The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

For the financial year ended 31 December 2017 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.

The 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.

DJM 88 Limited is a private company limited by shares incorporated in England and Wales. The registered office is Second Floor De Burgh House, Market Road, Essex, Wickford, SS12 0FD.

These financial statements have been prepared in accordance with 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 disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in US dollars, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest $.

The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.

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.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

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.

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 balance sheet when the company becomes party to the contractual provisions of the instrument.

Basic financial assets, which include debtors 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.

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, including creditors, 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 payments 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.

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.

The tax expense represents the sum of the tax currently payable.

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.

Transactions in currencies other than US dollars 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.

The average monthly number of persons (including directors) employed by the company during the year was 0 (2016 - 0).

Details of the company's subsidiaries at 31 December 2017 are as follows:

The financial statement for the following subsidiary was not available for the period ended 31 December 2017:

-754 NE 71ST Holdings, Inc.

-Feng Shui Style Holdings, Inc.

-Villa Italia Management Holdings Inc. - confirmed dormant

Details of the company's associates at 31 December 2017 are as follows:

Included within other investments are various bonds the company acquired during the year along with the interest received and receivable on the bonds during the period.

Included within amounts owed by group undertakings, is an amount of $5,760,183 (2016: $4,900,000) due from Gugi Corp, a subsidiary of the company. This loan is provided interest free and is repayable on demand.

Included within amounts owed by group undertakings, is an amount of $1,183,292 (2016: $2,345,292) due from Feng Shui Style Holdings, Inc, a subsidiary of the company. This loan is provided interest free and is repayable on demand.

Included within amounts owed by group undertakings, is an amount of $608,017 (2016: $1,879,080) due from 754 NE 71ST Holdings, Inc, a subsidiary of the company. This loan is provided interest free and is repayable on demand.

Included within amounts owed by group undertakings, is an amount of $39,339 (2016: $nil) due from Arca Fashion S.A., a subsidiary of the company. This loan is provided interest free and is repayable on demand.

Included within amounts owed by group undertakings, is an amount of $17,094 (2016: $nil) due from Ladolez D.O.O., a subsidiary of the company. This loan is provided interest free and is repayable on demand.

Included within amounts due to group undertakings, is an amount of $1,502,000 (2016: $nil) due to Gugi Corp, a subsidiary of the company. The loan is interest free and repayable on demand.

Included within creditors is a balance of $25,251,524 (2016: $24,729,865) owed to a shareholder of the company. This amount is interest free and is repayable on demand.

The loan to subsidiary has been restated from fixed asset investment to be shown as a current asset in debtors.

The director is of the opinion that this accurately reflects the true nature of the loan between the companies and its subsidiary.

This has no effect on the capital and reserves of the company.