Company registration number 01657925 (England and Wales)
JSW HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 DECEMBER 2023
31 December 2023
JSW HOLDINGS LIMITED
COMPANY INFORMATION
Directors
NJ Wright
JB Ruggles
OC Wright
Secretary
JB Ruggles
Company number
01657925
Registered office
Coles Farm Works
Boreham Road
Great Leighs
Chelmsford
Essex
CM3 1PR
Auditor
Rickard Luckin Limited
1st Floor
County House
100 New London Road
Chelmsford
Essex
CM2 0RG
JSW HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Profit and loss account
12
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
13 - 22
JSW HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 31 December 2023.

Review of the business

The Directors are very pleased with the financial performance of the subsidiary over the last 12 months. Despite having to increase prices due to increased costs from sub-contractors, wages and salaries and the prices of raw materials. It did not produce the numbers anticipated due to the appalling weather in February 2023 which would not allow us to start cutting trees, so the yard ran out of timber for 6 weeks and we directed the labour to yard maintenance without anyone losing the hours they wanted. This pushed costs up per blade as production targets were not met.

India / Pakistan demand for timber is ever increasing and with problems in the Red Sea shipping is challenging but we managed to hold shipping prices for the full 12 months, which is a remarkable feat considering how much they increased towards the end of the year.

It has increased it’s range of products to meet the demand for timber from India / Pakistan especially which has aided our sales and cash flow.

It continues to invest in plant and machinery, with new replacement forklifts as well as new office buildings and the beginnings of two new drying kilns.

In has invested in new employees at management and tree buying level, taking on a new willow tree buyer has proved a great asset to the company. It also promoted an outside worker to willow set manager, this has meant the tree buyers have been able to spend 3 extra months sourcing trees which means we have a huge list of trees that we have agreed to purchase, they have also taken on extra sub-contractors to increase the amount of trees that can be purchased and fell as well as how many trees they can plant.

The subsidiary social media / PR standings have improved since we started investing more in this side of the business and that is keeping us in people’s minds with circulars by email and postal brochures going out much more regularly than before.

There have been issues with the tenant at Windy Ways which we let through an agent which is currently in the hands of the courts and bailiffs and we shall be able to put an insurance claim in for any unpaid rent eventually, inspections are still being carried out and all seems acceptable internally and externally. Coles Farm House continues to be let direct with the tenants having been there in excess of 17 years now. Rent increases annually on Coles Farm House and is at a good commercial level, Windy ways will be rented at a substantially higher figure than it is once we look for new tenants. The trees on the land at Felstead and Coggeshall continue to grow for the future.

JSW HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Principal risks and uncertainties

There is always the risk of the laws of cricket being changed to allow other materials to be used, currently the cricket bat has to be made of a single piece of wood, with laminated products allowed in the junior market. We are always concerned that either due to the price of the bat or the lack of raw material the powers that be ( ICC – International Cricket Council and the MCC - Marylebone Cricket Club ) will change the rules but that has not happened thus far and we have annual meetings with the MCC which seems to put any fears from their side to bed. There is more European Willow being processed for cricket bats these days which helps us, despite it being a competitor and although the wood is not as good quality it does help to satisfy the demand. Although some manufacturers selling it as English Willow is not acceptable there nothing they can do about that.

Climate change is having an effect with wet weather becoming more and more of a problem, this means they cannot get on the land to either fell trees or plant new ones. Felling is carried out all year round when weather permits and landowners allow access , but with warmer and wetter winters for two years now they have had to try and get enough trees in the yard by the end of November to keep the factory busy and have failed. However having now invested in two extra gangs of subcontractors and other sub-contractors have taken on extra men to hopefully get more felling done when weather permits. Planting of new trees is carried out from December to March 1st and they have even had to put some jobs off as the areas remain flooded and cannot get access to plant, but again extra men has assisted in this as well.

Burning of waste branches and leaves on tree felling sites is a worry, although a license is obtained for every site this doesn’t mean they can just burn as we like. They are having problems with complaints about burning from members of the public and sometimes have to stop for a time and go back at a later date which increases costs. They have looked at chipping the waste on site but again this will lead to huge increased costs in machinery and labour and with all the others costs increasing at an alarming rate this is something that the industry ( not just us) can ill afford in the short term, but in the longer term it will certainly need to be considered.

Finding people who want to work in the factory which is physical and hard work has been challenging, they seem to have to try 3 or more to get one person who stays, there are ideas below in development and performance that it is hoped will address this.

Key performance indicators

I am not sure about this, in the example Jan gave me the company wrote what all their figures were for last two years we don’t want to do that so I will need some guidance but am not giving figures out. Whenever I look up companies that I am interested to find out about on line the accounts actually say very little.

On behalf of the board

JB Ruggles
Director
27 March 2024
JSW HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

The directors present their annual report and financial statements for the year ended 31 December 2023.

Principal activities

The principal activity of the company is that of a holding company of JS Wright & Son Limited.

Results and dividends

The results for the year are set out on page 12.

Ordinary dividends were paid amounting to £678,749. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

NJ Wright
JB Ruggles
OC Wright
Directors' insurance

The company maintains insurance policies on behalf of all the directors against liability arising from negligence, breach of duty and breach of trust in relation to the company.

Auditor

In accordance with the company's articles, a resolution proposing that Rickard Luckin Limited be reappointed as auditor of the company will be put at a General Meeting.

Statement of directors' responsibilities

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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are 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 enable them to ensure that the financial statements comply with the Companies Act 2006. They are 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.

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 company’s auditor 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 company’s auditor is aware of that information.

JSW HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
JB Ruggles
Director
27 March 2024
JSW HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF JSW HOLDINGS LIMITED
- 5 -
Opinion

We have audited the financial statements of JSW Holdings Limited (the 'company') for the year ended 31 December 2023 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the 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:

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 Auditor's 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 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.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' 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 directors 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 auditor's report thereon. The directors are 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

JSW HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF JSW HOLDINGS LIMITED
- 6 -
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 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:

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 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 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.

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

[The auditor’s assessment of the susceptibility of the entity’s financial statements to material misstatement, including how fraud might occur.]

[Which laws and regulations the auditor identified as being of significance in the context of the entity.]

[The auditor’s explanation of its audit response will depend on the risks identified but may include:

- Enquiry of management, those charged with governance and the entity’s solicitors (or in-house legal team) around actual and potential litigation and claims.

- Enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations.

- Reviewing minutes of meetings of those charged with governance.

- Reviewing internal audit reports.

- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.

- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.]

JSW HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF JSW HOLDINGS LIMITED
- 7 -

[The auditor’s explanation of its audit response will depend on the risks identified but may include:

- Enquiry of management, those charged with governance and the entity’s solicitors (or in-house legal team) around actual and potential litigation and claims.

- Enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations.

- Reviewing minutes of meetings of those charged with governance.

- Reviewing internal audit reports.

- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.

- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.]

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.

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 2006. Our 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 auditor's 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.

Michael Breame
Senior Statutory Auditor
For and on behalf of Rickard Luckin Limited
27 March 2024
Chartered Accountants
Statutory Auditor
1st Floor
County House
100 New London Road
Chelmsford
Essex
CM2 0RG
JSW HOLDINGS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
£
£
Profit for the year
503,484
486,093
Other comprehensive income
-
-
Total comprehensive income for the year
503,484
486,093
JSW HOLDINGS LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
9
838,575
750,050
Investment property
10
1,600,000
1,750,000
Investments
11
60,001
60,000
2,498,576
2,560,050
Current assets
-
-
Creditors: amounts falling due within one year
15
(118,133)
(4,342)
Net current liabilities
(118,133)
(4,342)
Total assets less current liabilities
2,380,443
2,555,708
Provisions for liabilities
Deferred tax liability
16
33,000
33,000
(33,000)
(33,000)
Net assets
2,347,443
2,522,708
Capital and reserves
Called up share capital
17
60,000
60,000
Profit and loss reserves
18
2,287,443
2,462,708
Total equity
2,347,443
2,522,708

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.true

The financial statements were approved by the board of directors and authorised for issue on 27 March 2024 and are signed on its behalf by:
NJ Wright
JB Ruggles
Director
Director
Company registration number 01657925 (England and Wales)
JSW HOLDINGS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
60,000
2,225,415
2,285,415
Year ended 31 December 2022:
Profit and total comprehensive income
-
486,093
486,093
Dividends
8
-
(248,800)
(248,800)
Balance at 31 December 2022
60,000
2,462,708
2,522,708
Year ended 31 December 2023:
Profit and total comprehensive income
-
503,484
503,484
Dividends
8
-
(678,749)
(678,749)
Balance at 31 December 2023
60,000
2,287,443
2,347,443
JSW HOLDINGS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
21
112,035
4,345
Investing activities
Purchase of tangible fixed assets
(111,763)
(4,345)
Purchase of subsidiaries
(1)
-
0
Dividends received
678,478
248,800
Net cash generated from investing activities
566,714
244,455
Financing activities
Dividends paid
(678,749)
(248,800)
Net cash used in financing activities
(678,749)
(248,800)
Net increase in cash and cash equivalents
-
0
-
0
Cash and cash equivalents at beginning of year
-
0
-
0
Cash and cash equivalents at end of year
-
0
-
0
JSW HOLDINGS LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
2023
2022
Notes
£
£
Turnover
-
-
Administrative expenses
(24,994)
(21,107)
Operating loss
3
(24,994)
(21,107)
Interest receivable and similar income
5
678,478
248,800
Amounts written off investments
6
(150,000)
184,400
Profit before taxation
503,484
412,093
Tax on profit
7
-
0
74,000
Profit for the financial year
503,484
486,093

The profit and loss account has been prepared on the basis that all operations are continuing operations.

JSW HOLDINGS LIMITED
PROFIT AND LOSS ACCOUNT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
1
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.

2
Accounting policies
Company information

JSW Holdings Limited is a private company limited by shares incorporated in England and Wales. The registered office is Coles Farm Works, Boreham Road, Great Leighs, Chelmsford, Essex, CM3 1PR.

2.1
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.

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, modified to include investment properties at fair value. The principal accounting policies adopted are set out below.

The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.

2.2
Going concern

Atruet the time of approving the financial statements, the directors 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.

2.3
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:

Freehold land and buildings
By equal installments over 50 years

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.

JSW HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Accounting policies
(Continued)
- 14 -
2.4
Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

2.5
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.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

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.

2.6
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.

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.

2.7
Cash at bank and in hand

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.

JSW HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Accounting policies
(Continued)
- 15 -
2.8
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 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.

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.

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 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.

JSW HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Accounting policies
(Continued)
- 16 -
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.

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 that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. 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 company’s contractual obligations expire or are discharged or cancelled.

2.9
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.

2.10
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.

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.

JSW HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
3
Operating loss
2023
2022
Operating loss for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
-
0
-
0
Depreciation of owned tangible fixed assets
23,238
21,107
4
Employees

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

2023
2022
Number
Number
Total
-
0
-
0
5
Interest receivable and similar income
2023
2022
£
£
Income from fixed asset investments
Income from shares in group undertakings
678,478
248,800
6
Amounts written off investments
2023
2022
£
£
Changes in the fair value of investment properties
(150,000)
184,400
7
Taxation
2023
2022
£
£
Deferred tax
Origination and reversal of timing differences
-
0
(74,000)

From April 2023 UK corporation tax has been increased by 6% to 25% (2022: 19%). In the previous period this impacted the unrecognised deferred tax calculation only as 25% become the enacted rate.

JSW HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
7
Taxation
(Continued)
- 18 -

The actual charge/(credit) for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
503,484
412,093
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
125,871
78,298
Tax effect of expenses that are not deductible in determining taxable profit
-
0
4,010
Gains not taxable
-
0
(35,036)
-
0
(74,000)
Taxation charge/(credit) for the year
125,871
(26,728)
Taxation charge/(credit) in the financial statements
-
(74,000)
Reconciliation - the current year tax charge does not reconcile to the above analysis.  Please review figures in the database.
125,871
47,272
8
Dividends
2023
2022
£
£
Final paid
678,749
248,800
JSW HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
9
Tangible fixed assets
Freehold land and buildings
£
Cost
At 1 January 2023
1,096,168
Additions
111,763
At 31 December 2023
1,207,931
Depreciation and impairment
At 1 January 2023
346,118
Depreciation charged in the year
23,238
At 31 December 2023
369,356
Carrying amount
At 31 December 2023
838,575
At 31 December 2022
750,050
10
Investment property
2023
£
Fair value
At 1 January 2023
1,750,000
Net gains or losses through fair value adjustments
(150,000)
At 31 December 2023
1,600,000

Investment property comprises two properties. The fair value of the investment property has been arrived at on the basis of a valuation carried out by the directors. The valuation is based on market value by reference to market evidence of transaction prices for similar properties.

On an historical cost basis, the investment properties would have been included at an original cost of £1,141,058.

11
Fixed asset investments
2023
2022
Notes
£
£
Investments in subsidiaries
12
60,001
60,000
JSW HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
11
Fixed asset investments
(Continued)
- 20 -
Movements in fixed asset investments
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023
60,000
Additions
1
At 31 December 2023
60,001
Carrying amount
At 31 December 2023
60,001
At 31 December 2022
60,000
12
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
13
Financial instruments
14
Debtors
15
Creditors: amounts falling due within one year
2023
2022
£
£
Amounts owed to group undertakings
118,133
4,342
16
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2023
2022
Balances:
£
£
Investment property
33,000
33,000
There were no deferred tax movements in the year.

The deferred tax liability set out above is expected to reverse within [12 months] and relates to accelerated capital allowances that are expected to mature within the same period.

JSW HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
17
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
of £1 each
60,000
60,000
60,000
60,000

 

18
Profit and loss reserves

Retained earnings are partly non distributable. Gains relating to changes in the fair value of the Investment Properties are not realised and not available for distribution until the properties are sold.

 

At the year ended 31 December 2022, distributable profit and loss reserves amount to £2,035,366 (2021: £2,056,473). Non distributable profit and loss reserves amount to £427,342 (2021: £168,942).

19
Capital commitments

Amounts contracted for but not provided in the financial statements:

2023
2022
£
£
Acquisition of tangible fixed assets
36,750
-
20
Ultimate controlling party

In this and the proceeding financial year the ultimate controlling party was NJ Wright and JB Ruggles by virtue of their shareholding in the group.

21
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
503,484
486,093
Adjustments for:
Taxation charged/(credited)
-
0
(74,000)
Investment income
(678,478)
(248,800)
Fair value loss/(gain) on investment properties
150,000
(184,400)
Depreciation and impairment of tangible fixed assets
23,238
21,107
Movements in working capital:
Decrease in debtors
-
0
3
Increase in creditors
113,791
4,342
Cash generated from operations
112,035
4,345
JSW HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
22
Analysis of changes in net funds
1 January 2023
31 December 2023
£
£
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