Company registration number 09841565 (England and Wales)
DIGITAL RED SQUARE LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 28 OCTOBER 2023
PAGES FOR FILING WITH REGISTRAR
DIGITAL RED SQUARE LIMITED
COMPANY INFORMATION
Director
Mr H Singh
Company number
09841565
Registered office
14b Suite 1
Cookley Wharf Industrial Estate
Leys Road
Brockmoor
Brierley Hill
DY5 3UP
Accountants
Ormerod Rutter Limited
The Oakley
Kidderminster Road
Droitwich
Worcestershire
WR9 9AY
Bankers
Barclays Bank Plc
351 - 359 Soho Road
Birmingham
B21 9SE
DIGITAL RED SQUARE LIMITED
CONTENTS
Page
Accountants' report
1
Balance sheet
2
Notes to the financial statements
3 - 7
DIGITAL RED SQUARE LIMITED
ACCOUNTANTS' REPORT TO THE DIRECTOR ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF DIGITAL RED SQUARE LIMITED FOR THE PERIOD ENDED 28 OCTOBER 2023
- 1 -
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Digital Red Square Limited for the period ended 28 October 2023 which comprise, the balance sheet and the related notes from the company’s accounting records and from information and explanations you have given us.
As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at https://www.icaew.com/regulation.
This report is made solely to the board of directors of Digital Red Square Limited, as a body, in accordance with our terms of engagement. Our work has been undertaken solely to prepare for your approval the financial statements of Digital Red Square Limited and state those matters that we have agreed to state to the board of directors of Digital Red Square Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Digital Red Square Limited and its board of directors as a body, for our work or for this report.
It is your duty to ensure that Digital Red Square Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Digital Red Square Limited. You consider that Digital Red Square Limited is exempt from the statutory audit requirement for the period.
We have not been instructed to carry out an audit or a review of the financial statements of Digital Red Square Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.
Ormerod Rutter Limited
21 October 2024
Chartered Accountants
The Oakley
Kidderminster Road
Droitwich
Worcestershire
WR9 9AY
DIGITAL RED SQUARE LIMITED
BALANCE SHEET
AS AT 28 OCTOBER 2023
28 October 2023
- 2 -
28 October 2023
29 October 2022
Notes
£
£
£
£
Fixed assets
Tangible assets
3
66,144
82,680
Current assets
Stocks
168,291
144,684
Debtors
4
342,911
87,953
Cash at bank and in hand
74,317
100,405
585,519
333,042
Creditors: amounts falling due within one year
5
(597,154)
(329,778)
Net current (liabilities)/assets
(11,635)
3,264
Total assets less current liabilities
54,509
85,944
Creditors: amounts falling due after more than one year
6
(53,776)
(81,081)
Net assets
733
4,863
Capital and reserves
Called up share capital
8
100
100
Profit and loss reserves
633
4,763
Total equity
733
4,863
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 period ended 28 October 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 period 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.
The financial statements were approved and signed by the director and authorised for issue on 21 October 2024
Mr H Singh
Director
Company registration number 09841565 (England and Wales)
DIGITAL RED SQUARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 28 OCTOBER 2023
- 3 -
1
Accounting policies
Company information
Digital Red Square Limited is a private company limited by shares incorporated in England and Wales. The registered office is 14b Suite 1, Cookley Wharf Industrial Estate, Leys Road, Brockmoor, Brierley Hill, England, DY5 3UP.
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 have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods provided in the normal course of business, and is shown net of VAT.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.3
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:
Computer equipment
33% on cost
Motor vehicles
20% on reducing balance
1.4
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.5
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
DIGITAL RED SQUARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 OCTOBER 2023
1
Accounting policies
(Continued)
- 4 -
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.
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.
1.6
Employee benefits
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
1.7
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.8
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
DIGITAL RED SQUARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 OCTOBER 2023
- 5 -
2
Employees
The average monthly number of persons (including directors) employed by the company during the period was:
2023
2022
Number
Number
Total
1
1
3
Tangible fixed assets
Computer equipment
Motor vehicles
Total
£
£
£
Cost
At 30 October 2022 and 28 October 2023
500
89,185
89,685
Depreciation and impairment
At 30 October 2022
500
6,505
7,005
Depreciation charged in the period
16,536
16,536
At 28 October 2023
500
23,041
23,541
Carrying amount
At 28 October 2023
66,144
66,144
At 29 October 2022
82,680
82,680
4
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
86,928
86,928
Amounts owed by group undertakings
241,500
Other debtors
10,000
Deferred tax asset
4,483
1,025
342,911
87,953
DIGITAL RED SQUARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 OCTOBER 2023
- 6 -
5
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts
14,524
8,818
Trade creditors
1,340
Taxation and social security
438,458
181,362
Other creditors
144,172
138,258
597,154
329,778
6
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
31,771
38,021
Other creditors
22,005
43,060
53,776
81,081
7
Secured debts
The following secured debts are included within creditors:
2023
2022
£
£
Hire purchase contracts
44,368
65,423
Bank overdrafts
8,274
2,568
Bank loans
38,021
44,271
90,663
112,262
Hire purchase contracts are secured against the assets to which they relate.
Bank loans are secured by way of a government-backed guarantee.
8
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
100
100
100
100
DIGITAL RED SQUARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 OCTOBER 2023
- 7 -
9
Control
Ultimate parent company
The ultimate parent company is HSB Investments and Holdings Limited, a company registered in England and Wales.
Ultimate controlling party
The ultimate controlling party is Mr H Singh, by virtue of his controlling interest in the ultimate parent company.