Company registration number 04225872 (England and Wales)
DAVAL CONSTRUCTION LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
PAGES FOR FILING WITH REGISTRAR
DAVAL CONSTRUCTION LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 8
DAVAL CONSTRUCTION LIMITED
BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
3
42,917
96,202
Current assets
Debtors
4
1,937,762
2,753,787
Cash at bank and in hand
642,078
809,307
2,579,840
3,563,094
Creditors: amounts falling due within one year
5
(1,014,808)
(2,034,969)
Net current assets
1,565,032
1,528,125
Total assets less current liabilities
1,607,949
1,624,327
Creditors: amounts falling due after more than one year
6
-
0
(19,065)
Provisions for liabilities
7
(8,112)
(80,670)
Net assets
1,599,837
1,524,592
Capital and reserves
Called up share capital
100
100
Profit and loss reserves
1,599,737
1,524,492
Total equity
1,599,837
1,524,592

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

These financial statements have been prepared and delivered 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 21 February 2024 and are signed on its behalf by:
Mr D N Tobin
Director
Company Registration No. 04225872
DAVAL CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
1
Accounting policies
Company information

Daval Construction Limited is a private company limited by shares incorporated in England and Wales. The registered office is 66 Prescot Street, London, E1 8NN.

1.1
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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.

1.2
Going concern

Ttruehe directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The directors have given consideration to the effects of Coronavirus and continue to monitor the developing situation and to take steps to reduce the impact on operations and financial performance, where necessary. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration receivable for goods and services provided in the normal course of business, and is shown net of VAT.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Plant and machinery
25% straight line
Fixtures, fittings and equipment
25% straight line
Motor vehicles
25% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

DAVAL CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 3 -

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.6
Construction contracts

Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.

 

When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.

 

Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include deposits held at call with banks.

1.8
Financial instruments

The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with 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 and bank balances, 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.

DAVAL CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 4 -
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 company 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 company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, 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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
Equity instruments

Equity instruments issued by the company 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 company.

1.10
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 profit and loss account 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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

 

Tax credits in respect of Research and Development claims are recognised on a cash basis once approved by HMRC.

DAVAL CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 5 -
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. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. 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.

1.11
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.12
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

 

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.

1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.14
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

DAVAL CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 6 -
1.15
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

Government grants relating to turnover are recognised as income over the periods when the related costs are incurred. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.

2
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Total
10
12
3
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 April 2022
569,148
Additions
27,399
Disposals
(16,314)
At 31 March 2023
580,233
Depreciation and impairment
At 1 April 2022
472,946
Depreciation charged in the year
71,979
Eliminated in respect of disposals
(7,609)
At 31 March 2023
537,316
Carrying amount
At 31 March 2023
42,917
At 31 March 2022
96,202
DAVAL CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 7 -
4
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
468,074
720,617
Gross amounts owed by contract customers
1,177,816
1,502,998
Corporation tax recoverable
71,561
139,113
Other debtors
139,428
345,862
Prepayments and accrued income
80,883
45,197
1,937,762
2,753,787
5
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts
-
0
454
Other borrowings
19,260
18,170
Trade creditors
538,340
1,363,672
Corporation tax
22,941
-
0
Other taxation and social security
23,781
24,184
Other creditors
311,854
314,203
Accruals and deferred income
98,632
314,286
1,014,808
2,034,969

The other creditors are secured by a charge which is available for inspection at Companies House.

6
Creditors: amounts falling due after more than one year
2023
2022
£
£
Other creditors
-
0
19,065
7
Provisions for liabilities
2023
2022
£
£
Onerous contracts
-
59,811
Deferred tax liabilities
8,112
20,859
8,112
80,670
DAVAL CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
7
Provisions for liabilities
(Continued)
- 8 -
Movements on provisions apart from deferred tax liabilities:
Onerous contracts
£
At 1 April 2022
59,811
Utilisation of provision
(59,811)
At 31 March 2023
-
8
Audit report information

As the income statement has been omitted from the filing copy of the financial statements the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

Senior Statutory Auditor:
Luke Metson
Statutory Auditor:
Gravita Audit II Limited
9
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

2023
2022
£
£
229,230
361,740
10
Related party transactions
Transactions with related parties

During the reporting period the company provided services to companies under common control of the directors and shareholders totalling £16,000 (2022 - £12,000). Furthermore, the company acquired services of £3,294,152 (2022 - £2,709,395) from and paid interest of £2,246 (2022 - £3,274) to companies under the common control of the directors and shareholders.

 

At the reporting date the company was owed £nil (2022 - £nil) by companies under common control of the directors and shareholders and owed £40,252 (2022 - £nil) to companies under common control of the directors and shareholders. The services provided and obtained are interest free and repayable upon demand. An element of the amounts owed is in respect of loans accruing interest at 6% and are repayable over 5 years.

 

During the reporting period dividends totalling £nil (2022 - £1,000,000) were paid in the year in respect of shares held by the company's directors.

At the reporting date the directors were owed an amount of £303,863 (2022 - £303,863) by the company. The balance is interest free, unsecured and repayable on demand.

2023-03-312022-04-01false21 February 2024CCH SoftwareCCH Accounts Production 2023.200No description of principal activityThis audit opinion is unqualifiedMr D N TobinMr K  KyriacouExecutor of the Estate of Alan GrahamI  DobosMr D N Tobin042258722022-04-012023-03-31042258722023-03-31042258722022-03-3104225872core:OtherPropertyPlantEquipment2023-03-3104225872core:OtherPropertyPlantEquipment2022-03-3104225872core:CurrentFinancialInstrumentscore:WithinOneYear2023-03-3104225872core:CurrentFinancialInstrumentscore:WithinOneYear2022-03-3104225872core:Non-currentFinancialInstrumentscore:AfterOneYear2023-03-3104225872core:Non-currentFinancialInstrumentscore:AfterOneYear2022-03-3104225872core:CurrentFinancialInstruments2023-03-3104225872core:CurrentFinancialInstruments2022-03-3104225872core:ShareCapital2023-03-3104225872core:ShareCapital2022-03-3104225872core:RetainedEarningsAccumulatedLosses2023-03-3104225872core:RetainedEarningsAccumulatedLosses2022-03-3104225872bus:CompanySecretaryDirector12022-04-012023-03-3104225872core:PlantMachinery2022-04-012023-03-3104225872core:FurnitureFittings2022-04-012023-03-3104225872core:MotorVehicles2022-04-012023-03-31042258722021-04-012022-03-3104225872core:OtherPropertyPlantEquipment2022-03-3104225872core:OtherPropertyPlantEquipment2022-04-012023-03-3104225872core:Non-currentFinancialInstruments2023-03-3104225872core:Non-currentFinancialInstruments2022-03-3104225872bus:PrivateLimitedCompanyLtd2022-04-012023-03-3104225872bus:SmallCompaniesRegimeForAccounts2022-04-012023-03-3104225872bus:FRS1022022-04-012023-03-3104225872bus:Audited2022-04-012023-03-3104225872bus:Director12022-04-012023-03-3104225872bus:Director22022-04-012023-03-3104225872bus:Director32022-04-012023-03-3104225872bus:Director42022-04-012023-03-3104225872bus:CompanySecretary12022-04-012023-03-3104225872bus:FullAccounts2022-04-012023-03-31xbrli:purexbrli:sharesiso4217:GBP