Earnings by function

Company Limited
Consolidated statement of comprehensive income and retained earnings
for the year ended 30 April 2010
2010
£

Revenue 6,863,545
Cost of Sales -5,178,530
Gross Profit 1,685,015
Other income 88,850
Distribution costs -175,550
Administrative expenses -810,230
Other expenses -106,763
Finance costs -26,366
Profit before tax 654,956
Income tax expense -270,250
Profit for the year 384,706
Retained earnings at start of year 2,171,353
Dividends -150,000
Retained earnings at end of year 2,406,059

Page 1
 Earnings by function

2009
£

5,808,653
-4,422,575
1,386,078
25,000
-156,800
-660,389
-100,030
-36,712
457,147
-189,559
267,588
2,003,765
-100,000
2,171,353

Page 2
 Earnings by nature

Company Limited
Consolidated statement of comprehensive income and retained earnings
for the year ended 30 April 2010
2010
£
Revenue 6,863,545
Other income 88,850
Changes in inventories of finished goods and work in progress 3,310
Raw material and consumables used -4,786,488
Employee salaries and benefits -936,142
Depreciation and amortisation expense -272,060
Impairment of property, plant and equipment -30,000
Other expenses -249,693
Finance costs -26,366
Profit before tax 654,956
Income tax expense -270,250
Profit for the year 384,706
Retained earnings at start of year 2,171,353
Dividends -150,000
Retained earnings at end of year 2,406,059

Page 3
 Earnings by nature

2009
£
5,808,653
25,000
-1,360
-4,003,235
-879,900
-221,247
0
-234,052
-36,712
457,147
-189,559
267,588
2,003,765
-100,000
2,171,353

Page 4
 Financial position

Company Limited
Consolidated statement of financial position
at 30 April 2010
2010 2009
£ £

ASSETS
Current assets
Cash 28,700 22,075
Trade and other receivables 585,548 573,862
Invetories 57,381 47,920
671,629 643,857
Non-current assets
Investment in associate 107,500 107,500
Property, plant and equipment 2,549,945 2,401,455
Intangible assets 850 2,550
Deferred tax asset 4,309 2,912
2,662,604 2,514,417
Total Assets 3,334,233 3,158,274

LIABILITIES AND EQUITY

Current liabilities
Bank overdraft 83,600 115,507
Trade payables 431,480 420,520
Interest payable 2,000 1,200
Current tax liability 271,647 190,316
Provision for warranty obligations 4,200 5,040
Current portion of employee benefit obligations 4,944 4,754
Current portion of obligations under finance leases 21,461 19,884
819,332 757,221

Page 5
 Financial Position _cont

Company Limited
Consolidated statement of financial position
at 30 April 2010
2010 2009
£ £

Non-current liabilities
Bank loan 50,000 150,000
Long-term employee benefit obligations 5,679 5,076
Obligations under finance leases 23,163 44,624
78,842 199,700
Total liabilities 898,174 956,921

Equity
Share capital 30000 30000
Retained earnings 2406059 2171353
2436059 2201353

Total liabilites and equity 3,334,233 3,158,274

Page 6
 Cash Flow

Company Limited
Consolidated statement of financial position
at 30 April 2010
2010 2009
£ £

Cash flows from operating activities

Profit for the year 384,706 267,588
Adjustments for non-cash income and expenses:
Non-cash finance costs 800 1,200
Non-cash income tax expense 79,934 16,348
Depreciation of property, plant and equipment 270,360 219,547
Impairment loss 30,000 -0
Amortisation of intangibles 1,700 1,700
Cash flow included in investing activities:
Gain on sale of equipment -63,850 -0
Changes in operating assets and liabilities
Decrease (increase) in trade and other receivables -11,686 -52,628
Decrease/(increase) in inventories -9,461 -2,870
Decrease/(increase) in trade payables 10,120 10,870
Increase in current and long-term employee
benefit payable 793 193
Net cash from operating activities 693,416 461,948
Cash flow from investing activities
Proceeds from sale of equipment 100,000 -0
Purchases of equipment -485,000 -435,000
Net cash used in investing activities -385,000 -435,000
Cash flows from financing activities
Payment of finance lease liabilities -19,884 -18,423
Repayment of borrowings -100,000 -0
Dividends paid -150,000 -100,000
Net cash used in financing activities -269,884 -118,423
Net increase/(decrease) in cash and cash equivalents 38,532 -91,475
Cash and cash equivalents at beginning of year -93,432 -1,957
Cash and cash equivalents at end of year -54,900 -93,432

Page 7
 Notes P_L

Revenue 2010
£
Sale of Goods -6,743,545
Services -120,000

-6,863,545

Finance costs 2,010

£
Interest on bank loan and overdraft 21,250
Interest on finance leases 5,116

26,366

Profit before tax 2,010

£

Cost of inventories recognised as expense 5,187,991

Research and development cost (included in other expenses) 31,620
Foreign exchange loss on trade payables (included in other expenses) 1,000
Warranty expense (included in cost of sales)/(inculded in raw materials) 5,260

Page 8
 Notes P_L

2009
£
-5,688,653
-120,000

-5,808,653

2,009
£
30,135
6,577

36,712

2,009
£

4,425,445
22,778

7,340

Page 9
 Notes Current assets

10. Trade and other receivables

Trade debtors
Prepayments

11. Inventories

Raw materials
Work in progress
Finished goods

Page 10
 Notes Current assets

2010 2009
£ £

528,788 528,384
56,760 45,478

585,548 573,862

2,010 2,009
£ £
42,601 36,450
1,140 900
13,640 10,570

57,381 47,920

Page 11
 Notes Tangible assets

13. Property, pland and equipment

Land and
buildings
£
Cost
1 January 2010 1,960,000
Additions
Disposals
31 December 2010 1,960,000

Accumulated depreciation and impairment

1 January 2010 -390,000

Annual depreciation -30,000
Impairment
Less accumulated depreciation on disposals
31 December 2010 -420,000

Carrying amount 31 December 2010 1,540,000

Carrying amount 31 December 2009 1,570,000

Page 12
 Notes Tangible assets

Fixtures and
equipment Total
£ £

1,102,045 3,062,045
485,000 485,000
-241,000 -241,000
1,346,045 3,306,045

-270,590 -660,590
-240,360 -270,360
-30,000 -30,000
204,850 204,850
-336,100 -756,100

1,009,945 2,549,945

831,455 2,401,455

Page 13
 Notes Intangible assets

14. Intangible Assets

Patents & trademarks:

Cost
1 January 2010
Additions
Disposals
31 December 2010

Accumulated depreciation and impairment

1 January 2010
Annual amortisation
31 December 2010

Carrying amount 31 December 2010

Carrying amount 31 December 2009

12. Investment in associate

Cost of investment in associate

Dividend received from associate

Page 14
 Notes Intangible assets

Patents &
Trademarks
£

8,500

8,500

-5,950
-1,700
-7,650

850
2,550

2,010 2,009
£ £
107,500 107,500
-25,000 -25,000

Page 15
 Notes cash _ equity

16. Bank overdraft and loan

Bank overdraft
Bank loan

22. Share capital

Authorised share capital

1000 ordinary shares at £1 par value

Issued share capital

100 ordiary shares at £1 par value fully paid, issued and outstanding

23. Cash and cash equivalents

Cash on hand
Overdrafts

Page 16
 Notes cash _ equity

2010 2009
£ £
-83,600 -115,507
-50,000 -150,000
-133,600 -265,507

2010 2009
£ £

1,000 1,000

2010 2009
£ £

28,700 22,075
-83,600 -115,507
-54,900 -93,432

Page 17
 Notes provisions

18. Provision for warranty obligations 2010

£

1 January 2010 -5040

Additional accrual during the year -5260
Cost of warranty repairs and replacement during year 6100
31 December 2010 -4200

19. Employee benefit obligation - long-service payments 2010

£

Obligation at 1 January 2010 -9830

Additional accrual during the year 5260
Benefit payments made in year
Obligation at 31 December 2010 -4570

The obligation is classified as: 2010 2009

£ £
Current liability -4944 -4754
Non-current liablility -5679 -5076
Total -10623 -9830

Page 18
 Notes RP

26. Related party transactions Sales Debtors

2010 2009 2010 2009
£ £ £ £

Associate -10000 -8000 800 400

Page 19
 Notes leases

20. Obligations under finance leases 2010 2009

£ £

Within one year 25000 25000

Within two to five years 25000 50000
Later than five years
50000 75000
The obligation is classified as

Current liability -21461 -19884

Non-current liability -23163 -44624
-44624 -64508

21. Commitments under operating leases 2010 2009

£ £
Minimum lease payments under operating leases
recognised as an expense during the year 26100 26100

Outstanding commitments under non-cancellable

operating leases:

Within one year 13050 26100

Within two to five years 13050
Later than five years
13050 39150

Page 20
 Notes tax

15. Deferred Tax

Foreign
Patents & exchange
Trademarks loss
£ £

1 January 2009 1,700

Charge/(credit) to profit or loss for the year -680
1 January 2010 1,020 -0
Charge/(credit) to profit or loss for the year -680 -400
31 December 2010 340 -400

2010 2009
£ £

Deferred tax liability 340 1,020

Deferred tax asset -4,649 -3,932
-4,309 -2,912

Income Tax expense 2010 2009

£ £
Current tax 271,647 190,316
Deferred tax -1,397 -757
270,250 189,559

Page 21
 Notes tax

Long
service
benefit Total
£ £

-3,855 -2,155
-77 -757
-3,932 -2,912
-317 -1,397
-4,249 -4,309

Page 22
 TB

Company Limited
Trial balance
for the year ended 30 April 2010
2010 2009
£ £
Profit and loss account
Sales -6733545 -5680653
Services rendered -120000 -120000
Sales to associate -10000 -8000
Opening inventory 47920 45050
Purchases 5182731 4418105
Warranty expense 5260 7340
Closing inventory -57381 -47920
Other income
Dividend received from associate -25000 -25000
Gain on disposal of property, plant & equipment -63850
Distribution costs 175550 156800
Administrative expenses 810230 660389
Other expenses 74143 77252
Research & development 31620 22778
Foreign exchange loss 1000
Finance costs
Interest on loan and overdraft 21250 30135
Interest on finance lases 5116 6577
Income tax expense
Current tax charge 271647 190316
Deferred tax charge -1397 -757
Dividends paid 150000 100000

Balance Sheet
Property, plant & equipment 2401455
Land and buildings cost b/fwd 1960000
Fixtures and equipment cost bfwd 1102045
Fixtures and fittings - additions 485000
Fixtures and equipment disposals -241000
Land and buildings accumulated depreciation b/fwd -390000
Land and buildings annual depreciation -30000
F&E accumulated depreciation b/fwd -270590
F&E annual depreaciation -240360
F&E impairment -30000
F&E accumulated depreciation on disposals 204850
Intangible assets 2550

Page 23
 TB

Patents and trademarks

Cost at 1 January 2010 8500
Accumulated depreciation and impairment
1 January 2010 -5950
Annual amortisation -1700
Investments
Cost of investment in associate 107500 107500
Deferred tax asset
1 January 2010: Patents & trademarks -1020 -1700
Charge/(credit) for the year: patenet & trademarks 680 680
Charge/(credit) for the year: foreign exchange loss 400
1 January 2010: Long-service benefit 3932 3855
Charge/(credit) for the year: Long-service benefit 317 77
Cash 28700 22075
Inventories
Raw Materials 42601 36450
Work in progress 1140 900
Finished Goods 13640 10570
Trade and other receivables
Trade Debtors 527988 527984
Trade debtors - associate 800 400
Prepayments 56760 45478
Current Liabilities
Bank overdraft -83600 -115507
Trade payables -431480 -420520
Interest payable -2000 -1200
Current tax liability -271647 -190316
Provision for warranty obligations -5040
1 January 2010 -5040
Additional accrual warranty costs -5260
Warranty repairs and replacement cost 6100
Current portion of employee benefit obligations -4944 -4754
Current portion of obligations under finance leases -21461 -19884
Non-current liabilities
Bank loan -50000 -150000
Long-term employee benefit obligations -5679 -5076
Obligations under finance leases -23163 -44624
Retained earnings -2171353 -2003765
Equity
Share capital -30000 -30000

0 0

Page 24
 TB

2008
£

5178530

810230

31620
1000
-936142
-298750

Page 25
 TB

107500
2155

18478
45050

521234

20435
412690
0
173211
2000

4571
18423

150000
5066
64508

30000

Page 26
 Workings

W1 Raw materials and conumables used 2010 2009

£ £
Opening inventory 47,920 45,050
Purchases 5,182,731 4,418,105
Warranty expense 5,260 7,340
Closing inventory -57,381 -47,920
Administrative expenses 810,230 660,389
Research & development 31,620 22,778
Foreign exchange loss 1,000 -0
Changes in inventories of finished goods and work in progress 3,310 -1,360
Depreciation and amortisation expense -272,060 -221,247
Impairment of property, plant and equipment -30,000 -0
Employee salaries and benefits -936,142 -879,900
4,786,488 4,003,235

W2 Other expenses

Distribution costs 175,550 156,800

Other expenses 74,143 77,252
249,693 234,052

Page 27