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Registration number: 07607540

Security Dynamics (Europe) Ltd

Annual Report and Unaudited Abridged Financial Statements

for the Year Ended 31 May 2023

 

Security Dynamics (Europe) Ltd

Contents

Company Information

1

Abridged Balance Sheet

2 to 3

Notes to the Unaudited Abridged Financial Statements

4 to 9

 

Security Dynamics (Europe) Ltd

Company Information

Director

Mr Rakesh Chandna

Registered office

Unit 1, Innovation Park
89 Manor Farm Road
Alperton, Middlesex
HA0 1BA

Accountants

Flintham Mackenzie Limited
Chartered Accountants
277 - 279 Chiswick High Road
London
W4 4PU

 

Security Dynamics (Europe) Ltd

(Registration number: 07607540)
Abridged Balance Sheet as at 31 May 2023

Note

2023
£

2022
£

Fixed assets

 

Intangible assets

4

-

20,800

Tangible assets

5

187,326

136,358

 

187,326

157,158

Current assets

 

Stocks

6

3,278,531

2,722,590

Debtors

1,049,445

1,038,173

Cash at bank and in hand

 

89,497

467,432

 

4,417,473

4,228,195

Creditors: Amounts falling due within one year

(2,829,785)

(2,621,345)

Net current assets

 

1,587,688

1,606,850

Total assets less current liabilities

 

1,775,014

1,764,008

Creditors: Amounts falling due after more than one year

(95,415)

(110,995)

Provisions for liabilities

(42,046)

(28,426)

Accruals and deferred income

 

(4,800)

(10,810)

Net assets

 

1,632,753

1,613,777

Capital and reserves

 

Called up share capital

100

100

Retained earnings

1,632,653

1,613,677

Shareholders' funds

 

1,632,753

1,613,777

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

Director's 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 director acknowledges his 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.

 

Security Dynamics (Europe) Ltd

(Registration number: 07607540)
Abridged Balance Sheet as at 31 May 2023

All of the company’s members have consented to the preparation of an Abridged Balance Sheet in accordance with Section 444(2A) of the Companies Act 2006.

Approved and authorised by the director on 29 July 2024
 

.........................................
Mr Rakesh Chandna
Director

 

Security Dynamics (Europe) Ltd

Notes to the Unaudited Abridged Financial Statements for the Year Ended 31 May 2023

1

General information

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

The address of its registered office is:
Unit 1, Innovation Park
89 Manor Farm Road
Alperton, Middlesex
HA0 1BA
England

These financial statements were authorised for issue by the director on 29 July 2024.

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 abridged 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 abridged financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

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 sales/value added tax, returns, rebates and discounts.

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.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

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

 

Security Dynamics (Europe) Ltd

Notes to the Unaudited Abridged Financial Statements for the Year Ended 31 May 2023

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 tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet 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

Short leasehold improvement

over 4 years

Fixtures & fittings

25% Reducing balance

Motor vehicles

25% Reducing balance

Computer equipment

25% Reducing balance

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Goodwill

over 10 years

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

 

Security Dynamics (Europe) Ltd

Notes to the Unaudited Abridged Financial Statements for the Year Ended 31 May 2023

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. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. 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 receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable 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 subsequently measured at amortised cost using the effective interest method.

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 charges.

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.

Leases

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

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

 

Security Dynamics (Europe) Ltd

Notes to the Unaudited Abridged Financial Statements for the Year Ended 31 May 2023

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.

3

Staff numbers

The average number of persons employed by the company (including the director) during the year, was 19 (2022 - 20).

 

Security Dynamics (Europe) Ltd

Notes to the Unaudited Abridged Financial Statements for the Year Ended 31 May 2023

4

Intangible assets

Total
£

Cost or valuation

At 1 June 2022

208,000

At 31 May 2023

208,000

Amortisation

At 1 June 2022

187,200

Amortisation charge

20,800

At 31 May 2023

208,000

Carrying amount

At 31 May 2023

-

At 31 May 2022

20,800

5

Tangible assets

Short leasehold land and buildings
£

Fixtures and fittings
£

Office equipment
£

Motor vehicles
 £

Cost or valuation

At 1 June 2022

54,514

79,477

37,331

163,806

Additions

19,965

92,647

6,985

-

At 31 May 2023

74,479

172,124

44,316

163,806

Depreciation

At 1 June 2022

48,218

63,342

20,962

66,248

Charge for the year

11,287

27,137

5,839

24,366

At 31 May 2023

59,505

90,479

26,801

90,614

Carrying amount

At 31 May 2023

14,974

81,645

17,515

73,192

At 31 May 2022

6,296

16,135

16,369

97,558

 

Security Dynamics (Europe) Ltd

Notes to the Unaudited Abridged Financial Statements for the Year Ended 31 May 2023

Total
£

Cost or valuation

At 1 June 2022

335,128

Additions

119,597

At 31 May 2023

454,725

Depreciation

At 1 June 2022

198,770

Charge for the year

68,629

At 31 May 2023

267,399

Carrying amount

At 31 May 2023

187,326

At 31 May 2022

136,358

Included within the net book value of land and buildings above is £14,973 (2022 - £6,295) in respect of short leasehold land and buildings.
 

6

Stocks

2023
£

2022
£

Other inventories

3,278,531

2,722,590