Company registration number 03621082 (England and Wales)
HD1 DEVELOPMENTS LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
PAGES FOR FILING WITH REGISTRAR
HD1 DEVELOPMENTS LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 7
The following pages do not form part of the statutory financial statements
HD1 DEVELOPMENTS LIMITED
BALANCE SHEET
AS AT 31 AUGUST 2024
31 August 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
4
657
876
Investment property
5
2,870,000
2,870,000
2,870,657
2,870,876
Current assets
Debtors
6
21,107
72,356
Cash at bank and in hand
46,837
14,970
67,944
87,326
Creditors: amounts falling due within one year
7
(87,615)
(42,119)
Net current (liabilities)/assets
(19,671)
45,207
Total assets less current liabilities
2,850,986
2,916,083
Creditors: amounts falling due after more than one year
8
(6,905,628)
(6,895,914)
Net liabilities
(4,054,642)
(3,979,831)
Capital and reserves
Called up share capital
9
100
100
Profit and loss reserves
(4,054,742)
(3,979,931)
Total equity
(4,054,642)
(3,979,831)
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 August 2024 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 22 May 2025
Mr S H Jan
Director
Company registration number 03621082 (England and Wales)
HD1 DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
- 2 -
1
Accounting policies
Company information
HD1 Developments Limited is a private company limited by shares incorporated in England and Wales. The registered office is St George's Quarter, New North Parade, Huddersfield, West Yorkshire, HD1 5JP.
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, modified to include investment properties at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
The financial statements have been prepared on the going concern concept which is reliant on the continued support of the company's director, a company controlled by the director and two companies controlled by the director's family members. During the year the company made a loss of (£74,811). The company's balance sheet shows net liabilities of £4,054,642 including its major assets being investment properties which are not readily realisable. These properties have been included in the balance sheet at their estimated aggregate open market value at 31 August 2024 of £2,870,000, as disclosed at note 5 to the financial statements.
There are no formal loan agreements in place in respect of loans payable by the company to the director, to Cross Rail Hotels Limited (a company controlled by the director), to Energy Plus Limited and to Energi Asia DMCC (both companies controlled by M I Puri and his family members). These loans are therefore repayable on demand, however, the lenders have formally confirmed in writing that repayment of the loans has been postponed until periods more than 12 months after the date of approval of these financial statements. On this basis the loans have been classified as long term liabilities in the balance sheet.
This leaves the company with net current liabilities of (£19,671) at 31 August 2024. The company requires working capital support from the director and his associates to enable it to meet its day to day commitments through to May 2026. M I Puri Group has provided written confirmation that he can and will provide this support to the company.
Accordingly the financial statements have been prepared on a going concern basis.
1.3
Turnover
Turnover shown in the Profit and Loss Account represents rental and car park income receivable during the year excluding Value Added Tax.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Fixtures and equipment
25% reducing balance
Computer equipment
33.33% straight line
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.
HD1 DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 3 -
1.5
Investment property
Investment property is initially recorded at cost, which includes purchase price and any directly attributable expenditure. Investment property is revalued to its fair value at each reporting date and any changes in fair value are recognised in the profit and loss account. As noted at note 5 to the financial statements investment properties have not been revalued since 2022 as the director believes that the 2022 valuations are appropriate to use as reasonable estimates of open market values at 31 August 2024.
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 has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally 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.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.
HD1 DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 4 -
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts 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 creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
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.
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.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
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.
HD1 DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 5 -
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
3
2
4
Tangible fixed assets
Fixtures and equipment
Computer equipment
Total
£
£
£
Cost
At 1 September 2023 and 31 August 2024
202,788
895
203,683
Depreciation and impairment
At 1 September 2023
201,912
895
202,807
Depreciation charged in the year
219
219
At 31 August 2024
202,131
895
203,026
Carrying amount
At 31 August 2024
657
657
At 31 August 2023
876
876
5
Investment property
2024
£
Fair value
At 1 September 2023 and 31 August 2024
2,870,000
HD1 DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
5
Investment property
(Continued)
- 6 -
Two of the investment properties were valued at their open market value by Mark Hanson FRICS of Hanson Chartered Surveyors at 1 August 2022. The director has confirmed that this valuation is appropriate to use as a reasonable estimate of both properties open market values as at 31 August 2023 and 31 August 2024.
The third investment property was valued at its open market value by Sloan Property Services Limited, Estate Agents, Surveyors and Valuers at 25 July 2022. The director has confirmed that this valuation is appropriate to use as a reasonable estimate of the property's open market value as at 31 August 2023 and 31 August 2024.
6
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,127
Other debtors
5,586
5,752
Prepayments and accrued income
15,521
65,477
21,107
72,356
7
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
17,812
30,394
Taxation and social security
17,094
1,928
Other creditors
882
993
Accruals and deferred income
51,827
8,804
87,615
42,119
8
Creditors: amounts falling due after more than one year
2024
2023
£
£
Other creditors
6,905,628
6,895,914
9
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
HD1 DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 7 -
10
Related party transactions
The director's loan to the company at 31 August 2024 in the amount of £5,547,068 (2023: £5,609,035) is included in other creditors falling due after more than one year. The loan is due to Mr S H Jan. This loan is secured against one of the company's investment properties and is currently interest free. The director has formally confirmed that repayment of this loan has been postponed until periods more than 12 months after the date of approval of these financial statements.
Other debtors include an amount of £2,587 (2023: £2,587) due from HD1 Limited, a company under common control.
Other debtors include an amount of £2,999 (2023: £2,999) due from Energi Europe Limited. The share capital of this company is beneficially owned by Mr M I Puri.
Included in other creditors falling due after more than one year is an amount of £190,299 (2023: £102,046) due to Cross Rail Hotels Limited, which is a company under common control. This loan is unsecured and currently interest free. The company has formally confirmed that repayment of this loan has been postponed until periods more than 12 months after the date of approval of these financial statements.
Other creditors due after more than one year includes loans of £239,947 (2023: £256,519) due to Energy Plus
Limited and £928,314 (2023: £928,314) due to Energi Asia DMCC. Energy Plus Limited and Energi Asia DMCC are beneficially owned by Mr M I Puri and his family members. These loans are unsecured and currently interest free. Both Energy Plus Limited and Energi Asia DMCC have formally confirmed that repayment of these loans have been postponed until periods more than 12 months after the date of approval of these financial statements.
11
Controlling party
This company is controlled by Mr S H Jan.