VR Electronics Limited - Filleted accounts

VR Electronics Limited - Filleted accounts

VR ELECTRONICS LIMITED - Company Information

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Registered number
10172993
VR Electronics Limited
Unaudited Filleted Accounts
31 December 2022
VR Electronics Limited
Registered number: 10172993
Balance Sheet
as at 31 December 2022
Notes 2022 2021
£ £
Fixed assets
Investments 5 3 1,165,904
Current assets
Stocks 606,442 558,702
Debtors 6 248,150 239,535
Cash at bank and in hand 53,189 40,048
907,781 838,285
Creditors: amounts falling due within one year 7 (2,942,268) (659,655)
Net current (liabilities)/assets (2,034,487) 178,630
Net (liabilities)/assets (2,034,484) 1,344,534
Capital and reserves
Called up share capital 23,628 22,988
Share premium 10,939,607 10,935,324
Profit and loss account (12,997,719) (9,613,778)
Shareholders' funds (2,034,484) 1,344,534
The directors are satisfied that the company is entitled to exemption from the requirement to obtain an audit under section 477 of the Companies Act 2006.
The members have not required the company to obtain an audit in accordance with section 476 of the Act.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.
The accounts have been prepared and delivered in accordance with the special provisions applicable to companies subject to the small companies regime. The profit and loss account has not been delivered to the Registrar of Companies.
Ashish Solanki
Director
Approved by the board on 15 September 2023
VR Electronics Limited
Notes to the Accounts
for the year ended 31 December 2022
1 Accounting policies
Basis of preparation
The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard).
Company is a small company and therefore it has not prepared consolidated accounts.
Going concern
The accounts have been prepared on a going concern basis. The company is reliant upon the support of its directors/shareholders and regular outside investments until it reaches cash flow positive.

As stated on the directors report, the company has taken steps to move the company operations from Belarus to Poland as due to war in Ukraine, the political attitude towards Belarus has rapidly hardened, in particular numerous sanctions have been levied on Belarus as well as Russia.

As stated on directors report The Company’s accounts have been prepared on the ‘going concern’ basis on the assumption that the company is able to raise adequate funds from investors to continue its operations. Since the accounting period end-date, the company’s financial circumstances have significantly deteriorated, forcing the company to heavily reduce its headcount and cease research and development operations in Minsk. The directors believe there is material uncertainty whether the company will be able to continue operating and are considering their statutory obligations.
Turnover
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.
Intangible fixed assets
Intangible fixed assets are measured at cost less accumulative amortisation and any accumulative impairment losses.
Tangible fixed assets
Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows:
Fixtures, fittings, tools and equipment 100% in year of addition
Investments
Investments in subsidiaries, associates and joint ventures are measured at cost less any accumulated impairment losses. Listed investments are measured at fair value. Unlisted investments are measured at fair value unless the value cannot be measured reliably, in which case they are measured at cost less any accumulated impairment losses. Changes in fair value are included in the profit and loss account.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised.
Debtors
Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.
Creditors
Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.
Taxation
A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.
Provisions
Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably.
Foreign currency translation
Transactions in foreign currencies are converted at the rate of $1=£1.20 (previously it was $1=£1.30). All differences are charged to profit or loss.
Pensions
Contributions to defined contribution plans are expensed in the period to which they relate.
2 Employees 2022 2021
Number Number
Average number of persons employed by the company 1 1
3 Intangible fixed assets £
Goodwill:
Cost
At 1 January 2022 248,557
At 31 December 2022 248,557
Amortisation
At 1 January 2022 248,557
At 31 December 2022 248,557
Net book value
At 31 December 2022 -
Goodwill represents expense incurred relating to legal and IP for the Teslasuit and it is being written off in the year of expenditure.
4 Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 January 2022 52,911
Additions 9,754
At 31 December 2022 62,665
Depreciation
At 1 January 2022 52,911
Charge for the year 9,754
At 31 December 2022 62,665
Net book value
At 31 December 2022 -
5 Investments
Investments in
subsidiary
undertakings
£
Cost
At 1 January 2022 1,165,904
Disposals (1,165,901)
At 31 December 2022 3
Included in the brought-forward cost is an investment of £401,644 in the 100% subsidiary VRTEK, a company incorporated in Belarus, whose principal activity is the development work on the Teslasuit.

Included in the brought-forward cost is an investment of £764,259 in the 100% subsidiary VRTEK Production, a company incorporated in Belarus, whose principal activity is the production of the Teslasuit.

Included above is an investment of £1 in the 100% dormant subsidiary Teslasuit Limited, a company incorporated in England.

As stated in the directors' report, due to the war in Ukraine, the political attitude towards Belarus has rapidly hardened. In particular, numerous sanctions have been levied on both Belarus and Russia.

As a result, the above investments in the subsidiaries have been written down to £1 for each subsidiary.
6 Debtors 2022 2021
£ £
Trade debtors 248,150 239,535
7 Creditors: amounts falling due within one year 2022 2021
£ £
Bank loans and overdrafts 59,899 70,318
Amounts owed to related companies 535,441 291,262
Taxes and social security costs (5,733) (201,813)
Creditors including trade, income received in advance & others 2,352,661 499,888
2,942,268 659,655
Included in above creditors is £1,558,400 received for 'The Advanced Subscription of Company Shares' which will be issued at a price to be determined in due course.
8 Related party transactions
During the year, the 100% subsidiary VRTEK, a company incorporated in Belarus whose principal activity is to carry out the development work on Teslasuit, has made a charge of £1,701,602 (2021-£1,540,643) relating to development work done on Teslasuit.

During the year, the 100% subsidiary VRTEK Production, a company incorporated in Belarus whose principal activity is to manufacture the Teslasuit, sold £315,333 worth of Teslasuits (2021-£269,138) to VR Electronics Limited.
9 Other information
VR Electronics Limited is a private company limited by shares and incorporated in England. Its registered office is:
Lower Ground Floor
One George Yard
London
EC3V 9DF
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