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Registered number: NI622105









VIDEO CONTENT LIBRARY LIMITED









ANNUAL REPORT AND AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
VIDEO CONTENT LIBRARY LIMITED
 
 
COMPANY INFORMATION


Directors
E Bondarenko 
O Kudriavtseva 
N J Pisani 
A Barinov (resigned 27 September 2023)
W Knutelski (resigned 27 September 2023)




Registered number
NI622105



Registered office
Forsyth House
Cromac Square,

Belfast

BT2 8LA




Independent auditors
Zenith Audit Ltd
Statutory Auditors

1st Floor

18 Devonshire Row

London

EC2M 4RH





 
VIDEO CONTENT LIBRARY LIMITED
 

CONTENTS



Page
Strategic Report
1 - 2
Directors' Report
3 - 4
Independent Auditors' Report
5 - 8
Statement of Comprehensive Income
9
Balance Sheet
10
Statement of Changes in Equity
11 - 12
Statement of Cash Flows
13
Analysis of Net Debt
14
Notes to the Financial Statements
15 - 24


 
VIDEO CONTENT LIBRARY LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Business review
 
Since the Russia's invasion of Ukraine on February 24, 2022, the global geopolitical landscape has intensified, resulting in significant instability. This conflict has indirectly contributed to widespread macroeconomic uncertainty, posing operational challenges for the Company.
Video Content Library Limited has faced a decline in demand for its media products, primarily due to sanctions imposed on Russian companies linked to military aggression against Ukraine. Despite these challenges, the Company has maintained its cooperation with global industry partners and successfully achieved its objectives. Profits have been secured through the sale of licences to media companies, including television channels, digital platforms, and content aggregators worldwide.
The Company’s management has taken and continues to implement necessary measures to ensure minimal disruption to operations and sustain the Company's activities, while supporting both employees and customers. Several strategic actions have been undertaken to mitigate negative impacts and improve operational costs. The management will continue to monitor the situation closely and take appropriate actions when and if needed.
For the year 2024, the Company's objectives are as follows:
1. Attracting new customers globally;
2. Expanding the market for content sales;
3. Establishing partnerships with new distributors to access challenging regions such as Central and South Africa, South America, the Far East, and Oceania;
4. Broadening the content portfolio for further sales;
5. Developing a new work stream focused on acquiring rights and distributing TV show formats and series scripts.

Principal risks and uncertainties
 
The susceptibility of the Company to financial risks is monitored as part of its daily management of the business.
Credit risk
Credit risk arises from cash and cash equivalents and outstanding receivables. Close attention is given to the timing of such receipts and are chased accordingly. The directors do not expect any losses from non-performance by the counterparties.
Liquidity risk
The Company has access to a mixture of long-term ancl short-term debt finance that is designed to ensure that the Company has sufficient available funds for operations ancl development opporturiities that may arise.
Currency risk
The Company enters into transactions that are denominated in currencies other than its functional currency, currency, primarily in euro (EUR), pound sterling (GBP) and Russian ruble (RUB). Consequently, the Company is exposed to risk that the exchange rate of its currency relative to other foreign currencies may change in a manner that has an adverse effect on the fair value of future cash flows of that portion of the Company's financial assets or financial liabilities that is denominated in currencies other than United States dollar (USD).
The company's currency risk is monitored, rnanaged and limited wherever possible by management of the company on a monthly basis.

Page 1

 
VIDEO CONTENT LIBRARY LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023


This report was approved by the board on 24 September 2024 and signed on its behalf.



O Kudriavtseva
Director

Page 2

 
VIDEO CONTENT LIBRARY LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

Directors' responsibilities statement

The Directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

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

Results and dividends

The loss for the year, after taxation, amounted to £1,148,499 (2022 - profit £325,726).

The Company proposed and paid dividends of £467,000 (2022: £1,663,200) during the year. 

Directors

The Directors who served during the year were:

E Bondarenko 
O Kudriavtseva 
N J Pisani 
A Barinov (resigned 27 September 2023)
W Knutelski (resigned 27 September 2023)

Page 3

 
VIDEO CONTENT LIBRARY LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Disclosure of information to auditors

Each of the persons who are Directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the Director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the Director has taken all the steps that ought to have been taken as a Director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

The auditorsZenith Audit Ltdwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 24 September 2024 and signed on its behalf.
 





O Kudriavtseva
Director

Page 4

 
VIDEO CONTENT LIBRARY LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF VIDEO CONTENT LIBRARY LIMITED
 

Opinion


We have audited the financial statements of Video Content Library Limited (the 'Company') for the year ended 31 December 2023, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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:


give a true and fair view of the state of the Company's affairs as at 31 December 2023 and of its loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


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 Auditors' 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 United Kingdom, including the Financial Reporting Council'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.


Page 5

 
VIDEO CONTENT LIBRARY LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF VIDEO CONTENT LIBRARY LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The Directors are responsible for the other information contained within the Annual ReportOur 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.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


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:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of Directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 3, 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.


Page 6

 
VIDEO CONTENT LIBRARY LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF VIDEO CONTENT LIBRARY LIMITED (CONTINUED)


Auditors' 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 Auditors' 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.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We performed risk assessment procedures and obtained an understanding of the company and its environment, the applicable financial reporting framework, the applicable laws and regulations, the company's system of internal control and the fraud risk factors relevant to the company that affect the susceptibility of assertions to material misstatement due to fraud. We made enquiries with management regarding actual or suspected fraud, non-compliance with laws and regulations, potential litigation and claims. The engagement partner led a discussion among the audit team with particular emphasis on how and where the company's financial statements may be susceptible to material misstatement due to fraud, including how fraud might occur. The engagement partner assessed that the engagement team collectively had the appropriate competence and capability to identify or recognise non-compliance with laws and regulations.
We considered compliance with UK Companies Act 2006 and the applicable tax legislation as the key laws and regulations which non-compliance could directly lead to material misstatement due to fraud at the financial statement level. We evaluated whether the selection and application of accounting policies by the company may be indicative of fraudulent financial reporting. Audit procedures performed by the audit engagement team responsive to assessed risks of material misstatement due to fraud at the assertion level included but were not limited to:
- Testing the appropriateness of manual journal entries recorded in the general ledger and other adjustments made in the preparation of the financial statements;
- Making inquiries of individuals involved in the financial reporting process about inappropriate or unusual activity relating to the processing of journal entries;
- Selecting and testing journal entries and other adjustments made at the end of a reporting period and throughout the period;
- Reviewing accounting estimates for biases that could represent a risk of material misstatement due to fraud.
Owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements of the financial statements due to irregularities, including fraud, may not be detected, even though we have properly planned and performed our audit in accordance with the auditing standards. For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. In addition, as with any audit, there remains a higher risk of non-detection of irregularities, as they may involve collusion, forgery, intentional omissions, override of internal controls, or collusion.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.


Page 7

 
VIDEO CONTENT LIBRARY LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF VIDEO CONTENT LIBRARY LIMITED (CONTINUED)


Other matters 
 

The financial statements of the Company for the year ended 31 December 2022 were audited by another auditor who expressed an unmodified opinion on those statements on 31 July 2023.


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 2006Our 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 Auditors' 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.





Milena Mitova (Senior Statutory Auditor)
  
for and on behalf of
Zenith Audit Ltd
 
Statutory Auditors
  
1st Floor
18 Devonshire Row
London
EC2M 4RH

24 September 2024
Page 8

 
VIDEO CONTENT LIBRARY LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
  
1,411,417
7,248,476

Cost of sales
  
(604,588)
(5,227,216)

Gross profit
  
806,829
2,021,260

Administrative expenses
  
(2,226,024)
(1,619,129)

Other operating income
  
369,056
-

Operating (loss)/profit
  
(1,050,139)
402,131

Tax on (loss)/profit
 7 
(98,360)
(76,405)

(Loss)/profit for the financial year
  
(1,148,499)
325,726

Other comprehensive income for the year
  

Currency translation differences
  
(3,929)
15,159

Other comprehensive income for the year
  
(3,929)
15,159

Total comprehensive income for the year
  
(1,152,428)
340,885

The notes on pages 15 to 24 form part of these financial statements.

Page 9

 
VIDEO CONTENT LIBRARY LIMITED
REGISTERED NUMBER: NI622105

BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

  

Current assets
  

Stocks
 9 
366,145
522,112

Debtors: amounts falling due within one year
 10 
1,734,605
3,863,082

Cash at bank and in hand
 11 
364,870
731,881

  
2,465,620
5,117,075

Creditors: amounts falling due within one year
 12 
(1,477,715)
(2,509,742)

Net current assets
  
 
 
987,905
 
 
2,607,333

Total assets less current liabilities
  
987,905
2,607,333

  

Net assets
  
987,905
2,607,333


Capital and reserves
  

Called up share capital 
 13 
19,247
19,247

Profit and loss account
 14 
968,658
2,588,086

  
987,905
2,607,333


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 24 September 2024.




O Kudriavtseva
Director

The notes on pages 15 to 24 form part of these financial statements.

Page 10

 
VIDEO CONTENT LIBRARY LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 January 2023
19,247
2,588,086
2,607,333


Comprehensive income for the year

Loss for the year

-
(1,148,499)
(1,148,499)

Currency translation differences
-
(3,929)
(3,929)


Other comprehensive income for the year
-
(3,929)
(3,929)


Total comprehensive income for the year
-
(1,152,428)
(1,152,428)


Contributions by and distributions to owners

Dividends: Equity capital
-
(467,000)
(467,000)


Total transactions with owners
-
(467,000)
(467,000)


At 31 December 2023
19,247
968,658
987,905


The notes on pages 15 to 24 form part of these financial statements.

Page 11

 
VIDEO CONTENT LIBRARY LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 January 2022
19,247
3,910,401
3,929,648


Comprehensive income for the year

Profit for the year

-
325,726
325,726

Currency translation differences
-
15,159
15,159


Other comprehensive income for the year
-
15,159
15,159


Total comprehensive income for the year
-
340,885
340,885


Contributions by and distributions to owners

Dividends: Equity capital
-
(1,663,200)
(1,663,200)


Total transactions with owners
-
(1,663,200)
(1,663,200)


At 31 December 2022
19,247
2,588,086
2,607,333


The notes on pages 15 to 24 form part of these financial statements.

Page 12

 
VIDEO CONTENT LIBRARY LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
£
£

Cash flows from operating activities

(Loss)/profit for the financial year
(1,148,499)
325,726

Adjustments for:

Bad debt provision : loans receivable from related parties
1,478,703
-

Taxation charge
98,360
76,405

Decrease in stocks
155,967
3,305,697

Decrease/(increase) in debtors
65,560
(209,483)

(Decrease)/increase in creditors
(380,360)
718,909

Accrued (income)/expenses
-
(745,606)

Corporation tax (paid)
(49,760)
(70,539)

Foreign currency translation
(3,931)
15,159

Net cash generated from operating activities

216,040
3,416,268



Cash flows from financing activities

New loans from group companies
584,347
-

Loans from group companies repaid
(700,398)
(1,237,481)

Dividends paid
(467,000)
(1,663,200)

Net cash used in financing activities
(583,051)
(2,900,681)

Net (decrease)/increase in cash and cash equivalents
(367,011)
515,587

Cash and cash equivalents at beginning of year
731,881
216,294

Cash and cash equivalents at the end of year
364,870
731,881


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
364,870
731,881

364,870
731,881


The notes on pages 15 to 24 form part of these financial statements.

Page 13

 
VIDEO CONTENT LIBRARY LIMITED
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2023




At 1 January 2023
Cash flows
At 31 December 2023
£

£

£

Cash at bank and in hand

731,881

(367,011)

364,870

Debt due within 1 year

(693,713)

693,713

-


38,168
326,702
364,870

The notes on pages 15 to 24 form part of these financial statements.

Page 14

 
VIDEO CONTENT LIBRARY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

The Company  is  a private company limited by shares, registered in Northenl Ireland, The address of the registered office is Forsyth House, Cromac Square, Belfast, BT2 8LA and the place of business is 288 Bishopsgate, Lonclon, EC2M 4QP.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Foreign currency translation

Functional and presentation currency

The Company's functional currency is USD. This differs from the presentational currency which is GBP

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Page 15

 
VIDEO CONTENT LIBRARY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

  
2.3

Revenue

Revenue recognition
Turnover of licences
Income represents licence fees receivable from the distribution of television programmes, excluding value added tax. The company's policy is to recognise licence fee income once the following criteria are met:
a) a licence agreement has been executed by both parties;
b) delivery to the broadcaster has occurred; and
c) the licence term has commenced
Any license fees received in advance which do not meet all of the above criteria, are included in deferred income until the criteria are met and the below approaches applied:
1. When license fees are granted for a number of years, the licence revenue and related cost of sales are recognized in equal amounts over the course of the licence term.
2. When license fees are granted for a fixed period and not divided into multiple years, the licence revenue and related cost of sales are recognized in full at the start of the licence term. This accounting treatment is considered the most appropriate since the license fees are agreed in advance, they are not contingent on any future event, the customer is able to exploit the rights freely and the company has no future performance obligations subsequent to delivery.

 
2.4

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

  
2.5

Employee benefits

The cost of short-term employee benefits are recognised as a liability and an expense, unless these costs are required to be recognises as part of the cost of stock or fixed assets.

 
2.6

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.7

Taxation

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

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

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

  
2.8

Stocks

Stocks of content are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of production and other costs incurred in bringing the stock to its present location and condition.
Recognition of an asset in stock for acquired programming rights; occurs on the signing of a contract between the company and the licence seller.

  
2.9

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are
measured initially at fair value, net of transaction costs, and are measured subsequently at amortised
cost using the effective interest method, less any impairment.

 
2.10

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

  
2.11

Creditors

Creditors are obligations to pay for goods or services that have been acquired in the ordinary course
of business from suppliers.
Creditors are recognised initially at fair value and subsequently measured at amortised cost using the
effective interest method.

  
2.12

Financial instruments

All loans and borrowings are recognised initially at cost, which is the fair value of the consideration received, net of issue costs associated with the borrowings.

  
2.13

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense.
Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date aud subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation.Any adjustments to the amounts previously recognised are recognised in profit and loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit and loss in the period it arises.

 
2.14

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

3.


Judgments in applying accounting policies 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.
The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of the assets and liabilities within the next financial year and are:
Determining when the significant risks and rewards have transferred to the customer and a sale is recognised. This has been determined to be upon delivery to the broadcaster and commencement of the licence term.
Determining and recognising bad debt provision for doubtful debts. At each reporting date, the Company reviews the receivables to assess whether an impairment loss should be recorded in the statement of comprehensive income. Impairment of receivables is assessed individually for each receivable. Impairment is calculated on an individual basis depending on delinquencies and case specific analysis. When assessing the requirement for such a provision, management consider factors including the current credit rating of the customer, the ageing profile of the debt and previous experience.
Determining whether there are indicators of impairment of the company's stock. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset and where it is a component of a larger cash-generating unit, the viability and expected future performance of that unit.


4.


Other operating income

2023
2022
£
£

Other operating income
369,056
-

369,056
-


Other operating income comprises of £369,056 of creditors written off. 

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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

5.


Operating (loss)/profit

The operating (loss)/profit is stated after charging:

2023
2022
£
£

Director's remuneration
368,563
399,448

Impairment of trade debtors
159,189
1,082,212

Other operating lease rentals
31,290
48,539

Auditors' remuneration - audit services
16,500
13,540

Auditors' remuneration - non audit services
-
2,960

Stock writen off
78,505
-

Impairment of amounts due from group entities
1,468,328
-


6.


Employees

Staff costs were as follows:


2023
2022
£
£

Wages and salaries
412,383
421,948

Social security costs
8,172
9,427

Cost of defined contribution scheme
6,338
3,031

426,893
434,406


Wages and salaries comprise of £368,563 of directors' remuneration.

The average monthly number of employees, including the Directors, during the year was as follows:


        2023
        2022
            No.
            No.







Management staff
4
4



Administration staff
1
1

5
5

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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

7.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
98,360
76,405


98,360
76,405


Total current tax
98,360
76,405

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - the same as) the standard rate of corporation tax in the UK of 23.5% (2022 - 19%). The differences are explained below:

2023
2022
£
£


(Loss)/profit on ordinary activities before tax
(1,050,139)
402,131


(Loss)/profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.5% (2022 - 19%)
(246,783)
76,405

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
345,057
-

Other differences leading to an increase (decrease) in the tax charge
86
-

Total tax charge for the year
98,360
76,405


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


8.


Dividends

2023
2022
£
£


Dividends paid duling the year (exclucling those for
which a liability existed at the end of the prior year)
467,000
1,663,200

467,000
1,663,200

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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

9.


Stocks

2023
2022
£
£

Own produced content
366,145
522,112

366,145
522,112


The replacement value of the above stocks would not be significantly different from the values stated.


10.


Debtors

2023
2022
£
£


Trade debtors
415,571
358,024

Amounts owed by group entities
1,036,500
3,054,939

Other debtors
61,730
95,083

Prepayments and accrued income
220,804
355,036

1,734,605
3,863,082



.


2023 - Provision on trade debtors
2023 - Provision on Amounts owed by group entities
2022 - Provision on trade debtors
2022 - Provision  on Amounts owed by group entities
        £
        £
        £
        £
Provision b/f @1 January

1,030,619

-

300,979
 
-
 
Additional provision for the year

159,189

1,468,328

1,082,212
 
-
 
Foreign exchange movement

(201,237)

(34,235)

(352,572)
 
-
 
Provision c/f @31 December

988,571

1,434,093

1,030,619
 
-
 

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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

11.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
364,870
731,881

364,870
731,881



12.


Creditors: Amounts falling due within one year

2023
2022
£
£

Trade creditors
815,534
1,194,676

Amounts owed to group undertakings
591,084
1,291,482

Corporation tax
54,598
5,866

Accruals and deferred income
16,499
17,718

1,477,715
2,509,742



13.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



18,000 (2022 - 18,000) 'A' Ordinary Shares shares of $1.00 each
11,548
11,548
12,000 (2022 - 12,000) 'B' Ordinary Shares shares of $1.00 each
7,699
7,699

19,247

19,247

Both classes of Ordinary shares are non redeernable and hold full rights in respect of voting and entitle the holder to full participation in respect of equity and in the event of a winding up of the company.



14.


Reserves

Profit and loss account

This reserve records retained earnings and accumulated losses.

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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

15.


Commitments under operating leases

At 31 December 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
23,625
12,045

Later than 1 year and not later than 5 years
7,875
-

31,500
12,045


16.


Related party transactions

The company has taken advantage of the exemptions in FRS 102 from the requirement to make disclosures in respect of transactions with wholly owned group companies.


17.


Controlling party

The immediate parent company is TRK Media Holding Limited incorporated in Cyprus and the ultimate parent company is System Capital Managernent, a company incorporated in Ukraine.
The ultimate controlling party is Rinat Akhmetov.


18.


Auditors' liability limitation agreement

An auditors' limitation of liability agreement has been approved by the members for the financial period ended 31 December 2023. The principal terms and conditions are as below:
-The agreement limits the amount of any liability owed to the Company by the auditors in respect of any negligence default, breach of duty or breach of trust, occurring in the course of audit of the Company's accounts and pursuant to this agreement the auditor may be guilty in relation to the Company.
- The agreement also stipulates the maximum aggregated amount payable in event of any of the circumstances stated above.

 
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