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Financial Statements for the Year Ended 31 December 2018 |
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Select Music & Video Distribution |
Limited |
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REGISTERED NUMBER:
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Financial Statements for the Year Ended 31 December 2018 |
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for |
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Select Music & Video Distribution |
Limited |
Select Music & Video Distribution |
Limited (Registered number: 02619679) |
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Contents of the Financial Statements |
for the Year Ended 31 December 2018 |
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Page |
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Company Information | 1 |
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Balance Sheet | 2 |
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Notes to the Financial Statements | 3 |
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Select Music & Video Distribution |
Limited |
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Company Information |
for the Year Ended 31 December 2018 |
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DIRECTORS: |
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SECRETARY: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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SENIOR STATUTORY AUDITOR: |
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AUDITORS: |
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Statutory Auditor |
3 Boyne Park |
Tunbridge Wells |
Kent |
TN4 8EN |
Select Music & Video Distribution |
Limited (Registered number: 02619679) |
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Balance Sheet |
31 December 2018 |
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2018 | 2017 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 3 |
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Investments | 4 |
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CURRENT ASSETS |
Stocks | 5 |
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Debtors | 6 |
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Cash at bank and in hand |
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CREDITORS |
Amounts falling due within one year | 7 |
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NET CURRENT ASSETS |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
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CAPITAL & RESERVES |
Called up share capital | 10 |
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Retained earnings | 11 |
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SHAREHOLDERS' FUNDS |
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In accordance with Section 444 of the Companies Act 2006, the Statement of Comprehensive Income has not been delivered. |
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The financial statements were approved by the Board of Directors on
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Select Music & Video Distribution |
Limited (Registered number: 02619679) |
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Notes to the Financial Statements |
for the Year Ended 31 December 2018 |
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1. | STATUTORY INFORMATION |
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Select Music & Video Distribution Limited is a
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Wales. The company's registered number and registered office address can be found on the Company |
Information page. |
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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Critical accounting estimates and judgements |
Estimates and assumptions concerning the future and judgements are made by the management in the |
preparation of the financial statements. They affect the application of the Company's accounting policies, |
reported amounts of assets, liabilities, income and expenses and disclosures made. They are assessed on an |
on-going basis and are based on experience and relevant factors, including expectations of future events that are |
believed to be reasonable in the period of revision and future periods, in case the revision also effects future |
periods. |
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Revenue recognition |
Revenue is recognised when it is probable that the economic benefits will flow to the Group and when the |
revenue and costs, if applicable, can be measured reliably and on the following bases: |
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Sales of products is recognised on transfer of risks and rewards of ownership, which generally coincides with the |
time when products are delivered to customers and the title has passed. |
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Handling and distribution fees, download, streaming income and service income are recognised when services are |
rendered. |
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Subscription income is recognised when services are provided under the terms of the online subscription |
agreements. Payments received in advance of providing services are recorded as deferred revenue and amortised |
to revenue over the term of agreement. |
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Licencing income and royalty income are recognised as revenue based on the contract terms. |
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Interest income from bank deposits and loans to fellow subsidiaries is accrued on a time basis, by reference to |
the principal outstanding and at the interest rate applicable |
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Tangible fixed assets |
Depreciation is provided on the straight line method in order to write off each asset over its estimated useful life |
or, if held under a finance lease, over the lease term, whichever is shorter, as follows: |
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Plant & machinery | - 3 years |
Fixtures & fittings | - over the period of the lease |
Motor vehicles | - 4 years |
Computer equipment | - 3 years |
Improvements to property | - over the period of the lease |
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Stocks |
Stocks of finished goods have been valued at the lower of cost and estimated selling price less costs to sell, after |
making due allowance for obsolete and slow moving items. |
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Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to |
the extent that it relates to items recognised in other comprehensive income or directly in equity. |
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Current or deferred taxation assets and liabilities are not discounted. |
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Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or |
substantively enacted by the balance sheet date. |
Select Music & Video Distribution |
Limited (Registered number: 02619679) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 December 2018 |
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2. | ACCOUNTING POLICIES - continued |
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Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance |
sheet date. |
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Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from |
those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws |
that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of |
the timing difference. |
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Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they |
will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
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Recording costs |
Production costs are written off evenly over a 12 month period from the date when new recordings are first |
released for sale. |
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Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the |
balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling |
at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
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Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the |
lease. |
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Pension costs and other post-retirement benefits |
The company operates defined contribution pension schemes. The assets of the schemes are held and controlled |
by independently administered funds. Contributions payable for the year are charged in the profit and loss |
account. |
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Royalties |
Royalties and licensing income is recognised on an accruals basis. |
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Short term debtors & creditors |
Short term debtors and creditors with no stated interest rate are recorded at transaction price. Any losses arising |
from impairment are recognised in the profit and loss account. |
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3. | TANGIBLE FIXED ASSETS |
Improvements |
to | Plant & | Fixtures |
property | machinery | & fittings |
£ | £ | £ |
COST |
At 1 January 2018 |
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Additions |
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Disposals |
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( |
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At 31 December 2018 |
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DEPRECIATION |
At 1 January 2018 |
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Charge for year |
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Eliminated on disposal |
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At 31 December 2018 |
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NET BOOK VALUE |
At 31 December 2018 |
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At 31 December 2017 |
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Select Music & Video Distribution |
Limited (Registered number: 02619679) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 December 2018 |
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3. | TANGIBLE FIXED ASSETS - continued |
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Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1 January 2018 |
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Additions |
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Disposals | ( |
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At 31 December 2018 |
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DEPRECIATION |
At 1 January 2018 |
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Charge for year |
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Eliminated on disposal | ( |
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At 31 December 2018 |
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NET BOOK VALUE |
At 31 December 2018 |
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At 31 December 2017 |
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4. | FIXED ASSET INVESTMENTS |
Unlisted |
investments |
£ |
COST |
At 1 January 2018 |
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Additions |
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At 31 December 2018 |
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NET BOOK VALUE |
At 31 December 2018 |
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At 31 December 2017 |
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The company's investments at the Balance Sheet date in the share capital of companies include the following: |
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Registered office: |
Nature of business:
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Class of shares: | holding |
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2018 | 2017 |
£ | £ |
Aggregate capital and reserves |
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Profit for the year |
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Select Music & Video Distribution |
Limited (Registered number: 02619679) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 December 2018 |
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5. | STOCKS |
2018 | 2017 |
£ | £ |
Goods for resale |
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In addition to its own stocks detailed above, the company holds stock on consignment of £2,050,526 (2017: |
£9,606,072) valued at current selling prices less the company's margin. Title to the goods remains with the |
consignors and the company bears no liability until the stock has been sold. |
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6. | DEBTORS |
2018 | 2017 |
£ | £ |
Amounts falling due within one year: |
Trade debtors |
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Other debtors |
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Recording costs | - | 8,598 |
Parent company | 1,966 | - |
Other group companies | 1,933,884 | 2,367,411 |
Deferred tax asset |
Accelerated capital allowances | 31,390 | 844 |
Accrued income |
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Prepayments |
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Amounts falling due after more than one year: |
Other debtors |
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Aggregate amounts |
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Other debtors within one year includes a rent deposit of £nil (2017: £174,987) which was not returnable until the |
expiry of the relevant lease in March 2018. |
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Other debtors due after more than one year includes a rent deposit of £76,152 (2017: £76,152) relating to a 10 |
year lease on a property which expires in October 2027. |
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7. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2018 | 2017 |
£ | £ |
Trade creditors |
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Social security & other taxes |
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Other creditors |
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Parent company | 146,133 | 146,133 |
Other group companies | 853,454 | 434,332 |
Accruals |
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Select Music & Video Distribution |
Limited (Registered number: 02619679) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 December 2018 |
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8. | LEASING AGREEMENTS |
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Minimum lease payments under non-cancellable operating leases fall due as follows: |
2018 | 2017 |
£ | £ |
Within one year |
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Between one and five years |
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In more than five years |
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9. | DEFERRED TAX |
£ |
Balance at 1 January 2018 | ( |
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Accelerated capital allowances | 31,154 |
Losses carried forward | (61,700 | ) |
Balance at 31 December 2018 | ( |
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10. | CALLED UP SHARE CAPITAL |
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Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2018 | 2017 |
value: | £ | £ |
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Ordinary | £1 | 100,000 | 100,000 |
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11. | RESERVES |
Retained |
earnings |
£ |
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At 1 January 2018 |
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Deficit for the year | ( |
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At 31 December 2018 |
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12. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
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The Report of the Auditors was unqualified. |
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for and on behalf of
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13. | PENSION COMMITMENTS |
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The company operates defined contribution pension schemes. Contributions due and paid for the year amounted |
to £33,013 (2017: £28,124). |
Select Music & Video Distribution |
Limited (Registered number: 02619679) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 December 2018 |
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14. | RELATED PARTY DISCLOSURES |
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The company is a wholly owned subsidiary of Naxos Global Distribution Limited, a company registered in Hong |
Kong. The ultimate controlling parties are Mr K Heymann & Mrs T Heymann. |
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The value of group products and services purchased by the company during the year was £1,857,707 (2017 |
: £2,471, 435). Sales to companies within the group amounted to £1,500,303 (2017: £1,133,745). Interest has |
been charged on amounts owing by parent and other group companies totalling £45,211 (2017: £51,647). |
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Balances outstanding at 31 December 2018 were as follows: - |
2018 | 2017 |
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£ | £ |
Amounts due from parent company:- |
Trade Accounts | 1,966 | - |
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Amounts due from other group companies:- |
Naxos Rights International Limited |
Current account | 630,943 | 648,097 |
Trade accounts | 72,633 | 36.112 |
703,576 | 684,209 |
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Naxos Audio Books (UK) Limited |
Current account | - | 200,000 |
Trade accounts | 12,163 | 368,830 |
12,163 | 568,830 |
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Naxos Rights (Europe) Ltd |
Current account | - | 50,417 |
Trade accounts | 76,015 | 60,439 |
76,015 | 110,856 |
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Other trade accounts: - |
Naxos Media Holdings (Europe) Ltd | - | 14,352 |
Naxos Global Logistics GmbH | 477,456 | 509,451 |
Naxos International (Far East) Limited | 148,563 | 142,425 |
Naxos Japan Inc | - | 21,466 |
Naxos of America Inc. | 98,855 | 18,199 |
Naxos Sweden AB | - | 7,480 |
Ondine | 899 | 888 |
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346,479 | 234,893 |
Naxos Digital Services US Inc | 9,433 | 4,637 |
HNH International Ltd | 59,441 | 22,249 |
Arkiv Music Inc | - | 27,476 |
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1,932,880 | 2,367,411 |
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Amounts due to parent company:- |
Loan account | 146,133 | 146,133 |
Trade account | 2,756 | - |
148,889 | 146,133 |
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Select Music & Video Distribution |
Limited (Registered number: 02619679) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 December 2018 |
Amounts due to other group companies:- |
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Naxos Global Logistics GmbH |
Current accounts | 5,621 | - |
Trade accounts | 258,336 | 144,862 |
263,957 | 144,862 |
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Other trade accounts:- |
Ondine | 509 | - |
Orfeo International Music GmbH | 459 | 11,258 |
Oehms Classics Musikproduktion GmbH | 127 | - |
Naxos Deutschland | 407 | - |
Naxos Audio Books (UK) Limited | - | 20,343 |
Naxos Digital Services US Inc | 210,292 | 100,677 |
Naxos Rights US Inc | 367,781 | 151,657 |
Naxos Sweden AB | 7,164 | 5,535 |
850,696 | 434,332 |
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15. | ULTIMATE CONTROLLING PARTY |
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The company is a wholly owned subsidiary of Naxos Global Distribution Limited, a company registered in Hong |
Kong. The ultimate controlling parties are Mr K Heymann & Mrs T Heymann. |
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16. | ULTIMATE PARENT COMPANY |
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The ultimate parent company is Naxos Global distribution Limited, a company registered in Hong Kong. |
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The results for the year of the company are included in the group financial statements of Naxos Global |
Distribution Limited for the year ended 31 December 2018. The group financial statements are not publicly |
available. |