Company registration number SC299782 (Scotland)
E-NET HOLDINGS LTD.
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
PAGES FOR FILING WITH REGISTRAR
E-NET HOLDINGS LTD.
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 6
E-NET HOLDINGS LTD.
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
3
102
102
Current assets
Debtors falling due after more than one year
4
7,633,681
9,606,096
Debtors falling due within one year
4
3,686,941
3,077,446
Cash at bank and in hand
47,437
194,838
11,368,059
12,878,380
Creditors: amounts falling due within one year
5
(5,009,216)
(6,262,789)
Net current assets
6,358,843
6,615,591
Total assets less current liabilities
6,358,945
6,615,693
Creditors: amounts falling due after more than one year
6
(5,976,289)
(5,937,000)
Net assets
382,656
678,693
Capital and reserves
Called up share capital
105
105
Profit and loss reserves
382,551
678,588
Total equity
382,656
678,693
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 31 March 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their 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.
E-NET HOLDINGS LTD.
BALANCE SHEET (CONTINUED)
AS AT
31 MARCH 2024
31 March 2024
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 23 September 2024 and are signed on its behalf by:
S Rasul
Director
Company Registration No. SC299782
E-NET HOLDINGS LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
1
Accounting policies
Company information
E-Net Holdings Ltd. is a private company limited by shares incorporated in Scotland. The registered office is 4c New Mart Road, Edinburgh, EH14 1RL.
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 are set out below.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
1.3
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.
1.4
Cash and cash equivalents
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.
1.5
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.
E-NET HOLDINGS LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 4 -
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.
1.6
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.
1.7
Interest receivable and similar income
Interest income is recognised in the Statement of Income and Retained Earnings using the effective interest method.
1.8
Interest payable and similar expenses
Interest payable and similar expenses are charged to the Statement of Income and Retained Earnings over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital investment.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
2
2
E-NET HOLDINGS LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 5 -
3
Fixed asset investments
2024
2023
£
£
Shares in group undertakings and participating interests
102
102
4
Debtors
2024
2023
Amounts falling due within one year:
£
£
Amounts owed by group undertakings
3,686,941
3,077,446
2024
2023
Amounts falling due after more than one year:
£
£
Amounts owed by group undertakings
7,478,156
9,457,618
Derivative financial instruments
155,525
148,478
7,633,681
9,606,096
Total debtors
11,320,622
12,683,542
Amounts owed by group undertakings due after more than one year are unsecured. A market rate of interest is charged and included within interest receivable and similar income.
The derivative financial instruments represent interest rate swaps and caps in place over the company's bank borrowings. These have been valued by the Company's bankers. As part of the loan refinancing, new instruments were entered into in the current year. The write off of the old instruments is included within administrative expenses whilst the movement in new derivative financial instruments is included within interest payable and similar expenses for the period.
Amounts owed by group undertakings due within one year are unsecured, interest-free and repayable on demand.
5
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans
4,885,856
6,087,000
Trade creditors
32,029
Other creditors
123,360
143,760
5,009,216
6,262,789
E-NET HOLDINGS LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 6 -
6
Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank loans
5,976,289
5,937,000
Arrangement fees of £105,000 (2023 - £105,000) have been aged corresponding to the life of the loan.
The bank loans comprise a £6,000,000 term loan and £9,700,000 revolving credit facility for the purpose of the company's subsidiaries purchasing residential and commercial property for rental income and capital appreciation. The interest rate on the term loan and revolving credit facility are an agreed margin over the daily SONIA rate. The revolving credit facility is presented within due in less than one year as it is due for repayment at the end of each interest period, which is less than one year from the balance sheet date, and a request must be made to rollover the facility at the end of each interest period. The maturity of the term loan and revolving credit facility is 31 October 2025.
The company also has a combination of interest rate swaps and caps to mitigate the effect of any increase in SONIA on its interest costs.
The bank loans are secured by a bond and floating charge over the whole assets of the company, SRA Ventures Ltd., Shastra Property & Development Ltd. and SRAV Property Limited, a first and only standard security over each of the properties in the subsidiary companies, a composite guarantee by SRA Ventures Ltd., Shastra Property & Development Ltd. and SRAV Property Limited and the assignations of rent and a subordination agreement.
7
Related party transactions
The company has taken advantage of the exemption available under FRS 102 Section 1A from disclosing transactions with its subsidiary undertakings on the grounds that they are 100% owned.
During the year, the company charged insurance to Estock Limited of £4,260 (2023 - £3,830), a company controlled by S Rasul. As at 31 March 2024 and 2023, there were no balances outstanding with Estock Limited.
During the year, S Rasul recharged expenses of £nil (2023 - £9,000) to the company. At 31 March 2024, there was an amount of £nil (2023 - £9,000) owing to S Rasul.
During the year, the company charged insurance and management charges to Strategic Commercial Investments Limited totaling £24,578 (2023 - £16,621), a company controlled by S Rasul. As at 31 March 2024 and 2023, there were no balances outstanding with Strategic Commercial Investments Limited.
During the year, the company charged management charges to MSZ Property Ltd of £7,310 (2023 - £4,446), a company controlled by S Rasul. As at 31 March 2024 and 2023, there were no balances outstanding with MSZ Property Ltd.