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COMPANY REGISTRATION NUMBER: 10274921
CRYSTAL ASSETS LIMITED
Filleted Unaudited Financial Statements
31 January 2024
CRYSTAL ASSETS LIMITED
Statement of Financial Position
31 January 2024
31 Jan 24
31 Jul 22
Note
£
£
Fixed assets
Intangible assets
5
34,667
Current assets
Debtors: due within one year
8
2,187,837
4,528,912
Investments
9
350,000
Cash at bank and in hand
5,092
24,223
------------
------------
2,542,929
4,553,135
Creditors: amounts falling due within one year
10
5,011,788
5,363,507
------------
------------
Net current liabilities
2,468,859
810,372
------------
---------
Total assets less current liabilities
( 2,468,859)
( 775,705)
Creditors: amounts falling due after more than one year
11
23,124
28,339
Accruals and deferred income
4,397
20,940
------------
---------
Net liabilities
( 2,496,380)
( 824,984)
------------
---------
Capital and reserves
Called up share capital
100
100
Profit and loss account
( 2,496,480)
( 825,084)
------------
---------
Shareholders deficit
( 2,496,380)
( 824,984)
------------
---------
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
In accordance with section 444 of the Companies Act 2006, the statement of income and retained earnings has not been delivered.
For the period ending 31 January 2024 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 financial statements for the period in question in accordance with section 476 ;
- The director acknowledges his responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements .
CRYSTAL ASSETS LIMITED
Statement of Financial Position (continued)
31 January 2024
These financial statements were approved by the board of directors and authorised for issue on 5 March 2024 , and are signed on behalf of the board by:
Mr R Choudhary
Director
Company registration number: 10274921
CRYSTAL ASSETS LIMITED
Notes to the Financial Statements
Period from 1 August 2022 to 31 January 2024
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 16 Berkeley Street, Mayfair, London, W1J 8DZ.
2. Statement of compliance
These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Going concern
The company results for the year report a loss of £1,671,396 (2022 - loss £658,640) and has closing net liabilities of £2,496,480 (2022 - net liabilities of £824,084). During the comparative year the company borrowed £3.2m in convertible loans which, if repaid rather than converted, will attract a 100% redemption premium. In accordance with the accounting requirements of FRS102, the redemption premium is being recognised over the life of these loans and accordingly £1,378,472 has been recognised as a cost of sales redemption interest expense in these financial statements (2022 - £1,066,667). It is the intention of the directors for these loans to be repaid.For these reasons, the directors consider it appropriate to prepare the financial statements on a going concern basis.
Changes in accounting policies
The directors have chosen to include interest receivable within turnover and interest payable within cost of sales on the basis this is the main source of income and cost to the business. The presentation of the comparatives have been adjusted to reflect this. There has been no impact to reserves as a result of this adjustment
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances Significant judgements The judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows: Revenue recognition The directors have chosen to adopt the accounting policy of recognising interest receivable within turnover and interest payable within cost of sales, the comparatives being amended accordingly. Interest income is recognised on a time apportioned basis using the effective interest method. Convertible loans The directors have accounted for the convertible loans in accordance with section 22 of FRS102. The proceeds have been allocated between the liability component and the equity component by first determining the amount of the liability component as the fair value of a similar liability that does not have a conversion feature and the balance being the equity element of the loan. The full loan balance has been deemed as a liability and accounted for as a loan. If the loan is repaid rather than converted, it will attract a 100% redemption premium. In accordance with the accounting requirements of FRS102, the redemption premium is being recognised over the life of the loan. This has resulted in an interest charge of £1,378,472 (2022 -£1,066,667) being recognised in profit and loss. It is the intention of the directors for this loan to be repaid. Redeemable preference shares The directors have reviewed the terms attached to the redeemable preference shares and concluded they meet the definition of equity rather than liability and have accounted for them accordingly. Loans The directors consider all loans to be basic financial instruments where payment is within normal business terms and interest charged is market rate. Key sources of estimation uncertainty Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows: Loan recovery rate estimate The directors consider the recoverability of loans on an individual basis and will provide for loss that would arise in the event of a default on those loans.
Revenue recognition
Revenue from interest income is recognised on a time apportioned basis using the effective interest method. Revenue from the provision of other services is measured at the fair value of the consideration received or receivable and represents amounts receivable for services rendered, stated net of discounts and of Value Added Tax
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Intangible assets
Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. Any intangible assets carried at revalued amounts, are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses. Intangible assets acquired as part of a business combination are only recognised separately from goodwill when they arise from contractual or other legal rights, are separable, the expected future economic benefits are probable and the cost or value can be measured reliably.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
Software
-
20% reducing balance
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Plant and machinery
-
20% straight line
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.
Government grants
Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Government grants are recognised using the accrual model and the performance model. Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable. Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income and not deducted from the carrying amount of the asset. Under the performance model, where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.
Financial instruments
The company holds basic financial instruments as defined in FRS102. The financial assets and financial liabilities of the company and their measurement basis are as follows: Financial assets - trade and other debtors are basic financial instruments and are debt instruments measured at amortised cost. Prepayments are not financial instruments. Cash at bank is classified as a basic financial instrument and is measured at amortised cost. Financial liabilities - trade creditors and other creditors are financial instruments, and are measured at amortised cost. Taxation and social security are not included in the financial instruments disclosure definition
4. Employee numbers
The average number of persons employed by the company during the period amounted to 1 (2022: 2 ).
5. Intangible assets
Intangible asset user defined 1
£
Cost
At 1 August 2022
50,000
Additions
Disposals
( 50,000)
--------
At 31 January 2024
--------
Amortisation
At 1 August 2022
15,333
Charge for the period
9,638
Disposals
( 24,971)
--------
At 31 January 2024
--------
Carrying amount
At 31 January 2024
--------
At 31 July 2022
34,667
--------
6. Cost of sales - redemption premium
During the year the company borrowed £3.2m in convertible loans which, if repaid rather than converted, will attract a 100% redemption premium. In accordance with the accounting requirements of FRS102, the redemption premium is being recognised over the life of these loans and accordingly £1,378,472 (2022 -£1,066,667) has been recognised within cost of sales in these financial statements.
7. Tangible assets
Equipment
£
Cost
At 1 August 2022 and 31 January 2024
787
----
Depreciation
At 1 August 2022 and 31 January 2024
787
----
Carrying amount
At 31 January 2024
----
At 31 July 2022
----
8. Debtors
Debtors falling due within one year are as follows:
31 Jan 24
31 Jul 22
£
£
Other debtors
2,187,837
4,528,912
------------
------------
Debtors falling due after one year
9. Investments
31 Jan 24
31 Jul 22
£
£
Other investments - RRAM Plc
350,000
---------
----
10. Creditors: amounts falling due within one year
31 Jan 24
31 Jul 22
£
£
Bank loans and overdrafts
10,000
Social security and other taxes
7,042
1,357
Other creditors
5,004,746
5,352,150
------------
------------
5,011,788
5,363,507
------------
------------
Included within creditors is convertible loans totalling £4,429,455 (2022 - £5,021,529) which includes the redemption premium as disclosed in the accounting policies note. The directors consider that the equity element of the loan to be valued at £nil and have therefore disclosed the full loan as liability. The bank loan is a Bounce Back loan which has been guaranteed by the government and the first year of interest has been settled by the government.
11. Creditors: amounts falling due after more than one year
31 Jan 24
31 Jul 22
£
£
Other creditors
23,124
28,339
--------
--------
The bank loan is a Bounce Back loan which has been guaranteed by the government and the first year of interest has been settled by the government.
12. Related party transactions
The company was under the control of Ranjan Kumar Choudhary who is the sole director and shareholder.