Eastland Engineering Limited
Unaudited Financial Statements
For the year ended 31 December 2023
Pages for Filing with Registrar
Company Registration No. 04247070 (England and Wales)
Eastland Engineering Limited
Company Information
Director
D Bojic
Company number
04247070
Registered office
6th Floor
9 Appold Street
London
EC2A 2AP
Accountants
Moore Kingston Smith LLP
6th Floor
9 Appold Street
London
EC2A 2AP
Eastland Engineering Limited
Contents
Page
Balance sheet
1
Notes to the financial statements
2 - 7
Eastland Engineering Limited
Balance Sheet
As at 31 December 2023
Page 1
2023
2022
Notes
$
$
$
$
Fixed assets
Tangible assets
3
3,403
4,538
Current assets
Debtors
5
7,724,266
3,797,651
Investments
6
1,220,000
523,806
Cash at bank and in hand
248,767
5,533,653
9,193,033
9,855,110
Creditors: amounts falling due within one year
7
(5,683,103)
(6,381,175)
Net current assets
3,509,930
3,473,935
Net assets
3,513,333
3,478,473
Capital and reserves
Called up share capital
8
100,000
100,000
Profit and loss reserves
3,413,333
3,378,473
Total equity
3,513,333
3,478,473
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 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 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 member has 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.
The financial statements were approved and signed by the director and authorised for issue on 19 February 2025
D Bojic
Director
Company Registration No. 04247070
Eastland Engineering Limited
Notes to the Financial Statements
For the year ended 31 December 2023
Page 2
1
Accounting policies
Company information
Eastland Engineering Limited is a private company limited by shares incorporated in England and Wales. The registered office is 6th Floor, 9 Appold Street, London, EC2A 2AP.
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 financial statements are prepared in US Dollars, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest dollars.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover represents amounts receivable for engineering and support services provided during the year, and is shown net of VAT.
1.4
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
1.5
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% straight line
Computer equipment
25% on cost
Motor vehicles
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.
Eastland Engineering Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 3
1.6
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). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.7
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.
1.8
Financial instruments
The company only has basic financial instruments measured at amortised cost, with no financial instruments classified as other or basic instruments measured at fair value.
1.9
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.
1.10
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.
Eastland Engineering Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 4
1.11
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.
1.12
Leases
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.
1.13
Foreign exchange
The financial statements are presented in US Dollars (USD), as this is the main operational currency of the entity. Monetary assets and liabilities denominated in other currencies, such as Sterling and Euro, are translated into USD at the rates of exchange ruling at the balance sheet date. Transactions in currencies other than USD are recorded at the average rate, in respect of month of the transaction. All differences are taken to profit and loss account.
2
Employees
The average monthly number of persons (excluding directors) employed by the company during the year was 1 (2022 - 1).
During the year, the average number of contractors engaged each month was 50 (2022 - 72).
3
Tangible fixed assets
Plant and machinery etc
$
Cost
At 1 January 2023 and 31 December 2023
60,867
Depreciation and impairment
At 1 January 2023
56,329
Depreciation charged in the year
1,135
At 31 December 2023
57,464
Carrying amount
At 31 December 2023
3,403
At 31 December 2022
4,538
Eastland Engineering Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 5
4
Financial instruments
2023
2022
$
$
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
1,220,000
523,806
5
Debtors
2023
2022
Amounts falling due within one year:
$
$
Trade debtors
1,843,368
1,464,458
Amounts owed by group undertakings
5,845,152
2,234,447
Other debtors
35,746
98,746
7,724,266
3,797,651
6
Current asset investments
2023
2022
$
$
Other investments
1,220,000
523,806
7
Creditors: amounts falling due within one year
2023
2022
$
$
Trade creditors
4,446,568
4,717,249
Corporation tax
12,582
7,516
Other taxation and social security
6,549
6,101
Other creditors
14,617
7,474
Accruals and deferred income
1,202,787
1,642,835
5,683,103
6,381,175
8
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
$
$
Issued and fully paid
Ordinary shares of £1 each
50,000
50,000
100,000
100,000
Eastland Engineering Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 6
9
Related party transactions
PML Lucas Enterprises LLP and Branch (hereafter PML) and Eastland Engineering Limited are all controlled by the same individual.
No dividends have ever been paid by Eastland Engineering Limited any other related company conducting business with Eastland Engineering to its shareholders with the exception of PM Lucas Enterprises Limited Cyprus where the last dividend was booked in 2014.
Eastland Engineering has followed all International Double Taxation and Transfer Pricing Regulations and has conducted its business in a transparent way according to international and the Law of the United Kingdom. All documentation have been provided by the HM Revenue & Customs for the Certificate of UK Residence in proper order in full compliance of double taxation treaties in due course. The HMRC Revenue & Customs issued the Certificate of UK Residence in accordance with Article of the Convention between the United Kingdom and Kazakhstan.
During the year the company invoiced PML $2,256,245 (2022: $2,776,827) for services provided. PML entities are registered in Kazakhstan and Cyprus. At the balance sheet date the company is owed $2,046,338 (2022: $1,205,356) for these services and this is shown as Trade Debtors.
During the year the company invoiced PM Lucas Enterprises Limited $920,329 (2022: $1,853,878) for Research and Development services. The company was charged by PM Lucas Enterprises Limited $1,000,070 (2022: $1,392,998) for administration fees. PM Lucas Enterprises Limited also owed $4,835,083 (2022: $841,449), this represents historic loans and administration fees.
Also during the year Eastland Engineering Limited was invoiced $618,633 (2022: $1,237,520) by PM Lucas Enterprises D.O.O. (registered in Serbia) for consultancy and engineering services. At the balance sheet date $3,272,849 (2022: $3,443,066) was owed by Eastland Engineering Limited.
Dr. Pavle Matijevic Technologie- u. Forschungsmpulszentrum GmbH invoiced $671,822 (2022: $658,001) for Research and Development services carried out for PM Lucas Enterprises Limited, which will reimburse Eastland Engineering with a markup. At the balance sheet date $1,001,098 (2022: $1,062,578 ) was owed to the company and is included in trade creditors.
The above balances are considered fully recoverable. All entities are ultimately controlled by the same individual.
Eastland Engineering Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 7
10
Post balance sheet events
In October 2022, PM Lucas Kazakhstan LLP and Company and related companies were invited by the Consortium UGS Drilling Chiren, led by the majority partner Glavbolgarstroy AD (GBS), to participate in an EU-funded (CINEA) public procurement tender in Bulgaria. The procuring entity was Bulgartransgaz EAD, under Tender Procurement Number 01351-2022-0064 and Reference Number 220-081. The estimated preliminary value of the tender was BGN 133,694,000 (€68,276,687), with a final bid value of BGN 221,221,000 (€113,032,675) for execution in the Republic of Bulgaria.
With Tender Decision BTG-RD-07-056B from 22.03.2023, the related party PM Lucas Kazakhstan LLP was officially recognized as a subcontractor for this project. The main contract between the winning Consortium UGS Drilling Chiren and the Contracting Authority Bulgartransgaz EAD was executed on 06.04.2023.
As part of this engagement, Company, along with its related Companies provided services for the project, valued total over US$ 12,812,796 of which US$ 6,092,093 are Services accounted to the Company.
Since the balance sheet date, negotiations are in place with the company and related parties are considering legal actions to recover funds.
11
Parent company
By virtue of its shareholding the immediate controlling party is Metropolix Holdings Limited, registered at Κυριάκου Μάτση, 11, Nikis Center, Flat 303, 1082, Λευκωσία, Κύπρος, Cyprus.
The ultimate controlling party is DI. Dr. mont. Pavle Matijevic as he owns 100% of Metropolix Holdings Limited.