Arrow Embroidery Limited - Period Ending 2014-07-31

Registration number: 07245492

Arrow Embroidery Limited

Unaudited Abbreviated Accounts

for the Year Ended 31 July 2014
 

Tahas
Certified Accountants & Tax Advisors
Suite 2
4 Town Quay Wharf
Abbey Road
Barking
Essex
IG11 7BZ

Arrow Embroidery Limited
Contents

Accountants' Report 1

Abbreviated Balance Sheet 2

Notes to the Abbreviated Accounts 3 to 4

The following reproduces the text of the accountants' report in respect of the company's annual financial statements, from which the abbreviated accounts (set out on pages 2 to 4) have been prepared.

Chartered Certified Accountants' Report to the Director on the Preparation of the Unaudited Statutory Accounts of
Arrow Embroidery Limited
for the Year Ended 31 July 2014

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of Arrow Embroidery Limited for the year ended 31 July 2014 set out on pages from the company's accounting records and from information and explanations you have given us.

As a practising member firm of the Association of Chartered Certified Accountants, we are subject to its ethical and other professional requirements which are detailed at http://www.accaglobal.com/en/member/professional-standards/rules-standards/acca-rulebook.html.

This report is made solely to the Board of Directors of Arrow Embroidery Limited, as a body, in accordance with the terms of our engagement letter. Our work has been undertaken solely to prepare for your approval the accounts of Arrow Embroidery Limited and state those matters that we have agreed to state to them, as a body, in this report in accordance with the requirements of the Association of Chartered Certified Accountants as detailed at http://www2.accaglobal.com/pubs/members/publications/technical_factsheets/downloads/163.doc. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Arrow Embroidery Limited and its Board of Directors as a body for our work or for this report.

It is your duty to ensure that Arrow Embroidery Limited has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and profit of Arrow Embroidery Limited. You consider that Arrow Embroidery Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the accounts of Arrow Embroidery Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory accounts.

......................................

Tahas
Certified Accountants & Tax Advisors
Suite 2
4 Town Quay Wharf
Abbey Road
Barking
Essex
IG11 7BZ

Date:.............................

Page 1

Arrow Embroidery Limited
(Registration number: 07245492)
Abbreviated Balance Sheet at 31 July 2014

		Note			2014 £			2013 £
Fixed assets
Intangible fixed assets					13,000			26,000
Tangible fixed assets					43,401			19,655
					56,401			45,655
Current assets
Stocks					5,651			3,498
Debtors					185,121			55,718
Cash at bank and in hand					9,148			30,446
					199,920			89,662
Creditors: Amounts falling due within one year					(254,268)			(133,532)
Net current liabilities					(54,348)			(43,870)
Net assets					2,053			1,785
Capital and reserves
Called up share capital		3			100			100
Profit and loss account					1,953			1,685
Shareholders' funds					2,053			1,785

For the year ending 31 July 2014 the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.

The director acknowledges his responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime .

Approved by the director on 6 March 2015

.........................................
Mr Arvinderpal Singh Virdi
Director

The notes on pages 3 to 4 form an integral part of these financial statements.
Page 2

Arrow Embroidery Limited
Notes to the Abbreviated Accounts for the Year Ended 31 July 2014
......... continued

1	Accounting policies

Basis of preparation

The full financial statements, from which these abbreviated accounts have been extracted, have been prepared under the historical cost convention and in accordance with the Financial Reporting Standard for Smaller Entities (Effective April 2008).

Turnover

Turnover represents amounts chargeable, net of value added tax, in respect of the sale of goods and services to customers.

Goodwill

Positive goodwill is capitalised, classified as an asset on the balance sheet and amortised on a straight line basis over its useful economic life. It is reviewed for impairment at the end of the first full financial year following the acquisition and in other periods if events or changes in circumstances indicate that the carrying value may not be recoverable.

Amortisation

Amortisation is provided on intangible fixed assets so as to write off the cost, less any estimated residual value, over their expected useful economic life as follows:

Asset class	Amortisation method and rate
Goodwill	W/off over 5 yrs

Depreciation

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:

Asset class	Depreciation method and rate
P & M	25% straight line basis
F & F	25% straight line basis

Stock

Stock is valued at the lower of cost and net realisable value, after due regard for obsolete and slow moving stocks. Net realisable value is based on selling price less anticipated costs to completion and selling costs.

Hire purchase and leasing

Rentals payable under operating leases are charged in the profit and loss account on a straight line basis over the lease term.

Financial instruments

Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability in the balance sheet. The corresponding dividends relating to the liability component are charged as interest expense in the profit and loss account.

Page 3

Arrow Embroidery Limited
Notes to the Abbreviated Accounts for the Year Ended 31 July 2014
......... continued

2	Fixed assets

		Intangible assets £			Tangible assets £			Total £
Cost
At 1 August 2013		65,000			46,589			111,589
Additions		-			38,213			38,213
At 31 July 2014		65,000			84,802			149,802
Depreciation
At 1 August 2013		39,000			26,934			65,934
Charge for the year		13,000			14,467			27,467
At 31 July 2014		52,000			41,401			93,401
Net book value
At 31 July 2014		13,000			43,401			56,401
At 31 July 2013		26,000			19,655			45,655

3	Share capital

Allotted, called up and fully paid shares

	2014						2013
		No.			£			No.			£
Ordinary of £1 each		100			100			100			100

4	Related party transactions

Director's advances and credits

	2014 Advance/ Credit £	2014 Repaid £	2013 Advance/ Credit £	2013 Repaid £
Mr Arvinderpal Singh Virdi
Balance c/fwd	14,010	-	-	2,838
Drawings	227,291	-	215,388	-
Dividends Declared	-	100,000	-	85,000
Repaid	-	92,648	-	113,540
	241,301	192,648	215,388	201,378

Page 4