ESAK Limited 11007516 false 2022-11-01 2023-10-31 2023-10-31 The principal activity of the company is that of property investment. Digita Accounts Production Advanced 6.30.9574.0 true true 11007516 2022-11-01 2023-10-31 11007516 2023-10-31 11007516 core:ProvisionsDeferredTax 2023-10-31 11007516 core:RevaluationInvestmentPropertyDeferredTax 2023-10-31 11007516 core:CurrentFinancialInstruments 2023-10-31 11007516 core:CurrentFinancialInstruments core:WithinOneYear 2023-10-31 11007516 core:Non-currentFinancialInstruments 2023-10-31 11007516 core:Non-currentFinancialInstruments core:AfterOneYear 2023-10-31 11007516 core:FurnitureFittingsToolsEquipment 2023-10-31 11007516 bus:SmallEntities 2022-11-01 2023-10-31 11007516 bus:AuditExemptWithAccountantsReport 2022-11-01 2023-10-31 11007516 bus:FullAccounts 2022-11-01 2023-10-31 11007516 bus:SmallCompaniesRegimeForAccounts 2022-11-01 2023-10-31 11007516 bus:RegisteredOffice 2022-11-01 2023-10-31 11007516 bus:Director1 2022-11-01 2023-10-31 11007516 bus:Director2 2022-11-01 2023-10-31 11007516 bus:Director3 2022-11-01 2023-10-31 11007516 bus:PrivateLimitedCompanyLtd 2022-11-01 2023-10-31 11007516 core:FurnitureFittings 2022-11-01 2023-10-31 11007516 core:FurnitureFittingsToolsEquipment 2022-11-01 2023-10-31 11007516 core:OtherRelatedParties 2022-11-01 2023-10-31 11007516 countries:EnglandWales 2022-11-01 2023-10-31 11007516 2022-10-31 11007516 core:FurnitureFittingsToolsEquipment 2022-10-31 11007516 2021-11-01 2022-10-31 11007516 2022-10-31 11007516 core:ProvisionsDeferredTax 2022-10-31 11007516 core:RevaluationInvestmentPropertyDeferredTax 2022-10-31 11007516 core:CurrentFinancialInstruments 2022-10-31 11007516 core:CurrentFinancialInstruments core:WithinOneYear 2022-10-31 11007516 core:Non-currentFinancialInstruments 2022-10-31 11007516 core:Non-currentFinancialInstruments core:AfterOneYear 2022-10-31 11007516 core:FurnitureFittingsToolsEquipment 2022-10-31 iso4217:GBP xbrli:pure

Registration number: 11007516

Prepared for the registrar

ESAK Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 October 2023

 

ESAK Limited

Contents

Company Information

1

Balance Sheet

2

Notes to the Unaudited Financial Statements

3 to 9

 

ESAK Limited

Company Information

Directors

J S Aujla

K K Aujla

H K Aujla

Registered office

Staverton Court
Staverton
Cheltenham
GL51 0UX

Accountants

Hazlewoods LLP
Staverton Court
Staverton
Cheltenham
GL51 0UX

 

ESAK Limited

(Registration number: 11007516)
Balance Sheet as at 31 October 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

4

646

880

Investment property

5

825,000

825,000

 

825,646

825,880

Current assets

 

Debtors

6

3,985

2,803

Cash at bank and in hand

 

90,425

76,140

 

94,410

78,943

Creditors: Amounts falling due within one year

7

(30,427)

(28,353)

Net current assets

 

63,983

50,590

Total assets less current liabilities

 

889,629

876,470

Creditors: Amounts falling due after more than one year

7

(517,633)

(537,945)

Deferred tax liabilities

9

(63,910)

(48,616)

Net assets

 

308,086

289,909

Capital and reserves

 

Called up share capital

100

100

Revaluation reserve

191,247

206,546

Profit and loss account

116,739

83,263

Shareholders' funds

 

308,086

289,909

For the financial year ending 31 October 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 24 July 2024 and signed on its behalf by:
 


H K Aujla
Director

 

ESAK Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 October 2023

 

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Staverton Court
Staverton
Cheltenham
GL51 0UX

 

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Going concern

After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Critical accounting 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 amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
 

Judgements

No significant judgements have been made by management in preparing these financial statements.

Key sources of estimation uncertainty

No key sources of estimation uncertainty have been identified by management in preparing these financial statements other than those detailed in these accounting policies.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of returns, rebates and discounts and after eliminating sales within the company.

The company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the company's activities.

 

ESAK Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 October 2023

Tax

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

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

Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Furniture, fittings and equipment

15% straight line

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually by external valuers. The valuers use observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

 

ESAK Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 October 2023

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar expenses.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

 

ESAK Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 October 2023

Financial instruments


Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

 Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

 Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

The recoverable amount of goodwill is derived from measurement of the present value of the future cash flows of the cash-generating units ('CGUs') of which the goodwill is a part. Any impairment loss in respect of a CGU is allocated first to the goodwill attached to that CGU, and then to other assets within that CGU on a pro-rata basis.

Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. Where a reversal of impairment occurs in respect of a CGU, the reversal is applied first to the assets (other than goodwill) of the CGU on a pro-rata basis and then to any goodwill allocated to that CGU.

For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

 

3

Staff numbers

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

 

ESAK Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 October 2023

 

4

Tangible assets

Furniture, fittings and equipment
 £

Total
£

Cost or valuation

At 1 November 2022

1,557

1,557

At 31 October 2023

1,557

1,557

Depreciation

At 1 November 2022

677

677

Charge for the year

234

234

At 31 October 2023

911

911

Carrying amount

At 31 October 2023

646

646

At 31 October 2022

880

880

 

5

Investment properties

£

At 1 November 2022 and 31 October 2023

825,000

On 31 October 2022 the investment property was valued by an independent valuer on an open market basis. This class of assets has a current value of £825,000 (2022 - £825,000) and a carrying amount at historical cost of £570,005 (2022 - £570,005). The depreciation cost is £Nil.

 

ESAK Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 October 2023

 

6

Debtors

2023
 £

2022
 £

Trade debtors

1,885

1,469

Prepayments

2,100

1,334

 

3,985

2,803

 

7

Creditors

Note

2023
 £

2022
 £

Due within one year

 

Loans and borrowings

8

17,809

17,955

Trade creditors

 

158

123

Accrued expenses

 

3,007

2,400

Corporation tax liability

9,453

7,875

 

30,427

28,353

Note

2023
£

2022
£

Due after one year

 

Loans and borrowings

8

517,633

537,945

 

8

Loans and borrowings

2023
£

2022
£

Current loans and borrowings

Bank borrowings

17,060

16,916

Other borrowings

749

1,039

17,809

17,955

Note

2023
£

2022
£

Non-current loans and borrowings

Bank borrowings

 

180,681

197,703

Amounts due to group undertakings

10

336,952

340,242

 

517,633

537,945

 

ESAK Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 October 2023

 

9

Deferred tax

Deferred tax assets and liabilities

2023

Liability
£

Differences between accumulated depreciation and capital allowances

162

Deferred tax arising from revaluation of investment properties

63,748

63,910

2022

Liability
£

Differences between accumulated depreciation and capital allowances

167

Deferred tax arising from revaluation of investment properties

48,449

48,616

 

10

Related party transactions

Summary of transactions with other related parties

During the year the company repaid £3,290 (2022 - £3,106) to a related party. At the balance sheet date the amount due to the related party was £336,952 (2022 - £340,242). No interest has been charged and the amount is repayable on demand.