Company registration number 00938986 (England and Wales)
CHRYSALIS RECORDS LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
PAGES FOR FILING WITH REGISTRAR
CHRYSALIS RECORDS LIMITED
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 10
CHRYSALIS RECORDS LIMITED
BALANCE SHEET
AS AT
31 MARCH 2022
31 March 2022
- 1 -
2022
2021
Notes
£
£
£
£
Fixed assets
Intangible assets
5
488,114
505,756
Investments
6
100
100
488,214
505,856
Current assets
Stocks
7
947,779
484,764
Debtors
8
3,739,291
1,881,195
Cash at bank and in hand
1,177,035
685,898
5,864,105
3,051,857
Creditors: amounts falling due within one year
9
(5,550,538)
(2,799,920)
Net current assets
313,567
251,937
Total assets less current liabilities
801,781
757,793
Capital and reserves
Called up share capital
10
10,481
10,481
Profit and loss reserves
791,300
747,312
Total equity
801,781
757,793
The Directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
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 by the board of directors and authorised for issue on 28 December 2022 and are signed on its behalf by:
Golnar Khosrowshahi
Director
Company Registration No. 00938986
CHRYSALIS RECORDS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2022
- 2 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 April 2020
10,481
214,119
224,600
Year ended 31 March 2021:
Profit and total comprehensive income for the year
-
533,193
533,193
Balance at 31 March 2021
10,481
747,312
757,793
Year ended 31 March 2022:
Profit and total comprehensive income for the year
-
43,988
43,988
Balance at 31 March 2022
10,481
791,300
801,781
CHRYSALIS RECORDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
- 3 -
1
Accounting policies
Company information
Chrysalis Records Limited is a private company limited by shares incorporated in England and Wales. The registered office is Ground Floor, Charles House, 5-11 Regent Street, St James's, London, SW1Y 4LR. The trading address is Victoria House, Unit G2, 1 Leonard Circus, 64 Paul Street, London, EC2A 4DQ.
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 a
mounts
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.
The company has taken advantage of the exemption under section
399
of the
Companies Act 2006 not to prepare consolidated accounts
, on the basis that the group of which this is the parent qualifies as a small group
. The
financial statements
present information about the company as an individual entity and not about its group
.
1.2
Going concern
The financial statements have been prepared on a going concern basis as the directors are satisfied that the company will continue in operational existence for a period of at least twelve months from the date of approval of the financial statements. When forming this assessment, the directors have taken into account the availability of working capital, the latest trading position and expected support from the immediate parent company, if required. The financial statements do not reflect any adjustments that would result from the company not being a going concern.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business
and
is shown net of VAT and other sales related taxes
.
The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
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.
Turnover
includes
royalty income rec
eivable.
(i) Royalties receivable are recognised
when amounts are known
or can be estimated reliably and supported by third party sales data.
(ii)
Royalties payable are calculated by reference to statements of account used for determining royalties receivable.
CHRYSALIS RECORDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 4 -
1.4
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date
where
it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the
fair
value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation 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:
Music catalogue
straight line over 25 years
The useful life of the catalogues has been assessed by the directors based upon their industry knowledge and they have chosen an amortisation period that they consider prudent.
1.5
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
The investments are assessed for impairment at each reporting date
and
any
impairment
losses or reversals of impairment losses are recognised immediately in
profit
or
loss
.
A subsidiary is an entity controlled by the company
. Control is
the power to govern the financial and operating policies of
the
entity so as to obtain benefits from its activities.
1.6
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
and intangible 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.
CHRYSALIS RECORDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 5 -
1.7
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.
1.8
Cash at bank and in hand
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.
1.9
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.
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
paymen
ts 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. A
m
ounts 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.
CHRYSALIS RECORDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 6 -
1.10
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.
1.11
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.
1.12
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
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the Directors are 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.
Royalties payable
Royalties payable are accrued for artists' shares of income included in turnover. Amounts accrued at
a reporting date
are
estimated based upon expected levels of payments that will become due and be payable in due course when certain factors and calculations are finalised. Other creditors include £
4
75,766 (2021: £463,633) of such accrued amounts at the
reporting date.
CHRYSALIS RECORDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
2
Judgements and key sources of estimation uncertainty
(Continued)
- 7 -
Impairment and amortisation of intangible assets
Intangible assets comprise of a music catalogue and management reviews the carrying value on an annual basis to ascertain if there are any impairment indicators. This impairment review includes a review of the performance of the music catalogue - which generates royalty income - during the financial year along with estimates of future income.
The amortisation charge for intangible assets is sensitive to changes in the estimated lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. See note 5 for the carrying amount of the intangible assets and note 1.4 for the useful economic lives for each class of asset.
Stock provision
Stock is reviewed periodically and a provision is made where the estimated selling price less costs to complete and sell the stock is expected to be below cost.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Total
4
4
4
Taxation
2022
2021
£
£
Current tax
UK corporation tax on profits for the current period
14,284
178,543
Deferred tax
Origination and reversal of timing differences
(50,178)
Total tax charge
14,284
128,365
CHRYSALIS RECORDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 8 -
5
Intangible fixed assets
Music catalogue
£
Cost
At 1 April 2021 and 31 March 2022
530,000
Amortisation and impairment
At 1 April 2021
24,244
Amortisation charged for the year
17,642
At 31 March 2022
41,886
Carrying amount
At 31 March 2022
488,114
At 31 March 2021
505,756
6
Fixed asset investments
2022
2021
£
£
Investments
100
100
The company holds
100
% of the share capital of Ensign Records Limited
, a company incorporated in the UK
and which prepares financial statements to 30 June each year
. The capital and reserves and results of this dormant subsidiary were £Nil (202
1
: £Nil). The registered office is the same as that of this company.
7
Stocks
2022
2021
£
£
Stocks
947,779
484,764
8
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
499,929
177,912
Other debtors
3,239,362
1,703,283
3,739,291
1,881,195
CHRYSALIS RECORDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 9 -
9
Creditors: amounts falling due within one year
2022
2021
£
£
Trade creditors
604,072
526,938
Amounts owed to group undertakings
2,975,321
900,356
Corporation tax
14,284
178,543
Other taxation and social security
223,863
212,811
Other creditors
1,732,998
981,272
5,550,538
2,799,920
10
Called up share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 0.08p each
13,101,000
13,101,000
10,481
10,481
11
Audit report information
As the income statement has been omitted from the filing copy of the financial statements
,
the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006
:
The auditor's report was unqualified.
The senior statutory auditor was Anastasia Frangos and the auditor was Haysmacintyre LLP.
12
Financial commitments, guarantees and contingent liabilities
In connection with borrowings granted by lenders to Reservoir Media Management, Inc, being an intermediate parent company, such borrowings have been secured by a fixed and floating charge over all of the assets of the company. The company has also entered into a negative pledge with the lenders in respect of these borrowings.
13
Related party transactions
Reservoir Media Management, Inc. is considered to be a related party as it is an intermediate holding company. The company received royalties of £986,419 (20
2
1: £842,101) from and paid distribution and similar fees of £
49,223
(20
2
1: £42,433) to Reservoir Music Management, Inc. A balance of £1,767,424 (2021: £575,811) is due from Reservoir Media Management, Inc. at 31st March 2022.
The
company has taken advantage of the exemption available under FRS 102 section 33 related parties not to disclose transactions with other wholly owned group companies.
14
Directors' transactions
The company paid fees of £
Nil
(2021: £2,000) in respect of services provided by the directors to the company.
CHRYSALIS RECORDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 10 -
15
Controlling company
The immediate parent company is Blue Raincoat Music Limited, which is a company incorporated in England and Wales.
At 31st March 2022, the ultimate parent company is Reservoir Media, Inc, a company incorporated in the United States of America.
The largest and smallest group in which the results of the company are consolidated is headed by Reservoir Media, Inc. The group financial statements of Reservoir Media, Inc. are publicly available and can be obtained at www.investors.reservoir-media.com.
At 31st March 2021, the ultimate parent company was Persis Holdings Limited by virtue of its controlling shareholding in the company. Persis Holdings Limited is incorporated in Canada.
2022-03-31
2021-04-01
false
28 December 2022
CCH Software
CCH Accounts Production 2022.200
No description of principal activity
This audit opinion is unqualified
J Lascelles
R Millar
Golnar Khosrowshahi
Rell Lafargue Jr
Golnar Khosrowshahi
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