SQI Limited
Annual Report and Unaudited Financial Statements
For the year ended 31 March 2018
Pages for filing with registrar
Company Registration No. 06999589 (England and Wales)
SQI Limited
Contents
Page
Balance sheet
1 - 2
Notes to the financial statements
4 - 8
SQI Limited
Balance Sheet
As at 31 March 2018
Page 1
2018
2017
Notes
£
£
£
£
Fixed assets
Investment properties
5
4,037,098
3,965,016
Investments
6
1
1
4,037,099
3,965,017
Current assets
Debtors
8
20,295
3,634
Cash at bank and in hand
342,645
346,736
362,940
350,370
Creditors: amounts falling due within one year
9
(2,813,157)
(637,955)
Net current liabilities
(2,450,217)
(287,585)
Total assets less current liabilities
1,586,882
3,677,432
Provisions for liabilities
11
(200,307)
(214,970)
Net assets
1,386,575
3,462,462
Capital and reserves
Called up share capital
12
100
100
Revaluation reserve
1,249,500
1,235,506
Profit and loss reserves
136,975
2,226,856
Total equity
1,386,575
3,462,462
SQI Limited
Balance Sheet (Continued)
As at 31 March 2018
Page 2
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 March 2018 the company was entitled to exemption from audit under section 477 of the Companies Act 2006.
T
he director acknowledges his responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.
T
he members have 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 by the board of directors and authorised for issue on 20 December 2018 and are signed on its behalf by:
A Darzi
Director
Company Registration No. 06999589
SQI Limited
Statement of Changes in Equity
For the year ended 31 March 2018
Page 3
Share capital
Revaluation reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 April 2016
100
-
2,287,039
2,287,139
Period ended 31 March 2017:
Profit and total comprehensive income for the year
-
-
1,175,323
1,175,323
Transfers
-
1,235,506
(1,235,506)
-
Balance at 31 March 2017
100
1,235,506
2,226,856
3,462,462
Period ended 31 March 2018:
Profit and total comprehensive income for the year
-
-
(25,887)
(25,887)
Dividends
4
-
-
(2,050,000)
(2,050,000)
Transfers
-
13,994
(13,994)
-
Balance at 31 March 2018
100
1,249,500
136,975
1,386,575
SQI Limited
Notes to the Financial Statements
For the year ended 31 March 2018
Page 4
1
Accounting policies
Company information
SQI Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Devonshire House, 60 Goswell Road, London, EC1M 7AD.
1.1
Accounting convention
These financial statements have been prepared in accordance with Section 1A of 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
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest pound.
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
Turnover
Turnover represents
rental income
receivable net of VAT and trade discounts.
1.3
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is measured using the fair value model and stated at its fair value as the reporting end date.
The surplus or deficit on revaluation is recognised in the profit and loss account.
1.4
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.
1.5
Cash and cash equivalents
Cash at bank and in hand
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.
1.6
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.
1.7
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.8
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
SQI Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2018
1
Accounting policies
(Continued)
Page 5
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.
1.9
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 are included in the profit and loss account for the period.
2
Employees
The company had no employees in the current or prior year.
3
Taxation
2018
2017
£
£
Deferred tax
Origination and reversal of timing differences
(14,663)
214,970
4
Dividends
2018
2017
£
£
Final paid
50,000
-
Ordinary dividend
2,000,000
-
2,050,000
-
SQI Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2018
Page 6
5
Investment property
2018
£
Fair value
At 1 April 2017
3,965,016
Additions
69,117
Foreign exchange differences
2,965
At 31 March 2018
4,037,098
Investment property was valued as at 31 March 2018 on an open market basis by the independent property manager. In the opinion of the director the value of the investment property in the local currency has not changed since the valuation date.
If investment properties were stated on an historical cost basis rather than a fair value basis, the amounts would have been included as follows:
2018
2017
£
£
Cost
2,587,291
2,518,174
Accumulated depreciation
-
-
Carrying amount
2,587,291
2,518,174
6
Fixed asset investments
2018
2017
£
£
Investments
1
1
7
Subsidiaries
Details of the company's subsidiaries at 31 March 2018 are as follows:
Name of undertaking and country of
Nature of business
Class of
% Held
incorporation or residency
shareholding
Direct
Indirect
SQI Property Limited
England and Wales
Dormant
Ordinary
100.00
-
SQI Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2018
7
Subsidiaries
(Continued)
Page 7
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Profit/(Loss)
Capital and Reserves
£
£
SQI Property Limited
-
1
8
Debtors
2018
2017
Amounts falling due within one year:
£
£
Other debtors
20,295
3,634
9
Creditors: amounts falling due within one year
2018
2017
£
£
Amounts due to group undertakings
2,806,506
631,654
Other creditors
6,651
6,301
2,813,157
637,955
10
Provisions for liabilities
2018
2017
£
£
Deferred tax liabilities
11
200,307
214,970
11
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2018
2017
Balances:
£
£
Revaluations
200,307
214,970
SQI Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2018
11
Deferred taxation
(Continued)
Page 8
2018
Movements in the year:
£
Liability at 1 April 2017
214,970
Credit to profit and loss
(14,663)
Liability at 31 March 2018
200,307
The deferred tax liability set out above relates to the revaluation of investment property. It is unknown when the liability will be reversed.
12
Called up share capital
2018
2017
£
£
Ordinary share capital
Issued and fully paid
100 Ordinary shares of £1 each
100
100
100
100
13
Related party transactions
At the balance sheet date, the company owed an amount of £2,806,506 (2017: £631,654) to its parent company.
14
Controlling party
The immediate parent company is SQI Investments Limited, a company incorporated in England and Wales. The company is controlled by A Darzi.