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COMPANY REGISTRATION NUMBER: 10274921
CRYSTAL ASSETS LIMITED
Filleted Unaudited Financial Statements
31 July 2024
CRYSTAL ASSETS LIMITED
Statement of Financial Position
31 July 2024
31 Jul 24
31 Jan 24
Note
£
£
Current assets
Debtors: due within one year
7
1,232,806
2,187,837
Investments
8
350,000
350,000
Cash at bank and in hand
1,932
5,092
------------
------------
1,584,738
2,542,929
Creditors: amounts falling due within one year
9
5,015,290
5,011,788
------------
------------
Net current liabilities
3,430,552
2,468,859
------------
------------
Total assets less current liabilities
( 3,430,552)
( 2,468,859)
Creditors: amounts falling due after more than one year
10
17,510
23,124
Accruals and deferred income
4,229
4,397
------------
------------
Net liabilities
( 3,452,291)
( 2,496,380)
------------
------------
Capital and reserves
Called up share capital
100
100
Profit and loss account
( 3,452,391)
( 2,496,480)
------------
------------
Shareholders deficit
( 3,452,291)
( 2,496,380)
------------
------------
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 July 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 July 2024
These financial statements were approved by the board of directors and authorised for issue on 13 August 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 February 2024 to 31 July 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 £955,911 (31/01/2024 - loss £1,671,396) and has closing net liabilities of £3,452,391 (31/01/2024 - net liabilities of £2,496,480). 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 £0 has been recognised as a cost of sales redemption interest expense in these financial statements (31/01/2024 - £1,378,472). 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 £0 (31/01/2024 -£1,378,472) 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
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.
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
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. Bad debts written off
The amount of £845,013.74 bad debts written off comprises of the below, as these have been outstanding for more than 36 months.
BSR Consultants Limited: Principal amount £22,000, Interest £14,000. Total £36,000. Company insolvent & deemed uncollectable
Marcos Mera: Principal amount £19,000, Interest £9,407.33. Total £28,407.33. He has been made personally bankrupt
M S Rahman: Principal amount £15,431.61. Total £15,431.61. Deemed uncollectable
QK Enterprises Limited: Principal amount £21,500, Interest £11,051. Total £32,551. Company insolvent & deemed uncollectable
Rajanesh Kumanan: Interest £2,266.22. Total £2,266.22. Deemed uncollectable
Rapid Design & Construction Consultancy Limited: Principal amount £47,000, Interest £45,684.31. Total £92,684.31 Company insolvent & deemed uncollectable
Refass Constructions and Investments Ltd: Principal amount £240,000, Interest £224,186.48. Total £464,186.48. Company insolvent & deemed uncollectable
S P Thorp: Principal amount £38,250. Total £38,250. He has been made personally bankrupt
V R Kotcherlakota: Interest £7,378.73. Total £7,378.73. Deemed uncollectable
Wenso Ltd: Principal amount £122,000, Interest £5,858.06. Total £127,858.06. Company is in liquidation & deemed uncollectable
5. Employee numbers
The average number of persons employed by the company during the period amounted to 1 (2024: 1 ).
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 £0 (31/01/2024 - £1,378,472) has been recognised within cost of sales in these financial statements.
7. Debtors
Debtors falling due within one year are as follows:
31 Jul 24
31 Jan 24
£
£
Other debtors
1,232,806
2,187,837
------------
------------
Debtors falling due after one year
8. Investments
31 Jul 24
31 Jan 24
£
£
Other investments - RRAM Plc
350,000
350,000
---------
---------
9. Creditors: amounts falling due within one year
31 Jul 24
31 Jan 24
£
£
Social security and other taxes
1,188
7,042
Other creditors
5,014,102
5,004,746
------------
------------
5,015,290
5,011,788
------------
------------
Included within creditors is convertible loans totalling £4,367,104.26 (31/01/2024 - £4,429,455) 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.
10. Creditors: amounts falling due after more than one year
31 Jul 24
31 Jan 24
£
£
Other creditors
17,510
23,124
--------
--------
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. Related party transactions
The company was under the control of Ranjan Kumar Choudhary who is the sole director and shareholder.