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Registered number: 07769322
 





 
 
GAIA POWER SYSTEMS LTD

DIRECTORS' REPORT AND FINANCIAL STATEMENTS
 
 
FOR THE YEAR ENDED 31 DECEMBER 2023

 
GAIA POWER SYSTEMS LTD
 

COMPANY INFORMATION


Directors
P. E. Dias 
B. D. Rhys Jones 
T. J. Rosser 




Registered number
07769322



Registered office
UK House, 5th Floor
164-182 Oxford Street

London

W1D 1NN




Independent auditors
Wilder Coe Ltd
Chartered Accountants and Statutory Auditors

1st Floor Sackville House

143-149 Fenchurch Street

London

EC3M 6BL





 
GAIA POWER SYSTEMS LTD
 

CONTENTS



Page
Directors' Report
 
1 - 2
Independent Auditors' Report
 
3 - 6
Statement of Comprehensive Income
 
7
Balance Sheet
 
8
Statement of Changes in Equity
 
9
Notes to the Financial Statements
 
10 - 17


 
GAIA POWER SYSTEMS LTD
 

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their report and the audited financial statements of Gaia Power Systems Ltd ("the company") for the year ended 31 December 2023. This report has been prepared in accordance with the special provisions to small companies within Part 15 of the Companies Act, section 415A.

Directors' responsibilities statement

The directors are responsible for preparing 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.

Principal activity

The principal activities of the company during the year continued to be the ownership, maintenance and operation of solar panel systems to benefit from the continued renewable energy and associated payments of the Feed in Tariff.

Business review

The company will seek to purchase further rights for Feed in Tariff payments and maintain payments from existing solar panel systems.

Results and dividends

The profit for the year, after taxation, amounted to £70,660 (2022: £86,883). The directors do not recommend the payment of a dividend. 

Page 1

 
GAIA POWER SYSTEMS LTD
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Going concern

The financial statements have been prepared on the going concern basis. As at 31 December 2023, the company had net current assets of £727,856 (2022: £541,592) and net assets of £1,767,714 (2022: £1,697,054). The directors have assessed the company's ability to meets its liabilities as they fall due, including a review of the effect of the ongoing Ukraine-Russia conflict, the fluctuations in commodity prices and foreign exchange rates, and the potential to adversely impact global economies, which has driven an increase in volatlity across markets. The directors have determined that based on recent trading o fthe company and revised projections, the above events are not expected to have a detrimental impact on the company's business. 
Further, the company's ultimate joint shareholders, Renewable Energy Income Partnership III B Holdings Limited and REIP IV Holdings Limited, will continue to support the operations of the company for a period of 12 months from the date on which the financial statements are approved. The directors will continue to monitor the situation and take any necessary actions to minimise the possible impacts of these events. 
 

Directors

The directors who served during the year were:

P. E. Dias 
B. D. Rhys Jones 
T. J. Rosser 
L. G. Halstead (resigned 29 August 2023)

Statement of 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.

Auditors

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

Small companies note

In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.

The directors have also taken advantage of the small company exemptions provided by section 414B of the Companies Act 2006 and have not prepared a strategic report.
 
This report was approved by the board on 27 September 2024 and signed on its behalf.
 





T. J. Rosser
Director

Page 2

 
GAIA POWER SYSTEMS LTD
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GAIA POWER SYSTEMS LTD
 

Opinion


We have audited the financial statements of Gaia Power Systems Ltd (the 'Company') for the year ended 31 December 2023, which comprise the Statement of Comprehensive Income, the Balance Sheet, 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 profit 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.


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.


Page 3

 
GAIA POWER SYSTEMS LTD
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GAIA POWER SYSTEMS LTD (CONTINUED)


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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Directors' Report has 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 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; or
the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Directors' Report and from the requirement to prepare a Strategic Report.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 1, 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 4

 
GAIA POWER SYSTEMS LTD
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GAIA POWER SYSTEMS LTD (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:

Discussions with and enquiries of management and those charged with governance were held with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity.
The following laws and regulations were identified as being of significance to the entity:
 
Those laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards, company law, tax and pensions legislation and distributable profits legislation; and
Those laws and regulations for which non-compliance may be fundamental to the operating aspects of the business and therefore may have a material effect on the financial statements.

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: enquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; review of board minutes; testing the appropriateness of journal entries; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.
Where irregularities have been found and treatments have differed from what we have expected additional procedures have been conducted to ratify the discrepancies. If the irregularity is financial in nature then samples have been extended, and the irregular items extrapolated to ensure that no material misstatement has occurred. These irregularities are also communicated to management so that they can rectify the discrepancies or provide an explanation for the difference. Where the irregularity is a difference in treatment to what we had expected this has been communicated to management and additional explanation has been added ensure adequate disclosure where necessary.
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).



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 5

 
GAIA POWER SYSTEMS LTD
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GAIA POWER SYSTEMS LTD (CONTINUED)


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.





Caryl King ACA BSc (Senior Statutory Auditor)
for and on behalf of
  

 
Wilder Coe Ltd
Chartered Accountants and Statutory Auditors
1st Floor Sackville House
143-149 Fenchurch Street
London
EC3M 6BL
 

27 September 2024
Page 6

 
GAIA POWER SYSTEMS LTD
 

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
  
240,578
227,421

Cost of sales
  
(125,976)
(122,841)

Gross profit
  
114,602
104,580

Administrative expenses
  
(20,264)
(11,363)

Operating profit
 6 
94,338
93,217

Tax on profit
 8 
(23,678)
(6,334)

Profit for the financial year
  
70,660
86,883

There were no recognised gains and losses for 2023 or 2022 other than those included in the Statement of Comprehensive Income.

There was no other comprehensive income for 2023 (2022:£Nil).

The notes on pages 10 to 17 form part of these financial statements.

Page 7

 
GAIA POWER SYSTEMS LTD
REGISTERED NUMBER: 07769322

BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 9 
1,069,870
1,161,796

Current assets
  

Debtors
 10 
661,712
541,592

Cash at bank and in hand
  
80,454
-

  
742,166
541,592

Creditors: amounts falling due within one year
 11 
(14,310)
-

Net current assets
  
 
 
727,856
 
 
541,592

Total assets less current liabilities
  
1,797,726
1,703,388

Provisions for liabilities
  

Deferred tax
 12 
(30,012)
(6,334)

Net assets
  
 
 
1,767,714
 
 
1,697,054


Capital and reserves
  

Allotted, called up and fully paid share capital
 13 
189,001
189,001

Share premium account
  
1,557,797
1,557,797

Retained earnings
  
20,916
(49,744)

Total shareholders' funds
  
1,767,714
1,697,054


The financial statements have been prepared in accordance with the provisions applicable to small companies within Part 15 of the Companies Act 2006 and in accordance with the provisions of Financial Reporting Standard 102, "The Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland" as amended by Section 1A "Small Entities".

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 27 September 2024.




T. J. Rosser
Director

The notes on pages 10 to 17 form part of these financial statements.

Page 8

 
GAIA POWER SYSTEMS LTD
 

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


Called up share capital
Share premium account
Retained earnings
Total equity

£
£
£
£


At 1 January 2022
189,001
1,557,797
(136,627)
1,610,171



Profit for the financial year
-
-
86,883
86,883



As at 31 December 2022 and 1 January 2023
189,001
1,557,797
(49,744)
1,697,054



Profit for the financial year
-
-
70,660
70,660


At 31 December 2023
189,001
1,557,797
20,916
1,767,714


The notes on pages 10 to 17 form part of these financial statements.

Page 9

 
GAIA POWER SYSTEMS LTD
 

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

1.


General information

The principal activities of the company during the year continued to be the ownership, maintenance and operation of solar panel systems to benefit from the continued renewable energy and associated payments of the Feed in Tariff.
The company is a private company limited by shares and is incorporated and registered in the United Kingdom. The address of its registered office is UK House, 5th Floor, 164-182 Oxford Street, London, United Kingdom, W1D 1NN.


2.


Statement of compliance

The financial statements of Gaia Power Systems Ltd have been prepared in compliance with United Kingdom Accounting Standards, including Financial Reporting Standard 102, "The Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland" ("FRS 102") and the Companies Act 2006. 

3.Accounting policies

 
3.1

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 4).

Exemptions for qualifying entities under FRS 102
FRS 102 allows a qualifying entity certain disclosure exemptions, subject to certain conditions, which have been complied with, including notification of, and no objection to, the use of exemptions by the company's shareholders.
The company has taken advantage of the following exemptions:
 
from preparing a statement of cash flows, required under Section 7 of FRS 102 and para 3.17(d), on the basis that it is a small company;
from disclosing the company's key management personnel compensation as required by FRS 102 para 33.7; and
from disclosing related party transactions that are wholly owned within the same group.

Page 10

 
GAIA POWER SYSTEMS LTD
 

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

3.Accounting policies (continued)

  
3.2

Going concern

The financial statements have been prepared on the going concern basis. As at 31 December 2023, the company had net current assets of £727,856 (2022: £541,592) and net assets of £1,767,714 (2022: £1,697,054). The directors have assessed the company's ability to meets its liabilities as they fall due, including a review of the effect of the ongoing Ukraine-Russia conflict, the fluctuations in commodity prices and foreign exchange rates, and the potential to adversely impact global economies, which has driven an increase in volatlity across markets. The directors have determined that based on recent trading o fthe company and revised projections, the above events are not expected to have a detrimental impact on the company's business. 
Further, the company's ultimate joint shareholders, Renewable Energy Income Partnership III B Holdings Limited and REIP IV Holdings Limited, will continue to support the operations of the company for a period of 12 months from the date on which the financial statements are approved. The directors will continue to monitor the situation and take any necessary actions to minimise the possible impacts of these events. 

 
3.3

Turnover

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured based on electricity generation in the period and applicable tariffs. Revenue is recognised as and when confirmed by the renewable enerty FiT Licensee on a quarterly basis and includes an accrual for the revenue due for the period from the last agreed quarter end to the end of the accounting period. The Feed-in Tariffs (FIT) scheme was designed to promote the uptake of renewable and low-carbon electricity generation from installations with a capacity of up to 5MW.

 
3.4

Finance costs

Finance costs are charged to the Statement of Comprehensive Income 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 instrument.

  
3.5

Tangible fixed assets

Tangible assets represent the installation cost and right acquired to receive feed in tariffs from solar installations and are initially recognised at cost. After recognition, tangible assets are measured at cost less any accumulated depreciation and any accumulated impairment losses.
At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair values less cost to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
All tangible assets are considered to have a finite useful life based on the anticipated income arising from such rights being payable until 2037. Depreciation has been provided at 4.9% of cost to write off the assets over their useful life on a straight-line basis.

 
3.6

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.

Page 11

 
GAIA POWER SYSTEMS LTD
 

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

3.Accounting policies (continued)

 
3.7

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income 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.

Page 12

 
GAIA POWER SYSTEMS LTD
 

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

3.Accounting policies (continued)

  
3.8

Financial instruments

The company has chosen to adopt Section 11 and 12 of FRS 102 in respect of financial instruments.
Financial assets
Basic financial assets, including trade and other receivables and cash and bank balances are initially recognised at transaction price, 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.
Such assets are subsequently carried at amortised cost using the effective interest method.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.
Financial liabilities
Basic financial liabilities, including trade and other payables and loans from shareholder companies are initially recognised at transaction price, 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.
Debt instruments are subsequently carried at amortised cost using the effective interest rate method.
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.
Offsetting
Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an 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.


4.


Critical accounting judgements and estimation uncertainty

In the application of the company's accounting policies, management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily ascertainable from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual outcomes may differ from these estimates. The estimates and underlying assumptions are reviewed on a continuing basis, revisions to accounting estimates are recognised in the period in which the estimates are revised.

Page 13

 
GAIA POWER SYSTEMS LTD
 

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

5.


Turnover

The whole of the turnover is attributable to generation and export tariffs receivable on solar panel installations exclusive of value added tax. Turnover arose from installations with the United Kingdom.


6.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Fees payable for the audit
6,668
2,070

Depreciation of owned fixed assets
91,927
91,913

98,595
93,983


7.


Employees




The company paid no remuneration or wages to its directors and had no other employees during the year (2022: £Nil). The directors receive no remuneration or wages in respect of their directorship of the company (2022: £Nil).

Page 14

 
GAIA POWER SYSTEMS LTD
 

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

8.


Taxation


2023
2022
£
£



Deferred tax


Origination and reversal of timing differences
23,678
6,334


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - lower than) the standard rate of corporation tax in the UK of 25% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
94,338
93,217


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2022 - 19%)
23,585
17,711

Effects of:


Organisational and reversal of timing differences
23,678
6,334

Depreciation for year in excess of capital allowances
16,280
12,873

Utilisation of tax losses
(38,557)
(30,584)

Adjustment for change in tax rate
(1,308)
-

Total tax charge for the year
23,678
6,334


Factors that may affect future tax charges

The Finance Act 2021 enacted on 10 June 2021 increased the main rate of United Kingdom corporation tax from 19% to 25%, effective from 1 April 2023. Deferred taxes on the balance sheet have been measured at 25% (2022: 25%) which represents the future corporation tax rate that was enacted at the Balance Sheet date.
As at 31 December 2023, the company had losses of £594,023 (
2022: £757,952) available to offset against future trading profits.

Page 15

 
GAIA POWER SYSTEMS LTD
 

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

9.


Tangible fixed assets





Plant and machinery

£



Cost 


At 1 January 2023
1,806,300



At 31 December 2023

1,806,300



Depreciation


At 1 January 2023
644,504


Charge for the year on owned assets
91,926



At 31 December 2023

736,430



Net book value



At 31 December 2023
1,069,870



At 31 December 2022
1,161,796


10.


Debtors

2023
2022
£
£

Amounts falling due within one year

Amounts owed by group undertakings
632,030
541,592

Prepayments and accrued income
29,682
-

661,712
541,592



11.


Creditors: Amounts falling due within one year

2023
2022
£
£

Trade creditors
1,313
-

Other taxation and social security
1,686
-

Accruals and deferred income
11,311
-

14,310
-


Page 16

 
GAIA POWER SYSTEMS LTD
 

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

12.


Deferred taxation




2023


£






At beginning of year
(6,334)


Charged to profit or loss
(23,678)



At end of year
(30,012)

The provision for deferred taxation is made up as follows:

2023
2022
£
£


Origination and timing differences
(30,012)
(6,334)

(30,012)
(6,334)


13.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



1,890,010 (2022 - 1,890,010) Ordinary shares shares of £0.10 each
189,001
189,001



14.


Related party transactions

The company has taken advantage of the exemption under paragraph 33.1A from the provisions of FRS 102, on the grounds that at 31 December 2023 it was a wholly owned subsidiary. There are no other related party transactions.


15.


Parent company

The immediate parent company is Sunlight Technology Limited, a company registered in England and Wales, which is 100% owned by Sunstone Bidco Limited.
Ultimately, the company is jointly owned by Renewable Energy Income Partnership III B Holdings Limited and REIP IV Holdings Limited, with both companies incorporated in the UK.
In the directors' opinion there is no ultimate controlling party.


Page 17