SEISMIC IMAGE PROCESSING LIMITED
3486840
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
MHA
12 CARDEN PLACE
ABERDEEN
AB10 1UR
SEISMIC IMAGE PROCESSING LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Statement of changes in equity
3
Notes to the financial statements
4 - 11
SEISMIC IMAGE PROCESSING LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
6
247,094
86,813
Investment property
7
6,580,040
6,580,040
Investments
8
1,000
124,254
6,828,134
6,791,107
Current assets
Debtors
9
1,157,364
1,390,369
Cash at bank and in hand
1,093,183
1,575,758
2,250,547
2,966,127
Creditors: amounts falling due within one year
10
(703,100)
(1,252,837)
Net current assets
1,547,447
1,713,290
Total assets less current liabilities
8,375,581
8,504,397
Creditors: amounts falling due after more than one year
11
(286,586)
(649,972)
Net assets
8,088,995
7,854,425
Capital and reserves
Called up share capital
5
5
Profit and loss reserves
8,088,990
7,854,420
Total equity
8,088,995
7,854,425
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 31 December 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
SEISMIC IMAGE PROCESSING LIMITED
BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2023
31 December 2023
- 2 -
The financial statements were approved and signed by the director and authorised for issue on
24 September 20242024-09-24
Jagat Singh Deo
Director
Company registration number 3486840 (England and Wales)
SEISMIC IMAGE PROCESSING LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
5
8,321,208
8,321,213
Year ended 31 December 2022:
Loss and total comprehensive income
-
(386,788)
(386,788)
Dividends
-
(80,000)
(80,000)
Balance at 31 December 2022
5
7,854,420
7,854,425
Year ended 31 December 2023:
Profit and total comprehensive income
-
314,570
314,570
Dividends
-
(80,000)
(80,000)
Balance at 31 December 2023
5
8,088,990
8,088,995
SEISMIC IMAGE PROCESSING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
1
Accounting policies
Company information
Seismic Image Processing Limited is a private company limited by shares in the United Kingdom and incorporated in England and Wales. The registered office is 3 West Dene, Allwoodley, Leeds, LS17 8QT.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover represents revenue earned under contracts to provide seismic imaging services and rental income. Revenue is recognised as earned when, and to the extent that, the firm obtains the right to consideration in exchange for its performance under these contracts. It is measured at the fair value of the right to consideration, which represents amounts chargeable to clients, including expenses and disbursements but excluding value added tax.
Revenue is generally recognised as contract activity progresses so that for incomplete contracts it reflects the partial performance of the contractual obligations. For such contracts the amount of revenue reflects the accrual of the right to consideration by reference to the value of work performed. Revenue not billed to clients is included in work in progress.
Rental income is received monthly in advance and is recognised as earned when, and to the extent that, the company obtains the right to consideration in exchange for the rental of the property.
1.3
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
20% Straight line
Plant and machinery
50% Straight line
Fixtures, fittings & equipment
20% Straight line
Motor vehicles
25% Straight line
Investment properties fixtures & fittings
20% Straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
SEISMIC IMAGE PROCESSING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 5 -
1.5
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.
1.6
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
1.7
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.8
Cash at bank and in hand
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
SEISMIC IMAGE PROCESSING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 6 -
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
SEISMIC IMAGE PROCESSING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 7 -
Deferred tax
The company provides for deferred taxation in respect of all unreversed timing differences arising between accounting and taxable profits.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leases
Rentals payable under operating leases are charged against income on a straight line basis over the lease term.
1.15
Government grants
Grants are credited to deferred revenue. Grants towards capital expenditure are released to the profit and loss account over the expected useful life of the assets. Grants towards revenue expenditure are released to the profit and loss account as the related expenditure is incurred.
1.16
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Turnover and other revenue
2023
2022
£
£
Other revenue
Interest income
2,242
-
Grants received
-
15,728
SEISMIC IMAGE PROCESSING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
4
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
9
10
5
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
87,665
Adjustments in respect of prior periods
(677)
Total current tax
87,665
(677)
6
Tangible fixed assets
Land and buildings
Plant and machinery etc
Investment properties fixtures & fittings
Total
£
£
£
£
Cost
At 1 January 2023
35,987
1,373,574
243,379
1,652,940
Additions
216,737
216,737
Disposals
(269,139)
(269,139)
At 31 December 2023
35,987
1,321,172
243,379
1,600,538
Depreciation and impairment
At 1 January 2023
35,987
1,312,954
217,186
1,566,127
Depreciation charged in the year
37,544
18,652
56,196
Eliminated in respect of disposals
(268,879)
(268,879)
At 31 December 2023
35,987
1,081,619
235,838
1,353,444
Carrying amount
At 31 December 2023
239,553
7,541
247,094
At 31 December 2022
60,620
26,193
86,813
7
Investment property
2023
£
Fair value
At 1 January 2023 and 31 December 2023
6,580,040
SEISMIC IMAGE PROCESSING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
7
Investment property
(Continued)
- 9 -
Investment property comprises of rental property to let. The fair value of the investment property has been arrived at on the basis of a valuation carried out by the directors. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.
8
Fixed asset investments
2023
2022
£
£
Shares in group undertakings and participating interests
1,000
1,000
Other investments other than loans
123,254
1,000
124,254
Movements in fixed asset investments
Shares in subsidiaries
Other investments
Total
£
£
£
Cost or valuation
At 1 January 2023
1,000
123,254
124,254
Written off
-
(123,254)
(123,254)
At 31 December 2023
1,000
-
1,000
Carrying amount
At 31 December 2023
1,000
-
1,000
At 31 December 2022
1,000
123,254
124,254
9
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
8,310
216,908
Other debtors
1,149,054
1,173,461
1,157,364
1,390,369
SEISMIC IMAGE PROCESSING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
10
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts
273,514
215,162
Trade creditors
149,008
617,432
Corporation tax
95,758
3,029
Other taxation and social security
46,167
221,145
Other creditors
138,653
196,069
703,100
1,252,837
11
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans
261,954
615,138
Other creditors
24,632
34,834
286,586
649,972
The company's bank liabilities are secured by:
(i) a debenture over all company property;
(ii) legal charges over the properties at 1 Napier Gardens, Guildford, Surrey; 11 Tranby Park Meadows, Jenny Brough Lane, Hessle, Hull; 1 Wynmore Drive, Leeds; and 8 Linton Road, Leeds;
(iii) a standard security over the properties at 9 Westbank, Fonthill Road, Fonthill Estate, Aberdeen; and 140 Dee Village, Milburn Street, Aberdeen.
12
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
16,800
13,530
13
Related party transactions
SEISMIC IMAGE PROCESSING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
13
Related party transactions
(Continued)
- 11 -
Included within other debtors is a loan of £133,550 (2022 - £169,681) due from J Deo, director. The loan is unsecured, interest free and repayable on demand.
Also included within other debtors is a loan of £626,282 (2022 - £633,626) due from R Deo, wife of J Deo and shareholder of Seismic Image Processing Limited. The loan is unsecured, interest free and has no fixed repayment terms.
Included within other creditors is a loan of £110,016 (2022 - £110,016) due to J Deo, son of J Deo (director). There is also a loan included of £1,700 (2022 - £1,700) due to Amoex Limited, a company in which J Deo is a director and shareholder. These loans are unsecured, interest free and repayable on demand.
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