Hardsoft Leasing Limited - Limited company accounts 23.2

REGISTERED NUMBER: 07907668 (England and Wales)

Report of the Directors and

Financial Statements

For The Year Ended 31 March 2023

for

Hardsoft Leasing Limited

Page

Company Information

1

Report of the Directors

2

Report of the Independent Auditors

3

Statement of Comprehensive Income

6

Statement of Financial Position

7

Statement of Changes in Equity

8

Notes to the Financial Statements

9

DIRECTORS:

P P Morgan

A D Morgan

REGISTERED OFFICE:

10-12 Mulberry Green

Old Harlow

Essex

CM17 0ET

REGISTERED NUMBER:

07907668 (England and Wales)

AUDITORS:

Giess Wallis Crisp LLP

Registered Auditor

10-12 Mulberry Green

Old Harlow

Essex

CM17 0ET

The directors present their report with the financial statements of the company for the year ended 31 March 2023.

DIVIDENDS

An interim dividend of £0.70 per share was paid on 31 March 2023. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 March 2023 will be £ 70,000 .

DIRECTORS

The directors shown below have held office during the whole of the period from 1 April 2022 to the date of this report.

P P Morgan

A D Morgan

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Giess Wallis Crisp LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

P P Morgan - Director

5 October 2023

Opinion

We have audited the financial statements of Hardsoft Leasing Limited (the 'company') for the year ended 31 March 2023 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 March 2023 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Report of the Directors has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page two, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the the company and the industry in which they operate, we identified the significant laws and regulations in relation to this company as being: financial reporting legislation (including Companies Act 2006), taxation legislation (including corporation tax act 2010) and the Financial Conduct Authority (FCA), we considered the extent to which non-compliance might have a material effect on the financial statements. These laws and regulations could have a direct impact on the financial statements. As part of the planning process we evaluated the management's incentives and opportunities for fraudulent manipulation of the financial statements and concluded that the principal risk is related to the possible override of controls by management. The results of the above assessment were communicated to the engagement team during the engagement team briefing prior to the commencement of the audit field work.

Audit procedures performed in response to the potential risks relating to irregularities fraud and non-compliance with laws and regulations comprised of:

- Enquiries of management and those charged with governance.

- Evaluation and testing of the effectiveness of internal controls via a combination of walkthrough testing and detailed controls testing.

- Testing the appropriateness of entries in the nominal ledger, including journal entries.

- Review and testing of transactions either side of the end of the reporting period.

- Analytical review of the financial statements at both planning and completion stage to identify any anomalies or unexpected movements in account balances which may be indicative of fraud.

- Inspection and examination of legal invoices and correspondence.

The results of the above audit procedures were that no instances of non-compliance with laws and regulations were identified and no instances of material fraud were identified.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. There is therefore an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISA's (UK).

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Other matters which we

required to address

As required by ISA 710, we highlight that the comparative year figures are unaudited, although, sufficient and appropriate evidence has been obtained to ensure that the opening balances do not contain misstatements that materially affect the current period's financial statements.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Tony Crisp FCA (Senior Statutory Auditor)

for and on behalf of Giess Wallis Crisp LLP

Registered Auditor

10-12 Mulberry Green

Old Harlow

Essex

CM17 0ET

5 October 2023

TURNOVER

4

1,073,657

489,934

Cost of sales

146,198

33,917

GROSS PROFIT

927,459

456,017

Administrative expenses

269,673

85,338

657,786

370,679

Other operating income

42

2,516

OPERATING PROFIT

6

657,828

373,195

Interest payable and similar expenses

7

303,365

102,643

PROFIT BEFORE TAXATION

354,463

270,552

Tax on profit

8

181,549

-

PROFIT FOR THE FINANCIAL YEAR

172,914

270,552

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

172,914

270,552

FIXED ASSETS

Intangible assets

10

65,665

18,475

CURRENT ASSETS

Debtors: amounts falling due within one year

11

3,436,690

1,751,061

Debtors: amounts falling due after more than one year

11

3,983,715

2,815,079

Cash at bank

58,866

39,659

7,479,271

4,605,799

CREDITORS

Amounts falling due within one year

12

4,009,981

2,357,434

NET CURRENT ASSETS

3,469,290

2,248,365

TOTAL ASSETS LESS CURRENT LIABILITIES

3,534,955

2,266,840

CREDITORS

Amounts falling due after more than one year

13

(2,832,218

)

(1,701,852

)

PROVISIONS FOR LIABILITIES

16

(257,523

)

(222,688

)

NET ASSETS

445,214

342,300

CAPITAL AND RESERVES

Called up share capital

17

100,000

100,000

Retained earnings

18

345,214

242,300

SHAREHOLDERS' FUNDS

445,214

342,300

The financial statements were approved by the Board of Directors and authorised for issue on 5 October 2023 and were signed on its behalf by:

A D Morgan - Director

P P Morgan - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2021

100,000

121,748

221,748

Changes in equity

Dividends

-

(150,000

)

(150,000

)

Total comprehensive income

-

270,552

270,552

Balance at 31 March 2022

100,000

242,300

342,300

Changes in equity

Dividends

-

(70,000

)

(70,000

)

Total comprehensive income

-

172,914

172,914

Balance at 31 March 2023

100,000

345,214

445,214

1.	STATUTORY INFORMATION

Hardsoft Leasing Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Significant judgements and estimates

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 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.

There are no estimates and assumptions which have had a significant risk of causing a material adjustment to the carrying amount of assets and liabilities

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Income arising from leasing when the Company is a lessor

Assets under finance leases are initially recognised in the balance sheet as finance lease receivables at the net investment value, i.e. the present value of the residual receivables from all lease agreements existing at the end of a financial year. The lease payments are divided into interest payments and principal repayments in such a way as to achieve a constant periodic rate of interest on the receivable. Initial direct costs incurred in connection with concluding the contract are included in the calculation of the net investment in the asset.

Income from protecting finance lease equipment

Income from protecting finance lease equipment is reported under turnover.For the provision of this service, the lessee is charged a fee on a monthly basis for the month in which it relates, in arrears.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Computer software is being amortised evenly over its estimated useful life of three years.

Recognition and impairment of intangible fixed assets

Intangible fixed assets are initially measured at cost and subsequently measured at cost net of accumulated amortisation charges and impairment losses (if any).

The entity reviews the carrying value's of its intangible fixed assets at each reporting date, to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the estimated recoverable value of the asset is used to determine the extent of the impairment loss (if any).

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 statement of financial position 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 trade and other receivables 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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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 trade and other payables, 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 receipts 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. Amounts 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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss In finance costs or finance income as appropriate unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value though profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

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 statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

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.

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.

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.

Finance leases

The Company as a lessor

Leases as defined as agreements in which the lessor transfers the right to the lessee to use an identifiable asset for an agreed time period in exchange for payment consideration for an agreed time period.

Whether an agreement can be considered as a lease or containing a lease, depends on the economic substance of the agreement at the beginning of the agreement. For the lessor, leases are to be classified as either operating leases or finance leases.

FINANCE LEASES

Under a finance lease, all of the significant risks and rewards of legal ownership are transferred from the lessor to the lessee.

Finance leases are initially recognised in the statement of financial position as at the date they are available for use, as lease receivables at amount equal to the net investment, which represents the sum of the outstanding lease payments and non-guaranteed residual value's of the underlying assets, discounted at the rate of interest implicit in the lease. Lease payments are divided into interest payments and principal payments in such a manner that they reflect a periodic rate of return for the receivable. Initial direct costs incurred in connection with the conclusion of the contract are taken into consideration when calculating the net investment value.

4.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business for the year ended 31 March 2023 is given below:

£

Finance income receivable

676,007

Asset protection services

333,644

Other asset related fees

64,006

1,073,657

This analysis is not considered to be applicable to the year ended 31 March 2022.

All turnover originated and was earned in the UK.

5.	EMPLOYEES AND DIRECTORS

There were no staff costs for the year ended 31 March 2023 nor for the year ended 31 March 2022.

The average number of employees during the year was NIL (2022 - NIL).

2023

2022

£

£

Directors' remuneration

-

-

6.	OPERATING PROFIT

The operating profit is stated after charging:

2023

2022

£

£

Other operating leases

12,590

12,745

Computer software amortisation

18,377

6,158

Auditors' remuneration

10,000

-

7.

INTEREST PAYABLE AND SIMILAR EXPENSES

2023

2022

£

£

Loan interest

295,158

102,643

Director loan interest

8,207

-

303,365

102,643

Included within loan interest is £9,107 payable to the parent entity.

8.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2023

2022

£

£

Current tax:

UK corporation tax

146,714

-

Deferred tax

34,835

-

Tax on profit

181,549

-

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2023

2022

£

£

Profit before tax

354,463

270,552

Profit multiplied by the standard rate of corporation tax in the UK of 19% (2022 - 19%)

67,348

51,405

Effects of:

Expenses not deductible for tax purposes

9,500

-

Adjustments to tax charge in respect of previous periods

19,988

-

Effect of rate change in calculation of deferred taxation

84,713

-

Losses surrendered to parent

-

(51,405

)

Total tax charge

181,549

-

9.

DIVIDENDS

2023

2022

£

£

Ordinary shares of £1 each

Interim

70,000

150,000

10.	INTANGIBLE FIXED ASSETS

Computer

software

£

COST

At 1 April 2022

24,633

Additions

65,567

At 31 March 2023

90,200

AMORTISATION

At 1 April 2022

6,158

Amortisation for year

18,377

At 31 March 2023

24,535

NET BOOK VALUE

At 31 March 2023

65,665

At 31 March 2022

18,475

11.

DEBTORS

2023

2022

£

£

Amounts falling due within one year:

Trade debtors

105,526

82,546

Amounts owed by group undertakings

-

1,342

Amounts receivable in respect of finance leases

3,230,016

1,525,492

VAT

101,148

141,681

3,436,690

1,751,061

Amounts falling due after more than one year:

Amounts receivable in respect of finance leases

3,983,715

2,815,079

Aggregate amounts

7,420,405

4,566,140

12.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023

2022

£

£

Bank loans and overdrafts (see note 14)

2,780,652

1,319,250

Trade creditors

869,155

867,280

Amounts owed to group undertakings

125,844

86,829

Tax

146,714

-

Other creditors

-

3,527

Directors' current accounts

-

30,000

Directors' loan accounts

77,616

-

Accruals and deferred income

-

45,048

Accrued expenses

10,000

5,500

4,009,981

2,357,434

13.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2023

2022

£

£

Bank loans (see note 14)

2,796,127

1,701,852

Amounts owed to group undertakings

36,091

-

2,832,218

1,701,852

14.

LOANS

An analysis of the maturity of loans is given below:

2023

2022

£

£

Amounts falling due within one year or on demand:

Bank loans

2,780,652

1,319,250

Amounts falling due between one and two years:

Bank loans - 1-2 years

2,188,999

1,111,594

Amounts falling due between two and five years:

Bank loans - 2-5 years

607,128

590,258

15.	SECURED DEBTS

The following secured debts are included within creditors:

2023

2022

£

£

Bank loans

5,576,779

-

Bank loans are block discounting arrangements, that are secured by way of fixed and floating charge on specific finance lease receivables with a net present value of £7,213,731 (2022: 4,340,571).

The block discounting arrangements are repayable by regular instalments over the period of the particular loan.

16.	PROVISIONS FOR LIABILITIES

2023

2022

£

£

Deferred tax

257,523

222,688

Deferred

tax

£

Balance at 1 April 2022

222,688

Charge to Statement of Comprehensive Income during year

34,835

Balance at 31 March 2023

257,523

17.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2023

2022

value:

£

£

100,000

Ordinary

£1

100,000

100,000

18.

RESERVES

Retained

earnings

£

At 1 April 2022

242,300

Profit for the year

172,914

Dividends

(70,000

)

At 31 March 2023

345,214

19.	ULTIMATE PARENT COMPANY

Hardsoft Limited is regarded by the directors as being the company's ultimate parent company.

The ultimate parent undertaking and the controlling undertaking of the largest group for which financial statements are drawn up is Hardsoft Limited, a company incorporated in the UK.

Hardsoft Leasing Limited is a wholly owned subsidiary of Hardsoft Limited which heads up the largest and smallest group in which Hardsoft Leasing Limited is a member for which financial statements are prepared. The consolidated financial statements of Hardsoft Limited are available to the public and may be obtained from the UK registrar.

20.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

Both Phillip Morgan (Director and shareholder) and Andrew Morgan (Director and shareholder) have guaranteed £125,000 in respect of block discounting arrangements.

21.	RELATED PARTY DISCLOSURES

A guarantor and cross guarantee exists with the parent entity, Hardsoft Limited, in respect of block discounting arrangements.