Company registration number 02036342 (England and Wales)
DSI PROPERTIES (NERJA) LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
PAGES FOR FILING WITH REGISTRAR
DSI PROPERTIES (NERJA) LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 5
DSI PROPERTIES (NERJA) LIMITED
BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
4
200
200
Current assets
Stocks
221,548
221,548
Debtors
5
9,805
10,560
Cash at bank and in hand
19,193
250,546
232,108
Creditors: amounts falling due within one year
6
(656,488)
(621,750)
Net current liabilities
(405,942)
(389,642)
Net liabilities
(405,742)
(389,442)
Capital and reserves
Called up share capital
7
100
100
Profit and loss reserves
(405,842)
(389,542)
Total equity
(405,742)
(389,442)
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 31 March 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
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 5 March 2024 and are signed on its behalf by:
T D Scott
Director
Company Registration No. 02036342
DSI PROPERTIES (NERJA) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
1
Accounting policies
Company information
DSI Properties (Nerja) Limited is a private company limited by shares incorporated in England and Wales. The registered office is 1 Willowbed Drive, Chichester, West Sussex, United Kingdom, PO19 8HX.
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
At 31 March 2023 the company had net current liabilities of £405,942 and net liabilities of £405,742. Included within Creditors : amounts falling within one year of the balance sheet date were loans of £605,628 payable to a family trust and the close family of the directors, and a further amount of £37,145 owed to the directors. Whilst all amounts are repayable on demand, the directors remain satisfied that this financial support will remain in place for at least the twelve months following their approval of these financial statements. Atruet the time of approving the financial statements, the directors therefore have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover represents paid rentals receivable in respect of the companies rental properties held for refurbishment and resale.
1.4
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
Investments in subsidiary undertakings are recognised at cost less provision for impairment.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
1.5
Stocks
The company's trading stock comprises of properties held for refurbishment and resale, during which time they are rented out. They are valued by the directors at each balance sheet date and are stated at the lower of cost and estimated selling price less costs to complete and sell.
DSI PROPERTIES (NERJA) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 3 -
1.6
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.
1.7
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 cash 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.
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 and loans from related parties, 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.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs.
1.9
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the company’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.
DSI PROPERTIES (NERJA) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 4 -
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
3
3
4
Fixed asset investments
2023
2022
£
£
Shares in group undertakings and participating interests
200
200
The company's investments at the Balance Sheet date in the share capital of companies include the following:
Antiyear Limited
Nature of business: Non-trading investment
Class of shares: Ordinary
Holding: 100%
Beenroute Limited
Nature of business: Non-trading investment
Class of shares: Ordinary
Holding: 100%
DSI Properties (Nerja) Limited is exempt from preparing group accounts as it is the parent of a small group.
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Other debtors
9,805
10,560
6
Creditors: amounts falling due within one year
2023
2022
£
£
Loans
605,628
605,628
Other creditors
37,145
12,762
Accruals and deferred income
13,715
3,360
656,488
621,750
DSI PROPERTIES (NERJA) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 5 -
7
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
100
100
100
100
8
Related party transactions
The directors are trustees of a family trust which loaned the company £200,000 during the year ended 31 March 2004.
Whilst legal title to the company's property stock is held by it's two non-trading subsidiary undertakings, the company retains beneficial ownership.
Also included at 31 March 2023 within loans at Note 6 to the accounts was £405,628 owed to the estate of the directors' late father, and former director, D M Scott. The directors are satisfied that, whilst this loan is repayable on demand, the executors have indicated that it is their intention to leave the interest-free loan in place for a period of at least 12 months from the date of approving these accounts.
At 31 March 2023, the company also owed £13,024 (2022: £12,562) to T D Scott, one of the directors. This amount is included within Other Creditors at Note 6. This amount is interest free and repayable on demand.
At 31 March 2023, the company also owed £12,000 to C J Scott, one of the directors. This amount is included within Other Creditors at Note 6. This amount is interest free and repayable on demand.
At 31 March 2023, the company also owed £11,921 to J M Scott, one of the directors. This amount is included within Other Creditors at Note 6. This amount is interest free and repayable on demand.