Correct Contract Services Limited - Abbreviated accounts 16.1

REGISTERED NUMBER: 06368614 (England and Wales)

ABBREVIATED UNAUDITED ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2016

FOR

CORRECT CONTRACT SERVICES LIMITED

Page

Abbreviated Balance Sheet

1

Notes to the Abbreviated Accounts

2

FIXED ASSETS

Tangible assets

2

79,057

8,352

CURRENT ASSETS

Stocks

65,002

69,492

Debtors

367,818

532,123

Cash at bank and in hand

241,058

144,900

673,878

746,515

CREDITORS

Amounts falling due within one year

3

525,789

543,086

NET CURRENT ASSETS

148,089

203,429

TOTAL ASSETS LESS CURRENT LIABILITIES

227,146

211,781

CREDITORS

Amounts falling due after more than one year

3

427,838

558,881

NET LIABILITIES

(200,692

)

(347,100

)

CAPITAL AND RESERVES

Called up share capital

4

1,000

1,000

Profit and loss account

(201,692

)

(348,100

)

SHAREHOLDERS' FUNDS

(200,692

)

(347,100

)

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2016.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2016 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their 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.

The abbreviated accounts have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

The financial statements were approved by the Board of Directors on 28 June 2016 and were signed on its behalf by:

Mr D L Gladwyn - Director

1.	ACCOUNTING POLICIES

Accounting convention

The financial statements have been prepared under the historical cost convention and in accordance with the

Financial Reporting Standard for Smaller Entities (effective January 2015).

Turnover

The turnover shown in the profit and loss account represents amounts invoiced during the year, exclusive of

Value Added Tax.

In respect of long-term contracts and contracts for on-going services, turnover represents the value of work done

in the year, including estimates of amounts not invoiced. Turnover in respect of long-term contracts and

contracts for on-going services is recognised by reference to the stage of completion.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Improvements to property

-

20% straight line

Plant and machinery

-

20% straight line

Fixtures and fittings

-

20% straight line

Motor vehicles

-

20% straight line

Equipment

-

Straight line over 3 years

All fixed assets are initially recorded at cost.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and

slow moving items.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the

balance sheet date where transactions or events have occurred at that date that will result in an obligation to pay

more, or a right to pay less or to receive more tax, with the following exceptions:

Provision is made for tax on gains arising from the revaluation (and similar fair value adjustments) of fixed

assets, and gains on disposal of fixed assets that have been rolled over into replacement assets, only to the

extent that, at the balance sheet date, there is a binding agreement to dispose of the assets concerned.

However, no provision is made where, on the basis of all available evidence at the balance sheet date, it is more

likely than not that the taxable gain will be rolled over into replacement assets and charged to tax only where the

replacement assets are sold.

Deferred tax assets are recognised only to the extent that the directors consider that it is more likely than not that

there will be suitable taxable profits from which the future reversal of the underlying timing differences can be

deducted.

Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in

which timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance

sheet date.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the

balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling

at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those

held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance

leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to the profit and loss account over the relevant period. The

capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to the profit and loss account on a straight line basis over the

period of the lease.

Financial instruments

Financial instruments are classified and accounted for, according to the substance of the contractual

arrangement, as either 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.

2.	TANGIBLE FIXED ASSETS

Total

£

COST

At 1 April 2015

44,077

Additions

79,944

Disposals

(9,261

)

At 31 March 2016

114,760

DEPRECIATION

At 1 April 2015

35,725

Charge for year

9,239

Eliminated on disposal

(9,261

)

At 31 March 2016

35,703

NET BOOK VALUE

At 31 March 2016

79,057

At 31 March 2015

8,352

3.

CREDITORS

Creditors include an amount of £ 173,431 (2015 - £ 199,343 ) for which security has been given.

4.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2016

2015

value:

£

£

1,000

Ordinary

£1

1,000

1,000

5.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 31 March 2016 and

31 March 2015:

2016

2015

£

£

Mr D L Gladwyn

Balance outstanding at start of year

9,971

8,063

Amounts advanced

-

33,659

Amounts repaid

(25,750

)

(31,751

)

Balance outstanding at end of year

(15,779

)

9,971

The loan was unsecured with repayment date unspecified. Interest is paid on overdrawn balances at HM

Revenue & Customs approved rates.

During the year, the directors loan account of Mr D L Gladwyn was overdrawn by a maximum of £9,971 (2015:

£21,104).

6.	POST BALANCE SHEET EVENTS

During the previous year the company entered into a Company Voluntary Arrangement. The arrangement

included £711,170 of creditors and the company was required to make no fewer than 66 monthly voluntary

contributions of not less than £6,981. The arrangement was not capable of successful completion until all

unsecured, non preferential creditors claiming in the arrangement had received a minimum of 60 pence in the

pound.

The company has made payments in respect of the Company Voluntary Arrangement totalling £142,854 (2015:

£59,096). At the year end, included in other creditors less than one year is £93,193 (2015: £93,193) in

connection with the Company Voluntary Arrangement and included in other creditors greater than one year is

£416,027 (2015: £558,881).

The Company Voluntary Arrangement (CVA) was varied in the current financial period whereby all creditors

claiming in the CVA agreed to accept 40 pence in place of 60 pence in the pound in full and final settlement

provided that any amounts due would be paid within 30 days of the amended agreement. Such payments have

been made and on 12th May 2016 Notice to Registrar of Companies of Completion of Voluntary Arrangement

was filed. Application of the amendments to the CVA enhance Reserves and thereby Shareholders' Funds in

excess of £300,000.