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Registered number: 01320938










VALSON INTERNATIONAL LIMITED








AUDITED

DIRECTOR'S REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

 
VALSON INTERNATIONAL LIMITED
 

COMPANY INFORMATION


Director
Khalid Rangoonwala 




Company secretary
Roy Denis Mantle



Registered number
01320938



Registered office
Albany House
Claremont Lane

Esher

Surrey

KT10 9FQ




Independent auditors
Wellden Turnbull Limited

Claremont Lane

Esher

Surrey

KT10 9FQ





 
VALSON INTERNATIONAL LIMITED
 

CONTENTS



Page
Director's report
 
1 - 2
Independent auditors' report
 
3 - 6
Statement of comprehensive income
 
7
Balance sheet
 
8
Statement of changes in equity
 
9
Notes to the financial statements
 
10 - 20


 
VALSON INTERNATIONAL LIMITED
 

 
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022

The director presents his report and the financial statements for the year ended 31 December 2022.

Director's responsibilities statement

The director is responsible for preparing the director's report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the director is required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments 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 financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable him to ensure that the financial statements comply with the Companies Act 2006He is also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Director

The director who served during the year was:

Khalid Rangoonwala 

Disclosure of information to auditors

The director at the time when this director's report is approved has confirmed that:
 
so far as he is aware, there is no relevant audit information of which the Company's auditors are unaware, and

he has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Auditors

The auditorsWellden Turnbull Limitedwere appointed during the year and will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

Page 1

 
VALSON INTERNATIONAL LIMITED
 

 
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022


Small companies note

In preparing this report, the director has taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.

This report was approved by the board on 7 November 2023 and signed on its behalf.
 





Khalid Rangoonwala
Director

Page 2

 
VALSON INTERNATIONAL LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF VALSON INTERNATIONAL LIMITED
 

Opinion


We have audited the financial statements of Valson International Limited (the 'Company') for the year ended 31 December 2022, which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and the related notes, including a summary of significant accounting policiesThe 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 Company's affairs as at 31 December 2022 and of its loss for the year 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.


Basis for opinion


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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.


Other information


The other information comprises the information included in the Annual Report other than the financial statements and  our auditors' report thereon.  The director is responsible for the other information contained within the Annual Report.  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 3

 
VALSON INTERNATIONAL LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF VALSON INTERNATIONAL LIMITED (CONTINUED)


Opinion 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 director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the director's report has 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 Company and its environment obtained in the course of the audit, we have not identified material misstatements in the director's 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, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of director's remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
the director was not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the director's report and from the requirement to prepare a strategic report.


Responsibilities of directors
 

As explained more fully in the director's responsibilities statement set out on page 1, the director is 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 director determines 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 director is responsible for assessing the 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 director either intends to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 4

 
VALSON INTERNATIONAL LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF VALSON INTERNATIONAL LIMITED (CONTINUED)


Auditors' 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 auditors' 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.


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. We have identified the greatest risk of a material impact on the financial statements from irregularities, including fraud, to relate to the timing and recognition of revenue, the valuation of investment properties and the override of controls by management. We have obtained an understanding of the legal and regulatory frameworks that the Company operates within including both those that directly have an impact on the financial statements and more widely those for which non-compliance could have a significant impact on the Company’s operations and reputation. The Companies Act 2006, employee legislation, health and safety legislation and data protection are those we have identified in this regard. Auditing standards limit the required procedures as to non-compliance with laws and regulations to enquiries of those charged with governance and review of any applicable correspondence.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Enquiry of management and those charged with governance as to actual and potential litigation and claims;

Enquiry of management and those charged with governance as to actual instances of non compliance with laws and regulations;

Assessing the reasonableness of revenue recognised in the period based on underlying contractual terms and obligations and the requirements of accounting standards, ensuring that sales are recorded in the correct period;

Reviewing the valuation methodology used for valuation of the Company's investment property including assessing the reasonableness of valuation inputs and assumptions in the context of market available data to assess for indicators of management bias;

Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations and accounting standards; and

Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business, and reviewing accounting estimates for bias.


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors' report.


Page 5

 
VALSON INTERNATIONAL LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF VALSON INTERNATIONAL LIMITED (CONTINUED)


Other matters 
 

The financial statements for the year ended 31 December 2021 were audited by Heywards who expressed an unmodified opinion on those financial statements.


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the 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 Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.





Mark Nelligan FCA (senior statutory auditor)
  
for and on behalf of
Wellden Turnbull Limited
 
Claremont Lane
Esher
Surrey
KT10 9FQ

7 November 2023
Page 6

 
VALSON INTERNATIONAL LIMITED
 

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022

2022
2021
£
£

  

Turnover
  
1,695,941
1,639,767

Cost of sales
  
(550,971)
(471,664)

Gross profit
  
1,144,970
1,168,103

Administrative expenses
  
(1,434,190)
(1,358,333)

Other operating income
  
-
52,365

Operating loss
  
(289,220)
(137,865)

Interest receivable and similar income
  
447
-

Loss before tax
  
(288,773)
(137,865)

Tax on loss
  
577
(250,155)

Loss for the financial year
  
(288,196)
(388,020)

There was no other comprehensive income for 2022 (2021:£NIL).

The notes on pages 10 to 20 form part of these financial statements.

Page 7

 
VALSON INTERNATIONAL LIMITED
REGISTERED NUMBER: 01320938

BALANCE SHEET
AS AT 31 DECEMBER 2022

2022
2021
Note
£
£

Fixed assets
  

Tangible assets
 5 
188,728
183,310

Investments
 6 
213,202
2

Investment property
  
25,241,051
25,241,051

  
25,642,981
25,424,363

Current assets
  

Debtors: amounts falling due within one year
 8 
161,755
379,881

Cash at bank and in hand
 9 
833,488
1,227,652

  
995,243
1,607,533

Creditors: amounts falling due within one year
 10 
(2,212,985)
(1,711,947)

Net current liabilities
  
 
 
(1,217,742)
 
 
(104,414)

Total assets less current liabilities
  
24,425,239
25,319,949

Creditors: amounts falling due after more than one year
 11 
(9,483,333)
(10,059,270)

Provisions for liabilities
  

Deferred tax
 13 
(550,074)
(550,651)

Other provisions
 14 
(145,000)
(175,000)

  
 
 
(695,074)
 
 
(725,651)

Net assets
  
14,246,832
14,535,028


Capital and reserves
  

Called up share capital 
  
500,000
500,000

Investment property reserve
 16 
6,801,947
6,801,947

Profit and loss account
 16 
6,944,885
7,233,081

  
14,246,832
14,535,028


The Company's financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 


Khalid Rangoonwala
Director

Date: 7 November 2023

The notes on pages 10 to 20 form part of these financial statements.

Page 8

 
VALSON INTERNATIONAL LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022


Called up share capital
Investment property revaluation reserve
Profit and loss account
Total equity

£
£
£
£


At 1 January 2021
500,000
3,585,896
7,696,101
11,781,997


Comprehensive income for the year

Loss for the year
-
-
(388,020)
(388,020)
Total comprehensive income for the year
-
-
(388,020)
(388,020)


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(75,000)
(75,000)

Revaluation of Tangible Fixed Assets
-
3,216,051
-
3,216,051


Total transactions with owners
-
3,216,051
(75,000)
3,141,051



At 1 January 2022
500,000
6,801,947
7,233,081
14,535,028


Comprehensive income for the year

Loss for the year
-
-
(288,196)
(288,196)


At 31 December 2022
500,000
6,801,947
6,944,885
14,246,832


Page 9

 
VALSON INTERNATIONAL LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

1.


General information

Valson International Limited is a private company, limited by shares and incorporated in England and Wales, registered number 01320938. The registered office address is Albany House, Claremont Lane, Esher, Surrey, KT10 9FQ

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The financial statements have been prepared using FRS102, the financial reporting standard applicable in the UK and Republic of Ireland, including the disclosure and presentation requirements of Section 1A, applicable to small companies. There were no material departures from that standard. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Going concern

The Company was loss making in the period but is in a net asset position at the year end date. The financial statements have been prepared on a going concern basis which means that the Company can be expected to meet its liabilities as they fall due for a period of 12 months from the date of signing these financial statements. In assessing the appropriateness of the going concern basis of preparation the Directors have considered the key risks of the business as well as the Company's business model and the availability of cash resources. 

In assessing the appropriateness of the going concern basis of preparation the Directors have considered the key risks of the business as well as the Company's business model and the availability of cash resources.

 
2.3

Revenue

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. Turnover represents income from investment properties, all of which are held in the United Kingdom.

 
2.4

Operating leases: the Company as lessor

Rental income from operating leases is credited to profit or loss on a straight-line basis over the lease term.

Amounts paid and payable as an incentive to sign an operating lease are recognised as a reduction to income over the lease term on a straight-line basis, unless another systematic basis is representative of the time pattern over which the lessor's benefit from the leased asset is diminished.

The Company has taken advantage of the optional exemption available on transition to FRS 102 which allows lease incentives on leases entered into before the date of transition to the standard 01 January 2021 to continue to be charged over the period to the first market rent review rather than the term of the lease.

Page 10

 
VALSON INTERNATIONAL LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.5

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.6

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the statement of comprehensive income in the same period as the related expenditure.

 
2.7

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.8

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.9

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

Page 11

 
VALSON INTERNATIONAL LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.10

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.11

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged at the following rates:

Depreciation is provided on the following basis:

Leasehold property
-
Over the term of the lease
Motor vehicles
-
25% reducing balance per annum
Fixtures and fittings
-
15% reducing balance per annum
Computer equipment
-
33.33% on cost per annum

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.12

Investment property

Investment property is carried at fair value determined annually by and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in profit or loss.

Page 12

 
VALSON INTERNATIONAL LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.13

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in unlisted Company shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the statement of comprehensive income for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

Investments in listed company shares are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in profit or loss for the period.

 
2.14

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.15

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.16

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.17

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the balance sheet.

 
2.18

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 creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially
Page 13

 
VALSON INTERNATIONAL LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)


2.18
Financial instruments (continued)

at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the statement of comprehensive income.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

 
2.19

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In preparing these financial statements, management is required to make judgements, estimates and assumptions which affect expected reported income, expenses, assets and liabilities and disclosure of contingent assets and liabilities. Use of available information and the application of judgement are inherent in the formation of estimates, together with past experience and expectations of future events that are believed to be reasonable under the circumstances. Actual results in the future could differ from such estimates.

Fair value of investment properties

The fair value of the Company’s investment properties is calculated by management in line with the accounting policy stated in note 2.12. In calculating the fair value, management make judgements  regarding the applicable market rent levels, investment property yields and forecast future cashflows. 

Page 14

 
VALSON INTERNATIONAL LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

4.


Employees

2022
2021
£
£

Wages and salaries
354,633
314,027

Social security costs
40,605
36,209

Cost of defined contribution scheme
14,930
13,903

410,168
364,139


The average monthly number of employees, including the director, during the year was as follows:


        2022
        2021
            No.
            No.







Total
6
6


5.


Tangible fixed assets





Long-term leasehold property
Plant and machinery
Fixtures and fittings
Total

£
£
£
£



Cost or valuation


At 1 January 2022
238,085
50,766
169,237
458,088


Additions
-
2,943
28,087
31,030



At 31 December 2022

238,085
53,709
197,324
489,118



Depreciation


At 1 January 2022
107,137
46,318
121,324
274,779


Charge for the year on owned assets
11,904
3,639
10,068
25,611



At 31 December 2022

119,041
49,957
131,392
300,390



Net book value



At 31 December 2022
119,044
3,752
65,932
188,728



At 31 December 2021
130,948
4,448
47,913
183,309

Page 15

 
VALSON INTERNATIONAL LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

6.


Fixed asset investments





Investments in subsidiary companies
Other fixed asset investments
Total

£
£
£



Cost or valuation


At 1 January 2022
2
-
2


Additions
-
213,200
213,200



At 31 December 2022
2
213,200
213,202





7.


Investment property


Freehold investment property

£



Valuation


At 1 January 2022
25,241,051



At 31 December 2022
25,241,051

The fair value of the investment properties has been determined by management based on their knowledge of the market and current market factors.



If the Investment properties had been accounted for under the historic cost accounting rules, the properties would have been measured as follows:

2022
2021
£
£


Historic cost
18,439,104
18,439,104

Accumulated depreciation and impairments
(1,867,193)
(1,867,193)

16,571,911
16,571,911

Page 16

 
VALSON INTERNATIONAL LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

8.


Debtors

2022
2021
£
£


Trade debtors
86,831
141,193

Other debtors
74,924
118,585

Prepayments and accrued income
-
120,103

161,755
379,881



9.


Cash and cash equivalents

2022
2021
£
£

Cash at bank and in hand
833,488
1,227,652



10.


Creditors: Amounts falling due within one year

2022
2021
£
£

Bank loans
533,333
533,333

Trade creditors
32,002
102,461

Other taxation and social security
136,811
79,216

Other creditors
667,992
596,382

Accruals and deferred income
842,847
400,555

2,212,985
1,711,947



11.


Creditors: Amounts falling due after more than one year

2022
2021
£
£

Bank loans
9,483,333
10,016,667

Other loans
-
42,603

9,483,333
10,059,270


Page 17

 
VALSON INTERNATIONAL LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

12.


Loans


Analysis of the maturity of loans is given below:


2022
2021
£
£

Amounts falling due within one year

Bank loans
533,333
533,333

Amounts falling due 1-2 years

Bank loans
533,333
533,333

Amounts falling due 2-5 years

Bank loans
8,950,000
9,483,333


10,016,666
10,549,999



13.


Deferred taxation




2022


£






At beginning of year
(550,651)


Charged to profit or loss
577



At end of year
(550,074)

The provision for deferred taxation is made up as follows:

2022
2021
£
£


Accelerated capital allowances
4,921
4,344

Investment property
(554,995)
(554,995)

(550,074)
(550,651)

Page 18

 
VALSON INTERNATIONAL LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

14.


Provisions




Property Repairs and Legal Costs

£





At 1 January 2022
175,000


Charged to profit or loss
20,000


Utilised in year
(50,000)



At 31 December 2022
145,000


15.


Share capital

2022
2021
£
£
Allotted, called up and fully paid



500,000 (2021 - 500,000) Ordinary shares of £1.00 each
500,000
500,000



16.


Reserves

Investment property revaluation reserve

The investment property revaluation reserve represents non distributable profits on gains and losses on the revaluation of investment properties.

Profit and loss account

The profit and loss accounts represents cumulative profits and losses net of all adjustments.


17.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £14,127 (2021 - £14,153). Contributions totalling £4,533 (2021 - £Nil) were payable to the fund at the balance sheet date and are included in other creditors.

Page 19

 
VALSON INTERNATIONAL LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

18.


Commitments under operating leases

At 31 December 2022 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2022
2021
£
£


Not later than 1 year
350,365
350,365

Later than 1 year and not later than 5 years
597,591
947,956

947,956
1,298,321


19.


Related party transactions

The Company has taken the exemption under FRS102 1A not to disclose transactions and balances with its parent company on the basis that is a wholly owned subsidiary.


20.


Controlling party

The Company’s immediate parent undertaking is Anderson Limited Inc, a company incorporated in Panama. The ultimate parent undertaking is Roots International S.A, a company incorporated in Panama. The ultimate controlling parties are Buttler Limited, a company incorporated in the UK, and Ibrahim Alloo.


Page 20