Company registration number SC542389 (Scotland)
SRAV PROPERTY LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
PAGES FOR FILING WITH REGISTRAR
SRAV PROPERTY LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 7
SRAV PROPERTY LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investment property
3
2,025,000
1,885,000
Current assets
Debtors
4
10,641
7,969
Cash at bank and in hand
1,508
27,836
12,149
35,805
Creditors: amounts falling due within one year
5
(246,307)
(132,720)
Net current liabilities
(234,158)
(96,915)
Total assets less current liabilities
1,790,842
1,788,085
Creditors: amounts falling due after more than one year
6
(1,105,089)
(1,145,665)
Provisions for liabilities
(25,573)
(66,386)
Net assets
660,180
576,034
Capital and reserves
Called up share capital
1
1
Fair value reserve
39,987
162,427
Distributable profit and loss reserves
620,192
413,606
Total equity
660,180
576,034
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.
SRAV PROPERTY LIMITED
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. SC542389
SRAV PROPERTY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
1
Accounting policies
Company information
SRAV Property Limited 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 adopted are set out below.
1.2
Going concern
The financial statements are prepared on a going concern basis. In making their going concern assessment, the directors have prepared budgets and cash flow forecasts covering a period of more than 12 months from the date the financial statements are signed. The company’s parent undertaking, E-net Holdings Ltd., has a strong relationship with Bank of Scotland, who provide the finance for the group’s investment activities. E-net Holdings Ltd. has pledged to provide ongoing financial support to the company as required. In light of this, the directors consider that the company has sufficient resources to continue to trade and meet its liabilities as they fall due for a period of at least twelve months from the date the financial statements are signed.
1.3
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.
Revenue comprises rents receivable and is recognised in the period to which it relates.
1.4
Investment property
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. Changes in fair value are recognised in profit or loss.
1.5
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.
SRAV PROPERTY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 4 -
1.6
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.
1.7
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.
1.8
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.
SRAV PROPERTY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 5 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and 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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
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
3
Investment property
2024
£
Fair value
At 1 April 2023
1,885,000
Additions
729,639
Disposals
(600,000)
Revaluations
10,361
At 31 March 2024
2,025,000
The company’s investment property is carried in the Balance Sheet at a Directors' valuation of £2,025,000. A professional valuation was carried out by an independent chartered surveyor, Lambert Smith Hampton, in March 2022. In reaching their valuation the directors have considered published trends in the Scottish commercial property market since the previous external valuation was obtained and the condition of each property.
SRAV PROPERTY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 6 -
4
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
3,374
1,863
Other debtors
7,267
6,106
10,641
7,969
5
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
464
12,736
Amounts owed to group undertakings
186,190
78,919
Corporation tax
18,355
11,801
Other creditors
41,298
29,264
246,307
132,720
Amounts owed to group undertakings due within one year are unsecured, interest-free and repayable on demand.
SRAV PROPERTY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 7 -
6
Creditors: amounts falling due after more than one year
2024
2023
£
£
Amounts owed to group undertakings
1,105,089
1,145,665
Amounts owed to group undertakings due after more than one year are unsecured. A market rate of interest is charged and included within interest payable and similar expenses.
7
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Investment property
25,573
66,386
2024
Movements in the year:
£
Liability at 1 April 2023
66,386
Credit to profit or loss
(40,813)
Liability at 31 March 2024
25,573
8
Financial commitments, guarantees and contingent liabilities
The Bank of Scotland lending in the parent company is secured by a corporate cross guarantee with the parent company, E-net Holdings Ltd. and fellow subsidiaries, SRA Ventures Ltd. and Shastra Property & Development Ltd. The bank also hold a bond and floating charge over the whole assets of the company and standard security over the investment property. The bank loans comprise a £6,000,000 term loan and £9,700,000 revolving credit facility with a balance of £10,862,145 (2023 - £12,024,000) drawn down at year end.
9
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, MSZ Property Limited loaned £nil (2023- £1,505) to the company and received payment from the company of £nil (2023- £1,505). MSZ Property Limited is related by common directorship.
10
Parent company
SRAV Property Limited is a wholly owned subsidiary of E-net Holdings Ltd., a company registered in Scotland and controlled by S Rasul. The registered office address for E-net Holdings Ltd. is 4c New Mart Road, Edinburgh, Scotland, EH14 1RL.