Company registration number 05563374 (England and Wales)
PHRASED DIFFERENTLY MUSIC LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
PHRASED DIFFERENTLY MUSIC LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 6
PHRASED DIFFERENTLY MUSIC LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
3
9,708
8,786
Current assets
Debtors
4
879,327
685,918
Cash at bank and in hand
634,192
705,660
1,513,519
1,391,578
Creditors: amounts falling due within one year
5
(461,124)
(502,303)
Net current assets
1,052,395
889,275
Total assets less current liabilities
1,062,103
898,061
Creditors: amounts falling due after more than one year
6
(2,241,885)
(1,707,197)
Provisions for liabilities
(2,290)
(1,669)
Net liabilities
(1,182,072)
(810,805)
Capital and reserves
Called up share capital
1,868
1,868
Share premium account
1,198,702
1,198,702
Profit and loss reserves
(2,382,642)
(2,011,375)
Total equity
(1,182,072)
(810,805)
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 December 2023 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.
PHRASED DIFFERENTLY MUSIC LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2023
31 December 2023
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 31 October 2024 and are signed on its behalf by:
Mr H Bharadia
Mr E Atis
Director
Director
Mr BR Budde
Director
Company registration number 05563374 (England and Wales)
PHRASED DIFFERENTLY MUSIC LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
1
Accounting policies
Company information
Phrased Differently Music Limited is a private company limited by shares incorporated in England and Wales. The registered office is CC Young & Co Limited, 3rd Floor, The Bloomsbury Building, 10 Bloomsbury Way, Holborn, United Kingdom, WC1A 2SL.
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. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover represents amounts receivable for services net of VAT.
Credit is taken for royalty income that has been received from or declared by licensees and other parties.
United Kingdom royalty income is credited to the profit and loss account in the period to which it relates, or if it cannot be reliably estimated, on a receipt basis. Overseas royalty income, which is all collected on behalf of the company by other undertakings, is credited to the profit and loss account in the period overseas sales are reported to the company. Royalties payable are charged against the relevant income of the same period.
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:
Fixtures, fittings & equipment
25% reducing balance
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.
1.4
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).
An impairment loss is recognised immediately in profit or loss.
1.5
Financial instruments
The company only has financial instruments which are classified as basic financial instruments.
Short-term debtors and creditors are measured at the settlement value. Any losses from impairment are recognised in profit and loss.
PHRASED DIFFERENTLY MUSIC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
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
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.
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.
1.8
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.
1.9
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
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
5
3
PHRASED DIFFERENTLY MUSIC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
3
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 January 2023
30,599
Additions
3,650
At 31 December 2023
34,249
Depreciation and impairment
At 1 January 2023
21,813
Depreciation charged in the year
2,728
At 31 December 2023
24,541
Carrying amount
At 31 December 2023
9,708
At 31 December 2022
8,786
4
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
28,100
26,194
Other debtors
851,227
659,724
879,327
685,918
5
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
38,941
18,233
Other creditors
422,183
484,070
461,124
502,303
6
Creditors: amounts falling due after more than one year
2023
2022
£
£
Other creditors
2,241,885
1,707,197
PHRASED DIFFERENTLY MUSIC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
7
Related party transactions
During the period, Budde Music UK Limited, a connected company, provided a loan to Phrased Differently Music Limited totalling £806,000 and were repaid £328,398. Interest of £57,086 was charged on the loan. At the Balance Sheet date the company owed Budde Music UK Limited £2,241,885 (2022: £1,707,197)
8
Directors' transactions
During the period, Phrased Differently Music Limited paid £98,283 in salary, bonus and royalties to the Director, Hiten Bharadia and received a refund of £277 for an invoice paid on behalf of the company. During the year, the director was owed £129,639 in salary, bonus and royalties. At the Balance Sheet date the company owed the director £157,285 (2022: £125,652).
No interest has been charged on this balance and is repayable on demand.