Scotshirts Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: SC185632 (Scotland)

Abridged Financial Statements

for the Year Ended 31 March 2018

for

Scotshirts Limited

Page

Company Information

1

Abridged Statement of Financial Position

2

Notes to the Financial Statements

4

DIRECTOR:

N Freedman

SECRETARY:

Mrs G Freedman

REGISTERED OFFICE:

Unit 6

Bankhead Workspace

10 Bankhead Terrace

Edinburgh

EH11 4DY

REGISTERED NUMBER:

SC185632 (Scotland)

ACCOUNTANTS:

Gibson McKerrell Brown LLP

Chartered Accountants

14 Rutland Square

Edinburgh

Midlothian

EH1 2BD

BANKERS:

Bank of Scotland

7 Wolseley Place

Edinburgh

EH8 7AD

FIXED ASSETS

Intangible assets

4

3,566

5,322

Tangible assets

5

51,984

57,437

55,550

62,759

CURRENT ASSETS

Stocks

15,500

16,000

Debtors

135,282

123,634

Cash in hand

748

-

151,530

139,634

CREDITORS

Amounts falling due within one year

208,902

194,250

NET CURRENT LIABILITIES

(57,372

)

(54,616

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(1,822

)

8,143

CREDITORS

Amounts falling due after more than one year

6

(53,017

)

(68,354

)

PROVISIONS FOR LIABILITIES

9

(9,486

)

(10,985

)

NET LIABILITIES

(64,325

)

(71,196

)

CAPITAL AND RESERVES

Called up share capital

2

2

Retained earnings

(64,327

)

(71,198

)

SHAREHOLDERS' FUNDS

(64,325

)

(71,196

)

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2018.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2018 in accordance with Section 476 of the Companies Act 2006.

The director acknowledges his 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 financial statements have been prepared and delivered in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

All the members have consented to the preparation of an abridged Statement of Financial Position for the year ended 31 March 2018 in accordance with Section 444(2A) of the Companies Act 2006.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the director on 22 October 2018 and were signed by:

N Freedman - Director

1.	STATUTORY INFORMATION

Scotshirts Limited is a private company, limited by shares , registered in Scotland. The company's registered

number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with the provisions of Section 1A "Small Entities" of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates,

value added tax and other sales taxes. Turnover is attributable to the company's principal activity of garment

production and screenprinting.

Intangible assets

Intangible fixed assets are initially measured at cost. After initial recognition, intangible assets are measured at

cost less any accumulated depreciation and any accumulated impairment losses.

Amortisation is calculated, using the straight line method, to amortise the depreciable amount of the assets to

their residual values over their estimated useful lives as follows.

Website 33.3% reducing balance

If there is an indication that there has been a significant change in amortisation rate, useful life or residual value

of the intangible assets, the amortisation is revised prospectively to reflect the new expectation.

Tangible fixed assets

Tangible fixed assets are initially measured at cost. Cost includes the original purchase price and costs directly

attributable to bringing the asset to its present location and into its present condition. After initial recognition, the

assets are measured at cost less any accumulated depreciation and any accumulated impairment losses.

Depreciation is provided by equal instalments 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. Land is

not depreciated.

Plant and machinery -10% reducing balance

Computer equipment - 33.3% reducing balance

Property improvements - 10% straight line

The assets' residual values and useful lives are reviewed, and adjusted, if appropriate, at the end of each

reporting period. The effect of any change is accounted for prospectively.

Stocks

Stock has been valued at the lower of cost and estimated selling price less costs to sell. In respect of work in

progress and finished goods, cost includes a relevant proportion of overheads according to the stage of

completion.

Financial instruments

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 payables, loans from banks and other third parties.

At the end of each reporting period, financial assets that are measured at cost are assessed for objective

evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the

Statement of Comprehensive Income. If there is a decrease in the impairment loss arising from an event

occurring after the impairment was recognised the impairment is reversed. The reversal is such that the current

carrying amount does not exceed what the carrying amount would have been had the impairment not previously

been recognised. The impairment reversal is recognised in the Statement of Comprehensive Income.

Financial assets are derecognised when (a) the contractual rights to the cash flows arising from the asset expire

or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to

another party, or (c) control of the asset has been transferred to another party.

Financial liabilities are measured at amortised cost less any accumulated impairment losses. Financial liabilities

are derecognised when the liability is extinguished, that is when the contractual obligation is discharged,

cancelled or expires.

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.

Current or deferred taxation assets and liabilities are not discounted.

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 statement of financial position date.

Deferred tax

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

statement of financial position date.

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.

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.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the Statement of Financial

Position as substantially all of the risks and rewards incidental to ownership have been transferred from the

leasing company.

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 shorter.

The interest element of these obligations is charged to the Statement of Comprehensive Income over the

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

Rentals under operating leases are charged to the Statement of Comprehensive Income on a straight line basis

over the period of the lease.

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.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 8 (2017 - 8 ) .

4.	INTANGIBLE FIXED ASSETS

Totals

£

COST

At 1 April 2017

and 31 March 2018

30,441

AMORTISATION

At 1 April 2017

25,119

Amortisation for year

1,756

At 31 March 2018

26,875

NET BOOK VALUE

At 31 March 2018

3,566

At 31 March 2017

5,322

5.	TANGIBLE FIXED ASSETS

Totals

£

COST

At 1 April 2017

162,035

Additions

1,267

At 31 March 2018

163,302

DEPRECIATION

At 1 April 2017

104,598

Charge for year

6,720

At 31 March 2018

111,318

NET BOOK VALUE

At 31 March 2018

51,984

At 31 March 2017

57,437

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Totals

£

COST

At 1 April 2017

and 31 March 2018

41,350

DEPRECIATION

At 1 April 2017

7,856

Charge for year

3,349

At 31 March 2018

11,205

NET BOOK VALUE

At 31 March 2018

30,145

At 31 March 2017

33,494

6.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN FIVE YEARS

31.3.18

31.3.17

£

£

Repayable by instalments

Bank loans more 5 yr by instal

27,466

33,500

7.	LEASING AGREEMENTS

Obligations under hire purchase contracts

The future minimum obligations are as follows:

31.03.18

31.03.17

£

£

Not later than one year

10,632

10,632

Later than one year and not later than five years

1,773

12,404

Total gross payments

12,405

23,036

Less: finance charges

(1,550

)

(2,878

)

Carrying amount of liability

10,855

20,158

8.	SECURED DEBTS

The following secured debts are included within creditors:

31.3.18

31.3.17

£

£

Bank overdrafts

29,589

24,005

Bank loans

57,466

63,500

Hire purchase contracts

10,855

20,158

Bibby Factoring Ltd

56,303

44,572

154,213

152,235

Bank of Scotland holds a bond and floating charge securing all sums due or to become due in favour of Bank of

Scotland.

Bibby Factors Scotland Limited holds a floating charge securing all sums due or to become due in favour of

Bibby Factors Scotland Limited..

Liabilities under hire purchase and finance lease agreements are secured against the assets to which they

relate.

9.	PROVISIONS FOR LIABILITIES

31.3.18

31.3.17

£

£

Deferred tax

9,486

10,985

Deferred

tax

£

Balance at 1 April 2017

10,985

Credit to Income Statement during year

(1,499

)

Accelerated capital allowances

Balance at 31 March 2018

9,486

10.	DIRECTOR'S ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 31 March 2018 and

31 March 2017:

31.3.18

31.3.17

£

£

N Freedman

Balance outstanding at start of year

-

(12,811

)

Amounts advanced

17,895

62,581

Amounts repaid

(18,000

)

(49,770

)

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

(105

)

-

During the year all payments to the director were less than £10,000.

11.	RELATED PARTY DISCLOSURES

During the year the company made rent payments of £19,167 to Libertus Estates LLP, an LLP in which Neil

Freedman, director, and his wife, Gail Freedman, are designated members. At the statement of financial position

date the company was owed £64,770 by Libertus Estates LLP.