Praedia Investments Limited
Notes to the financial statements
For the year ended 30 June 2024
The company is incorporated and domiciled in England and Wales. Its registered office is 2nd Floor, 168 Shoreditch High Street, London, E1 6RA. The principal place of business is 51 New Cavendish Street, London, W1G 9TG. The principal activity is that of a holding company.
2.Accounting policies
|
|
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 FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' and the requirements of the Companies Act 2006. 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 following principal accounting policies have been applied:
The financial statements have been prepared on a going concern basis despite the company reporting net current liabilities of £2,954,952 (2023: £2,903,045). Included within the Creditors: amounts due within one year is an amount of £316,517 (2023: £316,517) due to R G Williams, a former director of the company, and £2,644,837 (2023: £Nil) due to Praedia One Limited and Cardinal One Limited, companies under common control. They have confirmed that they will not call for repayment of the above sums until the company has sufficient cash reserves to do so, without prejudice to the company's other creditors and for a period of at least twelve months from the date of approval of the financial statements.
Investments in subsidiaries are measured at cost less accumulated impairment.
|
|
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.
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
Finance costs are charged to profit or loss 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.
Interest income is recognised in profit or loss using the effective interest method.
Page 2
|