financial liabilities
Basic financial liabilities, including
trade and other creditors
, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations
expire or are discharged or cancelled.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
DYNAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2020
1
Accounting policies
(Continued)
- 5 -
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the
statement of income and retained earnings
because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and 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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.10
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
1.11
Invoice financing arrangement
The company has an invoice financing arrangement with its bankers. Financed debts are included in full as trade debtors and the proceeds from the invoice financing arrangement are included in bank loans and overdrafts.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 22 (2019 - 17
).
DYNAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2020
- 6 -
3
Intangible fixed assets
Goodwill
£
Cost
At 1 June 2019 and 31 May 2020
22,000
Amortisation and impairment
At 1 June 2019
15,400
Amortisation charged for the year
2,200
At 31 May 2020
17,600
Carrying amount
At 31 May 2020
4,400
At 31 May 2019
6,600
4
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 June 2019
29,061
Additions
5,924
At 31 May 2020
34,985
Depreciation and impairment
At 1 June 2019
13,296
Depreciation charged in the year
5,658
At 31 May 2020
18,954
Carrying amount
At 31 May 2020
16,031
At 31 May 2019
15,765
5
Debtors
2020
2019
Amounts falling due within one year:
£
£
Trade debtors
102,844
80,177
Other debtors
92,041
196,528
194,885
276,705
DYNAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2020
- 7 -
6
Creditors: amounts falling due within one year
2020
2019
£
£
Bank loans and overdrafts
42,839
68,239
Trade creditors
22,643
113,489
Corporation tax
29,611
9,671
Other taxation and social security
69,991
35,410
Other creditors
21,163
50,080
186,247
276,889
The aggregate amount of secured liabilities due within one year is £42,839 (2019 - £68,239). The bank loan and invoice factoring account are secured via a floating charge over the assets of the company.
7
Creditors: amounts falling due after more than one year
2020
2019
£
£
Bank loans and overdrafts
4,859
14,829
The aggregate amount of secured liabilities due after one year is £4,859 (2019 - £14,829). The bank loan is secured via a floating charge over the assets of the company.
8
Called up share capital
2020
2019
£
£
Ordinary share capital
Issued and fully paid
100 Ordinary shares of £1 each
100
100
1 Ordinary "A" share of £1 each
1
1
1 Ordinary "B" share of £1 each
1
1
102
102
The Ordinary "A" share and Ordinary "B" share rank pari passu in regard to entitlement to dividend, except that the directors may at any time resolve to declare a dividend and amount of dividend on one or more classes of share.
DYNAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2020
- 8 -
9
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2020
2019
£
£
Within one year
4,454
4,454
10
Events after the reporting date
The directors continue to closely monitor the risks posed by the ongoing COVID-19 global pandemic to ensure that any potential impact on the business is mitigated as far as possible.
11
Related party transactions
The following amounts were outstanding at the reporting end date:
2020
2019
Amounts due from related parties
£
£
Entities with control, joint control or significant influence over the company
37,049
37,049
These loans are unsecured, interest free and have no fixed terms of repayment.
12
Directors' transactions
Interest free loans have been granted by the company to its directors as follows:
Description
% Rate
Opening balance
Amounts repaid
Closing balance
£
£
£
Directors
-
16,776
(14,794)
1,982
16,776
(14,794)
1,982
The above loans are unsecured and have no fixed terms for repayment.