Company Registration No. 13237146 (England and Wales)
Dark Ways Limited
Annual report and
group financial statements
for the period ended 31 March 2022
Dark Ways Limited
Company information
Directors
Philipp Klausing
(Appointed 2 March 2021)
Jantje Friese
(Appointed 2 March 2021)
Baran Odar
(Appointed 2 March 2021)
Company number
13237146
Registered office
71 Queen Victoria Street
London
EC4V 4BE
Independent auditor
Saffery LLP
71 Queen Victoria Street
London
EC4V 4BE
Dark Ways Limited
Contents
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 7
Income statement
8
Group statement of comprehensive income
9
Group statement of financial position
10
Company statement of financial position
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Dark Ways Limited
Contents
Company statement of cash flows
16
Notes to the financial statements
16 - 27
Dark Ways Limited
Strategic report
For the period ended 31 March 2022
The directors present the strategic report for the period ended 31 March 2022.
Fair review of the business
Group
Across the group there is 1 subsidiary as disclosed in note 10. this subsidiary is a special purpose vehicle set up for the purpose of production of broadcast content for distribution throughout the world. The profit and reserves of the subsidiary undertaking is disclosed in note 10.
Company
During the period, the company provided management services to the subsidiary as well as engaging in project development work. The company's loss for the year is noted at the foot of the company balance sheet.
Principal risks and uncertainties
Group
The directors have reviewed the principal risks and resultant uncertainties facing the group as being the ability to develop and finance high quality projects.
Company
The parent company has the same risk as noted above.
Key performance indicators
Group and Company
The directors consider both the group and company's key financial performance indicator to be whether the television programme is completed broadly in line with the production budget. At the period end, the estimated total cost forecast had exceeded the budget but continued to be financed by the financiers.
Philipp Klausing
Director
13 October 2023
Page 1
Dark Ways Limited
Directors' report
For the period ended 31 March 2022
The directors present their annual report and financial statements for the period ended 31 March 2022.
Principal activities
The nature of the Group's operations and its principal activity during the year was that of the production of broadcast content for distribution throughout the world.
Results and dividends
The results for the period are set out on page 8.
No ordinary dividends were paid. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the period and up to the date of signature of the financial statements were as follows:
Philipp Klausing
(Appointed 2 March 2021)
Jantje Friese
(Appointed 2 March 2021)
Baran Odar
(Appointed 2 March 2021)
Auditor
Saffery LLP were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.
Going concern
The directors have decided that the company will cease trading within 12 months of filing these financial statements as the production has been completed and there will be no further trading activity for this company. As a result of this, the directors have decided not to adopt the going concern principle within these financial statements. The directors do not believe that there is any impact of not adopting the going concern principle on the financial statements.
On behalf of the board
Philipp Klausing
Director
13 October 2023
Page 2
Dark Ways Limited
Directors' responsibilities statement
For the period ended 31 March 2022
The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law).
Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the ;
prepare the on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Page 3
Dark Ways Limited
Independent auditor's report
To the members of Dark Ways Limited
Opinion
We have audited the financial statements of Dark Ways Limited (the 'parent company') and its subsidiaries (the 'group') for the period ended 31 March 2022 which comprise the group income statement, the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the group and of the parent company's affairs as at 31 March 2022 and of the group's profit for the period then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Emphasis of matter - Financial statements prepared on a basis other than going concern
We draw attention to Note 1.3 to the financial statements which explains that the director intends to dissolve the company and therefore does not consider it to be appropriate to adopt the going concern basis of accounting in preparing the financial statements. Accordingly the financial statements have been prepared on a basis other than going concern. Our opinion is not modified in this respect of this matter.
The directors are responsible for the other information. The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Page 4
Dark Ways Limited
Independent auditor's report (continued)
To the members of Dark Ways Limited
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
the information given in the strategic report and the directors' report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Page 5
Dark Ways Limited
Independent auditor's report (continued)
To the members of Dark Ways Limited
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.
Identifying and assessing risks related to irregularities:
We assessed the susceptibility of the group and parent company’s financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the group and parent company by discussions with directors and by updating our understanding of the sector in which the group and parent company operates.
Laws and regulations of direct significance in the context of the group and parent company include The Companies Act 2006 and UK Tax legislation.
Audit response to risks identified
We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of group and parent company financial statement disclosures. We reviewed the parent company's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the parent company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance.
During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.
As group auditors, our assessment of matters relating to non-compliance with laws or regulations and fraud differed at group and component level according to their particular circumstances. Our communications included a request to identify instances of non-compliance with laws and regulations and fraud that could give rise to a material misstatement of the group financial statements in addition to our risk assessment.
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
Page 6
Dark Ways Limited
Independent auditor's report (continued)
To the members of Dark Ways Limited
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the parent company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the parent company's members those matters we are required to state to them in an auditors report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the parent company and the parent company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Darren Drake (Senior Statutory Auditor)
For and on behalf of Saffery LLP
Date: 15 October 2023
Chartered Accountants
Statutory Auditors
71 Queen Victoria Street
London
EC4V 4BE
Page 7
Dark Ways Limited
Group income statement
For the period ended 31 March 2022
Period
ended
31 March
2022
Notes
£
Turnover
3
38,913,737
Cost of sales
(40,747,298)
Gross loss
(1,833,561)
Administrative expenses
(21,451)
Other operating income
49
Operating loss
4
(1,854,963)
Interest receivable and similar income
7
921
Interest payable and similar expenses
8
(1,929)
Loss before taxation
(1,855,971)
Tax on loss
9
1,865,891
Profit for the financial period
9,920
Profit for the financial period is all attributable to the owner of the parent company.
Page 8
Dark Ways Limited
Group statement of comprehensive income
For the period ended 31 March 2022
Period
ended
31 March
2022
£
Profit for the period
9,920
Other comprehensive income
-
Total comprehensive income for the period
9,920
Total comprehensive income for the period is all attributable to the owners of the parent company.
Page 9
Dark Ways Limited
Group statement of financial position
As at 31 March 2022
31 March 2022
2022
Notes
£
£
Current assets
Debtors
11
7,179,374
Cash at bank and in hand
1,341,502
8,520,876
Creditors: amounts falling due within one year
12
(8,510,856)
Net current assets
10,020
Capital and reserves
Called up share capital
14
100
Profit and loss reserves
9,920
Total equity
10,020
The financial statements were approved by the board of directors and authorised for issue on 13 October 2023 and are signed on its behalf by:
13 October 2023
Philipp Klausing
Director
Company Registration No. 13237146 (England and Wales)
Page 10
Dark Ways Limited
Company statement of financial position
As at 31 March 2022
31 March 2022
2022
Notes
£
£
Fixed assets
Investments
1
Current assets
Debtors
11
51,026
Cash at bank and in hand
48,250
99,276
Creditors: amounts falling due within one year
12
(113,930)
Net current liabilities
(14,654)
Net liabilities
(14,653)
Capital and reserves
Called up share capital
14
100
Profit and loss reserves
(14,753)
Total equity
(14,653)
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £14,753.
These financial statements have been prepared 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 13 October 2023 and are signed on its behalf by:
13 October 2023
Philipp Klausing
Director
Company Registration No. 13237146 (England and Wales)
Page 11
Dark Ways Limited
Group statement of changes in equity
For the period ended 31 March 2022
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 2 March 2021
-
Period ended 31 March 2022:
Profit and total comprehensive income for the period
-
9,920
9,920
Issue of share capital
14
100
-
100
Balance at 31 March 2022
100
9,920
10,020
Page 12
Dark Ways Limited
Company statement of changes in equity
For the period ended 31 March 2022
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 2 March 2021
-
Period ended 31 March 2022:
Loss and total comprehensive income for the period
-
(14,753)
(14,753)
Issue of share capital
14
100
-
100
Balance at 31 March 2022
100
(14,753)
(14,653)
Page 13
Dark Ways Limited
Group statement of cash flows
For the period ended 31 March 2022
2022
Notes
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
18
1,342,410
Interest paid
(1,929)
Net cash inflow/(outflow) from operating activities
1,340,481
Investing activities
Interest received
921
Net cash generated from/(used in) investing activities
921
Financing activities
Proceeds from issue of shares
100
Net cash generated from/(used in) financing activities
100
Net increase in cash and cash equivalents
1,341,502
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period
1,341,502
Page 14
Dark Ways Limited
Company statement of cash flows
For the period ended 31 March 2022
2022
Notes
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
19
49,158
Interest paid
(1,929)
Net cash inflow/(outflow) from operating activities
47,229
Investing activities
Interest received
921
Net cash generated from/(used in) investing activities
921
Financing activities
Proceeds from issue of shares
100
Net cash generated from/(used in) financing activities
100
Net increase in cash and cash equivalents
48,250
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period
48,250
Page 15
Dark Ways Limited
Notes to the group financial statements
For the period ended 31 March 2022
1
Accounting policies
Company information
Dark Ways Limited (“the company”) is a private company limited by shares incorporated in England and Wales. The registered office is 71 Queen Victoria Street, London, EC4V 4BE.
The group consists of Dark Ways Limited and all of its subsidiaries.
The nature of the Group's operations and its principal activity during the period was that of the production of broadcast content for distribution throughout the world.
1.1
Reporting period
The financial statements have been prepared for the period from 2 March 2021 to 31 March 2022.
1.2
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.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts 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.
1.3
Going concern
The financial statements have been prepared on a basis other than that of a going concern. There is no difference in the carrying value of assets and liabilities of the company and their break up value.
1.4
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.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Page 16
Dark Ways Limited
Notes to the group financial statements (continued)
For the period ended 31 March 2022
1
Accounting policies (continued)
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
1.5
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.6
Financial instruments
The group 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 group's statement of financial position when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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, 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.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Page 17
Dark Ways Limited
Notes to the group financial statements (continued)
For the period ended 31 March 2022
1
Accounting policies (continued)
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
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 profit or loss.
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 group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Page 18
Dark Ways Limited
Notes to the group financial statements (continued)
For the period ended 31 March 2022
1
Accounting policies (continued)
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
1.7
Equity instruments
Equity instruments issued by the group 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 group.
1.8
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Page 19
Dark Ways Limited
Notes to the group financial statements (continued)
For the period ended 31 March 2022
1
Accounting policies (continued)
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.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. 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. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. 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.
1.9
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.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Page 20
Dark Ways Limited
Notes to the group financial statements (continued)
For the period ended 31 March 2022
2
Critical accounting judgements and key sources of estimation uncertainty
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
There are no critical judgements applied.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
High end television tax credit estimate
The directors believe the key accounting estimate within the financial statements for the company is the valuation of the high end television tax credit available. The estimate is based on the assessment of the value of qualifying expenditure as per HMRC legislations and guidance plus assessment of the qualification of the underlying production as eligible for the tax relief.
3
Turnover
2022
£
Turnover analysed by class of business
Sale of rights
38,889,064
Production service fee
24,673
38,913,737
2022
£
Turnover analysed by geographical market
Germany
38,913,737
Page 21
Dark Ways Limited
Notes to the group financial statements (continued)
For the period ended 31 March 2022
4
Operating loss
2022
£
Operating loss for the period is stated after (crediting):
Exchange gains
(10,294)
5
Auditor's remuneration
2022
Fees payable to the company's auditor and associates:
£
For audit services
Audit of the financial statements of the group and company
8,000
Audit of the financial statements of the company's subsidiaries
12,000
20,000
For other services
Audit-related assurance services
4,500
Taxation compliance services
5,500
10,000
6
Employees
The average monthly number of persons (including directors) employed by the group and company during the period was:
Group
Company
2022
2022
Number
Number
6
Page 22
Dark Ways Limited
Notes to the group financial statements (continued)
For the period ended 31 March 2022
6
Employees (continued)
Their aggregate remuneration comprised:
Group
Company
2022
2022
£
£
Wages and salaries
278,642
-
Social security costs
28,059
-
Pension costs
6,998
-
313,699
-
7
Interest receivable and similar income
2022
£
Interest income
Interest receivable from group companies
921
Investment income includes the following:
Interest on financial assets not measured at fair value through profit or loss
921
8
Interest payable and similar expenses
2022
£
Interest on financial liabilities measured at amortised cost:
Interest payable to group undertakings
1,929
Page 23
Dark Ways Limited
Notes to the group financial statements (continued)
For the period ended 31 March 2022
9
Taxation
2022
£
Current tax
UK corporation tax on profits for the current period
(1,865,891)
The actual (credit)/charge for the period can be reconciled to the expected credit for the period based on the profit or loss and the standard rate of tax as follows:
2022
£
Loss before taxation
(1,855,971)
Tax effect of expenses that are not deductible in determining taxable profit
2,803
Expected tax credit based on the standard rate of corporation tax in the UK of 19.00%
(352,634)
Tax effect of expenses that are not deductible in determining taxable profit
(1,441,445)
Difference between the rate of corporation tax and the rate of relief under the television tax credit
(447,814)
Losses carried forward
373,199
Taxation credit
(1,865,891)
10
Subsidiaries
Details of the company's subsidiaries at 31 March 2022 are as follows:
Name of undertaking
Nature of business
Class of
% Held
shares held
Direct
Dark Ways (1899) Limited
Film production
A
100
The subsidiary has a registered office of 71 Queen Victoria Street, London, EC4V 4BE
The subsidiary is directly owned by Dark Ways Limited and is included in these consolidated accounts.
Page 24
Dark Ways Limited
Notes to the group financial statements (continued)
For the period ended 31 March 2022
10
Subsidiaries (continued)
The capital and reserves and the profit for the year of the subsidiary noted above was as follows:
Name of undertaking
Profit/(Loss)
Capital and Reserves
£
£
Dark Ways (1899) Limited
24,673
1
11
Debtors
Group
Company
2022
2022
Amounts falling due within one year:
£
£
Corporation tax recoverable
1,865,891
Amounts owed by group undertakings
3,701,222
51,021
Other debtors
1,612,261
5
7,179,374
51,026
12
Creditors: amounts falling due within one year
Group
Company
2022
2022
£
£
Amounts owed to group undertakings
101,929
Other creditors
8,170,122
1
Accruals and deferred income
340,734
12,000
8,510,856
113,930
13
Retirement benefit schemes
2022
Defined contribution schemes
£
Charge to profit or loss in respect of defined contribution schemes
6,998
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
Page 25
Dark Ways Limited
Notes to the group financial statements (continued)
For the period ended 31 March 2022
14
Share capital
Group and company
2022
2022
Ordinary share capital
Number
£
Issued and fully paid
Ordinary Shares of £1 each
100
100
16
Directors' transactions
During the period, fees totalling £397,710 were incurred payable to Philipp Klausing, in respect of producer services and other expenses, of which £382,163 was paid in the period and £15,547 is included in accruals and deferred income.
During the period, fees totalling £826,977 were incurred payable to Jantje Friese, in respect of writer and executive producer services and other expenses, of which £552,494 was paid in the period and £274,482 is included in amounts owed by group undertakings.
During the period, fees totalling £687,333 were incurred payable to Baran Odar, in respect of director and executive producer services and other expenses, of which £257,464 was paid in the period and £429,869 is included in amounts owed by group undertakings.
Philipp Klausing, was a director of the company during the period.
Jantje Friese, was a director of the company during the period.
Baran Odar, was a director of the company during the period.
The company has taken advantage of the exemption under paragraph 33.1a of FRS 102 from disclosing transactions entered into between two or more members of a group, where any subsidiary undertaking which is a party to the transaction is wholly owned by a member of that group.
17
Controlling party
The immediate parent undertaking of this company is Dark Ways GmbH, a company registered in Germany.
The ultimate controlling party is Dark Ways GmbH, a company registered in Germany.
The directors are unable to identify the ultimate controlling party, if any.
Page 26
Dark Ways Limited
Notes to the group financial statements (continued)
For the period ended 31 March 2022
18
Cash generated from/(absorbed by) group operations
2022
£
Profit for the period after tax
9,920
Adjustments for:
Taxation credited
(1,865,891)
Finance costs
1,929
Investment income
(921)
Movements in working capital:
Increase in debtors
(5,313,483)
Increase in creditors
8,510,856
Cash generated from/(absorbed by) operations
1,342,410
19
Cash generated from/(absorbed by) operations - company
2022
£
Loss for the period after tax
(14,753)
Adjustments for:
Finance costs
1,929
Investment income
(921)
Movements in working capital:
Increase in debtors
(51,026)
Increase in creditors
113,929
Cash generated from/(absorbed by) operations
49,158
Page 27
2022-03-312021-03-02falseCCH SoftwareCCH Accounts Production 2023.100Philipp KlausingJantje FrieseBaran Odar132371462021-03-022022-03-3113237146bus:Director12021-03-022022-03-3113237146bus:Director22021-03-022022-03-3113237146bus:Director32021-03-022022-03-3113237146bus:RegisteredOffice2021-03-022022-03-3113237146bus:Consolidated2022-03-3113237146bus:Consolidated2021-03-022022-03-31132371462022-03-3113237146core:CurrentFinancialInstruments2022-03-3113237146core:ShareCapital2022-03-3113237146core:RetainedEarningsAccumulatedLosses2022-03-3113237146core:ShareCapitalbus:Consolidated2021-03-0113237146core:RetainedEarningsAccumulatedLossesbus:Consolidated2021-03-0113237146core:ShareCapitalbus:Consolidated2022-03-3113237146core:RetainedEarningsAccumulatedLossesbus:Consolidated2022-03-3113237146core:ShareCapital2021-03-0113237146core:RetainedEarningsAccumulatedLosses2021-03-0113237146core:ShareCapitalbus:Consolidated2021-03-022022-03-3113237146core:ShareCapital2021-03-022022-03-3113237146bus:Consolidated2021-03-01132371462021-03-0113237146core:UKTaxbus:Consolidated2021-03-022022-03-3113237146core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2022-03-3113237146core:CurrentFinancialInstrumentscore:WithinOneYear2022-03-3113237146core:CurrentFinancialInstrumentsbus:Consolidated2022-03-3113237146bus:PrivateLimitedCompanyLtd2021-03-022022-03-3113237146bus:FRS1022021-03-022022-03-3113237146bus:Audited2021-03-022022-03-3113237146bus:ConsolidatedGroupCompanyAccounts2021-03-022022-03-3113237146bus:FullAccounts2021-03-022022-03-31xbrli:purexbrli:sharesiso4217:GBP