Abbreviated Company Accounts - ECLIPSE HOTELS MANAGEMENT LIMITED

1Accounting Policies

Basis of measurement and preparation of accounts
Basis of accounting

The financial statements have been prepared under the historical cost convention, and in accordance with the Financial Reporting Standard for Smaller Entities (effective January 2015).

Turnover policy
The turnover shown in the profit and loss account represents amounts invoiced during the year, exclusive of Value Added Tax.

Intangible assets amortisation policy
All fixed assets are initially recorded at cost.

Depreciation

Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows:

Furniture & Fixtures : 25% on reducing balance
Motor Vehicles : 25% on reducing balance
Equipment : 25% on reducing balance

Valuation information and policy
Hire purchase agreements

Assets held under hire purchase agreements are capitalised and disclosed under tangible fixed assets at their fair value. The capital element of the future payments is treated as a liability and the interest is charged to the profit and loss account on a straight line basis.

Finance lease agreements

Where the company enters into a lease which entails taking substantially all the risks and rewards of ownership of an asset, the lease is treated as a finance lease. The asset is recorded in the balance sheet as a tangible fixed asset and is depreciated in accordance with the above depreciation policies. Future instalments under such leases, net of finance charges, are included within creditors. Rentals payable are apportioned between the finance element, which is charged to the profit and loss account on a straight line basis, and the capital element which reduces the outstanding obligation for future instalments.

Operating lease agreements

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight line basis over the period of the lease.
Financial instruments


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 entity after deducting all of its financial liabilities.

Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability.

Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity.

Other accounting policies
RELATED PARTY TRANSACTIONS

Control:-
The company was under the control of Mr Z. H. Damji, a director and members of his close family throughout the current and previous year. Mr Z H Damji is personally interested in 50% (2015 - 50%) of the company's share capital. In addition, his family members control in aggregate a further 50% (2015 - 50%) of the company's issued share capital.

Transactions:-

1. Turnover included management fees and income receivable from the following companies where Mr Z H Damji and Mr S Damji are directors and Mr Z H Damji a shareholder:
2016 2015
£ £
Eclipse Hotels Limited 86,473 75,827
Eclipse Hotels Cardiff Limited 30,000 30,000
Eclipse Hotels (Norwich) Limited 60,000 60,000
KHL (Poole) Limited 114,521 71,916
Eclipse Hotels (Luton) Limited 70,000 36,000
Eclipse Hotels (Heathrow Airport) Ltd 108,000 36,000
Eclipse Hotels Zurich AG 141,040 153,858
Eclipse Hotels (Bristol) Ltd 182,276 120,000

2. As at the Balance sheet date debtors include amounts due from the following companies where Mr Z H Damji and Mr S Damji are directors and Mr Z H Damji a shareholder:
2016 2015
£ £
Eclipse Hotels (Heathrow Airport) Ltd - 383,818
Eclipse Hotels (Luton) Limited 658,729 444,138
Eclipse Hotels Cardiff Limited 1,122,159 1,210,527
Fifth Avenue Property Co Ltd 32,045 32,045
Eclipse Hotels (Wandsworth) Ltd - 785
SCAA Properties Ltd - 2,244
Eclipse Hotels AG Ltd 5,525 -
Chelsea Homes Limited 2,831 -
Chelsea Management UK Ltd 9,880 -


3. As at the Balance sheet date debtors include amounts due from the following company where Mr Z H Damji and Mr S Damji are directors:
2016 2015
£ £
Eclipse Hotels (Nassau) Ltd 16,639 1,111

4. As at the balance sheet date debtors include amounts due from the following company where Mr Z H Damji is a director:
2016 2015
£ £
Dar Jangwani Resort - 7,662
5. As at the Balance sheet date Creditors falling due within one year include amounts due to the following companies where Mr Z H Damji and Mr S Damji are directors and Mr Z H Damji a shareholder:
2016 2015
£ £
Chateau Properties Limited - 13,265
Eclipse Hotels Limited 697,014 756,472
Eclipse Hotels AG Ltd - 171,783
Eclipse Hotels (Norwich) Limited 190,417 117,924
KHL (Poole) Limited 180,390 177,185
Copperstone Properties Ltd - 176,398
Chelsea Management (UK) Ltd - 1,720
Eclipse Hotels (Bristol) Ltd 220,288 153,416
Eclipse Hotels (Heathrow Airport) Ltd 9,311 -
Eclipse Hotels (Wandsworth) Ltd 6,861 -

6. As at the balance sheet date creditors falling due with one year include amounts due to the following companies where Mr Z H Damji:
2016 2015
£ £
Dar Jangwani resort 101,049 -
Eclipse Hotels Daressalam Limited 422,930 452,511

7. As at the Balance Sheet date creditors falling due with one year include Shareholders loan of £204,019. It is an interest free loan.