Scarletroute Limited - Limited company accounts 11.4

REGISTERED NUMBER: 06796835 (England and Wales)

Report of the Directors and

Unaudited Financial Statements For The Year Ended 31 December 2013

for

Scarletroute Limited

Page

Company Information

1

Report of the Directors

2

Profit and Loss Account

3

Balance Sheet

4

Notes to the Financial Statements

6

DIRECTORS:

S C Righetti

Managing Growth Trustees SA

SECRETARY:

Miss T C Gilliland

REGISTERED OFFICE:

Third Floor

15 Poland Street

London

W1F 8QE

REGISTERED NUMBER:

06796835 (England and Wales)

ACCOUNTANTS:

Gower Accountancy Ltd

Third Floor

15 Poland Street

London

W1F 8QE

The directors present their report with the financial statements of the company for the year ended 31 December 2013.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of investment holding company.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2013 to the date of this

report.

S C Righetti

Managing Growth Trustees SA

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating

to small companies.

ON BEHALF OF THE BOARD:

S C Righetti - Director

18 August 2014

TURNOVER

-

Administrative expenses

(33,446

)

(31,463

)

(33,446

)

(31,463

)

Other operating income

-

47

OPERATING LOSS

2

(33,446

)

(31,416

)

Interest receivable and similar income

3

4,566

111,470

(28,880

)

80,054

Interest payable and similar charges

-

(244,801

)

LOSS ON ORDINARY ACTIVITIES
BEFORE TAXATION

(28,880

)

(164,747

)

Tax on loss on ordinary activities

4

19,225

(19,985

)

LOSS FOR THE FINANCIAL YEAR

(9,655

)

(184,732

)

FIXED ASSETS

Investments

5

11,304,023

11,331,370

CURRENT ASSETS

Debtors

6

27,079

-

Investments

7

96,526

3,168

Cash at bank

13,353

113,543

136,958

116,711

CREDITORS

Amounts falling due within one year

8

(12,897

)

(10,342

)

NET CURRENT ASSETS

124,061

106,369

TOTAL ASSETS LESS CURRENT
LIABILITIES

11,428,084

11,437,739

CREDITORS

Amounts falling due after more than one
year

9

(4,013,466

)

(10,879,646

)

NET ASSETS

7,414,618

558,093

CAPITAL AND RESERVES

Called up share capital

10

8,000,520

1,134,340

Profit and loss account

11

(585,902

)

(576,247

)

SHAREHOLDERS' FUNDS

7,414,618

558,093

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2013.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2013 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end
of each financial year and of its profit or loss for each financial year in accordance with the requirements of
Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to
financial statements, so far as applicable to the company.

The financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies and with the Financial Reporting Standard for Smaller Entities (effective April 2008).

The financial statements were approved by the Board of Directors on 18 August 2014 and were signed on its behalf by:

S C Righetti - Director

1.	ACCOUNTING POLICIES

Accounting convention

The financial statements have been prepared under the historical cost convention and in accordance with the

Financial Reporting Standard for Smaller Entities (effective April 2008).

Compliance with accounting standards

The financial statements are prepared in accordance with applicable United Kingdom Accounting Standards

(United Kingdom Generally Accepted Accounting Practice), which have been applied consistently (except as

otherwise stated).

Going concern

The financial statements have been prepared on a going concern basis. The directors have obtained undertakings

from the company's shareholders that they will continue to support the company for the foreseeable future and

meet all third party liabilities as they fall due. Given this undertaking, the directors consider it appropriate to

adopt a going concern basis in preparing the financial statements.

Investments:

Fixed Asset Investments

Fixed asset investments are stated at cost less provision for diminution in value.

Current Asset Investments

Current asset investments are stated at lower of cost and net realisable value.

Preparation of consolidated financial statements

The financial statements contain information about Scarletroute Limited as an individual company and do not

contain consolidated financial information as the parent of a group. The company has taken the option under

Section 398 of the Companies Act 2006 not to prepare consolidated financial statements.

Exemption from preparing a cash flow statement

Exemption has been taken from preparing a cash flow statement on the grounds that the company qualifies as a

small company.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the

balance sheet date.

Foreign currencies

Assets and liabilities in foreign currencies are translated into Euro at the rates of exchange ruling at the balance

sheet date. Transactions in foreign currencies are translated into Euro at the rate of exchange ruling at the date

of transaction. Exchange differences are taken into account in arriving at the operating result.

2.	OPERATING LOSS

The operating loss is stated after charging:

2013

2012

€

Foreign exchange differences

792

302

Directors' remuneration and other benefits etc

-

3.

INTEREST RECEIVABLE AND SIMILAR INCOME

2013

2012

€

Loan interest receivable

4,566

111,470

4.

TAXATION

Analysis of the tax (credit)/charge

The tax (credit)/charge on the loss on ordinary activities for the year was as follows:

2013

2012

€

Current tax:

UK corporation tax

(19,225

)

19,985

Tax on loss on ordinary activities

(19,225

)

19,985

5.	FIXED ASSET INVESTMENTS

2013

2012

€

Shares in group undertakings

35,000

Loans to group undertakings

11,269,023

11,296,370

11,304,023

11,331,370

Additional information is as follows:

Shares in

group

undertakings

€

COST

At 1 January 2013

and 31 December 2013

35,000

NET BOOK VALUE

At 31 December 2013

35,000

At 31 December 2012

35,000

The company's investments at the balance sheet date in the share capital of companies include the following:

Scarletgarten GmbH

Country of incorporation: Austria

Nature of business: Real Estate

%

Class of shares:

holding

Ordinary

100.00

2013

2012

€

Aggregate capital and reserves

11,020,817

11,021,850

Loss for the year

(1,033

)

(163,150

)

Investments are made up of equity shares, long term loans and equity finance. There are no plans for the equity

finance to be repaid in the foreseeable future as it forms part of the capital base of the investee company. The

equity finance is regarded as "permanent equity" and does not rank for interests whatsoever.

Loans to

group

undertakings

€

At 1 January 2013

11,296,370

New in year

4,565

Repayment in year

(31,912

)

At 31 December 2013

11,269,023

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2013

2012

€

Other debtors

27,079

-

7.	CURRENT ASSET INVESTMENTS

2013

2012

€

Other

96,526

3,168

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2013

2012

€

Trade creditors

6,897

5,571

Taxation and social security

-

3,777

Other creditors

6,000

994

12,897

10,342

9.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR

2013

2012

€

Other creditors

4,013,466

10,879,646

Amounts falling due in more than five years:

Repayable otherwise than by instalments

Shareholder loan non-interest

4,013,466

4,018,600

Shareholder loan int. bearing

-

6,861,046

4,013,466

10,879,646

10.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2013

2012

value:

€

6,897

Ordinary

1160

8,000,520

1,134,340

11.

RESERVES

Profit

and loss

account

€

At 1 January 2013

(576,247

)

Deficit for the year

(9,655

)

At 31 December 2013

(585,902

)

12.	RELATED PARTY DISCLOSURES

Scarletgarten GmbH

Subsidiary

The following balances existed with related parties as at 31 December 2013:

Loans to subsidiary:

a) Equity Finance €8,350,000 (2012: €8,350,000)

b) Interest bearing loan €2,919,023 (2012: €2,946,370), including interest receivable on the loan €4,566 (2012:

€111,470).

The following transaction existed between related parties as at 31 December 2013:

Interest receivable on loan to subsidiary €4,566 (2012: €111,470).